BILL NUMBER: SB 1247 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 18, 2014
AMENDED IN ASSEMBLY JULY 1, 2014
AMENDED IN ASSEMBLY JUNE 18, 2014
AMENDED IN ASSEMBLY JUNE 5, 2014
INTRODUCED BY Senator Lieu
(Principal coauthor: Assembly Member Bonilla)
FEBRUARY 20, 2014
An act to amend Section 27 of the Business and
Professions Code, to amend Sections 94800.5,
94801, 94802, 94804, 94808, 94809,
94809.5, 94813, 94816, 94829, 94837,
94838, 94847, 94861, 94874, 94874.1,
94874.7, 94874.8, 94875, 94876, 94877, 94878,
94879, 94881, 94882, 94883, 94884, 94880,
94885, 94887, 94888, 94890, 94891,
94892, 94893, 94895, 94896, 94897, 94898, 94900.7, 94904,
94909, 94910, 94911, 94913, 94920, 94921,
94916, 94923, 94924, 94926, 94927, 94927.5,
94928, 94929, 94925, 94929.5,
94929.7, 94929.8, 94930, 94930.5, 94931.5, 94932,
94932.5, 94933, 94933.5, 94934, 94935, 94936,
94937, 94938, 94939, 94941, 94942, 94943, 94943.5,
94944, 94944.5, 94944.6, 94945, 94948, and 94950 of,
to amend the heading of Article 5 (commencing with Section
94875) of Chapter 8 of Part 59 of Division 10 of Title 3 of,
to add Sections 94818.5, 94874.2,
94880.1, 94885.5, 94947, and 94875.5
94949.5 to, to add and repeal Section
Sections 94885.1 and 94929.9 of, to repeal Sections
94805, 94820, and 94833 of, and to repeal and add
Sections 94803, 94880, and Section 94949 of, the
Education Code, relating to private postsecondary education, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1247, as amended, Lieu. Private postsecondary education:
California Private Postsecondary Education Act of 2009.
Existing law, the California Private Postsecondary Education Act
of 2009, provides for the regulation of private postsecondary
educational institutions by the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs. The act exempts an
institution from its provisions, if any of a list of specific
criteria are met.
This bill would recast and revise various provisions of the act.
The bill would establish the Board for Private Postsecondary
Education as a successor agency to the bureau on July 1, 2015.
The bill would , beginning January 1, 2016,
remove the exemption from its provisions for an institution that is
approved to participate in veterans financial aid programs pursuant
to a specified federal law, and that is not an independent
institution of higher education, thereby making the act applicable to
the institution.
The bill would require the board, beginning July 1, 2015,
bureau to, among other things, contract with
the Office of the Attorney General, or other appropriate state
agency, to establish a process for board
bureau staff to be trained to investigate complaints filed with
the board, bureau, post specified
information on its Internet Web site, establish a task force no
later than March 1, 2015, to identify standards for specified
educational and training programs and provide a report to the
Legislature regarding those programs, adopt minimum operating
standards for an institution that ensure, among other things, that an
institution offering a degree is accredited and that an unaccredited
institution offering a degree satisfies certain requirements, and
establish application processing goals and timelines to ensure that
an institution's approval to operate application is promptly reviewed
by the board. The bill would require the board to submit a
report to the Legislature, on or before October 1, 2015, on whether
data reporting and disclosure requirements under the act may be
consolidated with reporting required by other federal and state
regulatory bodies, to submit a report to the Legislature relating to
an independent review of its staffing resources, and to contract with
the Office of the Attorney General for investigative and
prosecutorial services if the board has reason to believe that an
institution has engaged in a pattern or practice of violating the
provisions of this act or any other applicable law.
bureau.
The bill would require the Secretary of Business, Consumer
Services, and Housing, in consultation with the Legislature, to
appoint a Bureau for Private Postsecondary Education Monitor to carry
out specified duties to improve the bureau's operations, and would
require the monitor to submit specified reports to the Legislature
related to the bureau.
The bill would make other technical and conforming changes.
The act establishes the Student Tuition Recovery Fund and requires
the bureau to adopt regulations governing the administration and
maintenance of the fund, including requirements relating to
assessments on students and student claims against the fund, and
establishes that the moneys in this fund are continuously
appropriated to the bureau for specified purposes.
This bill would require those regulations to ensure that students
are eligible for payment from the fund in specified circumstances.
Existing law repeals that act on January 1, 2015.
This bill would instead repeal that act on January 1, 2017, thus
extending the operation of the act by 2 years.
By extending the operation of the Student Tuition Recovery Fund, a
continuously appropriated fund, this bill would make an
appropriation.
Under existing law, the act specifies conduct by regulated
institutions that, if undertaken, is a crime.
Because this bill would extend the application of those criminal
provisions, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would appropriate $130,000 from the Private
Postsecondary Education Administration Fund to the bureau for the
2014-15 fiscal year for staff support to the bureau and the advisory
committee, as specified.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 27 of the Business and
Professions Code is amended to read:
27. (a) Each entity specified in subdivisions (c), (d), and (e)
shall provide on the Internet information regarding the status of
every license issued by that entity in accordance with the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and the Information
Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of
Title 1.8 of Part 4 of Division 3 of the Civil Code). The public
information to be provided on the Internet shall include information
on suspensions and revocations of licenses issued by the entity and
other related enforcement action, including accusations filed
pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) taken by the entity relative to persons, businesses,
or facilities subject to licensure or regulation by the entity. The
information may not include personal information, including home
telephone number, date of birth, or social security number. Each
entity shall disclose a licensee's address of record. However, each
entity shall allow a licensee to provide a post office box number or
other alternate address, instead of his or her home address, as the
address of record. This section shall not preclude an entity from
also requiring a licensee, who has provided a post office box number
or other alternative mailing address as his or her address of record,
to provide a physical business address or residence address only for
the entity's internal administrative use and not for disclosure as
the licensee's address of record or disclosure on the Internet.
(b) In providing information on the Internet, each entity
specified in subdivisions (c) and (d) shall comply with the
Department of Consumer Affairs to Public Records Act Guidelines.
(c) Each of the following entities within the Department of
Consumer Affairs shall comply with the requirements of this section:
(1) The Board for Professional Engineers, Land Surveyors, and
Geologists shall disclose information on its registrants and
licensees.
(2) The Bureau of Automotive Repair shall disclose information on
its licensees, including auto repair dealers, smog stations, lamp and
brake stations, smog check technicians, and smog inspection
certification stations.
(3) The Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation shall disclose information on its
licensees and registrants, including major appliance repair dealers,
combination dealers (electronic and appliance), electronic repair
dealers, service contract sellers, and service contract
administrators.
(4) The Cemetery and Funeral Bureau shall disclose information on
its licensees, including cemetery brokers, cemetery salespersons,
cemetery managers, crematory managers, cemetery authorities,
crematories, cremated remains disposers, embalmers, funeral
establishments, and funeral directors.
(5) The Professional Fiduciaries Bureau shall disclose information
on its licensees.
(6) The Contractors' State License Board shall disclose
information on its licensees and registrants in accordance with
Chapter 9 (commencing with Section 7000) of Division 3. In addition
to information related to licenses as specified in subdivision (a),
the board shall also disclose information provided to the board by
the Labor Commissioner pursuant to Section 98.9 of the Labor Code.
(7) The Board for Private Postsecondary Education shall disclose
information on private postsecondary institutions under its
jurisdiction, including disclosure of notices to comply issued
pursuant to Section 94935 of the Education Code.
(8) The California Board of Accountancy shall disclose information
on its licensees and registrants.
(9) The California Architects Board shall disclose information on
its licensees, including architects and landscape architects.
(10) The State Athletic Commission shall disclose information on
its licensees and registrants.
(11) The State Board of Barbering and Cosmetology shall disclose
information on its licensees.
(12) The State Board of Guide Dogs for the Blind shall disclose
information on its licensees and registrants.
(13) The Acupuncture Board shall disclose information on its
licensees.
(14) The Board of Behavioral Sciences shall disclose information
on its licensees, including marriage and family therapists, licensed
clinical social workers, licensed educational psychologists, and
licensed professional clinical counselors.
(15) The Dental Board of California shall disclose information on
its licensees.
(16) The State Board of Optometry shall disclose information
regarding certificates of registration to practice optometry,
statements of licensure, optometric corporation registrations, branch
office licenses, and fictitious name permits of its licensees.
(17) The Board of Psychology shall disclose information on its
licensees, including psychologists, psychological assistants, and
registered psychologists.
(d) The State Board of Chiropractic Examiners shall disclose
information on its licensees.
(e) The Structural Pest Control Board shall disclose information
on its licensees, including applicators, field representatives, and
operators in the areas of fumigation, general pest and wood
destroying pests and organisms, and wood roof cleaning and treatment.
(f) "Internet" for the purposes of this section has the meaning
set forth in paragraph (6) of subdivision (f) of Section 17538.
SEC. 2. Section 94800.5 of the Education Code
is amended to read:
94800.5. Whenever a reference is made to the former Private
Postsecondary Education and Student Protection Act, the former
Private Postsecondary and Vocational Education Reform Act of 1989, or
the former Chapter 7 (commencing with Section 94700) of Part 59 of
Division 10 of Title 3 of the Education Code, as it read on June 30,
2007, by the provisions of any statute or regulation, it shall be
construed as referring to the provisions of this chapter. Whenever a
reference is made to the former Bureau for Private Postsecondary and
Vocational Education, or the Bureau for Private Postsecondary
Education, by the provisions of any statute or regulation, after July
1, 2015, it shall be construed as referring to the Board for Private
Postsecondary Education.
SEC. 3. SECTION 1. Section 94801 of
the Education Code is amended to read:
94801. The Legislature finds and declares all of the following:
(a) In 2013, more than 300,000 Californians attended more than
1,100 private postsecondary schools in California.
(b) Private postsecondary schools can complement the public
education system and help develop a trained workforce to meet the
demands of California businesses and the economy; however, concerns
about the value of degrees and diplomas issued by private
postsecondary schools, and the lack of protections for private
postsecondary school students and consumers of those schools'
services, have highlighted the need for strong state-level oversight
of private postsecondary schools.
(c) Numerous reports and studies have concluded that California's
previous attempts at regulatory oversight of private postsecondary
schools under the Department of Consumer Affairs have
consistently failed to ensure student protections or provide
effective oversight of private postsecondary schools.
(d) It is the intent of the Legislature in establishing
the Board for Private Postsecondary Education
continuing the operation of this chapter for two years
until January 1, 2017, to ensure all of the following:
(1) Minimum educational quality standards and opportunities for
success for California students attending private postsecondary
schools in California.
(2) Meaningful student protections through essential avenues of
recourse for students.
(3) A regulatory structure that provides for an appropriate level
of oversight.
(4) A regulatory governance structure that ensures that all
stakeholders have a voice and are heard in policymaking by the
board bureau .
(5) A regulatory governance structure that provides for
accountability and oversight by the Legislature through program
monitoring and periodic reports.
(6) Prevention of the harm to students and the
deception of the public that results from conferring, and
use of, fraudulent or substandard educational programs
and degrees.
(e) The Legislature advises future policymakers to continually and
carefully evaluate this chapter and its administration and
enforcement. Where there are deficiencies in the law or regulatory
oversight, the Governor and the Legislature should act quickly to
correct them.
SEC. 4. SEC. 2. Section 94802 of the
Education Code is amended to read:
94802. (a) An institution
that had a valid approval to operate on June 30, 2007, issued by the
former Bureau for Private Postsecondary and Vocational Education
pursuant to former Chapter 7 (commencing with Section 94700) of Part
59 of Division 10 of Title 3 of the Education Code, as it read on
June 30, 2007, shall maintain that approval under this chapter. For
the purposes of this chapter, the approval to operate shall be valid
for three calendar years after the expiration date of the approval,
as it read on June 30, 2007.
(b) An institution that had a valid approval to operate on
December 31, 2014, issued by the Bureau for Private Postsecondary
Education pursuant to this chapter, as it read on December 31, 2014,
shall maintain that approval through the expiration date of the
approval, as it read on December 31, 2014, unless the approval is
suspended or revoked by the board.
SEC. 5. Section 94803 of the Education Code is
repealed.
SEC. 6. Section 94803 is added to the Education
Code, to read:
94803. (a) The regulations adopted under this chapter, as it read
on December 31, 2014, shall remain in effect until such time as the
board amends or repeals them.
(b) Commencing July 1, 2015, any reference in the regulations that
refer to the authority of the Director shall be deemed to refer to
the board or, if the board so designates, the executive officer.
SEC. 7. Section 94804 of the Education Code is
amended to read:
94804. (a) Each unresolved matter submitted to the former Bureau
for Private Postsecondary and Vocational Education prior to July 1,
2007, and to the former Bureau for Private Postsecondary Education
prior to January 1, 2015, shall be deemed to remain pending before
the board irrespective of any applicable deadlines. With respect to
any deadline applicable to a pending matter, no time shall be deemed
to have elapsed from July 1, 2007, to January 1, 2010, inclusive.
(1) For the purposes of this subdivision, "matter" includes, but
is not limited to, an appeal, a complaint, a claim, an evaluation, a
hearing, or an investigation.
(2) For the purposes of this subdivision, "matter" does not
include a Student Tuition Recovery Fund claim.
(b) Student complaints submitted prior to January 1, 2015, shall
continue to be duly recorded and investigated by the board.
SEC. 8. Section 94805 of the Education Code is
repealed.
SEC. 9. Section 94808 of the Education Code is
amended to read:
94808. (a) Any Student Tuition Recovery Fund claims received by
the former Bureau for Private Postsecondary and Vocational Education
or the Bureau for Private Postsecondary Education prior to January 1,
2015, that were not processed, shall be processed by the board.
(b) The student's right to recovery from the Student Tuition
Recovery Fund shall be based on the law that was in effect when the
student enrolled and a fee for the fund was charged as a part of
tuition costs, even though that law has become inoperative, been
repealed, or otherwise expired.
SEC. 10. SEC. 3. Section 94809 of
the Education Code is amended to read:
94809. (a) (1) An
institution that had an application for an approval to operate
pending with the former Bureau for Private Postsecondary and
Vocational Education on June 30, 2007, and submitted an
application for approval to operate to the Bureau for Private
Postsecondary Education, may continue to operate until a
decision is made in regard to the institution regarding the
application for approval to operate, but shall comply with, and is
subject to, this chapter.
(b) An institution that did not have a valid approval to operate
issued by, and did not have an application for approval to operate
pending with, the former Bureau for Private Postsecondary and
Vocational Education on June 30, 2007, that began operations between
July 1, 2007, and January 1, 2010, may continue to operate unless a
denial of approval to operate has been issued and has become final,
but shall comply with, and is subject to, this chapter.
