Bill Text: NJ S1215 | 2018-2019 | Regular Session | Amended


Bill Title: Concerns for-profit post-secondary educational institutions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-06-17 - Referred to Senate Budget and Appropriations Committee [S1215 Detail]

Download: New_Jersey-2018-S1215-Amended.html

[First Reprint]

SENATE, No. 1215

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED JANUARY 25, 2018

 


 

Sponsored by:

Senator  M. TERESA RUIZ

District 29 (Essex)

 

 

 

 

SYNOPSIS

     Concerns for-profit post-secondary educational institutions.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Higher Education Committee on June 17, 2019, with amendments.

 


An Act concerning proprietary institutions and amending various parts of the statutory law.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 4 of P.L.1989, c.293 (C.34:15C-1) is amended to read as follows:

     4.    As used in this act:

     a.     "At-risk youth" means a teenage high school dropout or a teenage parent or other teenager whose pattern of behavior is likely to result in becoming a high school dropout.

     b.    "Commission" means the State Employment and Training Commission established pursuant to section 5 of this act.

     c.     "Federal job training funds" means any moneys expended pursuant to the [Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2801 et seq.)] "Workforce Innovation and Opportunity Act" (29 U.S.C. s.3101 et seq.) or any other federal law to obtain employment and training services or other employment-directed and workforce development programs and activities, including employment and training services as defined in section 1 of P.L.1992, c.48 (C.34:15B-35) and employment-directed and workforce development programs and activities as described in sections 2 and 4 of P.L.2004, c.39 (C.34:1A-1.3 and 34:1A-1.5).

     d.    "Labor demand occupation" means an occupation which:

     (1)   The Center for Occupational Employment Information has, pursuant to subsection d. of section 27 of P.L.2005, c.354 (C.34:1A-86), determined is or will be, on a regional basis, subject to a significant excess of demand over supply for trained workers, based on a comparison of the total need or anticipated need for trained workers with the total number being trained; or

     (2)   The Center for Occupational Employment Information, in conjunction with a Workforce Investment Board, has, pursuant to subsection d. of section 27 of P.L.2005, c.354 (C.34:1A-86), determined is or will be, in the region for which the board is responsible, subject to a significant excess of demand over supply for adequately trained workers, based on a comparison of total need or anticipated need for trained workers with the total number being trained.

     e.     "Owner" of a qualifying school means any person who acts as the proprietor of a qualifying school, including any individual who has an ownership interest of five percent or more in the qualifying school.

     f.     (1) "Qualifying school" means, except as provided in paragraph (2) of this subsection f., a government unit, person, association, firm, corporation, private organization, or any entity doing business or maintaining facilities within the State, whether operating on a for profit or not for profit basis, which:

     (a)   Offers or maintains a course of instruction or instructional program utilized to prepare individuals for future education or the workplace, including instruction in literacy or basic skills, or provides supplemental instruction in recognized occupational skills, pre-employment skills or literacy skills;

     (b)   Offers instruction by any method including, but not limited to, classroom, shop, laboratory experience, correspondence, Internet and other distance learning media, or any combination thereof;

     (c)   Offers instruction to the general public or in conjunction with New Jersey's workforce investment system; and

     (d)   Charges tuition or other fees or costs, or receives public funding for the delivery of any of the above types of instruction.

     (2)   "Qualifying school" does not mean:

     (a)   Colleges and universities licensed by the [Commission on] Secretary of Higher Education or other schools, institutions and entities, including public or private schools below college level, which are regulated and approved pursuant to any law of this State other than this 2005 amendatory and supplementary act, except that a proprietary institution is a qualifying school;

     (b)   Employers offering instruction to their employees directly or through a contract instructor, where there is no cost to the employee and no profit to the employer; or

     (c)   Schools offering instruction which is avocational, cultural or recreational in nature.

     (3)   "Proprietary institution" means a postsecondary private career school or educational institution that is operated for profit, whether or not the proprietary institution is licensed by the Secretary of Higher Education to offer academic degree programs or college credit-bearing courses.

     g.    "Service provider," "training provider" or "provider" means a provider of employment and training services including, but not limited to, a private or public school or institution of higher education, a business, a labor organization or a community-based organization.

     h.  "State job training funds" means any moneys expended from the Workforce Development Partnership Fund created pursuant to section 9 of P.L.1992, c.43 (C.34:15D-9), the Supplemental Workforce Fund for Basic Skills established pursuant to section 1 of P.L.2001, c.152 (C.34:15D-21) or any other source of State moneys to obtain employment and training services or other employment-directed and workforce development programs and activities, including employment and training services as defined in section 3 of P.L.1992, c.43 (C.34:15D-3) and employment-directed and workforce development programs and activities as described in sections 2 and 4 of P.L.2004, c.39 (C.34:1A-1.3 and 34:1A-1.5).

