Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__277198AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-23</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-04-07</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2771</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Committee on Business and Professions</ns0:AuthorText>
<ns0:Authors>
<ns0:Committee>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Committee on Business and Professions</ns0:Name>
</ns0:Committee>
</ns0:Authors>
<ns0:Title> An act to amend Sections 94801.5, 94874, 94874.7, 94885, 94885.5, 94885.7, 94887, 94890, 94891, 94894, 94897, 94902, 94909, 94911, 94912.5, 94913, 94916, 94923, 94925, 94927.5, 94941, 94944, 94944.5, 94944.6, 94948, and 94950 of, and to repeal Section 94900.7 of, the Education Code, relating to private postsecondary education, and making an appropriation therefor.</ns0:Title>
<ns0:RelatingClause>private postsecondary education, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>California Private Postsecondary Education Act of 2009.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary educational institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires the Director of Consumer Affairs to provide biannual written updates to the Legislature that describe the bureau’s progress in protecting consumers and enforcing the act, as specified. The act is repealed on January 1, 2027.</html:p>
<html:p>This bill would instead require the director to provide those written updates to the Legislature annually and would
revise and recast provisions of the act.</html:p>
<html:p>The act requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with additional delineated requirements, including reporting to the bureau certain enforcement or adverse occurrences. The act requires the bureau, after receipt of such a report, to determine if the institution will be permitted to continue to enroll new students, as provided. The act requires the bureau to receive complaints about these institutions.</html:p>
<html:p>This bill would instead authorize the bureau, after receipt of a report or a complaint, to request from the institution information necessary to determine whether the institution’s registration
should be revoked or have conditions placed on it.</html:p>
<html:p>The act applies to private entities with a physical presence in the state that offer postsecondary education to the public for a charge, but exempts certain institutions from its application, including certain institutions that only offer educational programs to members of a bona fide trade or fraternal organization, as specified, and certain religious organizations if instruction is limited to the principles of that religious organization.</html:p>
<html:p> This bill would clarify that institutions can qualify for the trade or fraternal organization exemption only if they offer nondegree educational programs to those members, and that adding religious perspectives or verbiage to the titles or descriptions of otherwise secular programs does not limit instruction to the principles of that religious organization for purposes of the religious organization exemption. The bill would specify
processes for and limits on granting a verification of exemption.</html:p>
<html:p>The act requires an institution seeking to offer one or more degree programs to satisfy certain requirements to obtain a provisional approval to operate. The act requires, within the first 2 years of the issuance of provisional approval to operate degree programs, a visiting committee to make a recommendation to the bureau regarding an institution’s progress to achieving full accreditation. The act requires the bureau to automatically suspend a provisional approval to operate if an institution fails to comply with certain requirements. The act requires the bureau to grant an institution that is accredited an approval to operate by means of its accreditation. The act exempts an accredited institution from certain recordkeeping requirements.</html:p>
<html:p>This bill would require accreditation for degree-granting institutions to cover all degree programs offered by the
institution. The bill would require, for institutions seeking a provisional approval to operate, that enrollment of students on student visas not exceed more than 25% of total enrollment in any provisionally approved degree program. The bill would authorize, within the first 4 years of the issuance of a provisional approval to operate degree programs, the bureau to empanel a visiting committee to make a recommendation to the bureau regarding an institution’s progress to achieving full accreditation. The bill would require the bureau to automatically terminate a provisional approval to operate if an institution fails to comply with certain requirements. The bill would specify, for an approval to operate by means of its accreditation, that a nondegree program not within the scope of accreditation is not included as an approved program by the bureau without the written consent of the institution’s accreditating agency. The bill would remove the recordkeeping exemption for accredited institutions. The bill would
remove a requirement that the bureau indicate in an annual report and make available on its internet website the number of enforcement actions taken by the bureau against institutions.</html:p>
<html:p>The act requires an institution to obtain bureau approval before making certain substantive changes to its operations, including an addition of a separate branch more than 5 miles from the main or branch campus. The act requires that a student enrollment agreement, school catalog, and other disclosures meet certain requirements.</html:p>
<html:p>This bill instead would require an institution to obtain bureau approval before adding a separate branch, regardless of the distance from the main or branch campus. The bill would revise the requirements
for a student enrollment agreement, school catalog, and other disclosures.</html:p>
<html:p>The act establishes the Student Tuition Recovery Fund, 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 continuously appropriates the moneys in the fund to the bureau for specified purposes.</html:p>
<html:p>This bill would expand the claims under which a student is eligible for payment from the fund and the evidence available to the bureau in making determinations about student eligibility under the fund.</html:p>
<html:p>The bill would make other conforming, technical, and nonsubstantive changes and would extend the operation of the act by 4 years to January 1, 2031.</html:p>
<html:p>By expanding the scope and extending the operation of the Student Tuition Recovery Fund, a continuously appropriated fund, this bill would make an appropriation.</html:p>
<html:p>Under existing law, the act specifies conduct by regulated institutions that, if undertaken, is a crime.</html:p>
<html:p>Because this bill would extend the application of those criminal provisions, it would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_73A04F43-CA30-40A3-ABEF-6DC18A5757F3">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94801.5.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94801.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_F8E8CD47-09BC-443C-8A0C-F72AF5CABEE9">
<ns0:Num>94801.5.</ns0:Num>
<ns0:LawSectionVersion id="id_6B7EE7B8-4BE0-4CE4-B841-D2B5274A329A">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Evidence of institutional accreditation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The agent for service of process
consistent with Section 94943.5.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A copy of the institution’s catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the
institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institution’s failure to provide educational services, including a complaint alleging a
violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Any additional documentation the bureau deems necessary for consideration in the registration process.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When considering
whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Not consider any individual submission made under paragraph (1) to be solely determinative of the institution’s eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureau’s decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or
student aid.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The institution settles, or is adjudged to have liability for, a civil complaint alleging the institution’s failure to provide educational services, including a complaint alleging a violation of Title IX of the federal
Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Upon receipt of any of the notifications in paragraph (3) of subdivision (a), or in response to a complaint submitted pursuant to subdivision (g), the bureau may request from the institution, and the institution shall provide, information necessary to determine whether the institution’s registration should be revoked or have conditions placed upon it.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or
to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This subdivision shall not be construed as preventing the bureau from revoking an institution’s registration on any other grounds specified in this chapter. This
section shall not be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section does not apply to a higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This section does not apply to a higher education 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 may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An institution described in subdivision (a) that fails to comply with this section is not authorized to operate in this state. Any institution whose registration is denied or revoked is authorized to reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A registration with the bureau pursuant to this section shall be valid for five years.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter,