(c) Students seeking to enroll in institutions operating under
subdivisions (a) and (b) shall be notified by the institution, in
writing and prior to executing an enrollment agreement, that the
institution's application for approval to operate has not been
reviewed by the board bureau .
(d) (1) An institution that is denied an approval to operate
pursuant to subdivision (a) or (b) may file an appeal pursuant to the
procedures established in Section 94888.
(2) An institution that has filed an appeal may continue to
operate during the appeal process but must disclose in a written
statement approved by the board, bureau,
to all current and prospective students, that the institution's
application for approval to operate was denied by the board
bureau because the board has
bureau determined the application did not satisfy the
requirements to operate in California, that the institution is
appealing the board's bureau's
decision, and that the loss of the appeal may result in the
institution's closure.
(3) If the board bureau determines
that the continued operation of an institution poses a significant
risk of harm to students, the board bureau
shall make an emergency decision pursuant to Section 94938.
SEC. 11. Section 94809.5 of the Education Code
is amended to read:
94809.5. Notwithstanding any other provision of law:
(a) For any claims that a student had based on a violation of the
Private Postsecondary and Vocational Education Reform Act of 1989 on
or before June 30, 2007, the period of time from June 30, 2007, to
December 31, 2009, inclusive, shall be excluded in determining the
deadline or the statute of limitation for filing any claim with the
board or a lawsuit based on any claim.
(b) All claims described in subdivision (a), except claims to the
Student Tuition Recovery Fund, including those contained in a lawsuit
or other legal action, shall be determined or adjudicated based on
the law that was in effect when the violations or events took place,
even though those provisions have become inoperative, been repealed,
or otherwise expired.
SEC. 12. SEC. 4. Section 94813 of
the Education Code is amended to read:
94813. "Accredited" means an institution is accredited by an
accrediting agency recognized by the United States Department of
Education.
SEC. 13. SEC. 5. Section 94816 of
the Education Code is amended to read:
94816. "Applicant" means an institution that
a person, as defined in Section 94855, who has submitted
an application to the board for an approval to operate or for a
renewal of an approval to operate. An applicant shall be the
owner of an institution. Approvals approval to
operate shall be issued only to applicants, and
those approvals mean that the recipient institutions are authorized
or licensed by the board to operate in California through the
expiration date of the approval an applicant .
SEC. 14. Section 94818.5 is added to the
Business and Professions Code, to read:
94818.5. "Board" means the Board for Private Postsecondary
Education.
SEC. 15. Section 94820 of the Education Code is
repealed.
SEC. 16. SEC. 6. Section 94829 of
the Education Code is amended to read:
94829. "Default" means failure of a borrower and endorser, if
any, to make an installment payment for a loan received under the
federal student financial aid programs when due, or to meet other
terms of the promissory note, provided that this failure persists for
270 days if payment is due monthly or 360 days if payment is due
less frequently. For purposes of this section, "endorser" means an
individual who signs a promissory note and agrees to repay the loan
in the event that the borrower does not.
SEC. 17. Section 94833 of the Education Code is
repealed.
SEC. 18. SEC. 7. Section 94837 of
the Education Code is amended to read:
94837. "Educational program" means a planned sequence composed of
a single course or module, or set of related courses or modules,
that provides the education, training, skills,
and experience leading to the award of a recognized
educational credential such as a document of completion, degree, or
diploma. or experience, or a combination of these.
SEC. 19. Section 94838 of the Education Code is
amended to read:
94838. "Educational program approval" means authorization by the
board, another government agency of this state, or a federal
government agency, to provide educational programs, and is an element
of an approval to operate.
SEC. 20. SEC. 8. Section 94847 of
the Education Code is amended to read:
94847. "License and examination preparation" means instruction
designed to assist students to prepare for an examination for
licensure. "License and examination preparation" does not include an
educational program designed to instruct students in the
field of the licensure examination skills and
knowledge necessary to satisfy the qualifications for licensure
.
SEC. 21. Section 94861 of the Education Code is
amended to read:
94861. "Reporting period" means the institution's fiscal year or
any yearly period designated by the board to be covered in the
institution's annual report.
SEC. 22. SEC. 9. Section 94874 of
the Education Code is amended to read:
94874. Except as provided in Section 94874.2, the following are
exempt from this chapter:
(a) An institution that offers solely avocational or recreational
educational programs.
(b) An institution offering educational programs sponsored by a
bona fide trade, business, professional, or fraternal organization,
solely for that organization's membership.
(c) A postsecondary educational institution established, operated,
and governed by the federal government or by this state or its
political subdivisions.
(d) An institution offering either of the following:
(1) Test preparation for examinations required for admission to a
postsecondary educational institution.
(2) Continuing education or license examination preparation, if
the institution or the program is approved, certified, or sponsored
by any of the following:
(A) A government agency, other than the board
bureau , that licenses persons in a particular profession,
occupation, trade, or career field.
(B) A state-recognized professional licensing body, such as the
State Bar of California, that licenses persons in a particular
profession, occupation, trade, or career field.
(C) A bona fide trade, business, or professional organization.
(e) (1) An institution owned, controlled, and operated and
maintained by a religious organization lawfully operating as a
nonprofit religious corporation pursuant to Part 4 (commencing with
Section 9110) of Division 2 of Title 1 of the Corporations Code, that
meets all of the following requirements:
(A) The instruction is limited to the principles of that religious
organization, or to courses offered pursuant to Section 2789 of
Business and Professions Code.
(B) The diploma or degree is limited to evidence of completion of
that education.
(2) An institution operating under this subdivision shall offer
degrees and diplomas only in the beliefs and practices of the church,
religious denomination, or religious organization.
(3) An institution operating under this subdivision shall not
award degrees in any area of physical science.
(4) Any degree or diploma granted under this subdivision shall
contain on its face, in the written description of the title of the
degree being conferred, a reference to the theological or religious
aspect of the degree's subject area.
(5) A degree awarded under this subdivision shall reflect the
nature of the degree title, such as "associate of religious studies,"
"bachelor of religious studies," "master of divinity," or "doctor of
divinity."
(f) An institution that does not award degrees and that solely
provides educational programs for total charges of two thousand five
hundred dollars ($2,500) or less when no part of the total charges is
paid from state or federal student financial aid programs. The
board bureau may adjust this cost
threshold based upon the California Consumer Price Index and post
notification of the adjusted cost threshold on its Internet Web site,
as the board bureau determines,
through the promulgation of regulations, that the adjustment is
consistent with the intent of this chapter.
(g) A law school that is accredited by the Council of the Section
of Legal Education and Admissions to the Bar of the American Bar
Association or a law school or law study program that is subject to
the approval, regulation, and oversight of the Committee of Bar
Examiners, pursuant to Sections 6046.7 and 6060.7 of the Business and
Professions Code.
(h) A nonprofit public benefit corporation that satisfies all of
the following criteria:
(1) Is qualified under Section 501(c)(3) of the United States
Internal Revenue Code.
(2) Is organized specifically to provide workforce development or
rehabilitation services.
(3) Is accredited by an accrediting organization for workforce
development or rehabilitation services recognized by the Department
of Rehabilitation.
(i) An institution that is accredited by the Accrediting
Commission for Senior Colleges and Universities, Western Association
of Schools and Colleges, or the Accrediting Commission for Community
and Junior Colleges, Western Association of Schools and Colleges.
(j) An institution that satisfies all of the following criteria:
(1) The institution has been accredited, for at least 10 years, by
an accrediting agency that is recognized by the United States
Department of Education.
(2) The institution has operated continuously in this state for at
least 25 years.
(3) During its existence, the institution has not filed for
bankruptcy protection pursuant to Title 11 of the United States Code.
(4) The institution's cohort default rate on guaranteed student
loans does not exceed 10 percent for the most recent three years, as
published by the United States Department of Education.
(5) The institution maintains a composite score of 1.5 or greater
on its equity, primary reserve, and net income ratios, as provided
under Section 668.172 of Title 34 of the Code of Federal Regulations.
(6) The institution provides a pro rata refund of unearned
institutional charges to students who complete 75 percent or less of
the period of attendance.
(7) The institution provides to all students the right to cancel
the enrollment agreement and obtain a refund of charges paid through
attendance at the second class session, or the 14th day after
enrollment, whichever is later.
(8) The institution submits to the board
bureau copies of its most recent IRS Form 990, the institution'
s Integrated Postsecondary Education Data System Report of the United
States Department of Education, and its accumulated default rate.
(9) The institution is incorporated and lawfully operates as a
nonprofit public benefit corporation pursuant to Part 2 (commencing
with Section 5110) of Division 2 of Title 1 of the Corporations Code
and is not managed or administered by an entity for profit.
(k) Flight instruction providers or programs that provide flight
instruction pursuant to Federal Aviation Administration regulations
and meet both of the following criteria:
(1) The flight instruction provider or program does not require
students to enter into written or oral contracts of indebtedness.
(2) The flight instruction provider or program does not require or
accept prepayment of instruction-related costs in excess of two
thousand five hundred dollars ($2,500).
SEC. 23. SEC. 10. Section 94874.1 of
the Education Code is amended to read:
94874.1. (a) Except as provided in Section 94874.2, an
institution that is accredited by a regional accrediting agency that
is recognized by the United States Department of Education, and is
not an agency described in subdivision (i) of Section 94874, is
exempt from this chapter,
except Article 14 (commencing with Section 94923).
(b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 24. SEC. 11. Section 94874.2 is
added to the Education Code, to read:
94874.2. An Beginning January 1, 2016, an
institution that is approved to participate in veterans'
financial aid programs pursuant to Section 21.4253 of Title 38 of the
Code of Federal Regulations that is not an independent institution
of higher education, as defined in subdivision (b) of Section 66010,
may not claim an exemption from this chapter.
SEC. 25. Section 94874.7 of the Education Code
is amended to read:
94874.7. The board shall establish, by regulation, a process
pursuant to which an institution that is exempt from this chapter may
request, and obtain, from the board verification that the
institution is exempt. The board shall establish a reasonable fee to
reimburse the board's costs associated with the implementation of
this section.
SEC. 26. Section 94874.8 of the Education Code
is amended to read:
94874.8. (a) An institution exempt from all or part of this
chapter pursuant to subdivision (i) or (j) of Section 94874 or
Section 94874.1 may apply to the board for an approval to operate
pursuant to this section, but only subject to all of the following
provisions:
(1) The board may approve the operation of an institution that is
exempt from all or part of this chapter as specified above in
accordance with the authority granted pursuant to Article 6
(commencing with Section 94885). Upon issuing an approval to operate
to an institution pursuant to this section, the board is authorized
to regulate that institution through the full set of powers granted,
and duties imposed, by this chapter, as those powers and duties would
apply to an institution that is not exempt from this chapter.
(2) Notwithstanding any other law, upon issuance of an approval to
operate pursuant to this section, the institution is no longer
eligible for exemption, from the provisions of this chapter pursuant
to subdivision (i) or (j) of Section 94874 or Section 94874.1, unless
authorized by subsequent legislation.
(3) Upon issuance of an approval to operate pursuant to this
section, an institution is subject to all provisions of this chapter,
and any regulations adopted pursuant to this chapter, that apply to
an institution subject to this chapter, except as expressly provided
in paragraph (4).
(4) (A) With respect to the placement and salary or wage data
required to be collected, calculated, and reported by Article 16
(commencing with Section 94928), an institution issued an approval to
operate pursuant to this section is not required to report on its
first School Performance Fact Sheet any data from the period prior to
the date of the issuance of the approval to operate that the
institution was not required to collect and does not have available
to it. An institution shall, however, report available data collected
and calculated in accordance with this chapter and applicable
regulations, regardless of the purpose for which the data was
collected. If the required data is unavailable, the institution shall
also disclose the unavailability of the data on all documents
required by this chapter and regulations adopted pursuant to this
chapter. Upon receiving an approval to operate pursuant to this
section, an institution shall commence to collect and calculate all
information necessary to comply with Article 16 (commencing with
Section 94928).
(B) An institution receiving an approval to operate pursuant to
this section shall provide to prospective students the School
Performance Fact Sheet, file that fact sheet with the board, and post
it on the institution's Internet Web site no later than the first
August 1 after the institution is approved to operate or by a date
set by the board for institutions generally. These School Performance
Fact Sheets shall report data for the previous two calendar years
based upon the number of students who began the program or the number
of graduates for each reported calendar year. If two calendar years
have not passed since the issuance of the approval to operate by the
August 1 deadline for the School Performance Fact Sheet, unless data
for two years is available, the institution shall report the required
data for the period subsequent to the date of the issuance of the
notice of approval.
(b) An institution exempt from all or part of this chapter
pursuant to subdivision (i) or (j) of Section 94874 or Section
94874.1 that was approved to operate by the board before the
effective date of this section shall be deemed to have been approved
pursuant to this section.
SEC. 27. The heading of Article 5 (commencing
with Section 94875) of Chapter 8 of Part 59 of Division 10 of Title 3
of the Education Code is amended to read:
Article 5. Board Powers and Duties
SEC. 28. Section 94875 of the Education Code is
amended to read:
94875. (a) The board shall regulate private postsecondary
educational institutions through the powers granted, and duties
imposed, by this chapter. In exercising its powers, and performing
its duties, the protection of the public shall be the board's highest
priority. If protection of the public is inconsistent with other
interests sought to be promoted, the protection of the public shall
be paramount. The board shall consist of 11 members appointed as
follows:
(1) Three members, who shall have a demonstrated record of
advocacy on behalf of consumers, one appointed by the Governor, one
by the Senate Committee on Rules, and one by the Speaker of the
Assembly.
(2) Two members, who shall be current or former students of
institutions, appointed by the Governor, subject to confirmation by
the Senate Committee on Rules.
(3) Three members, who shall be representatives of institutions,
appointed by the Governor, subject to confirmation by the Senate
Committee on Rules.
(4) Two public members with experience or expertise in
postsecondary education, appointed by the Governor, subject to
confirmation by the Senate Committee on Rules.
(5) One public member with knowledge or expertise in emerging
fields of employment, appointed by the Governor, subject to
confirmation by the Senate Committee on Rules.
(b) A person who was a member of the former Advisory Committee to
the Bureau for Private Postsecondary Education, established pursuant
to Section 94880, as that section read on January 1, 2014, is
eligible to be appointed to the board pursuant to subdivision (a).
(c) A public member appointed to the board pursuant to subdivision
(a) shall not be affiliated with an institution.
(d) A majority of the board constitutes a quorum for the
transaction of any business, for the performance of any duty, or for
the exercise of any power of the board. A vacancy in the board does
not impair the right of the remaining members to exercise all the
powers of the board.
