BILL NUMBER: SB 1247 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 5, 2014
INTRODUCED BY Senator Lieu
(Principal coauthor: Assembly Member Bonilla)
FEBRUARY 20, 2014
An act to amend Section 94950 of the Education Code,
Section 27 of the Business and Professions Code, to
amend Sections 94800.5, 94801, 94802, 94804, 94808, 94809, 94809.5,
94813, 94816, 94829, 94838, 94847, 94861, 94874, 94874.1, 94874.7,
94874.8, 94875, 94876, 94877, 94878, 94879, 94881, 94882, 94883,
94884, 94885, 94887, 94888, 94890, 94891, 94892, 94893, 94895, 94896,
94897, 94898, 94900.7, 94904, 94909, 94910, 94911, 94913, 94920,
94921, 94923, 94924, 94926, 94927, 94927.5, 94928, 94929, 94929.5,
94929.7, 94929.8, 94930, 94930.5, 94931.5, 94932, 94932.5, 94933,
94933.5, 94934, 94935, 94936, 94937, 94938, 94939, 94941, 94942,
94943, 94943.5, 94944, 94944.5, 94944.6, 94945, 94948, and 94950 of,
to amend the heading of Article 5 (commencing with Section
94875) of Chapter 8 of Part 59 of Division 10 of Title 3 of, to add
Sections 94818.5, 94874.2, 94875.5, and 94929.9 to, to repeal
Sections 94803, 94805, 94820, and 94833 of, and to repeal and add
Sections 94880 and 94949 of, the Education Code, relating to
private postsecondary education, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1247, as amended, Lieu. Private postsecondary education:
California Private Postsecondary Education Act of 2009.
Existing law, the California Private Postsecondary Education Act
of 2009, provides for the regulation of private postsecondary
educational institutions by the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs. Existing
law repeals that act on January 1, 2015. The act
exempts an institution from its provisions, if any of a list of
specific criteria are met.
This bill would recast and revise various provisions of the act.
The bill would establish the Board for Private Postsecondary
Education as a successor agency to the bureau on July 1, 2015. The
bill would remove the exemption from its provisions for an
institution that is approved to participate in veterans financial aid
programs pursuant to a specified federal law, and that is not an
independent institution of higher education, thereby making the act
applicable to the institution.
The bill would require the board, beginning July 1, 2015, to,
among other things, contract with the Office of the Attorney General
to establish a process for board staff to be trained to investigate
complaints filed with the board, post specified information on its
Internet Web site, establish a task force to identify standards for
specified educational and training programs and provide a report to
the Legislature regarding those programs, and adopt minimum operating
standards for an institution that ensure, among other things, that
an institution offering a degree is accredited and that an
unaccredited institution offering a degree satisfies certain
requirements. The bill would require the board to submit a report to
the Legislature, on or before October 1, 2015, on its efforts to
streamline the process by which an institution is approved or denied
by the board for an approval to operate, to submit a report to the
Legislature relating to an independent review of its staffing
resources, and to contract with the Office of the Attorney General
for investigative and prosecutorial services if certain conditions
are satisfied.
The bill would make other technical and conforming changes.
The act establishes the Student Tuition Recovery Fund and requires
the bureau to adopt regulations governing the administration and
maintenance of the fund, including requirements relating to
assessments on students and student claims against the fund, and
establishes that the moneys in this fund are continuously
appropriated to the bureau for specified purposes.
This bill would require those regulations to ensure that students
are eligible for payment from the fund in specified circumstances.
Existing law repeals that act on January 1, 2015.
This bill would instead repeal that act on January 1,
2019 2017 , thus extending the operation of the
act by 4 2 years.
The act establishes the Student Tuition Recovery Fund under the
administration of the bureau, and establishes that the moneys in this
fund are continuously appropriated to the bureau for specified
purposes.
By extending the operation of this the
Student Tuition Recovery Fund, a continuously appropriated
fund, this bill would make an appropriation.
Under existing law, the act specifies conduct by regulated
institutions that, if undertaken, is a crime.
Because this bill would extend the application of those criminal
provisions, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 27 of the Business
and Professions Code is amended to read:
27. (a) Each entity specified in subdivisions (c), (d), and (e)
shall provide on the Internet information regarding the status of
every license issued by that entity in accordance with the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and the Information
Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of
Title 1.8 of Part 4 of Division 3 of the Civil Code). The public
information to be provided on the Internet shall include information
on suspensions and revocations of licenses issued by the entity and
other related enforcement action, including accusations filed
pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) taken by the entity relative to persons, businesses,
or facilities subject to licensure or regulation by the entity. The
information may not include personal information, including home
telephone number, date of birth, or social security number. Each
entity shall disclose a licensee's address of record. However, each
entity shall allow a licensee to provide a post office box number or
other alternate address, instead of his or her home address, as the
address of record. This section shall not preclude an entity from
also requiring a licensee, who has provided a post office box number
or other alternative mailing address as his or her address of record,
to provide a physical business address or residence address only for
the entity's internal administrative use and not for disclosure as
the licensee's address of record or disclosure on the Internet.
(b) In providing information on the Internet, each entity
specified in subdivisions (c) and (d) shall comply with the
Department of Consumer Affairs Guidelines for Access to Public
Records.
(c) Each of the following entities within the Department of
Consumer Affairs shall comply with the requirements of this section:
(1) The Board for Professional Engineers, Land Surveyors, and
Geologists shall disclose information on its registrants and
licensees.
(2) The Bureau of Automotive Repair shall disclose information on
its licensees, including auto repair dealers, smog stations, lamp and
brake stations, smog check technicians, and smog inspection
certification stations.
(3) The Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation shall disclose information on its
licensees and registrants, including major appliance repair dealers,
combination dealers (electronic and appliance), electronic repair
dealers, service contract sellers, and service contract
administrators.
(4) The Cemetery and Funeral Bureau shall disclose information on
its licensees, including cemetery brokers, cemetery salespersons,
cemetery managers, crematory managers, cemetery authorities,
crematories, cremated remains disposers, embalmers, funeral
establishments, and funeral directors.
(5) The Professional Fiduciaries Bureau shall disclose information
on its licensees.
(6) The Contractors' State License Board shall disclose
information on its licensees and registrants in accordance with
Chapter 9 (commencing with Section 7000) of Division 3. In addition
to information related to licenses as specified in subdivision (a),
the board shall also disclose information provided to the board by
the Labor Commissioner pursuant to Section 98.9 of the Labor Code.
(7) The Bureau Board for Private
Postsecondary Education shall disclose information on private
postsecondary institutions under its jurisdiction, including
disclosure of notices to comply issued pursuant to Section 94935 of
the Education Code.
(8) The California Board of Accountancy shall disclose information
on its licensees and registrants.
(9) The California Architects Board shall disclose information on
its licensees, including architects and landscape architects.
(10) The State Athletic Commission shall disclose information on
its licensees and registrants.
(11) The State Board of Barbering and Cosmetology shall disclose
information on its licensees.
(12) The State Board of Guide Dogs for the Blind shall disclose
information on its licensees and registrants.
(13) The Acupuncture Board shall disclose information on its
licensees.
(14) The Board of Behavioral Sciences shall disclose information
on its licensees, including marriage and family therapists, licensed
clinical social workers, licensed educational psychologists, and
licensed professional clinical counselors.
(15) The Dental Board of California shall disclose information on
its licensees.
(16) The State Board of Optometry shall disclose information
regarding certificates of registration to practice optometry,
statements of licensure, optometric corporation registrations, branch
office licenses, and fictitious name permits of its licensees.
(17) The Board of Psychology shall disclose information on its
licensees, including psychologists, psychological assistants, and
registered psychologists.
(d) The State Board of Chiropractic Examiners shall disclose
information on its licensees.
(e) The Structural Pest Control Board shall disclose information
on its licensees, including applicators, field representatives, and
operators in the areas of fumigation, general pest and wood
destroying pests and organisms, and wood roof cleaning and treatment.
(f) "Internet" for the purposes of this section has the meaning
set forth in paragraph (6) of subdivision (f) of Section 17538.
SEC. 2. Section 94800.5 of the
Education Code is amended to read:
94800.5. Whenever a reference is made to the former Private
Postsecondary Education and Student Protection Act, the former
Private Postsecondary and Vocational Education Reform Act of 1989, or
the former Chapter 7 (commencing with Section 94700) of Part 59 of
Division 10 of Title 3 of the Education Code, as it read on June 30,
2007, by the provisions of any statute or regulation, it shall be
construed as referring to the provisions of this chapter. Whenever a
reference is made to the former Bureau for Private Postsecondary and
Vocational Education , or the Bureau for Private Postsecondary
Education, by the provisions of any statute or regulation, it
shall be construed as referring to the Bureau
Board for Private Postsecondary Education.
SEC. 3. Section 94801 of the Education
Code is amended to read:
94801. The Legislature finds and declares all of the following:
(a) In 2007, 2013, more than
400,000 300,000 Californians attended
more than 1,500 1,100 private
postsecondary schools in California.
(b) Private postsecondary schools can complement the public
education system and help develop a trained workforce to meet the
demands of California businesses and the economy ; however,
concerns about the value of degrees and diplomas issued by private
postsecondary schools, and the lack of protections for private
postsecondary school students and consumers of those schools'
services, have highlighted the need for strong state-level oversight
of private postsecondary schools .
(c) Numerous reports and studies have concluded that California's
previous attempts at regulatory oversight of private postsecondary
schools have consistently failed to ensure student
protections or provide effective oversight of private postsecondary
schools. Previous laws and regulatory oversight were allowed
to expire on June 30, 2007, with some skeletal functions, continued
by urgency legislation, that were allowed to expire on June 30, 2008.
(d) It is the intent of the Legislature in enacting this
chapter establishing the Board for Private
Postsecondary Education for two years to ensure all of the
following:
(1) Minimum educational quality standards and opportunities for
success for California students attending private postsecondary
schools in California.
(2) Meaningful student protections through essential avenues of
recourse for students.
(3) A regulatory structure that provides for an appropriate level
of oversight.
(4) A regulatory governance structure that ensures that all
stakeholders have a voice and are heard in policymaking by the
new bureau created by this chapter board
.
(5) A regulatory governance structure that provides for
accountability and oversight by the Legislature through program
monitoring and periodic reports.
(6) Prevention of the deception of the public that results from
conferring, and use of, fraudulent or substandard degrees.
(e) The Legislature advises future policymakers to continually and
carefully evaluate this chapter and its administration and
enforcement. Where there are deficiencies in the law or regulatory
oversight, the Governor and the Legislature should act quickly to
correct them.
SEC. 4. Section 94802 of the Education
Code is amended to read:
94802. (a) An institution
that had a valid approval to operate on June 30, 2007, issued by the
former Bureau for Private Postsecondary and Vocational Education
pursuant to former Chapter 7 (commencing with Section 94700) of Part
59 of Division 10 of Title 3 of the Education Code, as it read on
June 30, 2007, shall maintain that approval under this chapter. For
the purposes of this chapter, the approval to operate shall be valid
for three calendar years after the expiration date of the approval,
as it read on June 30, 2007.
(b) Applications to renew an approval to operate that had been
pending action before the former Bureau for Private Postsecondary and
Vocational Education on June 30, 2007, shall be deemed processed as
follows:
(1) Applications received prior to January 1, 2006, shall be
granted an approval to operate until 2012 to coincide with the
anniversary date of the current approval to operate date.
(2) Applications received after January 1, 2006, shall be granted
an approval to operate until 2013 to coincide with the anniversary
date of the current approval to operate.
(c) Students seeking to enroll in institutions approved under
subdivision (b) shall be notified in writing by the institution,
prior to executing an enrollment agreement, that, although the
institution was approved to operate by the former Bureau for Private
Postsecondary and Vocational Education, the institution's application
for reapproval to operate has not been reviewed by the bureau
pursuant to this chapter.
