BILL NUMBER: SB 823 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 13, 2008
AMENDED IN ASSEMBLY JUNE 19, 2008
AMENDED IN ASSEMBLY JUNE 9, 2008
AMENDED IN ASSEMBLY AUGUST 20, 2007
AMENDED IN ASSEMBLY JULY 17, 2007
AMENDED IN ASSEMBLY JULY 2, 2007
AMENDED IN SENATE MAY 24, 2007
AMENDED IN SENATE MARCH 27, 2007
INTRODUCED BY Senator Perata
FEBRUARY 23, 2007
An act to amend Sections 101, 146, 149, 473.1, 2902, 2914, 4038,
4841.5, 4939, 4980.40, 7313, 7362, 7395.1, 7407, and 8027 of, to
amend and repeal Section 4980.37 of, and to add Sections 115.5, and
4980.36 to, the Business and Professions Code, to add Chapter 8
(commencing with Section 94800) of Part 59 of Division 10 of Title 3
of the Education Code, and to add Section 11105.8 to the Vehicle
Code, relating to postsecondary education, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately. education, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 823, as amended, Perata. California Private Postsecondary
Education Act of 2008.
(1) The former Private Postsecondary and Vocational Education
Reform Act of 1989, which became inoperative on July 1, 2007, was
administered by the Bureau for Private Postsecondary and Vocational
Education in the Department of Consumer Affairs. The act generally
effectuated legislative intent to ensure minimum standards of
instructional quality and institutional stability in private
postsecondary educational institutions.
The former act established the Private Postsecondary and
Vocational Education Administration Fund and the continuously
appropriated Student Tuition Recovery Fund. Existing law extends the
existence of these funds until July 1, 2008. The former act specified
that certain violations of its provisions were subject to civil
penalties and that certain willful violations of the act were
punishable as crimes. A provision provided for the act's repeal on
January 1, 2008.
This bill would recast and revise the former act as the California
Private Postsecondary Education Act of 2008. The bill would
establish the Bureau for Private Postsecondary Education in the
Department of Consumer Affairs as a successor agency to the former
bureau. The bill would continue the existence of the Private
Postsecondary and Vocational Education Administration Fund, which the
bill would rename the Private Postsecondary Education Administration
Fund, and the continuously appropriated Student Tuition Recovery
Fund, and would also provide that certain violations of the new act
would be punishable as infractions. The bill would impose reporting
requirements on the bureau and the office of the Legislative Analyst
regarding bureau compliance within this act. The bill would also
express the intent of the Legislature that the Bureau of State Audits
conducts an audit that assesses the extent the requirements of this
act are met.
The bill would express the intent of the Legislature that the
California Private Postsecondary Education Act of 2008 be resolved in
a comprehensive measure, as specified. Because this bill would
establish new infractions, the bill would impose a state-mandated
local program.
(2) Existing law provides for the licensure or registration and
regulation of marriage and family therapists and interns by the Board
of Behavioral Sciences and requires that applicants for licensure or
registration, among other requirements, possess a doctor's or master'
s degree from a specified school, college, or university, containing
no less than 48 semester or 72 quarter units of instruction in
specified areas. Existing law requires that the doctor's or master's
degree program contain no less than 6 semester or 9 quarter units of
supervised practicum, as specified, and requires that the practicum
include a minimum of 150 hours of face-to-face experience counseling
individuals, couples, families, or groups. Existing law also requires
the degree program to satisfy certain criteria in order to meet the
educational qualifications for licensure.
This bill would limit the application of these requirements to
applicants for licensure or registration who begin graduate study
before August 1, 2012, and would impose additional requirements on
applicants who do not complete that study on or before December 31,
2018, on applicants who graduate from a degree program that meets
those requirements, and on those who begin graduate study on or after
August 1, 2012. The bill would require that these applicants, among
other things, possess a doctor's or master's degree containing no
less than 60 semester or 90 quarter units of instruction in certain
areas, including, but not limited to, cooccurring disorders,
multicultural development and cross-cultural interaction, and an
understanding of the effects of socioeconomic status on treatment and
available resources, as specified. The bill would require that these
units include 6 semester or 9 quarter units of practicum that
provides training in specified areas and includes a minimum of 225
hours of face-to-face experience counseling individuals, couples,
families, or groups. The bill would additionally, with respect to
these applicants, revise the requirements needed for the degree
program to meet the educational qualifications for licensure, as
specified.
(3) This bill would condition the enactment of certain provisions
relating to licensure requirements upon the enactment of both this
bill and SB 1218 of the 2007-08 Regular Session. The bill would make
another provision operative only if this bill is enacted and SB 1218
is not enacted.
(4) 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.
(5) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3 majority . Appropriation:
yes. Fiscal committee: yes. State-mandated local program: yes.
SB 823, as amended, Perata. California Private Postsecondary
Education Act of 2008.
(1) The former Private Postsecondary and Vocational Education
Reform Act of 1989, which became inoperative on July 1, 2007, was
administered by the Bureau for Private Postsecondary and Vocational
Education in the Department of Consumer Affairs. The act generally
effectuated legislative intent to ensure minimum standards of
instructional quality and institutional stability in private
postsecondary educational institutions.
The former act established the Private Postsecondary and
Vocational Education Administration Fund and the continuously
appropriated Student Tuition Recovery Fund. Existing law extends the
existence of these funds until July 1, 2008. The former act specified
that certain violations of its provisions were subject to civil
penalties and that certain willful violations of the act were
punishable as crimes. A provision provided for the act's repeal on
January 1, 2008.
This bill would recast and revise the former act as the California
Private Postsecondary Education Act of 2008. The bill would
establish the Bureau for Private Postsecondary Education in the
Department of Consumer Affairs as a successor agency to the former
bureau. The bill would continue the existence of the Private
Postsecondary and Vocational Education Administration Fund, which the
bill would rename the Private Postsecondary Education Administration
Fund, and the continuously appropriated Student Tuition Recovery
Fund, and would also provide that certain violations of the new act
would be punishable as infractions. The bill would impose reporting
requirements on the bureau and the office of the Legislative Analyst
regarding bureau compliance within this act. The bill would also
express the intent of the Legislature that the Bureau of State Audits
conducts an audit that assesses the extent the requirements of this
act are met.
The bill would express the intent of the Legislature that the
California Private Postsecondary Education Act of 2008 be resolved in
a comprehensive measure, as specified. Because this bill would
establish new infractions, the bill would impose a state-mandated
local program.
(2) Existing law provides for the licensure or registration and
regulation of marriage and family therapists and interns by the Board
of Behavioral Sciences and requires that applicants for licensure or
registration, among other requirements, possess a doctor's or master'
s degree from a specified school, college, or university, containing
no less than 48 semester or 72 quarter units of instruction in
specified areas. Existing law requires that the doctor's or master's
degree program contain no less than 6 semester or 9 quarter units of
supervised practicum, as specified, and requires that the practicum
include a minimum of 150 hours of face-to-face experience counseling
individuals, couples, families, or groups. Existing law also requires
the degree program to satisfy certain criteria in order to meet the
educational qualifications for licensure.
This bill would limit the application of these requirements to
applicants for licensure or registration who begin graduate study
before August 1, 2012, and would impose additional requirements on
applicants who do not complete that study on or before December 31,
2018, on applicants who graduate from a degree program that meets
those requirements, and on those who begin graduate study on or after
August 1, 2012. The bill would require that these applicants, among
other things, possess a doctor's or master's degree containing no
less than 60 semester or 90 quarter units of instruction in certain
areas, including, but not limited to, cooccurring disorders,
multicultural development and cross-cultural interaction, and an
understanding of the effects of socioeconomic status on treatment and
available resources, as specified. The bill would require that these
units include 6 semester or 9 quarter units of practicum that
provides training in specified areas and includes a minimum of 225
hours of face-to-face experience counseling individuals, couples,
families, or groups. The bill would additionally, with respect to
these applicants, revise the requirements needed for the degree
program to meet the educational qualifications for licensure, as
specified.
(3) This bill would condition the enactment of certain provisions
relating to licensure requirements upon the enactment of both this
bill and SB 1218 of the 2007-08 Regular Session. The bill would make
another provision operative only if this bill is enacted and SB 1218
is not enacted.
(4) 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.
(5) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3 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 101 of the Business and Professions Code is
amended to read:
101. The department is comprised of:
(a) The Dental Board of California.
(b) The Medical Board of California.
(c) The State Board of Optometry.
(d) The California State Board of Pharmacy.
(e) The Veterinary Medical Board.
(f) The California Board of Accountancy.
(g) The California Architects Board.
(h) The Bureau of Barbering and Cosmetology.
(i) The Board for Professional Engineers and Land Surveyors.
(j) The Contractors' State License Board.
(k) The Bureau for Private Postsecondary Education.
() The Structural Pest Control Board.
(m) The Bureau of Home Furnishings and Thermal Insulation.
(n) The Board of Registered Nursing.
(o) The Board of Behavioral Sciences.
(p) The State Athletic Commission.
(q) The Cemetery and Funeral Bureau.
(r) The State Board of Guide Dogs for the Blind.
(s) The Bureau of Security and Investigative Services.
(t) The Court Reporters Board of California.
(u) The Board of Vocational Nursing and Psychiatric Technicians.
(v) The Landscape Architects Technical Committee.
(w) The Bureau of Electronic and Appliance Repair.
(x) The Division of Investigation.
(y) The Bureau of Automotive Repair.
(z) The State Board of Registration for Geologists and
Geophysicists.
(aa) The Respiratory Care Board of California.
(ab) The Acupuncture Board.
(ac) The Board of Psychology.
(ad) The California Board of Podiatric Medicine.
(ae) The Physical Therapy Board of California.
(af) The Arbitration Review Program.
(ag) The Hearing Aid Dispensers Bureau.
(ah) The Physician Assistant Committee.
(ai) The Speech-Language Pathology and Audiology Board.
(aj) The California Board of Occupational Therapy.
(ak) The Osteopathic Medical Board of California.
(a) The Bureau of Naturopathic Medicine.
(am) The Dental Hygiene Committee of California.
(an) Any other boards, offices, or officers subject to its
jurisdiction by law.
SEC. 2. Section 115.5 is added to the Business and Professions
Code, to read:
115.5. The department may design and administer a process for the
approval of programs offered to veterans of the Armed Forces, and
for the approval and supervision of the institutions offering
programs to veterans, pursuant to any applicable act of Congress and
the regulations adopted pursuant to that act. For purposes of this
section, the department:
(a) Is designated as the state approving agency for veterans'
institutions and veterans' programs, and is authorized to be
reimbursed for its services in this regard.
(b) Has the same powers conferred on the Director of Education by
Article 6 (commencing with Section 12090) of Chapter 1 of Part 8 of
Division 1 of Title 1 of the Education Code, to enter into agreements
and cooperate with the United States Department of Veterans Affairs,
or any other federal agency, regarding approval of programs, and the
approval and supervision of institutions that offer programs to
veterans.
SEC. 3. Section 146 of the Business and Professions Code is
amended to read:
146. (a) Notwithstanding any other provision of law, a violation
of any code section listed in subdivision (c) or (d) is an infraction
subject to the procedures described in Sections 19.6 and 19.7 of the
Penal Code when:
(1) A complaint or a written notice to appear in court pursuant to
Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of
the Penal Code is filed in court charging the offense as an
infraction unless the defendant, at the time he or she is arraigned,
after being advised of his or her rights, elects to have the case
proceed as a misdemeanor, or
(2) The court, with the consent of the defendant and the
prosecution, determines that the offense is an infraction in which
event the case shall proceed as if the defendant has been arraigned
on an infraction complaint.
(b) Subdivision (a) does not apply to a violation of the code
sections listed in subdivisions (c) and (d) if the defendant has had
his or her license, registration, or certificate previously revoked
or suspended.
(c) The following sections require registration, licensure,
certification, or other authorization in order to engage in certain
businesses or professions regulated by this code:
(1) Sections 2052 and 2054.
(2) Section 2630.
(3) Section 2903.
(4) Section 3660.
(5) Sections 3760 and 3761.
(6) Section 4080.
(7) Section 4825.
(8) Section 4935.
(9) Section 4980.
(10) Section 4996.
(11) Section 5536.
(12) Section 6704.
(13) Section 6980.10.
(14) Section 7317.
(15) Section 7502 or 7592.
(16) Section 7520.
(17) Section 7617 or 7641.
(18) Subdivision (a) of Section 7872.
(19) Section 8016.
(20) Section 8505.
(21) Section 8725.
(22) Section 9681.
(23) Section 9840.
(24) Subdivision (c) of Section 9891.24.
(25) Section 19049.
(d) Institutions that are required to register with the Bureau for
Private Postsecondary Education pursuant to Chapter 8 (commencing
with Section 94800) of Part 59 of Division 10 of Title 3 of the
Education Code.
(e) Notwithstanding any other provision of law, a violation of any
of the sections listed in subdivision (c) or (d), which is an
infraction, is punishable by a fine of not less than two hundred
fifty dollars ($250) and not more than one thousand dollars ($1,000).
No portion of the minimum fine may be suspended by the court unless
as a condition of that suspension the defendant is required to submit
proof of a current valid license, registration, or certificate for
the profession or vocation which was the basis for his or her
conviction.
SEC. 4. Section 149 of the Business and Professions Code is
amended to read:
149. (a) If, upon investigation, an agency designated in
subdivision (e) has probable cause to believe that a person is
advertising in a telephone directory with respect to the offering or
performance of services, without being properly licensed by or
registered with the agency to offer or perform those services, the
agency may issue a citation under Section 148 containing an order of
correction that requires the violator to do both of the following:
(1) Cease the unlawful advertising.
(2) Notify the telephone company furnishing services to the
violator to disconnect the telephone service furnished to any
telephone number contained in the unlawful advertising.
(b) This action is stayed if the person to whom a citation is
issued under subdivision (a) notifies the agency in writing that he
or she intends to contest the citation. The agency shall afford an
opportunity for a hearing, as specified in Section 125.9.
(c) If the person to whom a citation and order of correction is
issued under subdivision (a) fails to comply with the order of
correction after that order is final, the agency shall inform the
Public Utilities Commission of the violation and the Public Utilities
Commission shall require the telephone corporation furnishing
services to that person to disconnect the telephone service furnished
to any telephone number contained in the unlawful advertising.
(d) The good faith compliance by a telephone corporation with an
order of the Public Utilities Commission to terminate service issued
pursuant to this section shall constitute a complete defense to any
civil or criminal action brought against the telephone corporation
arising from the termination of service.
(e) Subdivision (a) shall apply to the following boards, bureaus,
committees, commissions, or programs:
(1) The Bureau of Barbering and Cosmetology.
(2) The Funeral Directors and Embalmers Program.
(3) The Veterinary Medical Board.
(4) The Hearing Aid Dispensers Advisory Commission.
(5) The Landscape Architects Technical Committee.
(6) The California Board of Podiatric Medicine.
(7) The Respiratory Care Board of California.
(8) The Bureau of Home Furnishings and Thermal Insulation.
(9) The Bureau of Security and Investigative Services.
(10) The Bureau of Electronic and Appliance Repair.
(11) The Bureau of Automotive Repair.
(12) The Tax Preparers Program.
(13) The California Architects Board.
(14) The Speech-Language Pathology and Audiology Board.
(15) The Board for Professional Engineers and Land Surveyors.
(16) The Board of Behavioral Sciences.
(17) The State Board for Geologists and Geophysicists.
(18) The Structural Pest Control Board.
(19) The Acupuncture Board.
(20) The Board of Psychology.
(21) The California Board of Accountancy.
(22) The Bureau of Naturopathic Medicine.
(23) The Bureau for Private Postsecondary Education.
SEC. 5. Section 473.1 of the Business and Professions Code is
amended to read:
473.1. This chapter shall apply to all of the following:
(a) Every board, as defined in Section 22, that is scheduled to
become inoperative and to be repealed on a specified date as provided
by the specific act relating to the board.
(b) The Bureau for Private Postsecondary Education. For purposes
of this chapter, "board" includes the bureau.
(c) The Cemetery and Funeral Bureau.
SEC. 6. Section 2902 of the Business and Professions Code is
amended to read:
2902. As used in this chapter, unless the context clearly
requires otherwise and except as in this chapter expressly otherwise
provided the following definitions apply:
(a) "Licensed psychologist" means an individual to whom a license
has been issued pursuant to the provisions of this chapter, which
license is in force and has not been suspended or revoked.
(b) "Board" means the Board of Psychology.
(c) A person represents himself or herself to be a psychologist
when the person holds himself or herself out to the public by any
title or description of services incorporating the words "psychology,"
"psychological," "psychologist," "psychology consultation,"
"psychology consultant," "psychometry," "psychometrics" or
"psychometrist," "psychotherapy," "psychotherapist," "psychoanalysis,"
or "psychoanalyst," or when the person holds himself or herself out
to be trained, experienced, or an expert in the field of psychology.
(d) "Accredited," as used with reference to academic institutions,
means the University of California, the California State University,
or an institution that is accredited by a national or an applicable
regional accrediting agency recognized by the United States
Department of Education.
(e) "Approved," as used with reference to academic institutions,
means an institution having "approval to operate," as defined in
Section 94817 of the Education Code.
SEC. 7. Section 2914 of the Business and Professions Code is
amended to read:
2914. Each applicant for licensure shall comply with all of the
following requirements:
(a) Is not subject to denial of licensure under Division 1.5.
(b) Possess an earned doctorate degree (1) in psychology, (2) in
educational psychology, or (3) in education with the field of
specialization in counseling psychology or educational psychology.
Except as provided in subdivision (g), this degree or training shall
be obtained from an accredited university, college, or professional
school. The board shall make the final determination as to whether a
degree meets the requirements of this section.
No educational institution shall be denied recognition as an
accredited academic institution solely because its program is not
accredited by any professional organization of psychologists, and
nothing in this chapter or in the administration of this chapter
shall require the registration with the board by educational
institutions of their departments of psychology or their doctoral
programs in psychology.
An applicant for licensure trained in an educational institution
outside the United States or Canada shall demonstrate to the
satisfaction of the board that he or she possesses a doctorate degree
in psychology that is equivalent to a degree earned from a
regionally accredited university in the United States or Canada.
These applicants shall provide the board with a comprehensive
evaluation of the degree performed by a foreign credential evaluation
service that is a member of the National Association of Credential
Evaluation Services (NACES), and any other documentation the board
deems necessary.
(c) Have engaged for at least two years in supervised professional
experience under the direction of a licensed psychologist, the
specific requirements of which shall be defined by the board in its
regulations, or under suitable alternative supervision as determined
by the board in regulations duly adopted under this chapter, at least
one year of which shall be after being awarded the doctorate in
psychology. If the supervising licensed psychologist fails to provide
verification to the board of the experience required by this
subdivision within 30 days after being so requested by the applicant,
the applicant may provide written verification directly to the
board.
If the applicant sends verification directly to the board, the
applicant shall file with the board a declaration of proof of
service, under penalty of perjury, of the request for verification. A
copy of the completed verification forms shall be provided to the
supervising psychologist and the applicant shall prove to the board
that a copy has been sent to the supervising psychologist by filing a
declaration of proof of service under penalty of perjury, and shall
file this declaration with the board when the verification forms are
submitted.
Upon receipt by the board of the applicant's verification and
declarations, a rebuttable presumption affecting the burden of
producing evidence is created that the supervised, professional
experience requirements of this subdivision have been satisfied. The
supervising psychologist shall have 20 days from the day the board
receives the verification and declaration to file a rebuttal with the
board.
The authority provided by this subdivision for an applicant to
file written verification directly shall apply only to an applicant
who has acquired the experience required by this subdivision in the
United States.
The board shall establish qualifications by regulation for
supervising psychologists and shall review and approve applicants for
this position on a case-by-case basis.
(d) Take and pass the examination required by Section 2941 unless
otherwise exempted by the board under this chapter.
(e) Show by evidence satisfactory to the board that he or she has
completed training in the detection and treatment of alcohol and
other chemical substance dependency. This requirement applies only to
applicants who matriculate on or after September 1, 1985.
(f) (1) Show by evidence satisfactory to the board that he or she
has completed coursework in spousal or partner abuse assessment,
detection, and intervention. This requirement applies to applicants
who began graduate training during the period commencing on January
1, 1995, and ending on December 31, 2003.
(2) An applicant who began graduate training on or after January
1, 2004, shall show by evidence satisfactory to the board that he or
she has completed a minimum of 15 contact hours of coursework in
spousal or partner abuse assessment, detection, and intervention
strategies, including knowledge of community resources, cultural
factors, and same gender abuse dynamics. An applicant may request an
exemption from this requirement if he or she intends to practice in
an area that does not include the direct provision of mental health
services.
(3) Coursework required under this subdivision may be satisfactory
if taken either in fulfillment of other educational requirements for
licensure or in a separate course. This requirement for coursework
shall be satisfied by, and the board shall accept in satisfaction of
the requirement, a certification from the chief academic officer of
the educational institution from which the applicant graduated that
the required coursework is included within the institution's required
curriculum for graduation.
(g) An applicant holding a doctoral degree in psychology from an
approved institution is deemed to meet the requirements of this
section if all of the following are true:
(1) The approved institution offered a doctoral degree in
psychology designed to prepare students for a license to practice
psychology and was approved by the Bureau for Private Postsecondary
and Vocational Education on or before July 1, 1999.
(2) The approved institution has not, since July 1, 1999, had a
change of location, as described in Section 94822 of the Education
Code.
(3) The approved institution is not a franchise institution, as
defined in Section 94841.5 of the Education Code.
SEC. 8. Section 4038 of the Business and Professions Code is
amended to read:
4038. (a) "Pharmacy technician" means an individual who assists a
pharmacist in a pharmacy in the performance of his or her pharmacy
related duties, as specified in Section 4115.
(b) A "pharmacy technician trainee" is a person who is enrolled in
a pharmacy technician training program operated by a California
public postsecondary education institution or by a private
postsecondary vocational institution approved by the Bureau for
Private Postsecondary Education.
SEC. 9. Section 4841.5 of the Business and Professions Code is
amended to read:
4841.5. To be eligible to take the written and practical
examination for registration as a registered veterinary technician,
the applicant shall:
(a) Be at least 18 years of age.
(b) Furnish satisfactory evidence of graduation from, at minimum,
a two-year curriculum in veterinary technology, in a college or other
postsecondary institution approved by the board, or the equivalent
thereof as determined by the board. In the case of a private
postsecondary institution, the institution shall also be approved by
the Bureau for Private Postsecondary Education.
SEC. 10. Section 4939 of the Business and Professions Code is
amended to read:
4939. (a) The board shall establish standards for the approval of
schools and colleges offering education and training in the practice
of an acupuncturist, including standards for the faculty in those
schools and colleges and tutorial programs, completion of which will
satisfy the requirements of Section 4938.
(b) Standards for the approval of training programs shall include
a minimum of 3,000 hours of study in curriculum pertaining to the
practice of an acupuncturist. This subdivision shall apply to all
students entering programs on or after January 1, 2005.
(c) Within three years of initial approval by the board, each
program so approved by the board shall receive full institutional
approval under Article 3.5 (commencing with Section 94760) of Chapter
7 of Part 59 of the Education Code as it existed on June 20, 2007,
or Chapter 8 (commencing with Section 94800) of Part 59 of Division
10 of Title 3 of the Education Code, in the field of traditional
Asian medicine, or in the case of institutions located outside of
this state, approval by the appropriate governmental educational
authority, or the approval of the program shall automatically lapse.
SEC. 11. Section 4980.36 is added to the Business and Professions
Code, to read:
4980.36. (a) This section applies to the following:
(1) Applicants for licensure or registration who begin graduate
study before August 1, 2012, and do not complete that study on or
before December 31, 2018.
(2) Applicants for licensure or registration who begin graduate
study before August 1, 2012, and who graduate from a degree program
that meets the requirements of this section.
(3) Applicants for licensure or registration who begin graduate
study on or after August 1, 2012.
(b) To qualify for a license or registration, applicants shall
possess a doctor's or master's degree meeting the requirements of
this section in marriage, family, and child counseling, marital and
family therapy, psychology, clinical psychology, counseling
psychology, or counseling with an emphasis in either marriage,
family, and child counseling or marriage and family therapy, obtained
from a school, college, or university approved by the Bureau for
Private Postsecondary and Education or accredited by either the
Commission on the Accreditation of Marriage and Family Therapy
Education or a regional accrediting agency recognized by the United
States Department of Education. The board has the authority to make
the final determination as to whether a degree meets all
requirements, including, but not limited to, course requirements,
regardless of accreditation or approval.
(c) A doctor's or master's degree program that qualifies for
licensure or registration shall do the following:
(1) Integrate all of the following throughout its curriculum:
(A) Marriage and family therapy principles.
(B) The principles of mental health recovery-oriented care and
methods of service delivery in recovery-oriented practice
environments, among others.
(C) An understanding of various cultures and the social and
psychological implications of socioeconomic position, including an
understanding of how poverty and social stress impact an individual's
mental health and recovery.
(2) Allow for innovation and individuality in the education of
marriage and family therapists.
(3) Encourage students to develop the personal qualities that are
intimately related to effective practice, including, but not limited
to, integrity, sensitivity, flexibility, insight, compassion, and
personal presence.
(4) Permit an emphasis or specialization that may address any one
or more of the unique and complex array of human problems, symptoms,
and needs of Californians served by marriage and family therapists.
(5) Provide students with the opportunity to meet with various
consumers and family members of consumers of mental health services
to enhance understanding of their experience of mental illness,
treatment, and recovery.
(d) The degree described in subdivision (b) shall contain no less
than 60 semester or 90 quarter units of instruction that includes,
but is not limited to, the following requirements:
(1) Both of the following:
(A) No less than 12 semester or 18 quarter units of coursework in
theories, principles, and methods of a variety of psychotherapeutic
orientations directly related to marriage and family therapy and
marital and family systems approaches to treatment and how these
theories can be applied therapeutically with individuals, couples,
families, adults, children, adolescents, and groups to improve,
restore, or maintain healthy relationships.
(B) Practicum that involves direct client contact, as follows:
(i) A minimum of six semester or nine quarter units of practicum
in a supervised clinical placement that provides supervised fieldwork
experience.
(ii) A minimum of 225 hours of face-to-face experience counseling
individuals, couples, families, or groups. Up to 75 of those hours
may be gained performing client centered advocacy, as defined in
Section 4980.03.
(iii) A student shall be enrolled in a practicum course while
counseling clients.
(iv) The practicum shall provide training in all of the following
areas:
(I) Applied use of theory and psychotherapeutic techniques.
(II) Assessment, diagnosis, and prognosis.
(III) Treatment of individuals and premarital, couple, family, and
child relationships, including trauma and abuse, dysfunctions,
healthy functioning, health promotion, illness prevention, and
working with families.
(IV) Professional writing, including documentation of services,
treatment plans, and progress notes.
(V) How to connect people with resources that deliver the quality
of services and support needed in the community.
(v) Educational institutions are encouraged to design the
practicum required by this subparagraph to include marriage and
family therapy experience in low-income and multicultural mental
health settings.
(2) Instruction in all of the following:
(A) Diagnosis, assessment, prognosis, and treatment of mental
disorders, including severe mental disorders, evidence-based
practices, psychological testing, psychopharmacology, and promising
mental health practices that are evaluated in peer reviewed
literature.
(B) Developmental issues from infancy to old age, including
instruction in all of the following areas:
(i) The effects of developmental issues on individuals, couples,
and family relationships.
(ii) The psychological, psychotherapeutic, and health implications
of developmental issues and their effects.
(iii) Aging and its biological, social, cognitive, and
psychological aspects.
(iv) A variety of cultural understandings of human development.
(v) The understanding of human behavior within the social context
of socioeconomic status and other contextual issues affecting social
position.
(vi) The understanding of human behavior within the social context
of a representative variety of the cultures found within California.
(vii) The understanding of the impact that personal and social
insecurity, social stress, low educational levels, inadequate
housing, and malnutrition have on human development.
(C) The broad range of matters and life events that may arise
within marriage and family relationships and within a variety of
California cultures, including instruction in all of the following:
(i) Child abuse assessment and reporting.
(ii) Spousal or partner abuse assessment, detection, intervention
strategies, and same-gender abuse dynamics.
(iii) Cultural factors relevant to abuse of partners and family
members.
(iv) Childbirth, child rearing, parenting, and stepparenting.
(v) Marriage, divorce, and blended families.
(vi) Long-term care.
(vii) End of life and grief.
(viii) Poverty and deprivation.
(ix) Financial and social stress.
(x) Effects of trauma.
(xi) The psychological, psychotherapeutic, community, and health
implications of the matters and life events described in clauses (i)
to (x), inclusive.
(D) Cultural competency and sensitivity, including a familiarity
with the racial, cultural, linguistic, and ethnic backgrounds of
persons living in California.
(E) Multicultural development and cross-cultural interaction,
including experiences of race, ethnicity, class, spirituality, sexual
orientation, gender, and disability, and their incorporation into
the psychotherapeutic process.
(F) An understanding of the effects of socioeconomic status
on treatment and available resources.
(G) An understanding of resilience, including the personal and
community qualities that enable persons to cope with adversity,
trauma, tragedy, threats, or other stresses.
(H) Human sexuality, including the study of physiological,
psychological, and social cultural variables associated with sexual
behavior, gender identity, and the assessment and treatment of
psychosexual dysfunction.
(I) Substance abuse, cooccurring disorders, and addiction,
including, but not limited to, instruction in all of the following:
(i) The definition of substance use disorders, cooccurring
disorders, and addiction. For purposes of this subparagraph,
"cooccurring disorders" means a mental illness and substance abuse
diagnosis occurring simultaneously in an individual.
(ii) Medical aspects of substance use disorders and cooccurring
disorders.
(iii) The effects of psychoactive drug use.
(iv) Current theories of the etiology of substance abuse and
addiction.
(v) The role of persons and systems that support or compound
substance abuse and addiction.
(vi) Major approaches to identification, evaluation, and treatment
of substance use disorders, cooccurring disorders, and addiction,
including, but not limited to, best practices.
(vii) Legal aspects of substance abuse.
(viii) Populations at risk with regard to substance use disorders
and cooccurring disorders.
(ix) Community resources offering screening, assessment,
treatment, and followup for the affected person and family.
(x) Recognition of substance use disorders, cooccurring disorders,
and addiction, and appropriate referral.
(xi) The prevention of substance use disorders and addiction.
(J) California law and professional ethics for marriage and family
therapists, including instruction in all of the following areas of
study:
(i) Contemporary professional ethics and statutory, regulatory,
and decisional laws that delineate the scope of practice of marriage
and family therapy.
(ii) The therapeutic, clinical, and practical considerations
involved in the legal and ethical practice of marriage and family
therapy, including, but not limited to, family law.
(iii) The current legal patterns and trends in the mental health
professions.
(iv) The psychotherapist-patient privilege, confidentiality, the
patient dangerous to self or others, and the treatment of minors with
and without parental consent.
(v) A recognition and exploration of the relationship between a
practitioner's sense of self and human values and his or her
professional behavior and ethics.
(vi) Differences in legal and ethical standards for different
types of work settings.
(vii) Licensing law and licensing process.
(e) The degree described in subdivision (b) shall, in addition to
meeting the requirements of subdivision (d), include instruction in
case management, systems of care for the severely mentally ill,
public and private services and supports available for the severely
mentally ill, community resources for persons with mental illness and
for victims of abuse, disaster and trauma response, advocacy for the
severely mentally ill, and collaborative treatment. This instruction
may be provided either in credit level coursework or through
extension programs offered by the degree-granting institution.
