Connecticut 2021 Regular Session

Connecticut Senate Bill SB00998 Compare Versions

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Version 2 (New)

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4		-	Substitute Senate Bill No. 998
	7	+	General Assembly Substitute Bill No. 998
	8	+	January Session, 2021
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6		-	~~Public Act No. 21-45~~
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9	13		AN ACT CONCERNING TH E RECOMMENDATIONS OF THE OFFICE
10	14		OF HIGHER EDUCATION REGARDING PRIVATE OC CUPATIONAL
11	15		SCHOOLS AND CLOSURE PLANS OF INSTITUTIONS OF HIGHER
12	16		EDUCATION.
13	17		Be it enacted by the Senate and House of Representatives in General
14	18		Assembly convened:
15	19
16		-	Section 1. Subsection (c) of section 10a-22b of the general statutes is
17		-	repealed and the following is substituted in lieu thereof (Effective July 1,
18		-	2021):
19		-	(c) Each person, board, association, partnership, corporation, limited
20		-	liability company or other entity which seeks to offer occupational
21		-	instruction shall submit to the executive director, or the executive
22		-	director's designee, in such manner as the executive director, or the
23		-	executive director's designee, prescribes, an application for a certificate
24		-	of authorization which includes, but need not be limited to, (1) the
25		-	proposed name of the school; (2) ownership and organization of the
26		-	school including the names and addresses of all principals, officers,
27		-	members and directors; (3) names and addresses of all stockholders of
28		-	the school, except for applicants which are listed on a national securities
29		-	exchange; (4) addresses of any building or premises on which the school
30		-	will be located; (5) description of the occupational instruction to be
31		-	offered; (6) the proposed student enrollment agreement, which includes Substitute Senate Bill No. 998
	20	+	Section 1. Subsection (c) of section 10a-22b of the general statutes is 1
	21	+	repealed and the following is substituted in lieu thereof (Effective July 1, 2
	22	+	2021): 3
	23	+	(c) Each person, board, association, partnership, corporation, limited 4
	24	+	liability company or other entity which seeks to offer occupational 5
	25	+	instruction shall submit to the executive director, or the executive 6
	26	+	director's designee, in such manner as the executive director, or the 7
	27	+	executive director's designee, prescribes, an application for a certificate 8
	28	+	of authorization which includes, but need not be limited to, (1) the 9
	29	+	proposed name of the school; (2) ownership and organization of the 10
	30	+	school including the names and addresses of all principals, officers, 11
	31	+	members and directors; (3) names and addresses of all stockholders of 12
	32	+	the school, except for applicants which are listed on a national securities 13
	33	+	exchange; (4) addresses of any building or premises on which the school 14
	34	+	will be located; (5) description of the occupational instruction to be 15
	35	+	offered; (6) the proposed student enrollment agreement, which includes 16
	36	+	for each program of occupational instruction offered a description, in 17 Substitute Bill No. 998
32	37
33		-	Public Act No. 21-45 2 of 9
34	38
35		-	for each program of occupational instruction offered a description, in
36		-	plain language, of any requirements for employment in such occupation
37		-	or barriers to such employment pursuant to state law or regulations; (7)
38		-	the proposed school catalog, which includes for each program of
39		-	occupational instruction offered a description of any requirements for
40		-	employment in such occupation or barriers to such employment
41		-	pursuant to state law or regulations; (8) financial statements detailing
42		-	the financial condition of the school pursuant to subsection (d) of this
43		-	section and subsection (g) of section 10a-22d, as amended by this act,
44		-	prepared by management and reviewed or audited, or, for a
45		-	nonaccredited school annually [enrolling fewer than ten students]
46		-	receiving less than fifty thousand dollars in tuition revenue, compiled,
47		-	by an independent licensed certified public accountant or independent
48		-	licensed public accountant; and (9) an agent for service of process. Each
49		-	application for initial authorization shall be accompanied by a
50		-	nonrefundable application fee made payable to the private occupational
51		-	school student protection account in the amount of two thousand
52		-	dollars for the private occupational school and two hundred dollars for
53		-	each branch of a private occupational school in this state. Any
54		-	application for initial authorization that remains incomplete six months
55		-	after the date such application was first submitted to the Office of
56		-	Higher Education shall expire and the office shall not approve such
57		-	expired application for authorization.
