Measure offering student protection against schools with financial woes advances to House

A bill giving the state more power to prevent students from losing money when private career schools shut down was forwarded Monday to its final legislative debate.

The House Education Committee unanimously forwarded SB18, sponsored by Senate Majority Whip Dan Eastman, R-Bountiful, to the full House.

The bill would give the Department of Commerce more regulation authority, including more audits and criminal background checks, to prevent problems up front.

Last year, eight post-secondary proprietary schools went out of business and another is poised to do so, leaving $2.5 million in victim losses, said Francine Giani, director of the Utah Division of Consumer Protection.

"We think this (bill) goes a long way to help us out," she said.

The Academy of Nursing in Salt Lake City most recently grabbed headlines for its financial woes, leaving students holding the bag.

But several such schools are financially solid and noteworthy, said Rep. Merlynn Newbold, R-South Jordan: "We ought to encourage others to be as good as they are, and protect our students."