(f) The changes made to law by this section are intended to
improve the educational qualifications for licensure in order to
better prepare future licentiates for practice, and are not intended
to expand or restrict the scope of practice for marriage and family
therapists.
SEC. 12. Section 4980.37 of the Business and Professions Code is
amended to read:
4980.37. (a) This section applies to applicants for licensure or
registration who begin graduate study before August 1, 2012, and
complete that study on or before December 31, 2018. Those applicants
may alternatively qualify under paragraph (2) of subdivision (a) of
Section 4980.36.
(b) To qualify for a license or registration, applicants shall
possess a doctor's or master's degree in marriage, family, and child
counseling, marital and family therapy, psychology, clinical
psychology, counseling psychology, or counseling with an emphasis in
either marriage, family, and child counseling or marriage and family
therapy, obtained from a school, college, or university accredited by
a regional accrediting agency recognized by the United States
Department of Education or approved by the Bureau for Private
Postsecondary Education. The board has the authority to make the
final determination as to whether a degree meets all requirements,
including, but not limited to, course requirements, regardless of
accreditation or approval. In order to qualify for licensure pursuant
to this section, a doctor's or master's degree program shall be a
single, integrated program primarily designed to train marriage and
family therapists and shall contain no less than 48 semester or 72
quarter units of instruction. This instruction shall include no less
than 12 semester units or 18 quarter units of coursework in the areas
of marriage, family, and child counseling, and marital and family
systems approaches to treatment. The coursework shall include all of
the following areas:
(1) The salient theories of a variety of psychotherapeutic
orientations directly related to marriage and family therapy, and
marital and family systems approaches to treatment.
(2) Theories of marriage and family therapy and the manner in
which those theories may be utilized in order to intervene
therapeutically with couples, families, adults, children, and groups.
(3) Developmental issues and life events from infancy to old age
and their effect on individuals, couples, and family relationships.
This may include coursework that focuses on specific family life
events and the psychological, psychotherapeutic, and health
implications that arise within couples and families, including, but
not limited to, childbirth, child rearing, childhood, adolescence,
adulthood, marriage, divorce, blended families, stepparenting, and
geropsychology.
(4) A variety of approaches to the treatment of children. The
board shall, by regulation, set forth the subjects of instruction
required in this subdivision.
(c) (1) In addition to the 12 semester or 18 quarter units of
coursework specified in subdivision (b), the doctor's or master's
degree program shall contain not less than six semester or nine
quarter units of supervised practicum in applied psychotherapeutic
technique, assessments, diagnosis, prognosis, and treatment of
premarital, couple, family, and child relationships, including
dysfunctions, healthy functioning, health promotion, and illness
prevention, in a supervised clinical placement that provides
supervised fieldwork experience within the scope of practice of a
marriage and family therapist.
(2) For applicants who enrolled in a degree program on or after
January 1, 1995, the practicum shall include a minimum of 150 hours
of face-to-face experience counseling individuals, couples, families,
or groups.
(3) The practicum hours shall be considered as part of the 48
semester or 72 quarter unit requirement.
(d) As an alternative to meeting the qualifications specified in
subdivision (b), the board shall accept as equivalent degrees those
master's or doctor's degrees granted by educational institutions
whose degree program is approved by the Commission on Accreditation
for Marriage and Family Therapy Education.
(e) In order to provide an integrated course of study and
appropriate professional training, while allowing for innovation and
individuality in the education of marriage and family therapists, a
degree program that meets the educational qualifications for
licensure or registration under this section shall do all of the
following:
(1) Provide an integrated course of study that trains students
generally in the diagnosis, assessment, prognosis, and treatment of
mental disorders.
(2) Prepare students to be familiar with the broad range of
matters that may arise within marriage and family relationships.
(3) Train students specifically in the application of marriage and
family relationship counseling principles and methods.
(4) Encourage students to develop those personal qualities that
are intimately related to the counseling situation such as integrity,
sensitivity, flexibility, insight, compassion, and personal
presence.
(5) Teach students a variety of effective psychotherapeutic
techniques and modalities that may be utilized to improve, restore,
or maintain healthy individual, couple, and family relationships.
(6) Permit an emphasis or specialization that may address any one
or more of the unique and complex array of human problems, symptoms,
and needs of Californians served by marriage and family therapists.
(7) Prepare students to be familiar with cross-cultural mores and
values, including a familiarity with the wide range of racial and
ethnic backgrounds common among California's population, including,
but not limited to, Blacks, Hispanics, Asians, and Native Americans.
(f) Educational institutions are encouraged to design the
practicum required by this section to include marriage and family
therapy experience in low-income and multicultural mental health
settings.
(g) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2019, deletes or extends that
date.
SEC. 13. Section 4980.40 of the Business and Professions Code is
amended to read:
4980.40. To qualify for a license, an applicant shall have all
the following qualifications:
(a) Applicants shall possess a doctor's or master's degree in
marriage, family, and child counseling, marital and family therapy,
psychology, clinical psychology, counseling psychology, or counseling
with an emphasis in either marriage, family, and child counseling or
marriage and family therapy, obtained from a school, college, or
university accredited by a regional accrediting agency recognized by
the United States Department of Education, or approved by the Bureau
for Private Postsecondary Education. The board has the authority to
make the final determination as to whether a degree meets all
requirements, including, but not limited to, course requirements,
regardless of accreditation or approval. In order to qualify for
licensure pursuant to this subdivision, a doctor's or master's degree
program shall be a single, integrated program primarily designed to
train marriage and family therapists and shall contain no less than
48 semester or 72 quarter units of instruction. The instruction shall
include no less than 12 semester units or 18 quarter units of
coursework in the areas of marriage, family, and child counseling,
and marital and family systems approaches to treatment.
The coursework shall include all of the following areas:
(1) The salient theories of a variety of psychotherapeutic
orientations directly related to marriage and family therapy, and
marital and family systems approaches to treatment.
(2) Theories of marriage and family therapy and how they can be
utilized in order to intervene therapeutically with couples,
families, adults, children, and groups.
(3) Developmental issues and life events from infancy to old age
and their effect upon individuals, couples, and family relationships.
This may include coursework that focuses on specific family life
events and the psychological, psychotherapeutic, and health
implications that arise within couples and families, including, but
not limited to, childbirth, child rearing, childhood, adolescence,
adulthood, marriage, divorce, blended families, stepparenting, and
geropsychology.
(4) A variety of approaches to the treatment of children.
The board shall, by regulation, set forth the subjects of
instruction required in this subdivision.
(b) (1) In addition to the 12 semester or 18 quarter units of
coursework specified above, the doctor's or master's degree program
shall contain not less than six semester or nine quarter units of
supervised practicum in applied psychotherapeutic techniques,
assessment, diagnosis, prognosis, and treatment of premarital,
couple, family, and child relationships, including dysfunctions,
healthy functioning, health promotion, and illness prevention, in a
supervised clinical placement that provides supervised fieldwork
experience within the scope of practice of a marriage and family
therapist.
(2) For applicants who enrolled in a degree program on or after
January 1, 1995, the practicum shall include a minimum of 150 hours
of face-to-face experience counseling individuals, couples, families,
or groups.
(3) The practicum hours shall be considered as part of the 48
semester or 72 quarter unit requirement.
(c) As an alternative to meeting the qualifications specified in
subdivision (a), the board shall accept as equivalent degrees, those
master's or doctor's degrees granted by educational institutions
whose degree program is approved by the Commission on Accreditation
for Marriage and Family Therapy Education.
(d) All applicants shall, in addition, complete the coursework or
training specified in Section 4980.41.
(e) All applicants shall be at least 18 years of age.
(f) All applicants shall have at least two years of experience
that meet the requirements of Section 4980.43.
(g) The applicant shall pass a board administered written or oral
examination or both types of examinations, except that an applicant
who passed a written examination and who has not taken and passed an
oral examination shall instead be required to take and pass a
clinical vignette written examination.
(h) The applicant shall not have committed acts or crimes
constituting grounds for denial of licensure under Section 480. The
board shall not issue a registration or license to any person who has
been convicted of a crime in this or another state or in a territory
of the United States that involves sexual abuse of children or who
is required to register pursuant to Section 290 of the Penal Code or
the equivalent in another state or territory.
(i) An applicant for licensure trained in an educational
institution outside the United States shall demonstrate to the
satisfaction of the board that he or she possesses a qualifying
degree that is equivalent to a degree earned from a school, college,
or university accredited by the Western Association of Schools and
Colleges, or approved by the Bureau of Private Postsecondary
Education. These applicants shall provide the board with a
comprehensive evaluation of the degree performed by a foreign
credential evaluation service that is a member of the National
Association of Credential Evaluation Services (NACES), and shall
provide any other documentation the board deems necessary.
SEC. 14. Section 7313 of the Business and Professions Code is
amended to read:
7313. (a) (1) To ensure compliance with the laws and regulations
of this chapter, the board's executive officer and authorized
representatives shall, except as provided by Section 159.5, have
access to, and shall inspect, any establishment or mobile unit during
business hours or at any time in which barbering, cosmetology, or
electrolysis are being performed. It is the intent of the Legislature
that inspections be conducted on Saturdays and Sundays as well as
weekdays, if collective bargaining agreements and civil service
provisions permit.
(2) The board shall maintain a program of random and targeted
inspections of establishments to ensure compliance with applicable
laws relating to the public health and safety and the conduct and
operation of establishments. The board or its authorized
representatives shall inspect establishments to reasonably determine
compliance levels and to identify market conditions that require
targeted enforcement. The board shall not reduce the number of
employees assigned to perform random inspections, targeted
inspections, and investigations relating to field operations below
the level funded by the annual Budget Act and described in supporting
budget documents, and shall not redirect funds or personnel years
allocated to those inspection and investigation purposes to other
purposes.
(b) To ensure compliance with health and safety requirements
adopted by the board, the executive officer and authorized
representatives shall, except as provided in Section 159.5, have
access to, and shall inspect the premises of, all schools in which
the practice of barbering, cosmetology, or electrolysis is performed
on the public. Notices of violation shall be issued to schools for
violations of regulations governing conditions related to the health
and safety of patrons. Each notice shall specify the section violated
and a timespan within which the violation must be corrected. A copy
of the notice of violation shall be provided to the Bureau for
Private Postsecondary Education.
(c) With prior written authorization from the board or its
executive officer, any member of the board may enter and visit, in
his or her capacity as a board member, any establishment, during
business hours or at any time when barbering, cosmetology, or
electrolysis is being performed. The visitation by a board member
shall be for the purpose of conducting official board business, but
shall not be used as a basis for any licensing disciplinary action by
the board.
SEC. 15. Section 7362 of the Business and Professions Code is
amended to read:
7362. (a) A school approved by the board is one which is approved
by the Bureau for Private Postsecondary Education, or a public
school in this state, and provides a course of instruction approved
by the board.
(b) The board shall determine by regulation the required subjects
of instruction to be completed in all approved courses, including the
minimum hours of technical instruction and minimum number of
practical operations for each subject, and shall determine how much
training is required before a student may begin performing services
on paying patrons.
SEC. 16. Section 7395.1 of the Business and Professions Code is
amended to read:
7395.1. (a) A student who is enrolled in a school of cosmetology
approved by the Bureau for Private Postsecondary Education in a
course approved by the board may, upon completion of a minimum of 60
percent of the clock hours required for graduation in the course,
work as an unpaid extern in a cosmetology establishment participating
in the educational program of the school of cosmetology.
(b) A person working as an extern shall receive clock hour credit
toward graduation, but that credit shall not exceed eight hours per
week and shall not exceed 10 percent of the total clock hours
required for completion of the course.
(c) The externship program shall be conducted in cosmetology
establishments meeting all of the following criteria:
(1) The establishment is licensed by the board.
(2) The establishment has a minimum of four licensees working at
the establishment, including employees and owners or managers.
(3) All licensees at the establishment are in good standing with
the board.
(4) Licensees working at the establishment work for salaries or
commissions rather than on a space rental basis.
(5) No more than one extern shall work in an establishment for
every four licensees working in the establishment. No regularly
employed licensee shall be displaced or have his or her work hours
reduced or altered to accommodate the placement of an extern in an
establishment. Prior to placement of the extern, the establishment
shall agree in writing sent to the school and to all affected
licensees that no reduction or alteration of any licensee's current
work schedule shall occur. This shall not prevent a licensee from
voluntarily reducing or altering his or her work schedule.
(6) Externs shall wear conspicuous school identification at all
times while working in the establishment, and shall carry a school
laminated identification, that includes a picture, in a form approved
by the board.
(d) (1) A school participating in the externship program shall
provide the participating establishment and the extern with a
syllabus containing applicable information specified in Section 73880
of Title 5 of the California Code of Regulations. The extern, the
school, and the establishment shall agree to the terms of and sign
the syllabus prior to the extern beginning work at the establishment.
No less than 90 percent of the responsibilities and duties of the
extern shall consist of the acts included within the practice of
cosmetology as defined in Section 7316.
(2) The establishment shall consult with the assigning school
regarding the extern's progress during the unpaid externship. The
owner or manager of the establishment shall monitor and report on the
student's progress to the school on a regular basis, with assistance
from supervising licensees.
(3) A participating school shall assess the extern's learning
outcome from the externship program. The school shall maintain
accurate records of the extern's educational experience in the
externship program and records that indicate how the extern's
learning outcome translates into course credit.
(e) Participation in an externship program made available by a
school shall be voluntary, may be terminated by the student at any
time, and shall not be a prerequisite for graduation.
(f) The cosmetology establishment that chooses to utilize the
extern is liable for the extern's general liability insurance, as
well as cosmetology malpractice liability insurance, and shall
furnish proof to the participating school that the establishment is
covered by both forms of liability insurance and that the extern is
covered under that insurance.
(g) (1) It is the purpose of the externship program authorized by
this section to provide students with skills, knowledge, and
attitudes necessary to acquire employment in the field for which they
are being trained, and to extend formalized classroom instruction.
(2) Instruction shall be based on skills, knowledge, attitudes,
and performance levels in the area of cosmetology for which the
instruction is conducted.
(3) An extern may perform only acts listed within the definition
of the practice of cosmetology as provided in Section 7316, if a
licensee directly supervises those acts, except that an extern may
not use or apply chemical treatments unless the extern has received
appropriate training in application of those treatments from an
approved cosmetology school. An extern may work on a paying client
only in an assisting capacity and only with the direct and immediate
supervision of a licensee.
(4) The extern shall not perform any work in a manner that would
violate law.
SEC. 17. Section 7407 of the Business and Professions Code is
amended to read:
7407. The board shall establish by regulation a schedule of
administrative fines for violations of this chapter. All moneys
collected under this section shall be deposited in the board's
contingent fund.
The schedule shall indicate for each type of violation whether, in
the board's discretion, the violation can be corrected. The board
shall review and revise the schedule of administrative fines for
violations by January 1, 2005. The board shall ensure that it and the
Bureau for Private Postsecondary Education do not issue citations
for the same violation.
SEC. 18. Section 8027 of the Business and Professions Code is
amended to read:
8027. (a) As used in this section, "school" means a court
reporter training program or an institution that provides a course of
instruction approved by the board and the Bureau for Private
Postsecondary Education, is a public school in this state, or is
accredited by the Western Association of Schools and Colleges.
(b) A court reporting school shall be primarily organized to train
students for the practice of shorthand reporting, as defined in
Sections 8016 and 8017. Its educational program shall be on the
postsecondary or collegiate level. It shall be legally organized and
authorized to conduct its program under all applicable laws of the
state, and shall conform to and offer all components of the minimum
prescribed course of study established by the board. Its records
shall be kept and shall be maintained in a manner to render them safe
from theft, fire, or other loss. The records shall indicate positive
daily and clock-hour attendance of each student for all classes,
apprenticeship and graduation reports, high school transcripts or the
equivalent or self-certification of high school graduation or the
equivalent, transcripts of other education, and student progress to
date, including all progress and counseling reports.
(c) Any school intending to offer a program in court reporting
shall notify the board within 30 days of the date on which it
provides notice to, or seeks approval from, the California Department
of Education, the Bureau for Private Postsecondary Education, the
Chancellor's Office of the California Community Colleges, or the
Western Association of Schools and Colleges, whichever is applicable.
The board shall review the proposed curriculum and provide the
school tentative approval, or notice of denial, within 60 days of
receipt of the notice. The school shall apply for provisional
recognition pursuant to subdivision (d) within no more than one year
from the date it begins offering court reporting classes.
(d) The board may grant provisional recognition to a new court
reporting school upon satisfactory evidence that it has met all of
the provisions of subdivision (b) and this subdivision. Recognition
may be granted by the board to a provisionally recognized school
after it has been in continuous operation for a period of no less
than three consecutive years from the date provisional recognition
was granted, during which period the school shall provide
satisfactory evidence that at least one person has successfully
completed the entire course of study established by the board and
complied with the provisions of Section 8020, and has been issued a
certificate to practice shorthand reporting as defined in Sections
8016 and 8017. The board may, for good cause shown, extend the
three-year provisional recognition period for not more than one year.
Failure to meet the provisions and terms of this section shall
require the board to deny recognition. Once granted, recognition may
be withdrawn by the board for failure to comply with all applicable
laws and regulations.
(e) Application for recognition of a court reporting school
shall be made upon a form prescribed by the board and shall be
accompanied by all evidence, statements, or documents requested. Each
branch, extension center, or off-campus facility requires separate
application.
(f) All recognized and provisionally recognized court reporting
schools shall notify the board of any change in school name, address,
telephone number, responsible court reporting program manager, owner
of private schools, and the effective date thereof, within 30 days
of the change. All of these notifications shall be made in writing.
(g) A school shall notify the board in writing immediately of the
discontinuance or pending discontinuance of its court reporting
program or any of the program's components. Within two years of the
date this notice is sent to the board, the school shall discontinue
its court reporting program in its entirety. The board may, for good
cause shown, grant not more than two one-year extensions of this
period to a school. If a student is to be enrolled after this notice
is sent to the board, a school shall disclose to the student the fact
of the discontinuance or pending discontinuance of its court
reporting program or any of its program components.
(h) The board shall maintain a roster of currently recognized and
provisionally recognized court reporting schools, including, but not
limited to, the name, address, telephone number, and the name of the
responsible court reporting program manager of each school.
(i) The board shall maintain statistics that display the number
and passing percentage of all first-time examinees, including, but
not limited to, those qualified by each recognized or provisionally
recognized school and those first-time examinees qualified by other
methods as defined in Section 8020.
(j) Inspections and investigations shall be conducted by the board
as necessary to carry out this section, including, but not limited
to, unannounced site visits.
(k) All recognized and provisionally recognized schools shall
print in their school or course catalog the name, address, and
telephone number of the board. At a minimum, the information shall be
in 8-point bold type and include the following statement:
"IN ORDER FOR A PERSON TO QUALIFY FROM A SCHOOL TO TAKE THE STATE
LICENSING EXAMINATION, THE PERSON SHALL COMPLETE A PROGRAM AT A
RECOGNIZED SCHOOL. FOR INFORMATION CONCERNING THE MINIMUM
REQUIREMENTS THAT A COURT REPORTING PROGRAM MUST MEET IN ORDER TO BE
RECOGNIZED, CONTACT: THE COURT REPORTERS BOARD OF CALIFORNIA;
(ADDRESS); (TELEPHONE NUMBER)."
() Each court reporting school shall file with the board, not
later than June 30 of each year, a current school catalog that shows
all course offerings and staff, and for private schools, the owner,
except that where there have been no changes to the catalog within
the previous year, no catalog need be sent. In addition, each school
shall also file with the board a statement certifying whether the
school is in compliance with all statutes and the rules and
regulations of the board, signed by the responsible court reporting
program manager.
(m) A school offering court reporting may not make any written or
verbal claims of employment opportunities or potential earnings
unless those claims are based on verified data and reflect current
employment conditions.
(n) If a school offers a course of instruction that exceeds the
board's minimum requirements, the school shall disclose orally and in
writing the board's minimum requirements and how the course of
instruction differs from those criteria. The school shall make this
disclosure before a prospective student executes an agreement
obligating that person to pay any money to the school for the course
of instruction. The school shall also make this disclosure to all
students enrolled on January 1, 2002.
(o) Private and public schools shall provide each prospective
student with all of the following and have the prospective student
sign a document that shall become part of that individual's permanent
record, acknowledging receipt of each item:
(1) A student consumer information brochure published by the
board.
(2) A list of the school's graduation requirements, including the
number of tests, the pass point of each test, the speed of each test,
and the type of test, such as jury charge or literary.
(3) A list of requirements to qualify for the state certified
shorthand reporter licensing examination, including the number of
tests, the pass point of each test, the speed of each test, and the
type of test, such as jury charge or literary, if different than
those requirements listed in paragraph (2).
(4) A copy of the school's board-approved benchmarks for
satisfactory progress as identified in subdivision (u).
(5) A report showing the number of students from the school who
qualified for each of the certified shorthand reporter licensing
examinations within the preceding two years, the number of those
students that passed each examination, the time, as of the date of
qualification, that each student was enrolled in court reporting
school, and the placement rate for all students that passed each
examination.
(6) On and after January 1, 2005, the school shall also provide to
prospective students the number of hours each currently enrolled
student who has qualified to take the next licensing test, exclusive
of transfer students, has attended court reporting classes.
(p) All enrolled students shall have the information in
subdivisions (n) and (o) on file no later than June 30, 2005.
(q) Public schools shall provide the information in subdivisions
(n) and (o) to each new student the first day he or she attends
theory or machine speed class, if it was not provided previously.
(r) Each enrolled student shall be provided written notification
of any change in qualification or graduation requirements that is
being implemented due to the requirements of any one of the school's
oversight agencies. This notice shall be provided to each affected
student at least 30 days before the effective date of the change and
shall state the new requirement and the name, address, and telephone
number of the agency that is requiring it of the school. Each student
shall initial and date a document acknowledging receipt of that
information and that document, or a copy thereof, shall be made part
of the student's permanent file.
(s) Schools shall make available a comprehensive final examination
in each academic subject to any student desiring to challenge an
academic class in order to obtain credit towards certification for
the state licensing examination. The points required to pass a
challenge examination shall not be higher than the minimum points
required of other students completing the academic class.
(t) An individual serving as a teacher, instructor, or reader
shall meet the qualifications specified by regulation for his or her
position.
(u) Each school shall provide a substitute teacher or instructor
for any class for which the teacher or instructor is absent for two
consecutive days or more.
(v) The board has the authority to approve or disapprove
benchmarks for satisfactory progress which each school shall develop
for its court reporting program. Schools shall use only
board-approved benchmarks to comply with the provisions of paragraph
(4) of subdivision (o) and subdivision (u).
(w) Each school shall counsel each student a minimum of one time
within each 12-month period to identify the level of attendance and
progress, and the prognosis for completing the requirements to become
eligible to sit for the state licensing examination. If the student
has not progressed in accordance with the board-approved benchmarks
for that school, the student shall be counseled a minimum of one
additional time within that same 12-month period.
(x) The school shall provide to the board, for each student
qualifying through the school as eligible to sit for the state
licensing examination, the number of hours the student attended court
reporting classes, both academic and machine speed classes,
including theory.
(y) The pass rate of first-time exam takers for each school
offering court reporting shall meet or exceed the average pass rate
of all first-time test takers for a majority of examinations given
for the preceding three years. Failure to do so shall require the
board to conduct a review of the program. In addition, the board may
place the school on probation and may withdraw recognition if the
school continues to place below the above described standard on the
two exams that follow the three-year period.
(z) A school shall not require more than one 10-minute qualifying
examination, as defined in the regulations of the board, for a
student to be eligible to sit for the state certification
examination.
(aa) A school shall provide the board the actual number of hours
of attendance for each applicant the school qualifies for the state
licensing examination.
(ab) The board shall, by December 1, 2001, do the following by
regulation as necessary:
(1) Establish the format that shall be used by schools to report
tracking of all attendance hours and actual timeframes for completed
coursework.
(2) Require schools to provide a minimum of 10 hours of live
dictation class each school week for every full-time student.
(3) Require schools to provide students with the opportunity to
read back from their stenographic notes a minimum of one time each
day to his or her instructor.
(4) Require schools to provide students with the opportunity to
practice with a school-approved speed-building tape, or other
assigned material, a minimum of one hour per day after school hours
as a homework assignment and provide the notes from this tape to
their instructor the following day for review.
(5) Develop standardization of policies on the use and
administration of qualifier examinations by schools.
(6) Define qualifier exam as follows: the qualifier exam shall
consist of 4-voice testimony of 10-minute duration at 200 wpm, graded
at 97.5 percent accuracy, and in accordance with the guidelines
followed by the board. Schools shall be required to date and number
each qualifier and announce the date and number to the students at
the time of administering the qualifier. All qualifiers shall
indicate the actual dictation time of the test and the school shall
catalog and maintain the qualifier for a period of not less than
three years for the purpose of inspection by the board.
(7) Require schools to develop a program to provide students with
the opportunity to interact with professional court reporters to
provide skill support, mentoring, or counseling which they can
document at least quarterly.
(8) Define qualifications and educational requirements required of
instructors and readers that read test material and qualifiers.
(ac) The board shall adopt regulations to implement the
requirements of this section not later than September 1, 2002.
(ad) The board may recover costs for any additional expenses
incurred under the enactment amending this section in the 2001-02
Regular Session of the Legislature pursuant to its fee authority in
Section 8031.
SEC. 19. Chapter 8 (commencing with Section 94800) is added to
Part 59 of Division 10 of Title 3 of the Education Code, to read:
CHAPTER 8. PRIVATE POSTSECONDARY INSTITUTIONS
Article 1. General Provisions
94800. This chapter shall be known, and may be cited, as the
California Private Postsecondary Education Act of 2008.
94801. Whenever a reference is made to the Bureau for Private
Postsecondary and Vocational Education, by the provisions of any
statute or regulation, that reference shall be construed as referring
to the Bureau for Private Postsecondary Education. Whenever a
reference is made to the Council for Private Postsecondary Education
and Vocation Education, by the provisions of any statute of
regulation, that reference shall be construed as referring to the
Bureau for Private Postsecondary Education.
94801.1. The Legislature finds and declares the following:
(a) In 2007, there were more than 400,000 Californians attending
more than 1,500 private postsecondary schools in California. Many of
these students are low-income students who incur up to tens of
thousands of dollars in long-term debt in an effort to learn a trade
and become employed in order to financially provide for themselves
and their families.
(b) Private postsecondary schools complement the public education
system and help develop a trained workforce to meet the demands of
California businesses and the economy.
(c) Numerous reports and studies have concluded that California
law and regulatory oversight failed to enforce
student protections or provide effective oversight of private
postsecondary schools. The law and regulatory oversight were
nearly allowed to expire, and only reinstated by urgency legislation
in 1997, allowed to expire on June 30, 2007, with some
skeletal functions continued by urgency legislation and allowed to
expire on June 30, 2008, thereby creating an urgent need to
reform the law and create a new regulatory structure to take effect
as soon as possible.
(d) This chapter intends to provide a body of law that ensures all
of the following:
(1) Minimum educational quality standards and opportunities for
success for California students attending private postsecondary
schools.
(2) Meaningful student protections through essential avenues of
recourse for students.
(3) A regulatory structure that provides for an appropriate level
of oversight.
(4) A regulatory governance structure that ensures that all
stakeholders have a voice and are heard in policymaking by the new
bureau created by this chapter.
(5) A regulatory governance structure that provides for
accountability and oversight by the Legislature through program
monitoring and periodic reports.
(e) It is widely believed that up to 20 percent of the private
postsecondary education provided in California in 2007 is Internet
based. Therefore, this chapter calls for a thorough review of
Internet-based private postsecondary education. This review is
intended to serve as a basis for future policymakers to address any
deficiencies in law in regulating Internet-based private
postsecondary education.
(f) 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. A failure to act in a timely manner allowed expiration
of the regulatory structure on June 30, 2007. This history should
never be repeated.
94801.2. (a) The Legislature finds that the Accrediting
Commission for Senior Colleges and Universities, Western Association
of Schools and Colleges (ACSCU) and the Accrediting Commission for
Community and Junior Colleges and Universities, Western Association
of Schools and Colleges (ACCJC) (collectively WASC) serve as unique
and reliable authorities for establishing and maintaining standards
for public and private institutions providing postsecondary education
in California for the following reasons:
(1) WASC has acted as the regional accrediting association for
colleges and universities based in California for more than 40 years.
This includes all campuses of the University of California,
California State University, and California Community Colleges. Its
effectiveness has been affirmed in numerous past external studies.
(2) For private institutions, ACSCU and ACCJC require, as one
condition for eligibility for accreditation, that an applicant
institution first apply to and obtain approval from the Bureau of
Private Postsecondary Education, thereby assuring Californians that
all applicant institutions have been found by the bureau to meet the
state's licensure standards prior to being considered for
accreditation.
(3) A majority of the commission members on the ACSCU and ACCJC
are residents of California and represent a diversity of backgrounds
and interests.
(4) WASC does not discriminate based on location or geography.
ACSCU and ACCJC policies and practices permit an institution that is
accredited by a different regional accrediting association to apply
for accreditation from ACSCU and ACCJC if that institution maintains
sufficient presence in California. Institutions accredited by a
different regional accrediting association have been granted
accreditation by WASC.
(5) Through a full faith and credit agreement with other regional
accredited agencies, WASC has a process whereby institutions
accredited by other regional accredited
accrediting agencies may also be accredited by WASC in an
expeditious manner. This agreement allows institutions that are
accredited by other regional accredited
accrediting agencies to be accredited by WASC in a matter of
only a few months, compared to a process that may normally take
several years.
(6) ACCJC provides periodic on campus visits to all WASC
accredited institutions and for each California campus.
(7) ACSCU and ACCJC regularly meet in California, publish the time
and place of meetings in advance, and permit and encourage
interested Californians to attend the public portions of meetings and
comment on policies under consideration by their respective
commissions.
(8) WASC has demonstrated transparency and accountability for
Californians, on-campus oversight, and student protection for
Californians.
(9) In 2007, the United State District Court, Central District of
California, issued a judgment in Saro Daghlian vs. Devry
DeVry University, Inc., which is currently on
appeal before the United States Court of Appeals for the Ninth
Circuit. In this case, the district court found a portion of the 1989
Postsecondary and Vocational Education Reform Act (Reform Act) to
impermissibly discriminate against out-of-state regionally accredited
educational institutions. Conversely, this chapter is based
on These legislative findings pertinent to the
regional accreditation process that were not
available to the district court at the time of its judgment.
The Additionally, the scope, requirements, and
approval process of this chapter are distinct from that of the Reform
Act. Consequently, the Legislature finds and declares that the
contents of the chapter will legislative
findings not previously available to the court and the contents of
the chapter will both effectively distinguish itself
themselves from the Reform Act and preclude the
application of the district court's reasoning in Saro Daghlian vs.
Devry DeVry University, Inc. to this
act.
(b) Based on the above findings, the Legislature finds that there
are compelling reasons to grant WASC accredited institutions a
complete exemption from the requirements of this chapter.
94801.3. The Bureau for Private Postsecondary Education is
subject to periodic and ongoing review by the Legislature.
