Researcher: JC Page 1 4/30/22
OLR Bill Analysis
SB 105 (File 254, as amended by Senate "A")*
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 disseminate information on postsecondary education opportunities
throughout the state
§§ 3-10 — OVERSIGHT OF HIGHER LEARNING PROGRAMS
Makes various changes to the academic program approval process for independent higher
education institutions administered by OHE
§§ 8, 11-12, 16, 18, 21, 23-25 & 27-42 — PRIVATE CAREER SCHOOLS
Renames “private occupational schools” as “private career schools”
§§ 12-14 — APPLICATION PROCESS
Modifies the private occupational school authorization certificate 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
§§ 14, 15 & 19-22 — 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
§ 17 — DISTANCE LEARNING PROGRAMS
Requires private occupational schools to request authorization to offer existing or new
programs through a distance learning program
§ 26 — PRIVATE CAREER OCCUPATIONAL SCHOOL STUDENT
BENEFIT ACCOUNT
Requires the advisory committee tasked with assisting the OHE executive director in
administering the Private Occupational School Student Benefit Account to be established
only when there are available funds to award 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 2 4/30/22
§ 43 — 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.
*Senate Amendment “A” (1) changes the effective dates of most
provisions from October 1, 2022, to July 1, 2022; (2) requires OHE to
disseminate information on postsecondary education throughout the
state; (3) eliminates various provisions in the underlying bill, including
(a) allowing OHE to establish an advisory council on authorizing higher
education institutions, (b) requiring higher education institutions to
report annually on financial information, and (c) allowing OHE to
establish penalties in regulations for underpayment to the Private
Occupational School Student Protection Account; (4) allows OHE to
conduct a focused or on-site review of any higher education institution
deemed at risk of imminent closure; (5) requires OHE to enter into a
memorandum of understanding with an accrediting agency to conduct
financial screenings; (6) requires OHE to only conduct financial
screenings for schools that are not being screened by an accrediting
agency; and (7) requires the Legislative Commissioners’ Office to make
technical, grammatical, and punctuation changes as necessary in
codifying provisions changing “private occupational school” to “private
career school.”
EFFECTIVE DATE: July 1, 2022, unless otherwise noted below.
§ 1 — DEPARTMENT HEAD
Makes the OHE executive director a “department head” appointed by the governor and
subject to legislative approval
The bill adds OHE’s executive director to the statutory list of
“department heads” appointed by the governor and subject to 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 3 4/30/22
legislative approval. Existing law already requires the governor to
appoint the executive director with confirmation by the legislature.
§ 2 — INFORMATION ON POSTSECONDARY EDUCATION
OPPORTUNITIES
Requires OHE to disseminate information on postsecondary education opportunities
throughout the state
The bill requires OHE to disseminate information throughout the
state 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. The
bill eliminates a provision allowing the Board of Regents to prescribe
additional responsibilities for OHE’s executive director.
§§ 3-10 — OVERSIGHT OF HIGHER LEARNING PROGRAMS
Makes various changes to the academic program approval process for independent higher
education institutions administered by OHE
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,” “approval,” 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.
Appeal of Application Denial (§ 3)
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 instead requires OHE to conduct a hearing
on the appeal in accordance with the Uniform Administrative 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 4 4/30/22
Procedure Act.
Focused and On-Site Reviews (§ 3)
The bill requires the OHE executive director or his designee to
conduct a focused or on-site review of an application for program
modifications, nonsubstantive changes, or authorizations if he
determines that further review is needed due at least in part to the
higher education institution’s financial condition indicating that the
institution is at risk of imminent closure as determined through the
financial screening required under the bill. 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 (§ 3)
Current law requires OHE to accept, unless it finds cause not to, (1)
regional accreditations that satisfy its requirements and (2) national
accreditation for Connecticut institutions accredited before July 1, 2013.
The bill instead requires OHE to accept accreditation recognized by the
U.S. Department of Education secretary, unless it finds cause not to
accept it.
Financial Conditions (§ 3)
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 at risk of imminent closure, as determined through a
financial screening conducted under the bill (§ 4).
Financial Screenings and Imminent Risk of Closure
Determinations (§ 4)
The bill requires OHE to enter into a memorandum of understanding
with one or more accrediting agencies (i.e., accrediting associations 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 5 4/30/22
recognized by the U.S. Department of Education secretary) to conduct
an annual financial screening of each independent higher education
institution. If the institution does not annually complete a financial
screening with an accrediting agency, the screening must be conducted
by OHE, in a form and manner OHE’s executive director prescribes.
Under the bill, OHE may determine that an independent higher
education institution is at risk of imminent closure through:
1. an OHE-conducted financial screening (i.e., a review and
evaluation of financial information to determine whether the
financial status of a higher education institution puts it at risk of
imminent closure); or
2. acceptance by OHE of the determination made by an accrediting
agency.