     i.     "Workforce Investment Board" means a workforce development board established pursuant to the [Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2801 et seq.)] "Workforce Innovation and Opportunity Act" (29 U.S.C. s.3101 et seq.).

     j.     "Workforce investment programs" means programs and services that are State or federally funded and designed to develop, improve, or maintain the productivity and earning power of workers and job seekers, including employment and training services, as defined in  section 1 of P.L.1992, c.48 (C.34:15B-35) and section 3 of P.L.1992, c.43 (C.34:15D-3), and including employment-directed and workforce development programs and activities as described in sections 2 and 4 of P.L.2004, c.39 (C.34:1A-1.3 and 34:1A-1.5).

     k.    "Workforce investment services" means core, intensive, and training services as defined by the "Workforce [Investment Act of 1998," Pub.L.105-220 (29 U.S.C. s.2801 et seq.)] Innovation and Opportunity Act" (29 U.S.C. s.3101 et seq.).

(cf: P.L.2005, c.354, s.6)

 

     2.    Section 26 of P.L.2005, c.354 (C.34:1A-85) is amended to read as follows:

     26.  As used in sections 26 through 29 of P.L.2005, c.354 (C.34:1A-85 through C.34:1A-88):

     "Career cluster" means any of the career clusters and related educational programs as defined in the Perkins Act and the federal Department of Education's career cluster taxonomy.

     "Center for Occupational Employment Information" or "center" means the Center for Occupational Employment Information established pursuant to section 27 of P.L.2005, c.354  (C.34:1A-86).

     "Career pathway" means any of the career pathways and related educational programs as defined in the Perkins Act and the federal Department of Education's career cluster taxonomy.

     "Federal job training funds" means any moneys expended pursuant to the [Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2801 et seq.)] "Workforce Innovation and Opportunity Act" (29 U.S.C. s.3101 et seq.) or any other federal law to obtain employment and training services or other employment-directed and workforce development programs and activities, including employment and training services as defined in section 1 of P.L.1992, c.48, (C.34:15B-35) and employment-directed and workforce development programs and activities as described in sections 2 and 4 of P.L.2004, c.39 (C.34:1A-1.3 and 34:1A-1.5).

     "Occupational license" means a license, registration or certificate which, when issued by an authorized entity of government or recognized industry, enables an individual to work within a recognized occupation in the State of New Jersey.

     "Perkins Act" means the Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998, Pub.L.105-332 (20 U.S.C. s.2301 et seq.).

     "Proprietary institution" means a postsecondary private career school or educational institution that is operated for profit, whether or not the proprietary institution is licensed by the Secretary of Higher Education to offer academic degree programs or college credit-bearing courses.

     "Qualifying agency" means any executive agency of State government, including, but not limited to, the Departments of Community Affairs, Education, Environmental Protection, Health and Senior Services, Human Services, Labor and Workforce Development, Law and Public Safety, Military and Veterans' Affairs and the [Commission on] Office of the Secretary of Higher Education.  A qualifying agency may include any additional agency of State government, which oversees the operation of, or collects or disseminates information from any qualifying school, or issues an occupational license.

     "Qualifying school" means, except as provided below, a government unit, person, association, firm, corporation, private organization, or any entity doing business or maintaining facilities within the State, whether operating for profit or not for profit which:

     (1)   Offers or maintains a course of instruction or instructional program utilized to prepare individuals for future education or the workplace, including instruction in literacy or basic skills, or provides supplemental instruction in recognized occupational skills, pre-employment skills or literacy skills;

     (2)   Offers instruction by any method including, but not limited to, classroom, shop, laboratory experience, correspondence, Internet and other distance learning media, or any combination thereof;

     (3)   Offers instruction to the general public or in conjunction with New Jersey's workforce investment system; or,

     (4)   Charges tuition or other fees or costs, or receives public funding for the delivery of any of the above types of instruction.

     "Qualifying school" shall not mean:

     (1)   Colleges and universities licensed by the [Commission on] Secretary of Higher Education or other schools, institutions and entities which are otherwise regulated and approved pursuant to any other law or rule making process of this State, except that a proprietary institution is a qualifying school;

     (2)   Employers offering instruction to their employees directly or through a contract instructor, where there is no cost to the employee and no profit to the employer; or

     (3)   Schools offering instruction for the purpose of self-enrichment, avocational, cultural, or recreational in nature.

     "Regional" means a geographic configuration used to aggregate information as designated by the Center for Occupational Employment Information.

     "Service provider," "training provider" or "provider" means a provider of employment and training services including but not limited to a private or public school or institution of higher education, a business, a labor organization or a community-based organization.

     "State Employment and Training Commission" or "commission" means the "State Employment and Training Commission" created pursuant to section 5 of P.L.1989, c.293 (C.34:15C-2).

