HB 168 - AS INTRODUCED
2023 SESSION
23-0557
04/05
HOUSE BILL 168
AN ACT relative to surety indemnification for career schools.
SPONSORS: Rep. Cordelli, Carr. 7; Rep. Jonathan. Smith, Carr. 5; Rep. Ladd, Graf. 5; Rep. Moffett, Merr. 4; Rep. Pitre, Straf. 1; Rep. O. Ford, Rock. 3
COMMITTEE: Education
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ANALYSIS
This bill amends the requirements for surety bonds obtained by a private postsecondary career school.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0557
04/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to surety indemnification for 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. 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] equal to at least 10 percent of the annual gross tuition in the year the bond is secured. The bond shall not be for 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 Private Postsecondary Career Schools; Surety Indemnification. Amend RSA 188-G:3, IV to read as follows:
IV. For the purposes of this section the forms of indemnification other than a surety bond which may be furnished to the commission for licensure are the following:
(a) An irrevocable letter of credit, maintained for the licensing period as a minimum, issued by a financial institution authorized to do business in New Hampshire in an amount [to be determined by the commission with the commission designated as the beneficiary] equal to at least 10 percent of the annual gross tuition in the year the bond is secured; or
(b) A term deposit account held in the state treasury, payable to the commission, shall be held in trust for the benefit of students entitled thereto under this section. Said account shall be maintained for the licensing period as a minimum, in an amount [determined by the commission] equal to at least 10 percent of the annual gross tuition in the year the bond is secured. Any interest shall be paid annually to the appropriate school, unless the term deposit account is activated due to a school closing. Should the licensee for any reason, while not in default, discontinue operation, all moneys on deposit, including any interest, shall be released to the appropriate school subject to the approval of the commission.
3 Effective Date. This act shall take effect upon its passage.