The Massachusetts House on Wednesday passed a bill that would let the state keep a closer eye on the financial conditions of the state’s colleges and universities, part of an effort to avoid sudden closures of struggling schools.

“You have seen in the last five years in the commonwealth of Massachusetts that 18 schools have either closed or merged and you only heard about one of them, because that was handled not in an orderly fashion,” said Rep. Jeffrey Roy, D-Franklin, chairman of the Joint Committee on Higher Education. “What this bill will do will allow these types of closures or mergers to happen in an orderly basis.”

The bill passed the House unanimously, 152-0. It will now go to the Senate.

The issue of college closures made headlines after the abrupt shuttering of Mt. Ida College in Newton in April 2018, which left students scrambling to find new programs.

At a legislative hearing in May, state officials noted that school closures are expected to become more common for demographic reasons, as the college-age population living in the northeast declines.

Hampshire College this year declined to admit a full freshman class in the fall, citing financial uncertainty about its future.

The House bill would require schools to notify the Board of Higher Education of any financial liabilities or risks “which are reasonably likely to result in the imminent closure of the institution” or affect the school’s ability to fulfill its obligations to students.

Either the board or an accrediting agency would conduct annual financial screenings of every school to identify any institution that may be at risk of imminent closure. If an institution is deemed at risk of closure, the school would have to provide financial information to the board and would have to prepare a contingency plan in case of closure. The contingency plan would include a process for notifying students, applicants, faculty and staff; arrangements for students to complete their education; and arrangements for the long-term maintenance of student records.

The school would also have to provide a bond to ensure money is available to refund student deposits and cover the cost of maintaining student records.

None of the school’s financial documents or negotiations with the board would be public records, other than the annual financial screening report, which schools would have to post on their website together with a summary that is understandable to the public.

A school that does not comply with the rules could be fined up to $1,000 a day and could have its degree-granting authority revoked.

The bill also contains training requirements for boards of trustees of public institutions of higher education, so all trustees are trained every four years in areas like conflict of interest laws, state procurement laws, fiduciary responsibilities, and open meeting laws.

As earlier versions of the bill were being discussed by lawmakers, colleges and universities worried that if it were to become public that they were struggling, that could cause schools to close that might otherwise have turned themselves around.

Roy said the bill as currently written would let the Board of Higher Education look at these schools confidentially, so the schools could get back on their feet. “But when the time goes to give notice that they are going to close or merge, then we need to do that in an orderly process,” Roy said.

Rep. James Arciero, D-Westford, vice chairman of the Joint Committee on Higher Education, said students “deserve to have the confidence and knowledge that the schools they are attending are financially sound” and that if an institution needs to close that “students, parents and faculty would know of the closure as soon as possible, with the knowledge that every effort would be taken to ensure a smooth transition in such difficult circumstances.”

The bill is a revised version of a bill that was initially proposed by Gov. Charlie Baker.

The Association of Independent Colleges and Universities in Massachusetts, which has been lobbying lawmakers on various versions of the bill, said the organization appreciates that the House bill lets a regional accrediting agency conduct the annual financial screening, rather than the Board of Higher Education. “AICUM is committed to ensuring there is a thorough and constructive process that establishes the best path forward for colleges and universities in Massachusetts to better understand when an institution’s financial situation requires enhanced financial oversight,” said AICUM president Richard Doherty in a statement.

The Board of Higher Education is already considering revising its rules around the monitoring of colleges’ finances.

Under proposed new regulations, which will be considered at an Oct. 22 meeting, the board would make a determination as of Dec. 1 each year regarding whether a college or university has the financial resources to operate for another 18 months. The determination would be based on a financial screening, and colleges would be given a chance to address any concerns raised by the board.

Any college deemed to be at risk of imminent closure could be required to submit a contingency closure plan and notify students and faculty of its financial condition.

A Department of Education spokeswoman said the legislation would “clarify and enhance” the authority of the Board of Higher Education. It would also ensure that the discussions between school officials and the board are exempt from the public records law.

Representatives introduced just two amendments to the bill that was released by the House Ways and Means Committee Tuesday evening, but both were withdrawn without debate.

While the bill passed unanimously with no debate, the liberal advocacy group Progressive Massachusetts criticized lawmakers for not going far enough. Jonathan Cohn, chair of the issues committee for Progressive Massachusetts, said in a statement, “Making sure that students and the state are aware of a college’s imminent closure or tenuous financial status is great, but it doesn’t do anything to make higher education more affordable for Massachusetts families.”