SEC. 29. Section 94875.5 is added to the
Education Code, to read:
94875.5. Notwithstanding any other provision of this chapter, the
Bureau for Private Postsecondary Education shall continue in
existence and administer the provisions of this chapter until July 1,
2015. As of that date, the bureau shall cease operations, and the
board shall assume all authority, including the powers, functions,
and jurisdiction until then vested in the bureau. The board may
enforce all disciplinary actions undertaken by the bureau. For the
performance of these duties and exercise of these powers, the board
shall have possession and control of all records, papers, offices,
equipment, supplies, or other property, real or personal, held for
the benefit of or use by the bureau. All regulations adopted by the
bureau that were in effect on December 31, 2014, shall remain in
effect until the board acts to amend or repeal those regulations. All
licensing application forms in use on December 31, 2014, shall
continue in use until such time as the board acts to amend those
forms or provides for their elimination or replacement.
SEC. 30. Section 94876 of the Education Code is
amended to read:
94876. (a) The executive officer of the board shall be appointed
by the Governor, subject to confirmation by the Senate Committee on
Rules, and is exempt from the State Civil Service Act pursuant to
Part 2 (commencing with Section 18500) of Division 5 of Title 2 of
the Government Code.
(b) The executive officer of the board shall exercise the powers
and perform the duties delegated by the board.
(c) The executive officer shall be selected from a list of five
candidates generated by the board.
(d) To assist the executive officer in the discharge of his or her
duties, the board shall appoint three to five deputies, as deemed
necessary by the board.
SEC. 12. Section 94876 of the Education
Code is amended to read:
94876. (a) The powers and duties set forth in this chapter are
vested in the Director of Consumer Affairs, who may delegate them to
a bureau chief, subject to the provisions of this section. The
bureau chief shall work in collaboration with the director. The
director is responsible for the imp lementation of this
chapter and he or she shall ensure that the protection of the public
is the bureau's highest priority.
(b) The bureau chief shall be appointed by the Governor, subject
to confirmation by the Senate, and is exempt from the State Civil
Service Act pursuant to Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code.
(c) Each power granted to, or duty imposed upon, the bureau under
this chapter shall be exercised and performed in the name of the
bureau, subject to any conditions and limitations the director may
prescribe. The bureau chief may delegate any powers or duties to a
designee.
(d) As may be necessary to carry out this chapter, the director,
in accordance with the State Civil Service Act, may appoint and fix
the compensation of personnel.
SEC. 31. SEC. 13. Section 94877 of
the Education Code is amended to read:
94877. (a) The board bureau shall
adopt and shall enforce regulations to implement this chapter
pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code).
(b) The board bureau shall develop
and implement an enforcement program, pursuant to Article 18
(commencing with Section 94932) to implement this chapter. The
enforcement program shall include a plan for investigating complaints
filed with the board bureau . The
board bureau shall contract with the
office of the Attorney General, or other appropriate state agency, to
establish a process for the board's bureau's
staff to be trained to investigate complaints, including, but
not limited to, the information, evidence, and materials needed to
process complaints. The training
(c) The bureau shall
institute training to ensure the board's
that its staff are equipped to review and verify the
accuracy of the data contained in consumer disclosures, including,
but not limited to, the School Performance Fact Sheet.
(c)
(d) The board bureau
shall establish a program to proactively identify unlicensed
institutions, identify material or repeated violations of this
chapter and regulations implementing this chapter, and take all
appropriate legal action.
(d) The board shall, by January 1, 2016, initiate the process and
procedures governing its approval or denial of applications for
approval to operate in accordance with board regulations adopted
pursuant to Section 94888, for every application pending as of
January 1, 2015.
SEC. 32. Section 94878 of the Education Code is
amended to read:
94878. (a) The board shall establish an Internet Web site that
includes at least all of the following information:
(1) An explanation of the board's scope of authority.
(2) (A) A directory of approved institutions, and a link, if
feasible, to the Internet Web site of each institution.
(B) For each institution, the directory shall be developed in a
manner that allows the user to search by institution and shall
include all of the following information:
(i) The status of the institution's approval to operate.
(ii) The information provided by the institutions including, but
not limited to, the annual report, as required by Section 94934,
including the school catalog and the Student Performance Fact Sheet.
The Student Performance Fact Sheet shall be maintained on the
directory for at least five years after the date of its submission to
the board.
(iii) The disciplinary history of the institution, which shall
include, but shall not be limited to, all of the following:
(I) Pending formal accusations filed by the board.
(II) Suspensions, revocations, citations, fines, infractions,
probations, pending litigation filed by the board, and final
judgments resulting from litigation filed by the board.
(III) Pending or final civil or criminal cases filed by the
Attorney General, a city attorney, ora district attorney in this
state, or filed in any state by an attorney general or a federal
regulatory or prosecutorial agency if the case would be actionable
under California or federal law, of which the board has received
notice.
(IV) Final administrative actions by the United State Department
of Education, including orders requiring restitution to students.
(V) All disciplinary actions ordered by an accreditation agency,
including any order to show cause, of which the board has received
notice pursuant to Section 94934 or other information otherwise
publicly available of which the board has received notice.
(b) The board shall maintain the Internet Web site described in
subdivision (a). The board shall ensure that the information
specified in subdivision (a) is kept current. The board shall update
the Internet Web site at least annually, to coincide with the
submission of annual reports by the institutions pursuant to Section
94934.
(c) (1) The board shall post on its Internet Web site a list of
all institutions that were denied approval to operate, after the
denial is final, and describe in clear and conspicuous language the
reason the institution was denied approval. The board shall include
the statement provided in paragraph (2) on its Internet Web site.
(2) "The following institutions were denied approval to operate by
the Board for Private Postsecondary Education for failing to satisfy
the standards relating to educational quality, or consumer
protection, or both. These unlicensed institutions are not operating
in compliance with the law, and students are strongly discouraged
from attending these institutions."
SEC. 14. Section 94878 of the Education
Code is amended to read:
94878. (a) On or before June 30, 2010, the
The bureau shall establish an Internet Web site that
includes at least all of the following information:
(1) An explanation of the bureau's transition plan for
the reconstituted bureau and an explanation of the bureau's
scope of authority.
(2) (A) A directory of approved institutions, and a link, if
feasible, to the Internet Web site of each institution.
(B) For each institution, the directory shall be developed in a
manner that allows the user to search by institution and shall
include all of the following information:
(i) The status of the institution's approval to operate.
(ii) The information provided by the institutions
institutions, including, but not limited to, the
annual report, as required by Section 94934, including the school
catalog and the School Performance Fact Sheet. The School Performance
Fact Sheet shall be maintained on the directory for at least five
years after the date of its submission to the bureau.
(iii) If a law school satisfies the requirements of this chapter
regarding a School Performance Fact Sheet by complying with the
requirements of Section 94910.5, the bureau shall include the
information provided by the institution pursuant to Section 94910.5
on its Internet Web site and shall maintain the information in the
same manner as required by clause (ii).
(iv) The disciplinary history of the institution, which shall
include, but shall not be limited to, all of the following:
(I) Pending formal accusations filed by the bureau.
(II) Suspensions, revocations, citations, fines, infractions,
probations, pending litigation filed by the bureau, and final
judgments resulting from litigation filed by the bureau.
(III) Pending or final civil or criminal cases filed by
the Attorney General, a city attorney, a district attorney,
or a federal law enforcement official, or a district
attorney in this state, or filed in any state by an attorney general
or a federal regulatory or prosecutorial agency if the case would be
actionable under California or federal law, of which the bureau
has received notice.
(IV) Final administrative actions by the United State Department
of Education, including orders requiring restitution to students.
(V) Final All
disciplinary actions ordered by an accreditation agency,
including any order to show cause, of which the bureau has
received notice pursuant to Section 94934 or other information
otherwise publicly available of which the board has received notice
.
(b) The bureau shall maintain the Internet Web site described in
subdivision (a). The bureau shall ensure that the information
specified in subdivision (a) is kept current. The bureau shall update
the Internet Web site at least annually, to coincide with the
submission of annual reports by the institutions pursuant to Section
94934.
(c) In addition to maintaining the Internet Web site described in
subdivision (a), the bureau shall provide the information described
in paragraph (2) of subdivision (a) to the California Postsecondary
Education Commission (CPEC), and the CPEC shall include that
information in an Internet Web site directory of school performance
data maintained by the CPEC. To the extent possible, the bureau shall
provide this information consistent with the information collected
for reporting to the Integrated Postsecondary Education Data System
of the United States Department of Education, including institutional
characteristics, completion, annual enrollment, and graduation
rates.
(c) (1) The bureau shall post on its Internet Web site a list of
all institutions that were denied approval to operate, after the
denial is final, and describe in clear and conspicuous language the
reason the institution was denied approval. The bureau shall include
with this list the statement provided in paragraph (2) on its
Internet Web site.
(2) "The following institutions were denied approval to operate by
the Bureau for Private Postsecondary Education for failing to
satisfy the standards relating to educational quality, or consumer
protection, or both. These unlicensed institutions are not operating
in compliance with the law, and students are strongly discouraged
from attending these institutions."
SEC. 33. SEC. 15. Section 94879 of
the Education Code is amended to read:
94879. The board bureau shall
conduct an outreach program to secondary school students
pupils as well as prospective and current
private postsecondary students, to provide them with information on
how to best select a private postsecondary institution, how to enter
into enrollment agreements, how to make informed decisions in the
private postsecondary education marketplace, and how to contact the
board bureau for assistance. The
board bureau may accomplish the
purposes of this section in cooperation with other federal, state, or
local entities, or any combination of these entities.
SEC. 34. Section 94880 of the Education Code is
repealed.
SEC. 16. Section 94880 of the Education
Code is amended to read:
94880. (a) There is within the bureau a 12-member
1 4-member advisory committee. On or
before July 1, 2010 2015 , the members
of the committee shall be appointed as follows:
(1) Three members, who shall have a demonstrated record of
advocacy on behalf of consumers, of which the Director of
Consumer Affairs director , the Senate Committee
on Rules, and the Speaker of the Assembly shall each appoint one
member.
(2) Two members, who shall be current or past students of
institutions, appointed by the Director of Consumer Affairs
director .
(3) Three members, who shall be representatives of institutions,
appointed by the Director of Consumer Affairs
director .
(4) Two members, which shall be employers that hire students,
appointed by the Director of Consumer Affairs.
(5)
( 4) One public member appointed by the
Senate Committee on Rules.
(6)
( 5) One public member appointed by the
Speaker of the Assembly.
(6) Four ex-officio members as follows:
(A) The chair, or the designee of the chair, of the policy
committee of the Assembly with jurisdiction over legislation relating
to the bureau, appointed by the Speaker of the Assembly.
(B) The chair, or the designee of the chair, of the policy
committee of the Senate with jurisdiction over legislation relating
to the bureau, appointed by the Senate Committee on Rules.
(C) One attorney employed in the consumer law section of the
Office of the Attorney General, to be appointed by the Attorney
General.
(D) A representative employed in the career and college transition
division of the State Department of Education, to be appointed by
the Superintendent of Public Instruction.
(b) (1) A public member shall not, either at the time of his or
her appointment or during his or her tenure in office, have any
financial interest in any organization currently or previously
subject to regulation by the bureau, be a close family member of an
employee, officer, or the director of any institution subject to
regulation by the bureau, or currently have, or previously have had,
a business relationship, in the five years preceding his or her
appointment, with any institution subject to regulation by the
bureau.
(2) A public member shall not, within the five years immediately
preceding his or her appointment, have engaged in pursuits on behalf
of an institution or institutional accreditor or have provided
representation to the postsecondary educational industry or a
profession regulated by the bureau, if he or she is employed in the
industry or a member of the profession, respectively, and he or she
shall not engage in those pursuits or provide that representation
during his or her term of office.
(c) The advisory committee shall examine the
oversight functions and operational policies of the bureau
and advise the bureau with respect to matters relating to
private postsecondary education and the administration of this
chapter, including annually reviewing the fee schedule and the
equity of the schedule relative to the way institutions are
structured , licensing, and the
licensing and enforcement provisions of this chapter. The
advisory committee shall make recommendations with respect to
policies, practices, and regulations relating to private
postsecondary education, and shall provide any assistance as may be
requested by the bureau.
(c)
(d) The bureau shall actively seek input from, and
consult with, the advisory committee regarding the development of
regulations to implement this chapter prior to the adoption,
amendment, or repeal of its regulations, and provide the advisory
committee with sufficient time to review and comment on those
regulations. The bureau shall take into consideration and respond to
all feedback provided by members of the advisory committee .
(e) The bureau chief shall attend all advisory committee meetings
and shall designate staff to provide ongoing
administrative support to the
advisory committee.
(f) Until January 1, 2017, the director shall personally attend,
and testify and answer questions at, each meeting of the advisory
committee.
(g) The advisory committee shall have the same access to records
within the Department of Consumer Affairs related to the operation
and administration of this chapter as do members of constituent
boards of the department in regard to records related to their
functions.
(h) Advisory committee meetings shall be subject to the
Bagley-Keene Open Meetings Act. Advisory committee meeting materials
shall be posted on the Internet.
(i) The advisory committee shall meet at least quarterly and shall
appoint a member of the committee to represent the committee for
purposes of communicating with the Legislature.
(j) The Department of Consumer Affairs shall review, and revise if
necessary, the department's conflicts of interest regulations to
ensure that each advisory committee member is required to disclose
conflicts of interest to the public.
SEC. 35. SEC. 17. Section
94880 94880.1 is added to the Education Code, to
read:
94880. 94880.1. (a) (1)
The board bureau shall
establish a task force no later than March 1, 2015, to
determine review standards for
educational and training programs specializing in innovative subject
matters and instructing students in high-demand technology fields for
which there is a demonstrated shortage of skilled employees. The
members of the task force may include postsecondary education
experts, owners of institutions, consumer advocates focused on
education, high technology employers, students of short-term
focused high technology training programs, and providers of high
technology training in subjects including, but not necessarily
limited to, programming, software development, computer science, and
coding.
(2) At least two members of the task force shall be members of the
advisory committee. One of these members shall serve as chair of the
task force.
(3) The task force shall transmit a report with its
recommendations and findings to the advisory committee no later than
January 1, 2016. The task force's report shall include, but not
necessarily be limited to, all of the following:
(A) Whether students attending institutions should receive certain
disclosures prior to enrolling in an educational program offered by
those institutions.
(B) Whether the means of reporting student outcomes and the
content of those reports are appropriate.
(C) The steps the state may take to promote the growth of
high-quality training programs in skills for high technology
occupations.
