LCO 1 of 10 General Assembly Substitute Bill No. 6445 January Session, 2025 AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE OFFICE OF HIGHER EDUCATION. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 10a-57f of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2025): 2 (a) As used in this section: 3 (1) "Connecticut institution of higher education" means an institution 4 of higher education that (A) conducts instructional activities at a 5 physical location in the state, or (B) maintains an administrative office 6 in the state; and 7 (2) "Out-of-state institution of higher education" means an institution 8 of higher education that (A) is not a Connecticut institution of higher 9 education, and (B) is authorized, licensed or accredited by another state. 10 [(a) Not later than January 1, 2017, the] (b) The Office of Higher 11 Education shall enter into a multistate or regional reciprocity agreement 12 for purposes of enabling the state and Connecticut institutions of higher 13 education to participate in a nation-wide state authorization reciprocity 14 agreement (1) establishing uniform standards for distance learning 15 programs across states, and (2) eliminating the need for a state 16 participating in the state authorization reciprocity agreement to assess 17 Substitute Bill No. 6445 LCO 2 of 10 the quality of a distance learning program offered by an out-of-state 18 institution of higher education through the participating state's 19 authorization, licensing and accreditation process. Notwithstanding the 20 provisions of part III of this chapter and upon the Office of Higher 21 Education entering into the multistate or regional reciprocity 22 agreement, an out-of-state institution of higher education that 23 participates in the state authorization reciprocity agreement may 24 operate a distance learning program in the state in accordance with the 25 uniform standards. 26 [(b)] (c) Any Connecticut institution of higher education that seeks to 27 participate in the nation-wide state authorization reciprocity agreement 28 under subsection [(a)] (b) of this section shall submit an application with 29 the Office of Higher Education on a form prescribed by the office. The 30 office shall approve or reject the institution's application in accordance 31 with the terms of such agreement. Authorization by the office to 32 participate in such agreement shall be valid for a period of one year and 33 may be renewed by the office for additional one-year periods. The office 34 shall establish a schedule of application and renewal fees for all 35 Connecticut institutions of higher education that participate in such 36 agreement. The fee schedule shall be graduated based on the number of 37 full-time equivalent students at each Connecticut institution of higher 38 education. 39 [(c)] (d) Any out-of-state institution of higher education that does not 40 participate in the nation-wide, state authorization reciprocity agreement 41 and seeks to operate a distance learning program in the state shall 42 submit an application to the Office of Higher Education on a form 43 prescribed by the office. Each institution shall agree to abide by 44 standards, similar to those in the nation-wide, state authorization 45 reciprocity agreement and established by the office. The office shall 46 approve or reject the institution's application in accordance with the 47 standards established by the office. Authorization by the office to 48 operate a distance learning program in the state shall be valid for a 49 period of one year and may be renewed by the office for additional one-50 year periods. The office shall establish a schedule of application and 51 Substitute Bill No. 6445 LCO 3 of 10 renewal fees for all out-of-state institutions of higher education that do 52 not participate in the nation-wide, state authorization reciprocity 53 agreement and are approved by the office. The fee schedule shall be 54 graduated based on the number of full-time equivalent students 55 enrolled at each out-of-state institution of higher education. 56 [(d)] (e) Nothing in subsection [(a)] (b) of this section shall be 57 construed to affect the authority of the Attorney General to enforce the 58 provisions of chapter 735a or Title X of the Dodd-Frank Wall Street 59 Reform and Consumer Protection Act, P.L. 111-203, as amended from 60 time to time. 61 Sec. 2. Section 10a-22c of the general statutes is repealed and the 62 following is substituted in lieu thereof (Effective July 1, 2025): 63 (a) No certificate to operate a private career school shall be authorized 64 by the commissioner, or the commissioner's designee, if (1) any 65 principal, officer, member or director of the applicant school has acted 66 in a similar capacity for a private career school which has had its 67 authorization revoked pursuant to section 10a-22f; (2) the applicant 68 school does not have a net worth consisting of sufficient liquid assets or 69 other evidence of fiscal soundness to operate for the period of time for 70 which authorization is sought; (3) the applicant school or any of its 71 agents engages in advertising, sales, collection, credit or other practices 72 which are false, deceptive, misleading or unfair; (4) the applicant school 73 has any policy which discourages or prohibits the filing of inquiries or 74 complaints regarding the school's operation with the commissioner; (5) 75 the applicant school fails to satisfactorily meet the criteria set forth in 76 subsection (g) of section 10a-22b, or, on and after the effective date of 77 regulations adopted pursuant to section 10a-22k, the criteria set forth in 78 such regulations; (6) a private career school that has previously closed 79 fails to follow the procedures for school closure under section 10a-22m; 80 or (7) the applicant school does not have a director located at the school 81 and at each of its branches in this state. 82 (b) The commissioner may deny a certificate of authorization if the 83 Substitute Bill No. 6445 LCO 4 of 10 person who owns or intends to operate a private career school has been 84 convicted in this state, or any other state, of larceny in violation of 85 section 53a-122 or 53a-123; identity theft in violation of section 53a-129b 86 or 53a-129c; forgery in violation of section 53a-138 or 53a-139; or has a 87 criminal record in this state, or any other state, that the commissioner 88 reasonably believes renders the person unsuitable to own and operate a 89 private career school. A refusal of a certificate of authorization under 90 this subsection shall be made in accordance with the provisions of 91 sections 46a-79 to 46a-81, inclusive. 92 (c) No certificate to operate a private career school shall be issued by 93 the commissioner pursuant to section 10a-22d, as amended by this act, 94 until such private career school seeking authorization files with the 95 commissioner certificates indicating that the buildings and premises for 96 such school meet all applicable state and local fire and zoning 97 requirements. Such certificates shall be attested to by the fire marshal 98 and zoning enforcement officer within the municipality in which such 99 school is located. 100 (d) No certificate to operate a new private career school shall be 101 issued by the commissioner pursuant to section 10a-22d, as amended by 102 this act, until such private career school seeking authorization files with 103 the commissioner an irrevocable letter of credit issued by a bank with 104 its main office or branch located within this state in the penal amount of 105 forty thousand dollars guaranteeing the payments required of the 106 school to the private career school student protection account in 107 accordance with the provisions of section 10a-22u, except that, any letter 108 of credit issued on and after the effective date of the regulations adopted 109 pursuant to section 10a-22k, shall be in a penal amount specified in such 110 regulations. The letter of credit shall be payable to the private career 111 school student protection account in the event that such school fails to 112 make payments to the account as provided in subsection (a) of section 113 10a-22u or in the event the state takes action to reimburse the account 114 for a tuition refund paid to a student pursuant to the provisions of 115 section 10a-22v, provided the amount of the letter of credit to be paid 116 into the private career school student protection account shall not 117 Substitute Bill No. 6445 LCO 5 of 10 exceed the amounts owed to the account. In the event a private career 118 school fails to close in accordance with the provisions of section 10a-119 22m, the commissioner may seize the letter of credit, which shall be 120 made payable to the private career school protection account. 121 (e) No certificate to operate a private career school shall be renewed 122 by the commissioner pursuant to section 10a-22d, as amended by this 123 act, if such private career school seeking authorization has not enrolled 124 any students continually during the previous two calendar years. Upon 125 the expiration of such private career school's authorization, such private 126 career school shall follow the procedures for school closure set forth in 127 section 10a-22m. 128 [(e)] (f) The commissioner shall notify the applicant private career 129 school, by certified mail, return receipt requested of the decision to grant 130 or deny a certificate of authorization not later than sixty days after 131 receiving the written report of the evaluation team appointed pursuant 132 to subsection (e) of section 10a-22b. 133 Sec. 3. Subsection (e) of section 10a-22d of the general statutes is 134 repealed and the following is substituted in lieu thereof (Effective July 1, 135 2025): 136 (e) Notwithstanding the provisions of sections 10a-22a to 10a-22o, 137 inclusive, the commissioner may authorize the extension of the most 138 recent certificate of authorization for a period not to exceed [sixty] 139 ninety days for good cause shown, provided such extension shall not 140 change the date of the original certificate's issuance or the date for each 141 renewal. 