SEC. 5. Section 94803 of the Education
Code is repealed.
94803. The bureau shall, by emergency regulation, amend, and
repeal as necessary, the regulations, as they read on June 30, 2007,
in Division 7.5 (commencing with Section 70000) of Title 5 of the
California Code of Regulations, to conform to this chapter no later
than February 1, 2010. These emergency regulations shall become
permanent through the regular rulemaking process within one year of
the enactment of this chapter.
SEC. 6. Section 94804 of the Education
Code is amended to read:
94804. (a) Each unresolved matter submitted to the former Bureau
for Private Postsecondary and Vocational Education prior to July 1,
2007, shall be deemed to remain pending before the bureau
board irrespective of any applicable deadlines.
With respect to any deadline applicable to a pending matter, no time
shall be deemed to have elapsed from July 1, 2007, to January 1,
2010, inclusive.
(1) For the purposes of this subdivision, "matter" includes, but
is not limited to, an appeal, a complaint, a claim, an evaluation, a
hearing, or an investigation.
(2) For the purposes of this subdivision, "matter" does not
include a Student Tuition Recovery Fund claim.
(b) Student complaints submitted from July 1, 2007, to December
31, 2009, inclusive, shall continue to be duly recorded and
investigated by the bureau board .
SEC. 7. Section 94805 of the Education
Code is repealed.
94805. For the performance of the duties and exercise of the
powers vested in the bureau, the bureau shall have possession and
control of all records, papers, offices, equipment, supplies, or
other property, real or personal, held for the benefit or use by the
former Bureau for Private Postsecondary and Vocational Education.
SEC. 8. Section 94808 of the Education
Code is amended to read:
94808. (a) Any Student Tuition Recovery Fund claims received by
the former Bureau for Private Postsecondary and Vocational Education
prior to July 1, 2007, that were not processed by the former Bureau
for Private Postsecondary and Vocational Education and were not paid
by the Department of Consumer Affairs from July 1, 2007, to June 30,
2008, inclusive, shall be processed by the bureau
board .
(b) Any Student Tuition Recovery Fund claims received by the
Department of Consumer Affairs from July 1, 2007, to December 31,
2009, inclusive, shall be processed by the bureau
board .
(c) Student Tuition Recovery Fund claims filed with, and approved
by, the former Bureau for Private Postsecondary and Vocational
Education as of June 30, 2007, if not already paid, shall be paid
before any claims approved after that date.
(d) The student's right to recovery from the Student Tuition
Recovery Fund shall be based on the law that was in effect when the
student enrolled and a fee for the fund was charged as a part of
tuition costs, even though that law has become inoperative, been
repealed, or otherwise expired.
SEC. 9. Section 94809 of the Education
Code is amended to read:
94809. (a) (1) An institution that had an application for an
approval to operate pending with the former Bureau for Private
Postsecondary and Vocational Education on June 30, 2007, may continue
to operate until a decision is made in regard to the
institution regarding the application for approval to operate ,
but shall comply with, and is subject to, this chapter, and shall
submit an application for an approval to operate to the
bureau board pursuant to this chapter within six
months of that application becoming available.
(2) If the bureau board determines
that the application for an approval to operate that was pending with
the former Bureau for Private Postsecondary and Vocational Education
on June 30, 2007, satisfies the requirements of the new application
for an approval to operate, the submission of the previous
application may be deemed to satisfy the requirements of this
subdivision.
(b) An institution that did not have a valid approval to operate
issued by, and did not have an application for approval to operate
pending with, the former Bureau for Private Postsecondary and
Vocational Education on June 30, 2007, that began operations on or
after July 1, 2007, may continue to operate unless a denial of
approval to operate has been issued and ha s become final
, but shall comply with, and is subject to, this
chapter, and shall submit an application for an approval to operate
to the bureau pursuant to this chapter within six months of that
application becoming available chapter .
(c) Students seeking to enroll in institutions approved
operating under subdivisions (a) and (b) shall
be notified by the institution, in writing and prior to executing an
enrollment agreement, that the institution's application for approval
to operate has not been reviewed by the bureau
board .
(d) An institution that is permitted to operate pursuant to
subdivision (a) or (b) shall not use the terms "approval," "approved,"
"approval to operate," or "approved to operate" without clearly
stating that the institution's application for approval has not been
reviewed by the bureau board .
(e) (1) An institution that is denied an approval to operate
pursuant to subdivision (a) or (b) may file an appeal pursuant to the
procedures established in Section 94888.
(2) An institution that has filed an appeal may continue to
operate during the appeal process but must disclose in a written
statement approved by the board, to the public and all current and
prospective students, that the institution's application for approval
to operate was denied by the board because the board has determined
the application did not satisfy minimum requirements for educational
capacity, that the institution is appealing the board's decision, and
that the loss of the appeal may result in the institution's closure.
(3) If the board determines that the continued operation of an
institution poses a significant risk of harm to students, the board
shall make an emergency decision pursuant to Section 94938.
SEC. 10. Section 94809.5 of the
Education Code is amended to read:
94809.5. Notwithstanding any other provision of law:
(a) For any claims that a student had based on a violation of the
Private Postsecondary and Vocational Education Reform Act of 1989 on
or before June 30, 2007, the period of time from June 30, 2007, to
December 31, 2009, inclusive, shall be excluded in determining the
deadline or the statute of limitation for filing any claim with the
bureau board or a lawsuit based on any
claim.
(b) All claims described in subdivision (a), except claims to the
Student Tuition Recovery Fund, including those contained in a lawsuit
or other legal action, shall be determined or adjudicated based on
the law that was in effect when the violations or events took place,
even though those provisions have become inoperative, been repealed,
or otherwise expired.
SEC. 11. Section 94813 of the Education
Code is amended to read:
94813. "Accredited" means an institution is recognized
or approved accredited by an accrediting agency
recognized by the United States Department of Education.
SEC. 12. Section 94816 of the Education
Code is amended to read:
94816. "Applicant" means an institution that has submitted an
application to the bureau board for an
approval to operate or for a renewal of an approval to operate.
An applicant shall be the owner of an institution. Approvals to
operate shall be issued to applicants.
SEC. 13. Section 94818.5 is added to the
Business and Professions Code , to read:
94818.5. "Board" means the Board for Private Postsecondary
Education.
SEC. 14. Section 94820 of the Education
Code is repealed.
94820. "Bureau" means the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs.
SEC. 15. Section 94829 of the Education
Code is amended to read:
94829. "Default" means failure of a borrower and endorser, if
any, to make an installment payment for a loan received under the
federal student financial aid programs when due, or to meet other
terms of the promissory note, provided that this failure persists for
270 days if payment is due monthly or 360 days if payment is due
less frequently. For purposes of this section, "endorser" means
an individual who signs a promissory note and agrees to repay the
loan in the event that the borrower does not.
SEC. 16. Section 94833 of the Education
Code is repealed.
94833. "Director" means the Director of Consumer Affairs.
SEC. 17. Section 94838 of the Education
Code is amended to read:
94838. "Educational program approval" means authorization by the
bureau board , another government
agency of this state, or a federal government agency, to provide
educational programs, and is an element of an approval to operate.
SEC. 18. Section 94847 of the Education
Code is amended to read:
94847. "License and examination preparation" means instruction
designed to assist students to prepare for an examination for
licensure, or offered for the sole purpose of providing continuing
education in subjects licensees are required to take as a condition
of continued licensure. "License and examination
preparation " does not include an educational program
designed to instruct students in the field of the licensure
examination.
SEC. 19. Section 94861 of the Education
Code is amended to read:
94861. "Reporting period" means the institution's fiscal year or
any yearly period designated by the bureau
board to be covered in the institution's annual report.
SEC. 20. Section 94874 of the Education
Code is amended to read:
94874. The Except as provided in Section
94874.2, the following are exempt from this chapter:
(a) An institution that offers solely avocational or recreational
educational programs.
(b) An institution offering educational programs sponsored by a
bona fide trade, business, professional, or fraternal organization,
solely for that organization's membership.
(c) A postsecondary educational institution established, operated,
and governed by the federal government or by this state or its
political subdivisions.
(d) An institution offering either of the following:
(1) Test preparation for examinations required for admission to a
postsecondary educational institution.
(2) Continuing education or license examination preparation, if
the institution or the program is approved, certified, or sponsored
by any of the following:
(A) A government agency, other than the bureau
board , that licenses persons in a particular profession,
occupation, trade, or career field.
(B) A state-recognized professional licensing body, such as the
State Bar of California, that licenses persons in a particular
profession, occupation, trade, or career field.
(C) A bona fide trade, business, or professional organization.
(e) (1) An institution owned, controlled, and operated and
maintained by a religious organization lawfully operating as a
nonprofit religious corporation pursuant to Part 4 (commencing with
Section 9110) of Division 2 of Title 1 of the Corporations Code, that
meets all of the following requirements:
(A) The instruction is limited to the principles of that religious
organization, or to courses offered pursuant to Section 2789 of
Business and Professions Code.
(B) The diploma or degree is limited to evidence of completion of
that education.
(2) An institution operating under this subdivision shall offer
degrees and diplomas only in the beliefs and practices of the church,
religious denomination, or religious organization.
(3) An institution operating under this subdivision shall not
award degrees in any area of physical science.
(4) Any degree or diploma granted under this subdivision shall
contain on its face, in the written description of the title of the
degree being conferred, a reference to the theological or religious
aspect of the degree's subject area.
(5) A degree awarded under this subdivision shall reflect the
nature of the degree title, such as "associate of religious studies,"
"bachelor of religious studies," "master of divinity," or "doctor of
divinity."
(f) An institution that does not award degrees and that solely
provides educational programs for total charges of two thousand five
hundred dollars ($2,500) or less when no part of the total charges is
paid from state or federal student financial aid programs. The
bureau board may adjust this cost
threshold based upon the California Consumer Price Index and post
notification of the adjusted cost threshold on its Internet Web site,
as the bureau board determines,
through the promulgation of regulations, that the adjustment is
consistent with the intent of this chapter.
(g) A law school that is accredited by the Council of the Section
of Legal Education and Admissions to the Bar of the American Bar
Association or a law school or law study program that is subject to
the approval, regulation, and oversight of the Committee of Bar
Examiners, pursuant to Sections 6046.7 and 6060.7 of the Business and
Professions Code.
(h) A nonprofit public benefit corporation that satisfies all of
the following criteria:
(1) Is qualified under Section 501(c)(3) of the United States
Internal Revenue Code.
(2) Is organized specifically to provide workforce development or
rehabilitation services.
(3) Is accredited by an accrediting organization for workforce
development or rehabilitation services recognized by the Department
of Rehabilitation.
(i) An institution that is accredited by the Accrediting
Commission for Senior Colleges and Universities, Western Association
of Schools and Colleges, or the Accrediting Commission for Community
and Junior Colleges, Western Association of Schools and Colleges.
(j) An institution that satisfies all of the following criteria:
(1) The institution has been accredited, for at least 10 years, by
an accrediting agency that is recognized by the United States
Department of Education.
(2) The institution has operated continuously in this state for at
least 25 years.
(3) During its existence, the institution has not filed for
bankruptcy protection pursuant to Title 11 of the United States Code.
(4) The institution's cohort default rate on guaranteed student
loans does not exceed 10 percent for the most recent three years, as
published by the United States Department of Education.
(5) The institution maintains a composite score of 1.5 or greater
on its equity, primary reserve, and net income ratios, as provided
under Section 668.172 of Title 34 of the Code of Federal Regulations.
(6) The institution provides a pro rata refund of unearned
institutional charges to students who complete 75 percent or less of
the period of attendance.
(7) The institution provides to all students the right to cancel
the enrollment agreement and obtain a refund of charges paid through
attendance at the second class session, or the 14th day after
enrollment, whichever is later.