94801.4. It is the intent and purpose of this chapter to protect
students, reputable institutions, the public, and the economy of the
state; ensure appropriate operational standards; ensure institutional
stability; ensure minimum standards for educational quality,
including through accountability for required
uniform disclosures of program completion and student
placement in occupations or job titles to which training is
represented to lead ; prohibit various and
salaries paid graduates in those occupations or job
titles; prohibit misrepresentations, including
misrepresentations related to the quality of education, the
availability and quality of equipment, software, and materials, the
transferability of credits, and employment availability and range of
salary opportunities; require full disclosure of all material facts
regarding the course or program of instruction; and protect the
citizens of California against fraud, misrepresentation, or other
practices that may lead to loss of funds paid for educational costs,
whether financed through personal resources, state and federal
student financial aid, or private loans. It is also the intent and
purpose of this chapter to ensure that the public has
information needed to assess whether the cost to taxpayers of
government loans and grants for instruction is commensurate with the
benefits obtained by students and flowing to the state's economy.
94801.5. There is a Bureau for Private Postsecondary Education in
the Department of Consumer Affairs. The bureau has the
responsibility for approving and regulating private postsecondary
educational institutions and programs.
94801.6. (a) Protection of the public shall be the highest
priority for the bureau in exercising its approval, regulatory, and
disciplinary functions. The bureau shall have all of the following
objectives:
(1) Protection of the public from fraud and misrepresentation and
from illegal, unscrupulous, or unethical practices.
(2) To encourage students to make informed decisions.
(3) The development of a strong, vigorous, and widely respected
sector of private postsecondary education that protects the interests
of students and the public and serves the interests of the economy
of California.
(b) Whenever the protection of the public is inconsistent with
other interests sought to be promoted, the protection of the public
shall be paramount.
94801.7. The proceedings under this chapter shall be conducted by
the bureau in accordance with the provisions of this chapter or
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code at the bureau's option. To the extent
of any conflict between any of the provisions of this chapter and
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, this chapter shall prevail.
94801.8. Regulations Except as otherwise
provided in this chapter, regulations required by and necessary
to fully implement this chapter shall be adopted by July 1,
2009 January 1, 2010 , and shall be amended
periodically as needed by the bureau to fully implement the intent of
this article.
Article 2. Transition Provisions
94802. (a) An institution , program, or
course of study that had a valid approval to operate on June
30, 2007, issued by the Bureau for Private Postsecondary and
Vocational Education pursuant to Chapter 7 (commencing with Section
94700) of Part 59 of Division 10 of Title 3, as it existed on June
30, 2007, which was not revoked, shall maintain that approval under
this chapter. For the purposes of this chapter, the approval shall be
valid until two calendar years after the expiration date of the
approval, as it existed on June 30, 2007.
(b) Applications for reapproval that had been pending action
before the Bureau for Private Postsecondary and Vocational Education
on June 30, 2007, shall be deemed processed as follows:
(1) Applications received prior to January 1, 2006, shall be
granted a reapproval until 2009 to coincide with the anniversary date
of the current approval.
(2) Applications received after January 1, 2006, shall be granted
a reapproval until 2010 to coincide with the anniversary date of the
current approval.
(c) Students enrolling in institutions approved under subdivision
(b) shall be notified during the enrollment process that the
institution's application for reapproval to operate has not been
fully reviewed by the bureau.
94802.5. This chapter does not affect, pending litigation or
rights under former Chapter 7 (commencing with Section 94700) of Part
59 of Division 10 of Title 3, which became inoperative on June 30,
2007.
(d) With respect to any deadline applicable to the approval,
renewal of approval, or conditional approval of an institution or
program, no time shall be deemed to have elapsed between July 1,
2007, and January 1, 2009, inclusive.
94803. Notwithstanding any other provision of law:
(a) Each unresolved matter submitted to the Bureau for
Private Postsecondary and Vocational Education prior to July 1, 2007,
shall be deemed to remain pending before the bureau 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, through June 30, 2008 January 1,
2009 , inclusive.
(1) For the purposes of this subdivision, "matter" includes, but
is not necessarily limited to, an appeal, a complaint, a
lawsuit, an action, 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. 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.
(b) Student complaints received from July 1, 2007, through June
30, 2008, inclusive, continue to be duly recorded and investigated to
the extent possible so that no Californian is harmed by the delay in
the provision of full services.
(c) Any institution, program, or course of study that is approved
by the bureau or authorized pursuant to Section 94905, 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 July 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 June 30, 2008, inclusive.
(d) For any claims that a student had against a covered
institution, the period from June 30, 2007, to January 1, 2009,
(b) Student complaints between from July 1, 2007, to December 31,
2008, inclusive, shall continue to be duly recorded and investigated
and shall be determined based on law that was in effect at the time
the violations or events complained of occurred.
(c) 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, Chapter 67
of the Statutes of 2007, or Chapter 635 of the Statutes of 2007, the
period from June 30, 2007, to January 1, 2009, inclusive, shall
be excluded in determining the deadline or the statute of limitation
for filing a lawsuit based on those claims
any claim with the bureau or a lawsuit based on any claim .
(e)
(d) All claims, except claims to the Student
Tuition Recovery Fund, and all complaints, 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.
94803.5. (a) Each regulation in Division 7.5 (commencing with
Section 70000) of Title 5 of the California Code of Regulations in
effect on June 30, 2007, shall be in full force and effect on and
after July 1, 2008. By July 1, 2009, the bureau shall
January 1, 2009. The bureau may amend Division
7.5 (commencing with Section 70000) of Title 5 of the California Code
of Regulations to amend or repeal any regulation that is
inconsistent with this chapter.
(b) The bureau may adopt emergency regulations, as necessary, to
allow for the immediate implementation of this chapter.
(c) Regulations promulgated pursuant to this chapter shall be
consistent with the director's, or his or her designee's, powers and
duties under Section 310 of the Business and Professions Code and
legislative intent under Section 301 of the Business and Professions
Code.
94804. The bureau shall succeed to any and all rights and claims
of the former Bureau for Private Postsecondary and Vocational
Education that may have been asserted in a judicial or administrative
action pending on July 1, 2007, and shall take any action reasonably
necessary to assert and realize those rights and claims in its own
name. The functions of the former Bureau for Private Postsecondary
and Vocational Education, and the responsibilities the former bureau
had for the administration of former Chapter 7 (commencing with
Section 94700) on June 30, 2007, and January 1, 2008, are transferred
to the new Bureau for Private Postsecondary Education, effective
July 1, 2008 January 1, 2009 , as
provided by this chapter. Notwithstanding any other provision of law,
Section 19050.9 of the Government Code shall apply regardless of the
date on which former Chapter 7 (commencing with Section 94700)
became inoperative or was repealed.
94805. The bureau shall have possession and control of all
records, papers, offices, equipment, supplies, or other property,
real or personal, held for the benefit or use by the former Bureau
for Private Postsecondary and Vocational Education in the performance
of the duties, powers, purposes, responsibilities, and jurisdictions
that are vested in the bureau.
94806. (a) The Private Postsecondary and Vocational Education
Administration Fund established by former Section 94932 of the
Education Code, and extended and reconfigured by Chapter 635 of the
Statutes of 2007, is continued in existence, and is renamed the
Private Postsecondary Education Administration Fund.
Students, including former students who paid into the fund prior to
July 1, 2007 shall have the right to recover from the fund under the
terms and conditions set forth in former Section 94944.
Fund.
(b) It is the intent of the Legislature that the Private
Postsecondary Education Administration Fund be administered, and that
fees be established and collected, in a manner that assures full and
effective implementation of this chapter.
94807. The Student Tuition Recovery Fund established by former
Section 94944 of the Education Code, and extended by
extended and reconfigured by Chapter 67 of the
Statutes of 2007, and continued in existence by Chapter 635 of
the Statutes of 2007, is further continued in existence.
94808. (a) Any Student Tuition Recovery Fund claims received by
the former Bureau for Private Postsecondary and Vocational Education
prior to July 1, 2007, that were not processed by the former Bureau
for Private Postsecondary and Vocational Education and were not paid
by the department between July 1, 2007, and June 30
December 31 , 2008, inclusive, shall be processed by the
bureau in accordance with this chapter based on the terms and
conditions set forth in former Section 94944 of the Education Code,
except that any payments of claims from the fund shall be
paid from the single Student Tuition Recovery Fund as continued in
Article 13 (commencing with Section 94923) .
(b) Any Student Tuition Recovery Fund claims received by the
department between July 1, 2007, and June 30
December 31 , 2008, inclusive, shall be processed by the bureau
in accordance with this chapter based on the terms and conditions
set forth in former Section 94944 of the Education Code..
Code, except that any payments on claims to the fund
shall be paid from the single Student Tuition Recovery Fund as
continued in Article 13 (commencing with Section 94923).
(c) Any Student Tuition Recovery Fund claims received by the
department after June 30, 2007, for actions that occurred prior to
July 1, 2007, or regarding courses of instruction which commenced
prior to July 1, 2007, shall be processed by the bureau in accordance
with this chapter and the terms and conditions set forth in former
Section 94944 of the Education Code.
(c) Student Tuition Recovery Fund claims filed with, and approved
by, the Bureau for Private Postsecondary and Vocational Education as
of June 30, 2007, if not already paid, shall be paid before any later
approved claims.
(d) The student's right to recovery from the Student Tuition
Recovery Fund or the Private Postsecondary Education
Administrative 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, whether or not a claim was filed
prior to July 1, 2007. part of tuition costs, even
though that law has become inoperative, been repealed or otherwise
expired, and whether or not a claim was filed prior to the law
becoming inoperative, repealed, or otherwise expired.
94809. (a) Approved institutions with applications on file,
excluding Student Tuition Recovery Fund and certificate of
authorization applications, that were pending with the former Bureau
for Private Postsecondary and Vocational Education as of July 1,
2007, may continue to operate.
(b) An institution that did not have a valid approval issued by,
94809. (a) An institution
that did not have a valid approval issued by, or an application
for approval pending with, the former Bureau for Private
Postsecondary and Vocational Education on June 30, 2007, that began
operations on or after July 1, 2007, may continue to operate through
December 31, 2008 2009 , but shall
comply with and is subject to this chapter, and shall submit an
application to the bureau pursuant to this chapter which shall
be treated in all respects as an initial application for approval
.
(c)
(b) Students enrolling in institutions approved under
subdivision (b) (a) shall be notified
during the enrollment process before entering into any
enrollment agreement that the institution's approval to operate
has not been reviewed by the bureau.
94809.5. (a) Notwithstanding any exemption from this chapter
under Article 3 (commencing with Section 94810) or
any other provision of law, the rights and obligations established
by the Private Postsecondary and Vocational Education Reform Act of
1989 on or before June 30, 2007 , as preserved by Chapter 67 of
the Statutes of 2007 and extended by Chapter 635 of the Statutes of
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 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 act on
or before June 30, 2007, may be ordered or maintained thereafter.
(b) The rights, obligations, claims, causes of action, and
remedies described in subdivision (a) shall remain subject to the
provisions of the Private Postsecondary and Vocational Education
Reform Act of 1989 in effect on or before June 30, 2007,
notwithstanding the inoperative status or repeal of the Private
Postsecondary and Vocational Education Reform Act of 1989 on or after
July 1, 2007 or the repeal of Sections 1 to 8, inclusive, of
Chapter 67 of the Statutes of 2007 by Chapter 635 of the Statutes of
2007 on or after July 1, 2008 .
(c) This article shall apply retroactively from June 30, 2008.
Article 3. Definitions
94810. Unless the context requires otherwise, the definitions set
forth in this article govern the construction of this chapter.
94811. "Ability-to-benefit student" means a student who does not
have a certificate of graduation from a school providing secondary
education, or a recognized equivalent of that certificate such as a
GED prior to completion of the course.
94812. "Academic year" means a period, including a minimum of 30
weeks of instructional time, in which a full-time student attending
an institution that measures educational program length in credit
hours completes 24 semester or trimester hours or 36 quarter hours,
or an institution that measures educational program length in clock
hours completes at least 900 clock hours.
94813. "Accredited" means an institution is recognized or
approved by an accrediting agency recognized by the United States
Department of Education.
94814. "Accrediting agency" means an agency recognized by the
United States Department of Education.
94815. "Annual report" means the report required to be filed
pursuant to Section 94883.6 94934 .
94816. "Applicant" means a person or entity that has submitted an
application for renewal or approval to operate on which the bureau
has not yet made a determination. An applicant shall not enroll
students or offer education without an approval to operate.
94817. "Approval to operate" means the authorization to offer to
the public and to provide postsecondary educational programs, as well
as the written document issued by the bureau to an institution
signifying its approval to operate.
94818. "Avocational education" means education offered
exclusively for the purpose of personal entertainment, pleasure, or
enjoyment.
94819. "Branch campus" means a site other than the main campus or
a satellite location.
94820. "Bureau" means the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs.
94820.2. "Cancellation period" means the initial period during
which a student may cancel and receive a refund under Section 94919.
94820.5. "Certified" means having passed an examination that
attests to the quality and level of knowledge by a qualified
certification authority or organization that is not affiliated with
an institution.
94821. "Change in business organization form" means a change of a
business organization's original form, including, for example, a
situation in which a sole proprietorship becomes a partnership or
corporation, or when a business organization becomes a nonprofit
public benefit corporation or forms a nonprofit public benefit
corporation as a subsidiary to provide the educational programs for
which the business organization has an approval to operate.
94822. "Change of location" means a move or relocation more than
10 miles from the site at which the institution offers instruction.
94823. "Change of ownership" means the acquisition by a person of
more than 50 percent of an interest in or stock of a parent company.
94823.5. "Class" or "course" means a subject, such as English or
mathematics that is taught as part of a program.
94824. "Class day" means a day a student is scheduled to attend
class session, or for students receiving instruction through distance
education, any calendar day except Saturday, Sunday, or any holiday
enumerated in Section 6700 of the Government Code.
94825. "Class session" means part of a class day that an
institution conducts instruction in a particular subject.
94825.5. "Clock hour" means 50 to 60, inclusive, minutes and is
used to measure the length of any program of study that does not lead
to a degree.
94826. "Commence operations" means an institution has begun to
provide educational programs.
94826.5. "Completion tracking period" means the two years before
the year in which the completion numbers and rates are reported and
disclosed.
94827. (a) "Continuing education" means instruction in subjects
that licensees are required to take solely for the purpose of
continued licensure, or to enhance their skills and knowledge within
their particular profession, occupation, trade, or career field.
(b) "Continuing education" does not include any of the following:
(1) A vocational program.
(2) A degree program.
(3) An educational service where any part of the charge for which
is paid from the proceeds of a loan or grant subject to a
governmental student financial aid program.
94827.5. "Credit hour" means the unit of measure by which
institutions measure its degree coursework. The number of credit
hours assigned to a course is defined by the number of hours per week
in class and preparation and the number of weeks in a term. One
credit hour is usually assigned for three hours of student work per
week or its equivalent. The three hours of student work per week
usually consists of a combination of one hour of lecture and two
hours of homework or three hours of laboratory. Semester and quarter
credit hours are based on at least a 15-week term or its equivalent.
A quarter credit hour is based on at least a 10-week term or its
equivalent.
94828. "Curriculum" means an organized set of courses or modules
of instruction that are prerequisites to the award of a degree or
diploma.
94828.5. "Custodian of records" means the person responsible for
maintaining records.
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 330 days if payment is due
less frequently.
94830. "Degree" means any type of degree or honorary degree or
title of any designation, mark, appellation, series of letters or
words including, but not necessarily limited to, associate, bachelor,
master, doctor, or fellow, that signifies, purports to constitute,
or is generally taken to signify, satisfactory completion of the
requirements of an academic, educational, technological, or
professional program of study beyond the secondary educational level,
or is an honorary title conferred for recognition of some
meritorious achievement.
94831. "Degree title" means the designated subject area of the
educational program that appears on the face of the document awarded
to a student.
94831.1. "Department" means the Department of Consumer Affairs.
94832. "Diploma" means a recognized educational credential, other
than a degree, awarded by an institution that signifies satisfactory
completion of the requirements of a postsecondary educational
program below the associate's level. A diploma is also known as a
certificate.
94833. "Director" means the Director of Consumer Affairs.
94834. "Distance learning" means lessons for study and completion
by a student at a location separate from an institution with a
physical location in California by home study, correspondence, or the
Internet or other electronic means, including the instruction
offered in combination with instruction at the institution.
94835. "Document of or record"
means any document required to be maintained by this chapter.
94836. "Educational materials" means textbooks, supplies,
implements, tools, machinery, computers, software, electronic
devices, or other goods related to any education, training, or
experience required for participation in an educational program.
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, skill, and experience leading
to the award of a recognized educational credential such as a degree
or diploma.
94838. "Educational program approval" means authorization by the
bureau, another government agency of this state, or a federal
government agency, to provide educational programs, and is an element
of an approval to operate.
94838.5. (a) "Employment" means a paid position in a job, job
title, vocation, occupation, or trade to which the program was
represented to lead, in which all of the following occurred:
(1) A student was employed in the paid position for at least 60
days within the employment tracking period, in an occupation for
which the student received his or her degree or diploma.
(2) The position requires education beyond the high school level.
(3) The routine work in the position requires utilization of the
skills and knowledge reasonably expected to be imparted in a program
culminating in the degree or certificate the student received.
(4) For occupations for which the state does not require passing
an examination, the period of employment begins
must begin within six months after a student completes a
program.
(5) For occupations for which the state requires passing an
examination, the period of employment begins within six months after
the announcement of the examination results for the first examination
available after a student completes a program.
(b) Employment includes self-employment.
94838.6. "Employment tracking period" means the
two-years two years before the year in which the
employment numbers and rates are reported and disclosed.
94839. "Enrollment" means the execution of an enrollment
agreement.
94840. "Enrollment agreement" means a written contract between a
student and institution or a person acting on
behalf of a student and an institution concerning an
educational program , including any contract for related
equipment .
94841. "Faculty" means the instructional staff of an institution,
whether these persons are employees or independent contractors. For
purposes of this chapter, "faculty," "instructor," "professor," and
"teacher" are synonymous.
94841.5. "Franchise institution" means a newly established
location of an existing approved institution offering postsecondary
education services leading to candidacy for psychology licensure that
bears the same name as the existing approved institution and about
which either of the following is true:
(a) The newly established location is owned or financially
controlled by an individual or individuals other than those who own
or financially control the existing approved institution.
(b) The newly established location is administered by an
individual or individuals other than those persons who administer the
existing approved institution.
94842. "Graduate" means an individual that has been awarded a
degree or diploma.
94843. "Institution" means any private postsecondary educational
institution, including its branch campuses and satellite locations.
94844. "Institutional charges" means charges for an educational
program paid directly to an institution.
94845. "Institution manager" means an individual who is a member
of an institution's management.
94846. "Instruction" means an institution's specific, formal
arrangements in which its faculty present a part of the curriculum.
94847. "License and examination preparation" means instruction
designed to assist students to prepare for an examination for
licensure, or offered for the sole purpose of providing continuing
education in subjects licensees are required to take as a condition
of continued licensure.
94848. "Licensure" includes any license, certificate, permit, or
similar credential that a person must hold to lawfully engage in a
profession, occupation, trade, or career field.
94849. "Main campus," "main location," or "main site" means the
institution's sole or primary teaching location. If an institution
operates at only one site, that site is its main campus, main
location, or main site.
94849.5. "Minor violation" means a deviation from the
requirements of this chapter, or regulations adopted pursuant to this
chapter, that, for the purposes of administrative actions by the
bureau only, in the determination of the bureau, has not or
reasonably will not result in harm to students and is not any of the
following:
(a) Committed knowingly, willfully, or intentionally.
(b) A repeated violation.
(c) A falsification of a document or record.
(d) A public offense.
94850. "Noninstitutional charges" means charges for an
educational program paid to an entity other than an institution that
are specifically required for participation in an educational
program.
94850.2. "Out-of-state institution" means an institution that has
its place of instruction or its principal location outside the
boundaries of this state, that offers or conducts programs on
premises maintained by the institution outside the boundaries of this
state, that provides distance learning materials from a location
outside the boundaries of this state, that evaluates completed lesson
materials or otherwise conducts its evaluation service from a
location outside the boundaries of this state, or that otherwise
offers or provides California students with programs through
activities engaged in or conducted outside the boundaries of this
state.
94851. "Owner" means a person who has a legal or equitable
interest in 10 percent or more of an institution's stocks or assets.
94852. "Ownership" means a legal or equitable interest in an
institution, including ownership of assets or stock.
94853. "Parent company" means a partnership, limited liability
company, or corporation that owns more than 50 percent of the stock
or interest in an institution.
94854. "Period of attendance" means a semester, quarter, or
trimester for educational programs measured in credit hours
programs that offer a degree, and the entire
educational program if measured in clock hours
for programs that offer a diploma .
94855. "Person" means a natural person or a business entity,
regardless of the form or organization.
94856. "Person in control" means a person who has sufficient
capacity, directly or indirectly, to direct or influence the
management, policies, or conduct of an institution so that the person
can cause or prevent a violation of this chapter. There is a
rebuttable presumption affecting the burden of proof that an owner,
director, or officer of an institution is a person in control.
94857. "Postsecondary education" means a formal institutional
educational program whose curriculum is designed primarily for
students who have completed or terminated their secondary education
or are beyond the compulsory age of secondary education, including
programs whose purpose is academic, vocational, or continuing
professional education.
94858. "Private postsecondary educational institution" means a
private entity with a physical presence in this state that offers
postsecondary education to the public for an institutional charge.
94858.1. "Program" or "program of instruction" means an
educational program of training, course, set of related courses, or
education for which a student enrolls.
94859. "Recruiter" means an employee of an institution whose
principal job responsibilities are the recruitment of students other
than on the institution's premises.
94860. "Recruitment" means actions taken by recruiters seeking
enrollment of students.
94861. "Reporting period" means the institution's fiscal year or
any yearly period designated by the bureau to be covered in the
institution's annual report.
94861.1. "Representative" means an employee, an agent, as defined
in Section 2295 of the Civil Code, or any person, who for
compensation, does either of the following:
(a) Solicits, promotes, advertises, or refers or recruits students
or prospective students for an institution.
(b) Is involved with enrollment, admissions, student attendance,
administration, financial aid, instruction, or job placement
assistance on behalf of an institution.
94861.2. "Admissions representative" means an employee or agent
of an institution or other person who, for compensation, does any of
the following:
(a) Tries to convince prospective students to enroll at the
institution.
(b) Enrolls students by getting them to fill out the required
documents, including the enrollment agreement, disclosures, and
financial aid documents.
(c) Provides prospective students information about the school.
(d) Answers student questions even after enrollment.
94862. "Satellite location" means an auxiliary classroom or
teaching site within 50 miles of the branch or main location at which
all of the following apply:
(a) Only educational services that are approved at the main
location shall be offered at the satellite.
(b) The permanent records of attendance or academic progress for
students taking courses or enrolled in a program at the satellite
shall be maintained at the main location.
(c) Advertisement of a satellite shall indicate that the satellite
is an auxiliary classroom or a teaching site.
94863. "Satisfactory academic progress" means the qualitative and
quantitative measures an institution uses to assess a student's
academic progress, including progress towards the
completion of his or her educational program
within 150 percent of the published length of the educational
program.
94863.1. "Scheduled to complete" means the date the institution
determined, when the student enrolled, that the student was scheduled
to complete the program.
94864. "Shift in control" means a change in the ownership of an
institution where a person who previously did not own at least 25
percent of the stock or interest in an institution or its parent
company acquires ownership of at least 25 percent of the stock or
interest in the institution or its parent company.
94865. "Site" means a main or branch campus or satellite
location.
94866. "Teach-out" means the arrangements an institution makes
for its students to complete their educational programs, at no
additional cost over that amount agreed to in the initial enrollment
agreement, when the institution ceases to operate.
94867. "Third-party payer" means an employer, government program,
or other entity that directly pays a student's total
charges when no separate agreement for the repayment of the charges
exists between the third-party payer and the student.
94868. "To offer" includes in addition to its usual meaning,
offering, advertising, publicizing, soliciting, encouraging, or
offering to a person, directly or indirectly, in any form, to perform
an act as described.
94869. "To operate" means to establish, keep, or maintain any
facility or location in this state where or from which or through
which postsecondary educational programs are provided.
94870. "Total charge" means the total institutional and
noninstitutional charge for a program or other education,
instruction, or training, including the charge for tuition,
equipment, finance charges paid to the institution, and all other
fees, charges, costs, and expenses paid to the institution.
94872. "Vocational program" means an educational program having
all of the following characteristics:
(a) The educational program consists of a job training program or
other instruction, training, or education that the institution
identifies as, or represents as a program that will lead to, fit, or
prepare students for employment in any particular occupation.
(b) The program is offered to students who do not possess a
bachelor's or a graduate degree in the field of training.
(c) Students who complete all or a portion of the program are
awarded a certificate diploma or an
associate degree, including, but not necessarily limited to, an
Occupational Associate Degree, Associate of Occupational Studies, or
Associate of Applied Science.
94873. "Year" means a calendar year.
Article 4. Exemptions
94874. (a) The following private institutions are exempt from the
requirements of this chapter:
(1) An institution offering education solely as avocational or
recreational in nature, and offering this education exclusively.
(2) An institution offering nondegree education sponsored by a
bona fide trade, business, professional, or fraternal organization,
solely for that organization's membership.
(3) An institution offering either of the following:
(A) Test preparation for examinations required for admission into
postsecondary educational institutions.
(B) Continuing education or test preparation for licensing
examinations where the institution or the program is approved,
certified, or sponsored by any of the following:
(i) A government agency, other than the bureau, that licenses
person in a particular profession, trade, or job category.
(ii) A state-recognized professional licensing body, including,
but not limited to, the State Bar of California, that licenses
persons in a particular profession, trade, or job category.
(iii) A bona fide trade, business, or professional corporation.
(C) A bona fide trade, business, or professional organization.
(4) (A) A nonprofit institution owned, controlled, and operated
and maintained by a bona fide church, religious denomination, or
religious organization composed of multidenominational members of the
same well-recognized religion, 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:
(i) The education is limited to instruction in the principles of
that church, religious denomination, or religious organization, or to
courses offered pursuant to Section 2789 of the Business and
Professions Code.
(ii) The certificate or degree is limited to evidence of
completion of that education.
(iii) The meritorious recognition upon which any honorary degree
is conferred is limited to the principles of that church, religious
denomination, or religious organization.
(B) An institution operating under this paragraph shall offer
degrees and diplomas only in the beliefs and practices of the church,
religious denomination, or religious organization.
(C) This paragraph expresses the legislative intent that the state
shall not involve itself in the content of certificate or degree
programs awarded by any institution operating under this paragraph,
as long as the institution awards certificates or degrees only in the
beliefs and practices of the church, religious denomination, or
religious organization.
(D) An institution exempt under this paragraph shall not award
certificates or degrees in any area of physical science.
(E) Any certificate or degree granted in any area of study under
this paragraph shall contain on its face, in the written description
of the title of the certificate or degree being conferred, a
reference to the theological or religious aspect of the certificate
or degree's subject area.
(F) A degree awarded under this paragraph 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."
(G) The use of the degree titles "associate of arts" or "associate
of science," "bachelor of arts" or "bachelor of science," "master of
arts" or "master of science," or "doctor of philosophy" or "Ph.D."
shall only be awarded by institutions approved to operate under this
chapter.
(5) Institutions solely offering nondegree programs that have a
total charge of one thousand five hundred dollars ($1,500) or less.
The bureau shall monitor these programs and may adjust this cost
threshold based upon the Consumer Price Index, and post notification
of the adjusted cost threshold on its Internet Web site on or after
January 1, 2010, and each January 1 thereafter if the bureau
determines, through promulgation of regulations, that the increase is
consistent with the intent of this chapter.
(6) All private postsecondary institutions offering instruction in
California which are accredited by either the Accrediting Commission
for Senior Colleges and Universities, Western Association of Schools
and Colleges, or the Accrediting Commission for Community and Junior
Colleges and Universities, Western Association of Schools and
Colleges.
(7) Except as provided in Article 13 (commencing with Section
94923), all private postsecondary institutions, other than those
exempt under paragraph (6), offering instruction in California which
are accredited by a regional accrediting agency recognized by the
United States Department of Education.
(b) Except as provided in Article 13 (commencing with Section
94923), any nonprofit public benefit corporation organized pursuant
to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of
the Corporations Code and not managed or administered by an entity
for profit, that meets all of the following requirements is exempt
from this chapter:
(1) Accredited by an accrediting agency recognized by the United
States Department of Education.
(2) Operated continuously in this state for at least 20 years.
(3) The institution's cohort default rate on guaranteed student
loans does not exceed 15 percent for the three most recent years as
published by the United States Department of Education.
(4) The institution submits to the bureau copies of the most
recent IRS Form 990 and the Integrated Postsecondary Education Data
System Report of the United States Department of Education and the
accumulated default rate.
(c) To verify that any institution is exempt from this chapter,
the bureau shall review and continue to monitor the accreditation
status of each institution to determine if the institution received a
negative accreditation action at any time. The bureau's duty under
this provision does not relieve any institution from its obligation
to comply with this chapter.
Article 5. Bureau Powers and Duties
94875. The Bureau for Private Postsecondary Education, as
established by Section 6 of Chapter 635 of the Statutes of 2007, is
continued in existence and shall commence operations. This chapter
establishes the functions and responsibilities of the bureau, for the
purposes of Section 6 of Chapter 635 of the Statutes of 2007. The
bureau has all of the following functions and responsibilities:
(a) The administration of this chapter and promulgation of
necessary , appropriate, or useful regulations consistent
with the intent and purpose of this chapter.
(b) The enforcement of this chapter and the approval of
institutions and programs that meet the requirements of this chapter.
(c) The development and maintenance of an Internet Web site that
shall include clearly accessible and searchable information regarding
approved private postsecondary institutions in California. The
Internet Web site shall provide information for prospective students
so that they may make informed choices regarding their educational
opportunities and shall provide information for current students so
they may understand their rights. The bureau's Internet Web site
shall be operational by July 1, 2009, and shall provide
include all of the following information:
(1) A directory of unapproved institutions in California which are
subject to this chapter and warn a warning
to students of the dangers of attending unapproved
institutions. This shall include a disclaimer that the directory
is based on the best information available on a specified date and a
notice to institutions that any institution may notify the bureau if
the institution believes it should not be included in the directory.
(2) A directory of approved institutions which , if feasible,
shall include a link to the Internet Web site of each
institution.
(3) Disciplinary history of approved schools.
(4) Status of school's approval.
(5) Summary of complaints filed, pursuant to Section 94884,
(5) Pursuant to Section 94884, a
summary of complaints filed against the institution.
(6) An explanation of the transition plan for the reconstituted
bureau.
(7) An explanation of the bureau's scope of authority.
(d) Provide The provision of
outreach to prospective and current private postsecondary
education students and high school students, providing them with
information on how best to select a postsecondary institution, how to
enter into a student enrollment agreement, how to protect themselves
in the postsecondary education marketplace, and how to contact the
bureau for assistance if problems arise. The bureau may accomplish
the purposes of this subdivision in cooperation with the department.
(e) Establishment The establishment
of a regular inspection program, which shall include announced and
unannounced inspections during normal business hours of educational
programs and institutions each year. If student or public complaints
have been received by the bureau since the time of initial approval
to operate all appropriate issues raised in the complaints shall be
investigated. Inspections under the program may be based on, but not
limited to, all of the following:
(1) Documents submitted to the bureau by the institution.
(2) Complaints received about the institution.
(3) Accrediting agency documents.
(4) The time elapsed since a previous inspection.
(5) Any other rational basis.
(f) Review The review and
investigation of institutions and programs approved under this
chapter.
(g) Objective The objective and
regular assessment of the cost of meeting its statutory obligations,
including the staffing necessary to meet those obligations, a
determination whether the prevailing fee structure allows for
collection of revenue sufficient to support the necessary costs, and
a report of that information to the Legislature and the Governor
through the annual State Budget process, and regular adjustments to
the fee and cost structure, as permitted in this chapter, sufficient
to ensure that the bureau accomplishes its statutory obligations.
