(a) No certificate to operate a private career school shall be authorized by the executive director, or the executive director’s designee, if (1) any principal, officer, member or director of the applicant school has acted in a similar capacity for a private career school which has had its authorization revoked pursuant to § 10a-22f; (2) the applicant school does not have a net worth consisting of sufficient liquid assets or other evidence of fiscal soundness to operate for the period of time for which authorization is sought; (3) the applicant school or any of its agents engages in advertising, sales, collection, credit or other practices which are false, deceptive, misleading or unfair; (4) the applicant school has any policy which discourages or prohibits the filing of inquiries or complaints regarding the school’s operation with the executive director; (5) the applicant school fails to satisfactorily meet the criteria set forth in subsection (g) of § 10a-22b, or, on and after the effective date of regulations adopted pursuant to § 10a-22k, the criteria set forth in such regulations; (6) a private career school that has previously closed fails to follow the procedures for school closure under § 10a-22m; or (7) the applicant school does not have a director located at the school and at each of its branches in this state.

(b) The executive director may deny a certificate of authorization if the person who owns or intends to operate a private career school has been convicted in this state, or any other state, of larceny in violation of § 53a-122 or 53a-123; identity theft in violation of § 53a-129b or 53a-129c; forgery in violation of § 53a-138 or 53a-139; or has a criminal record in this state, or any other state, that the executive director reasonably believes renders the person unsuitable to own and operate a private career school. A refusal of a certificate of authorization under this subsection shall be made in accordance with the provisions of sections 46a-79 to 46a-81, inclusive.

(c) No certificate to operate a private career school shall be issued by the executive director pursuant to § 10a-22d until such private career school seeking authorization files with the executive director certificates indicating that the buildings and premises for such school meet all applicable state and local fire and zoning requirements. Such certificates shall be attested to by the fire marshal and zoning enforcement officer within the municipality in which such school is located.

(d) No certificate to operate a new private career school shall be issued by the executive director pursuant to § 10a-22d until such private career school seeking authorization files with the executive director an irrevocable letter of credit issued by a bank with its main office or branch located within this state in the penal amount of forty thousand dollars guaranteeing the payments required of the school to the private career school student protection account in accordance with the provisions of § 10a-22u, except that, any letter of credit issued on and after the effective date of the regulations adopted pursuant to § 10a-22k, shall be in a penal amount specified in such regulations. The letter of credit shall be payable to the private career school student protection account in the event that such school fails to make payments to the account as provided in subsection (a) of § 10a-22u or in the event the state takes action to reimburse the account for a tuition refund paid to a student pursuant to the provisions of § 10a-22v, provided the amount of the letter of credit to be paid into the private career school student protection account shall not exceed the amounts owed to the account. In the event a private career school fails to close in accordance with the provisions of § 10a-22m, the executive director may seize the letter of credit, which shall be made payable to the private career school protection account.

(e) The executive director shall notify the applicant private career school, by certified mail, return receipt requested of the decision to grant or deny a certificate of authorization not later than sixty days after receiving the written report of the evaluation team appointed pursuant to subsection (e) of § 10a-22b.