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INSTITUTIONS OF HIGHER EDUCATION DISCLOSURE

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PROVISIONS

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2016 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Kim Coleman

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Senate Sponsor: Howard A. Stephenson

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8     LONG TITLE
9     General Description:
10          This bill enacts disclosure requirements for institutions of higher education.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     with certain exceptions, requires an institution of higher education to disclose
15     information regarding program completion and job placement for each program;
16     and
17          ▸     directs the Board of Regents to adopt rules for the implementation of disclosure
18     requirements.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          This bill provides a special effective date.
23     Utah Code Sections Affected:
24     ENACTS:
25          53B-1-111, Utah Code Annotated 1953
26     

27     Be it enacted by the Legislature of the state of Utah:

28          Section 1. Section 53B-1-111 is enacted to read:
29          53B-1-111. Disclosure requirements for institution programs.
30          (1) As used in this section:
31          (a) "Award year" means the period of time from July 1 of one year through June 30 of
32     the following year.
33          (b) "Cohort" means all students who began enrollment in a program in the same award
34     year.
35          (c) "Disclosure template" means a template created by the board and used by an
36     institution in accordance with this section.
37          (d) "Full-time student" means an enrolled student who is carrying a full-time academic
38     workload:
39          (i) as determined in a minimum standard adopted by an institution; and
40          (ii) that is applicable to all students enrolled in a particular program at the institution.
41          (e) (i) "Institution" means:
42          (A) the University of Utah;
43          (B) Utah State University;
44          (C) Weber State University;
45          (D) Southern Utah University;
46          (E) Snow College;
47          (F) Dixie State University;
48          (G) Utah Valley University;
49          (H) Salt Lake Community College;
50          (I) the Utah College of Applied Technology; and
51          (J) any other university or college established and maintained by the state.
52          (ii) "Institution" includes a branch or affiliated institution and a campus or facility
53     owned, operated, or controlled by the governing board of the university or college.
54          (f) "Institutional promotional material" means material created by an institution that
55     identifies or promotes a program and is distributed to a prospective student, including:
56          (i) a catalog;
57          (ii) an invitation;
58          (iii) a flyer;

59          (iv) a billboard; or
60          (v) advertising on or through radio, television, print media, the Internet, or social
61     media.
62          (g) "Part-time student" means an enrolled student who is carrying a part-time academic
63     workload:
64          (i) as determined in a minimum standard adopted by an institution; and
65          (ii) that is applicable to all students enrolled in a particular program at the institution.
66          (h) "Private loan" means a loan to a current or previous student of an institution for
67     educational expenses that is not a Title IV loan.
68          (i) (i) "Program" means a program of organized instruction or study at an institution
69     that leads to:
70          (A) an academic degree;
71          (B) a professional degree;
72          (C) a vocational degree;
73          (D) a certificate; or
74          (E) another recognized educational credential.
75          (ii) "Program" includes instruction or study that, in lieu of time as a measurement for
76     student learning, utilizes direct assessment of student learning, or recognizes the direct
77     assessment of student learning by others, if the assessment is consistent with the accreditation
78     of the institution or program utilizing the results of the assessment.
79          (j) "Prospective student" means an individual who has contacted an institution for the
80     purpose of requesting information about enrolling in a program or who has been contacted
81     directly by the institution or by a third party on behalf of the institution about enrolling in a
82     program.
83          (k) "Standard Occupational Classification code" or "SOC code" means a code created
84     by the United States Bureau of Labor and Statistics to classify workers into occupational
85     categories for the purpose of collecting, calculating, or disseminating data.
86          (l) "Student loan" means a Title IV loan or a private loan.
87          (m) "Title IV loan" means a loan authorized under:
88          (i) the Federal Perkins Loan Program;
89          (ii) the Federal Family Education Loan Program; or

