BILL NUMBER: AB 1525 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 27, 2007
AMENDED IN SENATE JUNE 20, 2007
AMENDED IN SENATE JUNE 6, 2007
AMENDED IN ASSEMBLY APRIL 26, 2007
AMENDED IN ASSEMBLY APRIL 16, 2007
INTRODUCED BY Assembly Member Cook
(Coauthor: Assembly Member Portantino)
FEBRUARY 23, 2007
An act relating to private postsecondary education, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1525, as amended, Cook. Private postsecondary education.
(1) The Private Postsecondary and Vocational Education Reform Act
of 1989 generally sets minimum standards of instructional quality,
ethical and business practices, health and safety, and fiscal
responsibility for private postsecondary and vocational educational
institutions, as defined. The act establishes the Bureau for Private
Postsecondary and Vocational Education in the Department of Consumer
Affairs. Existing law requires the bureau, among other things, to
review and investigate all institutions, programs, and courses of
instruction approved under the act.
The act establishes the Private Postsecondary and Vocational
Education Administration Fund and the continuously appropriated
Student Tuition Recovery Fund. The act specifies that certain
violations of its provisions are subject to civil penalties and that
certain willful violations of the act are punishable as crimes. A
provision of the act provides for it to become inoperative on July 1,
2007, and provides for its repeal on January 1, 2008.
The bill would express the intent of the Legislature to provide
for the protection of the interests of students who, and institutions
which, have pending matters, or any other pending business, before
the bureau as of June 30, 2007.
The bill would require that each matter, as defined, pending
before the bureau as of the close of business on June 30, 2007, be
deemed to remain pending before the bureau or a successor agency as
of February 1, 2008, irrespective of any applicable deadlines. With
respect to any deadline applicable to a pending matter, the bill
would require that no time be deemed to have elapsed between July 1,
2007, and January 31, 2008, inclusive. The bill would require that
any institution, program, or course of study that is approved by the
bureau, or authorized as prescribed, as of the close of business on
June 30, 2007, be deemed to be approved as of February 1, 2008,
irrespective of any applicable conditions, deadlines, or additional
requirements. The bill would also require that, with respect to any
deadline applicable to the approval or conditional approval of an
institution, program, or course of study, no time shall be deemed to
have elapsed between July 1, 2007, and January 31, 2008, inclusive.
The bill would authorize the Director of Consumer Affairs to enter
into voluntary agreements with institutions that state that the
institutions agree to comply with state statutes, rules, and
regulations applicable to these institutions as of June 30, 2007. The
bill would require institutions to disclose to their current and
prospective students in writing, within 60 days of the effective date
of the bill, whether they entered into, or declined to enter into, a
voluntary agreement with the director.
The bill would require the rights and obligations established by
the act on or before June 30, 2007, to be determined by the law in
effect on or before June 30, 2007, and any claim or cause of action
in any manner based on the act that arose on or before June 30, 2007,
whether or not reduced to a final judgment, be preserved. The bill
would authorize any remedy that was or could have been ordered to
redress a violation of the act on or before June 30, 2007, to be
ordered or maintained thereafter. The bill would require the rights,
obligations, claims, causes of action, and remedies set forth in this
provision to remain subject to the provisions of the act in effect
on or before June 30, 2007, notwithstanding the inoperative status or
repeal of the act on or after July 1, 2007.
The bill would continue the existence of the Private Postsecondary
and Vocational Education Administration Fund and the continuously
appropriated Student Tuition Recovery Fund, thereby making an
appropriation.
These provisions would be repealed on February 1, 2008.
(2) The bill would state that its provisions are to apply
retroactively to July 1, 2007.
(3) The bill would continue the approval of private postsecondary
institutions for specified purposes until July 1, 2008.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) It is the intent of the Legislature to provide,
through the enactment of subdivision (b), for the protection of the
interests of students and institutions having any matter pending
before the Bureau for Private Postsecondary and Vocational Education
as of June 30, 2007. The Legislature further encourages the
Department of Consumer Affairs to provide information to students and
institutions during this time period to ensure their understanding
of their rights and responsibilities effective February 1, 2008, and
that student complaints received during this time period continue to
be duly recorded and, to the extent practicable, investigated, so
that no Californian is harmed by the delay in the provision of full
services.
