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OLR Bill Analysis
sSB 998
AN ACT CONCERNING THE RECOMMENDATIONS OF THE
OFFICE OF HIGHER EDUCATION REGARDING PRIVATE
OCCUPATIONAL SCHOOLS AND CLOSURE PLANS OF
INSTITUTIONS OF HIGHER EDUCATION.
SUMMARY
This bill makes the following changes in the laws governing private
occupational schools and higher education institution closures:
1. changes the threshold for when nonaccredited private
occupational schools must include certain financial statements
in their application to the Office of Higher Education (OHE) for
a certificate of authorization and their annual financial status
statement (§§ 1 & 2);
2. allows OHE’s executive director to deny a private occupational
school’s certificate of authorization renewal or revoke its issued
one if the school does not file its completed renewal application
by its due date or extended due date (§§ 3 & 4);
3. requires out-of-state private occupational schools seeking to
operate distance learning programs in Connecticut to follow an
application process and standards established by OHE (§§ 5-7);
and
4. requires private colleges and universities to submit a closure
plan to OHE by January 1, 2022, describing the institution’s
specific plans for responding to emergency events and
managing student-related closure issues (§ 8).
The bill also makes technical and conforming changes.
EFFECTIVE DATE: July 1, 2021 2021SB-00998-R000293-BA.DOCX
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§§ 1 & 2 — NONACCREDITED PRIVAT E OCCUPATIONAL
SCHOOL OHE FILINGS
By law, private occupational schools must send to OHE financial
statements detailing their financial condition as part of their (1)
application for a certificate of authorization and (2) annual financial
status statement. The bill requires nonaccredited private occupational
schools to compile their financial statements using a licensed certified
public accountant or licensed public accountant, in accordance with
American Institute of Certified Public Accountants standards, if the
school receives less than $50,000 in annual tuition revenue, rather than
if the school annually enrolls fewer than 10 students, as under current
law.
§§ 5-7 — DISTANCE LEARNING PR OGRAMS OFFERED BY OU T-
OF-STATE PRIVATE OCCUPA TIONAL SCHOOLS
The bill requires out-of-state private occupational schools seeking to
operate a distance learning program in Connecticut to apply to OHE
and follow its standards. The office must approve or reject each
application in accordance with these standards. Under the bill, a
“distance learning program” is a program of study that broadcasts
lectures or conducts classes online or by correspondence and does not
require in-person attendance.
Under the bill, OHE authorization to operate the distance learning
program is valid for one year and may be renewed annually. The office
must establish an application and renewal fee schedule for approved
out-of-state private occupational schools.
§ 8 — PRIVATE COLLEGE AND UNIVERSITY CLOSURE P LANS
Submission
The bill requires each private higher education institution to submit
a closure plan to OHE. The plan must address the institution’s (1)
planned response to a natural disaster, pandemic, data security threat,
or other catastrophic event and (2) management of student records,
education continuity, and administration of financial aid and refunds.
The bill allows regionally accredited private institutions to comply 2021SB-00998-R000293-BA.DOCX
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with these requirements by submitting the same closure plan it
submitted to the accreditation agency. It also requires these institutions
to submit any closure plan updates within 30 days after the
institution’s governing board approves them.
Notice
Under the bill, a private higher education institution planning to
close permanently must submit written notice of the closure to OHE
within 30 days after its governing board authorizes the closure. The
notice must contain the follow information:
1. planned date of operations termination;
2. planned date and location for the student records transfer;
3. organization’s name and address that will receive and maintain
the student records;
4. name and contact information of the designated office or official
who will manage transcript requests;
5. arrangement to facilitate a teach-out to continue enrolled
students’ education;
6. evidence of communication with the U.S. Department of
Education and said office about managing student refunds,
state or federal grants and scholarships, and state loans (it is
unclear to which office this refers); and
7. evidence of communication with the regional accreditation
agency about the closure, if applicable.
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable Substitute
Yea 22 Nay 0 (03/18/2021)