58		-	Sec. 2. Subsection (g) of section 10a-22d of the general statutes is
59		-	repealed and the following is substituted in lieu thereof (Effective July 1,
60		-	2021):
61		-	(g) Each private occupational school shall keep financial records in
62		-	conformity with generally accepted accounting principles. An annual
63		-	financial statement detailing the financial status of the school shall be
64		-	prepared by school management and reviewed or audited, or, for a
65		-	nonaccredited school annually [enrolling fewer than ten students] Substitute Senate Bill No. 998
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	43	+	plain language, of any requirements for employment in such occupation 18
	44	+	or barriers to such employment pursuant to state law or regulations; (7) 19
	45	+	the proposed school catalog, which includes for each program of 20
	46	+	occupational instruction offered a description of any requirements for 21
	47	+	employment in such occupation or barriers to such employment 22
	48	+	pursuant to state law or regulations; (8) financial statements detailing 23
	49	+	the financial condition of the school pursuant to subsection (d) of this 24
	50	+	section and subsection (g) of section 10a-22d, as amended by this act, 25
	51	+	prepared by management and reviewed or audited, or, for a 26
	52	+	nonaccredited school annually [enrolling fewer than ten students] 27
	53	+	receiving less than fifty thousand dollars in tuition revenue, compiled, 28
	54	+	by an independent licensed certified public accountant or independent 29
	55	+	licensed public accountant; and (9) an agent for service of process. Each 30
	56	+	application for initial authorization shall be accompanied by a 31
	57	+	nonrefundable application fee made payable to the private occupational 32
	58	+	school student protection account in the amount of two thousand 33
	59	+	dollars for the private occupational school and two hundred dollars for 34
	60	+	each branch of a private occupational school in this state. Any 35
	61	+	application for initial authorization that remains incomplete six months 36
	62	+	after the date such application was first submitted to the Office of 37
	63	+	Higher Education shall expire and the office shall not approve such 38
	64	+	expired application for authorization. 39
	65	+	Sec. 2. Subsection (g) of section 10a-22d of the general statutes is 40
	66	+	repealed and the following is substituted in lieu thereof (Effective July 1, 41
	67	+	2021): 42
	68	+	(g) Each private occupational school shall keep financial records in 43
	69	+	conformity with generally accepted accounting principles. An annual 44
	70	+	financial statement detailing the financial status of the school shall be 45
	71	+	prepared by school management and reviewed or audited, or, for a 46
	72	+	nonaccredited school annually [enrolling fewer than ten students] 47
	73	+	receiving less than fifty thousand dollars in tuition revenue, compiled, 48
	74	+	by a licensed certified public accountant or licensed public accountant 49
	75	+	in accordance with standards established by the American Institute of 50 Substitute Bill No. 998
68	76
69		-	receiving less than fifty thousand dollars in tuition revenue, compiled,
70		-	by a licensed certified public accountant or licensed public accountant
71		-	in accordance with standards established by the American Institute of
72		-	Certified Public Accountants. A copy of such financial statement shall
73		-	be filed with the executive director on or before the last day of the fourth
74		-	month following the end of the school's fiscal year, except in the case of
75		-	a nationally accredited school recognized by the United States
76		-	Department of Education, in which case such financial statement shall
77		-	be due on or before the last day of the sixth month following the end of
78		-	the school's fiscal year. Only audited financial statements shall be
79		-	accepted from a nationally accredited school. Upon a nonaccredited
80		-	school's written request, the executive director may authorize, for good
81		-	cause shown, a filing extension for a period not to exceed sixty days. No
82		-	filing extensions shall be granted to a nationally accredited school.
83		-	Sec. 3. Section 10a-22d of the general statutes is amended by adding
84		-	subsection (h) as follows (Effective July 1, 2021):
85		-	(NEW) (h) The failure of any private occupational school to submit
86		-	an application to the Office of Higher Education for the renewal of a
87		-	certificate of authorization on or before the date on which it is due may
88		-	result in the loss of authorization under section 10a-22f, as amended by
89		-	this act. The executive director of said office may deny the renewal of
90		-	such certificate of authorization if there exists a failure to file such
91		-	renewal application by the date on which it is due, or the end of any
92		-	period of extension authorized pursuant to subsection (e) of this section.
