Bill > SB400

This bill, aimed at strengthening oversight of educational institutions, prohibits unaccredited institutions from offering degrees, meaning schools not recognized by a U.S. Department of Education-approved accrediting agency will no longer be able to grant degrees. It also allows for the use of irrevocable letters of credit, which are financial guarantees from a bank, as an alternative to surety bonds, which are financial protection for students. The bill mandates the denial of applications to operate for institutions that have caused financial harm to students, have repeatedly violated regulations, or are associated with individuals who have done so. Furthermore, it clarifies that the grievance procedures for denials of authorization to operate do not apply to denials for offering additional courses, and it requires certain postsecondary institutions to provide academic records to the executive director, the state's chief administrator for these institutions, if they are at risk of closing. Finally, it modifies participation requirements for the Tuition Guaranty Trust Fund, a fund designed to protect students if an institution closes, allowing institutions to use letters of credit or surety bonds instead of paying fees, and it clarifies how institutions can participate and when fee collection might resume if the fund's balance drops.