On February 27, Idaho Governor Otter received legislation that, if signed into law, “will revise the current criteria and process for school surety bonding and student tuition recovery funding. These changes are necessary to ensure against loss of tuition previously collected, so that appropriate student reimbursement can be made in the event of a school closure or default. The new language will be easier for students and school administrators to understand and for the state staff to manage and implement. No change to the current staffing level or appropriated funding will be required.”
Specifically, the legislation would amend existing law to increase the State Board of Education's discretion in determining annual registration fees and grounds for submitting demand upon Proprietary Schools' sureties. "Postsecondary Educational Institutions" (schools offering course of studies leading to degrees (including degree-granting private career colleges)) and "Proprietary Schools" (schools providing courses of study, but not degrees) annual registration fees will be determined entirely by Board rule, rather than previous criteria which provided that such fees would not exceed $5,000.
The proposed law also adjusts the existing law’s surety bond requirement to provide that the Board may submit a demand upon Proprietary Schools' bonds for any "failure by such proprietary school to satisfy its obligations pursuant to the terms and conditions of any contract for tuition or other instructional fees," eliminating the former limitation that such bonds would only be collected upon for "fraud or misrepresentation."
The legislation brings further changes to the manner in which Proprietary Schools may solicit students. Agents of Proprietary Schools will be required to obtain "certificates of identification" issued by the school the agent works for, rather than the former "permits" issued by Board. Proprietary Schools must annually review agent applications and reissue certificates of identification only where appropriate. If an agent will have unsupervised contact with potential students who are minors, before issuing a certificate of identification the Proprietary School must perform a complete criminal history check on that agent, which will be valid for five years. Proprietary Schools will be required to maintain records of application, issuance, denial , termination, suspension and revocation of agents' certificates of identification for five years. In addition, as a new component of the annual registration process, Proprietary Schools must release to the Board the names and results of criminal history checks for each agent to whom the school has issued a certificate of identification.
For further review of these and other changes introduced by the new legislation, click here.