The proposed bill, known as the New Hampshire Predatory College Degree Consumer Protection Act, aims to establish legal actions against educational institutions that charge excessive tuition rates. It introduces new criminal penalties and civil rights of action for institutions that charge tuition rates deemed unreasonable, defined as exorbitant and disproportionate to the services provided. Specifically, the bill amends RSA 358-A:2 by adding a new paragraph that prohibits charging or soliciting unreasonable tuition rates, and it establishes a new section (RSA 358-A:10-b) that outlines the criteria for determining excessive tuition based on the average earnings of graduates. If the tuition exceeds a threshold calculated as 30% of the average annualized salary of graduates, the institution would be in violation of the law.

Additionally, the bill provides immunity to educational institutions from criminal or civil actions if the involved individuals are not U.S. citizens at the time of enrollment and sign a waiver acknowledging the abusive nature of the tuition. Institutions found in violation would be liable for the total cost of tuition and fees paid, plus interest, and the statute of limitations for civil actions is set at ten years. The bill also caps attorneys' fees for class action lawsuits at 10% of the total awarded amount. The act is set to take effect on January 1, 2026, and while it does not project any revenue impact, it indicates potential indeterminable costs for compliance and legal actions for educational institutions.

Statutes affected:
Introduced: 358-A:2