Sec. 10a-22u. (Formerly Sec. 10-14i). Establishment of private occupational school student protection account. Treatment of overpayments and underpayments.
Sec. 10a-22u. (Formerly Sec. 10-14i). Establishment of private occupational
school student protection account. Treatment of overpayments and underpayments. (a) There shall be an account to be known as the private occupational school
student protection account within the General Fund. Each private occupational school
authorized in accordance with the provisions of sections 10a-22a to 10a-22o, inclusive,
shall pay to the State Treasurer an amount equal to one-half of one per cent of the tuition
received by such school per calendar quarter exclusive of any refunds paid, except that
correspondence and home study schools authorized in accordance with the provisions
of sections 10a-22a to 10a-22o, inclusive, shall contribute to said account only for Connecticut residents enrolled in such schools. Payments shall be made by January thirtieth,
April thirtieth, July thirtieth and October thirtieth in each year for tuition received during
the three months next preceding the month of payment. Said account shall be used for
the purposes of section 10a-22v. Any interest, income and dividends derived from the
investment of the account shall be credited to the account. All direct expenses for the
maintenance of the account may be charged to the account upon the order of the State
Comptroller. The Commissioner of Higher Education may assess the account (1) for
all direct expenses incurred in the implementation of the purposes of this section which
are in excess of the normal expenditures of the Department of Higher Education for
accounting, auditing and clerical services, and (2) for the fiscal years ending June 30,
2000, and June 30, 2001, in an amount not to exceed one hundred seventy thousand
dollars in each of such fiscal years for personnel and administrative expenses for the
purposes of sections 10a-22a to 10a-22o, inclusive, provided such amount does not
exceed the annual interest accrual, which shall be transferred to the appropriation of the
Department of Higher Education for personal services and other expenses for positions
and responsibilities relating to said sections, provided the department has expended all
federal funds that may be available for personnel and administrative expenses for the
purposes of said sections. After disbursements are made pursuant to subdivisions (1)
and (2) of this subsection, if the resources of the private occupational school student
protection account exceed two million five hundred thousand dollars, no additional
school assessments shall be made.
(b) Payments required pursuant to subsection (a) of this section shall be a condition
of doing business in the state and failure to make any such payment within thirty days
following the date on which it is due shall result in the loss of authorization under section
10a-22f. Such authorization shall not be issued or renewed if there exists a failure to
make any such payment in excess of thirty days following the date on which it is due.
(c) If an audit conducted by the Department of Higher Education determines that
a school has paid into the private occupational school student protection account an
amount less than was required, the school shall pay said amount plus a penalty of ten
per cent of the amount required to the State Treasurer within thirty days of receipt of
notice from the commissioner or his designee of the amount of the underpayment and
penalty.
(d) If an audit conducted by the Department of Higher Education determines that
a school has paid into the private occupational school student protection account an
amount more than was required, subsequent payment or payments by the school shall
be appropriately credited until such credited payment or payments equal the amount of
the overpayment.
(P.A. 77-440, S. 1; P.A. 78-158, S. 1, 4; P.A. 79-380, S. 13; P.A. 83-150, S. 1, 4; P.A. 84-176, S. 3, 5; P.A. 93-294, S.
14, 17; P.A. 94-95, S. 8; P.A. 95-226, S. 20, 30; P.A. 97-285, S. 1, 2; P.A. 99-192, S. 1, 2; May 9 Sp. Sess. P.A. 02-1, S.
128; P.A. 06-150, S. 17.)
History: P.A. 78-158 required payment to treasurer of one-half of 1%, rather than 1%, of tuition received, rather
than of tuition paid by newly enrolled students, excepted refunds and made special provision for payments relative to
correspondence and home study schools, revised payment schedule slightly and allowed state board to assess fund for
expenses incurred in implementation of section which exceed normal expenses for accounting, auditing and clerical services
in Subsec. (a); P.A. 79-380 replaced references to repealed Sec. 10-8 with references to Secs. 10-7a to 10-7l and substituted
"authorized" and "authorization" for "licensed" and "licensure"; P.A. 83-150 changed name from "Proprietary School
Default Assurance Fund" to "Private Occupational School Student Protection Fund", deleted obsolete reference to payments
made in 1978 and authorized commissioner of education and department of education rather than state board of education
to administer fund; P.A. 84-176 added Subsecs. (c) and (d) re treatment of overpayments and underpayments to the fund;
P.A. 93-294 made changes necessitated by the transfer of authority for the authorization of schools from the department
of education to the department of higher education, added Subsec. (a)(2) re the fiscal years ending June 30, 1994 and June
30, 1995, and made technical changes, effective July 1, 1993; Sec. 10-14i transferred to Sec. 10a-22u in 1995; P.A. 94-95 changed name of fund from "Private Occupational School Student Protection Fund" to "private occupational school
student protection account"; P.A. 95-226 extended Subdiv. (2) to the fiscal years ending June 30, 1996, and June 30, 1997,
increased the limit for personnel and administrative services from $100,000 to $118,000 and made a technical change,
effective July 1, 1995; (Revisor's note: In 1997 references in Subsecs. (c) and (d) to "Private Occupational School Student
Protection Fund" were changed editorially by the Revisors to "private occupational school student protection account" to
conform said Subsecs. with Subsec. (a) as amended by P.A. 94-95); P.A. 97-285 amended Subdiv. (2) of Subsec. (a)(2)
to substitute the fiscal years ending in 1998 and 1999 for the fiscal years ending in 1996 and 1997, to increase the amount
from $118,000 to $150,000, to set the limit of the annual interest accrual and to specify that the amount transferred be used
for positions and responsibilities relating to Secs. 10a-22a to 10a-22k, inclusive, effective July 1, 1997; P.A. 99-192
amended Subsec. (a)(2) to change the dates to the fiscal years ending June 30, 2000, and June 30, 2001, and to increase
the amount from $150,000 to $170,000, effective July 1, 1999; May 9 Sp. Sess. P.A. 02-1 amended Subsec. (a) to add a
provision that no additional school assessments shall be made if the resources of the protection account exceed $2,500,000,
effective July 1, 2002; P.A. 06-150 amended Subsec. (a) to change internal section references.