but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_0EDD50F7-52C1-41F0-9B1F-BE8FB4E50CA2">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94874.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94874 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_7B359328-2CA2-4486-8E42-71AE285E07EF">
<ns0:Num>94874.</ns0:Num>
<ns0:LawSectionVersion id="id_97FB3EFF-E4FA-4F43-B15E-DDB0525AA803">
<ns0:Content>
<html:p>Except as provided in Sections 94874.2, 94874.7, and 94927.5, the following are exempt from this chapter:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
An institution that offers solely avocational or recreational educational programs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An institution only offering nondegree educational programs to members of a bona fide trade, business, professional, or fraternal organization that is separate and distinct from the institution and that sponsors the educational programs. An institution that sponsors an educational program directly or through an affiliated division or corporate entity of the institution and that requires student
membership for purposes of those educational programs does not qualify under this exemption.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Except as provided in subparagraph (B), a bona fide organization, association, or council that offers preapprenticeship training programs, on behalf of one or more Division of Apprenticeship Standards-approved labor-management apprenticeship programs that satisfies one of the following conditions:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
It is not on the Eligible Training Provider List established and maintained by the California Workforce Development Board but has met the requirements for placement on the list.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
It is on the Eligible Training Provider List established and maintained by the California Workforce Development Board and meets the requirements for continued listing.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If an organization, association, or council has been removed from the Eligible Training Provider List established and maintained by the California Workforce Development Board for failure to meet performance standards, it is not exempt until it meets all applicable performance standards.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A postsecondary educational institution established, operated, and governed by the federal government or by this state or its political subdivisions.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An institution offering either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Test preparation for examinations required for admission to a postsecondary educational institution.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Continuing education or license examination preparation, if the institution or the program is approved, certified, or sponsored by any of the
following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A government agency, other than the bureau, that licenses persons in a particular profession, occupation, trade, or career field.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A bona fide trade, business, or professional organization.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The instruction is limited to the principles of that religious organization, or to courses offered pursuant to Section 2789 of the Business and Professions Code. Adding religious perspectives or verbiage to the titles or descriptions of otherwise secular programming or career preparation does not limit instruction to the principles of that religious organization.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The diploma or degree is limited to evidence of completion of that education.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An institution
operating under this subdivision shall not award degrees in any area of physical science.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
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.”
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
An institution that does not award degrees and that solely provides or offers to the public
educational programs for total charges of two thousand five hundred dollars ($2,500) or less, unless the institution receives funds through state or federal programs for postsecondary education or training or participates in those programs. The bureau may adjust this cost threshold based upon the California Consumer Price Index and post notification of the adjusted cost threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
A nonprofit public benefit corporation that satisfies all of the following criteria:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Is qualified under Section 501(c)(3) of the United States Internal Revenue Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Is organized specifically to provide workforce development or rehabilitation services.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Is accredited by an accrediting organization for workforce development or rehabilitation services recognized by the Department of Rehabilitation.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Flight instruction providers or programs that provide flight instruction pursuant to Part 141 (commencing with Section 141.1) of Title 14 of the Code of Federal Regulations and meet both of the following criteria:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The flight instruction provider or program does not require students to enter into written or oral contracts of indebtedness.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An institution owned, controlled, operated, and maintained by a community-based organization, as defined in Section 7801 of Title 20 of the United States Code, as that section exists on March 1, 2017, that satisfies all of the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The institution has programs on or is applying for some or all of their programs to be on the Eligible Training Provider List established and maintained by the California Workforce Development Board.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The institution is registered as a nonprofit entity qualified under Section 501(c)(3) of the federal Internal Revenue Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The institution does not offer degrees, as defined in Section 94830.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The institution does not offer educational programs designed to lead directly or specifically to positions in a profession, occupation, trade, or career field requiring licensure, if bureau approval is required for the student to be eligible to sit for licensure.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The institution would not otherwise be subject to oversight of the bureau under this chapter if it did not receive funding under the federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.). For purposes of this requirement, funds received through the federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.) do not count towards the total referenced in subdivision (f) or any other fee charge limitation condition for an exemption from this chapter.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The institution can provide a letter from the local workforce development board that demonstrates the institution has met the initial criteria of that board.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An institution granted an exemption pursuant to paragraph (1) shall comply with all of the following requirements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The institution shall provide to the Employment Development Department all required tracking information and data necessary to comply with performance reporting requirements under the federal Workforce Innovation and Opportunity Act, codified in Chapter 32 (commencing with Section 3101) of Title 29 of the United States Code, for programs on the Eligible Training Provider List.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The institution shall comply with the Eligible Training Provider List policy developed by the
California Workforce Development Board.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The institution shall not charge a student who is a recipient of funding under the federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.) any institutional charges, as defined in Section 94844, for attending and participating in the program.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_5AC4096D-766C-4F7F-A9E6-5DD29FA883C5">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94874.7.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94874.7 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_EF1C6289-3933-4AFB-98D7-EFFBF55FEF53">
<ns0:Num>94874.7.</ns0:Num>
<ns0:LawSectionVersion id="id_A0129C82-26DE-4C7B-9537-2E13F78B2CF3">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The bureau shall establish, by regulation, a process pursuant to which an institution that is exempt from this chapter may request from the bureau verification that the institution is exempt. The verification shall be valid for a period of up to two years, as long as the institution maintains full compliance with the requirements of the exemption.