(8) The institution submits to the
bureau board copies of its most recent
IRS Form 990, the institution's Integrated Postsecondary Education
Data System Report of the United States Department of Education, and
its accumulated default rate.
(9) The institution is incorporated and lawfully operates as a
nonprofit public benefit corporation pursuant to Part 2 (commencing
with Section 5110) of Division 2 of Title 1 of the Corporations Code
and is not managed or administered by an entity for profit.
(k) Flight instruction providers or programs that provide flight
instruction pursuant to Federal Aviation Administration regulations
and meet both of the following criteria:
(1) The flight instruction provider or program does not require
students to enter into written or oral contracts of indebtedness.
(2) The flight instruction provider or program does not require
or accept prepayment of instruction-related costs in
excess of two thousand five hundred dollars ($2,500).
SEC. 21. Section 94874.1 of the
Education Code is amended to read:
94874.1. (a) An Except as provided in
Section 94874.2, an institution that is accredited
by a regional accrediting agency that is recognized by the United
States Department of Education, and is not an agency described in
subdivision (i) of Section 94874, is exempt from this chapter, except
Article 14 (commencing with Section 94923).
(b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 22. Section 94874.2 is added to the
Education Code , to read:
94874.2. An institution that is approved to participate in
veterans' financial aid programs pursuant to Section 21.4253 of Title
38 of the Code of Federal Regulations that is not an independent
institution of higher education, as defined in subdivision (b) of
Section 66010, may not claim an exemption from this chapter.
SEC. 23. Section 94874.7 of the
Education Code is amended to read:
94874.7. The bureau board shall
establish, by regulation, a process pursuant to which an institution
that is exempt from this chapter may request, and obtain, from the
bureau board verification that the
institution is exempt. The bureau board
shall establish a reasonable fee to reimburse the bureau's
board's costs associated with the implementation
of this section.
SEC. 24. Section 94874.8 of the
Education Code is amended to read:
94874.8. (a) An institution exempt from all or part of this
chapter pursuant to subdivision (i) or (j) of Section 94874 or
Section 94874.1 may apply to the bureau board
for an approval to operate pursuant to this section, but only
subject to all of the following provisions:
(1) The bureau board may approve the
operation of an institution that is exempt from all or part of this
chapter as specified above in accordance with the authority granted
pursuant to Article 6 (commencing with Section 94885). Upon issuing
an approval to operate to an institution pursuant to this section,
the bureau board is authorized to
regulate that institution through the full set of powers granted, and
duties imposed, by this chapter, as those powers and duties would
apply to an institution that is not exempt from this chapter.
(2) Notwithstanding any other law, upon issuance of an approval to
operate pursuant to this section, the institution is no longer
eligible for exemption, from the provisions of this chapter pursuant
to subdivision (i) or (j) of Section 94874 or Section 94874.1, unless
authorized by subsequent legislation.
(3) Upon issuance of an approval to operate pursuant to this
section, an institution is subject to all provisions of this chapter,
and any regulations adopted pursuant to this chapter, that apply to
an institution subject to this chapter, except as expressly provided
in paragraph (4).
(4) (A) With respect to the placement and salary or wage data
required to be collected, calculated, and reported by Article 16
(commencing with Section 94928), an institution issued an approval to
operate pursuant to this section is not required to report on its
first School Performance Fact Sheet any data from the period prior to
the date of the issuance of the approval to operate that the
institution was not required to collect and does not have available
to it. An institution shall, however, report available data collected
and calculated in accordance with this chapter and applicable
regulations, regardless of the purpose for which the data was
collected. If the required data is unavailable, the institution shall
also disclose the unavailability of the data on all documents
required by this chapter and regulations adopted pursuant to this
chapter. Upon receiving an approval to operate pursuant to this
section, an institution shall commence to collect and calculate all
information necessary to comply with Article 16 (commencing with
Section 94928).
(B) An institution receiving an approval to operate pursuant to
this section shall provide to prospective students the School
Performance Fact Sheet, file that fact sheet with the bureau
board , and post it on the institution's
Internet Web site no later than the first August 1 after the
institution is approved to operate and no later than August 1 of each
year thereafter. These School Performance Fact Sheets shall report
data for the previous two calendar years based upon the number of
students who began the program or the number of graduates for each
reported calendar year. If two calendar years have not passed since
the issuance of the approval to operate by the August 1 deadline for
the School Performance Fact Sheet, unless data for two years is
available, the institution shall report the required data for the
period subsequent to the date of the issuance of the notice of
approval.
(b) An institution exempt from all or part of this chapter
pursuant to subdivision (i) or (j) of Section 94874 or Section
94874.1 that was approved to operate by the bureau
board before the effective date of this section shall be
deemed to have been approved pursuant to this section.
SEC. 25. The heading of Article 5 (commencing with
Section 94875) of Chapter 8 of Part 59 of Division 10 of Title 3 of
the Education Code is amended to read:
Article 5. Bureau Board Powers
and Duties
SEC. 26. Section 94875 of the Education
Code is amended to read:
94875. The Bureau for Private Postsecondary Education,
as established by Section 6 of Chapter 635 of the Statutes of 2007,
is continued in existence and shall commence operations. This chapter
establishes the functions and responsibilities of the bureau, for
the purposes of Section 6 of Chapter 635 of the Statutes of 2007.
(a) The bureau board
shall regulate private postsecondary educational institutions
through the powers granted, and duties imposed, by this chapter. In
exercising its powers, and performing its duties, the protection of
the public shall be the bureau's board's
highest priority. If protection of the public is inconsistent
with other interests sought to be promoted, the protection of the
public shall be paramount. The board shall consist of 11 members
appointed as follows:
(1) Three members, who shall have a demonstrated record of
advocacy on behalf of consumers, one appointed by the Governor, one
by the Senate Committee on Rules, and one by the Speaker of the
Assembly.
(2) Two members, who shall be current or former students of
institutions, appointed by the Governor.
(3) Three members, who shall be representatives of institutions,
appointed by the Governor.
(4) Two public members with experience or expertise in
postsecondary education, appointed by the Governor.
(5) One public member with knowledge or expertise in emerging
fields of employment, appointed by the Governor.
(b) A person who was a member of the former Advisory Committee to
the Bureau for Private Postsecondary Education, established pursuant
to Section 94880, as that section read on January 1, 2014, is
eligible to be appointed to the board pursuant to subdivision (a).
SEC. 27. Section 94875.5 is added to the
Education Code , to read:
94875.5. Notwithstanding any other provision of this chapter, the
Bureau for Private Postsecondary Education shall continue in
existence and administer the provisions of this chapter until July 1,
2015. As of that date, the bureau shall cease operations, and the
board shall assume all authority, including the powers, functions,
and jurisdiction until then vested in the bureau. The board may
enforce all disciplinary actions undertaken by the bureau. For the
performance of these duties and exercise of these powers, the board
shall have possession and control of all records, papers, offices,
equipment, supplies, or other property, real or personal, held for
the benefit of or use by the bureau.
SEC. 28. Section 94876 of the Education
Code is amended to read:
94876. (a) The powers and duties set forth in this chapter are
vested in the Director of Consumer Affairs, who may delegate them to
a bureau chief, subject to the provisions of this section.
94876. (a) The bureau
chief executive officer of the board shall be
appointed by the Governor, subject to confirmation by the Senate
Committee on Rules , and is exempt from the State Civil
Service Act pursuant to Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code.
(c) Each power granted to, or duty imposed upon, the bureau under
this chapter shall be exercised and performed in the name of the
bureau, subject to any conditions and limitations the director may
prescribe. The bureau chief may delegate any powers or duties to a
designee.
(d) As may be necessary to carry out this chapter, the director,
in accordance with the State Civil Service Act, may appoint and fix
the compensation of personnel.
(b) The executive officer of the board shall exercise the powers
and perform the duties delegated by the board.
SEC. 29. Section 94877 of the Education
Code is amended to read:
94877. (a) The bureau board shall
adopt , on or before January 1, 2011, and shall
enforce, enforce regulations to
implement this chapter pursuant to the Administrative Procedure Act
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code.
(b) The bureau board shall develop
and implement an enforcement program, pursuant to Article 18
(commencing with Section 94932) to implement this chapter. The
enforcement program shall include a plan for investigating complaints
filed with the bureau. board. The board
shall contract with the Office of the Attorney General to establish a
process for the board's staff to be trained to investigate
complaints, including, but not limited to, the information, evidence,
and materials needed to process complaints.
(c) The bureau board shall establish
a program to proactively identify unlicensed institutions, identify
material or repeated violations of this chapter and regulations
implementing this chapter, and take all appropriate legal action.
(d) The board shall, by January 1, 2016, initiate the process and
procedures governing its approval or denial of applications for
approval to operate in accordance with board regulations adopted
pursuant to Section 94888, for every application pending as of
January 1, 2015.
SEC. 30. Section 94878 of the Education
Code is amended to read:
94878. (a) On or before June 30, 2010, the bureau
The board shall establish an Internet Web site
that includes at least all of the following information:
(1) An explanation of the bureau's transition plan for
the reconstituted bureau and an explanation of the bureau's
board's scope of authority.
(2) (A) A directory of approved institutions, and a link, if
feasible, to the Internet Web site of each institution.
(B) For each institution, the directory shall be developed in a
manner that allows the user to search by institution and shall
include all of the following information:
(i) The status of the institution's approval to operate.
(ii) The information provided by the institutions including, but
not limited to, the annual report, as required by Section 94934,
including the school catalog and the Student Performance Fact Sheet.
The Student Performance Fact Sheet shall be maintained on the
directory for at least five years after the date of its submission to
the bureau board .
(iii) The disciplinary history of the institution, which shall
include, but shall not be limited to, all of the following:
(I) Pending formal accusations filed by the bureau
board .
(II) Suspensions, revocations, citations, fines, infractions,
probations, pending litigation filed by the bureau
board , and final judgments resulting from litigation
filed by the bureau board .
(III) Pending or final criminal cases filed by the Attorney
General, a city attorney, a district attorney, or a federal law
enforcement official, of which the bureau
board has received notice.
(IV) Final administrative actions by the United State Department
of Education, including orders requiring restitution to students.
(V) Final disciplinary actions by an accreditation agency, of
which the bureau board has received
notice pursuant to Section 94934.
(b) The bureau board shall maintain
the Internet Web site described in subdivision (a). The
bureau board shall ensure that the information
specified in subdivision (a) is kept current. The bureau
board shall update the Internet Web site at
least annually, to coincide with the submission of annual reports by
the institutions pursuant to Section 94934.
(c) In addition to maintaining the Internet Web site described in
subdivision (a), the bureau shall provide the information described
in paragraph (2) of subdivision (a) to the California Postsecondary
Education Commission (CPEC), and the CPEC shall include that
information in an Internet Web site directory of school performance
data maintained by the CPEC. To the extent possible, the bureau shall
provide this information consistent with the information collected
for reporting to the Integrated Postsecondary Education Data System
of the United States Department of Education, including institutional
characteristics, completion, annual enrollment, and graduation
rates.
(c) (1) The board shall post on its Internet Website a list of all
institutions that were denied approval to operate, and describe in
clear and conspicuous language the reason the institution was denied
approval. The board shall include the statement provided in paragraph
(2) on its Internet Web site.
(2) "The following institutions were denied approval to operate by
the Board for Private Postsecondary Education for failing to satisfy
the standards relating to educational quality, or consumer
protection, or both. These unlicensed institutions are not operating
in compliance with the law, and students are strongly discouraged
from attending these institutions."
SEC. 31. Section 94879 of the Education
Code is amended to read:
94879. The bureau board shall
conduct an outreach program to secondary school students as well as
prospective and current private postsecondary students, to provide
them with information on how to best select a private postsecondary
institution, how to enter into enrollment agreements, how to make
informed decisions in the private postsecondary education
marketplace, and how to contact the bureau
board for assistance. The bureau board
may accomplish the purposes of this section in cooperation with
the department other state or local
entities, or both .