Fees shall be raised immediately if the bureau is not adequately
performing its investigatory function with respect to institution
reviews and the investigation of student complaints.
(h) The receipt, review, and investigation of complaints received
from students and the public, and complaints transmitted by other
federal, state, or local agencies, including timely responses and
appropriate investigations, consistent with Section 94801.6. The
performance of this function shall be the bureau's first priority.
(i) Development and maintenance of an information management
system sufficient to meet the bureau's responsibilities, including,
but not necessarily limited to, an Internet Web site and database, as
provided in this article.
(j) To the extent funding and resources are available for this
purpose, the establishment of a training program, including, but not
necessarily limited to, information and support necessary for
institutions to undertake corrective action to
comply with this chapter, information and support to assist in the
successful development of a new institution, and information and
support to assist existing institutions in development that is
necessary for them to become eligible for participation in student
financial aid programs under Title IV of the federal Higher Education
Act of 1965.
(k) Establishment of a plan to identify unlicensed
program to identify unapproved institutions
operating in violation of this chapter and initiate
appropriate legal enforcement to initiate appropriate
action against those institutions.
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. In
implementing and administering this chapter, the director, or his or
her designee, shall fully exercise all powers and duties under
Section 310 of the Business and Professions Code.
(b) The bureau chief shall be appointed by the Governor and
confirmed 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) Every 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) (1) The director, in accordance with the State Civil Service
Act, shall appoint and fix the compensation of personnel as may be
necessary to carry out this chapter.
(2) The bureau shall be staffed with a sufficient number of
employees working at a professional level and having expertise in
higher education approval and investigation and auditing of
educational institutions.
(3) It is the intent of the Legislature that all employees,
excluding temporary employees, of the former Bureau for Private
Postsecondary and Vocational Education as of September 30, 2006, who
worked in a regulatory or oversight capacity have the opportunity to
transfer to their former status, positions, and classifications in
the Bureau for Private Postsecondary Education. The
reestablishment of the bureau shall not in any form preclude
professional staff who worked in a regulatory or oversight capacity
to transfer to their former status, positions, and classifications.
(4) Section 19050.9 of the Government Code shall apply to any
function or the administration of this chapter that is transferred
from the Department of Consumer Affairs or the Bureau for Private
Postsecondary and Vocational Education, which ceased to exist on July
1, 2007, to the Bureau for Private Postsecondary Education. The
bureau shall demonstrate compliance with this section in the Budget
Acts Act of 2008-09 and
2009-10.
94876.5. The bureau shall adopt and enforce regulations to
implement this chapter pursuant to the Administrative Procedure Act
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code within one year of the enactment
of this chapter. The bureau may adopt emergency regulations that
shall become effective immediately pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
94876.6. The bureau shall, in consultation and coordination with
the director and the Attorney General, develop and implement an
enforcement program to carry out this chapter, including a plan for
investigating complaints filed with the bureau.
94876.7. The bureau shall adopt a five-year strategic plan by
December 31, 2010, and update the plan periodically as needed.
94877. It is the intent of the Legislature that the bureau adopt,
periodically review, and update internal quality review and audit
procedures to ensure that bureau processes are in place to promote
and achieve full compliance with this chapter.
94879. (a) To enable the bureau to exercise its powers and to
perform its duties, the bureau shall adopt, by regulation, a fee
schedule. The fee schedule shall set forth the fees that
institutions, and others subject to this chapter, shall pay. The
bureau shall not set fees that charge
more than are reasonably necessary to accomplish
the purposes of this act. It is the intent of the Legislature that
regulations promulgated under this subdivision be completed by
August 31, 2008 June 30, 2009 , and be
codified in this chapter by December 31, 2009.
(b) All fees collected shall be deposited in the Private
Postsecondary Education Administration Fund. These fees, along with
any accrued interest, shall be the means of funding the
implementation of this chapter.
(c) The fee schedule shall be publicly available.
(d) The bureau shall use an objective process to assess the costs
of exercising its powers and performing its duties, and shall use
this assessment as the basis for constructing the fee schedule.
94880. The bureau may appoint an advisory committee that shall
consist of, but not necessarily be limited to, representatives of
institutions, student representatives, and employers who hire
students.
94881. The bureau 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.
94882. The bureau 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. The members of visiting committees may seek
reimbursement be reimbursed at the rate allowed for
state employees from the bureau for their actual travel and per
diem expenses incurred during the evaluation. The bureau may seek
reimbursement from the institution that is the subject of an
evaluation.
94883. (a) Any individual serving on a visiting committee who
provides information to the bureau, 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.
94884. For all complaints that have reached final disposition,
the bureau shall, upon request, make available to members of the
public the nature and disposition of complaints against an
institution and a summary of the violations.
94884.5. The bureau shall establish a program to identify
unapproved institutions and take all appropriate legal action.
94884.5. Notwithstanding paragraph (2) of subdivision (a) of
Section 94838.5, the bureau may promulgate regulations recognizing
that an employment position may not require education beyond the high
school level, is not a typical entry level position, and is part of
an immediate career track leading directly to a job, job title,
vocation, occupation, or trade to which the program was represented
to lead. The regulation shall ensure that in any specific situation
the institution has the burden of proof that the position meets the
definition of employment.
Article 6. Approval to Operate
94886. If an institution is regulated by another state licensing
agency, the institution shall, in addition to approval as specified
in this article, obtain and retain the authorization of that agency.
94887. (a) The bureau shall promulgate regulations providing the
minimum operating standards for institutions. These standards shall
reasonably ensure that all of the following occur:
(1) The content of each educational program can achieve its stated
objective.
(2) The facilities, instructional equipment, and materials are
sufficient to enable students to achieve the educational program's
goals.
(3) The institution maintains a withdrawal policy and provides
information regarding the calculation of refunds.
(4) The person in control, directors, administrators,
and instructors are properly qualified and have not been
, have not been found liable for failing to pay
refunds as required by law, or have not pled guilty or no contest to,
or been convicted of a crime involving the misuse of funds.
(5) The faculty has sufficient experience and education and
teaching expertise to enable students to achieve the educational
program goals and obtain employment.
(6) The institution is financially sound and capable of fulfilling
its commitments to students and has not filed for
bankruptcy within the last seven years. .
(7) That, upon satisfactory completion of an educational program,
the institution gives students a document signifying the degree or
diploma awarded.
(8) Adequate records and standard transcripts are maintained and
are available to students.
(9) The institution is maintained and operated in compliance with
applicable ordinances and laws.
(10) That students receive adequate disclosures, orally and in
writing, regarding all material facts which are reasonably likely to
affect the prospective student's decision to enroll in the
educational program , are disclosed .
94888. An approval to operate shall be granted only after an
applicant has presented sufficient evidence to the bureau, and the
bureau has independently verified the information provided by the
applicant through site visits or other methods deemed appropriate by
the bureau, that the applicant has the capacity to satisfy the
minimum operating standards.
94889. An approval to operate shall be for a term of four years.
94890. (a) Notwithstanding Sections 94887, 94888, and 94889, the
bureau shall grant an institution that is accredited an approval to
operate by means of its accreditation.
(b) The term of the approval to operate shall be coterminous with
the term of accreditation.
(c) Institutions that are granted an approval to operate by means
of the institution's accreditation shall file reports with the bureau
on a form and in a manner prescribed by the bureau and shall comply
with all applicable requirements of this chapter.
94891. (a) The 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. However, the granting of an initial
or renewal approval to operate shall not be used as proof of, or
used to establish, a presumption that the institution has complied
with the provisions of this chapter.
94892. If a federal agency or a state agency, other than the
bureau, provides an approval to offer an educational program, that
agency's educational program approval may satisfy the requirements of
this article without any further review by the bureau.
However, the granting of an approval to operate shall not be used as
proof of, or used to establish, a presumption that the institution
has complied with the provisions of this chapter. The
bureau. The bureau may incorporate that educational program
into the institution's approval to operate when the bureau receives
documentation signifying the conferral of the educational program
approval by that agency.
Article 7. Substantive Changes to an Approval to Operate
94893. If an institution wishes to make a substantive change to
its approval to operate, the institution shall receive prior
authorization from the bureau. If the institution makes the
substantive change without prior bureau authorization, the
institution's approval to operate may be suspended or revoked.
94894. The following changes to an approval to operate may be
considered substantive changes and require prior authorization:
(a) A change in educational objectives, including an addition of a
new diploma or a degree educational program unrelated to the
approved educational programs offered by the institution. If 50
percent or less of an educational program is not substantially the
same as the approved program, it shall be considered an
unrelated program.
(b) A change in ownership.
(c) A shift in control.
(d) A change in business organization form.
(e) A change of location.
(f) A change of name.
(g) A significant change in the method of instructional delivery.
(h) An addition of a separate facility more than one mile from the
main or branch campus.
94895. (a) The bureau shall promulgate regulations providing for
the process and procedures whereby an institution that has been
granted an approval to operate by means of accreditation may make a
substantive change in accordance with the standards by which the
institution is accredited.
(b) The institution shall notify the bureau of the substantive
change in a form and in a manner prescribed by the bureau.
Article 8. Business Practices
94896. An institution shall establish specific written standards
for student admissions for each educational program. These standards
shall be related to the particular educational program.
94897. An institution subject to this chapter or representative
of an institution subject to this chapter shall not do any of the
following:
(a) Operate in this state a postsecondary educational institution
subject to this chapter unless the institution is approved by the
bureau.
(b) Instruct or educate, or offer to instruct or educate,
including soliciting for those purposes, enroll or offer to enroll,
contract or offer to contract with any person for that purpose, or
award any educational credential, or contract with any institution or
party to perform any act, in this state, whether that person, group,
or entity is located within or without this state, unless that
person, group, or entity observes and is in compliance with the
minimum standards set forth in this article.
(c) Make or cause to be made any statement relative to the
operation of the school that is in any manner untrue or misleading,
either by actual statement, omission, or intimation. This
shall include, but not be limited to, the following prohibited acts:
(1)
(d) Use, or allow the use of, any reproduction or
facsimile of the Great Seal of the State of California on a diploma.
(2)
(e) Engage in any false, deceptive, misleading, or
unfair act in connection with any matter, including the institution's
advertising and promotion, the recruitment of students for
enrollment in the institution, the offer or sale of a program of
instruction, course length, course credits, the withholding of
equipment, educational materials, or loan or grant funds from a
student, training and instruction, the collection of payments,
or job placement completion, licensure
passage, or job placement information .
(3)
(f) Induce a person to enter into an agreement for a
program of instruction by offering to compensate that person to act
as the institution's representative in the solicitation, referral, or
recruitment of others for enrollment in the institution.
(4)
(g) Promise or guarantee employment or otherwise
overstate the availability of jobs in the local economy upon
graduation.
(5)
(h) 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.
(6)
(i) 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.
(7)
(j) Advertise, or indicate in promotional material,
that resident instruction or programs of study are offered, without
including in all advertising or promotional material the location
where the training is given or the location of the resident
instruction.
(8)
(k) Advertise, or indicate in promotional material,
that the institution is accredited, unless the institution has been
accredited by an accrediting agency.
(9)
(l) 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.
(10)
(m) Use a misleading name in any untrue or misleading
manner implying any of the following:
(A)
(1) The institution is affiliated with any government
agency, public or private corporation, agency, or association if it
is not, in fact, thus affiliated.
(B)
(2) The institution is a public institution.
(C)
(3) This institution grants degrees if it in fact, does
not grant degrees.
(11)
(n) In any manner make an untrue or misleading change
in, or untrue or misleading statement related to, a test score,
grade, record of grades, attendance record, record indicating student
completion, employment, or salaries, or financial information, on
any record or document required by this chapter or by the bureau.
This shall include the falsification, destruction, or concealment of
any record or other item required to be accurately maintained by this
chapter or by the bureau.
(12)
(o) 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 and with the standards
either the institution met minimum state standards as
set forth in this chapter or the minimum standards of the
institution's accrediting agency if applicable. If the bureau has
granted an institution approval to operate, the institution may
indicate that the institution is "licensed" or "licensed to operate,"
but may not state or imply either of the following:
(A)
(1) The institution or its educational programs are
endorsed or recommended by the state or by the bureau.
(B)
(2) The approval to operate indicates that the
institution exceeds minimum state standards as set forth in this
chapter.
(13)
(p) Misrepresent to a student or prospective student
that the student is or will be qualified, upon completion of a
course, for admission to a professional examination under a
specific private authority or agency licensure or certification
provision or a state occupational licensing provision.
(14)
(q) Offer to pay or pay any consideration to a student
or prospective student to act as a representative of the institution
with regard to the solicitation, referral, or recruitment of any
person for enrollment in the institution in either of the following:
(A)
(1) During the 60-day period following the date on
which the student began the program.
(B)
(2) At a subsequent time, if the student has not
maintained satisfactory academic progress in acquiring the necessary
level of education, training, skill, and experience to obtain
employment in the occupation or job title to which the program is
represented to lead. The institution shall have the burden of proof
to establish that the student has maintained satisfactory academic
progress.
(d)
(r) Direct a representative to perform any unlawful
act, to refrain from complaining or reporting unlawful conduct to the
bureau or another government agency, or to engage in any unfair act
to persuade a student not to complain to the bureau or another
government agency.
(e)
(s) Pay any consideration to a person to induce that
person to sign an enrollment agreement for an educational program.
(f)
(t) Compensate a representative involved in
recruitment, enrollment, admissions, student attendance, or sales of
equipment to students on the basis of a commission, commission draw,
bonus, quota, or other similar method except as specifically allowed
under federal law.
(g)
(u) Require a prospective student to provide personal
contact information in order to obtain educational program
information, including, but not limited to, tuition and fees, faculty
qualifications, and completion and placement information,
from the institution's Internet Web site. completion
and placement rates information, or any item required under the
consumer information requirements of Title IV of the federal Higher
Education Act of 1965 from the institution's Internet Web site.
(h)
(v) Attempt to confer a degree, diploma, or certificate
to a student in violation of this chapter.
(i) Misrepresent to a student or prospective student that the
student is or will be qualified, upon completion of a course, for
admission to a professional examination under a state occupational
licensing provision.
94897.5. Any institution required to be approved by the bureau
shall do all of the following:
(a) Comply with the minimum standards prescribed by this chapter,
and provide the quality of instruction, faculty, equipment,
materials, software, supplies, and internships, as represented in or
substantially equivalent to that represented in the catalog, on the
Internet Web site, advertising, enrollment materials, and brochure or
by the admission's representative in the enrollment process or other
representative.
(b) Provide timely and accurate refunds to students, as required
by this chapter, or fail to and
satisfy, within 30 days of its issuance, a final judgment obtained by
a student against the institution.
(c) Conduct business or instructional services only at a location
approved by the bureau.
(d) Comply with any provision of law or regulation governing
sanitary conditions. However, the bureau may take an action against
an institution for violation of this subdivision only when the bureau
is aware of the violation.
(e) (1) Maintain the records of the name, address, e-mail address,
and telephone number of students who enroll in an educational
program or program of instruction, including the students who begin
the program, the students who cancel before completing the program,
and the students who graduate from the program of instruction. For
each vocational program and any other program about which the
institution or any representative makes any statements about job
availability for students in the job titles or occupations to which
the program is represented to lead, the institution shall inquire
whether students who complete an educational program obtain
employment.
(2) To the extent information is available from past students, the
institution shall keep a log which documents individual employment
of those students who completed the educational program. The
institution shall maintain records which document the completion,
placement, licensing examination, and salary information the school
is required to report to the bureau under Section 94928 and disclose
under Section 94907 with all facts needed to substantiate the
information.
94897.6. (a) Each owner, director, and administrator of an
institution shall expend or authorize the expenditure of the
institution's assets and funds, including tuition, fees, and other
charges collected from or on behalf of students, in a diligent and
prudent manner to ensure that students receive the education and
student services that the institution represented it would provide to
the students and that the institution is required to provide to the
students pursuant to this chapter.
(b) Each owner, director, and administrator of an institution has
the duty to act in good faith to take all reasonable steps within his
or her capacity to cause the institution to comply with all
applicable law and to correct the effects of noncompliance.
(c) Each owner, director, and administrator of an institution
shall immediately disclose to the bureau evidence that the
institution or any person connected with the institution has engaged
in fraud, misrepresentation, or misappropriation of funds.
(d) This section does not create any duty upon an institution or
the owner, director, or administrator of an institution, to students
or prospective students.
94898. Each institution that has an Internet Web site
shall clearly and conspicuously provide the following information on
its Internet Web site, if applicable, about each program at each site
of each institution:
(a) All information required to be disclosed under Section 94907.
(b) The status of the institution's approval including any
disciplinary actions by the bureau against the institution in the
last three years.
(c) The If an institution
provides information about staff or faculty on its Internet Web site,
it shall provide the names of the faculty members and their
prior education and qualifications to teach in the program of
instruction and the date they first began teaching at the
institution.
(d) The average class size and any class size limit.
(e) The specifics of any offsite training or internship.
(f) The requirements the prospective students must meet to enroll.
(g) Any bankruptcy filing by the institution.
94898.5. Information required by Section 94898 to be provided on
an institution's Internet Web site shall be kept current. The
information under subdivision (a) of Section 94907 shall be deemed
current on the Internet Web site if the information provided is
updated by January 1 of each year. The information under subdivisions
(b) to (i), inclusive, and subdivision (k) of Section 94907 and
under subdivisions (c) to (f), inclusive, of Section 94898 shall be
deemed current if the information provided is updated at least once
every three months. Matters deemed current under this section apply
only to Internet Web site disclosure, not to any other disclosures
required under this chapter.
94899. If an institution offers an educational program in a
profession, occupation, trade, or career field that requires
licensure in this state, the institution shall have been approved to
conduct that educational program by the bureau and any other required
agencies , if applicable .
94899.5. (a) Institutions that offer short-term programs designed
to be completed in one term or four months, whichever is less, may
require payment of all tuition and fees on the first day of
instruction.
(b) For those programs designed to be four months or longer, an
institution shall not require more than one term or four months of
advance payment of tuition at a time. When 50 percent of the program
has been offered, the institution may require full payment.
(c) An institution that provides suggests
lenders or refers students to lenders of, or arranges
private loan funding shall ensure that the student is
not obligated for indebtedness that exceeds the current cost of
attendance. that a student who may be eligible for a
state or federal grant or guaranteed loan is first offered that
financing before being offered any private loan.
94899.6. (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 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.
(d) An institution shall not move the location of class
instruction more than 10 miles from the location of instruction at
the time of enrollment unless any of the following occur:
(1) The institution discloses in writing to each student before
enrollment in the educational program that the location of
instruction will change after the educational program begins and the
address of the new location.
(2) The institution applies for, and the bureau grants, approval
to change the location. The bureau shall grant the application within
60 days if the bureau, after notice to affected students and an
opportunity for them to be heard as prescribed by the bureau,
concludes that the change in location would not be unfair or unduly
burdensome to students. The bureau 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.
94899.7. (a) An institution that provides medical training
providing for students to interact with health care patients, and
that is required to provide criminal background checks, medical blood
tests, or drug tests on its students, shall keep complete, accurate,
and up-to-date files of these checks and test results.
(b) Records kept under this section shall be available for review
by the medical facility in which the students are obtaining their
clinical rotation work, by law enforcement personnel, and by the
bureau.
(c) An institution shall implement procedures to ensure that
records kept under this article are safeguarded and that the privacy
rights of students are protected.
94899.8. (a) An institution shall maintain, for a period of not
less than five years at its principal place of business in this
state, complete and accurate records, evidencing all of
the following:
(1) The programs of study offered by the institution and the
curriculum for each.
(2) The names and addresses of its faculty, together with a record
of the educational qualifications of each.
(3) The records required to be maintained by this chapter.
(b) For each student the institution shall maintain permanent
records of the degree or certificate granted, the date it was
granted, the courses and units of each on which the certificate or
degree was based, and the grades earned in those courses.
(c) Notwithstanding any other provision of this chapter, an
institution may not disclose the personal student records maintained
pursuant to this section unless production of those records is
required by any law or by subpoena or court order.
(d) All records that an institution is required to maintain by
this chapter or that relate to an institution's compliance with this
chapter shall be made immediately available by the institution for
inspection and copying during normal business hours, upon request, by
the bureau, the Attorney General, any district attorney or city
attorney, or the Student Aid Commission.
Article 9. Recruiters
94900. An institution's recruiters shall be employees.
94901. (a) An institution shall issue identification to each
recruiter identifying the recruiter and the institution.
(b) The recruiter shall have the issued identification with him or
her while recruiting.
Article 10. Enrollment Agreements and Disclosures
94902. (a) Before a person executes an agreement obligating that
person to pay any money to an institution for a program or related
equipment, the institution shall:
(1) Provide to that person a copy of the enrollment agreement
containing, at a minimum, the information required by Section 94906.
(2) Provide to that person a clear written statement containing
its refund policy, a table of the amount of the refund to which the
student would be entitled if the student withdrew from the program
after completing a period of days or weeks of instruction equivalent
to 10 percent, 25 percent, 50 percent, 60 percent, and 75 percent of
the program, and a description of the procedures that a student is
required to follow to cancel the agreement and obtain a refund. If
the institution solicited the student or negotiated the agreement in
a language other than English, the statement shall be in that same
language. The institution shall also make its refund policy known to
currently enrolled students.
(3)
(2) Provide to that person a written schedule of the
total charge for the program, separately itemized into tuition,
assessments for the Student Tuition Recovery Fund, the cost of each
item of equipment, including textbooks, shop and studio fees, and any
other fees the student will pay to the institution in order to
complete the program, with a statement of the purpose for each of
these charges. The schedule shall clearly indicate and differentiate
all mandatory and optional charges. The schedule shall clearly
identify all charges and deposits that are nonrefundable.
The schedule shall also contain both of the following:
(A) A statement, to be provided by the bureau, specifying that it
is a state requirement that a student who pays his or her own
tuition, either directly or through a loan, is required to pay a
state-imposed fee for the Student Tuition Recovery Fund.
(B) A statement, to be provided by the bureau, describing the
purpose, operation, and eligibility requirements of the Student
Tuition Recovery Fund.
(4)
(3) If a state board, bureau, department, or agency has
established the minimum number of classes or class hours or the
minimum criteria of a program necessary for licensure in an
occupation and an institution offers a program differing from the
state entity's minimum requirements, disclose orally and
in writing the state entity's minimum requirements and how
the program differs from those requirements.
(5) If the institution provides a specific program of study where
the students will need program approval by a specific authority or
agency for the students to take an examination for certification,
(4) If the institution provides a
program of study for which program approval by a specific authority
or agency is necessary, or absent experience in the field, it is
necessary for those who complete the program to qualify to take an
examination for certification, licensure, or other similar
approval allowing the student to perform services in the field of
study, or if the institution knows or reasonably should know that
certification, licensure, or other similar approval, while
not necessarily required to perform services in the field of study,
is widely requested or required by employers, disclose in
writing to the student if the program is not approved.
disclose in writing to the student before enrollment if the program
does not have the program approval which will qualify graduates to
take the examination.
(6) Disclose in writing that, if the student obtains a loan to pay
for the course of instruction, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund.
(7) Disclose in writing that, if the student is eligible for a
loan guaranteed or reinsured by the state or federal government and
the student defaults on the loan, the following may occur:
(A) The federal or state government or the loan guarantee agency
can 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.
(B) The student may not be eligible for any other federal
financial assistance for education at a different institution or for
government housing assistance until the loan is repaid.
(8) Disclose in writing that the institution is not a public
institution.
(9) Disclose in writing whether or not the institution has filed,
or has had filed against it, a petition in bankruptcy.
(10) Provide orally and in writing the information required by
subdivision (a) of Section 94907.
(11)
(5) A copy of the catalog or brochure as described in
Section 94903.
(b) The disclosures required by subdivision (a) shall be in
English unless the solicitation or negotiation leading to the
agreement for a course of instruction was in a language other than
English, in which case, the disclosures shall be in that other
language.
(c) Notwithstanding any other provision of this section, an
institution offering a distance learning program need not orally make
the disclosures required by subdivision (a) in connection with that
course if the institution did not orally solicit or recruit the
student for enrollment and the student enrolled by mail or
electronically.
94903. (a) An institution shall provide to students and
other interested persons prospective students ,
prior to enrollment, a catalog or brochure containing, at a minimum,
all of the following information:
(1) Descriptions of the
instruction provided under each course offered by the institution,
including the length of programs offered, and all of
the occupations or job titles, if any, to which the program
of instruction is represented to lead.
(2) The number of credit hours or clock hours of instruction or
training per unit or units required for completion of the educational
degree or certificate program.
(3) The attendance, dropout, and leave-of-absence policies.
(4) The faculty, including their relevant qualifications as of the
date of the publication of the catalog or brochure. This shall
include each degree held by staff and the name and location of the
institution from which each degree was earned.
(5) The schedule of tuition payments, fees, and all other charges
and expenses known to or arranged by the institution and necessary
for the term of instruction and the completion of the course of
study.
(6) The cancellation and refund policies.
(7) For institutions that participate in federal and state
financial aid programs, all consumer information that the institution
is required to disclose to the student.
(8) A description of a student's rights under the Student Tuition
Recovery Fund.
(9) The institution's admissions policies, including the
institution's policies regarding the acceptance of units of credit
earned by the student at other institutions or through challenge
examinations and standardized tests.
(10) If an institution represents that it provides job placement
services, a description of the nature and extent of the placement
services that indicates when they are available to students.
(11) All other material facts concerning the institution and the
educational program or course of instruction that are reasonably
likely to affect the decision of the student to enroll.
(12) A list describing all transfer agreements or articulation
agreements between the institution and any other colleges or
universities that provide for a transfer of credits earned in the
program of instruction in which the student seeks to enroll. If no
transfer agreements or articulation agreements exist that relate to
the particular program of instruction in which the student seeks to
enroll, the institution shall disclose this.
(b) The institution shall provide the catalog or brochure to any
person upon request.
(c) A written contract signed by a student is not enforceable
unless the student has first received the institution's catalog or
brochure containing the information required by this section and as
required by Section 94903.5.
94903.5. (a) An institution shall not
require the signature of a person to an agreement obligating that
person to pay any money to the institution until the person has had
at least one business day from the date of the oral disclosures
under Section 94907.5, to read and review all of the items
required to be provided to that person by this article. The
prospective student shall be advised, orally and in writing, by the
institution that he or she should read the required documents and ask
questions regarding the content of the documents that he or she does
not understand. Nothing in person by this article.
(b) Nothing in this chapter shall
be construed in any manner to relieve a student or prospective
student from any legal duty there may be to read and comprehend all
disclosures and documents presented by the institution.
94903.6. (a) An institution shall not offer
English-as-a-second-language (ESL) instruction without the prior
approval of the bureau.
(b) An institution that offers ESL instruction to a student shall
not enroll the student in any educational service presented in the
English language, other than that ESL instruction, unless the student
passes a test indicating that he or she has attained adequate
proficiency in oral and written English to comprehend instruction in
English.
(c) A student who has completed ESL instruction at an institution
shall not be enrolled in any course of instruction presented in the
English language at that institution unless the student passes a test
indicating that he or she has attained adequate proficiency in oral
and written English to be successfully trained by English language
instruction to perform tasks associated with the occupations or job
titles to which the educational program is represented to lead.
(d) If an institution offers ESL instruction to a student to
enable the student to use already existing knowledge, training, or
skills in the pursuit of an occupation, the institution shall test
the student after the student completes the ESL instruction to
determine that the student has attained adequate proficiency in oral
and written English to use his or her existing knowledge, training,
or skills. Before enrolling the student in ESL instruction, the
institution shall document the nature of the student's existing
knowledge, training, or skills and that the ESL instruction is
necessary to enable the student to use that existing knowledge,
training, or skills.
(e) If an institution offers ESL instruction to a student in
connection with a course of instruction leading to employment in any
occupation requiring licensure awarded after the passage of an
examination offered in English, the institution shall test the
student after the student completes the ESL instruction to determine
that the student has attained a level of proficiency in English
reasonably equivalent to the level of English in which the licensure
examination is offered.
(f) If the results of a test administered pursuant to subdivision
(b), (c), (d), or (e) indicate that the student has not attained
adequate English language proficiency after the completion of ESL
instruction, the institution shall offer the student additional
instruction without charge, for a period of up to 50 percent of the
number of hours of instruction previously offered by the institution
to the student, to enable the student to attain adequate English
language proficiency.
(g) This section does not apply to grantees funded under Section
1672 of Title 29 of the United States Code.
(h) The institution, for five years, shall retain an exemplar of
each language proficiency test administered pursuant to this section,
an exemplar of the answer sheet for each test, a record of the score
for each test, the answer sheets or other responses submitted by
each person who took each test, and the documentation required by
subdivision (d).
(i) For the purpose of determining compliance with this article,
ESL instruction shall be deemed a course
program , and a charge shall be deemed to be made for ESL
instruction if a student is obligated to make any payment in
connection with the educational service, including, but not
necessarily limited to, the ESL instruction that is offered by the
institution.
(j) The tests used by an institution pursuant to this section
shall be tests that are approved by the USDE, or tests such as the
Test of English as a Foreign Language and the Comprehensive Adult
Student Assessment System, that are generally recognized by public
and private institutions of higher learning in this state for the
evaluation of English language proficiency. An institution shall
demonstrate to the bureau that the tests and passing scores that it
uses establish that students have acquired the degree of proficiency
in oral and written English required by subdivision (b), (c), (d), or
(e), whichever is applicable. The required level of proficiency in
oral and written English shall not be lower than the sixth grade
level.
(k) All tests shall be independently administered, without charge
to the student and in accordance with the procedures specified by the
test publisher. The tests shall not be administered by a previous or
current owner, director, consultant, or representative of the
institution or by any person who previously had, or currently has, a
direct or indirect financial interest in the institution other than
the arrangement to administer the test. The bureau shall adopt
regulations that contain criteria to ensure independent tests
administered including the criteria established by the USDE and set
forth on pages 52160 and 52161 of Volume 55 of the Federal Register,
dated December 19, 1990.
94903.7. For purposes of compliance with Section 94903.6, the
bureau shall do the following:
(a) Promulgate regulations concerning the manner of documenting
the nature of a student's existing knowledge, training, and skill and
that ESL instruction offered by the institution is necessary to
enable the student to use that existing knowledge, training, and
skill, as prescribed in subdivision (d) of Section 94903.6. The
regulations shall specify all of the following:
(1) Reliable sources of information, independent of the student
and the institution, from which documentation of a student's existing
knowledge, training, and skill shall be obtained.
(2) Circumstances that must be documented by the institution to
establish that information from a designated reliable source of
information cannot reasonably be obtained.
(3) Alternate acceptable sources of information if designated
reliable sources are not available.
(4) The nature of all required types of documentation.
(b) Develop and distribute instructions, informational materials,
or forms to assist institutions in developing the documentation
described in this section. These instructions, materials, and forms
shall not be subject to review or approval by the Office of
Administrative Law pursuant to any provision of the Government Code.
94904. Before an ability-to-benefit student may execute an
enrollment agreement, the institution shall have the student take an
independently administered examination from the list of examinations
prescribed by the United States Department of Education pursuant to
Section 484(d) of the federal Higher Education Act of 1965 (20 U.S.C.
Sec. 1070a et seq.), as it is, from time to time, amended. The
student may 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. If the United States Department of Education does not have a
list of relevant examinations that pertain to the intended
occupational training, the bureau may publish its own list of
acceptable exams.