In response to a request for verification, the bureau may approve the request, deny the request, or determine that it is unable to verify the exemption.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The bureau shall not grant a verification of exemption to an institution under either of the following conditions:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The institution previously held an approval to operate and has an outstanding citation or fine, or is under discipline.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The
institution offers one or more programs designed to lead to licensure that do not hold approval from the pertinent licensing body or bodies.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A bureau determination pertaining to a verification of exemption is not an adverse administrative action and is not subject to appeal.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A verification of exemption is not required to operate as an exempt institution.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The bureau shall establish a reasonable fee to reimburse the bureau’s costs associated with the implementation of this section.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_4C22DEF4-ED8C-4693-8EFD-2311B0AFF973">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94885.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94885 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_3D3F6546-ADC4-46A0-9C0C-B376FDAC6449">
<ns0:Num>94885.</ns0:Num>
<ns0:LawSectionVersion id="id_1397A9ED-AA6D-4730-8E34-1A4770734CA4">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The bureau shall adopt by regulation minimum operating standards for an institution that shall reasonably ensure that all of the following occur:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The content of each educational program can achieve its stated objective.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The institution maintains specific written standards for student admissions for each educational program and those standards are related to the particular educational program.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The facilities, instructional equipment, and materials are sufficient to enable students to achieve the educational program’s goals.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The institution maintains a
withdrawal policy and provides refunds.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The directors, administrators, and faculty are properly qualified.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The institution is financially sound and capable of fulfilling its commitments to students.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
That, upon satisfactory completion of an educational program, the institution gives students a document signifying the degree or diploma awarded.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Adequate records and standard transcripts are maintained and are available to students.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The institution is maintained and operated in compliance with this chapter and all other applicable ordinances and laws.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An
institution offering a degree must satisfy one of the following requirements:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Accreditation by one or more accrediting agencies recognized by the United States Department of Education, with the scope of that accreditation covering the offering of
all degree programs offered by the institution.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An accreditation plan, approved by the bureau, for the institution to become fully accredited within five years of the bureau’s issuance of a provisional approval to operate to the institution’s degree programs. The provisional approval for the unaccredited institution to operate degree programs shall be in compliance with Section 94885.5.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For institutions that are approved by means of accreditation and accredited by an agency that loses recognition by the United States Department of Education, an application for approval to operate an institution unaccredited shall be submitted to the
bureau within six months of the agency’s loss of recognition. The application shall include an accreditation plan for the institution to become fully accredited by an accrediting agency recognized by the United States Department of Education within five years of the bureau’s issuance to the institution of a provisional approval to operate degree programs. If the institution fails to submit the required application and accreditation plan within six months of its accreditor’s loss of recognition, the institution shall cease to hold a valid approval to operate. The bureau shall review the submitted application and accreditation plan and issue the institution a provisional approval to operate degree programs within 18 months of the accreditor’s loss of recognition or deny the application, at which time the institution shall cease to hold a valid approval to operate. An unaccredited institution with a provisional approval to operate degree programs shall comply with Section 94885.5, except for paragraph (1) of
subdivision (a) of Section 94885.5. The institution shall not seek bureau approval for additional degree programs until the institution regains accreditation.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_ECAC8152-61B6-4C75-83E5-335031ECF18C">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94885.5.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94885.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_D81D2F74-98C4-4847-B924-26C9534F3C51">
<ns0:Num>94885.5.</ns0:Num>
<ns0:LawSectionVersion id="id_E28B8060-B9F3-4A70-A68A-142F9666454E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
If an institution that has not been accredited by an accrediting agency recognized by the United States Department of Education seeks to offer one or more degree programs, the institution shall satisfy the following requirements in order to be issued a provisional approval to operate degree programs from the bureau:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The institution shall not offer more than two degree programs during the term of its provisional approval to
operate degree programs.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Enrollment of students on student visas shall not exceed 25 percent of total enrollment in any provisionally approved degree program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The institution shall submit an accreditation plan, approved by the bureau, for the institution to become fully accredited within five years of issuance of its provisional approval to operate degree programs. The plan shall include, at minimum, identification of an accreditation agency recognized by the United States Department of Education
from which the institution plans to seek accreditation, and outline the process by which the institution will achieve accreditation candidacy or preaccreditation within two years, and full accreditation within five years, of issuance of its provisional approval to operate degree programs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The institution shall submit to the bureau all additional documentation the bureau deems necessary to determine if the institution will become fully accredited within five years of issuance of its provisional approval to operate degree programs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If an institution is granted a provisional approval to operate degree programs pursuant to subdivision (a), the following
is required:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Students seeking to enroll in that institution shall be notified in writing by the institution, before the execution of the student’s enrollment agreement, that the institution’s approval to operate is contingent upon it being subsequently accredited.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Within the first
four years of issuance of the provisional approval to operate degree programs,
the bureau may empanel a visiting committee to review the institution’s accreditation plan and any related documents or materials as determined by the visiting committee, and make a recommendation to the bureau regarding the institution’s progress to achieving full accreditation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The institution shall provide evidence of accreditation candidacy or pre-accreditation within two years of issuance
of its provisional approval to operate degree programs, and evidence of accreditation within five years of issuance of its provisional approval to operate degree programs, with the scope of that accreditation covering the offering of at least one degree program.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except as provided in paragraph (2), an institution required to comply with this section that fails to do so by the dates provided, as required, or for which accreditation is removed or revoked by the accrediting agency, shall have its provisional approval to operate degree programs automatically terminated on the applicable date. The bureau shall issue an order
terminating the institution’s degree programs. An institution that has its degree programs terminated shall not enroll new students in any of its degree programs and shall execute a teach-out plan for its enrolled students in those degree programs.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
This section does not prohibit an institution from voluntarily ceasing to pursue
accreditation. An institution that voluntarily ceases to pursue accreditation shall immediately notify the bureau in writing of the institution’s intent to stop offering its degree programs and shall comply with all other applicable laws and regulations. Upon the bureau’s receipt of the notification, the institution’s approval to operate degree programs is deemed voluntarily surrendered.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An institution offering both degree and nondegree programs that has its provisional approval to operate degree programs terminated or that voluntarily ceases to pursue accreditation may continue to offer its nondegree programs, subject to all other laws and regulations.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
An institution that
