Alaska Administrative Code › Title 20 - Miscellaneous Boards and Commissions › Chapter 17 - Regulation of Postsecondary Educational Institutions › Article 1 - Authorization to Operate and Agent's Permits › 20 AAC 17.045 - Bonding requirements

Current through May 31, 2024
(a) Except as provided in (e) of this section,
				a postsecondary educational institution and an agent shall post a surety bond, a
				cash deposit, or commission-approved negotiable securities as required by
				AS
				14.48.100 and in an amount determined under
				this section. The surety bond, cash deposit, or negotiable securities must be
				executed solely in favor of and filed with the commission. The commission may
				increase or decrease the bonding requirement to conform to the level set in (b)
				or (h) of this section based on updated financial or other information received
				during a renewal period.
(b) Except
				as provided in (h) of this section, the amount of the required surety bond, cash
				deposit, or commission-approved negotiable securities is based, for an existing
				institution, upon the highest amount of revenue received by the institution for
				all students enrolled in all programs during an academic or a vocational program
				period, term, or semester in the previous academic year; or for new institutions
				or institutions that have added or deleted programs, the highest amount of
				revenue the commission staff projects will be earned by the institution for all
				students enrolled in all programs during an academic or a vocational program
				period, term, or semester in the upcoming academic year. The amount of the bond
				is determined as follows:
POSTSECONDARY EDUCATIONAL INSTITUTIONS
Institution Revenue            Bond Amount(Pay-As-You-Go
                                Schools)                    Bond Amount(Other)

                                                  

Up to $25,000                        $ 3,750                $  5,000

$25,001 - $50,000                    $ 7,500                $ 10,000

$50,001 - $100,000                   $ 15,000               $ 20,000

$100,001 - $150,000                  $ 22,500               $ 30,000

$150,001 - $200,000                  $ 30,000               $ 40,000

$200,001 - $250,000                  $ 37,500               $ 50,000

$250,001 - $300,000                  $ 45,000               $ 60,000

$300,001 - $400,000                  $ 60,000               $ 80,000

$400,001 - $500,000                  $ 75,000               $ 100,000

$500,001 - $750,000                  $ 112,500              $ 150,000

$750,001 - $1,000,000                $ 150,000              $ 200,000

$1,000,001 and above                 $ 200,000              $ 250,000
AGENTS
Institution Revenue                       Bond Amount 

    Up to $ 25,000                             $ 2,500

    $ 25,001 - $50,000                         $ 5,000

    $ 50,001 - $100,000                        $10,000

    $100,001 - $150,000                        $15,000

    $150,001 - $200,000                        $20,000

    $200,001 - $250,000                        $25,000

    $250,001 - $300,000                        $30,000

    $300,001 - $350,000                        $35,000

    $350,001 - $400,000                        $40,000

    $400,001 - $450,000                        $45,000

    $450,001 and above                         $50,000
(c) For the purpose
				of determining the amount of a bond required by the commission,
(1) institutions must include revenues received
				for all students, including those enrolled in programs otherwise exempt from this
				chapter;
(2) a flight school must
				include revenues for its private pilot, commercial pilot, and ratings programs;
				and
(3) the calculation of
				institution revenues must include all revenues received from all funding sources
				for all commodities and services provided by the institution as part of its
				provision of postsecondary education, including tuition and fees, books and
				materials, and room and board.