Bill Text: CT HB06769 | 2015 | General Assembly | Comm Sub

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Bill Title: An Act Concerning The Unexpected Closure Of Private Occupational Schools.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-03-23 - File Number 174 [HB06769 Detail]

Download: Connecticut-2015-HB06769-Comm_Sub.html

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General Assembly		Raised Bill No. 6769
January Session, 2015		LCO No. 3570
		*_____HB06769HED___030615____*
Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)

AN ACT CONCERNING THE UNEXPECTED CLOSURE OF PRIVATE OCCUPATIONAL SCHOOLS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (d) of section 10a-22c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(d) No certificate to operate a new private occupational school shall be issued by the executive director pursuant to section 10a-22d until such private occupational school seeking authorization files with the executive director an irrevocable letter of credit issued by a bank with its main office or branch located within this state in the penal amount of forty thousand dollars guaranteeing the payments required of the school to the private occupational school student protection account in accordance with the provisions of section 10a-22u. The letter of credit shall be payable to the private occupational school student protection account in the event that such school fails to make payments to the account as provided in subsection (a) of section 10a-22u or in the event the state takes action to reimburse the account for a tuition refund paid to a student pursuant to the provisions of section 10a-22v, provided the amount of the letter of credit to be paid into the private occupational school student protection account shall not exceed the amounts owed to the account. In the event a private occupational school fails to close in accordance with the provisions of section 10a-22m, the executive director may seize the letter of credit, which shall be made payable to the private occupational school student protection account. The letter of credit required by this subsection shall be released twelve years after the date of initial approval, provided evidence of fiscal soundness has been verified.

Sec. 2. Section 10a-22m of the general statutes is amended by adding subsections (d) and (e) as follows (Effective July 1, 2015):

(NEW) (d) In the event a private occupational school fails to meet the requirements set forth in subsection (a) of this section and closes prior to graduating all current students, the executive director may seize the letter of credit filed by the private occupational school pursuant to subsection (d) of section 10a-22c, as amended by this act, and such letter of credit shall be made payable to the private occupational school student protection account. The executive director may expend funds from the private occupational school student protection account as necessary to facilitate a teach-out of any remaining students up to and including the issuance of a certificate of completion pursuant to subsection (e) of this section. For purposes of this subsection and subsection (e) of this section, (1) "teach-out" means the completion of instruction of a course or program of study in which a student was enrolled, provided the teach-out includes instruction of the entire program of study when a course is a part of such program of study, and (2) "certificate of completion" means the credential, documented in writing, that is issued to a student who completes a course or program of study offered by a private occupational school.

(NEW) (e) In the event of a private occupational school closure that fails to meet the requirements set forth in subsection (a) of this section, the executive director may issue a certificate of completion to each student it determines has successfully completed such student's course or program of study in which such student was enrolled at such private occupational school.

This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2015	10a-22c(d)
Sec. 2	July 1, 2015	10a-22m

HED

Joint Favorable