(b) Notwithstanding any other provision of law:
(1) Each matter pending before the Bureau for Private
Postsecondary and Vocational Education as of the close of business on
June 30, 2007, shall be deemed to remain pending before the bureau
or a successor agency as of February 1, 2008, irrespective of any
applicable deadlines. With respect to any deadline applicable to a
pending matter, no time shall be deemed to have elapsed between July
1, 2007, and January 31, 2008, inclusive.
(A) For the purposes of this paragraph, "matter" includes, but is
not necessarily limited to, an appeal, a complaint, an evaluation, a
hearing, or an investigation.
(B) For the purposes of this paragraph, "matter" does not include
a Student Tuition Recovery Fund Claim. Nothing in this paragraph
shall be construed to prevent the payment of existing Student Tuition
Recovery Fund claims that have been filed with, and approved, by the
Bureau for Private Postsecondary and Vocational Education as of June
30, 2007.
(2) Any institution, program, or course of study that is approved
by the bureau or authorized pursuant to Section 94905 of the
Education Code, as it read on June 30, 2007, as of the close of
business on June 30, 2007, shall be deemed to be approved as of
February 1, 2008, irrespective of any applicable conditions,
deadlines, or additional requirements. With respect to any deadline
applicable to the approval, renewal of approval, or conditional
approval of an institution, program, or course of study, no time
shall be deemed to have elapsed between July 1, 2007, and January 31,
2008, inclusive.
(3) From July 1, 2007, to January 31, 2008, inclusive, the
Director of Consumer Affairs may enter into voluntary agreements with
institutions that state that the institutions agree to comply with
state statutes, rules, and regulations pertaining to private
postsecondary institutions or pertaining to non-WASC regionally
accredited institutions as defined in Section 94740.5 of the
Education Code, as it exists on June 30, 2007, in effect as of
the close of business on June 30, 2007, that had a valid approval to
operate or authorization pursuant to Section 94905 of the Education
Code, as it read exists on June 30,
2007, as of the close of business on June 30, 2007,
for the purpose of ensuring continued student protection
after Chapter 7 (commencing with Section 94700) of Part 59 of
Division 10 of Title 3 of the Education Code, as it exists on June
30, 2007, becomes inoperative.
(4) From July 1, 2007, to January 31, 2008, inclusive, the
Director of Consumer Affairs shall administer the Student Tuition
Recovery Fund.
SEC. 2. (a) The Private Postsecondary and Vocational Education
Administration Fund is continued in existence under the
administration of the Department of Consumer Affairs.
(b) (1) The Student Tuition Recovery Fund is continued in
existence under the administration of the Department of Consumer
Affairs. The fund shall consist of only one educational institution
account for payment of approved claims.
(2) The moneys in the Student Tuition Recovery Fund are
continuously appropriated, without regard to fiscal years, to the
Director of Consumer Affairs for the purpose of paying claims that
were filed with, and approved by, the former Bureau for Private
Postsecondary and Vocational Education prior to July 1, 2007, under
the provisions of Chapter 7 (commencing with Section 94700) of Part
59 of Division 10 of Title 3 of the Education Code, as it exists on
June 30, 2007. A claim that has been filed with and approved by the
Bureau for Private Postsecondary and Vocational Education prior to
July 1, 2007, but not paid by the Director of Consumer Affairs
between July 1, 2007, and January 31, 2008, inclusive, shall be
deemed pending before a successor agency on February 1, 2008.
(3) From July 1, 2007, to December 31, 2007, inclusive, an
institution is not liable for payments to the Student Tuition
Recovery Fund. During that period, an institution shall not collect
money from its students for purposes of making payments to that fund.
If any collections are made for an academic term falling within that
period, the institution making the collection shall refund those
moneys to the student from whom they were collected. Any funds
collected by an institution from its students for the purposes of
making payments to the Student Tuition Recovery Fund on or before
June 30, 2007, and still in the possession of the institution as of
July 1, 2007, shall be remitted by the institution to the Director of
Consumer Affairs.
