2023 Connecticut General Statutes › Title 10a - State System of Higher Education › Chapter 185 - Administration of State System › Section 10a-22c. (Formerly Sec. 10-7c). - When certificate to operate shall not be authorized or may be denied. Requirements for issuance of certificate. Seizure of letter of credit. Notice of decision.

(a) No certificate to operate a private career school shall be authorized by the executive director, or the executive director's designee, if (1) any principal, officer, member or director of the applicant school has acted in a similar capacity for a private career school which has had its authorization revoked pursuant to section 10a-22f; (2) the applicant school does not have a net worth consisting of sufficient liquid assets or other evidence of fiscal soundness to operate for the period of time for which authorization is sought; (3) the applicant school or any of its agents engages in advertising, sales, collection, credit or other practices which are false, deceptive, misleading or unfair; (4) the applicant school has any policy which discourages or prohibits the filing of inquiries or complaints regarding the school's operation with the executive director; (5) the applicant school fails to satisfactorily meet the criteria set forth in subsection (g) of section 10a-22b, or, on and after the effective date of regulations adopted pursuant to section 10a-22k, the criteria set forth in such regulations; (6) a private career school that has previously closed fails to follow the procedures for school closure under section 10a-22m; or (7) the applicant school does not have a director located at the school and at each of its branches in this state.
(b) The executive director may deny a certificate of authorization if the person who owns or intends to operate a private career school has been convicted in this state, or any other state, of larceny in violation of section 53a-122 or 53a-123; identity theft in violation of section 53a-129b or 53a-129c; forgery in violation of section 53a-138 or 53a-139; or has a criminal record in this state, or any other state, that the executive director reasonably believes renders the person unsuitable to own and operate a private career school. A refusal of a certificate of authorization under this subsection shall be made in accordance with the provisions of sections 46a-79 to 46a-81, inclusive.
(c) No certificate to operate a private career school shall be issued by the executive director pursuant to section 10a-22d until such private career school seeking authorization files with the executive director certificates indicating that the buildings and premises for such school meet all applicable state and local fire and zoning requirements. Such certificates shall be attested to by the fire marshal and zoning enforcement officer within the municipality in which such school is located.
(d) No certificate to operate a new private career school shall be issued by the executive director pursuant to section 10a-22d until such private career school seeking authorization files with the executive director an irrevocable letter of credit issued by a bank with its main office or branch located within this state in the penal amount of forty thousand dollars guaranteeing the payments required of the school to the private career school student protection account in accordance with the provisions of section 10a-22u, except that, any letter of credit issued on and after the effective date of the regulations adopted pursuant to section 10a-22k, shall be in a penal amount specified in such regulations. The letter of credit shall be payable to the private career school student protection account in the event that such school fails to make payments to the account as provided in subsection (a) of section 10a-22u or in the event the state takes action to reimburse the account for a tuition refund paid to a student pursuant to the provisions of section 10a-22v, provided the amount of the letter of credit to be paid into the private career school student protection account shall not exceed the amounts owed to the account. In the event a private career school fails to close in accordance with the provisions of section 10a-22m, the executive director may seize the letter of credit, which shall be made payable to the private career school protection account.
(e) The executive director shall notify the applicant private career school, by certified mail, return receipt requested of the decision to grant or deny a certificate of authorization not later than sixty days after receiving the written report of the evaluation team appointed pursuant to subsection (e) of section 10a-22b.
(P.A. 79-380, S. 3; P.A. 83-150, S. 1, 4; 83-194, S. 1, 2; 83-501, S. 3, 12; P.A. 93-294, S. 3, 17; P.A. 05-60, S. 1; P.A. 06-150, S. 3; P.A. 09-99, S. 2; P.A. 12-156, S. 24; P.A. 16-155, S. 6; P.A. 22-123, S. 13.)
History: P.A. 83-194 added Subsec. (c) requiring new private occupational schools to file an irrevocable letter of credit in the penal amount of $10,000 (Revisor's note: The name “Default Assurance Fund” was changed editorially by the Revisors to “Private Occupational School Student Protection Fund” by authority of P.A. 83-150); P.A. 83-501 amended Subsec. (a) adding provision that authorization to operate will be withheld if school has any policy which discourages or prohibits the filing of inquiries or complaints regarding the school's operation; P.A. 93-294 made changes necessitated by the transfer of authority for the authorization of the schools from the department of education to the department of higher education and amended Subsec. (c) to change the provision for the excusing of the letter of credit based on five years from the date of the letter of credit to five years from the date of initial approval and to remove obsolete language, effective July 1, 1993; Sec. 10-7c transferred to Sec. 10a-22c in 1995; (Revisor's note: In 1997 references in Subsec. (c) to the “Private Occupational School Student Protection Fund” were replaced editorially by the Revisors with “private occupational school protection account” to conform section with Sec. 10a-22u); P.A. 05-60 amended Subsec. (c) to raise penal amount from $10,000 to $20,000 and to increase the dollar amount and time period required to excuse the letter of credit from $10,000 to $20,000 and from five to eight years, respectively, effective July 1, 2005; P.A. 06-150 amended Subsec. (a) to include “member” in Subdiv. (1) and to add Subdivs. (5) and (6) re criteria for denial of certificate of authorization, added new Subsec. (b) re criteria for denial of certificate of authority based on criminal record, redesignated existing Subsec. (b) as Subsec. (c), redesignated existing Subsec. (c) as Subsec. (d) and amended subsection to eliminate provision re release of letter of credit upon payment by school of $20,000 into private occupational school student protection account and to require verification of evidence of fiscal soundness prior to release, added Subsec. (e) re notification of decision to grant or deny certificate of authority and made conforming and technical changes throughout section; P.A. 09-99 amended Subsec. (a) by adding Subdiv. (7) re director located at school and each branch, amended Subsec. (d) by requiring letter of credit to be issued by an in-state bank, increasing amount of the letter of credit from $20,000 to $40,000 and extending from 8 to 12 the number of years after which the letter of credit is released, and made conforming changes, effective July 1, 2009; P.A. 12-156 replaced references to commissioner with references to executive director, effective June 15, 2012; P.A. 16-155 amended Subsec. (d) by adding provision re seizure of letter of credit when school fails to close in accordance with statutory provisions, effective July 1, 2016; P.A. 22-123 amended Subsec. (a) to allow criteria for application approval to be set forth in regulations, amended Subsec. (d) to allow the penal amount of a letter of credit to be specified in regulations and to remove the requirement for release of a letter of credit after 12 years, made a conforming change in Subsec. (e) and changed “private occupational school” to “private career school” throughout, effective July 1, 2022.