SEC. 32. Section 94880 of the Education
Code is repealed.
94880. (a) There is within the bureau a 12-member advisory
committee. On or before July 1, 2010, the members of the committee
shall be appointed as follows:
(1) Three members, who shall have a demonstrated record of
advocacy on behalf of consumers, of which the Director of Consumer
Affairs, the Senate Committee on Rules, and the Speaker of the
Assembly shall each appoint one member.
(2) Two members, who shall be current or past students of
institutions, appointed by the Director of Consumer Affairs.
(3) Three members, who shall be representatives of institutions,
appointed by the Director of Consumer Affairs.
(4) Two members, which shall be employers that hire students,
appointed by the Director of Consumer Affairs.
(5) One public member appointed by the Senate Committee on Rules.
(6) One public member appointed by the Speaker of the Assembly.
(b) The advisory committee shall advise the bureau with respect to
matters relating to private postsecondary education and the
administration of this chapter, including annually reviewing the fee
schedule, licensing, and enforcement provisions of this chapter.
(c) The bureau shall actively seek input from, and consult with,
the advisory committee regarding the development of regulations to
implement this chapter.
SEC. 33. Section 94880 is added to the
Education Code , to read:
94880. (a) (1) The board shall establish a task force to
determine standards for educational and training programs
specializing in innovative subject matters and instructing students
in high demand technology fields for which there is a demonstrated
shortage of skilled employees. The members of the task force may
include high technology employers, students of short-term focused
high technology training programs, and providers of high technology
training in subjects including, but not necessarily limited to,
programming, software development, computer science, and coding.
(2) (A) The board shall provide a report to the Legislature
regarding educational and training programs subject to paragraph (1),
and the institutions offering those programs, no later than January
1, 2016. The report shall include the board's evaluation of all of
the following:
(i) Whether students attending these institutions should receive
certain disclosures prior to enrollment in a program.
(ii) Whether the means of reporting student outcomes and the
content of those reports are appropriate.
(iii) Whether institutions that satisfy certain criteria should be
regulated by the board and by this chapter.
(iv) The steps the board and the state may take to promote the
growth of high-quality training programs in skills for high
technology occupations.
(B) (i) The requirement for submitting a report imposed under this
paragraph is inoperative on January 1, 2019, pursuant to Section
10231.5 of the Government Code.
(ii) A report to be submitted pursuant to this paragraph shall be
submitted in compliance with Section 9795 of the Government Code.
(b) For an institution that is offering high technology training
in programming, software development, computer science, or coding,
and that is in the process of complying with this chapter through an
application for approval to operate from the board, the board may
defer processing the institution's application until January 1, 2016.
SEC. 34. Section 94881 of the Education
Code is amended to read:
94881. The bureau board may conduct
workshops to provide applicants and institutions information on
application processes, compliance with this chapter, best practices
for providing postsecondary educational programs, and other subjects
concerning postsecondary education.
SEC. 35. Section 94882 of the Education
Code is amended to read:
94882. The bureau board may empanel
visiting committees to assist in evaluating an institution's
application for an approval to operate. The members of visiting
committees shall serve at no expense to the state, except that the
bureau board may reimburse the members
of visiting committees for actual travel and per diem expenses
incurred during the evaluation. The bureau
board may seek reimbursement for the travel and per diem costs
from the institution that is the subject of an evaluation.
SEC. 36. Section 94883 of the Education
Code is amended to read:
94883. (a) Any individual serving on a visiting committee who
provides information to the bureau board
, or its staff, in the course of evaluating any institution, or
who testifies in any administrative hearing arising under this
chapter, is entitled to a defense and indemnification in any action
arising out of the information or testimony provided as if he or she
were a public employee.
(b) Any defense and indemnification shall be solely with respect
to the action pursuant to Article 4 (commencing with Section 825) of
Chapter 1 of Part 2 of, and Part 7 (commencing with Section 995) of
Division 3.6 of Title 1 of, the Government Code.
SEC. 37. Section 94884 of the Education
Code is amended to read:
94884. The bureau board is subject
to Section 27 of the Business and Professions Code.
SEC. 38. Section 94885 of the Education
Code is amended to read:
94885. The bureau board shall
, by January 1, 2011, adopt by regulation minimum
operating standards for an institution that shall reasonably ensure
that all of the following occur:
(a) The content of each educational program can achieve its stated
objective.
(b) The institution maintains specific written standards for
student admissions for each educational program and those standards
are related to the particular educational program.
(c) The facilities, instructional equipment, and materials are
sufficient to enable students to achieve the educational program's
goals.
(d) The institution maintains a withdrawal policy and provides
refunds.
(e) The directors, administrators, and faculty are properly
qualified.
(f) The institution is financially sound and capable of fulfilling
its commitments to students.
(g) That, upon satisfactory completion of an educational program,
the institution gives students a document signifying the degree or
diploma awarded.
(h) Adequate records and standard transcripts are maintained and
are available to students.
(i) The institution is maintained and operated in compliance with
this chapter and all other applicable ordinances and laws.
(j) (1) An institution offering a degree is accredited by an
accrediting agency recognized by the United States Department of
Education.
(2) An unaccredited institution offering a degree that is approved
to operate by the bureau as of January 1, 2015, shall have until
January 1, 2016, to obtain and provide evidence of its candidacy or
preaccreditation status with an accrediting agency recognized by the
United States Department of Education, and to obtain and provide
evidence of accreditation from that accrediting agency on or before
January 1, 2017.
SEC. 39. Section 94887 of the Education
Code is amended to read:
94887. An approval to operate shall be granted only after an
applicant has presented sufficient evidence to the bureau
board , and the bureau
board has independently verified the information provided by the
applicant through site visits or other methods deemed appropriate by
the bureau board , that the applicant
has the capacity to satisfy the minimum operating standards. The
bureau board shall deny an application
for an approval to operate if the application does not satisfy those
standards.
SEC. 40. Section 94888 of the Education
Code is amended to read:
94888. (a) The bureau board shall
, by January 1, 2011, adopt by regulation both of
the following:
(1) The process and procedures whereby an institution seeking
approval to operate may apply for and obtain an approval to operate.
(2) The process and procedures governing the bureau's
board's approval and denial of applications for
approval to operate, including the process and procedures whereby an
applicant for which an application has been denied may appeal that
denial.
(b) The bureau board shall, by
regulation, establish a process for issuing a notification of a
denial of an approval to operate to an institution that submits an
application for approval to operate and for which that application is
denied. The notification of denial shall include a statement of
reasons for the denial.
SEC. 4 1. Section 94890 of the
Education Code is amended to read:
94890. (a) (1) The bureau board
shall grant an institution that is accredited an approval to operate
by means of its accreditation.
(2) The bureau board shall
, by January 1, 2011, adopt by regulation ,
the process and procedures whereby an institution that is
accredited may apply for and obtain an approval by means of that
accreditation.
(b) The term of an approval to operate pursuant to
this section shall be coterminous with the term of accreditation.
Upon renewal of the institution's accreditation, the institution
shall submit verification to the bureau board
, on a form provided by the bureau
board , that the institution's accreditation has been renewed.
(c) Institutions that are granted an approval to operate by means
of the institution's accreditation shall comply with all other
applicable requirements in this chapter.
SEC. 42. Section 94891 of the Education
Code is amended to read:
94891. (a) The bureau board shall
, by January 1, 2011, adopt by regulation the
process and procedures whereby an institution may obtain a renewal of
an approval to operate.
(b) To be granted a renewal of an approval to operate, the
institution shall demonstrate its continued capacity to meet the
minimum operating standards.
(c) (1) An institution that is denied renewal of an approval to
operate may file an appeal in accordance with the procedures
established by the board pursuant to Section 94888.
(2) An institution that has filed an appeal of a denial of a
renewal application may continue to operate during the appeal
process, but must disclose in a written statement, approved by the
board, to the public and all current and prospective students, that
the institution's application for renewal of approval to operate was
denied by the board because the board determined the application did
not satisfy minimum requirements for educational capacity, that the
institution is appealing the board's decision, and that the loss of
the appeal may result in the institution's closure.
(3) If the board determines that the continued operation of the
institution during the appeal process poses a significant risk of
harm to students, the board shall make an emergency decision pursuant
to its authority provided in Section 94938.
SEC. 43. Section 94892 of the Education
Code is amended to read:
94892. If an agency of this state other than the bureau
board or of the federal government provides an
approval to offer an educational program and the institution already
has a valid approval to operate issued by the bureau
board , that agency's educational program
approval may satisfy the requirements of this article without any
further review by the bureau board .
The bureau board may incorporate that
educational program into the institution's approval to operate when
the bureau board receives documentation
signifying the conferral of the educational program approval by that
agency.
SEC. 44. Section 94893 of the Education
Code is amended to read:
94893. If an institution intends to make a substantive change to
its approval to operate, the institution shall receive prior
authorization from the bureau board .
Except as provided in subdivision (a) of Section 94896, if the
institution makes the substantive change without prior
bureau board authorization, the institution's
approval to operate may be suspended or revoked.
SEC. 45. Section 94895 of the Education
Code is amended to read:
94895. The bureau board shall
, by January 1, 2011, adopt by regulation the
process and procedures whereby an institution shall seek
authorization for substantive changes to an approval to operate.
SEC. 46. Section 94896 of the Education
Code is amended to read:
94896. (a) An institution that has been granted an approval to
operate by means of accreditation shall only make a substantive
change in accordance with the institution's accreditation standards.
(b) The institution shall notify the bureau
board of the substantive change on a form provided by the
bureau board .
SEC. 47. Section 94897 of the Education
Code is amended to read:
94897. An institution shall not do any of the following:
(a) Use, or allow the use of, any reproduction or facsimile of the
Great Seal of the State of California on a diploma.
(b) Promise or guarantee employment, or otherwise overstate the
availability of jobs upon graduation.
(c) Advertise concerning job availability, degree of skill, or
length of time required to learn a trade or skill unless the
information is accurate and not misleading.
(d) Advertise, or indicate in promotional material, without
including the fact that the educational programs are delivered by
means of distance education if the educational programs are so
delivered.
(e) Advertise, or indicate in promotional material, that the
institution is accredited, unless the institution has been accredited
by an accrediting agency.
(f) Solicit students for enrollment by causing an advertisement to
be published in "help wanted" columns in a magazine, newspaper, or
publication, or use "blind" advertising that fails to identify the
institution.
(g) Offer to compensate a student to act as an agent of the
institution with regard to the solicitation, referral, or recruitment
of any person for enrollment in the institution, except that an
institution may award a token gift to a student for referring an
individual, provided that the gift is not in the form of money, no
more than one gift is provided annually to a student, and the gift's
cost is not more than one hundred dollars ($100).
(h) Pay any consideration to a person to induce that person to
sign an enrollment agreement for an educational program.
(i) Use a name in any manner improperly implying any of the
following:
(1) The institution is affiliated with any government agency,
public or private corporation, agency, or association if it is not,
in fact, thus affiliated.
(2) The institution is a public institution.
(3) The institution grants degrees, if the institution does not
grant degrees.
(j) In any manner make an untrue or misleading change in, or
untrue or misleading statement related to, a test score, grade or
record of grades, attendance record, record indicating student
completion, placement, employment, salaries, or financial
information, including any of the following:
(1) A financial report filed with the bureau
board .
(2) Information or records relating to the student's eligibility
for student financial aid at the institution.
(3) Any other record or document required by this chapter or by
the bureau board .
(k) Willfully falsify, destroy, or conceal any document of record
while that document of record is required to be maintained by this
chapter.