94905. (a) During the enrollment process, an institution offering
educational programs designed to lead to positions in a profession,
occupation, trade, or jobs or job titles requiring licensure shall
exercise reasonable care to determine that the student shall
reasonably be eligible to obtain licensure in the profession,
occupation, trade, or jobs or job titles at the time of the student's
graduation for reasons such as age, apparent physical
characteristic, or relevant past criminal conviction.
(b) During the admission or enrollment process, an institution
shall not offer job placement assistance or discuss salaries except
as provided for in Section 94907. After a student has completed more
than 60 percent of a program, the institution may offer job placement
assistance.
94905. (a) (1) An institution offering educational programs
represented to lead to employability in a profession, occupation,
trade, or job or job title for which licensure is required shall be
familiar with those conditions that would make a person ineligible to
obtain licensure after completion of the program.
(2) No institution offering programs represented to lead to
employability in an occupation or with a job title for which
licensure is required, shall enter into an agreement to provide an
educational program to a person whom the institution knows or, by the
exercise of reasonable care, should know, would be ineligible to
obtain that licensure after completion of the program.
(b) During the admission or enrollment process, if an institution
represents that it offers job placement assistance for students while
they attend school shall also disclose to prospective students the
number of requests it had for that assistance during the past
calendar year and the number of those who requested that assistance
whom the institution referred to a job for which the student was
hired while attending the institution.
(c) During the admission or enrollment process, an institution
shall not discuss salaries except as provided in subdivision (a) of
Section 94907.
94905.2. (a) The bureau
shall promulgate regulations for purposes of carrying out the intent
of this article. These regulations may include, but are not limited
to, the following:
(1)
(a) Recruiting.
(2)
(b) Advertising, including advertising on the Internet
or by electronic mail.
(3)
(c) Entrance exams and minimum qualifications of
students.
(4)
(d) Transfer of credits.
(5)
(e) Refund policies.
(6)
(f) Fees paid by students.
(7)
(g) Total student costs.
(8)
(h) Preparing students for careers.
(9)
(i) Financial aid.
(10)
(j) Accreditation.
(11)
(k) Facilities, including satellites.
(12)
(l) Instructors, including qualifications.
(13)
(m) Actions by agents.
(14)
(n) Actions by employees.
(15)
(o) Recordkeeping.
94906. The enrollment agreement shall include all of the
following required terms:
(a) On the first page of the enrollment agreement, in at least
12-point boldface type, the following statement:
"Any questions a student may have regarding this enrollment agreement
that have not been satisfactorily answered by the institution may be
directed to the Bureau for Private Postsecondary Education at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
(b) The name and description of the educational program, including
the total number of credit hours, clock hours, or other increment
required to complete the educational program.
(c) The name and address of the institution and the address where
class sessions shall be held.
(d) A schedule of the total charge, including a list of
any charges that are nonrefundable, clearly identified as
nonrefundable charges.
(e) In underlined capital letters on the same page of the
enrollment agreement in which the student's signature is required,
the total charge for a period of attendance or the entire educational
program.
(f) A statement that the student is responsible for paying the
state assessment amount for the Student Tuition Recovery Fund.
(g) A clear and conspicuous statement that the enrollment
agreement is legally binding when signed by the student and accepted
by the institution.
(h) The following statement in at least 12-point, boldface type
above the space for the student's signature:
"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."
(i) Description of the instruction to be provided, including the
length of programs offered, and all of the
occupations or job titles, if any, to which the program of
instruction is represented to lead.
94906.5. It shall be a violation of this chapter for any
institution or representative of an institution to ask
sign, ask, or induce any person to sign the
student statement specified in Section 94906 if the institution or
representative has not fully and clearly explained the student's
rights, responsibilities, and the institution's policies.
94907. An institution shall clearly and conspicuously make the
following disclosures on its Web site
Internet Web site, if it has an Internet Web site, about each
program at each of the institution's sites, orally and
in writing, to each student before execution of the
enrollment agreement about each program in which the student
expressed interest in enrolling:
(a) A "School Performance Facts Sheet" that discloses the
following information:
(1) Completion numbers and rates, calculated as follows:
The number and percentage of students who began the program, did
not cancel within the cancellation period, and were originally
scheduled at the time of enrollment to complete the program during
the completion tracking period, and the number and percentage of them
who completed the program during that completion tracking period.
(2) For each vocational program and any other program about which
the institution or any representative makes statements about job
availability for students or graduates in the job titles or
occupations to which the program is represented to lead, the
employment numbers and rates, calculated as follows:
(A) For programs for which employment in the occupation does not
require passing a state examination, the number of students who
completed the program during the employment tracking period, but at
least eight months before its end, and the number and percentage of
those students who obtained employment, excluding self-employment,
during the employment tracking period.
(B) For programs for which employment in the occupation does
require passing a state examination, the number of students who
completed the program and for whom the announcement of the
examination results for the first examination available after the
student completed the program occurred during the employment tracking
period, but at least eight months before its end, and the number and
percentage of those students who obtained employment, excluding
self-employment, during the employment tracking period.
(C) For any students the institution documents are self-employed,
the employment calculation shall be made separately and calculated as
set forth in subparagraph (A) or (B), as applicable, and unless the
institution has documentation to the contrary, a statement to the
effect that the school does not have information about whether the
self-employment is part time or full time.
(3) If the institution or a representative of the institution
makes any express or implied claim about the salary that may be
earned after completing a program, such as a claim that the student
may be able to repay a student loan from the salary received at a job
obtained following completion of the program, compensation
information shall be disclosed as follows:
(A) The total number of students who completed the program and
were counted under subparagraph paragraph
(2), and the number and percentage of those who earned salaries
at or above the claimed level during the employment tracking period.
(B) The average annual salary earned during the employment
tracking period by the students counted under subparagraph
paragraph (2).
(4) If the institution or a representative of the institution in
any manner represents that the program might lead to employment in an
occupation or job title for which a state examination is required,
the following:
(A) All licensure or certification requirements established by the
state for the occupation or job title category.
(B) The number of students counted under subparagraph
paragraph (2) who completed a course for which
employment requires passing a state licensing examination, and the
number and percentage of them , who took the
required exam the first time it was available after completion of the
program, and the number and percentage of those who took it
who and passed it.
(5) 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's
research, but it is not the same as actual performance data."
(b) Any other information necessary to substantiate the truth of
any claim made by the institution as to job placement.
(c) Costs of attendance, including a schedule of the total charges
and a list of any charges that are nonrefundable, clearly identified
as nonrefundable charges. The disclosure required under
paragraph (2) of subdivision (a) is deemed to comply with this
requirement.
(d) (1) 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 applied to the balance
due on the loan. Prospective
(2) Prospective students shall be
provided with information , about all loan and
financial aid programs offered or arranged by the institution.
(e) A transferability disclosure. An institution shall provide to
each prospective student for a degree, diploma, or certificate
program, a written statement on a separate piece of paper in at least
12-point type that contains the following statement:
"NOTICE CONCERNING THE TRANSFERABILITY OF UNITS AND DEGREES EARNED AT
OUR SCHOOL:
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. For example, if
you entered our school as a freshman, you may still be a freshman if
you enter another college or university at some time in the future,
even though you earned credits here at our school.
In addition, if you earn a degree, diploma, or certificate in our
(fill in the name of the program) program, it is possible that it may
not serve as a basis for obtaining a higher level degree at another
college or university.
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.
If this institution has any transfer agreements with other colleges
or universities, it must give you a written list and description of
those agreements. agreements."
You should not rely on any other oral statements about
transferability of credits."
(f) (1) A disclosure with a clear and conspicuous caption:
"BUYER'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.
"BUYER'S RIGHT TO CANCEL.
You have a temporary right to cancel this agreement and will owe
only the registration fee of $(insert amount). The school will notify
you in writing at least three days prior to the date you may cancel
to receive a full refund. You must cancel in writing. After (insert
appropriate phrase as specified in Section 94919), you will have the
right to a partial refund if you cancel this agreement. This notice
explains your cancellation and refund rights and how to cancel. These
rights are also explained in the school's catalog and you will
receive a cancellation form on your first day of class."
(2) The disclosure shall contain the institution's refund policy,
together with examples of the application of the policy, and a
(2) The disclosure shall contain a
clear written statement of the institution's refund policy, a table
of the amount of the refund to which the student would be entitled if
the student withdrew from the program after completing a period of
days or weeks of instruction equivalent to 10 percent, 25 percent, 50
percent, 60 percent, and 75 percent of the period of
attendance, 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,
including the title and address of the institution manager to whom
the notice shall be sent or delivered.
(4) If the institution solicited the student or negotiated the
agreement in a language other than English, the disclosure shall be
in that same language.
(g) A statement, provided by the bureau, specifying that it is a
state requirement that a student who pays his or her tuition ,
either directly or through a loan, is required to pay a
state-imposed assessment fee 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
eligibility requirements for the Student Tuition Recovery Fund.
This statement may be included in the same document
as required under subdivision (c).
(h) 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 applied to the balance due on the loan.
(h) A statement providing disclosures as required by Section 69800
of the Education Code. This subdivision shall become operative only
if Senate Bill 1355 of the 2007-08 Regular Session is enacted.
(i) 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.
(j) A statement specifying that the institution is not a public
institution.
(k) A statement specifying whether the institution has a pending
petition in bankruptcy or has had a petition in bankruptcy filed
against it.
(l) The objective sources of the information substantiating the
truthfulness of any claim by the institution or its representative
about salaries earned in any specific job, job title, vocation,
occupation, or trade. Objective sources shall include, but not be
limited to, the California Employment Development Department and the
United States Department of Labor Bureau of Labor Statistics.
94907.5. (a) An institution shall clearly and conspicuously
orally disclose all of the following information when providing the
required related written disclosure:
(1) The information required to be disclosed pursuant to
subdivision (a) of Section 94907.
(2) A statement pointing out on the written disclosure required by
subdivision (c) of Section 94907 the total being charged, the
schedule of payments, and which charges are nonrefundable.
(3) The information required to be disclosed pursuant to paragraph
(1) of subdivision (d) of Section 94907.
(4) The information required by subdivision (e) of Section 94907.
(5) The information required by paragraph (1) of subdivision (f)
of Section 94907.
(6) The information required by subdivision (h) of Section 94907.
(b) The disclosures required by subdivision (a) shall be made to
each prospective student at least one business day prior to the
student's execution of the enrollment agreement.
(c) The disclosures required by paragraphs (1), (2), (4), and (5)
of subdivision (a) shall be made about each program in which the
student expressed interest in enrolling.
(d) At the conclusion of providing the required oral information,
the institution shall advise the prospective student to read and
review the materials provided and ask questions about the content of
the documents that he or she does not understand.
(e) The institution shall have a uniform procedure sufficient to
ensure the disclosures are made as required by this section,
including a method to monitor compliance.
94908. Each disclosure in Section 94907 shall be acknowledged by
the signature of a person representing the institution on a single
form acknowledging delivery of the individually identified
disclosures.
94909. A student may not waive any required term, or receipt of
any disclosure, required by this article.
94910. An enrollment agreement shall be written in language that
is easily understood. If English is not a student's primary language,
and the student is unable to understand the terms and conditions of
the enrollment agreement, the student shall be provided a clear
explanation of the terms and conditions and all cancellation and
refund policies in his or her primary language.
94911. If the recruitment leading to enrollment was conducted in
a language other than English, the enrollment agreement, disclosures,
and statements shall be in that language.
94912. An enrollment agreement shall become operative when the
student attends the first class session.
94913. An enrollment agreement shall not contain a provision that
requires a student to invoke an internal institutional dispute
procedure before enforcing any contractual or other legal rights
or remedies. This does not preclude inclusion of a term in
the enrollment agreement requiring binding arbitration as authorized
under the Federal Arbitration Act pursuant to Title 9 of the United
States Code or other alternative dispute resolution procedures.
or remedies.
94914. An enrollment agreement, note, or other instrument of
indebtedness, or contract relating to payment for educational
services is not enforceable by an institution within or outside this
state governed by this chapter unless, at the time of execution of
that note, other instrument of indebtedness, enrollment agreement, or
contract, the institution has a valid approval to operate pursuant
to this chapter.
Article 11. Consumer Loans to Students
94916. (a) (1) An institution extending credit or lending money
to a person for tuition, fees, or other charges for educational
services to be rendered or furnished shall cause any note,
instrument, or other evidence of indebtedness taken in connection
with that loan or extension of that credit to be conspicuously marked
on the face thereof with the following notice:
94916. (a) (1) For each student who will enter
or has entered into any consumer credit contract that would be
subject to Part 433 (commencing with Section 433.1) of Title 16 of
the Code of Federal Regulations as it exists and as it is amended
thereafter, to pay for any part of the total charge, the institution
shall include the following statement in any written contract or
agreement for educational services:
"NOTICE REGARDING REFUNDS
YOU MAY ASSERT AGAINST THE HOLDER OF THE PROMISSORY NOTE
ANY CONSUMER CONTRACT YOU SIGNED IN ORDER TO
FINANCE THE COST OF INSTRUCTION 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." ANY
CONSUMER CONTRACT."
(2) An institution that fails to comply with paragraph (1) shall
be liable for any damage or loss suffered or incurred by any
subsequent assignee, transferee, or holder of that
other holder of any evidence of indebtedness on account
of the absence of that notification.
(b) Notwithstanding the presence or absence of the notification
required in subdivision (a), and notwithstanding an agreement in
which a student waives the right to assert a claim or defense, an
institution making a loan or extending credit and the
any transferee, assignee, or holder of
that any evidence of indebtedness, are subject
to all defenses and claims that could be asserted against the
institution that was to render or furnish those educational services
by a party to that evidence of indebtedness or by the person to whom
these educational services were to be rendered or furnished up to the
amount remaining to be paid thereon.
(c) An institution that participates in
Any consumer credit contract for financing provided under
a federal student assistance program and that complies with the
financial disclosure and notification requirements for those
programs is in compliance as to that financing with the
standards prescribed by this section.
(d) For any term defined under Part 433 (commencing with Section
433.1) of Title 16 of the Code of Federal Regulations and used in
this section, the definition under Part 433 shall apply to that term
in this section.
94918. In making consumer loans credit
available to students, an institution shall also comply with
the requirements of the Federal Truth in Lending Act pursuant to
Title 15 of the United States Code.
94918.5. An institution shall establish specific written
standards for student admissions for each educational program. These
standards shall be related to the particular educational program.
Article 12. Cancellations, Withdrawals, and Refunds
94919. (a) A student shall have the right to cancel an
agreement for a program of instruction, including any equipment, as
follows: enrollment agreement, set forth in
subdivision (b) and as follows:
(1) For degree programs, the student shall have the right to
cancel prior to or on the first day of instruction.
(2) For nondegree programs in excess of 50 days, the student shall
have the right to cancel until midnight of the fifth business
day after the day on which the student did any of the
following, whichever is later:
(A) Attended the first class of the program of instruction that is
the subject of the agreement.
(B) Received a copy of the notice of cancellation as provided in
Section 94921.5.
(C) Received a copy
of the enrollment agreement and the disclosures as required by
Section 94907. day after the day on which the student
attended the first class of the program of instruction that is the
subject of the agreement.
(3) For nondegree programs of 50 or fewer days, the student shall
have the right to cancel the agreement until midnight of the date
that is one business day for every 10 days of scheduled program
length, rounded up for any fractional increments thereof.
(4) For distance learning programs, if the first lesson is sent to
the student by mail, the institution shall send it by first-class
mail, postage prepaid, documented by a certificate of mailing, and
the student shall have a right to cancel until midnight of the eighth
business day after the first lesson was mailed. If the first lesson
is sent to the student electronically, the student shall have the
right to cancel until midnight of the third business day after the
first lesson was electronically received by the student.
(b) The period for cancellation under this section begins as set
forth in subdivision (a), when either of the following occurs:
(1) The student receives a copy of the notice of cancellation as
provided in Section 94921.5.
(2) The student receives a copy of the enrollment agreement and
the disclosures as required by Section 94907 and Section 94907.5,
whichever is later.
(b)
(c) Cancellation shall occur when the student gives
written notice of cancellation to the institution at the address
specified in the agreement.
(c)
(d) The written notice of cancellation, if given by
mail, is effective when deposited in the mail properly addressed with
postage prepaid and if given by e-mail, is effective when
e-mailed to the e-mail address, if any, specified in the agreement
.
(d)
(e) The written notice of cancellation need not take a
particular form and, however expressed, is effective if it indicates
the student's desire not to be bound by the agreement.
(e)
(f) Except as provided in subdivision (g) of Section
94920.1, if the student cancels the agreement, the institution shall
refund, without penalty or obligation, 100 percent of the amount paid
to that institution by or on behalf of the student, less a
reasonable deposit or application
registration fee not to exceed one hundred fifty dollars
($150), within 10 days after the institution receives notice
of the ($150) or one hundred dollars ($100) for
distance education, within 20 days after the institution receives
notice of the cancellation.
(f)
(g) If the institution gave the student any equipment,
the student shall return the equipment within 10 days following the
date of the notice of cancellation. If the student fails to return
the equipment within this 10-day period, the institution may retain
that portion of the consideration paid by the student equal to the
documented cost to the institution of the equipment, but not
more than the equipment's fair market value, and shall refund
the portion of the consideration exceeding the documented
cost to the institution of the equipment within 10 days after the
period within which the student is required to return the equipment.
cost to the institution of the equipment within 20
days after the institution receives notice of the cancellation. The
school shall have the burden of proof to establish each item of the
equipment's fair market value. The student may retain the
equipment without further obligation to pay for it.
94920. (a) If a student withdraws from a program of instruction
after the applicable period described in Section 94919, the
institution shall remit a refund as provided in Section 94920.1
within 30 days following the student's withdrawal.
(b) If any portion of the tuition was paid from the proceeds of a
loan, the refund shall be sent to the lender or, if appropriate, to
the state or federal agency that guaranteed or reinsured the loan.
Any amount of the refund in excess of the unpaid balance of the loan
shall be first used to repay any student financial aid program from
which the student received benefits, in proportion to the amount of
the benefits received, and any remaining amount shall be paid to the
student.
(c) Within 10 days of the day on which the refund is made, the
institution shall notify the student in writing of the date on which
the refund was made, the amount of the refund, the method of
calculating the refund, and the name and address of the entity to
which the refund was sent. The following statement shall be placed at
the top of the notice in at least 10-point boldface type: "This
Notice is Important. Keep It For Your Records."
(d) Except for subdivision (a), this section shall not apply to a
student if both of the following occur:
(1) All of that student's tuition and fees are paid by a
third-party organization, such as a Job Training Partnership Act
agency, a regional occupational program or regional occupational
center, a private industry council, or a vocational rehabilitation
program, if the student is not obligated to repay the third-party
organization or does not lose time-limited educational benefits.
(2) The third-party organization and the institution have a
written agreement, entered into on or before the date the student
enrolls, that no refund will be due to the student if the student
withdraws prior to completion. The institution shall provide a copy
of the written agreement to the bureau. The institution shall
disclose to any student whose refund rights are affected by this
agreement, in all disclosures required to be given to the student by
this chapter, that the student is not entitled to a refund. It is the
intent of the Legislature that this paragraph not apply to any
student whose tuition and fees are paid with funds provided to the
third-party organization for the student's benefit as part of any
program that provides funds for training welfare recipients or that
is related to welfare reform.
94920.1. (a) An Except as provided in
subdivision (b) and Section 94919, an institution shall refund
the unused portion of tuition fees and other charges if a student
does not register for the period of attendance, withdraws at any time
prior to completion of the course period of
attendance , or otherwise fails to complete the period of
enrollment attendance as provided in
this section.
(b) For students enrolled in a degree program, the institution
shall provide a pro rata refund to students who completed 60 percent
or less of the course of instruction period
of attendance .
(c) Except as provided in subdivision (d), the refund shall be
calculated as follows:
(1) Deduct a reasonable registration fee not to exceed
one hundred fifty dollars ($150) from the total tuition
charge charge for the program or period of attendance,
as applicable .
(2) Divide this figure by the number of hours in the
program credit or clock hours in the program or period
of attendance .
(3) The quotient derived in paragraph (2) is the hourly charge
for the program .
(4) The amount owed by the student for the purposes of calculating
a refund is derived by multiplying the total hours attended by the
hourly charge for instruction and adding to that product the amount
of the registration fee specified in paragraph (1).
(5) The refund shall be any amount in excess of the figure derived
in paragraph (4) that was paid by the student.
(6) The refund amount shall be adjusted as provided in subdivision
(f) or (g) for equipment and as provided in subdivision (h) for
resident instruction, if applicable.
(d) For an educational service offered by distance learning, the
refund shall be calculated as follows:
(1) Deduct a reasonable registration fee not to exceed
one hundred dollars ($100) from the total tuition charge
charge for the program or period of attendance, as
applicable .
(2) Divide this figure by the number of lessons for which the
student has paid, but which the student has not completed and
submitted.
(2) Divide this figure by the number of lessons for the program or
period of attendance, as applicable.
(3) The quotient derived in paragraph (2) is the per lesson
charge.
(4) The amount owed by the student for the purposes of calculating
a refund is derived by multiplying the total number of lessons
for which the student has paid completed
by the per lesson charge calculated in paragraph (3) and adding
to that product the amount of the registration fee specified in
paragraph (1).
(5) The refund shall be any amount in excess of the figure derived
in paragraph (4) that was paid by the student.
(6) For the purposes of this section, an institution may specify
in an enrollment agreement the time limits within which a student is
required to complete the requirements of a distance learning program.
(e) Notwithstanding any provision in any agreement, all of the
following shall apply:
(1) All amounts that the student has paid, however denominated,
shall be deemed to have been paid for instruction, unless the student
has paid a specific charge for equipment set forth in the agreement
for the program of instruction.
(2) In the case of an educational service offered by distance
learning, all amounts that the student has paid, however denominated,
shall be deemed to have been paid for lessons unless the student has
paid a specific charge for equipment or resident instruction as set
forth in the agreement for the educational service.
(3) The total number of hours necessary to complete each lesson of
distance learning instruction shall be substantially equivalent to
each other lesson unless otherwise permitted by the bureau.
(4) An equal charge shall be deemed to have been made for each
class or credit hour of instruction or each lesson.
(f) If the institution specifies in the agreement a separate
charge for equipment that the student actually obtains and the
student returns that equipment in good condition, allowing for
reasonable wear and tear, within 30 days following the date of the
student's withdrawal, the institution shall refund the charge for the
equipment paid by the student. If the student fails to return that
equipment in good condition, allowing for reasonable wear and tear,
within 30 days following the date of the student's withdrawal, the
institution may offset against the refund calculated under
subdivision (a) subdivision (c) or (d), as applicable,
the documented cost to the institution of that equipment. The
student shall be liable for the amount, if any, by which the
documented cost for equipment exceeds the refund amount calculated
under subdivision (a) subdivision (c) or (d),
as applicable . For the purposes of this subdivision,
equipment cannot be returned in good condition if the equipment
cannot be reused because of clearly recognized health and sanitary
reasons and this fact is clearly and conspicuously disclosed in the
enrollment agreement.
(g) If the institution specifies in the enrollment
agreement a separate charge for equipment, which the student has not
obtained at the time of the student's withdrawal, the refund also
shall include the amount paid by the student that is allocable to
that equipment.
(h) If an agreement for educational service offered by distance
learning includes a separate charge for resident instruction, which
the student has not begun at the time of the student's withdrawal,
the institution shall refund the charge for the resident instruction
paid by the student. If the student withdraws from the educational
service after beginning the resident instruction, the institution
shall pay a refund equal to the amount the student paid for the
resident instruction multiplied by a fraction, the numerator of which
is the number of hours of resident instruction which the student has
not received but for which the student has paid, and the denominator
of which is the total number of hours of resident instruction for
which the student has paid.
(i) For the purpose of determining a refund under this section, a
student shall be deemed to have withdrawn from a program of
instruction when any of the following occurs:
(1) The student notifies the institution of the student's
withdrawal or of the date of the student's withdrawal, whichever is
later.
(2) The institution terminates the student's enrollment as
provided in the agreement.
(3) The student has failed to attend classes for a three-week
period. For the purpose of determining the amount of the refund, the
date of the student's withdrawal shall be deemed the last date of
recorded attendance. For the purposes of determining when the refund
must be paid pursuant to subdivision (a) of Section 94940
94920 , the student shall be deemed to have
withdrawn at the end of the three-week period.
(4) The student has failed to submit three consecutive lessons, or
has failed to submit a completed lesson within 60 days of its due
date as set by an educational service offered by distance learning.
For the purposes of this paragraph purpose of
determining the amount of the refund , the date of the student'
s withdrawal shall be deemed to be the date on which the student
submitted the last completed lesson. For the purposes of
determining when the refund must be paid pursuant to subdivision (a)
of Section 94920, the student shall be deemed to have
withdrawn at the end of the 60 days or the date the student failed to
timely submit the third consecutive lesson.
(j) An institution shall have the burden of proof to establish the
validity of the amount of every refund. The institution shall
maintain records for five years of all the evidence on which the
institution relies for the determination of refund amounts.
94921. A degree granting 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 program is
structured may petition the bureau for an alternative method of
calculating tuition refunds. The bureau shall determine the details
of an alternative refund policy, by regulation, and shall take into
consideration the contract for educational services
enrollment agreement entered into with the
student, as well as the length and character of the educational
program in determining standards for refunds. The decision of the
bureau shall be final.
94921.1. (a) For purposes of this section, any reference to
an institution also includes its representatives who are involved
with financial aid. All institutions subject to the approval
requirements of this chapter shall identify each student who makes an
application for, and receives, loan moneys other than loans provided
under a governmental student financial aid program, to the extent
that this information is reasonably available to the institution,
including, but not necessarily limited to, students for whom the
institution makes a referral to a lender, students for whom the
institution acts as lender or an agent of the lender
, students receiving loan proceeds from a lending entity in
which the institution has a financial interest, or students for whom
loan proceeds are received by the institution on behalf of the
student. For purposes of this section, "financial interest"
excludes ownership of mutual fund shares in a mutual fund that
directly owns shares of the lender.
(b) The institution shall ensure, either by providing the service
or by documenting that the service has been provided by the lending
entity, that each student has received information regarding the
student's rights and obligations related to loans at the time of
signing a promissory note or other loan document , and at
the end of a student's academic program. If a student leaves a
program prior to completion of the program, the institution shall
make an attempt to contact that student at the last known student
address to ensure the student has received information from the
lending entity or to provide information to the student itself, and
shall keep evidence of its attempt to do so.
(c) (1) An institution shall disclose to the student any formal
(c) An institution that participates in private student loan
programs and suggests those programs to its students or refers
students to those programs, shall do all of the following:
(1) Disclose to the student any formal
or informal relationship between the institution and the
lender, including, but not necessarily limited to, an agreement
between the institution and lender to make referrals to the
lender , to place that lender in a preferred status for
students of that institution, or to provide any benefit, financial or
otherwise, to the institution as a result of referral or student
borrowing from the lender , and shall disclose any
financial interest of the institution in the lending entity.
(2) Clearly and fully disclose to students the criteria and
process used to select the preferred lenders. For purposes of this
section, lenders shall be considered to be "preferred" or have a
"preferred status" if the institution recommends or suggests specific
lending institutions to its students or potential students to use to
obtain loans to finance
their education.
(3) Clearly and fully disclose to students and their families
their right and ability to choose a lender of their choice regardless
of whether or not the lender is a preferred lender.
(4) Clearly and fully disclose to students and their families all
of the students' options under Title IV of the Federal Higher
Education Act as amended, including information about any terms or
conditions of available loans under that title that are more
favorable to the student in terms of available loans and grants under
this title, before the institution refers or suggests that the
students use lenders making private educational loans.
(2)
(5) Disclosure under this subdivision shall be made,
prior to the loan proceeds being received by the student
signing of the indebtedne ss ,
whenever the institution has a reasonable opportunity to know of the
student's application for the loan.
(3)
(6) Disclosure under this subdivision shall be included
in the information and materials provided to the student at the time
of negotiation of the enrollment contract, whenever the institution
has a reasonable opportunity to know of the student's application for
that loan.
(4) A gift or other consideration of below one hundred dollars
($100) in total value exchanged between an institution and a lender
in a calendar year shall not be considered to create a financial
relationship.
(d) Institutions that participate in private student loan programs
shall not do any of the following:
(1) Receive a gift or other consideration or anything of value of
more than one hundred dollars ($100) in total value from a lender in
a calendar year.
(2) Provide preferred lender status to a lender unless the
decision is based solely on the best interests of the students and
their families.
(3) Receive anything of value for serving on an advisory board or
committee of any provider of student private loans.
(4) Give any lender preferred status unless the lender provides
assurances to the institution and to borrowers, who take out the
loans from such lenders, that the advertised benefits during any
deferral period and during repayment will continue to inure to the
benefit of borrowers regardless of whether the lender's loans are
sold.
(5) Give any lender preferred status in exchange for benefits
provided by the lender to the institution or to the institution's
students in connection with a different type of student loan.
(d)
(e) The institution shall keep sufficient records to
demonstrate compliance with this section.
(e) If it is determined that an institution failed to disclose a
financial relationship with, or a financial interest in, a lending
entity that provided a loan to a student at that institution as
required by this chapter, that loan shall be considered paid in full.
(f) Where federal statutes and regulations conflict with or exceed
the disclosure provisions of this chapter
section with respect to private educational loans , the federal
statutes and regulations shall take precedence for institutions
subject to approval under this chapter that are eligible to
participate in student financial aid programs under Title IV of the
federal Higher Education Act of 1965.
94921.5. (a) When a person executes an agreement obligating that
person to pay any money to an institution for a course program of
instruction or related equipment, the institution shall provide the
person with a document containing only the following notice:
""NOTICE OF CANCELLATION, REFUND AND OTHER
RIGHTS''
""1. You may cancel your contract for school,
without any penalty or obligations other than
payment of the registration fee of $(insert
amount) as described in the Notice of
Cancellation form that will be given to you
(insert 'on the first day of class' or 'with the
first lesson in a distance learning program,'
whichever is applicable).
without any penalty or obligations prior
to or
on (insert 'the fifth business day following
your first class session' or 'the first day of
class,' whichever is applicable) as
described in the Notice of Cancellation form
that will be given to you (insert 'on your first
day of class' or 'with the first lesson in a
distance learning program,' whichever is
applicable).
""Read the Notice of Cancellation form for an
explanation of your cancellation rights
""A different cancellation policy applies for
distance learning programs. Read the Notice of
Cancellation form for an explanation of your
c an cellation rights an
d responsibilities. If you
have lost your
If you have lost your Notice of Cancellation
form, ask the
school for
form, ask the school for another form.
""2. After the end of the cancellation period,
you also have the right to stop school at any
time, and you have the right to receive a refund
for the part of the course not taken. Your
based on the part of the program you completed.
Your refund rights are described in the contract.
If
contract. If you have lost your contract, ask
the school
for
the school for a description of the refund
policy.
policy.
""3. If the school closes before you graduate,
you may be entitled to a refund. Contact the
Bureau for Private Postsecondary Education
at the address and telephone number printed
below for information.
""4. If you have any complaints, questions, or
problems that you cannot work out with the
school, write or call the Bureau for Private
Postsecondary Education:
_________________________________________________
(insert mailing address, e-mail address, and
telephone number of the Bureau for Private
Postsecondary Education)''
(b) Except as otherwise provided in subdivision (a), the notice
required by subdivision (a) shall be printed in 10-point type or
larger in English and, if any solicitation or negotiation
leading to the agreement for a course of instruction was in a
language other than English, in that other language.
(c) The institution shall also make its refund policy known to
currently enrolled students.
