HB 155 - AS INTRODUCED
2023 SESSION
23-0568
04/08
HOUSE BILL 155
SPONSORS: Rep. Moffett, Merr. 4
COMMITTEE: Education
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ANALYSIS
This bill changes the membership of the higher education commission and amends the minimum surety bond requirements for private postsecondary career schools.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0568
04/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Education; Division of Educator Support and Higher Education. Amend RSA 21-N:8-a, II to read as follows:
II.(a) There is hereby established a higher education commission which shall consist of the following members:
(1) The president of the university of New Hampshire, the president of Keene state college and the president of Plymouth state university.
(2) Two presidents from institutions within the community college system of New Hampshire, to be chosen by the board of trustees of the community college system.
(3) The chancellor of the university system of New Hampshire.
(4) The chancellor of the community college system of New Hampshire, or designee.
(5) The commissioner of the department of education, or designee.
(6) Six representatives of the private 4-year colleges in New Hampshire appointed by the governor and council on recommendation by the New Hampshire College and University Council, with no more than one representative from any one college.
(7) [One member to be appointed by the governor and council as a representative from a for-profit college or university not a member of the New Hampshire College and University Council.
(8)] Four members to be appointed by the governor and council who shall be residents of the state and of the lay public, having no official connection with any college, university, or private postsecondary career school as an employee, trustee, or member on a board of directors.
[(9)] (8) Two members to be appointed by the governor and council, who shall be residents of the state and shall represent private postsecondary career schools.
(b) The terms of appointed members, except as otherwise indicated above, shall be for 5 years and until a successor is appointed and qualified. Vacancies shall be filled for the unexpired term.
(c) Commission appointments shall be made in such a way as to preserve broad and equitable representation on the basis of gender, ethnicity, and socioeconomic groups in the state.
(d) The members of the commission shall serve without compensation, but may be reimbursed for actual travel and other expenses incurred in the performance of their duties on the commission from funds appropriated to the department of education specifically for this purpose.
(e) The commission shall:
(1) Regulate institutions of higher education pursuant to RSA 292:8-b through RSA 292:8-kk. The commission may accept accreditation by a recognized accrediting association in place of its own independent evaluation.
(2) Regulate private postsecondary career schools pursuant to RSA 188-G.
(3) Administer financial aid programs as provided in state and federal law for students attending higher education institutions, except as otherwise provided by law.
(4) [Apply for, accept, and expend state, federal, or other grants.
(5)] Oversee the functions of the Veterans Education Services as authorized by Congress.
[(6)] (5) Establish and collect reasonable annual fees related to the performance of statutory duties.
[(7)] (6) Enter into cooperative interstate or international agreements to further operating efficiencies, student access, and educational opportunities.
[(8)] (7) Be the designee for the integrated postsecondary education data system as developed by the United States Department of Education.
[(9)] (8) Adopt rules, pursuant to RSA 541-A relative to:
(A) Organization and operation of the higher education commission established in this section.
(B) Approval and regulation of institutions of higher education pursuant to RSA 292:8-b through RSA 292:8-kk.
(C) Approval and regulation of private postsecondary career schools pursuant to RSA 188-G.
(D) Administration of financial aid programs for institutions of higher education, except as otherwise provided by law.
(E) Establishment and collection of reasonable fees for functions performed by the division of higher education and the higher education commission as required in this section.
[(10)] (9) Assume other responsibilities as may be provided in state or federal law.
2 Private Postsecondary Career Schools; Surety Indemnification. Amend RSA 188-G:3 to read as follows:
188-G:3 Surety Indemnification. Before a license is issued or renewed, a school shall furnish surety indemnification as required in this section.
I. A surety bond shall be provided by the school in an amount prescribed in this section. The obligation of the bond is that the school, its officers, agents, and employees shall faithfully perform the terms and conditions of contracts for tuition and other instructional fees entered into between the school and entity enrolling as students. The bond shall be issued by a company authorized to do business in the state of New Hampshire. The bond shall be issued in the name of the commission, and is to be used only for payment of a refund of tuition and instructional fees due to a student or potential student, and the expense of investigating and processing the claims.
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 for the current academic year. 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.
III. The bond company may not be relieved of liability on the bond unless it gives the school and the commission 90 days written notice of the company's intent to cancel the bond. If at any time the company that issued the bond cancels or discontinues the coverage, the school's license is revoked as a matter of law on the effective date of the cancellation or discontinuance of bond coverage, unless a replacement bond is obtained and provided to the commission.
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 for the current academic year; 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 for the current academic year. 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 60 days after its passage.