Section 1A Submission of financial information by school; certification of financial qualification prior to licensure
Section 1A. Any person desiring to operate a correspondence school within the commonwealth shall submit to the state auditor on a form supplied by him, such financial information as he may require, including but not limited to ownership and organization of the school, the financial condition of the school, and the form and content of the student enrollment agreement to be used by the school.
If, after investigation, the state auditor finds the applicant is financially qualified to operate a correspondence school, he shall certify to the commissioner of education the financial eligibility of the applicant to apply for a license to operate a correspondence school. The state auditor shall establish the eligibility of the applicant annually. Renewal of such license for any succeeding two year period shall be issued only after such an investigation has been conducted and certification of the financial eligibility of the applicant for renewal has been made by the state auditor, and every such applicant for renewal shall submit to the said state auditor the financial information required under this section. Financial statements shall be submitted to the state auditor thirty days prior to the annual review.
Notwithstanding the provisions of section twelve of chapter eleven pertaining to maintenance of the records in the department of the state auditor, such financial information submitted to the state auditor shall be retained in the office of the state auditor and shall not be classified as public records.
If the state auditor finds that the applicant is not financially responsible and qualified to operate a correspondence school, he shall refuse to approve the application. The state auditor shall state his reasons therefor in writing.
Any person desiring to operate a correspondence school within the commonwealth whose application has been granted initial approval by the state auditor pursuant to this section shall submit to the commissioner, on a form supplied by him, the information required under the provisions of section two.