(c)
(d) A copy of the notice, in each language in which the
notice was printed pursuant to subdivision (b), shall be posted at
all times in a conspicuous place at the main entrance of the
institution, in each admissions office, and in each room used for
instruction. The bureau may prescribe the size and format of the
posted notice. This subdivision does not apply to an institution that
exclusively offers distance learning programs.
(d)
(e) Upon request, the institution shall provide a
student with a copy of a Notice of Cancellation form, a written
description of the student's refund rights, a copy of the contract
executed by the student, a copy of documents relating to loans or
grants for the student, and a copy of any document executed or
initialed by the student.
(e)
(f) The bureau may provide for the inclusion of
additional information in the notice set forth in subdivision (a).
94921.7. An institution shall provide the student with two
cancellation forms at the first class attended by the student or with
the first lesson in a distance learning course submitted by the
student. The form shall be completed in duplicate, in 12-point
or larger type, captioned "Notice of Cancellation," and shall
contain the following statement:
""Notice of Cancellation
______________________________
(Date)
(Enter date of first class, date first lesson
received, or date first lesson was mailed,
(Insert date of first class, date first lesson
received, date first lesson was received
electronically, or date first lesson was mailed,
whichever is applicable)
""You may cancel this contract for school,
without any penalty or obligation (other than
payment of the $(insert amount of registration
fee) registration fee) by the date stated below.
without any penalty or obligation by the date
stated below.
""If you cancel, any payment you have made,
""If you cancel, any payment you have made and
other than the registration fee, and any
any negotiable instrument signed by you shall be
returned to you within 30 days following the
school's receipt of your cancellation
notice.
""But, if the school gave you any equipment, you
must return the equipment within 30 days of the
date you signed a cancellation notice. If you do
not return the equipment within this 30-day
period, the school may keep an amount out of
what you paid that equals the cost of the
equipment.
equipment, but no more than what the school can
show is the equipment's fair market value.
""The total amount charged for each item of
equipment shall be separately stated. The am
sch o unt
ol
charged for each item of equipment shall
not exceed the equipment's fair market value.
The school shall have the burden of proof to
establish the equipment's fair market value. The
school is required to refund any amount over
that as
that as provided above, and you may keep the
equipment.
equipment.
""To cancel the contract for school, mail or
deliver a signed and dated copy of this
cancellation notice, or any other written notice
to:
___________________________, at
________________________________.
(name of institution) (address of institution)
(Insert name of institution) (Insert address of
institution and e-mail address if available)
""NOT LATER THAN _____________________________
MIDNIGHT OF
_____________________________
(Enter midnight of the date applicable under
(Insert the date applicable under Section 949 3
1 9)
""I cancel the contract for school.
__________________________________
(Date)
__________________________________
(Student's signature)
__________________________________
""REMEMBER, YOU MUST CANCEL IN WRITING. You do
not have the right to cancel by just telephoning
the school or by not coming to class.
""If you have any complaints, questions, or
problems which you cannot work out with the
school, write or call the Bureau for Private
Postsecondary Education:
_________________________________________________
____
__________________
(insert mailing address, e-mail address, and
telephone number of the Bureau for Private
Postsecondary Education)''
94922. A student may not waive any provision of this
article chapter .
Article 13. Student Tuition Recovery Fund
94923. The Student Tuition Recovery Fund is continued in
existence. All assessments and fees collected pursuant to this
article shall be credited to this fund, along with any interest on
the moneys, for the administration of this article. Notwithstanding
Section 13340 of the Government Code, the moneys in the fund are
continuously appropriated to the bureau without regard to fiscal year
for the purposes of this chapter article
.
94923.1. This article applies to the following:
(a) Institutions, and students and former students of the
institutions, subject to this chapter.
(b) Institutions, and students and former students of the
institutions exempt under paragraph (7) of subdivision (a) of, and
under subdivision (b) of, Section 94874.
94923.2. It is the intent of the Legislature that, when a student
is enrolled in an institution that closes prior to the completion of
the student's program, the student shall have the option for a
teach-out at another institution approved by the bureau. The bureau
shall seek to promote teach-out opportunities wherever possible and
shall inform the student of his or her rights, including payment from
the fund, transfer opportunities, and available teach-out
opportunities, if any.
94923.4. In the event of the closure of an institution or a
teach-out, the bureau shall give priority, for payments from the
fund, to a student who transfers to another institution to complete a
course of study.
94923.5. The bureau shall assess an institution, except for an
institution that receives all of its students' total charges from
third-party payers, for the purpose of compliance with the provisions
of this chapter that are related to the Student Tuition
Recovery Fund. A "third-party payer," for the purposes of this
article, means an employer, government program, or other payer that
pays a student's total charges directly to the institution when no
separate agreement for the repayment of that payment exists between
the third-party payer and the student. A student who receives
third-party payer benefits for his or her institutional charges is
not eligible for benefits from the Student Tuition
Recovery Fund. A student who receives third-party payer benefits for
his or her total charge is not eligible for benefits from the Student
Tuition Recovery Fund.
94923.6. (a) (1) The amount assessed each institution shall be
calculated only for those students who are eligible to be reimbursed
from the fund and shall be based on the actual amount charged each of
these students for total tuition cost as the
total charge , regardless of the portion that is paid or
prepaid. The amount of the assessment on an institution shall
be determined in accordance with subdivisions (b) and (c).
(2) Each institution shall collect the amount assessed by the
bureau in the form of a Student Tuition Recovery Fund fee from its
new students, and except that an institution
may waive collection of the Student Tuition Recovery Fund fee and
assume the fee as a debt of the institution. Each institution shall
remit these fees to the bureau during the quarter immediately
following the quarter in which the fees were collected from the
students, or from loans funded on behalf of the students,
except that an institution may waive collection of the Student
Tuition Recovery Fund fee and assume the fee as a debt of the
institution. The fees collected by the institution shall be
students, or for an institution that assumes the fee as its own
debt, in the quarter immediately followin g the quarter in
which the institution collected any initial payment from or on
behalf of the student. For institutions that do not operate on the
quarter system, the institution shall remit these fees to the bureau
during the 10-week period immediately following the 10-week period in
which the fees or payments were collected unless the bureau
establishes a different time period for such institutions. The fees
collected by the institution shall be placed in a separate
bank or trust account and not commingled with any
other moneys until the institution remits those fees to the bureau.
If the institution assumes the fee, this need not be placed
in a separate account. The student's subsequent
disenrollment after the cancellation period shall not
relieve the institution of the obligation to pay the fee to the
bureau, nor be the basis for refund of the fee to the student. An
institution may not charge a fee of any kind for the collection of
the Student Tuition Recovery Fund fee. An institution shall refuse to
enroll a student who has not paid, or made provisions to pay, the
appropriate Student Tuition Recovery Fund fee.
(b) A Student Tuition Recovery Fund fee shall be set at the rate
of two dollars and fifty cents ($2.50) per thousand dollars of
tuition charged, rounded to the nearest thousand dollars.
(c) If, at any time, the balance in the Student Tuition Recovery
Fund is more than ten million dollars ($10,000,000), net of
after deducting the estimated liability
associated with any pending claims, the bureau may reduce
the amount of the assessment to a level less than may
reduce the amount of the Student Tuition Recovery Fund fees from
which the assessment is paid to less than two dollars and fifty
cents ($2.50) per thousand dollars of tuition charged, rounded to
the nearest thousand dollars, or suspend collection of the fee for a
period determined by the bureau, so as to maintain a fund balance of
between ten million dollars ($10,000,000) and twenty-five million
dollars ($25,000,000) after deducting the estimated liability
associated with any pending claims. . Prior to any reduction in
the assessment, the bureau shall demonstrate that amounts in the
fund would be reasonably sufficient to pay any pending or future
claims.
(d) (1) The bureau may by regulation levy
additional reasonable special assessments on an institution under
this section only if these assessments are required to ensure that
sufficient funds are available to satisfy the anticipated costs of
paying reasonably anticipated student claims.
(2) The bureau shall levy a special assessment when the balance in
the Student Tuition Recovery Fund falls below one million dollars
($1,000,000) as certified by the Secretary of State and Consumer
Services.
(3) The bureau shall provide at least 90 days' notice of an
impending special assessment to each affected institution. This
notice shall be posted on the bureau's Internet Web site and shall be
sent electronically to the affected institutions.
(e) The assessments, fees, and special assessments shall be paid
into the Student Tuition Recovery Fund, and the deposits shall be
allocated, except as otherwise provided for in this chapter, solely
for the payment of valid claims to students.
94923.7. Moneys deposited in the Student Tuition Recovery Fund
are exempt from execution and may not be the subject of litigation or
liability on the part of creditors of those institutions or
students.
94923.8. (a) The bureau shall adopt a procedure allowing for
payments to the fund to be made through online transactions and other
electronic means.
(b) The bureau shall adopt audit and accounting procedures to
ensure that institutions fully pay the amounts that are due to the
fund.
94923.9. The bureau's costs of administration of the Student
Tuition Recovery Fund authorized by this article shall not be paid
from the fund, but shall be paid from the Private Postsecondary
Education Fund.
94924. In the event of a closure by any approved institution
under this chapter, any assessments that have been made against those
institutions, but have not been paid into the fund, shall be
recovered. Any payments from the fund made to students on behalf of
any institution shall be recovered from that institution.
94925. In addition to civil remedies, the bureau may order an
institution to pay previously unpaid Student Tuition Recovery Fund
fees or to reimburse the bureau for any payments made from the fund
in connection with the institution. Before any order is made pursuant
to this section, the bureau shall provide written notice to the
institution and notice of the right to request a hearing within 30
days of the service of the notice. If a hearing is not requested
within 30 days of the service of the notice, the bureau may order
payment. If a hearing is requested, Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code shall apply, and the bureau shall have all the powers prescribed
in that chapter. Within 30 days after the effective date of the
issuance of the order, the bureau may enforce the order in the same
manner 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.
94925.5. Payment of Student Tuition Recovery Fund fees is due
within 30 days of the bureau's demand for payment. A penalty of 20
percent of the amount due shall be added for late payment.
94925.6. (a) A student or former student who was enrolled in an
institution, paid all or part of the total charge, and meets any of
the following conditions is eligible for reimbursement from the fund:
(1) The student suffered economic loss as a result of the closure
of the institution. For the purposes of this section, "closure"
includes the closure of the entire institution or of the site the
student is attending, the termination of either the distance learning
or residence portion of a distance learning program, and the
termination of a program for some or all of the students enrolled in
the program before the time these students were originally scheduled
to complete it, or before a student who has been continuously
enrolled in a program has been permitted to complete all the
educational services and classes that comprise the program. For
purposes of this paragraph, "closure" does not include the relocation
of a site to a new location within 20 miles where the student
continues to attend classes.
(2) The student obtained a final judgment against the institution
based on a violation of this chapter, and the student certifies that
the judgment cannot be collected after diligent collection efforts.
(3) The institution failed to pay refunds or charges on behalf of
a student to a third party for license fees or any other purposes, or
to provide equipment or materials for which a charge was collected
within 180 days before the closure of the institution.
(4) The institution's failure to pay or reimburse loan proceeds
under a federally guaranteed student loan program as required by law
or to pay or reimburse proceeds from whatever source received by the
institution prior to closure in excess of tuition and other costs.
(5) The commission of a breach or anticipatory breach of the
agreement for the program.
(6) A decline in the quality or value of the course of instruction
within the 30-day period before the closure of the institution or,
if the decline began before that period, the period of decline
determined by the bureau.
(7) The commission of a fraud by the institution during the
solicitation or enrollment of, or during the program participation
of, the student.
(b) A claim based on paragraph (1) or (6) of subdivision (a),
shall be filed within three years after a closure or after the
student or former student receives both the explanation of rights and
the claim form under Section 94925.7, whichever is later. A claim
based on paragraph (2) of subdivision (a), shall be filed within
three years after the judgment is final. A claim based on paragraph
(3), (4), (5), or (7) of subdivision (a), shall be filed within three
years of discovery.
(c) The time for filing a claim shall be tolled from the date a
student files a claim for a federal discharge or compromise on any
guaranteed loan received in connection with the student's program
until the decision accepting or rejecting the claim for discharge or
compromise becomes final. The time for filing a claim shall be tolled
from the date a student who has a private educational loan received
in connection with the student's program seeks a discharge from the
lender by asserting against the lender the claims and defenses he has
against the school until a decision on that assertion becomes final.
94925.7. (a) The institution shall provide to the bureau, at the
time of the institution's closure, the names and addresses of persons
who were students of an institution within 60 days prior to its
closure, and shall give notice to these students, within 30 days of
the institution's closure, of their rights under the fund and how to
apply for payment, and shall provide a claim application to each
student. If the institution fails to comply with this subdivision,
the bureau shall make its best effort to obtain the names and
addresses of these students and shall give them notice, within 90
days of the institution's closure, of their rights under the fund and
how to apply for reimbursement from the fund, and shall provide a
claim application. The notice and claim application required by this
subdivision shall be as described in subdivision (b).
(b) The bureau shall develop a form notice fully explaining a
student's rights in plain language, which shall be used by the
institution or the bureau to comply with the requirements of
subdivision (a). The form notice shall include, or be accompanied by,
a claim application and an explanation of how to complete the
application.
(c) The bureau shall determine and maintain a record of the names
of the persons in control at the institution which is closing ot has
been closed with unpaid funds.
94925.8. A student applying for payment from the Student Tuition
Recovery Fund shall file with the bureau in a form and manner
prescribed by the bureau.
94925.9. Whenever the bureau receives from a student a completed
application for payment from the Student Tuition Recovery Fund, the
bureau shall, as soon as is practicable, cause to be delivered to
that student a written notice specifying, in plain language, the
rights of a student under this article.
94925.10. (a) If the bureau pays a claim in accordance with this
article, the amount of the payment shall be (1) the greater of either
(A) the total student loan debt incurred by the student in
connection with attending the institution, including any interest,
fees and costs, including collection charges on the student loans, or
(B) the student's total charge for the program, less (2) the amount
of any refund, reimbursement, indemnification, restitution,
compensatory damages, settlement, debt forgiveness, discharge,
cancellation, or compromise, or any other benefit received by, or on
behalf of, the student before the bureau's payment of the claim in
connection with the student loan debt or total charge for the
program. The payment also shall include the amount the institution
collected and failed to pay to third parties on behalf of the student
for licensing fees or any other purpose. However, if the claim is
based solely on a final judgment being awarded, the amount of the
payment shall be the amount of the portion of the judgment
attributable to loss suffered by the student, but no more than the
amount otherwise allowed by this section.
(b) The amount of the payment determined under this subdivision is
not dependent on the amount of the refund to which the student would
have been entitled after a voluntary withdrawal.
(c) Upon payment of a claim, all of a student's rights against an
institution shall be deemed assigned to the bureau to the extent of
the amount of the payment.
94925.11. If the bureau denies a student's claim, or reduces the
amount of a claim, the bureau shall notify the student of the denial
or reduction and of the student's right to request a hearing within
60 days or any longer period permitted by the bureau. The 60 day
period for requesting a hearing may be extended for good cause on
request. If a hearing is not requested within 60 days or any
additional period reasonably requested by the student, the bureau's
decision shall be final. If a hearing is requested, Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code shall apply.
94925.12. Whenever reasonably possible, the bureau shall
negotiate with a lender, holder, guarantee agency, or the United
States Department of Education for the full compromise or discharge
of student loan obligations to relieve students of loss, and thereby
reduce the amount of student claims charged against the fund.
94925.13. The bureau, with the student's permission, may pay a
student's claim directly to the lender, holder, guarantee agency, or
the United States Department of Education under a federally
guaranteed student loan program only if the payment of the claim
fully satisfies all of the student's loan obligations related to
attendance at the institution for which the claim was filed.
94925.14. (a) Within 60 days of the bureau's receipt of a
completed application for payment, the bureau shall pay the claim
from the Student Tuition Recovery Fund or deny the claim. The bureau,
for good cause, may extend the time period for up to an additional
90 days to investigate the accuracy of the claim.
(b) The bureau may also delay the payment of a claim from the fund
pending the resolution of the bureau's attempt to obtain a
compromise or discharge of the claimant's student loan obligation
from the federal government, the guarantee agency, a private lender,
or their representatives.
(c) If any adverse action that is not stayed is taken against the
claimant, including the commencement of a civil or administrative
action, tax offset, the enforcement of a judgment, or the denial of
any government benefit, the bureau shall immediately pay a valid
claim without regard to any extension or delay the bureau previously
allowed or could otherwise allow.
Article 14. Orderly Institutional Closure and Teach-outs
94926. At least 30 days prior to closing, the institution shall
notify the bureau 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.
94927. An institution shall be considered in default of the
enrollment agreement when an educational program is discontinued or
canceled or the institution closes prior to completion of the
educational program. When an institution is in default, student
institutional charges may be refunded on a pro rata basis if the
bureau 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 student
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.
94927.5. Prior to closing, an institution shall provide the
bureau with pertinent student records, including transcripts, as
determined by the bureau by regulation.
Article 15. Completion and Placement Requirements
94928. An institution shall report annually to the bureau the
information required to be disclosed in the institution's "School
Performance Fact Sheet" statement pursuant to Section 94907.
94930. An institution shall use the data derived from the
regulatory standards or the accreditation standards in the School
Performance Fact Sheet, as established in Section 94907.
94929. Nothing contained in subdivision (a) of Section 94907
prevents an institution from disclosing to students, but not in the
School Performance Fact Sheet, the institution's completion,
employment, salary, or licensure numbers and rates, at the site and
for the program in which the student is interested, determined in
accordance with the accreditation standards applicable to the
institution or another California state agency's regulatory standards
applicable to the institution, if the institution complies with all
of the following:
(a) The other disclosures are not misleading and do not detract
attention from the information required to be disclosed by
subdivision (a) of Section 94907.
(b) The criteria used to determine the numbers and rates of other
disclosures must be disclosed in immediate proximity to the disclosed
numbers or rates determined by those other criteria.
(c) The disclosures required by subdivision (a) of Section 94907
are prominently disclosed before any other numbers or rates.
(d) The institution discloses to the bureau in its application and
its annual report any other disclosures about completion,
employment, salaries, or licensure passage that it has made during
the previous year, the format of any written disclosures used and any
it intends to make in the following year, along with the basis for
calculating the other applicable standards.
Article 16. Compliance, Enforcement, Process, and Penalties
94931. The bureau shall determine an institution's compliance
with the requirements of this chapter. When the bureau has
reason to believe that an institution may be out of compliance, it
may conduct an investigation of the institution. As part of its
compliance with the requirements of this chapter. If
the bureau has reason to believe that there may have been a violation
of this chapter or regulations adopted by the bureau, the bureau
shall conduct a timely investigation of the institution. As part of
its compliance program, the bureau may perform unannounced
inspections of institutions. The bureau shall have the authority to
require institutions to comply with requests for reports and other
documents necessary to complete audits, investigations, inquiries,
and inspections. If the bureau believes that there may have
been a violation of this chapter or regulations adopted by the
bureau, the bureau shall conduct a timely investigation of the
institution. and inspections. If the bureau
determines, after completing an investigation, that an institution
has violated any applicable laws or regulations, the bureau shall
take action against the institution pursuant to this article as it
deems appropriate.
94931.1. The bureau, with the assistance and guidance of, and in
cooperation with, the Attorney General, shall develop an enforcement
program. The enforcement program shall include, but not necessarily
be limited to, all of the following:
(a) Initial and periodic training of bureau staff.
(b) The enforcement process shall ensure that all institutions
subject to this chapter are in compliance with this chapter and that
the bureau takes appropriate action, pursuant to this article,
against institutions not in compliance.
(c) Site visits that include a review of records, inspection of
facilities, interviews of administrators, faculty and students, and
observation of class instruction.
(d) Audits, site visits, and investigations that are triggered by
complaints and where the bureau has reasonable cause to believe an
institution commits one or more acts constituting grounds for
discipline. The audits and site visits may be unannounced and may
include a qualitative review and assessment encompassing minimum
standards, interviews with administrators, faculty, staff, and
students, inspection of facilities, records, and recordkeeping, and
all records required to be maintained under subdivision (b) of
Section 94862, subdivisions (b) and (c) of Section 94899.7, and
Sections 94887 and 94920.1, or necessary to show compliance with this
chapter.
94931.3. The bureau shall promulgate regulations to implement the
intent of this article, including, but not limited to, the probation
and suspension of an approval to operate.
94932. The bureau may provide the institution with the
opportunity to remedy noncompliance, impose fines, place the
institution on probation, or suspend or revoke the institution's
approval to operate as it deems appropriate to the severity of an
institution's violations of this chapter, and the harm caused to
students. In addition to any other action that the bureau may take
under this chapter, the bureau may suspend or revoke an institution's
approval to operate because of the institution's failure to pay
Student Tuition Recovery Fund fees and pay penalties.
94933. As much as is practicable, the bureau shall seek to
resolve instances of noncompliance, including the use of alternative
dispute resolution procedures in Chapter 4.5 (commencing with Section
11420.10) of Part 1 of Division 3 of Title 2 of the Government Code.
94934. (a) As part of the compliance program, an institution
shall submit an annual report to the bureau, under penalty of
perjury, by July 1 of each year, or another date designated by the
bureau, 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 records required by subdivision (e) of Section 94897.5.
(5) The total charges for each educational program by period of
attendance.
(6) A statement indicating whether the institution is, or is not,
current in remitting Student Tuition Recovery Fund assessments.
(7) Additional information deemed by the bureau to be reasonably
required to ascertain compliance with this chapter.
(b) The bureau shall prescribe the annual report's format and
method of delivery.
94935. (a) Bureau staff who, during an inspection of an
institution, detect a minor violation of this chapter, or regulations
adopted pursuant to this chapter, shall issue a notice to comply
before leaving the institution. The bureau shall establish a
voluntary informal appeal process, by regulation, within one year of
the enactment of this chapter.
(b) An institution that receives a notice to comply shall have no
more than 30 days from the date of inspection to remedy the
noncompliance.
(c) Upon achieving compliance, the institution shall sign and
return the notice to comply to the bureau.
(d) A single notice to comply shall be issued listing separately
all the minor violations cited during the inspection.
(e) A notice to comply shall not be issued for any minor violation
that is corrected immediately in the presence of the bureau staff.
Immediate compliance may be noted in the inspection report, but the
institution shall not be subject to any further action by the bureau.
(f) A notice to comply shall be the only means the bureau shall
use to cite a minor violation discovered during an inspection.
The For minor violations, the bureau
shall not take any other enforcement action specified in this chapter
against an institution that has received a notice to comply if the
institution complies with this section.
(g) If an institution that receives a notice to comply pursuant to
subdivision (a) disagrees with one or more of the alleged minor
violations listed in the notice to comply, an institution shall send
the bureau a written notice of disagreement. The agency may take
administrative enforcement action to seek compliance with the
requirements of the notice to comply.
(h) If an institution fails to comply with a notice to comply
within the prescribed time, the bureau may take administrative
enforcement action.
(i) A minor violation is a deviation from the requirements of this
chapter, or regulations adopted pursuant to this chapter, that, in
the determination of the bureau, has not or reasonably will not
result in harm to students and is not either:
(1) Committed knowingly, willfully, or intentionally.
(2) A repeated violation or a violation committed by a
recalcitrant violator that has engaged in a pattern of neglect or
disregard for the requirements of this chapter.
94936. (a) As a consequence of an investigation, the bureau may
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 ten thousand dollars
($10,000) for each violation. The bureau 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.
(c) (1) The citation shall be in writing and describe the nature
of the violation and the specific provision of law or regulation that
is alleged to have been violated.
(2) The citation shall inform the institution of its right to
request a hearing in writing within 30 days from service of the
citation.
(3) If a hearing is requested, the bureau shall select an informal
hearing pursuant to Chapter 4.5 (commencing with Section 11445.10)
of Part 1 of Division 3 of Title 2 of the Government Code or a formal
hearing pursuant to Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code.
(4) If a hearing is not requested, payment of the administrative
fine is due 30 days from the date of service, and shall not
constitute an admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative
fine is ordered, the administrative fine is due 30 days from when the
final order is entered.
(6) The bureau may enforce the administrative fine as if it were a
money judgment pursuant to Title 9 (commencing with Section 680.10)
of Part 2 of the Code of Civil Procedure.
(d) All administrative fines shall be deposited in the Private
Postsecondary Education Administration Fund.
94937. (a) As a consequence of an investigation, the bureau 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) Material or repeated violations of this chapter or regulations
adopted pursuant to this chapter that have resulted in harm
to adopted pursuant to this chapter that resulted in
harm or may reasonably be expected to result in harm to
students.
(b) The bureau shall adopt regulations governing probation and
suspension of an approval to operate.
(c) The bureau may seek reimbursement for the costs of an
investigation pursuant to Section 125.3 of the Business and
Professions Code.
(d) An institution shall not be required to pay the same
cost of investigation to more than one agency.
(e) This section shall not apply to any minor violation of the
chapter.
94938. (a) If the bureau 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 Chapter 4.5 (commencing with
Section 11460.10) of Part 1 of Division 3 of Title 2 of the
Government Code.
(b) The bureau shall adopt regulations to give this subdivision
effect pursuant to Section 11460.20 of the Government Code.
94939. (a) The bureau 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.
94940. As a consequence of an adverse administrative action
by the bureau under this chapter against an institution, the
institution may request a hearing pursuant to Chapter 4.5 (commencing
with Section 11445.10) or Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code.
94941. (a) An individual who has cause to believe that an
institution has violated this chapter, or regulations adopted
pursuant to this chapter, may file a complaint with the bureau
against the institution. The complaint shall set forth the alleged
violation, and shall contain any other information as may be required
by the bureau.
(b) Taking into account the nature and seriousness of the alleged
violation, the bureau shall take action to ascertain the facts and to
verify the complaint. The action may include interviewing
institution management or employees, students and others about
the student's complaint, the institution's response, the student's
response to the institution's response or other relevant
circumstances , conducting an investigation, holding an
informal hearing, or other appropriate investigative activity.
(c) Upon the facts discovered, the bureau may take appropriate
adverse administrative enforcement action.
(d) If the bureau finds that an institution's violation of this
chapter has caused damage or loss to a student or group of students,
the bureau may order the institution to take
adverse administrative action including, but not limited to, an order
that the institution provide appropriate restitution to that
student or group of students.
(e) If the bureau determines that a minor violation occurred, the
only adverse actions that may be taken in connection with the minor
violation are those that would be allowed under Section 94935.
(f) A person entitled to bring an action for the recovery of
damages or other relief which is based on a violation of this chapter
shall not be required to file a complaint pursuant to this section,
or to pursue or exhaust any administrative process or remedy before
bringing the action.
94943. The following violations of this chapter are public
offenses:
(a) Knowingly Willfully 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 Willfully providing
false information to the bureau 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.
94943.5. (a) The Attorney General, a district attorney, or a city
attorney may make investigations as may be necessary to carry out
this chapter, including investigations of complaints. The bureau may
jointly bring actions as necessary to enforce this chapter, including
civil actions for injunctive relief.
(b) Nothing in this section or this chapter precludes the Attorney
General, a district attorney, or a city attorney from taking any
action each is otherwise lawfully authorized to take.
94944. An institution shall designate and maintain an agent for
service of process within this state, and provide the name, address,
and telephone number of the agent to the bureau. The bureau shall
furnish the agent's name, address, and telephone number to a person
upon request.
94945. Notwithstanding any other provision of law, the bureau
shall cite any person in control , and that person shall
be subject to a fine not to exceed fifty thousand dollars ($50,000),
for operating an institution without proper approval to operate
issued by the bureau pursuant to this chapter.
94945.1. (a) Each institution subject to this chapter shall be
deemed to have authorized the bureau or accrediting agency to provide
to the Attorney General, any district attorney or 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.
(b) Within 30 days of receiving written notice from the Attorney
General, any district attorney or city attorney, or the Student Aid
Commission, an accrediting agency shall provide, free of charge, the
requesting official with all documents or other material concerning
an institution accredited by that accrediting agency that are
designated specifically or by category in the written notice.
(c) If the Attorney General, any district attorney or city
attorney, or the Student Aid Commission is conducting a confidential
investigation of an institution and so informs the accrediting
agency, the accrediting agency shall not inform that institution of
the investigation.
(d) If an accrediting agency willfully fails to comply with this
section, the accrediting agency shall be liable for a civil penalty
of not less than two thousand five hundred dollars ($2,500) or more
than twenty-five thousand dollars ($25,000) for each violation.
Penalties awarded pursuant to this section shall be deposited in the
Private Postsecondary and Vocational Education Administration Fund or
any successor fund.
94945.2. If any person in control willfully violates
this chapter and the violation results in the closure of an
institution, that person shall pay to all students of the closed
institution full refunds or full compensation for actual damages
resulting from the closure that were not paid by the closed
institution. This section shall not apply to any minor violation
of this chapter.
94945.3. If the bureau determines after an investigation that an
institution has violated this chapter, the bureau may order the
institution to pay the costs and expenses incurred in connection with
the investigation and any civil or administrative proceeding
involving the violation that was investigated, including charges made
by the Attorney General for his or her services, and any expenses
incurred by a district attorney. Before any order for the payment of
costs and expenses is made under this section, the bureau shall
provide the institution with written notice, including notice of the
institution's right to request a hearing within 15 days of service of
the notice. If a hearing is not timely requested, the bureau may
order payment. If a hearing is requested, the bureau shall select an
informal hearing pursuant to Chapter 4.5 (commencing with Section
11445.10) 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.
Within 30 days after the effective date of the order, the bureau may
enforce the order as if it were a money judgment pursuant to Title 9
(commencing with Section 680.10) of Part 2 of the Code of Civil
Procedure. Alternatively, the bureau may seek the costs
and expenses allowed under this
section in a civil proceeding. An institution shall not be required
to pay the same costs and expenses incurred in connection with the
investigation and any civil or administrative proceeding to more than
one investigating agency.
94945.4. Nothing in this chapter shall be construed to stay,
limit, or preclude the enforcement of rights or remedies under
any other applicable statute or law .
Article 17. Severability
94946. The provisions of this chapter are severable. If any
provision of this chapter 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.
94946.5. This chapter shall be liberally construed to effectuate
its intent and achieve its purposes.
Article 18. Reporting
94947. The bureau shall provide regular updates to the
Legislature by participating in annual oversight hearings conducted
by the appropriate policy committees and budget
comm ittees and subcommittees of the Senate and
Assembly. The updates shall describe the bureau's progress in
adopting and enforcing regulations and the provisions of this
chapter.
94948. On or before July 1, 2013, the Office of the Legislative
Analyst shall conduct a comprehensive review of the bureau and report
to the Legislature and the Governor on the extent to which the
bureau has implemented the provisions of this chapter.
94948.5. (a) It is the intent of the Legislature that all of the
following occur:
(1) The Bureau of State Audits, through an audit request approved
by the Joint Legislative Audit Committee, conducts an audit pursuant
to Chapter 6.5 (commencing with Section 8543) of Division 1 of Title
2 of the Government Code that assesses the extent accreditation by
accrediting bodies provides sufficient assurance that the various
goals and requirements of this chapter are met, including, but not
limited to, the degree to which the accreditation process ensures the
quality and effectiveness of education at accredited institutions
and affords meaningful and effective student protections.
(2) In conducting the audit, the Bureau of State Audits protects
the confidentiality of information obtained from private individuals
and organizations pursuant to subdivision (a) of Section 8545 of the
Government Code.
