N.J. Admin. Code § 9A:2-1.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 9A:2-1.3 - Institutional reporting of a risk of imminent closure

(a) An independent institution, or a proprietary institution, licensed to offer academic degrees shall immediately notify the Secretary of any known financial liabilities or risks that:

1. Are reasonably likely to result in the imminent closure of the institution; or

2. Otherwise negatively affect the institution's ability to fulfill its obligations to current and admitted students.

(b) A notification sent pursuant to (a) above shall be in writing and sent in both physical and electronic format to the OSHE and shall contain the following information, at a minimum:

1. A description of the known liabilities or risks that are the basis for the notification;

2. Any other additional financial information necessary to perform an analysis of the items at (b)1 above;

3. A description of the impact of the items at (b)1 above on the institution, including a detailed description of the specific services that the institution is either unable to, or expects to be unable to, provide to current and admitted students in relation to the notice provided to the Secretary pursuant to (a) above; and

4. The anticipated date of imminent closure, if applicable.

(c) Upon receipt of a notification sent pursuant to (a) above, the Secretary may seek additional information from the institution, as determined by the Secretary.

(d) The Secretary shall determine if there is a risk of the imminent closure of the institution.

1. If the Secretary determines that there is a risk of imminent closure, the procedures at N.J.A.C. 9A:2-1.5shall apply.

2. If the Secretary determines that there is not a risk of imminent closure, the Secretary may request the institution to submit a risk mitigation plan pursuant to N.J.A.C. 9A:2-1.6.

(e) OSHE shall issue guidelines on an annual basis to assist institutions with meeting the requirements of this section. The guidelines shall contain:

1. Examples of financial liabilities or risks that would require notification pursuant to (a) above;

2. A notification template; and

3. Notification submission instructions.

N.J. Admin. Code § 9A:2-1.3

Adopted by 54 N.J.R. 491(d), effective 3/21/2022