90          (iii) the William D. Ford Direct Loan Program.
91          (2) An institution shall, in accordance with this section, disclose in a disclosure
92     template information regarding program completion and job placement for each program
93     offered by the institution.
94          (3) (a) The board shall, subject to Subsection (3)(b), develop and provide to each
95     institution a disclosure template.
96          (b) The board shall:
97          (i) conduct consumer testing when developing the disclosure template; and
98          (ii) ensure that the disclosure template is meaningful to prospective and current
99     students.
100          (4) For each program offered by an institution, the institution shall provide the
101     following information in the disclosure template:
102          (a) (i) primary occupations by name and SOC code that a program prepares a student to
103     enter; and
104          (ii) a web site link to occupational profiles on www.onetonline.org or its successor site
105     to primary occupations for which a program prepares a student;
106          (b) based on a formula adopted by the board, the program's:
107          (i) completion rates for full-time and part-time students; and
108          (ii) withdrawal rates;
109          (c) for a full-time and part-time student, the length of the program in weeks, months,
110     and years;
111          (d) the number of clock or credit hours or equivalent, as applicable, expected for
112     completion of the program;
113          (e) the total number of individuals enrolled in the program in the award year previous
114     to the current award year;
115          (f) the loan repayment rate, based on a formula adopted by the board, for the following
116     groups of students who entered repayment on a Title IV loan during a period identified by the
117     board:
118          (i) all students who enrolled in the program;
119          (ii) all students who completed the program; and
120          (iii) all students who withdrew from the program;

121          (g) the total estimated cost of the following a student would incur while completing the
122     program:
123          (i) tuition and fees; and
124          (ii) books, supplies, and equipment;
125          (h) if an institution is required by the institution's accrediting agency to calculate a job
126     placement rate for the program or the institution, and using the required methodology of an
127     institution's accrediting agency, the placement rate for the program;
128          (i) of the individuals enrolled in the program during the most recently completed award
129     year, the percentage who received a Title IV loan or a private loan for enrollment in the
130     program;
131          (j) based on a formula adopted by the board, the median student loan debt of the
132     following groups:
133          (i) all students who completed the program during the most recently completed award
134     year;
135          (ii) all students who withdrew from the program during the most recently completed
136     award year; and
137          (iii) all students described in Subsections (4)(j)(i) and (ii);
138          (k) based on a formula adopted by the board, the mean and median wage earnings of
139     the following groups:
140          (i) all students who completed the program;
141          (ii) all students who withdrew from the program; and
142          (iii) all students described in Subsections (4)(k)(i) and (ii);
143          (l) the most recent program student loan default rate based on a formula adopted by the
144     board;
145          (m) the most recent program student annual wage earnings rate based on a formula
146     adopted by the board;
147          (n) information on whether the program satisfies:
148          (i) the applicable educational prerequisites for professional licensure or certification in
149     each state within the institution's Metropolitan Statistical Area as published by the United
150     States Office of Management and Budget; and
151          (ii) subject to Subsection (5), the applicable educational prerequisites for professional

152     licensure or certification in any other state for which the institution has made a determination
153     regarding professional licensure or certification requirements;
154          (o) whether the program is programmatically accredited and the name of the
155     accrediting agency; and
156          (p) a link to the United States Department of Education's College Navigator Website,
157     its successor site, or other similar federal resource.
158          (5) If an institution has not made a determination as described in Subsection (4)(n)(ii),
159     the institution shall include in the disclosure template a statement that the institution has not
160     made a determination with respect to the professional licensure or certification requirements of
161     any other state.
162          (6) An institution shall update at least annually the institution's information in the
163     disclosure template with the most recent data for each program of the institution.
164          (7) (a) On each institutional webpage that includes academic, cost, financial aid, or
165     admissions information for a program, an institution shall display:
166          (i) the disclosure template with the institution's information as required under this
167     section; or
168          (ii) a prominent, readily accessible, clear, conspicuous, and direct link to the disclosure
169     template for that program.
170          (b) The board may require an institution to modify an institutional webpage if the
171     institution provides a link to the disclosure template that does not meet the requirements of
172     Subsection (7)(a)(ii).
173          (8) (a) An institution shall include the following on each institutional promotional
174     material for a program:
175          (i) the disclosure template in a prominent manner; or
176          (ii) if space or air time would preclude including the disclosure template, the web
177     address of, or the direct link to, the disclosure template:
178          (A) in a manner that is prominent, readily accessible, clear, conspicuous, and direct;
179     and
180          (B) with conspicuous text that reads as follows: "Important information about the
181     educational debt, earnings, and completion rates of students who attended this program."
182          (b) An institution shall ensure that an institutional promotional material is accurate and