(b) (1) The board
advisory committee shall review and approve, modify,
or reject the report prepared pursuant to paragraph (3) of
subdivision (a). The bureau shall provide a
the approved report to the Legislature regarding
educational and training programs subject to subdivision (a), and the
institutions offering those programs, no later than
January July 1, 2016. The
report shall include the board's evaluation of all of the following:
(A) Whether students attending these institutions should receive
certain disclosures prior to enrollment in a program.
(B) Whether the means of reporting student outcomes and the
content of those reports are appropriate.
(C) Whether institutions that satisfy certain criteria should be
regulated by the board and by this chapter.
(D) The steps the board and the state may take to promote the
growth of high-quality training programs in skills for high
technology occupations.
(2) (A) The
(c) The requirement for
submitting a report imposed under this subdivision is inoperative on
January 1, 2019, 2017, pursuant to
Section 10231.5 of the Government Code.
(B) A
(d) The report to be submitted
to the Legislature pursuant to this
subdivision (c) shall be submitted in compliance with
Section 9795 of the Government Code.
SEC. 36. Section 94881 of the Education Code is
amended to read:
94881. The board may conduct workshops to provide applicants and
institutions information on application processes, compliance with
this chapter, best practices for providing postsecondary educational
programs, and other subjects concerning postsecondary education.
SEC. 37. Section 94882 of the Education Code is
amended to read:
94882. The board may empanel visiting committees to assist in
evaluating an institution's application for an approval to operate.
The members of visiting committees shall serve at no expense to the
state, except that the board may reimburse the members of visiting
committees for actual travel and per diem expenses incurred during
the evaluation. The board may seek reimbursement for the travel and
per diem costs from the institution that is the subject of an
evaluation.
SEC. 38. Section 94883 of the Education Code is
amended to read:
94883. (a) Any individual serving on a visiting committee who
provides information to the board, or its staff, in the course of
evaluating any institution, or who testifies in any administrative
hearing arising under this chapter, is entitled to a defense and
indemnification in any action arising out of the information or
testimony provided as if he or she were a public employee.
(b) Any defense and indemnification shall be solely with respect
to the action pursuant to Article 4 (commencing with Section 825) of
Chapter 1 of Part 2 of, and Part 7 (commencing with Section 995) of
Division 3.6 of Title 1 of, the Government Code.
SEC. 39. Section 94884 of the Education Code is
amended to read:
94884. The board is subject to Section 27 of the Business and
Professions Code.
SEC. 40. SEC. 18. Section 94885 of
the Education Code is amended to read:
94885. (a) The board
bureau shall adopt by regulation minimum operating
standards for an institution that shall reasonably ensure that all of
the following occur:
(a)
(1) The content of each educational program can achieve
its stated objective.
(b)
(2) The institution maintains specific written
standards for student admissions for each educational program and
those standards are related to the particular educational program.
(c)
( 3) The facilities, instructional
equipment, and materials are sufficient to enable students to achieve
the educational program's goals.
(d)
( 4) The institution maintains a withdrawal
policy and provides refunds.
(e)
( 5) The directors, administrators, and
faculty are properly qualified.
(f)
( 6) The institution is financially sound
and capable of fulfilling its commitments to students.
(g)
( 7) That, upon satisfactory completion of
an educational program, the institution gives students a document
signifying the degree or diploma awarded.
(h)
( 8) Adequate records and standard
transcripts are maintained and are available to students.
(i)
( 9) The institution is maintained and
operated in compliance with this chapter and all other applicable
ordinances and laws.
(j) (1) An
institution offering a degree is accredited by an accrediting
agency recognized by the United States Department of Education.
(2) An unaccredited institution offering a degree that is approved
to operate by the bureau as of January 1, 2015, shall have until
January 1, 2016, to obtain and provide evidence of its candidacy or
preaccreditation status with an accrediting agency recognized by the
United States Department of Education, and to obtain and provide
evidence of accreditation from that accrediting agency on or before
January 1, 2017.
(3) The board may, upon the submission of sufficient evidence that
an unaccredited institution is making strong progress toward
obtaining accreditation pursuant to paragraph (2), extend the
timeline for the institution beyond the timeline provided in
paragraph (2).
(b) Except as provided in Section 94855.1, an institution offering
a degree must satisfy one of the following requirements:
(i) Accreditation by an accrediting agency recognized by the
United States Department of Education, with the scope of that
accreditation covering the offering of at least one degree program by
the institution.
(ii) 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. The provisional approval to operate to an unaccredited
degree-offering institution shall be in compliance with Section
94885.5.
SEC. 19. Section 94885.1 is added to the
Education Code , to read:
94885.1. (a) An institution that is not accredited by an
accrediting agency recognized by the United States Department of
Education and offering at least one degree program, and that has
obtained an approval to operate from the bureau on or before January
1, 2015, shall be required to satisfy at least one of the following
no later than July 1, 2015:
(1) Accreditation by an accrediting agency recognized by the
United States Department of Education, with the scope of that
accreditation covering the offering of at least one degree program by
the institution.
(2) Compliance with subdivision (b).
(b) The bureau shall identify institutions that are subject to
subdivision (a) and notify those institutions by February 1, 2015 of
the accreditation requirements pursuant to this section and that the
institution is required provide the following information to the
bureau if the institution plans to continue to offer a degree program
after July 1, 2015:
(1) An accreditation plan that, at a minimum, identifies an
accrediting agency recognized by the United States Department of
Education from which the institution will seek accreditation, with
the scope of that accreditation covering the offering of at least one
degree program, and outlines the process by which the institution
will achieve accreditation candidacy or pre-accreditation by July 1,
2017, and full accreditation by July 1, 2020.
(2) Evidence of having achieved accreditation candidacy or
pre-accreditation by July 1, 2017.
(3) Evidence of having obtained full accreditation by July 1,
2020.
(4) Any additional documentation the bureau deems necessary.
(c) An institution that satisfies the requirements of subdivision
(b) shall comply with all of the following:
(1) Notify students seeking to enroll in the institution, in
writing, prior to the execution of the student's enrollment
agreement, that the institution's approval to offer a degree program
is contingent upon the institution being subsequently accredited.
(2) A visiting committee, empaneled by the bureau pursuant to
Section 94882, shall review the institution by January 1, 2017, and
determine if the institution is likely to achieve full accreditation
by July 1, 2020. If the visiting committee finds the institution
deficient in its accreditation plan, the bureau may prohibit the
institution from enrolling new students in its degree program or
programs, and require the execution of a teach-out plan for its
enrolled students.
(d) Any institution that fails to comply with the requirements of
this section by the dates provided, as required, shall have its
approval to operate automatically suspended on the applicable date.
The bureau shall issue an order suspending the institution and that
suspension shall not be lifted until the institution complies with
the requirements of this section. A suspended institution shall not
enroll new students in any of its degree programs, and shall execute
a teach-out plan for its enrolled students.
(e) This section shall remain in effect until January 1, 2021, and
as of that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2021, deletes or extends that date.
SEC. 20. Section 94885.5 is added to the
Education Code , to read:
94885.5. (a) 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 from the bureau:
(1) The institution may not offer more than two degree programs
during the term of its provisional approval to operate.
(2) 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. The
plan shall include, at a 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 pre-accreditation within two years, and full accreditation within
five years, of issuance of its provisional approval.
(3) 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.
(b) If an institution is granted a provisional approval to operate
pursuant to subdivision (a), the following is required:
(1) Students seeking to enroll in that institution shall be
notified in writing by the institution, prior to the execution of the
student's enrollment agreement, that the institution's approval to
operate is contingent upon it being subsequently accredited.
(2) Within the first two years of issuance of the provisional
approval, a visiting committee, empaneled by the bureau pursuant to
Section 94882, shall review the institution's application for
approval and its accreditation plan, and make a recommendation to the
bureau regarding the institution's progress to achieving full
accreditation.
(3) The institution shall provide evidence of accreditation
candidacy or preaccreditation within two years of issuance of its
provisional approval, and evidence of accreditation within five years
of issuance of its provisional approval, with the scope of that
accreditation covering the offering of at least one degree program.
(c) An institution required to comply with this section that fails
to do so by the dates provided, as required, shall have its
provisional approval to operate automatically suspended on the
applicable date. The bureau shall issue an order suspending the
institution and that suspension shall not be lifted until the
institution complies with the requirements of this section. A
suspended institution shall not enroll new students in any of its
degree programs and shall execute a teach-out plan for its enrolled
students.
(d) An institution issued a provisional approval under this
section is required to comply with all other laws and regulations.
(e) 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 within one year of the enactment of
this section.
SEC. 41. Section 94887 of the Education Code is
amended to read:
94887. An approval to operate shall be granted only after an
applicant has presented sufficient evidence to the board, and the
board has independently verified the information provided by the
applicant through site visits or other methods deemed appropriate by
the board, that the applicant has the capacity to satisfy the minimum
operating standards. The board shall deny an application for an
approval to operate if the application does not satisfy those
standards.
SEC. 42. SEC. 21. Section 94888 of
the Education Code is amended to read:
94888. (a) The board bureau shall
adopt by regulation both of the following:
(1) The process and procedures whereby an institution seeking
approval to operate may apply for and obtain an approval to operate.
(2) The process and procedures governing the board's
bureau's approval and denial of applications for
approval to operate, including the process and procedures whereby an
applicant for which an application has been denied may appeal that
denial.
(b) The board bureau shall, by
regulation, establish both of the following:
(1) A process for issuing a notification of a denial of an
approval to operate to an institution that submits an application for
approval to operate and for which that application is denied. The
notification of denial shall include a statement of reasons for the
denial.
(2) Application processing goals and timelines to ensure an
institution that has submitted a complete application for approval to
operate has that application promptly reviewed for compliance within
30 days of board bureau receipt of the
application, or within an appropriate timeline as determined by the
board 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 board,
bureau, or within an appropriate timeline as determined by
the board bureau .
SEC. 43. SEC. 22. Section 94890 of
the Education Code is amended to read:
94890. (a) (1) The board bureau
shall grant an institution that is accredited an approval to operate
by means of its accreditation.
(2) The board 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.
(b) The term of an approval to operate pursuant to this section
shall be coterminous with the term of accreditation. Upon renewal of
the institution's accreditation, the institution shall submit
verification to the board bureau , on a
form provided by the board bureau ,
that the institution's accreditation has been renewed.
(c) Institutions that are granted an approval to operate by means
of the institution's accreditation shall comply with all other
applicable requirements in this chapter.
SEC. 44. SEC. 23. Section 94891 of
the Education Code is amended to read:
94891. (a) The board bureau shall
adopt by regulation the process and procedures whereby an institution
may obtain a renewal of an approval to operate.
(b) To be granted a renewal of an approval to operate, the
institution shall demonstrate its continued capacity to meet the
minimum operating standards.
(c) (1) An institution that is denied renewal of an approval to
operate may file an appeal in accordance with the procedures
established by the board bureau
pursuant to Section 94888.
(2) An institution that has filed an appeal of a denial of a
renewal application may continue to operate during the appeal
process, but must disclose in a written statement, approved by the
board, bureau, to all current and
prospective students, that the institution's application for renewal
of approval to operate was denied by the board
bureau because the board bureau
determined the application did not satisfy the requirements to
operate in California, that the institution is appealing the
board's bureau's decision, and that the loss of
the appeal may result in the institution's closure.
(3) If the board bureau determines
that the continued operation of the institution during the appeal
process poses a significant risk of harm to students, the
board bureau shall make an emergency decision
pursuant to its authority provided in Section 94938.
SEC. 45. Section 94892 of the Education Code is
amended to read:
94892. If an agency of this state other than the board or of the
federal government provides an approval to offer an educational
program and the institution already has a valid approval to operate
issued by the board, that agency's educational program approval may
satisfy the requirements of this article without any further review
by the board. The board may incorporate that educational program into
the institution's approval to operate when the board receives
documentation signifying the conferral of the educational program
approval by that agency.
SEC. 46. Section 94893 of the Education Code is
amended to read:
94893. If an institution intends to make a substantive change to
its approval to operate, the institution shall receive prior
authorization from the board. Except as provided in subdivision (a)
of Section 94896, if the institution makes the substantive change
without prior board authorization, the institution's approval to
operate may be suspended or revoked.
SEC. 47. Section 94895 of the Education Code is
amended to read:
94895. The board shall adopt by regulation the process and
procedures whereby an institution shall seek authorization for
substantive changes to an approval to operate.
SEC. 48. Section 94896 of the Education Code is
amended to read:
94896. (a) An institution that has been granted an approval to
operate by means of accreditation shall only make a substantive
change in accordance with the institution's accreditation standards.
(b) The institution shall notify the board of the substantive
change on a form provided by the board.
SEC. 49. Section 94897 of the Education Code is
amended to read:
94897. An institution shall not do any of the following:
(a) Use, or allow the use of, any reproduction or facsimile of the
Great Seal of the State of California on a diploma.
(b) Promise or guarantee employment, or otherwise overstate the
availability of jobs upon graduation.
(c) Advertise concerning job availability, degree of skill, or
length of time required to learn a trade or skill unless the
information is accurate and not misleading.
(d) Advertise, or indicate in promotional material, without
including the fact that the educational programs are delivered by
means of distance education if the educational programs are so
delivered.
(e) Advertise, or indicate in promotional material, that the
institution is accredited, unless the institution has been accredited
by an accrediting agency.
(f) Solicit students for enrollment by causing an advertisement to
be published in "help wanted" columns in a magazine, newspaper, or
publication, or use "blind" advertising that fails to identify the
institution.
(g) Offer to compensate a student to act as an agent of the
institution with regard to the solicitation, referral, or recruitment
of any person for enrollment in the institution, except that an
institution may award a token gift to a student for referring an
individual, provided that the gift is not in the form of money, no
more than one gift is provided annually to a student, and the gift's
cost is not more than one hundred dollars ($100).
(h) Pay any consideration to a person to induce that person to
sign an enrollment agreement for an educational program.
(i) Use a name in any manner improperly implying any of the
following:
(1) The institution is affiliated with any government agency,
public or private corporation, agency, or association if it is not,
in fact, thus affiliated.
(2) The institution is a public institution.
(3) The institution grants degrees, if the institution does not
grant degrees.
(j) In any manner make an untrue or misleading change in, or
untrue or misleading statement related to, a test score, grade or
record of grades, attendance record, record indicating student
completion, placement, employment, salaries, or financial
information, including any of the following:
(1) A financial report filed with the board.
(2) Information or records relating to the student's eligibility
for student financial aid at the institution.
(3) Any other record or document required by this chapter or by
the board.
(k) Willfully falsify, destroy, or conceal any document of record
while that document of record is required to be maintained by this
chapter.
