Researcher: JC Page 1 4/4/22
OLR Bill Analysis
SB 105
AN ACT CONCERNING RECOMMENDATIONS BY THE OFFICE OF
HIGHER EDUCATION.
TABLE OF CONTENTS:
SUMMARY
§ 1 — DEPARTMENT HEAD
Makes the OHE executive director a "department head" appointed by the governor and
subject to legislative approval
§ 2 —INFORMATION ON POSTSECONDARY EDUCATION
OPPORTUNITIES
Requires OHE to provide information on postsecondary education opportunities to
prospective students
§§ 3-9 — OVERSIGHT OF HIGHER LEARNING PROGRAMS
Makes various changes to the academic program approval process for independent higher
education institutions administered by OHE
§§ 7, 10-11, 15, 17, 21, 23, 26-39 — PRIVATE CAREER SCHOOLS
Renames "private occupational schools" as "private career schools"
§§ 11-13 — APPLICATION PROCESS
Modifies the application requirements and process; removes time limit on a private
occupational school's irrevocable letter of credit; and requires a private occupational
school to provide evidence to OHE that it has the financial resources to serve its students
in order to renew its authorization certificate
§§ 13, 14, 18-20 & 25 — FEES, FINES, AND OTHER PAYMENTS IN
REGULATIONS
Requires OHE to establish certain fees, fines, penalties, and other payments in regulations
and eliminates amounts set in statute when the regulations become effective
§ 16 — DISTANCE LEARNING PROGRAMS
Requires private occupational schools to request authorization to offer existing or new
programs through a distance learning program
§ 22 — DISCLOSURE REQUIREMENTS
Prohibits any private occupational school from imposing disclosure requirements on
students requiring them, as a condition of enrollment, to enter into agreements limiting
their legal recourse in claims against the school
§ 24 — PRIVATE CAREER SCHOOL STUDENT BENEFIT ACCOUNT 2022SB-00105-R000254-BA.DOCX
Researcher: JC Page 2 4/4/22
Requires the advisory committee tasked with assisting the OHE executive director in
administering the private career school student benefit account to be established only
where there are available funds to award
§ 40 — REPEALER
Eliminates a requirement that hospital based occupational schools pay annual fees and
quarterly assessments into the Private Occupational School Student Protection Account
SUMMARY
This bill makes various changes to the laws governing private
occupational schools and higher education institutions overseen by the
Office of Higher Education (OHE).
The bill also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2022, except for the provision making
the OHE executive director a "department head," which is effective July
1, 2022.
§ 1 — DEPARTMENT HEAD
Makes the OHE executive director a "department head" appointed by the governor and
subject to legislative approval
The bill adds the OHE executive director to the statutory list of
"department heads" appointed by the governor and subject to legislative
approval. Existing law already requires the governor to appoint the
OHE executive director with confirmation by the legislature.
§ 2 —INFORMATION ON POSTSECONDARY EDUCATION
OPPORTUNITIES
Requires OHE to provide information on postsecondary education opportunities to
prospective students
The bill requires OHE to provide information to prospective students
regarding postsecondary education opportunities in the state. By law,
OHE regulates the state’s independent colleges and universities,
licenses in-state academic programs offered by out-of-state institutions,
and regulates postsecondary career schools, among other things.
§§ 3-9 — OVERSIGHT OF HIGHER LEARNING PROGRAMS
Makes various changes to the academic program approval process for independent higher
education institutions administered by OHE 2022SB-00105-R000254-BA.DOCX
Researcher: JC Page 3 4/4/22
The bill defines "authorization" as the approval by OHE to operate a
higher learning program or higher education institution for subsequent
periods and confer specified degrees. The bill replaces references to
"licensure" and "accreditation" of higher education institutions with
"authorization." Under current law, a “program of higher learning”
OHE regulates is any course of instruction for which college or
university-level credit may be given or received by transfer. Under the
bill, this includes any course offered by dual enrollment.
OHE Advisory Council
Current law requires OHE to establish academic review commissions
to hear each individual appeal of a denial of an application for licensure
or accreditation of a higher learning program or higher education
institution. Under current law, for each appeal, OHE must select a nine-
person commission from a panel of 35 members appointed by legislative
leaders and the governor. Current law requires a commission to review
the appeal and make a decision on it within 30 days after the applicant
submits the appeal.
The bill eliminates this requirement and instead allows OHE to
establish an advisory council to advise on issues related to authorizing
higher education institutions and private career schools. The bill
requires the OHE executive director to appoint council members with:
1. expertise in the quality assurance and relevance of programs of
higher learning;
2. knowledge of, and experience in, the business operations and
financing of higher education institutions;
3. knowledge of the laws and regulations applicable to higher
education institutions; and
4. expertise in consumer protection for students and prospective
students.
