NJ
New Jersey Senate Bill S1792

New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S1792

Introduced
2/28/22  

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

By exempting long-established institutions from the teach-out plan requirement, S1792 aims to alleviate administrative burdens on these institutions, allowing them to operate with greater flexibility. This change is significant because it allows older proprietary institutions to potentially manage closures without the procedural oversight that younger institutions must follow, which could lead to operational efficiencies. The overarching intent appears to be supporting legacy institutions that have a long-standing presence in the educational landscape of New Jersey.

Summary

Senate Bill S1792 proposes an amendment to the existing law concerning proprietary institutions licensed to offer academic degrees in New Jersey. Specifically, the bill exempts institutions that have been operating in the state for at least 25 years from the requirement to provide a teach-out plan in the event of a potential closure. This prior law, enacted as P.L.2021, c.27, mandated that these institutions must submit a plan ensuring the orderly transition of students in the case of closure to protect their educational interests.

Contention

However, this bill has points of contention related to student protections. Critics argue that exempting older institutions from the teach-out plan requirement could leave students without adequate recourse in the event of a disorderly closure. The original requirement for a teach-out plan was designed to safeguard students' educational and financial investments, and concerns have been raised that the lack of similar protections for long-operating institutions could lead to negative outcomes for the students who are enrolled there. The debate surrounding this legislation highlights the tension between supporting institutions and ensuring student security in higher education.

Latest S1792 Activity

Companion Bills

NJ A1882

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.

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