(4) It is the intent of the Legislature that, to the extent
possible, the Department of Consumer Affairs shall pay claims found
to be owed and payable by the Bureau for Private Postsecondary and
Vocational Education to students from the Student Tuition Recovery
Fund between June 30, 2007, and January 31, 2008, inclusive.
SEC. 3. (a) It is the intent of the Legislature to provide
institutions with a legal method by which they may comply with
applicable federal statutes, rules, and regulations from July 1,
2007, to January 31, 2008, inclusive, and to affirm for the United
States Department of Education that voluntary agreements, as
referenced in paragraph (3) of subdivision (b) of Section 1 of this
act, demonstrate the legal authorization to operate schools under
California law from July 1, 2007, to January 31, 2008, inclusive.
(b) From close of business on June 30, 2007, inclusive,
until close of business on January 31, 2008,
inclusive, wherever in law there is a reference to an
institution "approved by the Bureau for Private Postsecondary and
Vocational Education," this shall mean any school that has entered
into, and is complying with, a voluntary agreement under paragraph
(3) of subdivision (b) of Section 1 of this act.
SEC. 4. (a) For purposes of this section, "act"
act, "Reform Act" means the Private
Postsecondary and Vocational Education Reform Act of 1989 (Chapter 7
(commencing with Section 94700) of Part 59 of Division 10 of Title 3
of the Education Code), as it exists on June 30, 2007.
(b) The rights and obligations established by the act
(1) Notwithstanding any other
provision of law , the rights and obligations established
by the Reform Act on or before June 30, 2007, shall be
determined by the law in effect on or before June 30, 2007, and any
claim or cause of action in any manner based on the act
Reform Act that arose on or before June 30,
2007, whether or not reduced to a final judgment, shall be preserved,
and any remedy that was or could have been ordered to redress a
violation of the Reform Act on or before June 30, 2007, may be
ordered or maintained thereafter.
(2) The rights, obligations, claims,
causes of action, and remedies described in paragraph (1) shall
remain subject to the provisions of the act
Reform Act in effect on or before June 30, 2007,
notwithstanding the inoperative status or repeal of the act
Reform Act on or after July 1, 2007.
SEC. 5. (a) Wherever in this act there is a provision related to a
voluntary agreement, that provision shall be applicable only if the
Department of Consumer Affairs has proposed and tendered that
voluntary agreement as permitted by this act , and the
institution has submitted to the Department of Consumer Affairs an
executed voluntary agreement within 15 days of receipt .
(b) No more than 60 days after the operative date of that the act
that adds this section becomes operative, an institution shall
disclose to all of its current and prospective students whether it
has agreed to, or has declined to enter into, a voluntary agreement
with the Director of Consumer Affairs pursuant to paragraph (3) of
subdivision (b) of Section 1 of this act.
SEC. 6. It is the intent of the Legislature that the Department of
Consumer Affairs shall continue to provide all applicable rights and
protections of civil service to its employees, including, but not
necessarily limited to, employees of the Bureau for Private
Postsecondary and Vocational Education.
SEC. 7. The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.
SEC. 8. This act, including, but not necessarily limited to, its
provisions relating to voluntary agreements, shall apply
retroactively to July 1, 2007.
SEC. 9. Private postsecondary educational institutions that have a
valid approval to operate, and instructors holding a valid
certificate of authorization for service, from the Bureau for Private
Postsecondary and Vocational Education as of June 30, 2007, shall
retain those approvals or certificates of authorization for purposes
of interpreting other provisions of applicable law that refer or
relate to the issuance of a license or registration and meeting
qualifications for licensing examinations. Those approvals shall be
effective through July 1, 2008, unless a later enacted statute
modifies, extends, or deletes that date.
SEC. 10. Sections 1 to 8, inclusive, of this act shall be repealed
on February 1, 2008, unless a later enacted statute, that is enacted
before February 1, 2008, deletes or extends that date.
SEC. 11. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to provide for the protection of the interests of
students and institutions having matters pending before the Bureau
for Private Postsecondary and Vocational Education as of June 30,
2007, and for students, institutions, and law enforcement
agencies having any claim or cause of action in any manner based on
the Reform Act and that arose on or before June 30, 2007, it is
necessary that this act take effect immediately.