New Jersey A 3744: Establishes tuition reimbursement program for students enrolled in certain private postsecondary educational schools.

Bill Text

ASSEMBLY, No. 3744  
 
STATE OF NEW JERSEY 
220th LEGISLATURE 
   
INTRODUCED MAY 2, 2022 
 
 
Sponsored by: 
Assemblyman  WAYNE P. DEANGELO 
District 14 (Mercer and Middlesex) 
 
 
 
 
SYNOPSIS 
 Establishes  tuition  reimbursement  program  for  students  enrolled  in  certain 
private postsecondary educational schools.  
 
CURRENT VERSION OF TEXT  
 As introduced. 
    

 
A3744 DEANGELO 
2 
 
 
AN ACT concerning certain  private  postsecondary institutions  and 1 
supplementing Title 34 of the Revised Statutes. 2 
 3 
 BE IT ENACTED by the Senate and General Assembly of the State 4 
of New Jersey: 5 
 6 
 1. A  private  career  school  shall  obtain  a  performance  bond 7 
payable to the Commissioner of Labor and Workforce Development 8 
in an amount to be determined by the commissioner.  The proceeds 9 
of the performance bond may be used to pay approved refunds or to 10 
reimburse  the  fund  established  pursuant  to  section  2  of  this  act  for 11 
refunds or other payments made to or on behalf of a student. 12 
 13 
 2. A  restricted,  nonlapsing,  revolving  Private  Career  School 14 
Student Tuition Protection Fund, to be managed and invested by the 15 
State  Treasurer,  is  hereby  established  in  the  Department  of  Labor 16 
and  Workforce  Development.    The  purpose  of  the  fund  shall  be  to 17 
provide for a system of equitable refunds in the event of the closure 18 
of  a  private  career  school.  The  State  Treasurer  shall  have  full 19 
statutory powers of investment of the fund, except that any interest, 20 
income, and dividends derived from the investment of the fund shall 21 
be credited to the fund.  The operating expenses of the fund shall be 22 
paid out of the monies in the fund. 23 
 24 
 3. a.    A  private  career  school  shall  pay  to  the  State  Treasurer, 25 
to  be  deposited  into  the  Private  Career  School  Tuition  Protection 26 
Fund,  an  amount set  by  the  commissioner  for  each  student  enrolled 27 
in that school, in the manner set forth below.  This charge shall not 28 
be considered a part of tuition. 29 
 (1) Within  90  days  of the  effective  date  of  this  act,  a  private 30 
career school shall make a payment for each student enrolled at that 31 
school as of the effective date of this act.  32 
 (2) For   newly-enrolled   students   who   start   a   program   of 33 
instruction  after  the  effective  date  of  this  act,  payments  shall  be 34 
made on a quarterly basis, on the dates of January 30th, April 30th, 35 
July  30th,  or  October  30th,  for  students  enrolled  within  a  three 36 
month   period   ending   the   month   immediately   preceding   the 37 
applicable payment dates.  38 
 b. When  the balance  in  the  fund  reaches  $2,500,000,  and  upon 39 
notification  from  the  commissioner,  private  career  schools  shall 40 
cease contributing to the fund.  If the balance in the fund is reduced 41 
to  an  amount  less  than  $2,000,000  because  of  a  school  or  program 42 
closure,  the  commissioner  shall  notify  all  private  career  schools, 43 
and they shall resume payment for all newly-enrolled students after 44 
the  notification  date,  according  to  the  schedule  in  paragraph  (2)  of 45 
subsection   a.   of   this   section   until   the   balance   in   the   fund   is 46 
recapitalized at the amount of $2,500,000. 47 

 
A3744 DEANGELO 
3 
 
 
 c. Notwithstanding   the   provisions   of   subsection   b.   of   this 1 
section  to  the  contrary,  a  private  career  school  receiving  an  initial 2 
certificate  of  approval  pursuant  to  section  13  of  P.L.2005,  c.354 3 
(C.34:15C-10.1)  after  the  effective  date  of  this  act,  shall  make  the 4 
payments as required by this section for a period of four years.  5 
 d. As used in this act:  6 
 “Commissioner”  means  the  Commissioner  of  Labor  and 7 
Workforce Development. 8 
 “Department”  means  the  Department  of  Labor  and  Workforce 9 
Development. 10 
 “Private career school” or “school” means a qualifying school as 11 
defined in section 4 of P.L.1989, c.293 (C.34:15C-1). 12 
 13 
 4. Whenever a private career school ceases to operate, becomes 14 
insolvent,   or   otherwise   ceases all   instructional   activity,   the 15 
following shall apply: 16 
 a. Any student enrolled in the school who has paid tuition for a 17 
course or unit of instruction at that school, but is unable to complete 18 
the  course  or  unit  of  instruction  because  of  the  insolvency  or 19 
cessation  of  operation  of  the  school,  or  was  enrolled  in  the  school 20 
within  90  days  of  the  insolvency  or  cessation  of  operation  of  the 21 
school  and  is  owed  a  tuition  refund  from  the  school,  is  eligible  to 22 
apply to the department for a refund of any tuition which the school 23 
has not previously refunded to the student.  The commissioner shall 24 
seek  to  notify  all  students  eligible  for  a  refund.