Focused and On-Site Reviews
The bill requires the OHE executive director or his designee to 2022SB-00105-R000254-BA.DOCX
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conduct a focused or on-site review of an application for program
modifications, nonsubstantive changes, and authorizations if he
determines that further review is needed due at least in part to the
higher education institution's financial condition. A focused or on-site
review is required under existing law if further review of an application
is needed due to the applicant offering instruction in a new higher
learning program or new degree level.
By law, a "focused review" is one by an out-of-state curriculum expert
and an "on-site review" is a full team evaluation by OHE at the higher
education institution (CGS § 10a-34(e)).
Accreditation by Another Entity
The bill eliminates provisions (1) allowing OHE to deem accredited
any program for which evidence of programmatic accreditation is
presented (e.g., accreditation by a professional association), and (2)
requiring OHE to accept regional accreditation that satisfy its
requirements, unless it finds cause not to accept it.
Financial Conditions
The bill allows OHE, for any program or institution accredited or
authorized to award degrees granted in accordance with law before July
1, 1965, to discontinue the accreditation or authority if OHE finds the
institution is in an unsound financial condition or showing financial
indicators that it is in danger of closure.
The bill requires, beginning July 1, 2023, each authorized higher
education institution to annually submit to OHE, at a time and in a
manner the office prescribes, a report that includes certain financial
information described below. Under the bill, an "authorized institution
of higher education" is any proposed new higher education institution
and any higher education institution located in the state or authorized
by another state, but does not include any public higher education
institution governed by the Board of Regents for Higher Education and
the UConn Board of Trustees or any higher education institution
authorized to award degrees prior to July 1, 1965. 2022SB-00105-R000254-BA.DOCX
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The bill requires the report to include:
1. a list of higher learning programs the institution offers;
2. a single point of contact at the institution for student complaints;
3. the schedule of tuition, fees, and all other charges and expenses
necessary for completing a higher learning program;
4. any decisions by the institution's accrediting agency or the
federal government that adversely affects the institution's status;
5. any change of ownership;
6. a copy of the most recent audited financial statements detailing
the institution's status; and
7. the student and graduate retention rates, information concerning
graduate employment outcomes, and any other information, as
determined by OHE in consultation with the institution, to
determine whether the institution is maintaining quality higher
learning programs.
The bill also requires the report to include any other information
necessary to determine whether the institution is in an unsound
financial condition or showing financial indicators that it is in danger of
closure. Under the bill, this information is exempt from the state’s
Freedom of Information Act.
§§ 7, 10-11, 15, 17, 21, 23, 26-39 — PRIVATE CAREER SCHOOLS
Renames "private occupational schools" as "private career schools"
Under current law, a "private occupational school" is a person, board,
association, partnership, limited liability company, or other entity
offering instruction in any trade or industrial, commercial, service,
professional, or other occupation for a renumeration, consideration,
reward, or fee. The bill renames these schools as “private career schools”
and makes conforming changes throughout the statutes. Under current
law and the bill, these schools do not include (1) publicly supervised
and controlled instruction, (2) employee or member training offered by 2022SB-00105-R000254-BA.DOCX
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a firm or organization, (3) instruction from a school authorized by the
legislature to confer degrees or (4) instruction offered in the arts or
recreation.
§§ 11-13 — APPLICATION PROCESS
Modifies the application requirements and process; removes time limit on a private
occupational school's irrevocable letter of credit; and requires a private occupational school
to provide evidence to OHE that it has the financial resources to serve its students in
order to renew its authorization certificate
Application Requirements, Fees, and Evaluation Teams (§ 11)
Application requirements. The bill eliminates requirements for
specific information on the application for a certificate of authorization,
including the names and addresses of all school stockholders and the
proposed student enrollment agreement and school catalog. The bill
instead requires OHE to prescribe forms. The bill also requires OHE to
adopt regulations specifying the initial application fee amount. By law,
anyone seeking to offer occupational instruction must submit their
application to the OHE executive director or designee.
Evaluation team. By law, for applicants seeking to offer occupational
instruction, OHE must appoint an evaluation team. Current law
establishes the team's membership, procedures for challenging
membership, and its duties, which include (1) conducting on-site
inspections, (2) submitting noncompliance reports, (3) giving the school
30 days to provide evidence of compliance, and (4) submitting a final
recommendation within 120 after the inspection. Under current law, the
evaluation team must consider set factors (e.g., whether the school has
adequate space, equipment, instructional materials, and personnel for
the instruction offered).
The bill eliminates these provisions and instead requires OHE to
appoint an evaluation team in accordance with regulations and requires
the evaluation team to submit a written report to the OHE executive
director recommending authorization or nonauthorization after an on-
site inspection.
Hospitals and schools offering barbering or hairdressing instruction.
The bill eliminates provisions requiring that hospitals offering 2022SB-00105-R000254-BA.DOCX
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postsecondary career instruction obtain a certificate of authorization
and that OHE prioritize hospitals based on the size and scope of
instruction offered.