(l) Use the terms "approval," "approved," "approval to operate,"
or "approved to operate" without stating clearly and conspicuously
that approval to operate means compliance with state standards as set
forth in this chapter. If the board has granted an institution
approval to operate, the institution may indicate that the
institution is "authorized," "licensed," or "licensed to operate,"
but may not state or imply either of the following:
(1) The institution or its educational programs are endorsed or
recommended by the state or by the board.
(2) The approval to operate indicates that the institution exceeds
minimum state standards as set forth in this chapter.
(m) Direct any individual to perform an act that violates this
chapter, to refrain from reporting unlawful conduct to the board or
another government agency, or to engage in any unfair act to persuade
a student not to complain to the board or another government agency.
(n) Compensate an employee involved in recruitment, enrollment,
admissions, student attendance, or sales of educational materials to
students on the basis of a commission, commission draw, bonus, quota,
or other similar method related to the recruitment, enrollment,
admissions, student attendance, or sales of educational materials to
students, except as provided in paragraph (1) or (2):
(1) If the educational program is scheduled to be completed in 90
days or less, the institution shall pay compensation related to a
particular student only if that student completes the educational
program.
(2) For institutions participating in the federal student
financial aid programs, this subdivision shall not prevent the
payment of compensation to those involved in recruitment, admissions,
or the award of financial aid if those payments are in conformity
with federal regulations governing an institution's participation in
the federal student financial aid programs.
(o) Require a prospective student to provide personal contact
information in order to obtain, from the institution's Internet Web
site, educational program information that is required to be
contained in the school catalog or any information required pursuant
to the consumer information requirements of Title IV of the federal
Higher Education Act of 1965, and any amendments thereto.
(p) Offer an associate, baccalaureate, master's, or doctoral
degree without disclosing to prospective students prior to enrollment
whether the institution or the degree program is unaccredited and
any known limitation of the degree, including, but not limited to,
all of the following:
(1) Whether a graduate of the degree program will be eligible to
sit for the applicable licensure exam in California and other states.
(2) A statement that reads: "A degree program that is unaccredited
or a degree from an unaccredited institution is not recognized for
some employment positions, including, but not limited to, positions
with the State of California."
(3) That a student enrolled in an unaccredited institution is not
eligible for federal financial aid programs.
SEC. 50. Section 94898 of the Education Code is
amended to read:
94898. (a) An institution shall not merge classes unless all of
the students have received the same amount of instruction. This
subdivision does not prevent the placement of students, who are
enrolled in different educational programs, in the same class if that
class is part of each of the educational programs and the placement
in a merged class will not impair the students' learning of the
subject matter of the class.
(b) After a student has enrolled in an educational program, the
institution shall not do either of the following:
(1) Make any unscheduled suspension of any class unless caused by
circumstances beyond the institution's control.
(2) Change the day or time during the period of attendance in
which any class is offered to a day when the student is not scheduled
to attend the institution or to a time that is outside of the range
of time that the student is scheduled to attend the institution on
the day for which the change is proposed unless at least 90 percent
of the students who are enrolled consent to the change and the
institution offers full refunds to the students who do not consent to
the change. For the purpose of this paragraph, "range of time" means
the period beginning with the time at which the student's first
scheduled class session for the day is set to start and ending with
the time the student's last scheduled class session for that day is
set to finish.
(c) If an institution enrolls a student in an educational program
that is conducted at a specific site at the time of enrollment, the
institution shall not convert the educational program to another
method of delivery, such as by means of distance education. This
subdivision does not apply to an educational program that also
includes a distance education component, if the student is notified
during the enrollment process, in writing, that the program contains
a distance education component.
(d) An institution shall not move the location of class
instruction more than 25 miles from the location of instruction at
the time of enrollment unless any of the following occur:
(1) The institution discloses in writing to each student before
enrollment in the educational program that the location of
instruction will change after the educational program begins and the
address of the new location.
(2) The institution applies for, and the board grants, approval to
change the location. The board shall grant the application within 60
days if the board, after notice to affected students and an
opportunity for them to be heard as prescribed by the board,
concludes that the change in location would not be unfair or unduly
burdensome to students. The board may grant approval to change the
location subject to reasonable conditions, such as requiring the
institution to provide transportation, transportation costs, or
refunds to adversely affected students.
(3) The institution offers a full refund to students enrolled in
the educational program who do not voluntarily consent to the change.
(4) An unforeseeable and unavoidable circumstance outside of the
control of the institution requires the change in the location of
instruction.
SEC. 51. Section 94900.7 of the Education Code
is amended to read:
94900.7. The recordkeeping requirements of this article shall not
apply to an institution that is accredited, if the recordkeeping
requirements of the accrediting organization are substantially
similar to the recordkeeping requirements of this article, as
determined by the board.
SEC. 52. SEC. 24. Section 94904 of
the Education Code is amended to read:
94904. (a) Before an ability-to-benefit student may execute an
enrollment agreement, the institution shall have the student take an
independently administered examination from the list of examinations
prescribed as of July 1, 2012, by the United States Department of
Education pursuant to Section 484(d) of the federal Higher Education
Act of 1965 (20 U.S.C. Sec. 1070a et seq.). The student shall not
enroll unless the student achieves a score, as specified by the
United States Department of Education, demonstrating that the student
may benefit from the education and training being offered.
(b) If the United States Department of Education does not have a
list of relevant examinations that pertain to the intended
occupational training, the board bureau
may publish its own list of acceptable examinations and required
passing scores.
SEC. 53. SEC. 25. Section 94909 of
the Education Code is amended to read:
94909. (a) Prior Except as provided in
subdivision (d), prior to enrollment, an institution shall
provide a prospective student, either in writing or electronically,
with a school catalog containing, at a minimum, all of the following:
(1) The name, address, telephone number, and, if applicable,
Internet Web site address of the institution.
(2) Except as specified in Article 2 (commencing with Section
94802), a statement that the institution is a private institution and
that it is approved to operate by the board.
(3) The following statements:
(A) "Any questions a student may have regarding this catalog that
have not been satisfactorily answered by the institution may be
directed to the Board for Private Postsecondary Education at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
(B) "As a prospective student, you are encouraged to review this
catalog prior to signing an enrollment agreement. You are also
encouraged to review the School Performance Fact Sheet, which must be
provided to you prior to signing an enrollment agreement."
(C) "A student or any member of the public may file a complaint
about this institution with the Board for Private Postsecondary
Education by calling (toll-free telephone number) or by completing a
complaint form, which can be obtained on the board's Internet Web
site (Internet Web site address)."
(4) The address or addresses where class sessions will be held.
(5) A description of the programs offered and a description of the
instruction provided in each of the courses offered by the
institution, the requirements for completion of each program,
including required courses, any final tests or examinations, any
required internships or externships, and the total number of credit
hours, clock hours, or other increments required for completion.
(6) If the educational program is designed to lead to positions in
a profession, occupation, trade, or career field requiring licensure
in this state, a notice to that effect and a list of the
requirements for eligibility for licensure.
(7) Information regarding the faculty and their qualifications.
(8) A detailed description of institutional policies in the
following areas:
(A) Admissions policies, including the institution's policies
regarding the acceptance of credits earned at other institutions or
through challenge examinations and achievement tests, admissions
requirements for ability-to-benefit students, and a list describing
any transfer or articulation agreements between the institution and
any other college or university that provides for the transfer of
credits earned in the program of instruction. If the institution has
not entered into an articulation or transfer agreement with any other
college or university, the institution shall disclose that fact.
(B) Cancellation, withdrawal, and refund policies, including an
explanation that the student has the right to cancel the enrollment
agreement and obtain a refund of charges paid through attendance at
the first class session, or the seventh day after enrollment,
whichever is later. The text shall also include a description of the
procedures that a student is required to follow to cancel the
enrollment agreement or withdraw from the institution and obtain a
refund consistent with the requirements of Article 13 (commencing
with Section 94919).
(C) Probation and dismissal policies.
(D) Attendance policies.
(E) Leave-of-absence policies.
(9) The schedule of total charges for a period of attendance and
an estimated schedule of total charges for the entire educational
program.
(10) A statement reporting whether the institution participates in
federal and state financial aid programs, and if so, all consumer
information that is required to be disclosed to the student pursuant
to the applicable federal and state financial aid programs.
(11) A statement specifying that, if a student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund, and that, if the student has received
federal student financial aid funds, the student is entitled to a
refund of the moneys not paid from federal student financial aid
program funds.
(12) A statement specifying whether the institution has a pending
petition in bankruptcy, is operating as a debtor in possession, has
filed a petition within the preceding five years, or has had a
petition in bankruptcy filed against it within the preceding five
years that resulted in reorganization under Chapter 11 of the United
States Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.).
(13) If the institution provides placement services, a description
of the nature and extent of the placement services.
(14) A description of the student's rights and responsibilities
with respect to the Student Tuition Recovery Fund. This statement
shall specify that it is a state requirement that a student who pays
his or her tuition is required to pay a state-imposed assessment for
the Student Tuition Recovery Fund. This statement shall also describe
the purpose and operation of the Student Tuition Recovery Fund and
the requirements for filing a claim against the Student Tuition
Recovery Fund.
(15) The following statement:
"NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED
AT OUR INSTITUTION
The transferability of credits you earn at (name of institution) is
at the complete discretion of an institution to which you may seek
to transfer. Acceptance of the (degree, diploma, or certificate) you
earn in (name of educational program) is also at the complete
discretion of the institution to which you may seek to transfer. If
the (credits or degree, diploma, or certificate) that you earn at
this institution are not accepted at the institution to which you
seek to transfer, you may be required to repeat some or all of your
coursework at that institution. For this reason you should make
certain that your attendance at this institution will meet your
educational goals. This may include contacting an institution to
which you may seek to transfer after attending (name of institution)
to determine if your (credits or degree, diploma, or certificate)
will transfer."
(16) A statement specifying whether the institution, or any of its
degree programs, are accredited by an accrediting agency recognized
by the United States Department of Education. If the institution is
unaccredited and offers an associate, baccalaureate, master's, or
doctoral degree, or is accredited and offers an unaccredited program
for an associate, baccalaureate, master's, or doctoral degree, the
statement shall disclose the known limitations of the degree program,
including, but not limited to, all of the following:
(A) Whether a graduate of the degree program will be eligible to
sit for the applicable licensure exam in California and other states.
(B) A degree program that is unaccredited or a degree from an
unaccredited institution is not recognized for some employment
positions, including, but not limited to, positions with the State of
California.
(C) That a student enrolled in an unaccredited institution is not
eligible for federal financial aid programs.
(b) If the institution has a general student brochure, the
institution shall provide that brochure to the prospective student
prior to enrollment. In addition, if the institution has a
program-specific student brochure for the program in which the
prospective student seeks to enroll, the institution shall provide
the program-specific student brochure to the prospective student
prior to enrollment.
(c) An institution shall provide the school catalog to any person
upon request. In addition, if the institution has student brochures,
the institution shall disclose the requested brochures to any
interested person upon request.
(d) 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 his or
her 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.
SEC. 54. SEC. 26. Section 94910 of
the Education Code is amended to read:
94910. Prior Except as provided in
subdivision (d) of Section 94909 and Section 94910.5, prior to
enrollment, an institution shall provide a prospective student with a
School Performance Fact Sheet containing, at a minimum, the
following information, as it relates to the educational program:
(a) Completion rates, as calculated pursuant to Article 16
(commencing with Section 94928).
(b) Placement rates for each educational program, as calculated
pursuant to Article 16 (commencing with Section 94928), if the
educational program is designed to lead to, or the institution makes
any express or implied claim related to preparing students for, a
recognized career, occupation, vocation, job, or job title.
(c) License examination passage rates for programs leading to
employment for which passage of a state licensing examination is
required, as calculated pursuant to Article 16 (commencing with
Section 94928).
(d) Salary or wage information, as calculated pursuant to Article
16 (commencing with Section 94928).
(e) If a program is too new to provide data for any of the
categories listed in this subdivision, the institution shall state on
its fact sheet: "This program is new. Therefore, the number of
students who graduate, the number of students who are placed, or the
starting salary you can earn after finishing the educational program
are unknown at this time. Information regarding general salary and
placement statistics may be available from government sources or from
the institution, but is not equivalent to actual performance data."
(f) All of the following:
(1) A description of the manner in which the figures described in
subdivisions (a) to (d), inclusive, are calculated or a statement
informing the reader of where he or she may obtain a description of
the manner in which the figures described in subdivisions (a) to (d),
inclusive, are calculated.
(2) A statement informing the reader of where he or she may obtain
from the institution a list of the employment positions determined
to be within the field for which a student received education and
training for the calculation of job placement rates as required by
subdivision (b).
(3) A statement informing the reader of where he or she may obtain
from the institution a list of the objective sources of information
used to substantiate the salary disclosure as required by subdivision
(d).
(g) The following statements:
(1) "This fact sheet is filed with the Board for Private
Postsecondary Education. Regardless of any information you may have
relating to completion rates, placement rates, starting salaries, or
license exam passage rates, this fact sheet contains the information
as calculated pursuant to state law."
(2) "Any questions a student may have regarding this fact sheet
that have not been satisfactorily answered by the institution may be
directed to the Board for Private Postsecondary Education at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
(h) If the institution participates in federal financial aid
programs, the most recent three-year cohort default rate reported by
the United States Department of Education for the institution and the
percentage of enrolled students receiving federal student loans.
(i) Data and information disclosed pursuant to subdivisions (a) to
(d), inclusive, is not required to include students who satisfy the
qualifications specified in subdivision (d) of Section 94909, but an
institution shall disclose whether the data, information, or both
provided in its fact sheet excludes students pursuant to this
subdivision. An institution shall not actively use data specific to
the fact sheet in its recruitment materials or other recruitment
efforts of students who are not California residents and do not
reside in California at the time of their enrollment.
SEC. 55. Section 94911 of the Education Code is
amended to read:
94911. An enrollment agreement shall include, at a minimum, all
of the following:
(a) The name of the institution and the name of the educational
program, including the total number of credit hours, clock hours, or
other increment required to complete the educational program.
(b) A schedule of total charges, including a list of any charges
that are nonrefundable and the student's obligations to the Student
Tuition Recovery Fund, clearly identified as nonrefundable charges.
(c) In underlined capital letters on the same page of the
enrollment agreement in which the student's signature is required,
the total charges for the current period of attendance, the estimated
total charges for the entire educational program, and the total
charges the student is obligated to pay upon enrollment.
(d) A clear and conspicuous statement that the enrollment
agreement is legally binding when signed by the student and accepted
by the institution.
(e) (1) A disclosure with a clear and conspicuous caption,
"STUDENT'S RIGHT TO CANCEL," under which it is explained that the
student has the right to cancel the enrollment agreement and obtain a
refund of charges paid through attendance at the first class
session, or the seventh day after enrollment, whichever is later.