93		-	Sec. 4. Subsection (a) of section 10a-22f of the general statutes is
94		-	repealed and the following is substituted in lieu thereof (Effective July 1,
95		-	2021):
96		-	(a) A certificate of authorization issued to a private occupational
97		-	school pursuant to sections 10a-22a to 10a-22o, inclusive, as amended
98		-	by this act, and sections 10a-22u to 10a-22w, inclusive, as amended by Substitute Senate Bill No. 998
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102		-	this act, may be revoked by the executive director if such school (1)
103		-	ceases to meet the conditions of its authorization; (2) commits a material
104		-	or substantial violation of sections 10a-22a to 10a-22o, inclusive, as
105		-	amended by this act, or sections 10a-22u to 10a-22w, inclusive, as
106		-	amended by this act, or the regulations prescribed thereunder; (3) makes
107		-	a false statement about a material fact in application for authorization
108		-	or renewal; [or] (4) fails to make a required payment to the private
109		-	occupational school student protection account pursuant to section 10a-
110		-	22u, as amended by this act; or (5) fails to submit a complete application
111		-	for a renewed certificate of authorization pursuant to section 10a-22d,
112		-	as amended by this act.
113		-	Sec. 5. Section 10a-22h of the general statutes is repealed and the
114		-	following is substituted in lieu thereof (Effective July 1, 2021):
115		-	[(a) No representative of a private occupational school not authorized
116		-	pursuant to sections 10a-22a to 10a-22o, inclusive, and sections 10a-22u
117		-	to 10a-22w, inclusive, shall visit the residence of any prospective
118		-	student, solicit enrollments, sell occupational instruction in any form or
119		-	manner, make representations or give counsel to prospective students
120		-	without first obtaining a permit from the executive director. Such permit
121		-	shall not be represented to constitute approval of the school itself. Any
122		-	contract entered into in violation of this section shall not be enforceable
123		-	by such school.
124		-	(b) Any person seeking to represent an out-of-state private
125		-	occupational school not authorized pursuant to sections 10a-22a to 10a-
126		-	22o, inclusive, and sections 10a-22u to 10a-22w, inclusive, shall file an
127		-	application with the Office of Higher Education on forms prescribed by
128		-	the executive director. Upon issuance of a permit, such representative
129		-	shall pay a nonrefundable fee of five hundred dollars into the private
130		-	occupational student protection account. The permit shall be valid for a
131		-	period of one year from date of issuance.] Substitute Senate Bill No. 998
	82	+	Certified Public Accountants. A copy of such financial statement shall 51
	83	+	be filed with the executive director on or before the last day of the fourth 52
	84	+	month following the end of the school's fiscal year, except in the case of 53
	85	+	a nationally accredited school recognized by the United States 54
	86	+	Department of Education, in which case such financial statement shall 55
	87	+	be due on or before the last day of the sixth month following the end of 56
	88	+	the school's fiscal year. Only audited financial statements shall be 57
	89	+	accepted from a nationally accredited school. Upon a nonaccredited 58
	90	+	school's written request, the executive director may authorize, for good 59
	91	+	cause shown, a filing extension for a period not to exceed sixty days. No 60
	92	+	filing extensions shall be granted to a nationally accredited school. 61
	93	+	Sec. 3. Section 10a-22d of the general statutes is amended by adding 62
	94	+	subsection (h) as follows (Effective July 1, 2021): 63
	95	+	(NEW) (h) The failure of any private occupational school to submit 64
	96	+	an application to the Office of Higher Education for the renewal of a 65
	97	+	certificate of authorization on the date on which it is due may result in 66
	98	+	the loss of authorization under section 10a-22f, as amended by this act. 67
	99	+	The executive director of said office may deny the renewal of such 68
	100	+	certificate of authorization if there exists a failure to file such renewal 69
	101	+	application by the date on which it is due, or the end of any period of 70
	102	+	extension authorized pursuant to subsection (e) of this section. 71
	103	+	Sec. 4. Subsection (a) of section 10a-22f of the general statutes is 72
	104	+	repealed and the following is substituted in lieu thereof (Effective July 1, 73
	105	+	2021): 74
	106	+	(a) A certificate of authorization issued to a private occupational 75
	107	+	school pursuant to sections 10a-22a to 10a-22o, inclusive, as amended 76
	108	+	by this act, and sections 10a-22u to 10a-22w, inclusive, as amended by 77
	109	+	this act, may be revoked by the executive director if such school (1) 78
	110	+	ceases to meet the conditions of its authorization; (2) commits a material 79