is pursuing accreditation under this section shall not make a change in ownership, change in control, or change in business organization form pursuant to Sections 94893 and 94894 until the institution obtains full accreditation.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The bureau shall, upon the timely submission of sufficient evidence that an unaccredited institution is making strong progress toward obtaining accreditation, or if warranted by the accrediting agency’s conditions for applying for accreditation related to student enrollment or graduation, grant an institution’s request for an extension of time, not to exceed a combined total of five years, to meet the requirements of this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Evidence submitted to the bureau pursuant to paragraph (1) shall include, but is not limited to, an amended accreditation plan adequately identifying why preaccreditation, accreditation
candidacy, or accreditation outlined in the original plan submitted to the bureau was not achieved, active steps the institution is taking to comply with this section, and documentation from an accrediting agency demonstrating either the institution’s likely ability to meet the requirements of this section or the accrediting agency’s relevant conditions for an institution to apply for accreditation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The bureau may establish policies and procedures to comply with the requirements in this subdivision. Establishment of these policies and procedures are exempt from Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
An institution issued a provisional approval to operate degree programs under
this section is required to comply with all other laws and regulations.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The bureau shall adopt emergency regulations for purposes of implementing this section. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process on or before September 29, 2015.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
An institution with a provisionally
approved degree program that is terminated by the bureau or surrendered by the institution shall not apply for a provisional approval to operate degree programs until two years after the date of the prior termination or surrender.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_8E7519FC-73EE-4964-91E4-56EDB71BF449">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94885.7.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94885.7 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_5318E58F-BED2-4957-B006-D44AE2C987BE">
<ns0:Num>94885.7.</ns0:Num>
<ns0:LawSectionVersion id="id_6B203D6C-A855-409C-A395-F52A6A2886F8">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
When an institution offering at least one degree program has ceased to be accredited by an accrediting agency recognized by the United States Department of Education, the institution shall notify the bureau immediately, but no more than seven days after it ceases to be accredited. The institution’s approval to operate degree programs shall become provisional as of the date that the institution ceases to be accredited.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An institution that has had its approval to operate degree programs become provisional shall satisfy the following requirements in order to maintain its provisional approval to operate degree programs from the bureau:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The institution shall not seek bureau approval for
additional degree programs until the institution regains accreditation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Within six months of its approval to operate degree programs becoming provisional, the institution shall submit an accreditation plan, to be approved by the bureau, for the institution to become fully accredited within five years of the date of its provisional approval to operate degree programs. The plan shall include, at minimum, identification of an accreditation agency recognized by the United States Department of Education from which the institution plans to seek accreditation, and outline the process by which the institution will achieve accreditation candidacy or
preaccreditation within two years, and full accreditation within five years, of its provisional approval to operate degree programs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The institution shall submit to the bureau all additional documentation the bureau deems necessary to determine if the institution will become fully accredited within five years of its approval to operate degree programs being deemed provisional.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An institution that satisfies the requirements of subdivision (b) shall comply with both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Notify students seeking to enroll in the institution, in writing, before the execution of the student’s enrollment agreement, that the institution’s approval to operate a degree program is contingent upon the institution being subsequently accredited.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Within the first two years of the institution’s approval to operate degree programs being deemed provisional, a visiting committee, empaneled by the bureau pursuant to Section 94882, shall review the institution’s documentation of provisional approval and its accreditation plan, and make a recommendation to the bureau regarding the institution’s progress toward achieving full accreditation.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The bureau shall, upon the timely submission of sufficient evidence that an unaccredited institution is making strong progress toward obtaining accreditation, grant an institution’s request for an extension of time, not to exceed five years in total, to meet the requirements of this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Evidence submitted to the bureau pursuant to paragraph (1) shall include, but is not limited to, an
amended accreditation plan adequately identifying why
preaccreditation, accreditation candidacy, or accreditation outlined in the original plan submitted to the bureau was not achieved, active steps the institution is taking to comply with this section, and documentation from an accrediting agency demonstrating the institution’s likely ability to meet the requirements of this section.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The bureau may establish policies and procedures to comply with the requirements of this subdivision. Establishment of these policies and procedures are exempt from Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Any institution that fails to comply with the requirements of this section by the dates provided shall
have its provisional approval to operate degree programs automatically terminated on the applicable date. The bureau shall issue an order
terminating the institution’s provisional approval to operate degree programs. An institution with a terminated provisional approval to operate degree programs shall not enroll new students in any of its degree programs and shall execute a teach-out plan for its enrolled students.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section does not prohibit an institution from voluntarily ceasing to pursue accreditation. An institution that voluntarily ceases to pursue accreditation shall immediately notify the bureau in writing of the institution’s intent to stop offering its degree programs and shall comply with all other applicable laws and regulations. Upon the bureau’s receipt of the notification,
the institution’s approval to operate degree programs is deemed voluntarily surrendered.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An institution offering both degree and nondegree programs that has its provisional approval to operate degree programs terminated or that voluntarily ceases to pursue accreditation may continue to offer its nondegree programs and is subject to all other laws and regulations.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An institution that is pursuing accreditation under this section shall not make a change in ownership, change in control, or change in business organization form pursuant to Sections 94893 and 94894 until the institution obtains full accreditation.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_A9CD9FB9-165F-46A0-9A4B-2F627163F22B">
<ns0:Num>SEC. 7.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94887.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94887 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_2A83E0F9-03C9-45BB-800A-5E319F0EBD5D">
<ns0:Num>94887.</ns0:Num>
<ns0:LawSectionVersion id="id_ADBD7039-C3C7-4E90-B1BF-89F70C91F47D">
<ns0:Content>
<html:p>An approval to operate shall be granted only after an applicant has presented sufficient evidence the bureau through site visits or other methods deemed appropriate by the bureau, that the applicant has satisfied the minimum operating standards. The bureau shall deny an application for an approval to operate if the application does not satisfy those standards. The bureau may deny an
application for an approval to operate institutions that would be owned by, have persons in control of, or employ institution managers that had knowledge of, should have known, or knowingly participated in any conduct that was the cause for revocation or unmitigated discipline at another institution.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_F9104D18-7372-4512-888A-C5719F2C2A1B">
<ns0:Num>SEC. 8.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94890.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94890 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_DA15F116-AB85-43C5-BD11-F494DA44AE02">
<ns0:Num>94890.</ns0:Num>
<ns0:LawSectionVersion id="id_ADF6F3A1-FD07-452D-B05C-59FAF95F4EFA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The bureau shall grant an institution that is accredited an approval to operate by means of its accreditation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A nondegree program not within the scope of accreditation shall not be included as an approved program by the bureau without the express written consent of the institution’s accrediting agency.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The bureau shall 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. The bureau shall establish application processing goals and timelines to ensure that an institution that has submitted a complete application for approval to operate by means of its accreditation has that application promptly reviewed for compliance within 30 days of the bureau’s receipt of the application or within an appropriate timeline as determined by the bureau. The timelines shall ensure that an institution that has submitted a complete and compliant application receives approval within 30 days of the application being deemed compliant by the bureau, or within an appropriate timeline as determined by the bureau.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
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, on a form provided by the bureau, that the
institution’s accreditation has been renewed.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_C4C7165D-61A0-42A9-AF3E-A42D678A7C64">
