PA 16-24—SB 97

Higher Education and Employment Advancement Committee


SUMMARY: This act eliminates a provision in prior law that adjusted private occupational schools' required payments to the private occupational school student protection account once its balance reaches $2. 5 million. The act instead requires that all schools pay 0. 4% of their tuition revenues into the account in every quarter, regardless of its balance.

By law, the account is funded by (1) quarterly assessments on private occupational schools' tuition revenue and (2) other fees related to the schools' operations. Under prior law, when the account balance exceeded $2. 5 million, schools that began making payments to the account on or before October 1, 1987 ceased making payments until the balance fell below 5% of the annual net tuition income. Schools that began payments after October 1, 1987 had to continue making payments for the same number of calendar quarters as elapsed between October 1, 1987 and the date when the account balance first reached 6% of the annual net tuition income.

Under existing law, correspondence schools must contribute to the account only for their enrolled Connecticut residents, and only the Connecticut residents enrolled in these schools are eligible for refunds from the account. The act (1) specifies that these provisions also apply to distance learning programs and (2) removes obsolete references to home study schools.

By law, the account is used to refund tuition to students unable to complete a course at a private occupational school because the school becomes insolvent or stops operating.

EFFECTIVE DATE: July 1, 2016

OLR Tracking: TA; JKL; MS; bs