	111	+	or substantial violation of sections 10a-22a to 10a-22o, inclusive, as 80
	112	+	amended by this act, or sections 10a-22u to 10a-22w, inclusive, as 81
	113	+	amended by this act, or the regulations prescribed thereunder; (3) makes 82 Substitute Bill No. 998
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135		-	Any out-of-state private occupational school that seeks to operate a
136		-	distance learning program in the state shall submit an application to the
137		-	Office of Higher Education in the form and manner prescribed by the
138		-	office. Each such private occupational school shall agree to abide by
139		-	standards established by the office. The office shall approve or reject
140		-	such private occupational school's application in accordance with the
141		-	standards established by the office. Authorization by the office to
142		-	operate a distance learning program in the state shall be valid for a
143		-	period of one year and may be renewed by the office for additional one-
144		-	year periods. The office shall establish a schedule of application and
145		-	renewal fees for all out-of-state private occupational schools that are
146		-	approved by the office. As used in this subsection, "distance learning
147		-	program" means a program of study in which lectures are broadcast or
148		-	classes are conducted by correspondence or over the Internet, without
149		-	requiring a student to attend in person.
150		-	Sec. 6. Subsection (a) of section 10a-22u of the general statutes is
151		-	repealed and the following is substituted in lieu thereof (Effective July 1,
152		-	2021):
153		-	(a) There shall be an account to be known as the private occupational
154		-	school student protection account within the General Fund. Each
155		-	private occupational school authorized in accordance with the
156		-	provisions of sections 10a-22a to 10a-22o, inclusive, as amended by this
157		-	act, shall pay to the State Treasurer an amount equal to four-tenths of
158		-	one per cent of the tuition received by such school per calendar quarter
159		-	exclusive of any refunds paid, except that distance learning and
160		-	correspondence schools authorized in accordance with the provisions of
161		-	[sections 10a-22a to 10a-22o, inclusive,] section 10a-22h, as amended by
162		-	this act, shall contribute to said account only for Connecticut residents
163		-	enrolled in such schools. Payments shall be made by January thirtieth,
164		-	April thirtieth, July thirtieth and October thirtieth in each year for
165		-	tuition received during the three months next preceding the month of Substitute Senate Bill No. 998
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	120	+	a false statement about a material fact in application for authorization 83
	121	+	or renewal; [or] (4) fails to make a required payment to the private 84
	122	+	occupational school student protection account pursuant to section 10a-85
	123	+	22u, as amended by this act; or (5) fails to submit a complete application 86
	124	+	for a renewed certificate of authorization pursuant to section 10a-22d, 87
	125	+	as amended by this act. 88
	126	+	Sec. 5. Section 10a-22h of the general statutes is repealed and the 89
	127	+	following is substituted in lieu thereof (Effective July 1, 2021): 90
	128	+	(a) No representative of a private occupational school not authorized 91
	129	+	pursuant to sections 10a-22a to 10a-22o, inclusive, as amended by this 92
	130	+	act, and sections 10a-22u to 10a-22w, inclusive, as amended by this act, 93
	131	+	shall visit the residence of any prospective student, solicit enrollments, 94
	132	+	sell occupational instruction in any form or manner, make 95
	133	+	representations or give counsel to prospective students without first 96
	134	+	obtaining a permit from the executive director. Such permit shall not be 97
	135	+	represented to constitute approval of the school itself. Any contract 98
	136	+	entered into in violation of this section shall not be enforceable by such 99
	137	+	school. 100
	138	+	(b) Any person seeking to represent an out-of-state private 101
	139	+	occupational school not authorized pursuant to sections 10a-22a to 10a-102
	140	+	22o, inclusive, as amended by this act, and sections 10a-22u to 10a-22w, 103
	141	+	inclusive, as amended by this act, shall file an application with the Office 104
	142	+	of Higher Education on forms prescribed by the executive director. 105
	143	+	Upon issuance of a permit, such representative shall pay a 106
	144	+	nonrefundable fee of five hundred dollars into the private occupational 107
	145	+	student protection account. The permit shall be valid for a period of one 108
	146	+	year from date of issuance. 109
	147	+	(c) Any out-of-state private occupational school that seeks to operate 110
	148	+	a distance learning program in the state shall submit an application to 111
	149	+	the Office of Higher Education in the form and manner prescribed by 112