(2) The disclosure shall contain the institution's refund policy
and a statement that, if the student has received federal student
financial aid funds, the student is entitled to a refund of moneys
not paid from federal student financial aid program funds.
(3) The text shall also include a description of the procedures
that a student is required to follow to cancel the enrollment
agreement or withdraw from the institution and obtain a refund.
(f) A statement specifying that, if the student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund.
(g) A statement specifying that, if the student is eligible for a
loan guaranteed by the federal or state government and the student
defaults on the loan, both of the following may occur:
(1) The federal or state government or a loan guarantee agency may
take action against the student, including applying any income tax
refund to which the person is entitled to reduce the balance owed on
the loan.
(2) The student may not be eligible for any other federal student
financial aid at another institution or other government assistance
until the loan is repaid.
(h) The transferability disclosure that is required to be included
in the school catalog, as specified in paragraph (15) of subdivision
(a) of Section 94909.
(i) (1) The following statement: "Prior to signing this enrollment
agreement, you must be given a catalog or brochure and a School
Performance Fact Sheet, which you are encouraged to review prior to
signing this agreement. These documents contain important policies
and performance data for this institution. This institution is
required to have you sign and date the information included in the
School Performance Fact Sheet relating to completion rates, placement
rates, license examination passage rates, salaries or wages, and the
most recent three-year cohort default rate, if applicable, prior to
signing this agreement."
(2) Immediately following the statement required by paragraph (1),
a line for the student to initial, including the following
statement: "I certify that I have received the catalog, School
Performance Fact Sheet, and information regarding completion rates,
placement rates, license
examination passage rates, salary or wage information, and the most
recent three-year cohort default rate, if applicable, included in the
School Performance Fact Sheet, and have signed, initialed, and dated
the information provided in the School Performance Fact Sheet."
(j) The following statements:
(1) "Any questions a student may have regarding this enrollment
agreement that have not been satisfactorily answered by the
institution may be directed to the Board for Private Postsecondary
Education at (address), Sacramento, CA (ZIP Code), (Internet Web site
address), (telephone and fax numbers)."
(2) "A student or any member of the public may file a complaint
about this institution with the Board for Private Postsecondary
Education by calling (toll-free telephone number) or by completing a
complaint form, which can be obtained on the board's Internet Web
site (Internet Web site address)."
(k) The following statement above the space for the student's
signature:
"I understand that this is a legally binding contract. My signature
below certifies that I have read, understood, and agreed to my rights
and responsibilities, and that the institution's cancellation and
refund policies have been clearly explained to me."
SEC. 56. Section 94913 of the Education Code is
amended to read:
94913. (a) An institution that maintains an Internet Web site
shall provide on that Internet Web site all of the following:
(1) The school catalog.
(2) A School Performance Fact Sheet for each educational program
offered by the institution.
(3) Student brochures offered by the institution.
(4) A link to the board's Internet Web site.
(5) The institution's most recent annual report submitted to the
board.
(b) An institution shall include information concerning where
students may access the board's Internet Web site anywhere the
institution identifies itself as being approved by the board.
SEC. 57. Section 94920 of the Education Code is
amended to read:
94920. An institution that does not participate in the federal
student financial aid programs shall do all of the following:
(a) The institution shall advise each student that a notice of
cancellation shall be in writing, and that a withdrawal may be
effectuated by the student's written notice or by the student's
conduct, including, but not necessarily limited to, a student's lack
of attendance.
(b) Institutions shall refund 100 percent of the amount paid for
institutional charges, less a reasonable deposit or application fee
not to exceed two hundred fifty dollars ($250), if notice of
cancellation is made through attendance at the first class session,
or the seventh day after enrollment, whichever is later.
(c) The board may adopt by regulation a different method of
calculation for instruction delivered by other means, including, but
not necessarily limited to, distance education.
(d) The institution shall have a refund policy for the return of
unearned institutional charges if the student cancels an enrollment
agreement or withdraws during a period of attendance. The refund
policy for students who have completed 60 percent or less of the
period of attendance shall be a pro rata refund.
(e) The institution shall pay or credit refunds within 45 days of
a student's cancellation or withdrawal.
SEC. 58. Section 94921 of the Education Code is
amended to read:
94921. An institution offering an educational program for which
the refund calculations set forth in this article cannot be utilized
because of the unique way in which the educational program is
structured, may petition the board for an alternative method of
calculating tuition refunds.
SEC. 27. Section 94916 of the Education
Code is amended to read:
94916. An institution 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:
"NOTICE
YOU MAY ASSERT AGAINST THE HOLDER OF THE PROMISSORY NOTE 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,
UP TO THE AMOUNT YOU HAVE ALREADY PAID UNDER THE PROMISSORY NOTE."
"Notice
You may assert against the holder of the promissory note 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, up to the amount you have already paid under the
promissory note."
SEC. 59. SEC. 28. Section 94923 of
the Education Code is amended to read:
94923. (a) The Student Tuition Recovery Fund relieves or
mitigates economic loss suffered by a student while enrolled in an
educational program , as defined in Section 94837, at
a nonexempt an institution
under not exempt from this article pursuant to
Article 4 (commencing with Section 94874), as a result of
the institution's violation of law who, at the time of
his or her enrollment, was a California resident or was enrolled in
a California residency program, prepaid tuition,
and suffered economic loss .
(b) The board bureau shall adopt by
regulation procedures governing the administration and maintenance of
the Student Tuition Recovery Fund, including requirements relating
to assessments on students and student claims against the Student
Tuition Recovery Fund. The regulations shall provide for awards to
students who suffer economic loss.
The regulations shall ensure that the following students, and any
other students deemed appropriate, are eligible for payment from the
Student Tuition Recovery Fund:
(1) In the event of a school closure, a student who attended the
institution
(1) 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.
(2) Any student who was enrolled at an
institution or a location of the institution within
120 days of the 120-day period before the
closure, or within a different period prior to the closure
as determined by the board 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, if the bureau determines there was a significant
decline in the quality or value of that educational program during
that time period .
(2)
(3) 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.
(4) A student to whom an institution has been ordered
to pay a refund by the board bureau but
has failed to do so, unless the student chose to
participate in a teach-out plan approved by the board
so .
(5) 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.
(3) Students who have
(6) A student who has been
awarded restitution, refunds a refund ,
or other monetary awards award
by an arbitrator or court, based on a violation of
law, this chapter by an institution or representative
of an institution, but who have has
been unable to collect the award from the institution.
award from the institution. The board
bureau shall review the award or
judgment to verify a violation of law, and shall
ensure the amount of the award to be paid
from the fund does not exceed the student's economic loss.
(4) Students whose programs have been discontinued at the campus
they attend before they are able to complete the program.
(c) Students who suffered losses due to an institution's violation
of this act, as determined by the board, shall be eligible for
payment from the Student Tuition Recovery Fund.
(c) 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 his or her 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.
(d) The bureau shall establish regulations ensuring, as
permissible under California law, that a student who suffers
educational opportunity losses, whose charges are paid by a
third-party payer, is eligible for educational credits under the
fund.
(d)
(e) The board 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.
(e) For purposes of this article, "economic loss" means
(f) The bureau shall, by regulation,
define "economic loss." The regulation shall ensure that
the definition of "economic loss" includes, but is not necessarily
limited to, pecuniary loss, which is the sum of the
student's tuition, all other institutional charges as defined in
Section 94844, the cost of equipment and materials required
for the educational program as defined in Section 94837, and
interest on any student loan used to pay for such charges,
collection costs, and penalties , and any
license or examination fees the student paid to the
institution but is unable to recover . Economic loss shall
also include the amount the institution collected and failed to pay
to third parties on behalf of the student for license fees or any
other purpose. Economic loss does not include Student Tuition
Recovery Fund assessments, unless the student is entitled to a
full refund under Section 94919 or 94920, room and board,
supplies, transportation, application fees, 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. Nothing in this subdivision
shall prevent the bureau from further defining economic loss to
include loss of educational opportunity.
SEC. 60. SEC. 29. Section 94924 of
the Education Code is amended to read:
94924. (a) The bureau shall determine
the amount of Student Tuition Recovery Fund assessments to be
collected for each student.
( b) All assessments collected
pursuant to this article shall be credited to the Student Tuition
Recovery Fund, along with any accrued interest, for the purpose of
this article. Notwithstanding Section 13340 of the Government Code,
the moneys in the Student Tuition Recovery Fund are continuously
appropriated to the board bureau ,
without regard to fiscal year, for the purposes of this article.
(c) Except when an institution provides a full refund pursuant to
Section 94919 or Section 94920, the Student Tuition Recovery Fund
assessment is nonrefundable.
SEC. 30. Section 94925 of the Education
Code is amended to read:
94925. (a) The amount in the Student
Tuition Recovery Fund shall not exceed twenty-five million dollars
($25,000,000) at any time.
(b) If the bureau has temporarily stopped collecting the Student
Tuition Recovery Fund assessments because the fund has approached the
twenty-five million dollar limit in subdivision (a), the bureau
shall resume collecting Student Tuition Recovery Fund assessments
when the fund falls below twenty million dollars ($20,000,000).
(c) 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.
SEC. 61. Section 94926 of the Education Code is
amended to read:
94926. At least 30 days prior to closing, an institution shall
notify the board in writing of its intention to close. The notice
shall be accompanied by a closure plan, which shall include, but not
necessarily be limited to, all of the following:
(a) A plan for providing teach-outs of educational programs,
including any agreements with any other postsecondary educational
institutions to provide teach-outs.
(b) If no teach-out plan is contemplated, or for students who do
not wish to participate in a teach-out, arrangements for making
refunds within 45 days from the date of closure, or for institutions
that participate in federal student financial aid programs
arrangements for making refunds and returning federal student
financial aid program funds.
(c) If the institution is a participant in federal student
financial aid programs, it shall provide students information
concerning these programs and institutional closures.
(d) A plan for the disposition of student records.
SEC. 62. Section 94927 of the Education Code is
amended to read:
94927. An institution shall be considered in default of the
enrollment agreement when an educational program is discontinued or
canceled or the institution closes prior to completion of the
educational program. When an institution is in default, student
institutional charges may be refunded on a pro rata basis if the
board determines that the school has made provision for students
enrolled at the time of default to complete a comparable educational
program at another institution at no additional charge to the
students beyond the amount of the total charges in the original
enrollment agreement. If the institution does not make that
provision, a total refund of all institutional charges shall be made
to students.
SEC. 63. Section 94927.5 of the Education Code
is amended to read:
94927.5. (a) Prior to closing, an institution shall provide the
board with the following:
(1) Pertinent student records, including transcripts, as
determined by the board, pursuant to regulations adopted by the
board.
(2) If the institution is an accredited institution, a plan for
the retention of records and transcripts, approved by the institution'
s accrediting agency, that provides information as to how a student
may obtain a transcript or any other information about the student's
coursework and degrees completed.
(b) Subdivision (a) applies to all private postsecondary
institutions, including institutions that are otherwise exempt from
this chapter pursuant to Article 4 (commencing with Section 94874).
SEC. 64. Section 94928 of the Education Code is
amended to read:
94928. As used in this article, the following terms have the
following meanings:
(a) "Cohort population" means the number of students that began a
program on a cohort start date.
(b) "Cohort start date" means the first class day after the
cancellation period during which a cohort of students attends class
for a specific program.
(c) "Graduates" means the number of students who complete a
program within 100 percent of the published program length. An
institution may separately state completion information for students
completing the program within 150 percent of the original contracted
time, but that information may not replace completion information for
students completing within the original scheduled time. Completion
information shall be separately stated for each campus or branch of
the institution.
(d) "Graduates available for employment" means the number of
graduates minus the number of graduates unavailable for employment.
(e) (1) "Graduates employed in the field" means graduates who are
gainfully employed in a single position for which the institution
represents the program prepares its graduates within six months after
a student completes the applicable educational program. For
occupations for which the state requires passing an examination, the
period of employment shall begin within six months of the
announcement of the examination results for the first examination
available after a student completes an applicable educational
program.
(2) The board shall define by July 1, 2014, specific measures and
standards for determining whether a student is gainfully employed in
a full-time or part-time position for which the institution
represents the program prepares its graduates, including
self-employment or conducting freelance work, and may set the
standards for the hours per week and duration of employment and
utilize any job classification methodology the board determines
appropriate for this purpose, including, but not limited to, the
United States Department of Labor's Standard Occupational
Classification codes.
(3) This subdivision does not prohibit the board from authorizing
an institution to aggregate single positions held by a graduate for
purposes of meeting the hours per week standards established by the
board.
(f) "Graduates unavailable for employment" means graduates who,
after graduation, die, become incarcerated, are called to active
military duty, are international students that leave the United
States or do not have a visa allowing employment in the United
States, or are continuing their education at an accredited or
board-approved postsecondary institution.
(g) "Students available for graduation" means the cohort
population minus the number of students unavailable for graduation.
(h) "Students unavailable for graduation" means students who have
died, been incarcerated, or called to active military duty.
SEC. 65. Section 94929 of the Education Code is
amended to read:
94929. (a) An institution shall annually report to the board, as
part of the annual report, and publish in its School Performance Fact
Sheet, the completion rate for each program. Except as provided in
subdivision (b), the completion rate shall be calculated by dividing
the number of graduates by the number of students available for
graduation.
(b) In lieu of calculating graduation data pursuant to subdivision
(a), an institution may report graduation data reported to, and
calculated by, the Integrated Postsecondary Education Data System of
the United States Department of Education.
SEC. 66. Section 94929.5 of the Education Code
is amended to read:
94929.5. (a) An institution shall annually report to the board,
as part of the annual report, and shall publish in its School
Performance Fact Sheet, all of the following:
(1) The job placement rate, calculated by dividing the number of
graduates employed in the field by the number of graduates available
for employment for each program that is either (1) designed, or
advertised, to lead to a particular career, or (2) advertised or
promoted with any claim regarding job placement.
(2) The license examination passage rates for the immediately
preceding two years for programs leading to employment for which
passage of a state licensing examination is required, calculated by
dividing the number of graduates who pass the examination by the
number of graduates who take the licensing examination the first time
that the examination is available after completion of the
educational program. The institution shall use state agency licensing
data to calculate license examination passage rates. If those data
are unavailable, the institution shall calculate the license
examination passage rate in a manner consistent with regulations
adopted by the board.
(3) Salary and wage information, consisting of the total number of
graduates employed in the field and the annual wages or salaries of
those graduates stated in increments of five thousand dollars
($5,000).
(4) If applicable, the most recent official three-year cohort
default rate reported by the United States Department of Education
for the institution and the percentage of enrolled students receiving
federal student loans.
