Current through September 17, 2024
003.01 Except as provided under section
003.04, each for-profit postsecondary institution authorized to operate in the
state shall pay into the fund in each assessment year , an amount equal to
one-tenth of one percent (.001) of the institution's gross tuition revenue for
the assessment year until the fund reaches the minimum fund level
003.02 All payments made into the
fund shall be maintained by the State Treasurer and deposited
into the Guaranty Recovery Cash Fund.
003.02(A) The assets of the
fund may not be expended for any purpose except as provided
under section 005 of this rule.
003.02(B) The fund shall be
administered by the Commission.
003.02(C) The fund shall be maintained
between the minimal fund level and maximum fund
level.
003.02(D) At any
time when the fund drops below the minimum fund level, the
Commission may resume the assessment.
003.02(E) Funds in excess of the
maximum fund level shall be used as directed by the Commission
to provide grants or scholarships for students attending for-profit
postsecondary institutions in Nebraska as provided under section
006.
003.03 Payment into
the fund shall be made in the form of a company or cashier's check or money
order made payable to the "Coordinating Commission for Postsecondary Education"
and received no later than 30 days after the assessment year .
003.03(A) The for-profit postsecondary
institution shall certify on forms provided by the Commission that the
institution maintains for five years a verifiable set of records which document
the reported gross tuition revenue collected and shall make such records
available to the Commission on request. Any such records made available to the
Commission may be withheld from the public to the extent allowed by Neb. Rev.
Stat. §
84-712.05.
A copy of the form to be used may be found on the Commission website.
003.03(B) At the time of payment of the
assessment , the for-profit postsecondary institution shall submit to the
Commission documentation supporting the gross tuition revenue used in
calculating the assessment under section 003.01
003.04 A for-profit postsecondary institution
applying for an initial recurrent authorization to operate from the Commission
after September 1, 2017, shall not be assessed in its first fiscal year but
shall be assessed each year thereafter for four years or until the fund reaches
the minimum fund level , whichever occurs last.
003.05 A for-profit postsecondary institution
applying for an initial recurrent authorization to operate from the Commission
after September 1, 2017, may be required to file with the Commission a security
bond or other surety agreement.
003.05(A) A
good and sufficient surety bond in the penal sum of twenty thousand dollars
($20,000).
003.05(B) Other surety
agreements acceptable to the Commission include only the following:
003.05(B)(i) Twenty thousand dollar ($20,000)
Escrow account which provides the Commission with a recourse against the assets
in the account as it would have against an insurance company on a bond. The
terms on such an account would be the same as the terms on a bond.
003.05(B)(ii) Twenty thousand dollar
($20,000) Irrevocable Letter of Credit from a bank, made payable to the State
of Nebraska and deposited with the Commission. The Irrevocable Letter of Credit
will be released to the institution a year after the institution has ceased to
be in operation, or immediately when replaced by another instrument with a
similar amount.
003.05(C) The bond or agreement shall be
executed by the applicant as principal and by a surety company qualified and
authorized to do business in the state. The bond or agreement shall be
conditioned to provide indemnification to any student or enrollee or his or her
parent or guardian determined to have suffered loss or damage by the
termination of operations by the for-profit postsecondary institution . The
surety shall pay any final judgment rendered by any court of this state having
jurisdiction upon receipt of written notification of the judgment. Regardless
of the number of years that such bond or agreement is in force, the aggregate
liability of the surety thereon shall in no event exceed the penal sum of the
bond or agreement. The bond or agreement may be continuous.
003.05(D) Until the Guaranty Recovery Cash
Fund initially reaches the minimum fund level , the bond or other security
agreement of an institution shall cover the period of the recurrent
authorization to operate except when a surety is released as provided under
section (E).
003.05(E) A bond or
other security agreement may be released after such surety serves written
notice on the Commission thirty days prior to the release. Such release shall
not discharge or otherwise affect any claim previously or subsequently filed by
a student or enrollee or his or her parent or guardian provided for under
section 004 for the termination of operations by the for-profit postsecondary
institution during the term for which tuition has been paid while the bond or
agreement was in force.
003.05(F)
During the term of the bond or agreement and upon forfeiture of the bond or
agreement, the Commission retains a property interest in the surety's guarantee
of payment under the bond or agreement which is not affected by the bankruptcy,
insolvency, or other financial incapacity of the operator or principal on the
bond or agreement.