142 Sec. 4. Section 10a-34 of the general statutes is repealed and the 143 following is substituted in lieu thereof (Effective July 1, 2025): 144 (a) For the purposes of this section, (1) "program of higher learning" 145 means any course of instruction for which it is stated or implied that 146 college or university-level credit may be given or may be received by 147 transfer, including any course offered by dual enrollment; (2) "degree" 148 Substitute Bill No. 6445 LCO 6 of 10 means any letters or words, diploma, certificate or other symbol or 149 document which signifies satisfactory completion of the requirements 150 of a program of higher learning; (3) "institution of higher education" 151 means any person, school, board, association, limited liability company 152 or corporation which is authorized to offer one or more programs of 153 higher learning leading to one or more degrees; (4) "authorization" 154 means the approval by the Office of Higher Education to operate or 155 continue operating a program of higher learning or institution of higher 156 education for subsequent periods, and in such periods to confer 157 specified degrees; (5) "program modification" means (A) a change in a 158 program of higher learning that does not clearly qualify as a new 159 program of higher learning or a nonsubstantive change, including, but 160 not limited to, a new program of higher learning consisting primarily of 161 course work for a previously approved program of higher learning, (B) 162 an approved program of higher learning to be offered at an off-campus 163 location, (C) a change in the title of a degree, or (D) a change in the title 164 of a program of higher learning; [and] (6) "nonsubstantive change" 165 means (A) a new undergraduate certificate program, within an existing 166 program of higher learning, of not more than thirty semester credit 167 hours that falls under an approved program of higher learning, (B) a 168 new baccalaureate minor of not more than eighteen semester credit 169 hours, (C) a new undergraduate option or certificate program of not 170 more than fifteen semester credit hours, or (D) a new graduate option 171 or certificate program of not more than twelve semester credit hours; 172 and (7) "change of ownership" means a transaction involving an 173 institution of higher education that results in a change of control of such 174 institution, including, but not limited to, a (A) sale of such institution, 175 (B) transfer of the controlling interest of stock of such institution or a 176 parent corporation of such institution, (C) merger of two or more 177 institutions of higher education, (D) division of such institution into two 178 or more institutions of higher education, (E) transfer of liabilities of such 179 institution to a parent corporation of such institution, (F) transfer of 180 assets that comprise a substantial portion of the educational assets of 181 such institution, unless the transfer consists exclusively of granting a 182 security interest in such assets, or (G) change in the status of such 183 Substitute Bill No. 6445 LCO 7 of 10 institution as a public, nonprofit or for-profit institution of higher 184 education. 185 (b) The Office of Higher Education shall establish regulations, in 186 accordance with chapter 54, concerning the requirements for 187 authorization, administration, finance, faculty, curricula, library, 188 student admission and graduation, plant and equipment, records, 189 catalogs, program announcements and any other criteria pertinent 190 thereto, as well as the periods for which authorization may be granted, 191 and the costs and procedures of evaluations as provided in subsections 192 (c), (d) and (i) of this section. 193 (c) No person, school, board, association or corporation shall confer 194 any degree unless authorized by act of the General Assembly. No 195 application for authority to confer any such degree shall be approved 196 by the General Assembly or any committee thereof, nor shall any such 197 authority be included in any charter of incorporation until such 198 application has been evaluated and approved by the Office of Higher 199 Education in accordance with regulations established by the Office of 200 Higher Education. 201 (d) The Office of Higher Education shall review all requests and 202 applications for program modifications, nonsubstantive changes, [and] 203 authorizations and change of ownership. The office shall review each 204 application in consideration of the academic standards set forth in the 205 regulations for authorization adopted by said office in accordance with 206 the provisions of subsection (b) of this section. Notwithstanding the 207 provisions of section 10a-34e, any application that is determined by the 208 office to be for (1) a program modification that meets all such academic 209 standards, (2) a nonsubstantive change, or (3) authorization shall be 210 deemed approved, and the office shall notify the institution of such 211 approval, not later than forty-five days from the date the office receives 212 such application without requiring any further action from the 213 applicant. 214 (e) If the Commissioner of Higher Education, or the commissioner's 215 Substitute Bill No. 6445 LCO 8 of 10 designee, determines that further review of an application is needed due 216 at least in part to the applicant offering instruction in a new program of 217 higher learning or new degree level or the financial condition of the 218 institution of higher education is determined to be at risk of imminent 219 closure as a result of a financial screening conducted pursuant to the 220 provisions of section 10a-34h, then the commissioner or the 221 commissioner's designee shall conduct a focused or on-site review. Such 222 applicant shall have an opportunity to state any objection regarding any 223 individual selected to review an application on behalf of the 224 commissioner. For purposes of this subsection and subsection (f) of this 225 section, "focused review" means a review by an out-of-state curriculum 226 expert; and "on-site review" means a full team evaluation by the office 227 at the institution of higher education. 