183     current at the time the institutional promotional material is published, broadcasted, or
184     otherwise disseminated.
185          (9) Subject to Subsection (10), an institution shall provide a prospective student or a
186     third party acting on behalf of the prospective student, or, if applicable, a parent or guardian of
187     a prospective student who is a minor, a copy of the disclosure template on a stand alone
188     document before a prospective student or third party acting on behalf of the prospective
189     student:
190          (a) signs an enrollment agreement;
191          (b) completes registration; or
192          (c) makes a financial commitment to the institution.
193          (10) (a) Subject to Subsection (10)(b), an institution shall provide a copy of the
194     disclosure template as described in Subsection (9):
195          (i) (A) by hand delivering the disclosure template to the prospective student or third
196     party individual; or
197          (B) as part of a group presentation; or
198          (ii) subject to Subsection (10)(c), by sending the disclosure template to the primary
199     email address used by the institution for communicating about the program with the
200     prospective student or third party acting on behalf of the prospective student.
201          (b) If an institution provides information by hand delivery under Subsection (10)(a)(i),
202     the institution shall obtain written confirmation of receipt from the prospective student or third
203     party acting on behalf of the prospective student.
204          (c) If an institution provides information by email under Subsection (10)(a)(ii), the
205     institution shall:
206          (i) ensure that the disclosure template is the only substantive content in the email;
207          (ii) receive electronic or other written acknowledgment of receipt from the prospective
208     student or third party;
209          (iii) send the disclosure template using a different address or method of delivery if the
210     institution receives a response that the email could not be delivered; and
211          (iv) maintain records of the institution's efforts to provide the disclosure template in
212     accordance with this Subsection (10).
213          (11) If the institution offers a program that varies in length, the institution shall:

214          (a) publish a separate disclosure template for each length of the program; and
215          (b) ensure that each disclosure template clearly identifies the applicable length of the
216     program.
217          (12) (a) If the institution offers a program in more than one location or format, the
218     institution may publish a separate disclosure template for each location or format if doing so
219     would result in clearer disclosure under Subsection (4).
220          (b) If an institution publishes a separate disclosure template as described in Subsection
221     (12)(a), the institution shall ensure that each disclosure template clearly identifies the
222     applicable location or format of the program.
223          (13) Notwithstanding the provisions of this section, the institution may not include on
224     the disclosure template:
225          (a) if information for a disclosure template is based on fewer than 10 students, a
226     disclosure described in:
227          (i) Subsection (4)(b)(i) or (ii);
228          (ii) Subsection (4)(c); or
229          (iii) Subsections (4)(h) through (m); or
230          (b) any other information in violation of the Family Educational Rights and Privacy
231     Act, 20 U.S.C. Sec. 1232g.
232          (14) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
233     Rulemaking Act, adopt rules for the implementation and administration of this section.
234          (15) Notwithstanding the provision of this section, an institution may not, for purposes
235     of compliance with this section, include in a disclosure template information pertaining to a
236     student who is not beyond the age of compulsory school attendance.
237          Section 2. Effective date.
238          This bill takes effect on January 1, 2017.






Legislative Review Note
Office of Legislative Research and General Counsel