(l) Use the terms "approval," "approved," "approval to operate,"
or "approved to operate" without stating clearly and conspicuously
that approval to operate means compliance with state standards as set
forth in this chapter. If the bureau board
has granted an institution approval to operate, the institution
may indicate that the institution is "licensed" or "licensed to
operate," but may not state or imply either of the following:
(1) The institution or its educational programs are endorsed or
recommended by the state or by the bureau
board .
(2) The approval to operate indicates that the institution exceeds
minimum state standards as set forth in this chapter.
(m) Direct any individual to perform an act that violates this
chapter, to refrain from reporting unlawful conduct to the
bureau board or another government agency, or to
engage in any unfair act to persuade a student not to complain to
the bureau board or another government
agency.
(n) Compensate an employee involved in recruitment, enrollment,
admissions, student attendance, or sales of educational materials to
students on the basis of a commission, commission draw, bonus, quota,
or other similar method related to the recruitment, enrollment,
admissions, student attendance, or sales of educational materials to
students, except as provided in paragraph (1) or (2):
(1) If the educational program is scheduled to be completed in 90
days or less, the institution shall pay compensation related to a
particular student only if that student completes the educational
program.
(2) For institutions participating in the federal student
financial aid programs, this subdivision shall not prevent the
payment of compensation to those involved in recruitment, admissions,
or the award of financial aid if those payments are in conformity
with federal regulations governing an institution's participation in
the federal student financial aid programs.
(o) Require a prospective student to provide personal contact
information in order to obtain, from the institution's Internet Web
site, educational program information that is required to be
contained in the school catalog or any information required pursuant
to the consumer information requirements of Title IV of the federal
Higher Education Act of 1965, and any amendments thereto.
(p) Offer an associate, baccalaureate, master's, or doctoral
degree without disclosing to prospective students prior to enrollment
whether the institution or the degree program is unaccredited and
any known limitation of the degree, including, but not limited to,
all of the following:
(1) Whether a graduate of the degree program will be eligible to
sit for the applicable licensure exam in California and other states.
(2) A statement that reads: "A degree program that is unaccredited
or a degree from an unaccredited institution is not recognized for
some employment positions, including, but not limited to, positions
with the State of California."
(3) That a student enrolled in an unaccredited institution is not
eligible for federal financial aid programs.
SEC. 48. Section 94898 of the Education
Code is amended to read:
94898. (a) An institution shall not merge classes unless all of
the students have received the same amount of instruction. This
subdivision does not prevent the placement of students, who are
enrolled in different educational programs, in the same class if that
class is part of each of the educational programs and the placement
in a merged class will not impair the students' learning of the
subject matter of the class.
(b) After a student has enrolled in an educational program, the
institution shall not do either of the following:
(1) Make any unscheduled suspension of any class unless caused by
circumstances beyond the institution's control.
(2) Change the day or time during the period of attendance in
which any class is offered to a day when the student is not scheduled
to attend the institution or to a time that is outside of the range
of time that the student is scheduled to attend the institution on
the day for which the change is proposed unless at least 90 percent
of the students who are enrolled consent to the change and the
institution offers full refunds to the students who do not consent to
the change. For the purpose of this paragraph, "range of time" means
the period beginning with the time at which the student's first
scheduled class session for the day is set to start and ending with
the time the student's last scheduled class session for that day is
set to finish.
(c) If an institution enrolls a student in an educational program
that is conducted at a specific site at the time of enrollment, the
institution shall not convert the educational program to another
method of delivery, such as by means of distance education. This
subdivision does not apply to an educational program that also
includes a distance education component, if the student is notified
during the enrollment process, in writing, that the program contains
a distance education component.
(d) An institution shall not move the location of class
instruction more than 25 miles from the location of instruction at
the time of enrollment unless any of the following occur:
(1) The institution discloses in writing to each student before
enrollment in the educational program that the location of
instruction will change after the educational program begins and the
address of the new location.
(2) The institution applies for, and the bureau
board grants, approval to change the location. The
bureau board shall grant the
application within 60 days if the bureau
board , after notice to affected students and an opportunity
for them to be heard as prescribed by the bureau
board , concludes that the change in location would not be
unfair or unduly burdensome to students. The bureau
board may grant approval to change the location
subject to reasonable conditions, such as requiring the institution
to provide transportation, transportation costs, or refunds to
adversely affected students.
(3) The institution offers a full refund to students enrolled in
the educational program who do not voluntarily consent to the change.
(4) An unforeseeable and unavoidable circumstance outside of the
control of the institution requires the change in the location of
instruction.
SEC. 49. Section 94900.7 of the
Education Code is amended to read:
94900.7. The recordkeeping requirements of this article shall not
apply to an institution that is accredited, if the recordkeeping
requirements of the accrediting organization are substantially
similar to the recordkeeping requirements of this article, as
determined by the bureau board .
SEC. 50. Section 94904 of the Education
Code is amended to read:
94904. (a) Before an ability-to-benefit student may execute an
enrollment agreement, the institution shall have the student take an
independently administered examination from the list of examinations
prescribed by the United States Department of Education pursuant to
Section 484(d) of the federal Higher Education Act of 1965 (20 U.S.C.
Sec. 1070a et seq.) as it is, from time to time, amended. The
student shall not enroll unless the student achieves a score, as
specified by the United States Department of Education, demonstrating
that the student may benefit from the education and training being
offered.
(b) If the United States Department of Education does not have a
list of relevant examinations that pertain to the intended
occupational training, the bureau board
may publish its own list of acceptable examinations.
SEC. 51. Section 94909 of the Education
Code is amended to read:
94909. (a) Prior to enrollment, an institution shall provide a
prospective student, either in writing or electronically, with a
school catalog containing, at a minimum, all of the following:
(1) The name, address, telephone number, and, if applicable,
Internet Web site address of the institution.
(2) Except as specified in Article 2 (commencing with Section
94802), a statement that the institution is a private institution and
that it is approved to operate by the bureau
board .
(3) The following statements:
(A) "Any questions a student may have regarding this catalog that
have not been satisfactorily answered by the institution may be
directed to the Bureau Board for
Private Postsecondary Education at (address), Sacramento, CA (ZIP
Code), (Internet Web site address), (telephone and fax numbers)."
(B) "As a prospective student, you are encouraged to review this
catalog prior to signing an enrollment agreement. You are also
encouraged to review the School Performance Fact Sheet, which must be
provided to you prior to signing an enrollment agreement."
(C) "A student or any member of the public may file a complaint
about this institution with the Bureau Board
for Private Postsecondary Education by calling (toll-free
telephone number) or by completing a complaint form, which can be
obtained on the bureau's board's
Internet Web site (Internet Web site address)."
(4) The address or addresses where class sessions will be held.
(5) A description of the programs offered and a description of the
instruction provided in each of the courses offered by the
institution, the requirements for completion of each program,
including required courses, any final tests or examinations, any
required internships or externships, and the total number of credit
hours, clock hours, or other increments required for completion.
(6) If the educational program is designed to lead to positions in
a profession, occupation, trade, or career field requiring licensure
in this state, a notice to that effect and a list of the
requirements for eligibility for licensure.
(7) Information regarding the faculty and their qualifications.
(8) A detailed description of institutional policies in the
following areas:
(A) Admissions policies, including the institution's policies
regarding the acceptance of credits earned at other institutions or
through challenge examinations and achievement tests, admissions
requirements for ability-to-benefit students, and a list describing
any transfer or articulation agreements between the institution and
any other college or university that provides for the transfer of
credits earned in the program of instruction. If the institution has
not entered into an articulation or transfer agreement with any other
college or university, the institution shall disclose that fact.
(B) Cancellation, withdrawal, and refund policies, including an
explanation that the student has the right to cancel the enrollment
agreement and obtain a refund of charges paid through attendance at
the first class session, or the seventh day after enrollment,
whichever is later. The text shall also include a description of the
procedures that a student is required to follow to cancel the
enrollment agreement or withdraw from the institution and obtain a
refund consistent with the requirements of Article 13 (commencing
with Section 94919).
(C) Probation and dismissal policies.
(D) Attendance policies.
(E) Leave-of-absence policies.
(9) The schedule of total charges for a period of attendance and
an estimated schedule of total charges for the entire educational
program.
(10) A statement reporting whether the institution participates in
federal and state financial aid programs, and if so, all consumer
information that is required to be disclosed to the student pursuant
to the applicable federal and state financial aid programs.
(11) A statement specifying that, if a student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund, and that, if the student has received
federal student financial aid funds, the student is entitled to a
refund of the moneys not paid from federal student financial aid
program funds.
(12) A statement specifying whether the institution has a pending
petition in bankruptcy, is operating as a debtor in possession, has
filed a petition within the preceding five years, or has had a
petition in bankruptcy filed against it within the preceding five
years that resulted in reorganization under Chapter 11 of the United
States Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.).
(13) If the institution provides placement services, a description
of the nature and extent of the placement services.
(14) A description of the student's rights and responsibilities
with respect to the Student Tuition Recovery Fund. This statement
shall specify that it is a state requirement that a student who pays
his or her tuition is required to pay a state-imposed assessment for
the Student Tuition Recovery Fund. This statement shall also describe
the purpose and operation of the Student Tuition Recovery Fund and
the requirements for filing a claim against the Student Tuition
Recovery Fund.
(15) The following statement:
"NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED
AT OUR INSTITUTION
The transferability of credits you earn at (name of institution) is
at the complete discretion of an institution to which you may seek
to transfer. Acceptance of the (degree, diploma, or certificate) you
earn in (name of educational program) is also at the complete
discretion of the institution to which you may seek to transfer. If
the (credits or degree, diploma, or certificate) that you earn at
this institution are not accepted at the institution to which you
seek to transfer, you may be required to repeat some or all of your
coursework at that institution. For this reason you should make
certain that your attendance at this institution will meet your
educational goals. This may include contacting an institution to
which you may seek to transfer after attending (name of institution)
to determine if your (credits or degree, diploma or certificate) will
transfer."
(16) A statement specifying whether the institution, or any of its
degree programs, are accredited by an accrediting agency recognized
by the United States Department of Education. If the institution is
unaccredited and offers an associate, baccalaureate, master's, or
doctoral degree, or is accredited and offers an unaccredited program
for an associate, baccalaureate, master's, or doctoral degree, the
statement shall disclose the known limitations of the degree program,
including, but not limited to, all of the following:
(A) Whether a graduate of the degree program will be eligible to
sit for the applicable licensure exam in California and other states.
(B) A degree program that is unaccredited or a degree from an
unaccredited institution is not recognized for some employment
positions, including, but not limited to, positions with the State of
California.
(C) That a student enrolled in an unaccredited institution is not
eligible for federal financial aid programs.
(b) If the institution has a general student brochure, the
institution shall provide that brochure to the prospective student
prior to enrollment. In addition, if the institution has a
program-specific student brochure for the program in which the
prospective student seeks to enroll, the institution shall provide
the program-specific student brochure to the prospective student
prior to enrollment.
(c) An institution shall provide the school catalog to any person
upon request. In addition, if the institution has student brochures,
the institution shall disclose the requested brochures to any
interested person upon request.
SEC. 52. Section 94910 of the Education
Code is amended to read:
94910. Prior to enrollment, an institution shall provide a
prospective student with a School Performance Fact Sheet containing,
at a minimum, the following information, as it relates to the
educational program:
(a) Completion rates, as calculated pursuant to Article 16
(commencing with Section 94928).
(b) Placement rates for each educational program, as calculated
pursuant to Article 16 (commencing with Section 94928), if the
educational program is designed to lead to, or the institution makes
any express or implied claim related to preparing students for, a
recognized career, occupation, vocation, job, or job title.
(c) License examination passage rates for programs leading to
employment for which passage of a state licensing examination is
required, as calculated pursuant to Article 16 (commencing with
Section 94928).
