New Jersey Assembly Bill A1380

New Jersey 2026-2027 Regular Session

• Introduced: 1/13/26
• Refer: 1/13/26

Caption

Clarifies that law concerning requirements for closure of private career school applies to certain schools licensed by New Jersey State Board of Cosmetology and Hairstyling.

Impact

This bill is a response to the abrupt closure of the Capri Institute, which left many students in a situation of institutional debt without access to their transcripts. By requiring teach-out plans, A1380 aims to protect students from similar occurrences in the future. It provides a framework for orderly transitions for students impacted by sudden school closures, aiming to minimize educational disruption and financial distress.

Summary

Assembly Bill A1380 aims to clarify the regulations around the closure of private career schools, specifically those licensed by the New Jersey State Board of Cosmetology and Hairstyling. This legislation mandates that these schools must file teach-out plans with the Commissioner of Labor and Workforce Development. These plans are designed to ensure that, in case of a sudden school closure, students can transfer to another institution and complete their education while also securing their academic records and any financial responsibilities tied to their enrollment.

Contention

The bill emphasizes the need for schools to adhere to established guidelines when shutting down operations. However, the requirement to file teach-out plans may create additional administrative burdens for schools. Critics may argue that this could be seen as an overreach into the operations of private educational institutions, potentially stifling their autonomy. Nonetheless, proponents assert that such measures are necessary to protect the interests of students and ensure that they are not left without recourse in the event of school closures.