Higher Education and Employment Advancement Committee
JOINT FAVORABLE REPORT
Bill No.: SB-998
AN ACT CONCERNING COMPILED FINANCIAL STATEMENTS FOR CERTAIN
Title: PRIVATE OCCUPATIONAL SCHOOLS.
Vote Date: 3/18/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/9/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
The Office of Higher Education.
REASONS FOR BILL:
This bill will revise existing financial statement requirements for private occupational schools
to be based on tuition revenue instead of enrollment.
Substitute Language:

Sections. 3 & 4: incorporates SB 995: An Act Concerning a Private Occupational Schools
Failure to Submit a Renewal Application
Section. 5: incorporates HB 6584: An Act Concerning Out-of-State Private Occupational
Schools
Sections. 6 & 7: incorporates SB 994: An Act Concerning Payments to the Private
Occupational Student Protection Account
Section. 8: incorporates HB 6583: An Act Requiring Independent Institutions of Higher
Education to Submit Closure Plans to the Office of Higher Education
RESPONSE FROM ADMINISTRATION/AGENCY:
Timothy D. Larson, Executive Director, Office of Higher Education submitted written
testimony in support of this bill.
Currently schools annually enrolling 10 or more students submit a reviewed or audited
financial statement. Non-accredited schools enrolling less than 10 students are allowed to do
a complied financial statement, which is more affordable.
OHE has noticed that smaller schools with low tuition revenue, may enroll more than 10
students and then also be required to file a costlier reviewed or audited financial statement
even though their tuition revenue is low.
Mr. Larson supports the reviewed/audited financial statement requirement based on tuition
revenue rather than cost, setting the minimum bar at $50,000. This saves smaller schools
with low tuition revenue but higher enrollments money by reducing the burden of the cost of
their financial statement.
NATURE AND SOURCES OF SUPPORT:
See agency response.
NATURE AND SOURCES OF OPPOSITION:
None submitted.
Reported by: Jeanie Phillips, Clerk Date: March 23, 2021
Page 2 of 2 SB-998


Statutes affected:
HED Joint Favorable Substitute:
File No. 293:
Public Act No. 21-45: