Education Laws and Regulations
603 CMR 3.00:
Private Occupational Schools
3.06: Surety Requirement
(1) In addition to the information required to be submitted by M.G.L. c. 75C, §1A, M.G.L. c. 75D, § 3 and M.G.L. c. 93, § 20A, an applicant for a license to operate a school shall apply for certification that it is financially qualified by submitting financial statements to the State Auditor.
(2) The State Auditor shall determine the amount of surety a school must have to operate. No school shall operate without valid surety, as determined by the State Auditor.
(3) A school shall apply for a reevaluation of its financial qualification on an annual basis by submitting current financial statements to the State Auditor. Failure to submit the financial statements is cause for suspension and/or revocation of a license pursuant to 603 CMR 3.17.
(4) If the State Auditor increases the amount of surety a school needs, the school shall submit additional surety to the Department within 30 days. Failure to obtain the additional surety is cause for suspension and/or revocation of a license pursuant to 603 CMR 3.17.
(5) If the surety is canceled, the school or sales representative shall procure new surety prior to the effective cancellation date. Failure to procure new surety is cause for suspension and revocation of a license pursuant to 603 CMR 3.17.
603 CMR 3.00: M.G.L. c. 75C, § 7; c. 75D, § 8 and c. 93, § 21B.