Overview:
Ohio Senate Bill 47 proposes amendments to several sections of the Ohio Revised Code (Chapters 3314, 3332, 3333, 4709, and 4713) to mandate the conspicuous disclosure of for-profit status by community school operators and various post-secondary educational institutions. This bill aims to increase transparency for students and the public regarding the operational structure of these entities.
Main Themes and Important Ideas/Facts:
1. Mandatory Disclosure of For-Profit Status:
The central theme of SB 47 is the requirement for for-profit entities operating community schools and post-secondary educational institutions to clearly and prominently disclose their for-profit status on various forms of communication. This includes:
- Official Websites: The disclosure must be on the school or institution’s official website.
- Promotional Materials: This encompasses all digital and print media used for promotion.
- Contracts for Instruction: Enrollment agreements and other contractual documents must include the disclosure.
2. Specific Disclosure Language and Formatting:
The bill specifies the exact language to be used for the disclosure and mandates its formatting to ensure it is easily noticeable:
- Community Schools: The disclosure shall read: “(Name of Community School Operator) IS A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 21-23)
- Post-Secondary Institutions (General): The disclosure shall read: “(Name of Degree-Granting Institution) IS A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 139-141)
- Barber Schools: The disclosure shall read: “(Name of Barber School) IS A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 258-260)
- Cosmetology Schools: The disclosure shall read: “(Name of school) IS A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 380-382)
- Formatting Requirement: In all cases, the disclosure must be in a “type size as large or larger than any other text” (Lines 12, 136, 256, 378) on the specified materials, excluding the name of the institution/school. It must also be “presented in a manner reasonably calculated to draw the attention of the reader.” (Lines 14-15, 138-139, 258, 380)
3. Disclosure on Third-Party Promotional Materials:
The bill extends the disclosure requirement to promotional materials published by entities not directly affiliated with the for-profit school or institution:
- For community schools: “A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 27-28)
- For other registered post-secondary institutions: “A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 145-146)
- For barber schools and other institutions licensed under section 4709.10: “A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 264-266)
- For cosmetology schools and other institutions licensed under section 4713.44: “A FOR-PROFIT BUSINESS IN THE STATE OF OHIO.” (Lines 390-392)
- The type size requirement applies to these third-party disclosures as well, stating it must be “as large or larger than any other text in the advertisement.” (Lines 30-31, 148, 267-268, 393-394)
4. Specific Amendments to Existing Laws:
The bill proposes to amend the following sections of the Ohio Revised Code:
- Section 3314.033 (Enacted): This new section directly mandates the disclosure requirements for for-profit operators of community schools and directs the Department of Education and Workforce to adopt rules for its implementation.
- Section 3332.031 (Amended): This section outlines the duties of the state board of career colleges and schools. The amendment adds a new division (R) requiring for-profit post-secondary educational institutions registered under section 3332.05 to adhere to the disclosure requirements on their websites, promotional materials, and contracts.
- Quote: “(R)(1) Adopt rules requiring any for-profit, post-secondary educational institution registered under section 3332.05 of the Revised Code to disclose on the institution’s official web site, all promotional digital and print media, and contracts for instruction, the fact that the institution is a for-profit business.” (Lines 127-133)
- Section 3333.046 (Amended): This section pertains to certain degree-granting institutions operated by for-profit corporations that are exempt from Chapter 3332 regulation. The amendment adds a new division (B) imposing the same for-profit disclosure requirements on their websites, promotional materials, and contracts.
- Quote: “(B)(1) Any institution to which division (A) of this section applies shall disclose on the institution’s official web site, all promotional digital and print media, and contracts for instruction, the fact that the institution is a for-profit business.” (Lines 164-169)
- Section 4709.05 (Amended): This section details the duties of the state cosmetology and barber board regarding the regulation of barbering. The amendment adds new divisions (A)(8)(k) and (l) requiring for-profit barber schools and institutions operated by licensed individuals to disclose their for-profit status on their materials and third-party advertisements.
- Quote: “(k) Require any for-profit barber school operated by a person licensed under section 4709.10 of the Revised Code to disclose on the school’s official web site, all promotional digital and print media, and contracts for instruction, the fact that the school is a for-profit business.” (Lines 250-256)
- Section 4713.07 (Amended): This section outlines the duties of the state cosmetology and barber board concerning cosmetology. The amendment adds new divisions (A)(12) and (13) imposing similar for-profit disclosure requirements on cosmetology schools and institutions operated by licensed individuals.
- Quote: “(12) Adopt rules requiring any for-profit school of cosmetology operated by a person licensed under section 4713.44 of the Revised Code to disclose on the school’s official web site, all promotional digital and print media, and contracts for instruction, the fact that the school is a for-profit business.” (Lines 374-380)
5. Regulatory Authority:
The bill assigns the responsibility for adopting rules to implement these disclosure requirements to the following entities:
- Department of Education and Workforce: For community schools with for-profit operators (Section 3314.033).
- State Board of Career Colleges and Schools: For private career schools and other post-secondary institutions registered under Chapter 3332 (Section 3332.031).
- State Cosmetology and Barber Board: For for-profit barber schools and for-profit cosmetology schools (Sections 4709.05 and 4713.07).
Repeal of Existing Sections:
Section 2 of the bill states that the existing versions of sections 3332.031, 3333.046, 4709.05, and 4713.07 of the Revised Code are repealed upon the enactment of this bill. This signifies a complete replacement of these sections with the amended versions containing the new disclosure requirements.
Potential Implications:
- Increased Transparency: The bill aims to provide prospective students and the public with clear information about the financial structure of educational providers, potentially influencing their decisions.
- Consumer Protection: By making the for-profit status more prominent, the bill seeks to protect consumers from potential misunderstandings or deceptive practices.
- Administrative Burden: Educational institutions and regulatory bodies will need to adapt their materials and processes to comply with the new disclosure requirements and related rulemaking.
- Potential for Market Impact: Increased awareness of for-profit status could potentially affect enrollment and public perception of these institutions.
Next Steps:
As the bill has been introduced in the 136th General Assembly, it will likely proceed through the legislative process, including committee hearings and potential amendments, before a final vote by the Senate and the House of Representatives.
This briefing document provides a summary of the key provisions of Senate Bill 47 as introduced. Further analysis will be necessary as the bill progresses through the legislative process.