(3) In conducting the audit, the Bureau of State Audits may
perform, but is not limited to, all of the following acts:
(A) Examine accrediting bodies that accredit institutions which
are subject to this chapter. These shall include a sample of regional
and national accrediting bodies. The auditor shall recognize that
the bureau by statute must approve accredited schools and rely on
that accreditation to the extent that those schools comply with this
chapter.
(B) To the extent deemed necessary to meet the audit standards the
Bureau of State Audits is required to comply with Section 8546.1 of
the Government Code, contacting and obtaining information from
institutions or programs operated by institutions accredited by the
accrediting bodies.
(4) The Bureau of State Audits issues a public report on the
results of the audit not later than December 31, 2011.
(b) It is further the intent of the Legislature that all of the
following occur:
(1) The accrediting bodies, and any of the institutions or
programs operated by those institutions accredited by those bodies,
provide the Bureau of State Audits with full access to any
information, records, or individuals that the State Auditor
determines are necessary to perform the audit specified in
subdivision (a), in a manner consistent with Section 8545.2 of the
Government Code.
(2) Upon receiving the information provided pursuant to paragraph
(1), the Bureau of State Audits protects the confidentiality of that
information as required by subdivision (a) of Section 8545, Section
8545.1, and subdivision (b) of Section 8545.2 of the Government Code.
In keeping information confidential as required by those provisions,
the Bureau of State Audits shall provide reasonable assurances to
the accrediting bodies and institutions that any information used to
support the conclusions and facts in the audit report will be used in
a manner that does not disclose confidential information that the
accrediting body or the institution reasonably claims is not subject
to public disclosure under state or federal law.
(3) If any of the entities described in paragraph (1) refuse to
provide the Bureau of State Audits access to the information,
records, or individuals the Bureau of State Audits determines are
necessary to perform the audit, the Bureau of State Audits notifies
the Legislature and the Governor, in writing, of that fact, and that
notification shall become a public record.
(c) It is the intent of the Legislature that this article be
amended before January 1, 2012, to reflect the findings and
recommendations of the report completed pursuant to this section.
Article 19. Termination
94949. It is the intent of the Legislature that the termination
of this chapter be resolved in a comprehensive measure that resolves
this issue for all boards and bureaus within the Department of
Consumer Affairs. The sunsetting of the prior law has been to the
detriment of both students and schools and should be avoided in the
future.
SEC. 20. Section 11105.8 is added to the Vehicle Code, to read:
11105.8. Beginning January 1, 2009, a person may not own,
operate, or provide instruction for an institution for the driving of
motortrucks of three or more axles that are more than 6,000 pounds
unladen weight unless all of the following conditions are met:
(a) The institution has been approved by the Department of Motor
Vehicles.
(b) The institution, at the time of application and thereafter,
maintains both of the following:
(1) Proof of compliance with liability insurance requirements that
are the same as those established by the Department of Motor
Vehicles for a driving institution owner, pursuant to Section 11103,
unless the Department of Motor Vehicles deems it necessary to
establish a higher level of insurance coverage.
(2) A satisfactory safety rating by the Department of the
California Highway Patrol is established pursuant to Division 14.8
(commencing with Section 34500).
(c) The institution, at all times, shall maintain the vehicles
used in driving training in safe mechanical condition. The
institution shall keep all records concerning the maintenance of the
vehicles.
(d) The driving instructions meet the requirements set forth in
Section 11104.
(e) Any other terms and conditions required by the Department of
Motor Vehicles to protect the public safety or to meet the
requirements of this chapter.
SEC. 21. Section 4980.36 of the Business and Professions Code, as
added by Section 11 of this act, shall become operative only if both
this bill and Senate Bill 1218 of the 2007-08 Regular Session are
enacted, and in that event, Section 4980.36 of the Business and
Professions Code becomes operative on January 1, 2009.
SEC. 22. Section 4980.37 of the Business and Professions Code, as
amended by Section 12 of this act, shall become operative only if
both this bill and Senate Bill 1218 of the 2007-08 Regular Session
are enacted and, in that event, Section 4980.37 of the Business and
Professions Code becomes operative on January 1, 2009.
SEC. 23. Section 4980.40 of the Business and Professions Code, as
amended by Section 13 of this act, shall become operative only if
this bill is enacted and SB 1218 of the 2007-08 Regular Session is
not enacted.
SEC. 24. 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.
SEC. 25. 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 extend and modify, as soon as possible, critical
provisions of law that govern the administration of private
postsecondary education, it is necessary that this act take effect
immediately.
SECTION 1. Section 101 of the Business and Professions Code is
amended to read:
101. The department is comprised of:
(a) The Dental Board of California.
(b) The Medical Board of California.
(c) The State Board of Optometry.
(d) The California State Board of Pharmacy.
(e) The Veterinary Medical Board.
(f) The California Board of Accountancy.
(g) The California Architects Board.
(h) The Bureau of Barbering and Cosmetology.
(i) The Board for Professional Engineers and Land Surveyors.
(j) The Contractors' State License Board.
(k) The Bureau for Private Postsecondary Education.
() The Structural Pest Control Board.
(m) The Bureau of Home Furnishings and Thermal Insulation.
(n) The Board of Registered Nursing.
(o) The Board of Behavioral Sciences.
(p) The State Athletic Commission.
(q) The Cemetery and Funeral Bureau.
(r) The State Board of Guide Dogs for the Blind.
(s) The Bureau of Security and Investigative Services.
(t) The Court Reporters Board of California.
(u) The Board of Vocational Nursing and Psychiatric Technicians.
(v) The Landscape Architects Technical Committee.
(w) The Bureau of Electronic and Appliance Repair.
(x) The Division of Investigation.
(y) The Bureau of Automotive Repair.
(z) The State Board of Registration for Geologists and
Geophysicists.
(aa) The Respiratory Care Board of California.
(ab) The Acupuncture Board.
(ac) The Board of Psychology.
(ad) The California Board of Podiatric Medicine.
(ae) The Physical Therapy Board of California.
(af) The Arbitration Review Program.
(ag) The Hearing Aid Dispensers Bureau.
(ah) The Physician Assistant Committee.
(ai) The Speech-Language Pathology and Audiology Board.
(aj) The California Board of Occupational Therapy.
(ak) The Osteopathic Medical Board of California.
(a) The Bureau of Naturopathic Medicine.
(am) The Dental Hygiene Committee of California.
(an) Any other boards, offices, or officers subject to its
jurisdiction by law.
SEC. 2. Section 115.5 is added to the Business and Professions
Code, to read:
115.5. The department may design and administer a process for the
approval of programs offered to veterans of the Armed Forces, and
for the approval and supervision of the institutions offering
programs to veterans, pursuant to any applicable act of Congress and
the regulations adopted pursuant to that act. For purposes of this
section, the department:
(a) Is designated as the state approving agency for veterans'
institutions and veterans' programs, and is authorized to be
reimbursed for its services in this regard.
(b) Has the same powers conferred on the Director of Education by
Article 6 (commencing with Section 12090) of Chapter 1 of Part 8 of
Division 1 of Title 1 of the Education Code, to enter into agreements
and cooperate with the United States Department of Veterans Affairs,
or any other federal agency, regarding approval of programs, and the
approval and supervision of institutions that offer programs to
veterans.
SEC. 3. Section 146 of the Business and Professions Code is
amended to read:
146. (a) Notwithstanding any other provision of law, a violation
of any code section listed in subdivision (c) or (d) is an infraction
subject to the procedures described in Sections 19.6 and 19.7 of the
Penal Code when:
(1) A complaint or a written notice to appear in court pursuant to
Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of
the Penal Code is filed in court charging the offense as an
infraction unless the defendant, at the time he or she is arraigned,
after being advised of his or her rights, elects to have the case
proceed as a misdemeanor, or
(2) The court, with the consent of the defendant and the
prosecution, determines that the offense is an infraction in which
event the case shall proceed as if the defendant has been arraigned
on an infraction complaint.
(b) Subdivision (a) does not apply to a violation of the code
sections listed in subdivisions (c) and (d) if the defendant has had
his or her license, registration, or certificate previously revoked
or suspended.
(c) The following sections require registration, licensure,
certification, or other authorization in order to engage in certain
businesses or professions regulated by this code:
(1) Sections 2052 and 2054.
(2) Section 2630.
(3) Section 2903.
(4) Section 3660.
(5) Sections 3760 and 3761.
(6) Section 4080.
(7) Section 4825.
(8) Section 4935.
(9) Section 4980.
(10) Section 4996.
(11) Section 5536.
(12) Section 6704.
(13) Section 6980.10.
(14) Section 7317.
(15) Section 7502 or 7592.
(16) Section 7520.
(17) Section 7617 or 7641.
(18) Subdivision (a) of Section 7872.
(19) Section 8016.
(20) Section 8505.
(21) Section 8725.
(22) Section 9681.
(23) Section 9840.
(24) Subdivision (c) of Section 9891.24.
(25) Section 19049.
(d) Institutions that are required to register with the Bureau for
Private Postsecondary Education pursuant to Chapter 8 (commencing
with Section 94800) of Part 59 of Division 10 of Title 3 of the
Education Code.
(e) Notwithstanding any other provision of law, a violation of any
of the sections listed in subdivision (c) or (d), which is an
infraction, is punishable by a fine of not less than two hundred
fifty dollars ($250) and not more than one thousand dollars ($1,000).
No portion of the minimum fine may be suspended by the court unless
as a condition of that suspension the defendant is required to submit
proof of a current valid license, registration, or certificate for
the profession or vocation which was the basis for his or her
conviction.
SEC. 4. Section 149 of the Business and Professions Code is
amended to read:
149. (a) If, upon investigation, an agency designated in
subdivision (e) has probable cause to believe that a person is
advertising in a telephone directory with respect to the offering or
performance of services, without being properly licensed by or
registered with the agency to offer or perform those services, the
agency may issue a citation under Section 148 containing an order of
correction that requires the violator to do both of the following:
(1) Cease the unlawful advertising.
(2) Notify the telephone company furnishing services to the
violator to disconnect the telephone service furnished to any
telephone number contained in the unlawful advertising.
(b) This action is stayed if the person to whom a citation is
issued under subdivision (a) notifies the agency in writing that he
or she intends to contest the citation. The agency shall afford an
opportunity for a hearing, as specified in Section 125.9.
(c) If the person to whom a citation and order of correction is
issued under subdivision (a) fails to comply with the order of
correction after that order is final, the agency shall inform the
Public Utilities Commission of the violation and the Public Utilities
Commission shall require the telephone corporation furnishing
services to that person to disconnect the telephone service furnished
to any telephone number contained in the unlawful advertising.
(d) The good faith compliance by a telephone corporation with an
order of the Public Utilities Commission to terminate service issued
pursuant to this section shall constitute a complete defense to any
civil or criminal action brought against the telephone corporation
arising from the termination of service.
(e) Subdivision (a) shall apply to the following boards, bureaus,
committees, commissions, or programs:
(1) The Bureau of Barbering and Cosmetology.
(2) The Funeral Directors and Embalmers Program.
(3) The Veterinary Medical Board.
(4) The Hearing Aid Dispensers Advisory Commission.
(5) The Landscape Architects Technical Committee.
(6) The California Board of Podiatric Medicine.
(7) The Respiratory Care Board of California.
(8) The Bureau of Home Furnishings and Thermal Insulation.
(9) The Bureau of Security and Investigative Services.
(10) The Bureau of Electronic and Appliance Repair.
(11) The Bureau of Automotive Repair.
(12) The Tax Preparers Program.
(13) The California Architects Board.
(14) The Speech-Language Pathology and Audiology Board.
(15) The Board for Professional Engineers and Land Surveyors.
(16) The Board of Behavioral Sciences.
(17) The State Board for Geologists and Geophysicists.
(18) The Structural Pest Control Board.
(19) The Acupuncture Board.
(20) The Board of Psychology.
(21) The California Board of Accountancy.
(22) The Bureau of Naturopathic Medicine.
(23) The Bureau for Private Postsecondary Education.
SEC. 5. Section 473.1 of the Business and Professions Code is
amended to read:
473.1. This chapter shall apply to all of the following:
(a) Every board, as defined in Section 22, that is scheduled to
become inoperative and to be repealed on a specified date as provided
by the specific act relating to the board.
(b) The Bureau for Private Postsecondary Education. For purposes
of this chapter, "board" includes the bureau.
(c) The Cemetery and Funeral Bureau.
SEC. 6. Section 2902 of the Business and Professions Code is
amended to read:
2902. As used in this chapter, unless the context clearly
requires otherwise and except as in this chapter expressly otherwise
provided the following definitions apply:
(a) "Licensed psychologist" means an individual to whom a license
has been issued pursuant to the provisions of this chapter, which
license is in force and has not been suspended or revoked.
(b) "Board" means the Board of Psychology.
(c) A person represents himself or herself to be a psychologist
when the person holds himself or herself out to the public by any
title or description of services incorporating the words "psychology,"
"psychological," "psychologist," "psychology consultation,"
"psychology consultant," "psychometry," "psychometrics" or
"psychometrist," "psychotherapy," "psychotherapist," "psychoanalysis,"
or "psychoanalyst," or when the person holds himself or herself out
to be trained, experienced, or an expert in the field of psychology.
(d) "Accredited," as used with reference to academic institutions,
means the University of California, the California State University,
or an institution that is accredited by a national or an applicable
regional accrediting agency recognized by the United States
Department of Education.
(e) "Approved," as used with reference to academic institutions,
means an institution having "approval to operate," as defined in
Section 94817 of the Education Code.
SEC. 7. Section 2914 of the Business and Professions Code is
amended to read:
2914. Each applicant for licensure shall comply with all of the
following requirements:
(a) Is not subject to denial of licensure under Division 1.5.
(b) Possess an earned doctorate degree (1) in psychology, (2) in
educational psychology, or (3) in education with the field of
specialization in counseling psychology or educational psychology.
Except as provided in subdivision (g), this degree or training shall
be obtained from an accredited university, college, or professional
school. The board shall make the final determination as to whether a
degree meets the requirements of this section.
No educational institution shall be denied recognition as an
accredited academic institution solely because its program is not
accredited by any professional organization of psychologists, and
nothing in this chapter or in the administration of this chapter
shall require the registration with the board by educational
institutions of their departments of psychology or their doctoral
programs in psychology.
An applicant for licensure trained in an educational institution
outside the United States or Canada shall demonstrate to the
satisfaction of the board that he or she possesses a doctorate degree
in psychology that is equivalent to a degree earned from a
regionally accredited university in the United States or Canada.
These applicants shall provide the board with a comprehensive
evaluation of the degree performed by a foreign credential evaluation
service that is a member of the National Association of Credential
Evaluation Services (NACES), and any other documentation the board
deems necessary.
(c) Have engaged for at least two years in supervised professional
experience under the direction of a licensed psychologist, the
specific requirements of which shall be defined by the board in its
regulations, or under suitable alternative supervision as determined
by the board in regulations duly adopted under this chapter, at least
one year of which shall be after being awarded the doctorate in
psychology. If the supervising licensed psychologist fails to provide
verification to the board of the experience required by this
subdivision within 30 days after being so requested by the applicant,
the applicant may provide written verification directly to the
board.
If the applicant sends verification directly to the board, the
applicant shall file with the board a declaration of proof of
service, under penalty of perjury, of the request for verification. A
copy of the completed verification forms shall be provided to the
supervising psychologist and the applicant shall prove to the board
that a copy has been sent to the supervising psychologist by filing a
declaration of proof of service under penalty of perjury, and shall
file this declaration with the board when the verification forms are
submitted.
Upon receipt by the board of the applicant's verification and
declarations, a rebuttable presumption affecting the burden of
producing evidence is created that the supervised, professional
experience requirements of this subdivision have been satisfied. The
supervising psychologist shall have 20 days from the day the board
receives the verification and declaration to file a rebuttal with the
board.
The authority provided by this subdivision for an applicant to
file written verification directly shall apply only to an applicant
who has acquired the experience required by this subdivision in the
United States.
The board shall establish qualifications by regulation for
supervising psychologists and shall review and approve applicants for
this position on a case-by-case basis.
(d) Take and pass the examination required by Section 2941 unless
otherwise exempted by the board under this chapter.
(e) Show by evidence satisfactory to the board that he or she has
completed training in the detection and treatment of alcohol and
other chemical substance dependency. This requirement applies only to
applicants who matriculate on or after September 1, 1985.
(f) (1) Show by evidence satisfactory to the board that he or she
has completed coursework in spousal or partner abuse assessment,
detection, and intervention. This requirement applies to applicants
who began graduate training during the period commencing on January
1, 1995, and ending on December 31, 2003.
(2) An applicant who began graduate training on or after January
1, 2004, shall show by evidence satisfactory to the board that he or
she has completed a minimum of 15 contact hours of coursework in
spousal or partner abuse assessment, detection, and intervention
strategies, including knowledge of community resources, cultural
factors, and same gender abuse dynamics. An applicant may request an
exemption from this requirement if he or she intends to practice in
an area that does not include the direct provision of mental health
services.
(3) Coursework required under this subdivision may be satisfactory
if taken either in fulfillment of other educational requirements for
licensure or in a separate course. This requirement for coursework
shall be satisfied by, and the board shall accept in satisfaction of
the requirement, a certification from the chief academic officer of
the educational institution from which the applicant graduated that
the required coursework is included within the institution's required
curriculum for graduation.
(g) An applicant holding a doctoral degree in psychology from an
approved institution is deemed to meet the requirements of this
section if all of the following are true:
(1) The approved institution offered a doctoral degree in
psychology designed to prepare students for a license to practice
psychology and was approved by the Bureau for Private Postsecondary
and Vocational Education on or before July 1, 1999.
(2) The approved institution has not, since July 1, 1999, had a
change of location, as described in Section 94822 of the Education
Code.
(3) The approved institution is not a franchise institution, as
defined in Section 94841.5 of the Education Code.
SEC. 8. Section 4038 of the Business and Professions Code is
amended to read:
4038. (a) "Pharmacy technician" means an individual who assists a
pharmacist in a pharmacy in the performance of his or her pharmacy
related duties, as specified in Section 4115.
(b) A "pharmacy technician trainee" is a person who is enrolled in
a pharmacy technician training program operated by a California
public postsecondary education institution or by a private
postsecondary vocational institution approved by the Bureau for
Private Postsecondary Education.
SEC. 9. Section 4841.5 of the Business and Professions Code is
amended to read:
4841.5. To be eligible to take the written and practical
examination for registration as a registered veterinary technician,
the applicant shall:
(a) Be at least 18 years of age.
(b) Furnish satisfactory evidence of graduation from, at minimum,
a two-year curriculum in veterinary technology, in a college or other
postsecondary institution approved by the board, or the equivalent
thereof as determined by the board. In the case of a private
postsecondary institution, the institution shall also be approved by
the Bureau for Private Postsecondary Education.
SEC. 10. Section 4939 of the Business and Professions Code is
amended to read:
4939. (a) The board shall establish standards for the approval of
schools and colleges offering education and training in the practice
of an acupuncturist, including standards for the faculty in those
schools and colleges and tutorial programs, completion of which will
satisfy the requirements of Section 4938.
(b) Standards for the approval of training programs shall include
a minimum of 3,000 hours of study in curriculum pertaining to the
practice of an acupuncturist. This subdivision shall apply to all
students entering programs on or after January 1, 2005.
(c) Within three years of initial approval by the board, each
program so approved by the board shall receive full institutional
approval under Article 3.5 (commencing with Section 94760) of Chapter
7 of Part 59 of the Education Code as it existed on June 20, 2007,
or Chapter 8 (commencing with Section 94800) of Part 59 of Division
10 of Title 3 of the Education Code, in the field of traditional
Asian medicine, or in the case of institutions located outside of
this state, approval by the appropriate governmental educational
authority, or the approval of the program shall automatically lapse.
SEC. 11. Section 4980.36 is added to the Business and Professions
Code, to read:
4980.36. (a) This section applies to the following:
(1) Applicants for licensure or registration who begin graduate
study before August 1, 2012, and do not complete that study on or
before December 31, 2018.
(2) Applicants for licensure or registration who begin graduate
study before August 1, 2012, and who graduate from a degree program
that meets the requirements of this section.
(3) Applicants for licensure or registration who begin graduate
study on or after August 1, 2012.
(b) To qualify for a license or registration, applicants shall
possess a doctor's or master's degree meeting the requirements of
this section in marriage, family, and child counseling, marital and
family therapy, psychology, clinical psychology, counseling
psychology, or counseling with an emphasis in either marriage,
family, and child counseling or marriage and family therapy, obtained
from a school, college, or university approved by the Bureau for
Private Postsecondary and Education or accredited by either the
Commission on the Accreditation of Marriage and Family Therapy
Education or a regional accrediting agency recognized by the United
States Department of Education. The board has the authority to make
the final determination as to whether a degree meets all
requirements, including, but not limited to, course requirements,
regardless of accreditation or approval.
(c) A doctor's or master's degree program that qualifies for
licensure or registration shall do the following:
(1) Integrate all of the following throughout its curriculum:
(A) Marriage and family therapy principles.
(B) The principles of mental health recovery-oriented care and
methods of service delivery in recovery-oriented practice
environments, among others.
(C) An understanding of various cultures and the social and
psychological implications of socioeconomic position, including an
understanding of how poverty and social stress impact an individual's
mental health and recovery.
(2) Allow for innovation and individuality in the education of
marriage and family therapists.
(3) Encourage students to develop the personal qualities that are
intimately related to effective practice, including, but not limited
to, integrity, sensitivity, flexibility, insight, compassion, and
personal presence.
(4) Permit an emphasis or specialization that may address any one
or more of the unique and complex array of human problems, symptoms,
and needs of Californians served by marriage and family therapists.
(5) Provide students with the opportunity to meet with various
consumers and family members of consumers of mental health services
to enhance understanding of their experience of mental illness,
treatment, and recovery.
(d) The degree described in subdivision (b) shall contain no less
than 60 semester or 90 quarter units of instruction that includes,
but is not limited to, the following requirements:
(1) Both of the following:
(A) No less than 12 semester or 18 quarter units of coursework in
theories, principles, and methods of a variety of psychotherapeutic
orientations directly related to marriage and family therapy and
marital and family systems approaches to treatment and how these
theories can be applied therapeutically with individuals, couples,
families, adults, children, adolescents, and groups to improve,
restore, or maintain healthy relationships.
(B) Practicum that involves direct client contact, as follows:
(i) A minimum of six semester or nine quarter units of practicum
in a supervised clinical placement that provides supervised fieldwork
experience.
(ii) A minimum of 225 hours of face-to-face experience counseling
individuals, couples, families, or groups. Up to 75 of those hours
may be gained performing client centered advocacy, as defined in
Section 4980.03.
(iii) A student shall be enrolled in a practicum course while
counseling clients.
(iv) The practicum shall provide training in all of the following
areas:
(I) Applied use of theory and psychotherapeutic techniques.
(II) Assessment, diagnosis, and prognosis.
(III) Treatment of individuals and premarital, couple, family, and
child relationships, including trauma and abuse, dysfunctions,
healthy functioning, health promotion, illness prevention, and
working with families.
(IV) Professional writing, including documentation of services,
treatment plans, and progress notes.
(V) How to connect people with resources that deliver the quality
of services and support needed in the community.
(v) Educational institutions are encouraged to design the
practicum required by this subparagraph to include marriage and
family therapy experience in low-income and multicultural mental
health settings.
(2) Instruction in all of the following:
(A) Diagnosis, assessment, prognosis, and treatment of mental
disorders, including severe mental disorders, evidence-based
practices, psychological testing, psychopharmacology, and promising
mental health practices that are evaluated in peer reviewed
literature.
(B) Developmental issues from infancy to old age, including
instruction in all of the following areas:
(i) The effects of developmental issues on individuals, couples,
and family relationships.
(ii) The psychological, psychotherapeutic, and health implications
of developmental issues and their effects.
(iii) Aging and its biological, social, cognitive, and
psychological aspects.
(iv) A variety of cultural understandings of human development.
(v) The understanding of human behavior within the social context
of socioeconomic status and other contextual issues affecting social
position.
(vi) The understanding of human behavior within the social context
of a representative variety of the cultures found within California.
(vii) The understanding of the impact that personal and social
insecurity, social stress, low educational levels, inadequate
housing, and malnutrition have on human development.
(C) The broad range of matters and life events that may arise
within marriage and family relationships and within a variety of
California cultures, including instruction in all of the following:
(i) Child abuse assessment and reporting.
(ii) Spousal or partner abuse assessment, detection, intervention
strategies, and same-gender abuse dynamics.
(iii) Cultural factors relevant to abuse of partners and family
members.
(iv) Childbirth, child rearing, parenting, and stepparenting.
(v) Marriage, divorce, and blended families.
(vi) Long-term care.
(vii) End of life and grief.
(viii) Poverty and deprivation.
(ix) Financial and social stress.
(x) Effects of trauma.
(xi) The psychological, psychotherapeutic, community, and health
implications of the matters and life events described in clauses (i)
to (x), inclusive.
(D) Cultural competency and sensitivity, including a familiarity
with the racial, cultural, linguistic, and ethnic backgrounds of
persons living in California.
(E) Multicultural development and cross-cultural interaction,
including experiences of race, ethnicity, class, spirituality, sexual
orientation, gender, and disability, and their incorporation into
the psychotherapeutic process.
(F) An understanding of the effects of socioeconomic status
on treatment and available resources.
(G) An understanding of resilience, including the personal and
community qualities that enable persons to cope with adversity,
trauma, tragedy, threats, or other stresses.
(H) Human sexuality, including the study of physiological,
psychological, and social cultural variables associated with sexual
behavior, gender identity, and the assessment and treatment of
psychosexual dysfunction.
(I) Substance abuse, cooccurring disorders, and addiction,
including, but not limited to, instruction in all of the following:
(i) The definition of substance use disorders, cooccurring
disorders, and addiction. For purposes of this subparagraph,
"cooccurring disorders" means a mental illness and substance abuse
diagnosis occurring simultaneously in an individual.
(ii) Medical aspects of substance use disorders and cooccurring
disorders.
(iii) The effects of psychoactive drug use.
(iv) Current theories of the etiology of substance abuse and
addiction.
(v) The role of persons and systems that support or compound
substance abuse and addiction.
(vi) Major approaches to identification, evaluation, and treatment
of substance use disorders, cooccurring disorders, and addiction,
including, but not limited to, best practices.
(vii) Legal aspects of substance abuse.
(viii) Populations at risk with regard to substance use disorders
and cooccurring disorders.
(ix) Community resources offering screening, assessment,
treatment, and followup for the affected person and family.
(x) Recognition of substance use disorders, cooccurring disorders,
and addiction, and appropriate referral.
(xi) The prevention of substance use disorders and addiction.
(J) California law and professional ethics for marriage and family
therapists, including instruction in all of the following areas of
study:
(i) Contemporary professional ethics and statutory, regulatory,
and decisional laws that delineate the scope of practice of marriage
and family therapy.
(ii) The therapeutic, clinical, and practical considerations
involved in the legal and ethical practice of marriage and family
therapy, including, but not limited to, family law.
(iii) The current legal patterns and trends in the mental health
professions.
(iv) The psychotherapist-patient privilege, confidentiality, the
patient dangerous to self or others, and the treatment of minors with
and without parental consent.
(v) A recognition and exploration of the relationship between a
practitioner's sense of self and human values and his or her
professional behavior and ethics.
(vi) Differences in legal and ethical standards for different
types of work settings.
(vii) Licensing law and licensing process.
(e) The degree described in subdivision (b) shall, in addition to
meeting the requirements of subdivision (d), include instruction in
case management, systems of care for the severely mentally ill,
public and private services and supports available for the severely
mentally ill, community resources for persons with mental illness and
for victims of abuse, disaster and trauma response, advocacy for the
severely mentally ill, and collaborative treatment. This instruction
may be provided either in credit level coursework or through
extension programs offered by the degree-granting institution.
(f) The changes made to law by this section are intended to
improve the educational qualifications for licensure in order to
better prepare future licentiates for practice, and are not intended
to expand or restrict the scope of practice for marriage and family
therapists.
SEC. 12. Section 4980.37 of the Business and Professions Code is
amended to read:
4980.37. (a) This section applies to applicants for licensure or
registration who begin graduate study before August 1, 2012, and
complete that study on or before December 31, 2018. Those applicants
may alternatively qualify under paragraph (2) of subdivision (a) of
Section 4980.36.
(b) To qualify for a license or registration, applicants shall
possess a doctor's or master's degree in marriage, family, and child
counseling, marital and family therapy, psychology, clinical
psychology, counseling psychology, or counseling with an emphasis in
either marriage, family, and child counseling or marriage and family
therapy, obtained from a school, college, or university accredited by
a regional accrediting agency recognized by the United States
Department of Education or approved by the Bureau for Private
Postsecondary Education. The board has the authority to make the
final determination as to whether a degree meets all requirements,
including, but not limited to, course requirements, regardless of
accreditation or approval. In order to qualify for licensure pursuant
to this section, a doctor's or master's degree program shall be a
single, integrated program primarily designed to train marriage and
family therapists and shall contain no less than 48 semester or 72
quarter units of instruction. This instruction shall include no less
than 12 semester units or 18 quarter units of coursework in the areas
of marriage, family, and child counseling, and marital and family
systems approaches to treatment. The coursework shall include all of
the following areas:
(1) The salient theories of a variety of psychotherapeutic
orientations directly related to marriage and family therapy, and
marital and family systems approaches to treatment.
(2) Theories of marriage and family therapy and the manner in
which those theories may be utilized in order to intervene
therapeutically with couples, families, adults, children, and groups.
(3) Developmental issues and life events from infancy to old age
and their effect on individuals, couples, and family relationships.
This may include coursework that focuses on specific family life
events and the psychological, psychotherapeutic, and health
implications that arise within couples and families, including, but
not limited to, childbirth, child rearing, childhood, adolescence,
adulthood, marriage, divorce, blended families, stepparenting, and
geropsychology.
(4) A variety of approaches to the treatment of children. The
board shall, by regulation, set forth the subjects of instruction
required in this subdivision.
(c) (1) In addition to the 12 semester or 18 quarter units of
coursework specified in subdivision (b), the doctor's or master's
degree program shall contain not less than six semester or nine
quarter units of supervised practicum in applied psychotherapeutic
technique, assessments, diagnosis, prognosis, and treatment of
premarital, couple, family, and child relationships, including
dysfunctions, healthy functioning, health promotion, and illness
prevention, in a supervised clinical placement that provides
supervised fieldwork experience within the scope of practice of a
marriage and family therapist.
(2) For applicants who enrolled in a degree program on or after
January 1, 1995, the practicum shall include a minimum of 150 hours
of face-to-face experience counseling individuals, couples, families,
or groups.
(3) The practicum hours shall be considered as part of the 48
semester or 72 quarter unit requirement.
(d) As an alternative to meeting the qualifications specified in
subdivision (b), the board shall accept as equivalent degrees those
master's or doctor's degrees granted by educational institutions
whose degree program is approved by the Commission on Accreditation
for Marriage and Family Therapy Education.
(e) In order to provide an integrated course of study and
appropriate professional training, while allowing for innovation and
individuality in the education of marriage and family therapists, a
degree program that meets the educational qualifications for
licensure or registration under this section shall do all of the
following:
(1) Provide an integrated course of study that trains students
generally in the diagnosis, assessment, prognosis, and treatment of
mental disorders.
(2) Prepare students to be familiar with the broad range of
matters that may arise within marriage and family relationships.
(3) Train students specifically in the application of marriage and
family relationship counseling principles and methods.
(4) Encourage students to develop those personal qualities that
are intimately related to the counseling situation such as integrity,
sensitivity, flexibility, insight, compassion, and personal
presence.