(d) Salary or wage information, as calculated pursuant to Article
16 (commencing with Section 94928).
(e) If a program is too new to provide data for any of the
categories listed in this subdivision, the institution shall state on
its fact sheet: "This program is new. Therefore, the number of
students who graduate, the number of students who are placed, or the
starting salary you can earn after finishing the educational program
are unknown at this time. Information regarding general salary and
placement statistics may be available from government sources or from
the institution, but is not equivalent to actual performance data."
(f) All of the following:
(1) A description of the manner in which the figures described in
subdivisions (a) to (d), inclusive, are calculated or a statement
informing the reader of where he or she may obtain a description of
the manner in which the figures described in subdivisions (a) to (d),
inclusive, are calculated.
(2) A statement informing the reader of where he or she may obtain
from the institution a list of the employment positions determined
to be within the field for which a student received education and
training for the calculation of job placement rates as required by
subdivision (b).
(3) A statement informing the reader of where he or she may obtain
from the institution a list of the objective sources of information
used to substantiate the salary disclosure as required by subdivision
(d).
(g) The following statements:
(1) "This fact sheet is filed with the Bureau
Board for Private Postsecondary Education. Regardless of
any information you may have relating to completion rates, placement
rates, starting salaries, or license exam passage rates, this fact
sheet contains the information as calculated pursuant to state law."
(2) "Any questions a student may have regarding this fact sheet
that have not been satisfactorily answered by the institution may be
directed to the Bureau Board for
Private Postsecondary Education at (address), Sacramento, CA (ZIP
Code), (Internet Web site address), (telephone and fax numbers)."
(h) If the institution participates in federal financial aid
programs, the most recent three-year cohort default rate reported by
the United States Department of Education for the institution and the
percentage of enrolled students receiving federal student loans.
SEC. 53. Section 94911 of the Education
Code is amended to read:
94911. An enrollment agreement shall include, at a minimum, all
of the following:
(a) The name of the institution and the name of the educational
program, including the total number of credit hours, clock hours, or
other increment required to complete the educational program.
(b) A schedule of total charges, including a list of any charges
that are nonrefundable and the student's obligations to the Student
Tuition Recovery Fund, clearly identified as nonrefundable charges.
(c) In underlined capital letters on the same page of the
enrollment agreement in which the student's signature is required,
the total charges for the current period of attendance, the estimated
total charges for the entire educational program, and the total
charges the student is obligated to pay upon enrollment.
(d) A clear and conspicuous statement that the enrollment
agreement is legally binding when signed by the student and accepted
by the institution.
(e) (1) A disclosure with a clear and conspicuous caption,
"STUDENT'S RIGHT TO CANCEL," under which it is explained that the
student has the right to cancel the enrollment agreement and obtain a
refund of charges paid through attendance at the first class
session, or the seventh day after enrollment, whichever is later.
(2) The disclosure shall contain the institution's refund policy
and a statement that, if the student has received federal student
financial aid funds, the student is entitled to a refund of moneys
not paid from federal student financial aid program funds.
(3) The text shall also include a description of the procedures
that a student is required to follow to cancel the enrollment
agreement or withdraw from the institution and obtain a refund.
(f) A statement specifying that, if the student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund.
(g) A statement specifying that, if the student is eligible for a
loan guaranteed by the federal or state government and the student
defaults on the loan, both of the following may occur:
(1) The federal or state government or a loan guarantee agency may
take action against the student, including applying any income tax
refund to which the person is entitled to reduce the balance owed on
the loan.
(2) The student may not be eligible for any other federal student
financial aid at another institution or other government assistance
until the loan is repaid.
(h) The transferability disclosure that is required to be included
in the school catalog, as specified in paragraph (15) of subdivision
(a) of Section 94909.
(i) (1) The following statement: "Prior to signing this enrollment
agreement, you must be given a catalog or brochure and a School
Performance Fact Sheet, which you are encouraged to review prior to
signing this agreement. These documents contain important policies
and performance data for this institution. This institution is
required to have you sign and date the information included in the
School Performance Fact Sheet relating to completion rates, placement
rates, license examination passage rates, salaries or wages, and the
most recent three-year cohort default rate, if applicable, prior to
signing this agreement."
(2) Immediately following the statement required by paragraph (1),
a line for the student to initial, including the following
statement: "I certify that I have received the catalog, School
Performance Fact Sheet, and information regarding completion rates,
placement rates, license examination passage rates, salary or wage
information, and the most recent three-year cohort default rate, if
applicable, included in the School Performance Fact sheet, and have
signed, initialed, and dated the information provided in the School
Performance Fact Sheet."
(j) The following statements:
(1) "Any questions a student may have regarding this enrollment
agreement that have not been satisfactorily answered by the
institution may be directed to the Bureau
Board for Private Postsecondary Education at (address),
Sacramento, CA (ZIP Code), (Internet Web site address), (telephone
and fax numbers)."
(2) "A student or any member of the public may file a complaint
about this institution with the Bureau Board
for Private Postsecondary Education by calling (toll-free
telephone number) or by completing a complaint form, which can be
obtained on the bureau's board's
Internet Web site (Internet Web site address)."
(k) The following statement above the space for the student's
signature:
"I understand that this is a legally binding contract. My signature
below certifies that I have read, understood, and agreed to my rights
and responsibilities, and that the institution's cancellation and
refund policies have been clearly explained to me."
SEC. 54. Section 94913 of the Education
Code is amended to read:
94913. (a) An institution that maintains an Internet Web site
shall provide on that Internet Web site all of the following:
(1) The school catalog.
(2) A School Performance Fact Sheet for each educational program
offered by the institution.
(3) Student brochures offered by the institution.
(4) A link to the bureau's board's
Internet Web site.
(5) The institution's most recent annual report submitted to the
bureau board .
(b) An institution shall include information concerning where
students may access the bureau's board's
Internet Web site anywhere the institution identifies itself as
being approved by the bureau board .
SEC. 55. Section 94920 of the Education
Code is amended to read:
94920. An institution that does not participate in the federal
student financial aid programs shall do all of the following:
(a) The institution shall advise each student that a notice of
cancellation shall be in writing, and that a withdrawal may be
effectuated by the student's written notice or by the student's
conduct, including, but not necessarily limited to, a student's lack
of attendance.
(b) Institutions shall refund 100 percent of the amount paid for
institutional charges, less a reasonable deposit or application fee
not to exceed two hundred fifty dollars ($250), if notice of
cancellation is made through attendance at the first class session,
or the seventh day after enrollment, whichever is later.
(c) The bureau board may adopt by
regulation a different method of calculation for instruction
delivered by other means, including, but not necessarily limited to,
distance education.
(d) The institution shall have a refund policy for the return of
unearned institutional charges if the student cancels an enrollment
agreement or withdraws during a period of attendance. The refund
policy for students who have completed 60 percent or less of the
period of attendance shall be a pro rata refund.
(e) The institution shall pay or credit refunds within 45 days of
a student's cancellation or withdrawal.
SEC. 56. Section 94921 of the Education
Code is amended to read:
94921. An institution offering an educational program for which
the refund calculations set forth in this article cannot be utilized
because of the unique way in which the educational program is
structured, may petition the bureau board
for an alternative method of calculating tuition refunds.
SEC. 57. Section 94923 of the Education
Code is amended to read:
94923. (a) The bureau
board shall , by January 1, 2011, adopt
by regulation procedures governing the administration and
maintenance of the Student Tuition Recovery Fund, including
requirements relating to assessments on students and student claims
against the Student Tuition Recovery Fund.
The regulations shall ensure that the following students, and any
other students deemed appropriate, are eligible for payment from the
Student Tuition Recovery Fund:
(1) In the event of a school closure, a student who attended the
institution within 120 days of the closure.
(2) Students to whom an institution has been ordered to pay
refunds by the board but has failed to do so.
(3) Students who have been awarded restitution, refunds or
monetary awards by an arbitrator or court, but who have been unable
to collect the award from the institution.
(4) Students whose programs have been discontinued at the campus
they attend before they are able to complete the program.
(b) Students who suffered losses due to an institution's violation
of this act shall be eligible for payment from the Student Tuition
Recovery Fund.
SEC. 58. Section 94924 of the Education
Code is amended to read:
94924. All assessments collected pursuant to this article shall
be credited to the Student Tuition Recovery Fund, along with any
accrued interest, for the purpose of this article. Notwithstanding
Section 13340 of the Government Code, the moneys in the Student
Tuition Recovery Fund are continuously appropriated to the
bureau board , without regard to fiscal year,
for the purposes of this article.
SEC. 59. Section 94926 of the Education
Code is amended to read:
94926. At least 30 days prior to closing, the
an institution shall notify the bureau
board in writing of its intention to close. The notice
shall be accompanied by a closure plan, which shall include, but not
necessarily be limited to, all of the following:
(a) A plan for providing teach-outs of educational programs,
including any agreements with any other postsecondary educational
institutions to provide teach-outs.
(b) If no teach-out plan is contemplated, or for students who do
not wish to participate in a teach-out, arrangements for making
refunds within 45 days from the date of closure, or for institutions
that participate in federal student financial aid programs
arrangements for making refunds and returning federal student
financial aid program funds.
(c) If the institution is a participant in federal student
financial aid programs, it shall provide students information
concerning these programs and institutional closures.
(d) A plan for the disposition of student records.
SEC. 60. Section 94927 of the Education
Code is amended to read:
94927. An institution shall be considered in default of the
enrollment agreement when an educational program is discontinued or
canceled or the institution closes prior to completion of the
educational program. When an institution is in default, student
institutional charges may be refunded on a pro rata basis if the
bureau board determines that the school
has made provision for students enrolled at the time of default to
complete a comparable educational program at another institution at
no additional charge to the students beyond the amount of the total
charges in the original enrollment agreement. If the institution does
not make that provision, a total refund of all institutional charges
shall be made to students.
SEC. 61. Section 94927.5 of the
Education Code is amended to read:
94927.5. (a) Prior to closing, an institution shall provide the
bureau board with the following:
(1) Pertinent student records, including transcripts, as
determined by the bureau board ,
pursuant to regulations adopted by the bureau
board .
(2) If the institution is an accredited institution, a plan for
the retention of records and transcripts, approved by the institution'
s accrediting agency, that provides information as to how a student
may obtain a transcript or any other information about the student's
coursework and degrees completed.
(b) Subdivision (a) applies to all private postsecondary
institutions, including institutions that are otherwise exempt from
this chapter pursuant to Article 4 (commencing with Section 94874).
SEC. 62. Section 94928 of the Education
Code is amended to read:
94928. As used in this article, the following terms have the
following meanings:
(a) "Cohort population" means the number of students that began a
program on a cohort start date.
(b) "Cohort start date" means the first class day after the
cancellation period during which a cohort of students attends class
for a specific program.
(c) "Graduates" means the number of students who complete a
program within 100 percent of the published program length. An
institution may separately state completion information for students
completing the program within 150 percent of the original contracted
time, but that information may not replace completion information for
students completing within the original scheduled time. Completion
information shall be separately stated for each campus or branch of
the institution.
(d) "Graduates available for employment" means the number of
graduates minus the number of graduates unavailable for employment.
(e) (1) "Graduates employed in the field" means graduates who are
gainfully employed in a single position for which the institution
represents the program prepares its graduates within six months after
a student completes the applicable educational program. For
occupations for which the state requires passing an examination, the
period of employment shall begin within six months of the
announcement of the examination results for the first examination
available after a student completes an applicable educational
program.
(2) The bureau board shall define by
July 1, 2014, specific measures and standards for determining
whether a student is gainfully employed in a full-time or part-time
position for which the institution represents the program prepares
its graduates, including self-employment or conducting freelance
work, and may set the standards for the hours per week and duration
of employment and utilize any job classification methodology the
bureau board determines appropriate for
this purpose, including, but not limited to, the United States
Department of Labor's Standard Occupational Classification codes.
