1. (a) Except as provided in (e) of this section, a postsecondary educational institution and an agent shall post a surety bond, a cash deposit, or commission-approved negotiable securities as required by AS 14.48.100 and in an amount determined under this section. The surety bond, cash deposit, or negotiable securities must be executed solely in favor of and filed with the commission. The commission may increase or decrease the bonding requirement to conform to the level set in (b) of this section or 20 AAC 17.102 based on updated financial or other information.
2. (b) Except as provided in 20 AAC 17.102, the amount of the required surety bond, cash deposit, or commission-approved negotiable securities is based, for an existing institution, upon the highest amount of revenue received by the institution for all students enrolled in all programs during an academic or a vocational program period, in the most recent calendar, or fiscal, 12-month period; or for new institutions or institutions that have added or deleted programs, the highest amount of revenue that the commission staff projects will be earned by the institution for all students enrolled in all programs during an academic or a vocational program period in the upcoming academic year. The amount of the bond is determined as follows: POSTSECONDARY EDUCATIONAL INSTITUTIONS Institution RevenueBond AmountUp to $25,000$ 5,000$ 25,001 - $ 50,000$ 10,000$ 50,001 - $100,000$ 20,000$100,001 - $150,000$ 30,000$150,001 - $200,000$ 40,000$200,001 - $250,000$ 50,000$250,001 - $300,000$ 60,000$300,001 - $400,000$ 80,000$400,001 - $500,000$100,000$500,001 - $750,000$150,000$750,001 - $1,000,000$200,000$1,000,001 and above$250,000 AGENTS Institution RevenueBond AmountUp to $ 25,000$ 2,500$ 25,001 - $50,000$ 5,000$ 50,001 - $100,000$10,000$100,001 - $150,000$15,000$150,001 - $200,000$20,000$200,001 - $250,000$25,000$250,001 - $300,000$30,000$300,001 - $350,000$35,000$350,001 - $400,000$40,000$400,001 - $450,000$45,000$450,001 and above$50,000

3. (c) For the purpose of determining the amount of a bond required by the commission,

   1. (1) institutions must include revenues received for all students, including those enrolled in programs otherwise exempt from this chapter;
   2. (2) a flight school must include revenues for its private pilot, commercial pilot, and ratings programs; and
   3. (3) the calculation of institution revenues must include all revenues received from all funding sources for all commodities and services provided by the institution as part of its provision of postsecondary education, including tuition and fees, books and materials, and room and board.
4. (d) A negotiable security filed with the commission in place of a bond will not be released by the commission until at least six months after the end of the enrollment period for which the security is filed or at least six months after the date the institution or agent ceases operations, whichever comes first. If a complaint has been filed, or action is pending on a complaint filed, relative to the enrollment period covered by the security, the security will not be released until the complaint has been resolved or final action has been taken.
5. (e) An agent who is a bona fide employee of a postsecondary educational institution authorized to operate in this state or exempted from authorization, and who acts as an agent only in the scope of the agent's employment with the postsecondary educational institution is exempt from the agent bonding requirements in (b) of this section.
6. (f) Institutions may meet bonding requirements through participation in an institutional surety pool, training assurance pool, or tuition recovery fund approved by the commission.
7. (g) A certificate of deposit or other negotiable instrument offered by a postsecondary educational institution authorized to operate in Alaska must be established either for the period of authorization plus six months or be automatically renewable, and must meet liquidity requirements approved by the executive director of the commission.
8. (h) Repealed 9/18/2022.
9. (i) Repealed 9/18/2022.
10. (j) Repealed 9/18/2022.

(Eff. 3/6/86, Register 97; am 5/8/88, Register 106; am 9/15/88, Register 107; am 12/8/88, Register 108; am 5/4/90, Register 114; am 8/18/91, Register 117; am 4/24/98, Register 146; am 8/26/98, Register 147; am 4/20/2000, Register 154; am 12/31/2005, Register 176; am 12/29/2010, Register 196; am 2/22/2015, Register 213; am 9/18/2022, Register 243)

Authority: AS 14.42.030, AS 14.48.050, AS 14.48.100