New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A1882

Introduced
1/11/22  

Caption

Exempts proprietary institution licensed to offer academic degrees that has operated in State for at least 25 years from requirement to provide teach-out plan in event of potential closure.

Impact

The proposed legislation is likely to significantly impact older proprietary institutions by relieving them of certain regulatory burdens that newer institutions still face. Proponents argue that this will enable these long-standing institutions to operate with increased flexibility, potentially improving their sustainability and continuity of educational services. By exempting them from the teach-out requirements, the bill acknowledges the historical reliability and established operations of these institutions, fostering an environment for them to thrive without additional state-imposed constraints.

Summary

Assembly Bill A1882 aims to amend existing legislation regarding proprietary institutions licensed to offer academic degrees in New Jersey. Specifically, it provides that any such institution that has been operating in the State for at least 25 years will be exempt from the requirement to submit a teach-out plan to the Secretary of Higher Education in the event of a potential closure. This bill is proposed as a response to the provisions set forth in P.L.2021, c.27, which mandates institutions to create and maintain a teach-out plan to ensure student protections during potential closures.

Conclusion

In summary, Assembly Bill A1882 presents a shift in regulatory expectations for veteran proprietary institutions yet poses questions surrounding student safety and institutional accountability. The ongoing debate surrounding this legislation reflects broader themes in the higher education landscape, particularly as they relate to the balance between regulation and institutional autonomy.

Contention

However, the bill may also spark discussion regarding the implications of exempting older institutions from these requirements. Critics may raise concerns about the need for oversight and the protection of students who attend these institutions. Without a mandatory teach-out plan, there may be fears regarding student welfare and the assurance that they will receive the degrees or educational services that they have invested in, particularly during an unexpected closure. They may argue that it could lead to inadequate protections compared to the newer institutions that must comply with stricter requirements.

Companion Bills

NJ S1792

Same As Exempts proprietary institution licensed to offer academic degrees that has operated in State for at least 25 years from requirement to provide teach-out plan in event of potential closure.

Similar Bills

NJ S3731

Establishes Student Tuition Recovery Fund in Office of the Secretary of Higher Education to compensate students impacted by failing or fraudulent proprietary institutions.

NJ S3732

Requires degree-granting proprietary institutions to expend at least 70 percent of tuition and fee revenues on educational instruction and student support services.

NJ S1582

Applies provisions of "New Jersey College Student and Parent Consumer Information Act" to proprietary schools and limits eligibility for State student assistance programs to students enrolled in certain proprietary schools.

NJ S1532

Applies provisions of "New Jersey College Student and Parent Consumer Information Act" to proprietary schools and limits eligibility for State student assistance programs to students enrolled in certain proprietary schools.

NJ S1112

Requires certain institutions of higher education and degree-granting proprietary institutions to submit certain documentation on online program managers to Secretary of Higher Education.

NJ S3820

Requires certain institutions of higher education and degree-granting proprietary institutions to submit certain documentation on online program managers to Secretary of Higher Education.

NJ S3566

Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.

NJ A5181

Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.