Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Requires degree-granting proprietary institutions to expend at least 70 percent of tuition and fee revenues on educational instruction and student support services.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning expenditures of degree-granting proprietary institutions and supplementing Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A degree-granting proprietary institution shall expend no less than 70 percent of its annual tuition and fee revenues on educational instruction and student support services.
b. A degree-granting proprietary institution shall annually report by July 1st to the Secretary of Higher Education the total amount of tuition and student fee revenue collected by the institution in the preceding academic year and the dollar and percentage amount of total tuition and student fee revenue expended in the same year on each of the following:
(1) educational instruction;
(2) student support services; and
(3) advertising, marketing, and recruiting.
c. Any executive or administrator of a degree-granting proprietary institution with an investment interest in the institution shall disclose that interest to the secretary.
d. (1) If a degree-granting proprietary institution expends less than 70 percent of its annual tuition and fee revenues on educational instruction and student support services as required in subsection a. of this section, the secretary shall notify the institution and inform the institution that the secretary may take action to suspend or revoke the institution’s license to award academic degrees if the institution continues to fail to meet this requirement.
(2) After an institution has been notified by the secretary, the institution shall inform current and prospective students of the institution that the institution’s license may be suspended or revoked for failing to expend a minimum level of tuition and student fees on educational instruction and student support services.
(3) If the institution does not meet the provisions of subsection a. of this action prior to the beginning of the academic year next following one year after the date of the notice to the institution, the secretary shall suspend or revoke the institution's license to award academic degrees.
e. As used in this section, “student support services” means direct services provided to students to support their experience and academic outcomes and which may include, but not be limited to, academic support, counseling, and tutoring services, career services, student life activities and clubs, health services, and financial aid services, and shall not include advertising, marketing, and recruiting.
2. This act shall take effect immediately.
STATEMENT
This bill requires a degree-granting proprietary institution to expend no less than 70 percent of its annual tuition and fee revenues on educational instruction and student support services.
Under the bill, a degree-granting proprietary institution is to annually report to the Secretary of Higher Education the dollar and percentage amount of total tuition and student fees spent on each of the following:
· educational instruction;
· student support services; and
· advertising, marketing, and recruiting.
The bill requires any executive or administrator of a degree-granting proprietary institution with an investment interest in the institution to disclose that interest to the secretary.
Under the bill, if a degree-granting proprietary institution expends less that 70 percent of its annual tuition and fee revenues on educational instruction and student support services, the secretary is to notify the institution and inform the institution that the secretary may take action to suspend or revoke the institution’s license to award academic degrees if the institution continues to fail to meet the bill’s provisions. After an institution has been notified by the secretary, the institution is to inform current and prospective students of the institution that the institution’s license may be suspended or revoked for failing to expend a minimum level of tuition and fees on educational instruction and student support services. If the institution does not meet the minimum expending level prior to the beginning of the academic year next following one year after the date of the notice to the institution, the secretary is to suspend or revoke the institution's license to award academic degrees.