Bill Text - SB442 (2018)

Relative to surety indemnification requirements for private postsecondary career schools.


Revision: Dec. 20, 2017, 12:15 p.m.

SB 442  - AS INTRODUCED

 

 

2018 SESSION

18-2868

04/08

 

SENATE BILL 442

 

AN ACT relative to surety indemnification requirements for private postsecondary career schools.

 

SPONSORS: Sen. Kahn, Dist 10; Sen. Watters, Dist 4; Rep. Myler, Merr. 10; Rep. Gile, Merr. 27

 

COMMITTEE: Education

 

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ANALYSIS

 

This bill amends the surety bond required of a private postsecondary career school and establishes a procedure for license suspension.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2868

04/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to surety indemnification requirements for private postsecondary career schools.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Private Postsecondary Career Schools; Surety Indemnification.  Amend RSA 188-G:3, II to read as follows:

II.  [The amount of such bond shall be based on income from tuition at 10 percent of gross tuition, with a $10,000 minimum.]  A private postsecondary career school shall secure a bond in an amount sufficient to reimburse the tuition of any student contract which cannot be fulfilled, and taking into account the number of students or potential students to be reimbursed and the expenses for investigating and processing claims.  The bond shall not be less than $10,000.  If a school licensed under RSA 188-G:2 should fail to provide the services required in a contract with any entity, as determined by a court of competent jurisdiction, the bond shall be forfeited, and the proceeds distributed by the director in such manner as justice and the circumstances require.

2  New Section; Private Postsecondary Career Schools; Suspension.  Amend RSA 188-G by inserting after section 5 the following new section:

188-G:5-a  Suspension; Hearing.  The commissioner of the department of education may, after due notice and failure by a career school to remediate noncompliance with rules adopted pursuant to this chapter, suspend the license of any school licensed pursuant to RSA 188-G:2 for a period of not more than 90 days, until such time as a hearing before the commission can be held.  The commissioner may impose interim conditions of operation which shall apply during the period of suspension.  The commission may, after due notice and hearing, suspend the license of any school licensed pursuant to RSA 188-G:2 for a period of time to be determined by the commission.  

3  Private Postsecondary Career Schools; Revocation.  Amend RSA 188-G:6 to read as follows:

188-G:6  Revocation; Hearing.  The commission may, after due notice and hearing, revoke the license of any school licensed pursuant to RSA 188-G:2 for violating the provisions of this chapter or rules adopted hereunder.  A revocation pursuant to this section shall be permanent.  The provisions of RSA 541 shall apply to actions taken pursuant to this section.

4  Effective Date.  This act shall take effect 60 days after its passage.