Chapter 69 of the General Laws is hereby amended by striking out section 31B and inserting in place thereof the following section:-

Section 31B.  Any institution of higher education with the power to grant degrees in the commonwealth that has any known liabilities or risks which may result in the imminent closure of the institution or jeopardize the institution’s ability to fulfill its obligations to current and admitted students shall (a) notify the board of higher education of such known liabilities or risks; and (b) prepare and submit to said board, for its approval, a contingency closure plan which shall include a process for  providing enrolled and admitted students and staff with timely notification of the institution’s financial condition, accreditation status, and any outstanding compliance issues regarding federal student aid programs; arrangements for enabling students to complete their programs of study; and a plan for the transfer and long-term maintenance of student records in the event that the institution ceases to exist. 

The board of higher education may request from any institution of higher education with the power to grant degrees in the commonwealth such information as is necessary to accurately and fairly determine the institution’s financial condition and to monitor such condition over time.  The board may also impose reasonable sanctions on any such institution that does not comply in a timely manner with such notification requirements and requests.  Information submitted under this section by institutions of higher education shall not be considered a public record and shall be exempt from disclosure under clause twenty-sixth of section 7 of chapter 4 and section 10 of chapter 66.

The board of higher education shall establish regulations interpreting and applying this section following consultation with representatives of public and private colleges and universities.