The bill also eliminates provisions requiring that schools offering
postsecondary career instruction in barbering or hairdressing get a
certificate of authorization.
Credit Requirement (§ 12)
By law and unchanged by the bill, a private occupational school must
file with the OHE executive director an irrevocable letter of credit,
issued by a bank with its main office or branch in Connecticut,
guaranteeing the school's payments to the Private Career School
Student Protection Account. Under current law, the letter of credit is for
$40,000. Under the bill, OHE must set the amount in regulations.
The Private Career School Student Protection Account is used to
refund tuition to students unable to complete a course at a private
occupational school because the school goes bankrupt or closes (CGS §
10a-22u).
The bill removes the time limit on the irrevocable letter of credit and
requires OHE to set the associated penal amount in regulations. Under
current law, the letter of credit is released 12 years after the date of initial
approval.
Renewal Application (§ 13)
The bill also requires a private occupational school to provide
evidence to OHE, as part of its renewal application and at the executive
director's discretion, that it has adequate financial resources to serve its
current students for OHE to renew its certificate of authorization to
operate.
§§ 13, 14, 18-20 & 25 — FEES, FINES, AND OTHER PAYMENTS IN
REGULATIONS
Requires OHE to establish certain fees, fines, penalties, and other payments in regulations
and eliminates amounts set in statute when the regulations become effective
The bill sunsets certain fee, fine, and payment amounts set in statute 2022SB-00105-R000254-BA.DOCX
Researcher: JC Page 8 4/4/22
and instead requires OHE to set them in regulations. Current law sets
the following fines, fees, or other payments:
1. renewing a certificate: $200 for each school and $200 for each
branch;
2. changing ownership: $2,000, plus $200 for each in-state branch;
3. penalty for violations of laws or regulations concerning private
occupational schools: $500 per day;
4. operating without a certificate of operation: $500 per day;
5. failure to comply with school closure requirements: $500 per day;
and
6. underpayment into the Private Career School Student Protection
Account: the underpayment amount plus a 10% penalty.
Existing law requires OHE to make regulations to carry out its duties.
Under the bill, the statutory amounts described above are only effective
until OHE regulations setting amounts for these payments become
effective.
§ 16 — DISTANCE LEARNING PROGRAMS
Requires private occupational schools to request authorization to offer existing or new
programs through a distance learning program
The bill requires an OHE-authorized private occupational school to
request authorization to offer existing or new programs through a
distance learning program at least 60 days before establishing the new
program (see BACKGROUND). Existing law already requires an OHE-
authorized private occupational school to request authorization to
establish and operate additional classroom sites or branch schools at
least 60 days before establishing the new location.
By law, a "distance learning program" is a program of study in which
lectures are broadcast or classes are conducted by correspondence or
over the Internet, without requiring a student to attend in person (CGS
§ 10-22h).
§ 22 — DISCLOSURE REQUIREMENTS 2022SB-00105-R000254-BA.DOCX
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Prohibits any private occupational school from imposing disclosure requirements on
students requiring them, as a condition of enrollment, to enter into agreements limiting
their legal recourse in claims against the school
Beginning January 1, 2023, the bill prohibits any private occupational
school from imposing disclosure requirements on students that require
them, as a condition of enrollment, to enter into agreements limiting
their legal recourse in claims against the school.
Under current law, OHE requires private occupational schools, when
applying for initial or renewed licensure, accreditation, or certificates of
authorization, to make certain disclosures if they require students to
enter into an enrollment agreement that contains any provision (1)
limiting participation in a class action against the institution, (2) limiting
any claim students may have against the institution or the damages
associated with the claim, or (3) requiring students to bring claims
against the institution in a forum that is less convenient, more costly, or
slower-moving than an in-state judicial forum. The bill requires all
private career schools to makes these disclosures, which include:
1. the number of claims made against the school including claims
made against a parent organization or subsidiary, by a current or
former student;
2. a description of the rights asserted; and
3. an update on the status of these claims.
§ 24 — PRIVATE CAREER SCHOOL STUDENT BENEFIT ACCOUNT
Requires the advisory committee tasked with assisting the OHE executive director in
administering the private career school student benefit account to be established only
where there are available funds to award
The bill requires the advisory committee tasked with assisting the
OHE executive director in administering the private career school
student benefit account to be established only when there are funds
available in the account. By law, the account awards financial aid grants
to benefit students.
§ 40 — REPEALER 2022SB-00105-R000254-BA.DOCX
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Eliminates a requirement that hospital based occupational schools pay annual fees and
quarterly assessments into the Private Occupational School Student Protection Account
The bill eliminates a requirement that hospital based occupational
schools pay (1) a $200 annual fee to the Private Occupational School
Student Protection Account for each year after the school's initial period
of authorization, (2) quarterly assessments on tuition revenue, and (3) a
$200 certificate renewal fee.
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable
Yea 20 Nay 3 (03/17/2022)