<ns0:Num>SEC. 9.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94891.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94891 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_F5FD6682-E265-46EB-A6E8-A75A64C5C863">
<ns0:Num>94891.</ns0:Num>
<ns0:LawSectionVersion id="id_F7489FD0-6A42-4F4F-A6B1-9A2B9FA11511">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The bureau shall adopt by regulation the process and procedures whereby an institution may obtain a renewal of an approval to operate.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
To be granted a renewal of an approval to operate, the institution shall demonstrate its continued compliance with the minimum operating standards.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An institution that is denied renewal of an approval to operate may file an appeal in accordance with the procedures established by the bureau pursuant to Section 94888.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An institution that has filed an appeal of a denial of a renewal application may continue to operate during the appeal process, but shall disclose in a written statement, approved by the bureau, to all current and prospective students, that the institution’s application for renewal of approval to operate was denied by the bureau because the bureau determined the application did not satisfy the requirements to operate in California, that the institution is appealing the bureau’s decision, and that the loss of the appeal may result in the institution’s closure.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the bureau determines that the continued operation of the institution during the appeal process poses a significant risk
of harm to students, the bureau shall make an emergency decision pursuant to its authority provided in Section 94938.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_1E3E9FA0-4317-4179-A652-34A1BDE8CB24">
<ns0:Num>SEC. 10.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94894.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94894 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_ABD70A22-60BA-4AA0-9E0B-5A486A72F1AA">
<ns0:Num>94894.</ns0:Num>
<ns0:LawSectionVersion id="id_2D7521C2-3275-46F8-8CE0-477DC0F88F26">
<ns0:Content>
<html:p>The following changes to an approval to operate are considered substantive changes and require prior authorization:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
A change in educational objectives, including an addition of a new diploma or a degree educational program unrelated to the approved educational programs offered by the institution.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A change in ownership or person in control.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A change in control.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A change in business organization form.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A change of location.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A change of
name.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
A significant change in the method of instructional delivery.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
An addition of a separate branch.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
An increase or decrease of 25 percent or more in the number of clock hours or credit hours required for successful completion of the program.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Participation in federal student financial aid programs authorized by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
A change in the
academic measurement of an educational program from clock hours to credit hours.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
A change in the distance education learning management system.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_1F7C24F7-044C-4B11-9DEA-11D4526C0B3F">
<ns0:Num>SEC. 11.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94897.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94897 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_55324912-8B5B-4D46-871D-7FF09C6EDAE7">
<ns0:Num>94897.</ns0:Num>
<ns0:LawSectionVersion id="id_4B16896F-3A8A-477F-AEF9-E48F4D70CB85">
<ns0:Content>
<html:p>An institution shall not do any of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Use a name in any manner improperly implying any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The institution is a public institution.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The institution grants degrees, if the institution does not grant degrees.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
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; a financial report filed with the bureau; information or records relating to the student’s eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
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. An institution may not state or imply either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The institution or its educational
programs are endorsed or recommended by the state or by the bureau.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
Direct any individual to do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Perform an act that violates this chapter.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Refrain from reporting unlawful conduct to the bureau or another government agency.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Engage in any unfair act to persuade a student not to complain to the bureau or another government agency.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
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):
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
Require a prospective student to provide personal contact information in order to obtain, from the institution’s internet website, 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.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
Offer an associate, baccalaureate, master’s, or doctoral degree without disclosing to prospective students before 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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institution’s authority or the pretense or appearance of the institution’s authority.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.
</html:p>
<html:p>
(s)
<html:span class="EnSpace"/>
Violate Section 1788.93 of the Civil
Code or withhold documentation required pursuant to Section 909 of Title 16 of the California Code of Regulations because the student owes a debt or as a tool for debt collection.
</html:p>
<html:p>
(t)
<html:span class="EnSpace"/>
Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institution’s intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.
</html:p>
<html:p>
(u)
<html:span class="EnSpace"/>
Fail to maintain policies related to compliance with this chapter or adhere to the institution’s stated policies.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_529FE0B1-1218-44D2-93C8-CDDA4838A1FD">
<ns0:Num>SEC. 12.</ns0:Num>
<ns0:ActionLine action="IS_REPEALED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'9.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94900.7.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94900.7 of the
<ns0:DocName>Education Code</ns0:DocName>
is repealed.
</ns0:ActionLine>
<ns0:Fragment/>
</ns0:BillSection>
<ns0:BillSection id="id_70412107-2CCA-4CC8-9C82-86AA0A887571">
<ns0:Num>SEC. 13.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94902.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94902 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_6FA51384-E3B4-4F3C-AECB-1EAE14B7DB6B">
<ns0:Num>94902.</ns0:Num>
<ns0:LawSectionVersion id="id_6E6EACF1-2A61-4D2F-B5A9-7F2526C8ED0F">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A student shall enroll solely by means of executing an enrollment agreement. The enrollment agreement shall be signed and dated by the student and by an authorized employee of the institution.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An enrollment agreement is not enforceable unless all of the following requirements are met:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The student has received the institution’s current catalog and School Performance Fact Sheet before
signing the enrollment agreement.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
At the time of the execution of the enrollment agreement, the institution held a valid approval to operate.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Before the execution of the enrollment agreement, the student and the institution have signed and dated the information required to be disclosed in the School Performance Fact Sheet pursuant to subdivisions (a) to (d), inclusive, of Section 94910. Each of these items in the School Performance Fact Sheet shall include a line for the student to initial and shall be initialed and dated by the student.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A student shall receive a copy of the signed
enrollment agreement, in writing or electronically, regardless of whether total charges are paid by the student.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_0F6B8FF5-1B99-45F5-AEF4-BFC122E325B2">
<ns0:Num>SEC. 14.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94909.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94909 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_DA0836A2-FC6A-486E-873D-9AD434BB5395">
<ns0:Num>94909.</ns0:Num>
<ns0:LawSectionVersion id="id_5086E4AE-B0A8-4C4E-AB5D-82D11D1E3DED">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Except as provided in subdivision (d), before enrollment, an institution shall provide a prospective student, either in writing or electronically, with a current school catalog containing, at minimum, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The name, address, telephone number, and, if applicable, internet website address of the institution.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The following statements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“Any questions a student may have regarding this catalog that have not been satisfactorily answered by the institution may be directed to the Bureau for Private Postsecondary Education at (address), Sacramento, CA (ZIP Code), (internet website address), (telephone and fax numbers).”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“As a prospective student, you are encouraged to review this catalog before signing an enrollment agreement. You are also encouraged to review the School Performance Fact Sheet, which must be provided to you before signing an enrollment agreement.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
“A student or any member of the public may file a complaint about this institution with the Bureau for Private Postsecondary Education by calling (toll-free telephone number) or by completing a complaint form, which can be obtained on the bureau’s internet website (internet website
address).”