	150	+	the office. Each such private occupational school shall agree to abide by 113
	151	+	standards established by the office. The office shall approve or reject 114 Substitute Bill No. 998
168	152
169		-	payment. In addition to amounts received based on tuition, the account
170		-	shall also contain any amount required to be deposited into the account
171		-	pursuant to sections 10a-22a to 10a-22o, inclusive, as amended by this
172		-	act. Said account shall be used for the purposes of section 10a-22v, as
173		-	amended by this act. Any interest, income and dividends derived from
174		-	the investment of the account shall be credited to the account. All direct
175		-	expenses for the maintenance of the account may be charged to the
176		-	account upon the order of the State Comptroller. The executive director
177		-	may assess the account for all direct expenses incurred in the
178		-	implementation of the purposes of this section which are in excess of the
179		-	normal expenditures of the Office of Higher Education.
180		-	Sec. 7. Section 10a-22v of the general statutes is repealed and the
181		-	following is substituted in lieu thereof (Effective July 1, 2021):
182		-	Any student enrolled in a private occupational school authorized in
183		-	accordance with the provisions of sections 10a-22a to 10a-22o, inclusive,
184		-	as amended by this act, who is unable to complete an approved course
185		-	or unit of instruction at such school because of the insolvency or
186		-	cessation of operation of the school and who has paid tuition for such
187		-	course or unit of instruction, may, not later than two years after the date
188		-	on which such school became insolvent or ceased operations, make
189		-	application to the executive director for a refund of tuition from the
190		-	account established pursuant to section 10a-22u, as amended by this act,
191		-	to the extent that such account exists or has reached the level necessary
192		-	to pay outstanding approved claims, except that in the case of distance
193		-	learning and correspondence schools authorized in accordance with the
194		-	provisions of [sections 10a-22a to 10a-22o, inclusive,] section 10a-22h, as
195		-	amended by this act, only Connecticut residents enrolled in such schools
196		-	may be eligible for such refund. Upon such application, the executive
197		-	director shall determine whether the applicant is unable to complete a
198		-	course or unit of instruction because of the insolvency or cessation of
199		-	operation of the school to which tuition has been paid. The executive Substitute Senate Bill No. 998
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203		-	director may summon by subpoena any person, records or documents
204		-	pertinent to the making of a determination regarding insolvency or
205		-	cessation of operation. For the purpose of making any tuition refund
206		-	pursuant to this section, a school shall be deemed to have ceased
207		-	operation whenever it has failed to complete a course or unit of
208		-	instruction for which the student has paid a tuition fee and, as a result,
209		-	the school's authorization has been revoked pursuant to section 10a-22f,
210		-	as amended by this act. If the executive director finds that the applicant
211		-	is entitled to a refund of tuition because of the insolvency or cessation
212		-	of operation of the school, the executive director shall determine the
213		-	amount of an appropriate refund which shall be equal to the tuition paid
214		-	for the uncompleted course or unit of instruction. Thereafter the
215		-	executive director shall direct the State Treasurer to pay, per order of the
216		-	Comptroller, the refund to the applicant or persons, agencies or
217		-	organizations indicated by the applicant who have paid tuition on the
218		-	student's behalf. If the student is a minor, payment shall be made to the
219		-	student's parent, parents or legal guardian. In no event shall a refund be
220		-	made from the student protection account for any financial aid provided
221		-	to or on behalf of any student in accordance with the provisions of Title
222		-	IV, Part B of the Higher Education Act of 1965, as amended from time
223		-	to time. Each recipient of a tuition refund made in accordance with the
224		-	provisions of this section shall assign all rights to the state of any action
225		-	against the school or its owner or owners for tuition amounts
226		-	reimbursed pursuant to this section. Upon such assignment, the state
227		-	may take appropriate action against the school or its owner or owners
228		-	in order to reimburse the student protection account for any expenses
229		-	or claims that are paid from the account and to reimburse the state for
230		-	the reasonable and necessary expenses in undertaking such action. Any
231		-	student who falsifies information on an application for tuition
232		-	reimbursement shall lose his or her right to any refund from the account.