(3) This subdivision does not prohibit the bureau
board from authorizing an institution to
aggregate single positions held by a graduate for purposes of meeting
the hours per week standards established by the bureau
board .
(f) "Graduates unavailable for employment" means graduates who,
after graduation, die, become incarcerated, are called to active
military duty, are international students that leave the United
States or do not have a visa allowing employment in the United
States, or are continuing their education at an accredited or
bureau-approved board-approved postsecondary
institution.
(g) "Students available for graduation" means the cohort
population minus the number of students unavailable for graduation.
(h) "Students unavailable for graduation" means students who have
died, been incarcerated, or called to active military duty.
SEC. 63. Section 94929 of the Education
Code is amended to read:
94929. (a) An institution shall annually report to the
bureau board , as part of the annual report, and
publish in its School Performance Fact Sheet, the completion rate
for each program. Except as provided in subdivision (b), the
completion rate shall be calculated by dividing the number of
graduates by the number of students available for graduation.
(b) In lieu of calculating graduation data pursuant to subdivision
(a), an institution may report graduation data reported to, and
calculated by, the Integrated Postsecondary Education Data System of
the United States Department of Education.
SEC. 64. Section 94929.5 of the
Education Code is amended to read:
94929.5. (a) An institution shall annually report to the
bureau board , as part of the annual report,
and shall publish in its School Performance Fact Sheet, all of the
following:
(1) The job placement rate, calculated by dividing the number of
graduates employed in the field by the number of graduates available
for employment for each program that is either (1) designed, or
advertised, to lead to a particular career, or (2) advertised or
promoted with any claim regarding job placement.
(2) The license examination passage rates for the immediately
preceding two years for programs leading to employment for which
passage of a state licensing examination is required, calculated by
dividing the number of graduates who pass the examination by the
number of graduates who take the licensing examination the first time
that the examination is available after completion of the
educational program. The institution shall use state agency licensing
data to calculate license examination passage rates. If those data
are unavailable, the institution shall calculate the license
examination passage rate in a manner consistent with regulations
adopted by the bureau board .
(3) Salary and wage information, consisting of the total number of
graduates employed in the field and the annual wages or salaries of
those graduates stated in increments of five thousand dollars
($5,000).
(4) If applicable, the most recent official three-year cohort
default rate reported by the United States Department of Education
for the institution and the percentage of enrolled students receiving
federal student loans.
(b) Nothing in this section shall limit the bureau's
board's authority to collect information from an
institution to comply with this section and ensure, by regulation
and other lawful means, that the information required by this
section, and the manner in which it is collected and reported, is all
of the following:
(1) Useful to students.
(2) Useful to policymakers.
(3) Based upon the most credible and verifiable data available.
(4) Does not impose undue compliance burdens on an institution.
SEC. 65. Section 9 4929.7 of the
Education Code is amended to read:
94929.7. (a) The information used to substantiate the rates and
information calculated pursuant to Sections 94929 and 94929.5 shall
do both of the following:
(1) Be documented and maintained by the institution for five years
from the date of the publication of the rates and information.
(2) Be retained in an electronic format and made available to the
bureau board upon request.
(b) An institution shall provide a list of employment positions
used to determine the number of graduates employed in the field for
purposes of calculating job placement rates pursuant to this article.
(c) The bureau board shall identify
the specific information that an institution is required to document
and maintain to substantiate rates and information pursuant to this
section.
SEC. 66. Section 94929.8 of the
Education Code is amended to read:
94929.8. (a) On or before January 1, 2011, and pursuant
to Section 94877, the bureau The board shall
establish, by regulation as specified in Section 94877 , a
uniform method for institutions to obtain statistically valid,
current, and representative data to comply with this article.
(b) A violation of the regulations adopted pursuant to subdivision
(a) is a material violation of this chapter.
SEC. 67. Section 94929.9 is added to the
Education Code , to read:
94929.9. (a) The board shall report to the Legislature, on or
before October 1, 2015, on efforts to streamline the board's approval
to operate process for institutions while ensuring that the same or
similar data information, as is required to be reported to the board
pursuant to this article, is being reported to students in a clear
and conspicuous manner.
(b) (1) A report to be submitted to the Legislature pursuant to
subdivision (a) shall be submitted in compliance with Section 9795 of
the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed January 1, 2019.
SEC. 68. Section 94930 of the Education
Code is amended to read:
94930. (a) All fees collected pursuant to this article, including
any interest on those fees, shall be deposited in the Private
Postsecondary Education Administration Fund, and shall be available,
upon appropriation by the Legislature, for expenditure by the
bureau board for the administration of
this chapter.
(b) If the bureau board determines by
regulation that the adjustment of the fees established by this
article is consistent with the intent of this chapter, the
bureau board may adjust the fees. However, the
bureau board shall not maintain a
reserve balance in the Private Postsecondary Education Administration
Fund in an amount that is greater than the amount necessary to fund
six months of authorized operating expenses of the bureau
board in any fiscal year.
SEC. 69. Section 94930.5 of the
Education Code is amended to read:
94930.5. An Subject to Section 94930, an
institution shall remit to the bureau
board for deposit in the Private Postsecondary Education
Administration Fund the following fees, in accordance with the
following schedule:
(a) The following fees shall be remitted by an institution
submitting an application for an approval to operate, if applicable:
(1) Application fee for an approval to operate: five thousand
dollars ($5,000).
(2) Application fee for the approval to operate a new branch of
the institution: three thousand dollars ($3,000).
(3) Application fee for an approval to operate by means of
accreditation: seven hundred fifty dollars ($750).
(b) The following fees shall be remitted by an institution seeking
a renewal of its approval to operate, if applicable:
(1) Renewal fee for the main campus of the institution: three
thousand five hundred dollars ($3,500).
(2) Renewal fee for a branch of the institution: three thousand
dollars ($3,000).
(3) Renewal fee for an institution that is approved to operate by
means of accreditation: five hundred dollars ($500).
(c) The following fees shall apply to an institution seeking
authorization of a substantive change to its approval to operate, if
applicable:
(1) Processing fee for authorization of a substantive change to an
approval to operate: five hundred dollars ($500).
(2) Processing fee in connection with a substantive change to an
approval to operate by means of accreditation: two hundred fifty
dollars ($250).
(d) (1) In addition to any fees paid to the bureau
board pursuant to subdivisions (a) to (c),
inclusive, each institution that is approved to operate pursuant to
this chapter shall remit both of the following:
(A) An annual institutional fee, in an amount equal to
three-quarters of 1 percent of the institution's annual revenues
derived from students in California, but not exceeding a total of
twenty-five thousand dollars ($25,000) annually.
(B) An annual branch fee of one thousand dollars ($1,000) for each
branch or campus of the institution operating in California.
(2) The amount of the annual fees pursuant to paragraph (1) shall
be proportional to the bureau's board's
cost of regulating the institution under this chapter.
(e) If the bureau determines that the annual cost of providing
oversight and review of an institution, as required by this chapter,
is less than the amount of any fees required to be paid by that
institution pursuant to this article, the bureau may decrease the
fees applicable to that institution to an amount that is proportional
to the bureau's costs associated with that institution.
SEC. 70. Section 94931.5 of the
Education Code is amended to read:
94931.5. (a) The bureau board may
propose modifications to the fee schedule in Section 94930.5 to the
Governor and the Legislature to add or delete categories of fees
related to work performed by the bureau board
and propose to the Governor and the Legislature the maximum
amount to be charged for each fee category added to the fee schedule.
The fee schedule shall provide adequate resources for the
bureau board to effectively implement this
chapter.
(b) The bureau board shall annually
publish a schedule of the current fees to be charged pursuant to this
article and shall make this schedule available to the public.
SEC. 71. Section 94932 of the Education
Code is amended to read:
94932. The bureau board shall
determine an institution's compliance with the requirements of this
chapter. The bureau board shall have
the power to require reports that institutions shall file with the
bureau board in addition to the annual
report, to send staff to an institution's sites, and to require
documents and responses from an institution to monitor compliance.
When the bureau board has reason to
believe that an institution may be out of compliance, it shall
conduct an investigation of the institution. If the bureau
board determines, after completing an
investigation, that an institution has violated any applicable law or
regulation, the bureau board shall
take appropriate action pursuant to this article.
SEC. 72. Section 94932.5 of the
Education Code is amended to read:
94932.5. (a) As part of its compliance program, the
bureau board shall perform announced and
unannounced inspections of institutions at least every two
five years.
(b) On or before January 1, 2011 2016
, the bureau board shall adopt
regulations setting forth policies and practices to ensure that
institutions are subject to an equal number of announced and
unannounced inspections for each two-year period
student protections are the highest priority of inspections and that
inspections are conducted based on risk and potential harm to
students . The regulations shall also set forth policies and
practices for providing notice to students enrolled at an institution
of the results of each inspection of the institution.
SEC. 73. Section 94933 of the Education
Code is amended to read:
94933. The bureau board shall
provide an institution with the opportunity to remedy noncompliance,
impose fines, place the institution on probation, or suspend or
revoke the institution's approval to operate, in accordance with this
article, as it deems appropriate based on the severity of an
institution's violations of this chapter, and the harm caused to
students.
SEC. 74. Section 94933.5 of the
Education Code is amended to read:
94933.5. As much as is practicable, the bureau
board shall seek to resolve instances of noncompliance,
including the use of alternative dispute resolution procedures in
Article 5 (commencing with Section 11420.10) of Chapter 4.5 of Part 1
of Division 3 of Title 2 of the Government Code.
SEC. 75. Section 94934 of the Education
Code is amended to read:
94934. (a) As part of the compliance program, an institution
shall submit an annual report to the bureau
board , under penalty of perjury, signed by
a responsible corporate officer, by
July 1 of each year, or another date designated by the
bureau board , and it shall include the
following information for educational programs offered in the
reporting period:
(1) The total number of students enrolled by level of degree or
for a diploma.
(2) The number of degrees, by level, and diplomas awarded.
(3) The degree levels and diplomas offered.
(4) The Student Performance Fact Sheet, as required pursuant to
Section 94910.
(5) The school catalog, as required pursuant to Section 94909.
(6) The total charges for each educational program by period of
attendance.
(7) A statement indicating whether the institution is, or is not,
current in remitting Student Tuition Recovery Fund assessments.
(8) A statement indicating whether an accrediting agency has taken
any final disciplinary action against the institution.
(9) Additional information deemed by the bureau
board to be reasonably required to ascertain compliance
with this chapter.
(b) The bureau, by January 1, 2011, board
shall prescribe the annual report's format and method of
delivery.
SEC. 76. Section 94935 of the Education
Code is amended to read:
94935. (a) Bureau Board
staff who, during an inspection of an institution, detect a violation
of this chapter, or regulations adopted pursuant to this chapter,
that is a minor violation as determined by the bureau
board , pursuant to regulations adopted
by January 1, 2011, regulations, shall issue a
notice to comply before leaving the institution. The bureau
board shall establish a voluntary informal
appeal process, by regulation, within one year of the enactment of
this chapter.
(b) An institution that receives a notice to comply shall have no
more than 30 days from the date of inspection to remedy the
noncompliance.
(c) Upon achieving compliance, the institution shall sign and
return the notice to comply to the bureau
board .
(d) A single notice to comply shall be issued listing separately
all the minor violations cited during the inspection.
(e) A notice to comply shall not be issued for any minor violation
that is corrected immediately in the presence of the bureau
board staff. Immediate compliance may be noted
in the inspection report, but the institution shall not be subject to
any further action by the bureau board
.
(f) A notice to comply shall be the only means the bureau
board shall use to cite a minor violation
discovered during an inspection. The bureau
board shall not take any other enforcement action specified in
this chapter against an institution that has received a notice to
comply if the institution remedies the violation within 30 days from
the date of the inspection.
