Georgia bill would tighten oversight of non‑degree postsecondary schools, require small contribution to student protection fund

Senator Max Burns told the House Higher Education Committee that Senate Bill 400 (LC 610369S) aims to strengthen oversight of non‑degree, non‑accredited postsecondary institutions in Georgia and protect students if a school closes abruptly. "The objective of this legislation is to strengthen the oversight capacity of the Georgia Non Public Postsecondary Education Commission so that they can ensure that Georgia students receive a quality education," Burns said.

The bill defines distance education, codifies a prohibition on unaccredited institutions offering associate or bachelor degrees (while allowing candidacy pathways), and requires authorized institutions to contribute one‑tenth of one percent of tuition into the tuition guarantee trust fund, or to provide a bond or an irrevocable letter of credit as surety. Senator Burns said the contribution could be significant for larger institutions and that the trust fund helps indemnify students when a school closes or fails to deliver promised services.

Doctor Kirk Shook, executive director of the Georgia Nonpublic Postsecondary Education Commission, and agency staff described administrative changes in the bill: the commission could deny program or course approvals administratively and an appeal would proceed to superior court; the bill also advances digital recordkeeping and authorizes the commission to take custody of student transcripts when a school closes. "For new applications, it's moving toward a digital record system," staff said, adding the commission can provide access to records earlier in certain situations.

Committee members asked whether religious institutions or other exempt categories (flight schools, tax-prep schools, and institutions overseen by other state boards) would be affected. Agency staff said exempt categories are specified in code and that the degree prohibition applies to "authorized" institutions that are subject to commission oversight; religious institutions offering only religious instruction and not receiving public funds are generally exempt.

Members also pressed enforcement questions about 'bad actors' and appeals; agency staff said the change largely codifies existing rule‑making practice and adds clarity and statutory backing to actions already taken in rule. On surety arrangements, staff explained that letters of credit (bank instruments) allow much faster access to funds than surety bonds from insurance carriers; the agency cited past closures (Argosy University, Art Institute of Atlanta) where surety collections took more than a year.

The committee did not take a final vote on SB 400 and asked agency staff to provide additional information before a second hearing.