233		-	Sec. 8. Section 10a-34e of the general statutes is amended by adding
234		-	subsections (c) and (d) as follows (Effective July 1, 2021): Substitute Senate Bill No. 998
	158	+	such private occupational school's application in accordance with the 115
	159	+	standards established by the office. Authorization by the office to 116
	160	+	operate a distance learning program in the state shall be valid for a 117
	161	+	period of one year and may be renewed by the office for additional one-118
	162	+	year periods. The office shall establish a schedule of application and 119
	163	+	renewal fees for all out-of-state private occupational schools that are 120
	164	+	approved by the office. As used in this subsection, "distance learning 121
	165	+	program" means a program of study in which lectures are broadcast or 122
	166	+	classes are conducted by correspondence or over the Internet, without 123
	167	+	requiring a student to attend in person. 124
	168	+	Sec. 6. Subsection (a) of section 10a-22u of the general statutes is 125
	169	+	repealed and the following is substituted in lieu thereof (Effective July 1, 126
	170	+	2021): 127
	171	+	(a) There shall be an account to be known as the private occupational 128
	172	+	school student protection account within the General Fund. Each 129
	173	+	private occupational school authorized in accordance with the 130
	174	+	provisions of sections 10a-22a to 10a-22o, inclusive, as amended by this 131
	175	+	act, shall pay to the State Treasurer an amount equal to four-tenths of 132
	176	+	one per cent of the tuition received by such school per calendar quarter 133
	177	+	exclusive of any refunds paid, except that distance learning and 134
	178	+	correspondence schools authorized in accordance with the provisions of 135
	179	+	[sections 10a-22a to 10a-22o, inclusive,] subsection (c) of section 10a-22h, 136
	180	+	as amended by this act, shall contribute to said account only for 137
	181	+	Connecticut residents enrolled in such schools. Payments shall be made 138
	182	+	by January thirtieth, April thirtieth, July thirtieth and October thirtieth 139
	183	+	in each year for tuition received during the three months next preceding 140
	184	+	the month of payment. In addition to amounts received based on tuition, 141
	185	+	the account shall also contain any amount required to be deposited into 142
	186	+	the account pursuant to sections 10a-22a to 10a-22o, inclusive, as 143
	187	+	amended by this act. Said account shall be used for the purposes of 144
	188	+	section 10a-22v, as amended by this act. Any interest, income and 145
	189	+	dividends derived from the investment of the account shall be credited 146
	190	+	to the account. All direct expenses for the maintenance of the account 147 Substitute Bill No. 998
235	191
236		-	Public Act No. 21-45 8 of 9
237	192
238		-	(NEW) (c) Not later than January 1, 2022, each independent
239		-	institution of higher education shall submit to the Office of Higher
240		-	Education a closure plan, which shall include, but need not be limited
241		-	to, (1) how such institution will respond to a natural disaster, pandemic,
242		-	data security threat or other catastrophic event that impacts the
243		-	operations of such institution, and (2) how such institution will manage
244		-	student records, provide a continuity of education for enrolled students
245		-	and administer student financial aid and refunds. An independent
246		-	institution of higher education that is regionally accredited may comply
247		-	with the requirements of this subsection by submitting to said office the
248		-	same closure plan that the institution submitted to the regional
249		-	accreditation agency. If an independent institution of higher education
250		-	updates its closure plan, then such institution shall submit such updated
251		-	closure plan not later than thirty days after the governing board of such
252		-	institution approves such updated closure plan.
