Bill > A1807

Introduced Session

This bill provides students enrolled in certain career programs with consumer protections from fraudulent and misleading claims and practices. The bill's provisions apply to nonpublic postsecondary educational institutions that offer one or more career programs of study and private career schools. The bill does not apply to public or independent institutions of higher education. Under the provisions of this bill, it would be an unlawful practice under the consumer fraud act for certain schools offering career programs of study to:· initiate communication with a prospective student prior to enrollment on more than two occasions in a seven day period;· engage in certain misleading or deceptive advertising practices;· enroll a student in a program when the school knows, or reasonably should know, that the student will not meet the requirements for employment in the industry which the school claims to prepare students;· recommend specific lending institutions to prospective or current students while failing to disclose certain relationships that benefit the institution or school;· discourage prospective or current students from choosing a lender solely on the basis of that lending institution not being on the school's preferred lender list;· permit or authorize a lending institution to identify the lending institution's employees or agents as employees or agents of the school;· represent or imply in advertising or otherwise that persons employed in a given occupation will earn a stated salary or income or that persons completing a program will earn the stated salary or income; or· make any false or misleading statement regarding school qualifications, staff, or assets, costs or financial aid awards, student outcomes, industry opportunities, or other specified areas relating to the program experience, prospects, or obligations of students. The bill further provides that it would be an unlawful practice under the consumer fraud act for a covered school to fail to post on its website, and to fail to disclose to prospective students at least 72 hours prior to entering into an enrollment agreement for a program, on a form to be signed by a representative of the school and by the student, the following information:· the program's cost of attendance;· the average length of time to complete the program;· completion rates of the previous three cohorts of students;· the percentage of program completers from the last three years who have secured full-time employment in a position for which the program represents to provide education or training; and · the requirements for certification, employment, or licensure in the occupation for which the program represents to provide education or training.The bill requires a covered school to disclose this information at least annually to each student enrolled at the school, on a form to be signed by a representative of the school and the student. Finally, the bill provides that it would be an unlawful practice under the consumer fraud act for a covered school to compensate an employee or contractor involved in the recruitment, enrollment, admissions, or sales of educational materials to students on the basis of commission, bonuses, and other direct forms of compensation based on success in securing enrollments. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. The bill directs the Attorney General, in consultation with the Secretary of Higher Education and the Commissioner of Labor and Workforce Development to develop and adopt rules and regulations necessary to implement the bill's provisions.

AI Summary

Committee Categories

Linda Carter (D)*,  Verlina Reynolds-Jackson (D)*, 

Introduced, Referred to Assembly Higher Education Committee (on 01/09/2024)

Official Document