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
“The Office of Student Assistance and Relief is available to support prospective students, current students, or past students of private postsecondary educational institutions in making informed decisions, understanding their rights, and navigating available services and relief options. The office may be reached by calling (toll-free telephone number) or by visiting (internet website address).”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The address or addresses where class sessions will be held.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Information regarding the faculty and their qualifications.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
A detailed description of institutional policies in the following areas:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Admissions policies, including the institution’s policies regarding the acceptance of credits earned at other institutions or through challenge examinations and achievement tests, 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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Probation and dismissal policies.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Attendance policies.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Leave-of-absence policies.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The schedule of total charges for a period of attendance and an estimated schedule of total charges for the entire educational program.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
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.).
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
If the institution provides placement services, a description of the nature and extent of the placement services.
</html:p>
<html:p>
(14)
<html:span class="EnSpace"/>
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 the student’s 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.
</html:p>
<html:p>
(15)
<html:span class="EnSpace"/>
The following statement:
</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
<html:p class="Boundary11">“NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED AT OUR INSTITUTION</html:p>
<html:p class="Boundary11">
<html:span class="EmSpace"/>
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.”
</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
<html:p>
(16)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states or become certified or registered as required for the applicable profession, occupation, trade, or career field in California.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If the institution has a general
student brochure,
handbook, or other student-facing materials that provide additional clarity about the information or policies required to be included in the catalog, the institution shall provide those materials to the prospective student before enrollment. In addition, if the institution has program-specific materials for the program in which the prospective student seeks to enroll, the institution shall provide the program-specific
materials to the prospective student before enrollment.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An accredited institution is not required to provide a School Performance Fact Sheet to a prospective student who is not a California resident, not residing in California at the time of the student’s enrollment, and enrolling in an accredited distance learning degree program offered by the institution, if the institution complies with all federal laws, the applicable laws of the state where the student is located, and other appropriate laws, including, but not limited to, consumer protection and student disclosure
requirements.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_AF977E01-297E-4698-868D-86DC98888A52">
<ns0:Num>SEC. 15.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94911.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94911 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_96754DDA-0EA5-44FD-BA32-E7892E674E79">
<ns0:Num>94911.</ns0:Num>
<ns0:LawSectionVersion id="id_EA3FA9A2-D547-401F-B47D-0A496A7DF318">
<ns0:Content>
<html:p>An enrollment agreement shall include, at minimum, all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
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, and a description of the method of delivery that will be used for instruction in the educational program.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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,” followed by the relevant amounts of charges in bold, underlined type.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A clear and conspicuous statement that the enrollment agreement is legally binding when signed by the student and accepted by the institution.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The disclosure shall list the date of the first class session.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The transferability disclosure that is required to be included in the school catalog, as specified in paragraph (15) of subdivision (a) of Section 94909.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The following statement: “Prior to signing this enrollment agreement, you must be given a copy of the institution’s current catalog, a brochure, or handbook, as applicable,
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.”
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The following statements:
</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
<html:p class="Boundary11">
(1)
<html:span class="EnSpace"/>
“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 for Private Postsecondary Education at (address), Sacramento, CA (ZIP Code), (internet website address), (telephone and fax numbers).”
</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“A student or any member of the public may file a complaint about this institution with the Bureau for Private Postsecondary Education by calling (toll-free telephone number) or by completing a complaint form, which can be obtained on the bureau’s internet website (internet website address).”
</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
The following statement above the space for the student’s signature and date:
</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
<html:p class="Boundary11">“I understand that this is a legally binding contract. By signing and dating this contract, I certify 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.”</html:p>
<html:p>
<html:span class="EnSpace"/>
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_81B6ABF1-5B32-405C-8CF5-DE07814BCFCB">
<ns0:Num>SEC. 16.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94912.5.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94912.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_7C09972F-75AA-4B09-943D-5F4F75AA401C">
<ns0:Num>94912.5.</ns0:Num>
<ns0:LawSectionVersion id="id_8658F7EA-33D7-4838-97E6-1873F570B2C2">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
By January 1, 2020, and permanently thereafter, each institution subject to this chapter that participates in federal student financial aid programs, including, but not limited to, those programs authorized by Title IV of the federal Higher Education Act of 1965 or veterans’ financial aid programs authorized pursuant to Section 21.4253 of Title 38 of the Code of Federal Regulations, shall provide students with the College Financing Plan as developed by the United States Department of
Education, or any successor document, to inform students or potential students about financial aid award packages before enrollment. A copy of this document shall be retained with other required student records.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In implementing this section, an institution that is subject to this chapter that participates in federal student financial aid programs, including, but not limited to, those programs authorized by Title IV of the federal Higher Education Act of 1965 or veterans’ financial aid programs
authorized pursuant to Section 21.4253 of Title 38 of the Code of Federal Regulations, may seek guidance as needed from the United States Department of Education.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_9A785579-5703-4A7A-98CC-989EA5950E1E">
<ns0:Num>SEC. 17.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94913.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94913 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_9A00CED3-40AC-4E18-A22C-B8DEE3B17712">
<ns0:Num>94913.</ns0:Num>
<ns0:LawSectionVersion id="id_06817C42-EDED-43A8-8DA5-8D6310F17FCC">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An institution that maintains an internet website shall provide on that internet website the current version of all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The school catalog.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A School Performance Fact Sheet for each educational program offered by the institution.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Student brochures, handbooks, or other student-facing materials offered by the
institution that provide additional clarity about the information or policies required to be included in the catalog.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A link to the bureau’s internet website.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The institution’s most recent annual report submitted to the bureau.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An institution shall include information concerning where students may access the bureau’s internet website anywhere the institution identifies itself as being approved by the bureau.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_50740B78-2CAB-492B-9DC3-743FC4A2B0F8">
<ns0:Num>SEC. 18.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'12.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94916.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94916 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_91768EDB-641E-403A-81EB-269C49D3D427">
<ns0:Num>94916.</ns0:Num>