253		-	(NEW) (d) Any independent institution of higher education that
254		-	plans to close permanently shall submit a written notice to the Office of
255		-	Higher Education not later than thirty days after the governing board of
256		-	such institution authorizes such closure. Such written notice shall
257		-	include, but need not be limited to, (1) the planned date of termination
258		-	of operations; (2) the planned date and location for the transfer of
259		-	student records; (3) the name and address of the organization that will
260		-	receive and maintain student records; (4) the name and contact
261		-	information of the designated office or official who will manage
262		-	transcript requests; (5) the arrangement for the continued education of
263		-	enrolled students through the facilitation of a teach-out, as defined in
264		-	section 10a-22m, or other means; (6) evidence of communication with
265		-	the United States Department of Education regarding the management
266		-	of student refunds, state or federal grants and scholarships and state
267		-	loans; and (7) if such institution is regionally accredited, evidence of
268		-	communication with the regional accreditation agency regarding such
269		-	closure. Substitute Senate Bill No. 998
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271		-	Public Act No. 21-45 9 of 9
	197	+	may be charged to the account upon the order of the State Comptroller. 148
	198	+	The executive director may assess the account for all direct expenses 149
	199	+	incurred in the implementation of the purposes of this section which are 150
	200	+	in excess of the normal expenditures of the Office of Higher Education. 151
	201	+	Sec. 7. Section 10a-22v of the general statutes is repealed and the 152
	202	+	following is substituted in lieu thereof (Effective July 1, 2021): 153
	203	+	Any student enrolled in a private occupational school authorized in 154
	204	+	accordance with the provisions of sections 10a-22a to 10a-22o, inclusive, 155
	205	+	as amended by this act, who is unable to complete an approved course 156
	206	+	or unit of instruction at such school because of the insolvency or 157
	207	+	cessation of operation of the school and who has paid tuition for such 158
	208	+	course or unit of instruction, may, not later than two years after the date 159
	209	+	on which such school became insolvent or ceased operations, make 160
	210	+	application to the executive director for a refund of tuition from the 161
	211	+	account established pursuant to section 10a-22u, as amended by this act, 162
	212	+	to the extent that such account exists or has reached the level necessary 163
	213	+	to pay outstanding approved claims, except that in the case of distance 164
	214	+	learning and correspondence schools authorized in accordance with the 165
	215	+	provisions of [sections 10a-22a to 10a-22o, inclusive,] subsection (c) of 166
	216	+	section 10a-22h, as amended by this act, only Connecticut residents 167
	217	+	enrolled in such schools may be eligible for such refund. Upon such 168
	218	+	application, the executive director shall determine whether the 169
	219	+	applicant is unable to complete a course or unit of instruction because 170
	220	+	of the insolvency or cessation of operation of the school to which tuition 171
	221	+	has been paid. The executive director may summon by subpoena any 172
	222	+	person, records or documents pertinent to the ma king of a 173
	223	+	determination regarding insolvency or cessation of operation. For the 174
	224	+	purpose of making any tuition refund pursuant to this section, a school 175
	225	+	shall be deemed to have ceased operation whenever it has failed to 176
	226	+	complete a course or unit of instruction for which the student has paid 177
	227	+	a tuition fee and, as a result, the school's authorization has been revoked 178
	228	+	pursuant to section 10a-22f, as amended by this act. If the executive 179
	229	+	director finds that the applicant is entitled to a refund of tuition because 180 Substitute Bill No. 998
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	236	+	of the insolvency or cessation of operation of the school, the executive 181
	237	+	director shall determine the amount of an appropriate refund which 182
	238	+	shall be equal to the tuition paid for the uncompleted course or unit of 183
	239	+	instruction. Thereafter the executive director shall direct the State 184
	240	+	Treasurer to pay, per order of the Comptroller, the refund to the 185
	241	+	applicant or persons, agencies or organizations indicated by the 186
	242	+	applicant who have paid tuition on the student's behalf. If the student is 187
