Committee hears bill to require disclosure of for-profit status on community school materials

Senator Ingram, sponsor of Senate Bill 47, told the Senate Education Committee that the bill would require disclosure of an operator's for-profit status on promotional materials and employment contracts for community schools and postsecondary institutions. Ingram said the for-profit education sector can offer flexible pathways but that some institutions have engaged in "misleading practices and a lack of accountability," and cited the 2015 collapse of Corinthian Colleges as an example the sponsor said supports the need for greater transparency.

The sponsor said Ohio has nearly 100 for-profit institutions offering technical certificates through bachelor's degrees and argued that students and families must be informed about tuition costs, job placement rates and credential value. Senator Smith asked whether the bill could emulate best practices from other states; the sponsor said similar protections exist in Florida, New York, Texas, Washington and California and offered to provide examples to the committee.

A committee member asked whether the requirement should also apply to nonprofit institutions; the sponsor responded affirmatively when asked whether the disclosure requirement could extend to all entities including nonprofits. The hearing was recorded as the first hearing on Senate Bill 47 and concluded with no committee vote taken.