(g) If an institution that receives a notice to comply pursuant to
subdivision (a) disagrees with one or more of the alleged minor
violations listed in the notice to comply, an institution shall send
the bureau board a written notice of
disagreement. The agency may take administrative enforcement action
to seek compliance with the requirements of the notice to comply.
(h) If an institution fails to comply with a notice to comply
within the prescribed time, the bureau board
shall take appropriate administrative enforcement action.
SEC. 77. Section 94936 of the Education
Code is amended to read:
94936. (a) As a consequence of an investigation, and upon a
finding that the institution has committed a violation of this
chapter or that the institution has failed to comply with a notice to
comply pursuant to Section 94935, the bureau
board shall issue a citation to an institution for violation
of this chapter, or regulations adopted pursuant to this chapter.
(b) The citation may contain either or both of the following:
(1) An order of abatement that may require an institution to
demonstrate how future compliance with this chapter or regulations
adopted pursuant to this chapter will be accomplished.
(2) Notwithstanding Section 125.9 of the Business and Professions
Code, an administrative fine not to exceed five thousand dollars
($5,000) for each violation. The bureau board
shall base its assessment of the administrative fine on:
(A) The nature and seriousness of the violation.
(B) The persistence of the violation.
(C) The good faith of the institution.
(D) The history of previous violations.
(E) The purposes of this chapter.
(F) The potential harm to students.
(c) (1) The citation shall be in writing and describe the nature
of the violation and the specific provision of law or regulation that
is alleged to have been violated.
(2) The citation shall inform the institution of its right to
request a hearing in writing within 30 days from service of the
citation.
(3) If a hearing is requested, the bureau
board shall select an informal hearing pursuant to Article 10
(commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code or a formal hearing
pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.
(4) If a hearing is not requested, payment of the administrative
fine is due 30 days from the date of service, and shall not
constitute an admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative
fine is ordered, the administrative fine is due 30 days from when the
final order is entered.
(6) The bureau board may enforce the
administrative fine as if it were a money judgment pursuant to Title
9 (commencing with Section 680.010) of Part 2 of the Code of Civil
Procedure.
(d) All administrative fines shall be deposited in the Private
Postsecondary Education Administration Fund.
SEC. 78. Section 94937 of the Education
Code is amended to read:
94937. (a) As a consequence of an investigation, and upon a
finding that an institution has committed a violation, the
bureau board may place an institution on
probation or may suspend or revoke an institution's approval to
operate for:
(1) Obtaining an approval to operate by fraud.
(2) A material violation or repeated violations of this chapter or
regulations adopted pursuant to this chapter that have resulted in
harm to students. For purposes of this paragraph, "material violation"
includes, but is not limited to, misrepresentation, fraud in the
inducement of a contract, and false or misleading claims or
advertising, upon which a student reasonably relied in executing an
enrollment agreement and that resulted in harm to the student.
(b) The bureau board shall adopt
regulations , within one year of the enactment of this
chapter, governing probation and suspension of an approval
to operate.
(c) The bureau board may seek
reimbursement pursuant to Section 125.3 of the Business and
Professions Code.
(d) An institution shall not be required to pay the cost of
investigation to more than one agency.
SEC. 79. Section 94938 of the Education
Code is amended to read:
94938. (a) If the bureau board
determines that it needs to make an emergency decision to protect
students, prevent misrepresentation to the public, or prevent the
loss of public funds or moneys paid by students, it may do so
pursuant to Article 13 (commencing with Section 11460.10) of Chapter
4.5 of Part 1 of Division 3 of Title 2 of the Government Code.
(b) The bureau board shall
, by January 1, 2011, adopt regulations to give this
section effect pursuant to Section 11460.20 of the Government Code.
SEC. 80. Section 94939 of the Education
Code is amended to read:
94939. (a) The bureau board may
bring an action for equitable relief for any violation of this
chapter. The equitable relief may include restitution, a temporary
restraining order, the appointment of a receiver, and a preliminary
or permanent injunction. The action may be brought in the county in
which the defendant resides or in which any violation has occurred or
may occur.
(b) The remedies provided in this section supplement, and do not
supplant, the remedies and penalties under other provisions of law.
SEC. 81. Section 94941 of the Education
Code is amended to read:
94941. (a) An individual who has cause to believe that an
institution has violated this chapter, or regulations adopted
pursuant to this chapter, may file a complaint with the
bureau board against the institution. The
complaint shall set forth the alleged violation, and shall contain
any other information as may be required by the bureau
board .
(b) Taking into account the nature and seriousness of the alleged
violation, the bureau board shall take
action to ascertain the facts and to verify the complaint. The action
may include interviewing institution management, conducting an
investigation, holding an informal hearing, or other appropriate
investigative activity.
(c) Upon the facts discovered, the bureau
board shall take appropriate administrative enforcement action.
(d) If the bureau board finds that
an institution's violation of this chapter has caused damage or loss
to a student or group of students, the bureau
board shall order the institution to provide appropriate
restitution to that student or group of students.
(e) The board shall establish a timeline by which complaints filed
pursuant to this section shall be processed and establish procedures
to prioritize complaints as follows:
(1) "Urgent complaints" represent complaints regarding an
immediate danger to the public health, safety, or welfare, and the
board shall give these complaints the highest priority.
(2) "High-priority complaints" include complaints that could
potentially pose a danger, but pose no immediate danger, to the
public health, safety, or welfare. The board shall give high priority
complaints less priority than urgent complaints but more priority
than routine complaints.
(3) "Routine complaints" are complaints that do not pose any
significant risk of harm to the public health, safety, or welfare.
SEC. 82. Section 94942 of the Education
Code is amended to read:
94942. (a) The bureau board shall
establish a toll-free telephone number staffed by a bureau
board employee by which a student or a member of
the public may file a complaint under this chapter.
(b) The bureau board shall make a
complaint form available on its Internet Web site. The
bureau board shall permit students and members
of the public to file a complaint under this chapter through the
bureau's board's Internet Web site.
SEC. 83. Section 94943 of the Education
Code is amended to read:
94943. The following violations of this chapter are public
offenses:
(a) Knowingly operating a private postsecondary institution
without an approval to operate is an infraction subject to the
procedures described in Sections 19.6 and 19.7 of the Penal Code.
(b) Knowingly providing false information to the bureau
board on an application for an approval to
operate is an infraction subject to the procedures described in
Sections 19.6 and 19.7 of the Penal Code.
(c) Knowingly submitting, to the bureau
board , false information that is required to be reported
pursuant to Article 16 (commencing with Section 94928) is an
infraction subject to the procedures described in Sections 19.6 and
19.7 of the Penal Code.
SEC. 84. Section 94943.5 of the
Education Code is amended to read:
94943.5. An institution shall designate and maintain an agent for
service of process within this state, and provide the name, address,
and telephone number of the agent to the bureau
board . The bureau board
shall furnish the agent's name, address, and telephone number to a
person upon request.
SEC. 85. Section 94944 of the Education
Code is amended to read:
94944. Notwithstanding any other provision of law, the
bureau board shall cite any person, and that
person shall be subject to a fine not to exceed fifty thousand
dollars ($50,000), for operating an institution without proper
approval to operate issued by the bureau
board pursuant to this chapter.
SEC. 86. Section 94944.5 of the
Education Code is amended to read:
94944.5. Each institution subject to this chapter shall be deemed
to have authorized its accrediting agency to provide the
bureau board , the Attorney General, any
district attorney, city attorney, or the Student Aid Commission,
within 30 days of written notice, copies of all documents and other
material concerning the institution that are maintained by the
accrediting agency.
SEC. 87. Section 94944.6 of the
Education Code is amended to read:
94944.6. Within 30 days of receiving a written notice from the
bureau board , the Attorney General,
district attorney, city attorney, or the Student Aid Commission
pursuant to Section 94944.5, an accrediting agency shall provide the
requesting entity with all documents or other material concerning an
institution accredited by that agency that are designated
specifically or by category in the written notice.
SEC. 88. Section 94945 of the Education
Code is amended to read:
94945. (a) This chapter does not limit or preclude the
enforcement of rights or remedies under any other applicable statute
or law.
(b) This chapter does not limit or preclude the Attorney General,
a district attorney, or a city attorney from taking any action
otherwise authorized under any other applicable statute or law.
(c) If the board has reason to believe that an institution's
noncompliance with the provisions of this chapter or any other
applicable law significantly transcends the interests of the
individual complainant, or the board has determined that the
complexity of the case requires additional expertise and resources,
the board shall contract with the Attorney General for investigative
and prosecutorial services.
SEC. 89. Section 94948 of the Education
Code is amended to read:
94948. In addition to any other reporting requirements under this
chapter, the bureau board shall
provide regular updates to the Legislature by participating in annual
oversight hearings conducted by the appropriate policy committees
and budget subcommittees of the Senate and Assembly. The updates
shall describe the bureau's board's
progress in adopting and enforcing regulations and the provisions of
this chapter.
SEC. 90. Section 94949 of the Education
Code is repealed.
94949. (a) On or before October 1, 2013, the Legislative Analyst'
s Office shall report to the Legislature and the Governor on the
appropriateness of the exemptions provided in this chapter, with
particular attention to the exemptions provided by Article 4
(commencing with Section 94874) that are based on accreditation. The
report shall examine and make recommendations regarding the degree to
which regional and national accrediting agencies provide oversight
of institutions and protection of student interests, whether that
oversight results in the same level of protection of students as
provided by this chapter, and whether the exemptions provided in
Article 4 (commencing with Section 94874) that are based on
accreditation should be continued, adjusted, or removed.
(b) (1) On or before August 1, 2013, the bureau shall contract
with the California State Auditor's Office to conduct a performance
audit to evaluate the effectiveness and efficiency of the bureau's
operations, consistent with the requirements of this chapter, and the
California State Auditor's Office shall report the results of that
audit to the Legislature and the Governor.
(2) The performance audit required by paragraph (1) shall include,
but shall not be limited to, an evaluation of all of the following:
(A) The Student Tuition Recovery Fund, including the adequacy of
its balance; the quality, timeliness, and consistency of claims
processing; and the degree to which it has been, or will be, able to
reimburse tuition for students.
(B) The bureau's enforcement program, including the means by which
the bureau makes students and school employees aware of their
ability to file complaints; the average time for investigating
complaints; the standards for referring complaints to investigation;
the average time to complete investigations; the adequacy of the
bureau's inspections; the bureau's record of imposing discipline; the
bureau's record of initiating investigations based upon publicly
available information; the bureau's record of coordinating with law
enforcement and public prosecutors; and whether the bureau has the
enforcement resources necessary to protect consumers and ensure a
fair and prompt resolution of complaints and investigations for both
students and institutions.
(C) The bureau's efforts with respect to, and extent of
institution compliance with, the public and student disclosure
requirements of this chapter.
(D) Whether the bureau's staffing level and expertise are
sufficient to fulfill its statutory responsibilities.
(c) Bureau staff and management shall cooperate with the
Legislative Analyst's Office and the California State Auditor's
Office and shall provide those agencies with access to data, case
files, employees, and information as those agencies may, in their
discretion, require for the purposes of this section.
SEC. 91. Section 94949 is added to the
Education Code , to read:
94949. (a) The board shall contract for an independent review of
its staffing resources, and provide the Legislature a copy of this
review along with an overview of how the board intends to ensure its
staff are sufficiently qualified for purposes of implementing the
provisions of this chapter, within 30 days of the completion of the
independent review.
(b) (1) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2019.
SECTION 1. SEC. 92. Section 94950 of
the Education Code is amended to read:
94950. This chapter shall remain in effect only until January 1,
2019 2017 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2019 2017 , deletes or
extends that date.
SEC. 2. SEC. 93. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.