(b) Nothing in this section shall limit the board's authority to
collect information from an institution to comply with this section
and ensure, by regulation and other lawful means, that the
information required by this section, and the manner in which it is
collected and reported, is all of the following:
(1) Useful to students.
(2) Useful to policymakers.
(3) Based upon the most credible and verifiable data available.
(4) Does not impose undue compliance burdens on an institution.
SEC. 67. Section 94929.7 of the Education Code
is amended to read:
94929.7. (a) The information used to substantiate the rates and
information calculated pursuant to Sections 94929 and 94929.5 shall
do both of the following:
(1) Be documented and maintained by the institution for five years
from the date of the publication of the rates and information.
(2) Be retained in an electronic format and made available to the
board upon request.
(b) An institution shall provide a list of employment positions
used to determine the number of graduates employed in the field for
purposes of calculating job placement rates pursuant to this article.
(c) The board shall identify the specific information that an
institution is required to document and maintain to substantiate
rates and information pursuant to this section.
SEC. 31. Section 94929.5 of the
Education Code is amended to read:
94929.5. (a) An institution shall annually report to the bureau,
as part of the annual report, and shall publish in its School
Performance Fact Sheet, all of the following:
(1) The job placement rate, calculated by dividing the number of
graduates employed in the field by the number of graduates available
for employment for each program that is either (1) designed, or
advertised, to lead to a particular career, or (2) advertised or
promoted with any claim regarding job placement.
(2) The license examination passage rates for the immediately
preceding two years for programs leading to employment for which
passage of a state licensing examination is required, calculated by
dividing the number of graduates who pass the examination by the
number of graduates who take the licensing examination the first time
that the examination is available after completion of the
educational program. The institution shall use state agency licensing
data to calculate license examination passage rates. If those data
are unavailable, the institution shall calculate the license
examination passage rate in a manner consistent with regulations
adopted by the bureau.
(3) Salary and wage information, consisting of the total number of
graduates employed in the field and the annual wages or salaries of
those graduates stated in increments of five thousand dollars
($5,000).
(4) If applicable, the most recent official three-year cohort
default rate reported by the United States Department of Education
for the institution and the percentage of enrolled students receiving
federal student loans.
(b) Nothing in this section shall limit the bureau's authority to
collect information from an institution to comply with this section
and ensure, by regulation and other lawful means, that the
information required by this section, and the manner in which it is
collected and reported, is
all of the following:
(1) Useful to students.
(2) Useful to policymakers.
(3) Based upon the most credible and verifiable data available.
(4) Does not impose undue compliance burdens on an institution.
(c) Data and information disclosed pursuant to paragraphs (1) to
(3), inclusive, of subdivision (a) is not required to include
students who satisfy the qualifications specified in subdivision (d)
of Section 94909, but an institution shall disclose on its fact sheet
and to the bureau whether its data, information, or both, excludes
any students pursuant to this subdivision.
SEC. 68. Section 94929.8 of the Education Code
is amended to read:
94929.8. (a) The board shall establish, by regulation as
specified in Section 94877, a uniform method for institutions to
obtain statistically valid, current, and representative data to
comply with this article.
(b) A violation of the regulations adopted pursuant to subdivision
(a) is a material violation of this chapter.
SEC. 69. SEC. 32. Section 94929.9 is
added to the Education Code, to read:
94929.9. (a) The board shall report to the Legislature,
on or before October 1, 2015, on whether data reporting and
disclosure requirements under the act may be appropriately
consolidated with reporting required by other regulatory bodies,
including, but not limited to, the United States Department of
Education, the Student Aid Commission, or accrediting agencies. It is
the intent of the Legislature that the same or similar data as is
required to be reported to the board pursuant to this article shall
be reported to students in a clear and conspicuous manner
bureau shall consider the graduate salary and other outcome data
and reporting requirements that are utilized by the United States
Department of Education, the Student Aid Commission, accrediting
agencies, and student advocate associations. The bureau shall
consider the reporting requirements of public postsecondary
institutions in California to evaluate the feasibility of adopting
these reporting requirements for private postsecondary institutions.
The bureau shall make recommendations to the Legislature, on or
before December 31, 2016, on how reporting requirements under this
chapter should be altered to ensure accurate, useful, and consistent
reporting by private postsecondary institutions to the bureau and
students .
(b) The bureau is authorized to enter into a personal services
contract with an appropriate independent contractor to assist in the
evaluation required by subdivision (a). In this connection, the
Legislature finds, pursuant to Section 19130 of the Government Code,
that this is a new state function.
(b)
(c) (1) A report to be submitted to the Legislature
pursuant to subdivision (a) shall be submitted in compliance with
Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed January 1, 2019. 2017.
SEC. 70. Section 94930 of the Education Code is
amended to read:
94930. (a) All fees collected pursuant to this article, including
any interest on those fees, shall be deposited in the Private
Postsecondary Education Administration Fund, and shall be available,
upon appropriation by the Legislature, for expenditure by the board
for the administration of this chapter.
(b) If the board determines by regulation that the adjustment of
the fees established by this article is consistent with the intent of
this chapter, the board may adjust the fees. However, the board
shall not maintain a reserve balance in the Private Postsecondary
Education Administration Fund in an amount that is greater than the
amount necessary to fund six months of authorized operating expenses
of the board in any fiscal year.
SEC. 71. SEC. 33. Section 94930.5 of
the Education Code is amended to read:
94930.5. Subject to Section 94930, an institution shall remit to
the board bureau for deposit in the
Private Postsecondary Education Administration Fund the following
fees, in accordance with the following schedule:
(a) The following fees shall be remitted by an institution
submitting an application for an approval to operate, if applicable:
(1) Application fee for an approval to operate: five thousand
dollars ($5,000).
(2) Application fee for the approval to operate a new branch of
the institution: three thousand dollars ($3,000).
(3) Application fee for an approval to operate by means of
accreditation: seven hundred fifty dollars ($750).
(b) The following fees shall be remitted by an institution seeking
a renewal of its approval to operate, if applicable:
(1) Renewal fee for the main campus of the institution: three
thousand five hundred dollars ($3,500).
(2) Renewal fee for a branch of the institution: three thousand
dollars ($3,000).
(3) Renewal fee for an institution that is approved to operate by
means of accreditation: five hundred dollars ($500).
(c) The following fees shall apply to an institution seeking
authorization of a substantive change to its approval to operate, if
applicable:
(1) Processing fee for authorization of a substantive change to an
approval to operate: five hundred dollars ($500).
(2) Processing fee in connection with a substantive change to an
approval to operate by means of accreditation: two hundred fifty
dollars ($250).
(d) (1) In addition to any fees paid to the board
bureau pursuant to subdivisions (a) to (c),
inclusive, each institution that is approved to operate pursuant to
this chapter shall remit both of the following:
(A) An annual institutional fee, in an amount equal to
three-quarters of 1 percent of the institution's annual revenues
derived from students in California, but not exceeding a total of
twenty-five thousand dollars ($25,000) annually.
(B) An annual branch fee of one thousand dollars ($1,000) for each
branch or campus of the institution operating in California.
(2) The amount of the annual fees pursuant to paragraph (1) shall
be proportional to the board's bureau's
cost of regulating the institution under this chapter.
SEC. 72. Section 94931.5 of the Education Code
is amended to read:
94931.5. (a) The board may propose modifications to the fee
schedule in Section 94930.5 to the Governor and the Legislature to
add or delete categories of fees related to work performed by the
board and propose to the Governor and the Legislature the maximum
amount to be charged for each fee category added to the fee schedule.
The fee schedule shall provide adequate resources for the board to
effectively implement this chapter.
(b) The board shall annually publish a schedule of the current
fees to be charged pursuant to this article and shall make this
schedule available to the public.
SEC. 73. Section 94932 of the Education Code is
amended to read:
94932. The board shall determine an institution's compliance with
the requirements of this chapter. The board shall have the power to
require reports that institutions shall file with the board in
addition to the annual report, to send staff to an institution's
sites, and to require documents and responses from an institution to
monitor compliance. When the board has reason to believe that an
institution may be out of compliance, it shall conduct an
investigation of the institution. If the board determines, after
completing an investigation, that an institution has violated any
applicable law or regulation, the board shall take appropriate action
pursuant to this article.
SEC. 74. SEC. 34. Section 94932.5 of
the Education Code is amended to read:
94932.5. (a) As part of its compliance program, the
board bureau shall perform announced and
unannounced inspections of institutions at least every five years.
(b) On or before January 1, 2016, 2017,
the board bureau shall adopt
regulations setting forth policies and practices to ensure that
student protections are the highest priority of inspections and that
inspections are conducted based on risk and potential harm to
students. The regulations shall also set forth policies and practices
for providing notice to students enrolled at an institution of the
results of each inspection of the institution.
SEC. 75. Section 94933 of the Education Code is
amended to read:
94933. The board shall provide an institution with the
opportunity to remedy noncompliance, impose fines, place the
institution on probation, or suspend or revoke the institution's
approval to operate, in accordance with this article, as it deems
appropriate based on the severity of an institution's violations of
this chapter, and the harm caused to students.
SEC. 76. Section 94933.5 of the Education Code
is amended to read:
94933.5. As much as is practicable, the board shall seek to
resolve instances of noncompliance, including the use of alternative
dispute resolution procedures in Article 5 (commencing with Section
11420.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the
Government Code.
SEC. 77. Section 94934 of the Education Code is
amended to read:
94934. (a) As part of the compliance program, an institution
shall submit an annual report to the board, under penalty of perjury,
signed by a responsible corporate officer, by July 1 of each year,
or another date designated by the board, and it shall include the
following information for educational programs offered in the
reporting period:
(1) The total number of students enrolled by level of degree or
for a diploma.
(2) The number of degrees, by level, and diplomas awarded.
(3) The degree levels and diplomas offered.
(4) The Student Performance Fact Sheet, as required pursuant to
Section 94910.
(5) The school catalog, as required pursuant to Section 94909.
(6) The total charges for each educational program by period of
attendance.
(7) A statement indicating whether the institution is, or is not,
current in remitting Student Tuition Recovery Fund assessments.
(8) A statement indicating whether an accrediting agency has taken
any final disciplinary action against the institution.
(9) Additional information deemed by the board to be reasonably
required to ascertain compliance with this chapter.
(b) The board shall prescribe the annual report's format and
method of delivery.
SEC. 78. Section 94935 of the Education Code is
amended to read:
94935. (a) Board staff who, during an inspection of an
institution, detect a violation of this chapter, or regulations
adopted pursuant to this chapter, that is a minor violation as
determined by the board, pursuant to regulations, shall issue a
notice to comply before leaving the institution. The board shall
establish a voluntary informal appeal process, by regulation, within
one year of the enactment of this chapter.
(b) An institution that receives a notice to comply shall have no
more than 30 days from the date of inspection to remedy the
noncompliance.
(c) Upon achieving compliance, the institution shall sign and
return the notice to comply to the board.
(d) A single notice to comply shall be issued listing separately
all the minor violations cited during the inspection.
(e) A notice to comply shall not be issued for any minor violation
that is corrected immediately in the presence of the board staff.
Immediate compliance may be noted in the inspection report, but the
institution shall not be subject to any further action by the board.
(f) A notice to comply shall be the only means the board shall use
to cite a minor violation discovered during an inspection. The board
shall not take any other enforcement action specified in this
chapter against an institution that has received a notice to comply
if the institution remedies the violation within 30 days from the
date of the inspection.
(g) If an institution that receives a notice to comply pursuant to
subdivision (a) disagrees with one or more of the alleged minor
violations listed in the notice to comply, an institution shall send
the board a written notice of disagreement. The agency may take
administrative enforcement action to seek compliance with the
requirements of the notice to comply.
(h) If an institution fails to comply with a notice to comply
within the prescribed time, the board shall take appropriate
administrative enforcement action.
SEC. 79. Section 94936 of the Education Code is
amended to read:
94936. (a) As a consequence of an investigation, and upon a
finding that the institution has committed a violation of this
chapter or that the institution has failed to comply with a notice to
comply pursuant to Section 94935, the board shall issue a citation
to an institution for violation of this chapter, or regulations
adopted pursuant to this chapter.
(b) The citation may contain either or both of the following:
(1) An order of abatement that may require an institution to
demonstrate how future compliance with this chapter or regulations
adopted pursuant to this chapter will be accomplished.
(2) Notwithstanding Section 125.9 of the Business and Professions
Code, an administrative fine not to exceed five thousand dollars
($5,000) for each violation. The board shall base its assessment of
the administrative fine on:
(A) The nature and seriousness of the violation.
(B) The persistence of the violation.
(C) The good faith of the institution.
(D) The history of previous violations.
(E) The purposes of this chapter.
(F) The potential harm to students.
(c) (1) The citation shall be in writing and describe the nature
of the violation and the specific provision of law or regulation that
is alleged to have been violated.
(2) The citation shall inform the institution of its right to
request a hearing in writing within 30 days from service of the
citation.
(3) If a hearing is requested, the board shall select an informal
hearing pursuant to Article 10 (commencing with Section 11445.10) of
Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code
or a formal hearing pursuant to Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(4) If a hearing is not requested, payment of the administrative
fine is due 30 days from the date of service, and shall not
constitute an admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative
fine is ordered, the administrative fine is due 30 days from when the
final order is entered.
(6) The board may enforce the administrative fine as if it were a
money judgment pursuant to Title 9 (commencing with Section 680.010)
of Part 2 of the Code of Civil Procedure.
(d) All administrative fines shall be deposited in the Private
Postsecondary Education Administration Fund.
SEC. 80. Section 94937 of the Education Code is
amended to read:
94937. (a) As a consequence of an investigation, and upon a
finding that an institution has committed a violation, the board may
place an institution on probation or may suspend or revoke an
institution's approval to operate for:
(1) Obtaining an approval to operate by fraud.
(2) A material violation or repeated violations of this chapter or
regulations adopted pursuant to this chapter that have resulted in
harm to students. For purposes of this paragraph, "material violation"
includes, but is not limited to, misrepresentation, fraud in the
inducement of a contract, and false or misleading claims or
advertising, upon which a student reasonably relied in executing an
enrollment agreement and that resulted in harm to the student.
(b) The board shall adopt regulations governing probation and
suspension of an approval to operate.
(c) The board may seek reimbursement pursuant to Section 125.3 of
the Business and Professions Code.
(d) An institution shall not be required to pay the cost of
investigation to more than one agency.
SEC. 81. Section 94938 of the Education Code is
amended to read:
94938. (a) If the board determines that it needs to make an
emergency decision to protect students, prevent misrepresentation to
the public, or prevent the loss of public funds or moneys paid by
students, it may do so pursuant to Article 13 (commencing with
Section 11460.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2
of the Government Code.