228 (f) The Commissioner of Higher Education, or the commissioner's 229 designee, may require (1) a focused or on-site review of any program 230 application in a field requiring a license to practice in Connecticut, and 231 (2) evidence that a program application in a field requiring a license to 232 practice in Connecticut meets the state or federal licensing requirements 233 for such license. 234 (g) Any application for authorization of a new institution in this state 235 shall be subject to an on-site review upon a determination by the Office 236 of Higher Education that the application is complete and shall be 237 reviewed at the institutional level for each program as described in 238 subsection (b) of this section. Such process shall be completed not later 239 than nine months from the date said office receives the application. 240 (h) If the Office of Higher Education denies an application for 241 authorization of a program or institution of higher education, the 242 applicant may appeal the denial not later than ten days from the date of 243 denial. The office shall conduct a hearing in accordance with the 244 requirements of chapter 54 to hear such appeal. 245 (i) No person, school, board, association or corporation shall operate 246 a program of higher learning or an institution of higher education unless 247 Substitute Bill No. 6445 LCO 9 of 10 it has been authorized by the Office of Higher Education, nor shall it 248 confer any degree unless it has been authorized in accordance with this 249 section. The office shall accept accreditation recognized by the Secretary 250 of the United States Department of Education, in satisfaction of the 251 requirements of this subsection unless the office finds cause not to rely 252 upon such accreditation. If any institution of higher education provides 253 evidence of programmatic accreditation, the office may consider such 254 accreditation in satisfaction of the requirements of this subsection and 255 deem the program at issue in the application for accreditation to be 256 accredited in accordance with this section. 257 (j) No person, school, board, association or corporation shall use in 258 any way the term "junior college" or "college" or "university" or use any 259 other name, title, literature, catalogs, pamphlets or descriptive matter 260 tending to designate that it is an institution of higher education, or that 261 it may grant academic or professional degrees, unless the institution has 262 been authorized by the office, nor shall it offer any program of higher 263 learning without authorization of the Office of Higher Education. 264 (k) Authorization of any program or institution or authority to award 265 degrees granted in accordance with law prior to July 1, 1965, shall 266 continue in effect unless the Office of Higher Education determines that 267 an institution is at risk of imminent closure as a result of a financial 268 screening conducted pursuant to the provisions of section 10a-34h. 269 (l) Notwithstanding the provisions of subsections (b) to (j), inclusive, 270 of this section and subject to the authority of the State Board of 271 Education to regulate teacher education programs, an independent 272 institution of higher education, as defined in section 10a-173, shall not 273 require approval by the Office of Higher Education for any new 274 programs of higher learning or any program modifications proposed by 275 such institution, provided (1) the institution maintains eligibility to 276 participate in financial aid programs governed by Title IV, Part B of the 277 Higher Education Act of 1965, as amended from time to time, (2) the 278 United States Department of Education has not determined that the 279 institution has a financial responsibility score that is less than 1.5 for the 280 Substitute Bill No. 6445 LCO 10 of 10 most recent fiscal year for which the data necessary for determining the 281 score is available, and (3) the institution has been located in the state and 282 accredited as a degree-granting institution in good standing for ten 283 years or more by a regional accrediting association recognized by the 284 Secretary of the United States Department of Education and maintains 285 such accreditation status. Each institution that is exempt from program 286 approval by the Office of Higher Education under this subsection shall 287 (A) on or before the last date of each semester, but not less frequently 288 than annually, update the credentials database, established pursuant to 289 the provisions of section 10a-35b, with any new programs of higher 290 learning that were introduced or any existing programs of higher 291 learning that were modified or discontinued during such semester, and 292 (B) not later than July 1, 2024, and annually thereafter, file with the office 293 (i) the institution's current program approval process and all actions of 294 the governing board concerning approval of any new program of higher 295 learning, and (ii) the institution's financial responsibility composite 296 score, as determined by the United States Department of Education, for 297 the most recent fiscal year for which the data necessary for determining 298 the score is available. 299 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 10a-57f Sec. 2 July 1, 2025 10a-22c Sec. 3 July 1, 2025 10a-22d(e) Sec. 4 July 1, 2025 10a-34 HED Joint Favorable Subst. Statement of Legislative Commissioners: In Section 4(a)(7)(B) and (E), "of such institution" was inserted after "parent corporation" for clarity.