ASSEMBLY REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1929

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 16, 2025

      The Assembly Regulated Professions Committee reports favorably and with committee amendments Assembly Bill No. 1929.

      As amended, 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.

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

      As amended and reported, Assembly Bill No. 1929 is identical to Senate Bill No. 3630.

COMMITTEE AMENDMENTS:

      The committee amended the bill to remove a requirement that the New Jersey State Board of Cosmetology and Hairstyling make model teach-out plans available by September 1, 2023 and to provide that the bill takes effect on the first day of the sixth month next following enactment.