<ns0:LawSectionVersion id="id_979BCC97-AE22-4B52-A4EE-04BC06AA15B6">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An institution directly or indirectly receiving proceeds from a credit contract or extending credit or lending money to an individual for institutional and noninstitutional charges for an educational program shall cause any note, instrument, or other evidence of indebtedness taken in connection with that extension of credit or loan to be conspicuously marked on its face in at least 12-point type with the following notice:
</html:p>
<html:p>
<html:span class="EmSpace"/>
</html:p>
<html:p class="Centered">“NOTICE”</html:p>
<html:p>“You may
assert against the holder of the credit contract you signed in order to finance the cost of the educational program all of the claims and defenses that you could assert against this institution. Recovery under this provision may not exceed the amount you have already paid under the credit contract.”</html:p>
<html:p>
<html:span class="EmSpace"/>
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is a violation of
this chapter for an institution to directly or indirectly receive proceeds from a credit contract that does not contain the notice described in subdivision (a).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_BFFCCAFF-76E4-4A91-9324-54DD63CA694E">
<ns0:Num>SEC. 19.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'14.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94923.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94923 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_5D0CA6BC-A036-4A23-B301-3B40A93045B6">
<ns0:Num>94923.</ns0:Num>
<ns0:LawSectionVersion id="id_A64F7829-1206-4044-8D37-FEC0D83EB7C9">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Student Tuition Recovery Fund relieves or mitigates economic loss suffered by a student in connection with enrollment in an institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the student’s enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The
fund shall be used to provide awards to students who suffer economic loss.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Any student who was enrolled at an institution, at a location of the institution, or in an educational program offered by the institution, at the time that institution, location, or program was closed or discontinued, as applicable, who did not choose to participate in a teach-out plan approved by the bureau or did not complete a chosen teach-out plan approved by the bureau.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Any student who was enrolled at an institution or a location of the institution within the 120-day period before the closure of the institution or location of the institution, or who was enrolled in an educational program within
the 120-day period before the program was discontinued.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Any student who was enrolled at an institution or a location of the institution more than 120 days before the closure of the institution or location of the institution, in an educational program offered by the institution as to which the bureau determines there was a significant decline in the quality or value of the program more than 120 days before closure. In making this determination, the bureau may rely on findings by an oversight entity, as defined in Section 94934.5.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do
so, or a student to whom a government body, at any point, designates the student as eligible for relief under a program that addresses unlawful activity or closure, including, but not limited to, a refund, restoration of benefits, or loan discharge program such as federal “Closed School Discharge,” “False Certification,” or “Borrower Defense” programs.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A student to whom an institution has failed to pay or reimburse loan proceeds under a federal student loan program as required by law, or has failed to pay or reimburse proceeds received by the institution in excess of tuition and other costs.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A student who has been awarded restitution, a refund, or other
relief, including, but not limited to, an enforcement action, settlement agreement, debt relief determination, or monetary award by an arbitrator or court, based on unlawful activity by an institution or representative of an institution, but who has been unable to collect the award from the institution or obtain debt cancellation. The bureau shall review the award or judgment and shall ensure the amount to be paid from the fund does not exceed the student’s economic loss.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the student’s Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by
an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the student’s program at the institution.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Any student who is required to pay a Student Tuition Recovery Fund assessment who pays tuition equal to or greater than the required assessment shall be deemed to have paid the required assessment, whether or not the student’s enrollment agreement specifies collection of the required assessment, and whether
or not the institution identifies any money collected from the student as a Student Tuition Recovery Fund assessment.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A student who suffers educational opportunity losses, whose charges are paid by a third-party payer, is eligible for educational credits under the fund.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The bureau may seek repayment to the Student Tuition Recovery Fund from an institution found in violation of the law for which a student claim was paid. An institution shall not be eligible to renew its approval to operate with the bureau if the repayment is not made to the bureau as requested.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, “economic loss” includes, but is not limited to, any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
All cash or other consideration paid by the student
to the institution.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the student’s attendance at the institution, including related principal, interest, and any fees.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
All third-party payments, including government grants, paid to the student or to the institution in connection with the student’s attendance at the institution.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, or nonpecuniary damages such as inconvenience, aggravation, emotional distress, or punitive damages. Economic loss does not include legal fees, attorney fees, court costs, or arbitration fees. This
subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as “paid in full” to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than
four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In making a determination about student eligibility and economic loss, in addition to evidence submitted with an application, the bureau may consider all available evidence, including, but not limited to, evidence obtained in the bureau’s investigation and enforcement functions and evidence available to the bureau that is obtained in the course of oversight and enforcement actions by an accreditor, other government agency, or private adjudication. The bureau shall take into account the availability of records and may accept an attestation or other substantiation as deemed appropriate.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Any student whose loan is revived by a loanholder or debt
collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The bureau may use the moneys in the Student Tuition Recovery Fund to cover the costs of both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Student Tuition Recovery Fund claim administration.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Positions of the Office of Student Assistance and Relief.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_F371EEE2-780E-40AB-A1AD-010A3594FCF8">
<ns0:Num>SEC. 20.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'14.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94925.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94925 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_E4CADE38-20D1-4428-B4CB-878D7B2E5769">
<ns0:Num>94925.</ns0:Num>
<ns0:LawSectionVersion id="id_1AE5AD10-EBF5-442C-9939-29960AD9DEAF">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In determining the amount of Student Tuition Recovery Fund assessments to collect from each student pursuant to subdivision (a) of Section 94924, the bureau shall strive to maintain a fund balance in the Student Tuition Recovery Fund between fifteen million dollars ($15,000,000) and twenty-five million dollars ($25,000,000), inclusive.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An
otherwise eligible student who enrolled during a period when institutions were not required to collect Student Tuition Recovery Fund assessments is eligible for Student Tuition Recovery Fund payments despite not having paid any Student Tuition Recovery Fund assessment.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_36983814-04C8-430C-A7F5-337ED9C2B090">
<ns0:Num>SEC. 21.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'15.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94927.5.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94927.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_184F923C-DCCC-4051-A83D-DDB3C568613A">
<ns0:Num>94927.5.</ns0:Num>
<ns0:LawSectionVersion id="id_750F8B12-3FD1-41C1-9E8F-A2638BDB7C52">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Pursuant to regulations adopted by the bureau, an institution shall provide the bureau with the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Copies of pertinent student records, including transcripts, in electronic form, as determined by the bureau, pursuant to regulations adopted by the bureau.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