Under the bill, an independent higher education institution that is “at
risk of imminent closure” means one that OHE has determined is at risk
of being unable to continue operations or substantially fulfill its
obligations to enroll and admit students for the balance of the current
and subsequent academic year.
The bill requires OHE, upon determining that an independent higher
education institution is at risk of imminent closure, to submit a
summary of the reasons for the determination to the institution. Once
an institution receives a summary, it must submit to the office, in a form
and manner prescribed by OHE’s executive director:
1. notice of any known financial liability or risk;
2. any information necessary to accurately determine and monitor
the institution’s financial status and risk of imminent closure; and
3. an updated closure plan approved by the institution’s governing
board.
Under the bill, if any independent higher education institution fails
to comply with the above requirements, the OHE executive director 2022SB-00105-R01-BA.DOCX
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may request to suspend state funding designated for the institution,
establish a date to suspend or revoke the institution’s degree-granting
authority, or impose other penalties he deems appropriate.
Under the bill, financial information and records submitted to OHE
for this purpose are exempt from the state’s Freedom of Information
Act.
Closure Plan Updates (§ 6)
Beginning July 1, 2023, when an independent higher education
institution receives a summary from OHE indicating risk of imminent
closure, the bill requires the institution’s governing board to update the
institution’s closure plan to include plans for:
1. providing notice of impending closure to relevant stakeholders of
the institution (e.g., enrolled students, applicants, recent
graduates, faculty, staff, and surrounding communities);
2. disseminating information on student borrowers’ rights and
responsibilities;
3. managing the institution’s finances, accreditation status, and any
compliance issues with federal or state financial aid programs;
and
4. refunding student deposits and paying the cost of student record
maintenance through means such as the provision of a bond with
surety or a letter of credit in an amount to meet these costs.
EFFECTIVE DATE: July 1, 2022, except provisions on OHE’s memo
of understanding for financial screenings, related notice requirements,
and suspension requests are effective July 1, 2023.
§§ 8, 11-12, 16, 18, 21, 23-25 & 27-42 — PRIVATE CAREER
SCHOOLS
Renames “private occupational schools” as “private career schools”
Under current law, a “private occupational school” is a
postsecondary career school operated by a person, board, association,
partnership, limited liability company, or other entity offering 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 7 4/30/22
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 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.
Under the bill, when the term “private occupational school” appears
in any 2022 public or special act, it is to be substituted with the term
“private career school.” The bill requires the Legislative
Commissioners’ Office to make technical, grammatical, and
punctuation changes as necessary in codifying this section’s provisions.
EFFECTIVE DATE: July 1, 2022, except the provision requiring the
Legislative Commissioners’ Office to make related changes is effective
upon passage.
§§ 12-14 — APPLICATION PROCESS
Modifies the private occupational school authorization certificate 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 (§ 12)
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 nonrefundable initial application fee
amount and requires each initial authorization application submitted to
be accompanied by the fee once the regulations become effective. By
law, anyone seeking to offer occupational instruction must submit an
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 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 8 4/30/22
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 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. The
evaluation team must be appointed pursuant to regulations once they
become effective. The bill requires OHE to appoint evaluation teams in
accordance with current law until the regulations become effective.
Hospitals and Schools Offering Barbering or Hairdressing Instruction.
The bill eliminates provisions requiring that hospitals offering
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 (§ 13)
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 Occupational 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 Occupational 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 § 2022SB-00105-R01-BA.DOCX
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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 (§ 14)
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.
§§ 14, 15 & 19-22 — 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
and instead requires OHE to set them in regulations. Current law sets
the following fines, fees, and 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; and
5. failure to comply with school closure requirements: $500 per day.
Existing law requires OHE to make regulations to carry out its duties.
The bill specifies that the regulations may prescribe fines, fees, or
penalties instead of the amounts established under current law. Under
the bill, the statutory amounts described above are only effective until
OHE regulations setting amounts for these payments become effective. 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 10 4/30/22
After the regulations become effective, applicants must submit
nonrefundable application fees in the amounts established in
regulations.
§ 17 — 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. 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).
§ 26 — PRIVATE CAREER OCCUPATIONAL SCHOOL STUDENT
BENEFIT ACCOUNT
Requires the advisory committee tasked with assisting the OHE executive director in
administering the Private Occupational School Student Benefit Account to be established
only when there are available funds to award
The bill requires the advisory committee tasked with assisting the
OHE executive director in administering the Private Occupational
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.
§ 43 — REPEALER
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 2022SB-00105-R01-BA.DOCX
Researcher: JC Page 11 4/30/22
$200 certificate renewal fee.
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable
Yea 20 Nay 3 (03/17/2022)