[First Reprint]

SENATE, No. 3544

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED MARCH 11, 2021

 

 

Sponsored by:

Senator  VIN GOPAL

District 11 (Monmouth)

Senator  M. TERESA RUIZ

District 29 (Essex)

 

Co-Sponsored by:

Senator Codey

 

 

 

 

SYNOPSIS

     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.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Higher Education Committee on December 9, 2021, with amendments.

  

An Act concerning certain proprietary institutions licensed to offer academic degrees and amending ¹[P.L.    , c.   (pending before the Legislature as the Senate Committee Substitute for Senate Bill Nos. 1271, 2588, and 2660 [First Reprint] and the Assembly Committee Substitute for Assembly Bill No. 4409 [First Reprint] of 2020-2021)] P.L.2021, c.27¹.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 8 of ¹[P.L.    , c.   (C.        ) (pending before the Legislature as the Senate Committee Substitute for Senate Bill Nos. 1271, 2588, and 2660 [First Reprint] and the Assembly Committee Substitute for Assembly Bill No. 4409 [First Reprint] of 2020-2021)] P.L.2021, c.27 (C.18A:3B-92)¹ is amended to read as follows:

     8.    a.  This section shall only apply to a proprietary institution licensed to offer academic degrees that [operates] has operated in this State for less than 25 years on the effective date of ¹[P.L.    c.   (C.        ) (pending before the Legislature as the Senate Committee Substitute for Senate Bill Nos. 1271, 2588, and 2660 [First Reprint] and the Assembly Committee Substitute for Assembly Bill No. 4409 [First Reprint] of 2020-2021)]¹ P.L.2021, c.27.

     b.    A proprietary institution licensed to offer academic degrees shall provide the secretary a teach-out plan that addresses a potential closure of the institution.  The teach-out plan shall be updated as required by the secretary.

     c.     A teach-out plan shall include any information required by the secretary and shall state that:

     (1)   the institution shall make all reasonable efforts to ensure that any closure of the institution complies with the requirements of sections 9 through 12 of ¹[P.L.   , c.  (C.   ) (pending before the Legislature as the Senate Committee Substitute for Senate Bill Nos. 1271, 2588, and 2660 [First Reprint] and the Assembly Committee Substitute for Assembly Bill No. 4409 [First Reprint] of 2020-2021)] P.L.2021, c.27 (C.18A:3B-93 through C.18A:3B-96)¹ ;

     (2)   the chief executive officer and the members of the governing body of the institution were not in an executive position or a member of a governing body of an institution in which a disorderly closure occurred; and

     (3)   any institutional financial aid agreement offered to a student shall contain language stating that, in the event of a disorderly closure, the institutional debt shall be void and shall not be recovered, collected, or enforced.

     d.    The Office of the Attorney General shall seek an injunction or other judicial remedy against a proprietary institution licensed to offer academic degrees that fails to comply with the requirements of this section, including requiring the institution to refund all tuition and fees paid by any student.

 

     2.    This act shall take effect ¹[on the date of enactment of P.L.    , c.   (pending before the Legislature as the Senate Committee Substitute for Senate Bill Nos. 1271, 2588, and 2660 [First Reprint] and the Assembly Committee Substitute for Assembly Bill No. 4409 [First Reprint] of 2020-2021) or September 1, 2021, whichever is later] immediately¹.