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).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_05AECD5C-EA85-4972-9D90-CD7EC931B071">
<ns0:Num>SEC. 22.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'18.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94941.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94941 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_B8899359-B204-4454-B6B0-C365720CD3D4">
<ns0:Num>94941.</ns0:Num>
<ns0:LawSectionVersion id="id_04563A7A-1FBD-4D6B-9270-AA1D97389528">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
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 against the institution. The complaint shall set forth the alleged violation, and shall contain any other information as may be required by the bureau.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
To ensure that the bureau’s resources are maximized for the protection of the public, the bureau, in consultation with the advisory committee, shall establish priorities for its inspections and other investigative and enforcement resources to ensure that institutions representing the greatest threat of harm to the greatest number of students are identified and disciplined by the bureau or referred to the Attorney General.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In developing its priorities for inspection, investigation, and enforcement regarding institutions, the bureau shall consider as posing heightened risks the characteristics of the following institutions:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An institution that receives significant public resources, including an institution that receives more than 70 percent of its revenues from federal financial aid, state financial aid, financial aid for veterans, and other public student aid funds.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An institution with a large number of students defaulting on their federal loans, including an institution with a three-year cohort default rate above 15.5 percent.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An institution with reported placement rates, completion rates, or licensure rates in an educational program that are far higher or
lower than comparable educational institutions or programs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An institution that experiences a dramatic increase in enrollment, recently expanded educational programs or campuses, or recently consolidated campuses.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
An institution that offers only nonremedial educational program courses in English, but enrolls students with limited or no English language proficiency.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
An institution that has experienced a recent change of ownership or control, or a change in the business organization of the institution.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
An institution with audited financial statements that do not satisfy the bureau’s requirements for financial stability.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
An institution that has recently been the subject of
an investigation, judgment, or regulatory action by, or a settlement with, a governmental agency.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
An institution that experiences institutional or programmatic accreditation restriction by an accreditor, government restriction of, or injunction against, its approval to operate, or placement on cash-reimbursement or heightened monitoring status by the United States Department of Education.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The bureau shall, in consultation with the advisory committee, adopt regulations to establish categories of complaints or cases that are to be handled on a priority basis. The priority complaints or cases shall include, but not be limited to, those alleging unlawful, unfair or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements, including all statements made or required to be made pursuant to the requirements of this chapter, related to any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Degrees, educational programs, or internships offered, the appropriateness of available equipment for a program, or the qualifications or experience of instructors.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Job placement, graduation, time to
complete an educational program, or educational program or graduation requirements.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Loan eligibility, terms, whether the loan is federal or private, or default or forbearance rates.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Passage rates on licensing or certification examinations or whether an institution’s degrees or educational programs provide students with the necessary qualifications to take these exams and qualify for professional licenses or certifications.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Cost of an educational program, including fees and other nontuition charges.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Affiliation with or endorsement by any government agency, or by any organization or agency related to the Armed Forces, including, but not limited to, groups representing veterans.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Terms of withdrawal and refunds from an institution.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Payment of bonuses, commissions, or other incentives offered by an institution to its employees or contractors.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_289E2DAE-8C84-42F1-8CE9-6FFEA739D3D4">
<ns0:Num>SEC. 23.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'18.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94944.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94944 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_7CF06130-0CFD-45C9-9FE0-AFADA86FB746">
<ns0:Num>94944.</ns0:Num>
<ns0:LawSectionVersion id="id_4AEAE628-CCEE-4F5D-A303-735D9B5C6EA0">
<ns0:Content>
<html:p>Notwithstanding any other law, the bureau shall cite any person, and that person shall be subject to a fine not to exceed one hundred thousand dollars ($100,000), for operating an institution or offering or providing to the public educational programs without proper approval to operate issued by the bureau pursuant to this chapter. The maximum fine for unlicensed activity is separate and not inclusive of fines for other violations or refunds ordered.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_E6EEC2D9-EC27-41E4-BA89-5132ED9D051A">
<ns0:Num>SEC. 24.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'18.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94944.5.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94944.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_2AF3CCED-6D06-4959-B0F1-1B01435DCD25">
<ns0:Num>94944.5.</ns0:Num>
<ns0:LawSectionVersion id="id_F12A437A-0795-4C4E-B911-B5B4EE4FF5F9">
<ns0:Content>
<html:p>Each institution subject to this chapter shall be deemed to have authorized its accrediting agency, or any accrediting agency from which it is pursuing accreditation, to provide the bureau, 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.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_E342DE29-7C34-4803-B5AB-119A24362210">
<ns0:Num>SEC. 25.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'18.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94944.6.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94944.6 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_1CF9316C-EC0B-4B38-906E-934C1CED5FC9">
<ns0:Num>94944.6.</ns0:Num>
<ns0:LawSectionVersion id="id_49AB256C-7BD3-488B-8D04-3787774DCD9D">
<ns0:Content>
<html:p>Within 30 days of receiving a written notice from the bureau, 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 or in pursuit of accreditation by that agency that are designated specifically or by category in the written notice.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_AA94A7CC-07F4-4F31-99CF-522990168EF9">
<ns0:Num>SEC. 26.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'20.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94948.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94948 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_E507EACD-ED3D-4E15-AC73-2A2C93E62FCA">
<ns0:Num>94948.</ns0:Num>
<ns0:LawSectionVersion id="id_7F59F163-C6C6-4A7E-BD5B-C58B426EC6E1">
<ns0:Content>
<html:p>In addition to any other reporting requirements under this chapter, the director shall provide written updates to the Legislature annually and shall participate in all oversight hearings conducted by the appropriate policy committees and budget subcommittees of the Senate and Assembly. The updates shall describe the bureau’s progress in protecting consumers and enforcing the provisions of this chapter and shall include, but not be limited to, all of the following information received pursuant to Section 325 of the Business and Professions Code:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The total number of student
complaints received.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The general nature of these complaints.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The outcome of these student complaints.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D7267B5E-B3B4-403F-B75A-3EDA921FE1B0">
<ns0:Num>SEC. 27.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'59.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'21.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'94950.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 94950 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_B138AB96-BFDD-4975-AFCD-AE4C2E41DBCB">
<ns0:Num>94950.</ns0:Num>
<ns0:LawSectionVersion id="id_BE691649-6B1F-4F03-913B-C173BA2A6D80">
<ns0:Content>
<html:p>This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed. </html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_CB3077DD-A43F-4E29-BC57-3EE5645F5798">
<ns0:Num>SEC. 28.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
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
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>