Disclosure of claim limitation clause in enrollment contracts by for-profit institutions of higher education.

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(a) On and after January 1, 2020, any for-profit institution of higher education licensed to operate in the state that requires any student, as a condition of enrollment, to enter into an agreement that (1) limits participation in a class action against such institution, (2) limits any claim the student may have against such institution or the damages for such claim, or (3) requires the student to assert any claim against such institution in a forum that is less convenient, more costly or more dilatory for the resolution of a dispute than a judicial forum established in the state where the student may otherwise properly bring a claim, shall include in its application to the Office of Higher Education for initial or renewed institutional licensure or accreditation pursuant to section 10a-34, a statement (A) disclosing the number of claims made against the institution, including claims made against a parent organization or subsidiary of the institution, by a student currently or formerly enrolled at the institution, (B) a description of the nature of the rights asserted, and (C) the status of such claims. The institution shall submit additional details regarding such claims as the executive director of the Office of Higher Education may require.

(b) The executive director of the Office of Higher Education may deny the application for initial or renewed license or accreditation of a for-profit institution of higher education or consider a for-profit institution of higher education ineligible to receive any public funds, including, but not limited to, federal funds administered by the office pursuant to section 10a-45 if (1) such institution fails to include the statement required under subsection (a) of this section in its application, or (2) upon review of such statement, the executive director determines that the public policy of protecting the interests of students in the state requires such denial. Notwithstanding the provisions of subsection (i) of section 10a-34, the executive director may deny the accreditation of an institution of higher education, for the purposes of this subsection, by refusing to accept or withdrawing any previous acceptance of regional accreditation made under subsection (i) of said section.

(c) The executive director of the Office of Higher Education shall have the authority granted under sections 10a-34a, 10a-34b and 10a-34e to investigate and enforce the provisions of subsections (a) and (b) of this section.

(P.A. 19-87, S. 1.)

History: P.A. 19-87 effective July 1, 2019.


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