     "State job training funds" means any moneys expended from the Workforce Development Partnership Fund created pursuant to section 9 of P.L.1992, c.43 (C.34:15D-9), the Supplemental Workforce Fund for Basic Skills established pursuant to section 1 of P.L.2001, c.152 (C.34:15D-21) or any other source of State moneys to obtain employment and training services or other employment-directed and workforce development programs and activities, including employment and training services as defined in section 3 of P.L.1992, c.43 (C.34:15D-3) and employment-directed and workforce development programs and activities as described in sections 2 and 4 of P.L.2004, c.39 (C.34:1A-1.3 and 34:1A-1.5).

     "Student outcome information" means information pertaining to individual enrollment, participation, and completion in any education or training program designed to provide workforce skills or provide supplemental education or training in a recognized occupation. This information shall include, but not be limited to, the participant's Social Security number, gender, date of birth, date of enrollment, any date of completion, date of termination, date of start in a job, date of application for a license, licensing examination result, date of issue of a license, any credential issued, and other information as specified by the commission or the center.  For any individual who does not have a Social Security number, the qualifying agency may substitute an alternate method of identification.  However, at the time of start into employment the alternate code shall be cross-referenced with the individual's valid Social Security number.

(cf: P.L.2005, c.354, s.26)

 

     3.    N.J.S.18A:71A-2 is amended to read as follows:

     18A:71A-2.  As used in this act, unless the context indicates another or different meaning, the following words shall have the following meanings:

     "Authority" means the Higher Education Student Assistance Authority established pursuant to this act, or any body, entity, commission, or department succeeding to the principal functions thereof or to whom the powers conferred upon the authority by this act shall be given by law.

     "Board" means the governing body of the authority appointed or elected pursuant to N.J.S.18A:71A-4 of this article.

     "Bond" means bonds, notes or other obligations of the authority issued pursuant to this act.

     ["Commission" means the New Jersey Commission on Higher Education.]

     "Eligible institution" means, unless otherwise defined by this act or by the authority by regulation, an institution having a participation agreement with the authority which is further defined in 20 U.S.C. s.1071 et seq., and which includes an institution of higher education, a proprietary institution of higher education, a postsecondary vocational institution and a vocational school, provided that the institution or school is licensed or approved by the appropriate agency or department and accredited or preaccredited by a nationally recognized accrediting association, and, provided further, in the case of a proprietary institution, the institution has a valid certificate of approval as a qualifying school issued pursuant to section 13 of P.L.2005, c.354 (c. 34:15C-10.1).

     "Executive director" means the chief executive and administrative officer of the authority.

     "Fund" means the Higher Education Student Assistance Fund.

     "Lender" or "eligible lender" includes the authority and any institution authorized to make loans under 20 U.S.C. s.1071 et seq. which has entered into a participation agreement with the authority.

     "Member" means an individual appointed or elected to the board of the authority or serving ex-officio on the board.

     "Secretary" means the Secretary of Higher Education.

     "State college" means any college or university created pursuant to chapter 64 of Title 18A of the New Jersey Statutes.

(cf: N.J.S.18A:71A-2)

 

     4.    N.J.S.18A:71B-1 is amended to read as follows:

     18A:71B-1.  Unless otherwise restricted by the authority by regulation, "eligible institution" for purposes of this chapter only means an institution of higher education in this State that is licensed by the [Commission on] Secretary of Higher Education and accredited or preaccredited by a nationally recognized accrediting association.  Eligible institution shall also include certain proprietary institutions but only for certain degree granting programs as approved by the [commission] secretary, and if the proprietary institution has a valid certificate of approval as a qualifying school issued pursuant to section 13 of P.L.2005, c.354 (C.34:15C-10.1).

(cf: N.J.S.18A:71B-1)

 

     5.    1[N.J.S.18A:7C-24] N.J.S.18A:71C-241 is amended to read as follows:

     18A:71C-24.  Unless restricted by the authority by regulations, "eligible institution" means, for the purposes of this article only, an institution of higher education licensed by the appropriate agency or department and accredited or preaccredited by a nationally recognized accrediting association.  Eligible institutions shall also include certain proprietary institutions but only for degree granting programs approved by the [commission] Secretary of Higher Education 1[or for other proprietary institutions as determined by the authority,]1 and only if the proprietary institution has a valid certificate of approval as a qualifying school issued pursuant to section 13 of P.L.2005, c.354 (C.34:15C-10.1)  1, or for other proprietary institutions as determined by the authority1.

(cf: N.J.S.18A:71C-24)

 

     6.    This act shall take effect immediately.  A proprietary institution which had not, prior to the effective date of this act, been required to obtain approval as a qualifying school because it was licensed by the Secretary of Higher Education shall be provided with a period of time in which to obtain approval as a qualifying school, which shall be determined by the Commissioner of Labor and Workforce Development and the Secretary of Higher Education, and shall not exceed one year.

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