Read the full stored bill text
A1380
ASSEMBLY, No. 1380
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ELLEN J. PARK
District 37 (Bergen)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblywoman Haider
SYNOPSIS
���� Clarifies that law concerning requirements for
closure of private career school applies to certain schools licensed by New
Jersey State Board of Cosmetology and Hairstyling.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning private career schools and amending and supplementing P.L.2021,
c.27.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 14 of P.L.2021,
c.27 (C.34:15C-10.3) is amended to read as follows:
���� 14.� As used in sections 14
through 20 of P.L.2021, c.27 (C.34:15C-10.3 through C.34:15C-10.9):
���� "Closure" means the
cessation of operations by a private career school.
���� "Commissioner" means
the Commissioner of Labor and Workforce Development.
���� "Disorderly closure"
means a closure that does not meet the requirements of P.L.2021, c.27
(C.18A:3B-90 et al.).
���� "Eligible transfer
institution" means a private career school that has been approved by the
commissioner pursuant to section 17 of P.L.2021, c.27 (C.34:15C-10.6).
���� "Institutional debt"
means:
���� (1)�� the amount outstanding
on any credit, including unpaid charges, extended by or on behalf of a private
career school that a student is obligated to repay, whether the amount has been
reduced to a judgment or the school classifies it as a loan; or
���� (2)�� a nonfederal loan or
debt agreement that is issued expressly for postsecondary education expenses
and that is guaranteed by a private career school or a private educational
lender that is affiliated with a private career school.
���� "Institutional financial
aid agreement" means any contract, promissory note, part of an enrollment
agreement, or other agreement in which a student agrees to pay an institutional
debt.
���� "Orderly closure"
means a closure that meets the requirements of P.L.2021, c.27 (C.18A:3B-90 et
al.).
���� "Private career
school" means a privately owned and privately operated postsecondary
school, other than an institution of higher education or proprietary
institution licensed to offer academic degrees, that furnishes or offers to
furnish programs, whether or not requiring a payment of tuition or fee, for the
purpose of training, retraining, or upgrading individuals for gainful
employment as workers in recognized or emerging occupations.�
�Private
career school� shall include a privately owned and privately operated
postsecondary school, other than an institution of higher education or
proprietary institution licensed to offer academic degrees, licensed by the New
Jersey State Board of Cosmetology and Hairstyling for the purpose of teaching
cosmetology and hairstyling,
beauty culture, barbering,
manicuring, hair braiding, skin care specialty, or any other specialty the
board may be authorized to regulate, to registered students.
���� "Student" means an
individual enrolled at a private career school in New Jersey, or a New Jersey
resident enrolled at a private career school located outside of this State.
���� "Teach-out
agreement" means a written agreement between schools that provides for the
equitable treatment of students and a reasonable opportunity for students to
complete their program of study if a school, or a school location that provides
100 percent of at least one program offered, ceases to operate before all
enrolled students have completed their program of study.
���� "Teach-out plan"
means a written plan developed by the school that provides for the equitable
treatment of students if a school, or a school location, ceases to operate
before all students have completed their program of study, and may include, if
required by the school's accrediting agency, a teach-out agreement between
schools.
(cf: P.L.2021, c.27, s.14)
���� 2.��� (New section) The New
Jersey State Board of Cosmetology and Hairstyling shall develop a model
teach-out plan for use by a private career school licensed by the board in
submitting the teach-out plan to the commissioner as required pursuant to
subsection b. of section 15 of P.L.2021, c.27 (C.34:15C-10.4).
���� 3.��� This act shall take
effect
on the first day of the sixth month
next following enactment, except that the Commissioner of Labor and Workforce
Development and the New Jersey State Board of Cosmetology and Hairstyling may
take any anticipatory administrative action in advance as shall be necessary
for the implementation of this act
.
STATEMENT
���� This bill clarifies that the
provisions of current law concerning requirements for the closure of private
career schools that operate in the State also apply to certain schools licensed
by the New Jersey State Board of Cosmetology and Hairstyling and requires the
New Jersey State Board of Cosmetology and Hairstyling to develop a model
teach-out plan.
���� The bill clarifies that
privately owned and privately operated postsecondary schools, other than
institutions of higher education or proprietary institutions licensed to offer
academic degrees, licensed by the New Jersey State Board of Cosmetology and Hairstyling
for the purpose of teaching cosmetology and hairstyling, beauty culture,
barbering, manicuring, hair braiding or skin care specialty to registered
students, must file teach-out plans that address potential school closures with
the Commissioner of Labor and Workforce Development.
���� The bill requires the New
Jersey State Board of Cosmetology and Hairstyling to develop a model teach-out
plan for use by a private career school licensed by the board in submitting the
teach-out plan to the commissioner as required pursuant to current law.
���� This bill is meant to address
the abrupt closure of Capri Institute, a school licensed by the New Jersey
State Board of Cosmetology and Hairstyling with several locations in the State,
as well as similar closures that could occur in the future.� When Capri
Institute closed, many students were left with institutional debt and no way to
access their transcripts.� If the school had entered into a teach-out
agreement, as required by the private career school law, Capri Institute would
have been required to arrange for transfer of the students to an eligible
transfer institute approved by the commissioner and provide students with a
complete academic record and official transcripts.
���� This bill clarifies that the
private career school law�s teach-out agreement requirement applies to schools
licensed by the New Jersey State Board of Cosmetology and Hairstyling.