	243	+	a minor, payment shall be made to the student's parent, parents or legal 188
	244	+	guardian. In no event shall a refund be made from the student 189
	245	+	protection account for any financial aid provided to or on behalf of any 190
	246	+	student in accordance with the provisions of Title IV, Part B of the 191
	247	+	Higher Education Act of 1965, as amended from time to time. Each 192
	248	+	recipient of a tuition refund made in accordance with the provisions of 193
	249	+	this section shall assign all rights to the state of any action against the 194
	250	+	school or its owner or owners for tuition amounts reimbursed pursuant 195
	251	+	to this section. Upon such assignment, the state may take appropriate 196
	252	+	action against the school or its owner or owners in order to reimburse 197
	253	+	the student protection account for any expenses or claims that are paid 198
	254	+	from the account and to reimburse the state for the reasonable and 199
	255	+	necessary expenses in undertaking such action. Any student who 200
	256	+	falsifies information on an application for tuition reimbursement shall 201
	257	+	lose his or her right to any refund from the account. 202
	258	+	Sec. 8. Section 10a-34e of the general statutes is amended by adding 203
	259	+	subsections (c) and (d) as follows (Effective July 1, 2021): 204
	260	+	(NEW) (c) Not later than January 1, 2022, each independent 205
	261	+	institution of higher education shall submit to the Office of Higher 206
	262	+	Education a closure plan, which shall include, but need not be limited 207
	263	+	to, (1) how such institution will respond to a natural disaster, pandemic, 208
	264	+	data security threat or other catastrophic event, and (2) how such 209
	265	+	institution will manage student records, provide a continuity of 210
	266	+	education for enrolled students and administer student financial aid 211
	267	+	and refunds. An independent institution of higher education that is 212
	268	+	regionally accredited may comply with the requirements of this 213 Substitute Bill No. 998
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	274	+
	275	+	subsection by submitting to said office the same closure plan that the 214
	276	+	institution submitted to the regional accreditation agency. If an 215
	277	+	independent institution of higher education updates its closure plan, 216
	278	+	then such institution shall submit such updated closure plan not later 217
	279	+	than thirty days after the governing board of such institution approves 218
	280	+	such updated closure plan. 219
	281	+	(NEW) (d) Any independent institution of higher education that 220
	282	+	plans to close permanently shall submit a written notice to the Office of 221
	283	+	Higher Education not later than thirty days after the governing board of 222
	284	+	such institution authorizes such closure. Such written notice shall 223
	285	+	include, but need not be limited to, (1) the planned date of termination 224
	286	+	of operations; (2) the planned date and location for the transfer of 225
	287	+	student records; (3) the name and address of the organization that will 226
	288	+	receive and maintain student records; (4) the name and contact 227
	289	+	information of the designated office or official who will manage 228
	290	+	transcript requests; (5) the arrangement for the continued education of 229
	291	+	enrolled students through the facilitation of a teach-out, as defined in 230
	292	+	section 10a-22m, or other means; (6) evidence of communication with 231
	293	+	the United States Department of Education and said office regarding the 232
	294	+	management of student refunds, state or federal grants and scholarships 233
	295	+	and state loans; and (7) if such institution is regionally accredited, 234
	296	+	evidence of communication with the regional accreditation agency 235
	297	+	regarding such closure.236
	298	+	This act shall take effect as follows and shall amend the following
	299	+	sections:
	300	+
	301	+	Section 1 July 1, 2021 10a-22b(c)
	302	+	Sec. 2 July 1, 2021 10a-22d(g)
	303	+	Sec. 3 July 1, 2021 10a-22d
	304	+	Sec. 4 July 1, 2021 10a-22f(a)
	305	+	Sec. 5 July 1, 2021 10a-22h
	306	+	Sec. 6 July 1, 2021 10a-22u(a)
	307	+	Sec. 7 July 1, 2021 10a-22v
	308	+	Sec. 8 July 1, 2021 10a-34e
	309	+	Substitute Bill No. 998
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	315	+
	316	+	Statement of Legislative Commissioners:
	317	+	In Section 3, "on the date" was changed to "on or before the date" for
	318	+	clarity and in Section 8, subdiv. (c)(1), "that impacts the operations of
	319	+	such institutions" was inserted for clarity.
	320	+
	321	+	HED Joint Favorable Subst.
273	322