(b) The board shall adopt regulations to give this section effect
pursuant to Section 11460.20 of the Government Code.
SEC. 82. Section 94939 of the Education Code is
amended to read:
94939. (a) The board may bring an action for equitable relief for
any violation of this chapter. The equitable relief may include
restitution, a temporary restraining order, the appointment of a
receiver, and a preliminary or permanent injunction. The action may
be brought in the county in which the defendant resides or in which
any violation has occurred or may occur.
(b) The remedies provided in this section supplement, and do not
supplant, the remedies and penalties under other provisions of law.
SEC. 83. SEC. 35. Section 94941 of
the Education Code is amended to read:
94941. (a) An individual who has cause to believe that an
institution has violated this chapter, or regulations adopted
pursuant to this chapter, may file a complaint with the
board bureau against the institution. The
complaint shall set forth the alleged violation, and shall contain
any other information as may be required by the board
bureau .
(b) Taking into account the nature and seriousness of the alleged
violation, the board shall take action to ascertain the facts and to
verify the complaint. The action may include interviewing institution
management, conducting an investigation, holding an informal
hearing, or other appropriate investigative activity.
(c) Upon the facts discovered, the board shall take appropriate
administrative enforcement action.
(d) If the board finds that an institution's violation of this
chapter has caused damage or loss to a student or group of students,
the board shall order the institution to provide appropriate
restitution to that student or group of students.
(e) The board shall establish a timeline by which complaints filed
pursuant to this section shall be processed and establish procedures
to prioritize complaints as follows:
(1) "Urgent complaints" represent complaints regarding an
immediate danger to the public health, safety, or welfare, and the
board shall give these complaints the highest priority.
(2) "High-priority complaints" include complaints that could
potentially pose a danger, but pose no immediate danger, to the
public health, safety, or welfare. The board shall give high-priority
complaints less priority than urgent complaints but more priority
than routine complaints.
(3) "Routine complaints" are complaints that do not pose any
significant risk of harm to the public health, safety, or welfare.
(b) 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.
(c) 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:
(1) 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.
(2) 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.
(3) 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.
(4) An institution that experiences a dramatic increase in
enrollment, recently expanded educational programs or campuses, or
recently consolidated campuses.
(5) An institution that offers only nonremedial educational
program courses in English, but enrolls students with limited or no
English language proficiency.
(6) An institution that has experienced a recent change of
ownership or control, or a change in the business organization of the
institution.
(7) An institution with audited financial statements that do not
satisfy the bureau's requirements for financial stability.
(8) An institution that has recently been the subject of an
investigation, judgment, or regulatory action by, or a settlement
with, a governmental agency.
(9) 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.
(d) The bureau shall indicate in an annual report, to be made
publicly available on its Internet Web site, the number of temporary
restraining orders, interim suspension orders, and disciplinary
actions taken by the bureau, disaggregated by each priority category
established pursuant to subdivision (b).
(e) 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:
(1) Degrees, educational programs, or internships offered, the
appropriateness of available equipment for a program, or the
qualifications or experience of instructors.
(2) Job placement, graduation, time to complete an educational
program, or educational program or graduation requirements.
(3) Loan eligibility, terms, whether the loan is federal or
private, or default or forbearance rates.
(4) 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.
(5) Cost of an educational program, including fees and other
nontuition charges.
(6) 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.
(7) Terms of withdrawal and refunds from an institution.
(8) Payment of bonuses, commissions, or other incentives offered
by an institution to its employees or contractors.
SEC. 84. Section 94942 of the Education Code is
amended to read:
94942. (a) The board shall establish a toll-free telephone number
staffed by a board employee by which a student or a member of the
public may file a complaint under this chapter.
(b) The board shall make a complaint form available on its
Internet Web site. The board shall permit students and members of the
public to file a complaint under this chapter through the board's
Internet Web site.
SEC. 85.
Section 94943 of the Education Code is amended to read:
94943. The following violations of this chapter are public
offenses:
(a) Knowingly operating a private postsecondary institution
without an approval to operate is an infraction subject to the
procedures described in Sections 19.6 and 19.7 of the Penal Code.
(b) Knowingly providing false information to the board on an
application for an approval to operate is an infraction subject to
the procedures described in Sections 19.6 and 19.7 of the Penal Code.
(c) Knowingly submitting, to the board, false information that is
required to be reported pursuant to Article 16 (commencing with
Section 94928) is an infraction subject to the procedures described
in Sections 19.6 and 19.7 of the Penal Code.
SEC. 86. Section 94943.5 of the Education Code
is amended to read:
94943.5. An institution shall designate and maintain an agent for
service of process within this state, and provide the name, address,
and telephone number of the agent to the board. The board shall
furnish the agent's name, address, and telephone number to a person
upon request.
SEC. 87. Section 94944 of the Education Code is
amended to read:
94944. Notwithstanding any other provision of law, the board
shall cite any person, and that person shall be subject to a fine not
to exceed fifty thousand dollars ($50,000), for operating an
institution without proper approval to operate issued by the board
pursuant to this chapter.
SEC. 88. Section 94944.5 of the Education Code
is amended to read:
94944.5. Each institution subject to this chapter shall be deemed
to have authorized its accrediting agency to provide the board, the
Attorney General, any district attorney, city attorney, or the
Student Aid Commission, within 30 days of written notice, copies of
all documents and other material concerning the institution that are
maintained by the accrediting agency.
SEC. 89. Section 94944.6 of the Education Code
is amended to read:
94944.6. Within 30 days of receiving a written notice from the
board, the Attorney General, district attorney, city attorney, or the
Student Aid Commission pursuant to Section 94944.5, an accrediting
agency shall provide the requesting entity with all documents or
other material concerning an institution accredited by that agency
that are designated specifically or by category in the written
notice.
SEC. 90. SEC. 36. Section 94945 of
the Education Code is amended to read:
94945. (a) This chapter does not limit or preclude the
enforcement of rights or remedies under any other applicable statute
or law.
(b) This chapter does not limit or preclude the Attorney General,
a district attorney, or a city attorney from taking any action
otherwise authorized under any other applicable statute or law.
(c) If the board bureau has reason
to believe that an institution has engaged in a pattern or practice
of violating the provisions of this chapter or any other applicable
law that involves multiple students or other claimants, the
board bureau shall contract with the Attorney
General for investigative and prosecutorial services, as necessary.
SEC. 37. Section 94947 is added to the
Education Code , to read:
94947. (a) Notwithstanding section 94874.2, an institution
described in subdivision (i) of Section 94874 that satisfies all of
the following requirements may claim an exemption from this chapter.
(1) The institution has been accredited by an accrediting agency
recognized by the United States Department of Education for at least
10 years, and has not been placed on probation or on a greater level
than standard monitoring, or sanctioned, by its accrediting agency.
(2) The institution is headquartered in California and has
operated continuously in this state for at least 25 years.
(3) The institution is privately held and prior to its current
exemption, the institution was granted an approval to operate by the
Bureau for Private Postsecondary Education, or its predecessor agency
and has experienced no change of ownership since the institution was
last approved.
(4) During its existence, the institution has not filed for
bankruptcy protection.
(5) The institution maintains an equity ratio composite score of
at least 1.5 based on the current financial stability test.
(6) At least 15 percent of the institution's revenues are derived
from sources other than financial aid. For purposes of this
requirement, financial aid includes all forms of state or federal
student assistance, including, but not limited to, financial aid
provided to veterans and financial aid through the Cal Grant Program.
(7) The institution's cohort default rate does not exceed 13
percent for the most recent three years, as published by the United
States Department of Education.
(8) The institution has a graduation rate that exceeds 60 percent,
as reported to the Integrated Postsecondary Education Data System.
(9) The institution has not been subject to any legal or
regulatory actions by a state attorney general for a violation of
consumer protection laws that resulted in monetary settlement, fines,
or other documented violations.
(10) The institution provides a pro rata refund of unearned
institutional charges to students who complete 75 percent or less of
the period of attendance.
(11) The institution provides to all students the right to cancel
the enrollment agreement and obtain a refund of charges paid through
attendance at the second class session, or the 14th day after
enrollment, whichever is later.
(12) The institution complies with all other reasonable criteria,
necessary to ensure educational quality and protection of veterans,
established by the California State Approving Agency for Veterans
Education.
(13) The institution verifies its exemption pursuant to Section
94874.1.
(b) An institution exempt from this chapter pursuant to this
section may apply to the bureau for an approval to operate pursuant
to section 94874.8
(c) It is the intent of the Legislature that if the exemption
provided in this section is declared by a court to be invalid for any
reason, the requirements of this chapter shall apply to an
institution that would otherwise be subject to receive this
exemption.
SEC. 91. SEC. 38. Section 94948 of
the Education Code is amended to read:
94948. In addition to any other reporting requirements under this
chapter, the board director shall
provide regular written updates to the
Legislature by participating eve
ry six months and shall participate in annual
all oversight hearings conducted by the
appropriate policy committees and budget subcommittees of the Senate
and Assembly. The updates shall describe the board's
bureau's progress in adopting and
protecting consumers and enforcing
regulations and the provisions of this chapter.
SEC. 92. SEC. 39. Section 94949 of
the Education Code is repealed.
SEC. 93. SEC. 40. Section 94949 is
added to the Education Code, to read:
94949. (a) The board director shall
provide to the Legislature a copy of an independent review of
its the bureau's staffing
resources, along with an resources needs and
requirements no later than March 15, 2015. The director shall include
with this report an overview of how the board
director intends to ensure its
that the bureau's staff are sufficiently
qualified for purposes of implementing the provisions of this
chapter, and the estimated costs of meeting staffing and
other requirements to implement this chapter, and the
estimated fee revenue generated by the fee structure as outlined in
Section 94930.5, as of January 1, 2015, within 30 days of the
completion of the independent review, but no later than March 15,
2015 chapter based on findings of the independent
review . The director shall include a brief evaluation of
whether the current fee structure is appropriate to satisfy those
staffing and other requirements.
(b) The overview pursuant to subdivision (a) shall also include an
examination of the annual fee structure, including whether the total
fees paid by an institution should be subject to a maximum and
whether there are more equitable ways to assess annual fees to an
institution.
(c)
(b) (1) A report to be submitted pursuant to
subdivision (a) shall be submitted in compliance with Section 9795 of
the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2019. 2017.
SEC. 41. Section 94949.5 is added to the
Education Code , to read:
94949.5. (a) The Legislature finds and declares all of the
following:
(1) Two bureaus have operated under the Department of Consumer
Affairs to regulate private postsecondary education, one bureau from
1998 to 2007, inclusive, and one bureau since 2010. Numerous audits,
analyses conducted by state agencies and private entities,
legislative investigations and public comment have concluded that
California oversight of private postsecondary educational
institutions has not adequately served the interests of the public.
(2) The bureau collects substantial amounts of money annually from
institutions licensed under this chapter but lacks appropriate
spending authority and staffing to effectively implement this
chapter.
(3) California students and the economy benefit from government
oversight and regulations that result in access to quality
postsecondary education.
(4) Transparency in the bureau's functions, operations,
priorities, and organization will better assist the Legislature in
ensuring that the Department of Consumer Affairs and the bureau are
provided with the direction and resources necessary to implement this
chapter.
(b) The Secretary of Business, Consumer Services, and Housing, in
consultation with the Legislature, shall appoint a Bureau for Private
Postsecondary Education Monitor from a pool of qualified candidates
by January 1, 2016. The secretary may retain a person for this
position by a personal services contract. In this connection, the
Legislature finds, pursuant to Section 19130 of the Government Code,
that this is a new state function.
(c) The Secretary shall advertise the availability of this
position. The requirements for this position shall include experience
in private postsecondary education, familiarity with state laws,
rules, and procedures pertaining to the bureau, familiarity with
relevant administrative law and procedure, administrative complaint
prioritization, processing, and investigation, and familiarity with
the Department of Consumer Affairs and its powers and procedures. To
assume this position, a candidate shall have a record of student or
consumer, or student and consumer, representation or advocacy, and
have no current investment in, or be receiving personal remuneration
from, any institution subject to the bureau's regulations.
(d) (1) The monitor shall perform independent fact gathering and
data analysis functions by assessing the bureau's operations,
including its approvals to operate, applicant review, and complaint
and enforcement processes and procedures, with the primary goals of
improving the bureau's overall efficiency, effectiveness, and
compliance with state laws, particularly as relates to the bureau's
approval to operate, complaint, and enforcement processes.
(2) The monitor's duties shall include, but not necessarily be
limited to, evaluating relevant state laws, regulations, budgetary
actions, and processes to identify revisions that would improve state
regulation of private postsecondary institutions and student and
public protection.
(3) The monitor shall be provided findings from representatives of
the Bureau of State Audits, representatives of the Department of
Consumer Affair's Internal Audit Office, and findings from other
organizations performing evaluations of the bureau. To the extent
feasible, the monitor shall utilize, but not duplicate, information
and recommendations provided by audits and reviews previously
conducted by the Department of Consumer Affairs, the bureau, the
Legislative Analyst's Office, and the Bureau of State Audits,
independent staffing resource reviews, and other relevant
information.
(4) The monitor shall exercise no authority over the bureau's
management or staff; however, the bureau and its staff shall
cooperate with the monitor, and shall provide all data, information,
and files as requested by the monitor to perform his or her duties.
(5) The director shall assist the monitor in the performance of
his or her duties, and the monitor shall have the same investigative
authority related to the bureau as the director.
(e) The monitor shall submit an initial written report of his or
her findings and conclusions to the Legislature no later than July 1,
2016, and shall be available to make oral reports to Legislative
committees if requested to do so. The monitor may also provide
additional information to the Legislature at his or her discretion or
at the request of the Legislature. The monitor's reports shall be
made available to the public and posted on the bureau's Internet Web
site. The monitor shall make every effort to provide the Department
of Consumer Affairs and the bureau with an opportunity to reply to
any facts, finding, issues, or conclusions in his or her reports with
which the department or the bureau may disagree.
(f) The bureau shall reimburse the Business, Consumer Services and
Housing Agency for all of the costs associated with the employment
of the monitor.
SEC. 94. SEC. 42. Section 94950 of
the Education Code is amended to read:
94950. This chapter shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 43. The sum of one hundred thirty thousand
dollars ($130,000) is hereby appropriated from the Private
Postsecondary Education Administration Fund to the Bureau for Private
Postsecondary Education, for the 2014-15 fiscal year, to be combined
with any other available funds, for purposes of establishing one
permanent attorney position at the bureau to assist the bureau in its
regulatory activities, and one permanent analyst position at the
bureau to provide support to the advisory committee.
SEC. 95. SEC. 44. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.