Bill > S3710

Introduced Session

This bill requires each institution of higher education and degree-granting proprietary institution that is eligible to receive student financial aid under a State grant or scholarship program that contracts with an online program management company (OPM) to submit an annual expenditure report to the Secretary of Higher Education concerning the spending activities of the company. To assist in the preparation of this report, the bill requires the OPM to submit an annual report to the institution detailing all expenditures made on behalf of the institution during the prior academic year. In addition to any other information required by the Secretary of Higher Education, this report would be required to specify the amounts expended by the OPM on each of the following categories of expenditure: (1) advertising and marketing services; (2) recruiting, admissions, and financial services; (3) instruction services; (4) student support services; (5) technology resources and support services; and (6) curriculum development materials. Under the bill, the annual expenditure report submitted by the institution to the secretary would be required to include, at a minimum, the following information: (1) the information provided in the OPM's annual report; (2) the total payments made by the institution to the OPM during each semester of the prior academic year; (3) the number of students who received State financial assistance during the prior academic year and were enrolled in each academic program for which the OPM provided services; and (4) the amount of State operating aid received by the institution on a per-student basis during the prior academic year, and the per-student amount provided to the OPM. The bill also requires the Secretary of Higher Education to publish each annual expenditure report on the Internet website of the Office of the Secretary of Higher Education. Under this bill, an institution of higher education and proprietary degree-granting institution eligible to receive student financial aid under a State student grant or scholarship program is required to submit a copy of any contract between the institution and an online program management company to the Secretary of Higher Education for review within 60 days following: (1) the execution of a new contract; (2) any substantive change in contractual terms; (3) the renewal of a contract; and (4) for any contract currently in effect, the effective date of this bill.

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Sandra Cunningham (D)*,  Vin Gopal (D)*, 

Reported from Senate Committee with Amendments, 2nd Reading (on 06/15/2021)

Official Document