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OLR Bill Analysis
sSB 998 (File 293, as amended by Senate "A")*
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 the closures of higher education institutions:
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 revoke a private
occupational school’s certificate of authorization or deny its
renewal 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.
*Senate Amendment “A” (1) removes a prohibition against
representatives from unauthorized private occupational schools 2021SB-00998-R01-BA.DOCX
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soliciting and visiting students, among other things; (2) removes a
requirement that representatives from these schools located outside of
Connecticut apply for a permit from OHE and correspondingly repeals
the annual $500 permit fee; and (3) clarifies a notice provision relating
to private occupational school closures.
EFFECTIVE DATE: July 1, 2021
§§ 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 these 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.
§ 5 — UNAUTHORIZED PRIVATE OCCUPATIONAL SCHOOLS
Additionally, the bill removes current law’s prohibition against a 2021SB-00998-R01-BA.DOCX
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representative of a private occupational school that has not received
state authorization from doing the following without first obtaining a
permit from the OHE executive director:
1. visiting prospective students’ residences,
2. soliciting enrollments,
3. selling occupational instruction,
4. making representations, or
5. giving counsel to prospective students.
It also removes the requirement that representatives from these
unauthorized schools located outside of Connecticut file a permit
application with OHE and pay a nonrefundable $500 fee into the
private occupational student protection account (see BACKGROUND).
§ 8 — PRIVATE COLLEGE AND UNIVERSITY CLOSURE PLANS
Closure Plan Submission
The bill requires each private higher education institution to submit
a closure plan to OHE. The plan must at least 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
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.
Closure 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 at least the following information: 2021SB-00998-R01-BA.DOCX
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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 about managing student refunds, state or federal
grants and scholarships, and state loans; and
7. evidence of communication with the regional accreditation
agency about the closure, if applicable.
BACKGROUND
Private Occupational Student Protection Account
This account is used to refund tuition to students who cannot
complete a course at a private occupational school because the school
became insolvent or stopped operating. It is funded by (1) quarterly
assessments on private occupational schools’ tuition revenue and (2)
other fees related to the schools’ operations.
Distance learning and correspondence schools must contribute to
the account only for their enrolled Connecticut residents, and only the
Connecticut residents enrolled in these schools are eligible for refunds
from the account (CGS § 10a-22u).
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable Substitute
Yea 22 Nay 0 (03/18/2021)