(5) Teach students a variety of effective psychotherapeutic
techniques and modalities that may be utilized to improve, restore,
or maintain healthy individual, couple, and family relationships.
(6) Permit an emphasis or specialization that may address any one
or more of the unique and complex array of human problems, symptoms,
and needs of Californians served by marriage and family therapists.
(7) Prepare students to be familiar with cross-cultural mores and
values, including a familiarity with the wide range of racial and
ethnic backgrounds common among California's population, including,
but not limited to, Blacks, Hispanics, Asians, and Native Americans.
(f) Educational institutions are encouraged to design the
practicum required by this section to include marriage and family
therapy experience in low-income and multicultural mental health
settings.
(g) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2019, deletes or extends that
date.
SEC. 13. Section 4980.40 of the Business and Professions Code is
amended to read:
4980.40. To qualify for a license, an applicant shall have all
the following qualifications:
(a) Applicants shall possess a doctor's or master's degree in
marriage, family, and child counseling, marital and family therapy,
psychology, clinical psychology, counseling psychology, or counseling
with an emphasis in either marriage, family, and child counseling or
marriage and family therapy, obtained from a school, college, or
university accredited by a regional accrediting agency recognized by
the United States Department of Education, or approved by the Bureau
for Private Postsecondary Education. The board has the authority to
make the final determination as to whether a degree meets all
requirements, including, but not limited to, course requirements,
regardless of accreditation or approval. In order to qualify for
licensure pursuant to this subdivision, a doctor's or master's degree
program shall be a single, integrated program primarily designed to
train marriage and family therapists and shall contain no less than
48 semester or 72 quarter units of instruction. The instruction shall
include no less than 12 semester units or 18 quarter units of
coursework in the areas of marriage, family, and child counseling,
and marital and family systems approaches to treatment.
The coursework shall include all of the following areas:
(1) The salient theories of a variety of psychotherapeutic
orientations directly related to marriage and family therapy, and
marital and family systems approaches to treatment.
(2) Theories of marriage and family therapy and how they can be
utilized in order to intervene therapeutically with couples,
families, adults, children, and groups.
(3) Developmental issues and life events from infancy to old age
and their effect upon individuals, couples, and family relationships.
This may include coursework that focuses on specific family life
events and the psychological, psychotherapeutic, and health
implications that arise within couples and families, including, but
not limited to, childbirth, child rearing, childhood, adolescence,
adulthood, marriage, divorce, blended families, stepparenting, and
geropsychology.
(4) A variety of approaches to the treatment of children.
The board shall, by regulation, set forth the subjects of
instruction required in this subdivision.
(b) (1) In addition to the 12 semester or 18 quarter units of
coursework specified above, the doctor's or master's degree program
shall contain not less than six semester or nine quarter units of
supervised practicum in applied psychotherapeutic techniques,
assessment, diagnosis, prognosis, and treatment of premarital,
couple, family, and child relationships, including dysfunctions,
healthy functioning, health promotion, and illness prevention, in a
supervised clinical placement that provides supervised fieldwork
experience within the scope of practice of a marriage and family
therapist.
(2) For applicants who enrolled in a degree program on or after
January 1, 1995, the practicum shall include a minimum of 150 hours
of face-to-face experience counseling individuals, couples, families,
or groups.
(3) The practicum hours shall be considered as part of the 48
semester or 72 quarter unit requirement.
(c) As an alternative to meeting the qualifications specified in
subdivision (a), the board shall accept as equivalent degrees, those
master's or doctor's degrees granted by educational institutions
whose degree program is approved by the Commission on Accreditation
for Marriage and Family Therapy Education.
(d) All applicants shall, in addition, complete the coursework or
training specified in Section 4980.41.
(e) All applicants shall be at least 18 years of age.
(f) All applicants shall have at least two years of experience
that meet the requirements of Section 4980.43.
(g) The applicant shall pass a board administered written or oral
examination or both types of examinations, except that an applicant
who passed a written examination and who has not taken and passed an
oral examination shall instead be required to take and pass a
clinical vignette written examination.
(h) The applicant shall not have committed acts or crimes
constituting grounds for denial of licensure under Section 480. The
board shall not issue a registration or license to any person who has
been convicted of a crime in this or another state or in a territory
of the United States that involves sexual abuse of children or who
is required to register pursuant to Section 290 of the Penal Code or
the equivalent in another state or territory.
(i) An applicant for licensure trained in an educational
institution outside the United States shall demonstrate to the
satisfaction of the board that he or she possesses a qualifying
degree that is equivalent to a degree earned from a school, college,
or university accredited by the Western Association of Schools and
Colleges, or approved by the Bureau of Private Postsecondary
Education. These applicants shall provide the board with a
comprehensive evaluation of the degree performed by a foreign
credential evaluation service that is a member of the National
Association of Credential Evaluation Services (NACES), and shall
provide any other documentation the board deems necessary.
SEC. 14. Section 7313 of the Business and Professions Code is
amended to read:
7313. (a) (1) To ensure compliance with the laws and regulations
of this chapter, the board's executive officer and authorized
representatives shall, except as provided by Section 159.5, have
access to, and shall inspect, any establishment or mobile unit during
business hours or at any time in which barbering, cosmetology, or
electrolysis are being performed. It is the intent of the Legislature
that inspections be conducted on Saturdays and Sundays as well as
weekdays, if collective bargaining agreements and civil service
provisions permit.
(2) The board shall maintain a program of random and targeted
inspections of establishments to ensure compliance with applicable
laws relating to the public health and safety and the conduct and
operation of establishments. The board or its authorized
representatives shall inspect establishments to reasonably determine
compliance levels and to identify market conditions that require
targeted enforcement. The board shall not reduce the number of
employees assigned to perform random inspections, targeted
inspections, and investigations relating to field operations below
the level funded by the annual Budget Act and described in supporting
budget documents, and shall not redirect funds or personnel years
allocated to those inspection and investigation purposes to other
purposes.
(b) To ensure compliance with health and safety requirements
adopted by the board, the executive officer and authorized
representatives shall, except as provided in Section 159.5, have
access to, and shall inspect the premises of, all schools in which
the practice of barbering, cosmetology, or electrolysis is performed
on the public. Notices of violation shall be issued to schools for
violations of regulations governing conditions related to the health
and safety of patrons. Each notice shall specify the section violated
and a timespan within which the violation must be corrected. A copy
of the notice of violation shall be provided to the Bureau for
Private Postsecondary Education.
(c) With prior written authorization from the board or its
executive officer, any member of the board may enter and visit, in
his or her capacity as a board member, any establishment, during
business hours or at any time when barbering, cosmetology, or
electrolysis is being performed. The visitation by a board member
shall be for the purpose of conducting official board business, but
shall not be used as a basis for any licensing disciplinary action by
the board.
SEC. 15. Section 7362 of the Business and Professions Code is
amended to read:
7362. (a) A school approved by the board is one which is approved
by the Bureau for Private Postsecondary Education, or a public
school in this state, and provides a course of instruction approved
by the board.
(b) The board shall determine by regulation the required subjects
of instruction to be completed in all approved courses, including the
minimum hours of technical instruction and minimum number of
practical operations for each subject, and shall determine how much
training is required before a student may begin performing services
on paying patrons.
SEC. 16. Section 7395.1 of the Business and Professions Code is
amended to read:
7395.1. (a) A student who is enrolled in a school of cosmetology
approved by the Bureau for Private Postsecondary Education in a
course approved by the board may, upon completion of a minimum of 60
percent of the clock hours required for graduation in the course,
work as an unpaid extern in a cosmetology establishment participating
in the educational program of the school of cosmetology.
(b) A person working as an extern shall receive clock hour credit
toward graduation, but that credit shall not exceed eight hours per
week and shall not exceed 10 percent of the total clock hours
required for completion of the course.
(c) The externship program shall be conducted in cosmetology
establishments meeting all of the following criteria:
(1) The establishment is licensed by the board.
(2) The establishment has a minimum of four licensees working at
the establishment, including employees and owners or managers.
(3) All licensees at the establishment are in good standing with
the board.
(4) Licensees working at the establishment work for salaries or
commissions rather than on a space rental basis.
(5) No more than one extern shall work in an establishment for
every four licensees working in the establishment. No regularly
employed licensee shall be displaced or have his or her work hours
reduced or altered to accommodate the placement of an extern in an
establishment. Prior to placement of the extern, the establishment
shall agree in writing sent to the school and to all affected
licensees that no reduction or alteration of any licensee's current
work schedule shall occur. This shall not prevent a licensee from
voluntarily reducing or altering his or her work schedule.
(6) Externs shall wear conspicuous school identification at all
times while working in the establishment, and shall carry a school
laminated identification, that includes a picture, in a form approved
by the board.
(d) (1) A school participating in the externship program shall
provide the participating establishment and the extern with a
syllabus containing applicable information specified in Section 73880
of Title 5 of the California Code of Regulations. The extern, the
school, and the establishment shall agree to the terms of and sign
the syllabus prior to the extern beginning work at the establishment.
No less than 90 percent of the responsibilities and duties of the
extern shall consist of the acts included within the practice of
cosmetology as defined in Section 7316.
(2) The establishment shall consult with the assigning school
regarding the extern's progress during the unpaid externship. The
owner or manager of the establishment shall monitor and report on the
student's progress to the school on a regular basis, with assistance
from supervising licensees.
(3) A participating school shall assess the extern's learning
outcome from the externship program. The school shall maintain
accurate records of the extern's educational experience in the
externship program and records that indicate how the extern's
learning outcome translates into course credit.
(e) Participation in an externship program made available by a
school shall be voluntary, may be terminated by the student at any
time, and shall not be a prerequisite for graduation.
(f) The cosmetology establishment that chooses to utilize the
extern is liable for the extern's general liability insurance, as
well as cosmetology malpractice liability insurance, and shall
furnish proof to the participating school that the establishment is
covered by both forms of liability insurance and that the extern is
covered under that insurance.
(g) (1) It is the purpose of the externship program authorized by
this section to provide students with skills, knowledge, and
attitudes necessary to acquire employment in the field for which they
are being trained, and to extend formalized classroom instruction.
(2) Instruction shall be based on skills, knowledge, attitudes,
and performance levels in the area of cosmetology for which the
instruction is conducted.
(3) An extern may perform only acts listed within the definition
of the practice of cosmetology as provided in Section 7316, if a
licensee directly supervises those acts, except that an extern may
not use or apply chemical treatments unless the extern has received
appropriate training in application of those treatments from an
approved cosmetology school. An extern may work on a paying client
only in an assisting capacity and only with the direct and immediate
supervision of a licensee.
(4) The extern shall not perform any work in a manner that would
violate law.
SEC. 17. Section 7407 of the Business and Professions Code is
amended to read:
7407. The board shall establish by regulation a schedule of
administrative fines for violations of this chapter. All moneys
collected under this section shall be deposited in the board's
contingent fund.
The schedule shall indicate for each type of violation whether, in
the board's discretion, the violation can be corrected. The board
shall review and revise the schedule of administrative fines for
violations by January 1, 2005. The board shall ensure that it and the
Bureau for Private Postsecondary Education do not issue citations
for the same violation.
SEC. 18. Section 8027 of the Business and Professions Code is
amended to read:
8027. (a) As used in this section, "school" means a court
reporter training program or an institution that provides a course of
instruction approved by the board and the Bureau for Private
Postsecondary Education, is a public school in this state, or is
accredited by the Western Association of Schools and Colleges.
(b) A court reporting school shall be primarily organized to train
students for the practice of shorthand reporting, as defined in
Sections 8016 and 8017. Its educational program shall be on the
postsecondary or collegiate level. It shall be legally organized and
authorized to conduct its program under all applicable laws of the
state, and shall conform to and offer all components of the minimum
prescribed course of study established by the board. Its records
shall be kept and shall be maintained in a manner to render them safe
from theft, fire, or other loss. The records shall indicate positive
daily and clock-hour attendance of each student for all classes,
apprenticeship and graduation reports, high school transcripts or the
equivalent or self-certification of high school graduation or the
equivalent, transcripts of other education, and student progress to
date, including all progress and counseling reports.
(c) Any school intending to offer a program in court reporting
shall notify the board within 30 days of the date on which it
provides notice to, or seeks approval from, the California Department
of Education, the Bureau for Private Postsecondary Education, the
Chancellor's Office of the California Community Colleges, or the
Western Association of Schools and Colleges, whichever is applicable.
The board shall review the proposed curriculum and provide the
school tentative approval, or notice of denial, within 60 days of
receipt of the notice. The school shall apply for provisional
recognition pursuant to subdivision (d) within no more than one year
from the date it begins offering court reporting classes.
(d) The board may grant provisional recognition to a new court
reporting school upon satisfactory evidence that it has met all of
the provisions of subdivision (b) and this subdivision. Recognition
may be granted by the board to a provisionally recognized school
after it has been in continuous operation for a period of no less
than three consecutive years from the date provisional recognition
was granted, during which period the school shall provide
satisfactory evidence that at least one person has successfully
completed the entire course of study established by the board and
complied with the provisions of Section 8020, and has been issued a
certificate to practice shorthand reporting as defined in Sections
8016 and 8017. The board may, for good cause shown, extend the
three-year provisional recognition period for not more than one year.
Failure to meet the provisions and terms of this section shall
require the board to deny recognition. Once granted, recognition may
be withdrawn by the board for failure to comply with all applicable
laws and regulations.
(e) Application for recognition of a court reporting school
shall be made upon a form prescribed by the board and shall be
accompanied by all evidence, statements, or documents requested. Each
branch, extension center, or off-campus facility requires separate
application.
(f) All recognized and provisionally recognized court reporting
schools shall notify the board of any change in school name, address,
telephone number, responsible court reporting program manager, owner
of private schools, and the effective date thereof, within 30 days
of the change. All of these notifications shall be made in writing.
(g) A school shall notify the board in writing immediately of the
discontinuance or pending discontinuance of its court reporting
program or any of the program's components. Within two years of the
date this notice is sent to the board, the school shall discontinue
its court reporting program in its entirety. The board may, for good
cause shown, grant not more than two one-year extensions of this
period to a school. If a student is to be enrolled after this notice
is sent to the board, a school shall disclose to the student the fact
of the discontinuance or pending discontinuance of its court
reporting program or any of its program components.
(h) The board shall maintain a roster of currently recognized and
provisionally recognized court reporting schools, including, but not
limited to, the name, address, telephone number, and the name of the
responsible court reporting program manager of each school.
(i) The board shall maintain statistics that display the number
and passing percentage of all first-time examinees, including, but
not limited to, those qualified by each recognized or provisionally
recognized school and those first-time examinees qualified by other
methods as defined in Section 8020.
(j) Inspections and investigations shall be conducted by the board
as necessary to carry out this section, including, but not limited
to, unannounced site visits.
(k) All recognized and provisionally recognized schools shall
print in their school or course catalog the name, address, and
telephone number of the board. At a minimum, the information shall be
in 8-point bold type and include the following statement:
"IN ORDER FOR A PERSON TO QUALIFY FROM A SCHOOL TO TAKE THE STATE
LICENSING EXAMINATION, THE PERSON SHALL COMPLETE A PROGRAM AT A
RECOGNIZED SCHOOL. FOR INFORMATION CONCERNING THE MINIMUM
REQUIREMENTS THAT A COURT REPORTING PROGRAM MUST MEET IN ORDER TO BE
RECOGNIZED, CONTACT: THE COURT REPORTERS BOARD OF CALIFORNIA;
(ADDRESS); (TELEPHONE NUMBER)."
() Each court reporting school shall file with the board, not
later than June 30 of each year, a current school catalog that shows
all course offerings and staff, and for private schools, the owner,
except that where there have been no changes to the catalog within
the previous year, no catalog need be sent. In addition, each school
shall also file with the board a statement certifying whether the
school is in compliance with all statutes and the rules and
regulations of the board, signed by the responsible court reporting
program manager.
(m) A school offering court reporting may not make any written or
verbal claims of employment opportunities or potential earnings
unless those claims are based on verified data and reflect current
employment conditions.
(n) If a school offers a course of instruction that exceeds the
board's minimum requirements, the school shall disclose orally and in
writing the board's minimum requirements and how the course of
instruction differs from those criteria. The school shall make this
disclosure before a prospective student executes an agreement
obligating that person to pay any money to the school for the course
of instruction. The school shall also make this disclosure to all
students enrolled on January 1, 2002.
(o) Private and public schools shall provide each prospective
student with all of the following and have the prospective student
sign a document that shall become part of that individual's permanent
record, acknowledging receipt of each item:
(1) A student consumer information brochure published by the
board.
(2) A list of the school's graduation requirements, including the
number of tests, the pass point of each test, the speed of each test,
and the type of test, such as jury charge or literary.
(3) A list of requirements to qualify for the state certified
shorthand reporter licensing examination, including the number of
tests, the pass point of each test, the speed of each test, and the
type of test, such as jury charge or literary, if different than
those requirements listed in paragraph (2).
(4) A copy of the school's board-approved benchmarks for
satisfactory progress as identified in subdivision (u).
(5) A report showing the number of students from the school who
qualified for each of the certified shorthand reporter licensing
examinations within the preceding two years, the number of those
students that passed each examination, the time, as of the date of
qualification, that each student was enrolled in court reporting
school, and the placement rate for all students that passed each
examination.
(6) On and after January 1, 2005, the school shall also provide to
prospective students the number of hours each currently enrolled
student who has qualified to take the next licensing test, exclusive
of transfer students, has attended court reporting classes.
(p) All enrolled students shall have the information in
subdivisions (n) and (o) on file no later than June 30, 2005.
(q) Public schools shall provide the information in subdivisions
(n) and (o) to each new student the first day he or she attends
theory or machine speed class, if it was not provided previously.
(r) Each enrolled student shall be provided written notification
of any change in qualification or graduation requirements that is
being implemented due to the requirements of any one of the school's
oversight agencies. This notice shall be provided to each affected
student at least 30 days before the effective date of the change and
shall state the new requirement and the name, address, and telephone
number of the agency that is requiring it of the school. Each student
shall initial and date a document acknowledging receipt of that
information and that document, or a copy thereof, shall be made part
of the student's permanent file.
(s) Schools shall make available a comprehensive final examination
in each academic subject to any student desiring to challenge an
academic class in order to obtain credit towards certification for
the state licensing examination. The points required to pass a
challenge examination shall not be higher than the minimum points
required of other students completing the academic class.
(t) An individual serving as a teacher, instructor, or reader
shall meet the qualifications specified by regulation for his or her
position.
(u) Each school shall provide a substitute teacher or instructor
for any class for which the teacher or instructor is absent for two
consecutive days or more.
(v) The board has the authority to approve or disapprove
benchmarks for satisfactory progress which each school shall develop
for its court reporting program. Schools shall use only
board-approved benchmarks to comply with the provisions of paragraph
(4) of subdivision (o) and subdivision (u).
(w) Each school shall counsel each student a minimum of one time
within each 12-month period to identify the level of attendance and
progress, and the prognosis for completing the requirements to become
eligible to sit for the state licensing examination. If the student
has not progressed in accordance with the board-approved benchmarks
for that school, the student shall be counseled a minimum of one
additional time within that same 12-month period.
(x) The school shall provide to the board, for each student
qualifying through the school as eligible to sit for the state
licensing examination, the number of hours the student attended court
reporting classes, both academic and machine speed classes,
including theory.
(y) The pass rate of first-time exam takers for each school
offering court reporting shall meet or exceed the average pass rate
of all first-time test takers for a majority of examinations given
for the preceding three years. Failure to do so shall require the
board to conduct a review of the program. In addition, the board may
place the school on probation and may withdraw recognition if the
school continues to place below the above described standard on the
two exams that follow the three-year period.
(z) A school shall not require more than one 10-minute qualifying
examination, as defined in the regulations of the board, for a
student to be eligible to sit for the state certification
examination.
(aa) A school shall provide the board the actual number of hours
of attendance for each applicant the school qualifies for the state
licensing examination.
(ab) The board shall, by December 1, 2001, do the following by
regulation as necessary:
(1) Establish the format that shall be used by schools to report
tracking of all attendance hours and actual timeframes for completed
coursework.
(2) Require schools to provide a minimum of 10 hours of live
dictation class each school week for every full-time student.
(3) Require schools to provide students with the opportunity to
read back from their stenographic notes a minimum of one time each
day to his or her instructor.
(4) Require schools to provide students with the opportunity to
practice with a school-approved speed-building tape, or other
assigned material, a minimum of one hour per day after school hours
as a homework assignment and provide the notes from this tape to
their instructor the following day for review.
(5) Develop standardization of policies on the use and
administration of qualifier examinations by schools.
(6) Define qualifier exam as follows: the qualifier exam shall
consist of 4-voice testimony of 10-minute duration at 200 wpm, graded
at 97.5 percent accuracy, and in accordance with the guidelines
followed by the board. Schools shall be required to date and number
each qualifier and announce the date and number to the students at
the time of administering the qualifier. All qualifiers shall
indicate the actual dictation time of the test and the school shall
catalog and maintain the qualifier for a period of not less than
three years for the purpose of inspection by the board.
(7) Require schools to develop a program to provide students with
the opportunity to interact with professional court reporters to
provide skill support, mentoring, or counseling which they can
document at least quarterly.
(8) Define qualifications and educational requirements required of
instructors and readers that read test material and qualifiers.
(ac) The board shall adopt regulations to implement the
requirements of this section not later than September 1, 2002.
(ad) The board may recover costs for any additional expenses
incurred under the enactment amending this section in the 2001-02
Regular Session of the Legislature pursuant to its fee authority in
Section 8031.
SEC. 19. Chapter 8 (commencing with Section 94800) is added to
Part 59 of Division 10 of Title 3 of the Education Code, to read:
CHAPTER 8. PRIVATE POSTSECONDARY INSTITUTIONS
Article 1. General Provisions
94800. This chapter shall be known, and may be cited, as the
California Private Postsecondary Education Act of 2008.
94801. Whenever a reference is made to the Bureau for Private
Postsecondary and Vocational Education, by the provisions of any
statute or regulation, that reference shall be construed as referring
to the Bureau for Private Postsecondary Education. Whenever a
reference is made to the Council for Private Postsecondary Education
and Vocation Education, by the provisions of any statute of
regulation, that reference shall be construed as referring to the
Bureau for Private Postsecondary Education.
94801.1. The Legislature finds and declares the following:
(a) In 2007, there were more than 400,000 Californians attending
more than 1,500 private postsecondary schools in California. Many of
these students are low-income students who incur up to tens of
thousands of dollars in long-term debt in an effort to learn a trade
and become employed in order to financially provide for themselves
and their families.
(b) Private postsecondary schools complement the public education
system and help develop a trained workforce to meet the demands of
California businesses and the economy.
(c) Numerous reports and studies have concluded that California
law and regulatory oversight failed to enforce
student protections or provide effective oversight of private
postsecondary schools. The law and regulatory oversight were
nearly allowed to expire, and only reinstated by urgency legislatio
n in 1997, allowed to expire on June 30, 2007,
with some skeletal functions continued by urgency legislation and
allowed to expire on June 30, 2008, thereby creating an urgent
need to reform the law and create a new regulatory structure to take
effect as soon as possible.
(d) This chapter intends to provide a body of law that ensures all
of the following:
(1) Minimum educational quality standards and opportunities for
success for California students attending private postsecondary
schools.
(2) Meaningful student protections through essential avenues of
recourse for students.
(3) A regulatory structure that provides for an appropriate level
of oversight.
(4) A regulatory governance structure that ensures that all
stakeholders have a voice and are heard in policymaking by the new
bureau created by this chapter.
(5) A regulatory governance structure that provides for
accountability and oversight by the Legislature through program
monitoring and periodic reports.
(e) It is widely believed that up to 20 percent of the private
postsecondary education provided in California in 2007 is Internet
based. Therefore, this chapter calls for a thorough review of
Internet-based private postsecondary education. This review is
intended to serve as a basis for future policymakers to address any
deficiencies in law in regulating Internet-based private
postsecondary education.
(f) 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. A failure to act in a timely manner allowed expiration
of the regulatory structure on June 30, 2007. This history should
never be repeated.
94801.2. (a) The Legislature finds that the Accrediting
Commission for Senior Colleges and Universities, Western Association
of Schools and Colleges (ACSCU) and the Accrediting Commission for
Community and Junior Colleges and Universities, Western Association
of Schools and Colleges (ACCJC) (collectively WASC) serve as unique
and reliable authorities for establishing and maintaining standards
for public and private institutions providing postsecondary education
in California for the following reasons:
(1) WASC has acted as the regional accrediting association for
colleges and universities based in California for more than 40 years.
This includes all campuses of the University of California,
California State University, and California Community Colleges. Its
effectiveness has been affirmed in numerous past external studies.
(2) For private institutions, ACSCU and ACCJC require, as one
condition for eligibility for accreditation, that an applicant
institution first apply to and obtain approval from the Bureau of
Private Postsecondary Education, thereby assuring Californians that
all applicant institutions have been found by the bureau to meet the
state's licensure standards prior to being considered for
accreditation.
(3) A majority of the commission members on the ACSCU and ACCJC
are residents of California and represent a diversity of backgrounds
and interests.
(4) WASC does not discriminate based on location or geography.
ACSCU and ACCJC policies and practices permit an institution that is
accredited by a different regional accrediting association to apply
for accreditation from ACSCU and ACCJC if that institution maintains
sufficient presence in California. Institutions accredited by a
different regional accrediting association have been granted
accreditation by WASC.
(5) Through a full faith and credit agreement with other regional
accredited agencies, WASC has a process whereby institutions
accredited by other regional accredited
accrediting agencies may also be accredited by WASC in an
expeditious manner. This agreement allows institutions that are
accredited by other regional accredited
accrediting agencies to be accredited by WASC in a matter of
only a few months, compared to a process that may normally take
several years.
(6) ACCJC provides periodic on campus visits to all WASC
accredited institutions and for each California campus.
(7) ACSCU and ACCJC regularly meet in California, publish the time
and place of meetings in advance, and permit and encourage
interested Californians to attend the public portions of meetings and
comment on policies under consideration by their respective
commissions.
(8) WASC has demonstrated transparency and accountability for
Californians, on-campus oversight, and student protection for
Californians.
(9) In 2007, the United State District Court, Central District of
California, issued a judgment in Saro Daghlian vs. Devry
DeVry University, Inc., which is currently on
appeal before the United States Court of Appeals for the Ninth
Circuit. In this case, the district court found a portion of the 1989
Postsecondary and Vocational Education Reform Act (Reform Act) to
impermissibly discriminate against out-of-state regionally accredited
educational institutions. Conversely, this chapter is based
on These legislative findings pertinent to the
regional accreditation process that were not
available to the district court at the time of its judgment.
The Additionally, the scope, requirements, and
approval process of this chapter are distinct from that of the Reform
Act. Consequently, the Legislature finds and declares that the
contents of the chapter will legislative
findings not previously available to the court and the contents of
the chapter will both effectively distinguish itself
themselves from the Reform Act and preclude the
application of the district court's reasoning in Saro Daghlian vs.
Devry DeVry University, Inc. to this
act.
(b) Based on the above findings, the Legislature finds that there
are compelling reasons to grant WASC accredited institutions a
complete exemption from the requirements of this chapter.
94801.3. The Bureau for Private Postsecondary Education is
subject to periodic and ongoing review by the Legislature.
94801.4. It is the intent and purpose of this chapter to protect
students, reputable institutions, the public, and the economy of the
state; ensure appropriate operational standards; ensure institutional
stability; ensure minimum standards for educational quality,
including through accountability for required
uniform disclosures of program completion and student
placement in occupations or job titles to which training is
represented to lead ; prohibit various and
salaries paid graduates in those occupations or job
titles; prohibit misrepresentations, including
misrepresentations related to the quality of education, the
availability and quality of equipment, software, and materials, the
transferability of credits, and employment availability and range of
salary opportunities; require full disclosure of all material facts
regarding the course or program of instruction; and protect the
citizens of California against fraud, misrepresentation, or other
practices that may lead to loss of funds paid for educational costs,
whether financed through personal resources, state and federal
student financial aid, or private loans. It is also the intent and
purpose of this chapter to ensure that the public has
information needed to assess whether the cost to taxpayers of
government loans and grants for instruction is commensurate with the
benefits obtained by students and flowing to the state's economy.
94801.5. There is a Bureau for Private Postsecondary Education in
the Department of Consumer Affairs. The bureau has the
responsibility for approving and regulating private postsecondary
educational institutions and programs.
94801.6. (a) Protection of the public shall be the highest
priority for the bureau in exercising its approval, regulatory, and
disciplinary functions. The bureau shall have all of the following
objectives:
(1) Protection of the public from fraud and misrepresentation and
from illegal, unscrupulous, or unethical practices.
(2) To encourage students to make informed decisions.
(3) The development of a strong, vigorous, and widely respected
sector of private postsecondary education that protects the interests
of students and the public and serves the interests of the economy
of California.
(b) Whenever the protection of the public is inconsistent with
other interests sought to be promoted, the protection of the public
shall be paramount.
94801.7. The proceedings under this chapter shall be conducted by
the bureau in accordance with the provisions of this chapter or
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code at the bureau's option. To the extent
of any conflict between any of the provisions of this chapter and
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, this chapter shall prevail.
94801.8. Regulations Except as otherwise
provided in this chapter, regulations required by and necessary
to fully implement this chapter shall be adopted by July 1,
2009 January 1, 2010 , and shall be amended
periodically as needed by the bureau to fully implement the intent of
this article.
Article 2. Transition Provisions
94802. (a) An institution , program, or course of study
that had a valid approval to operate on June 30, 2007, issued
by the Bureau for Private Postsecondary and Vocational Education
pursuant to Chapter 7 (commencing with Section 94700) of Part 59 of
Division 10 of Title 3, as it existed on June 30, 2007, which was not
revoked, shall maintain that approval under this chapter. For the
purposes of this chapter, the approval shall be valid until two
calendar years after the expiration date of the approval, as it
existed on June 30, 2007.
(b) Applications for reapproval that had been pending action
before the Bureau for Private Postsecondary and Vocational Education
on June 30, 2007, shall be deemed processed as follows:
(1) Applications received prior to January 1, 2006, shall be
granted a reapproval until 2009 to coincide with the anniversary date
of the current approval.
(2) Applications received after January 1, 2006, shall be granted
a reapproval until 2010 to coincide with the anniversary date of the
current approval.
(c) Students enrolling in institutions approved under subdivision
(b) shall be notified during the enrollment process that the
institution's application for reapproval to operate has not been
fully reviewed by the bureau.
94802.5. This chapter does not affect, pending litigation or
rights under former Chapter 7 (commencing with Section 94700) of Part
59 of Division 10 of Title 3, which became inoperative on June 30,
2007.
(d) With respect to any deadline applicable to the approval,
renewal of approval, or conditional approval of an institution or
program, no time shall be deemed to have elapsed between July 1,
2007, and January 1, 2009, inclusive.
94803. Notwithstanding any other provision of law:
(a) Each unresolved matter submitted to the Bureau for
Private Postsecondary and Vocational Education prior to July 1, 2007,
shall be deemed to remain pending before the bureau 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, through June 30, 2008 January 1,
2009 , inclusive.
(1) For the purposes of this subdivision, "matter" includes, but
is not necessarily limited to, an appeal, a complaint, a
lawsuit, an action, 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. 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.
(b) Student complaints received from July 1, 2007, through June
30, 2008, inclusive, continue to be duly recorded and investigated to
the extent possible so that no Californian is harmed by the delay in
the provision of full services.
(c) Any institution, program, or course of study that is approved
by the bureau or authorized pursuant to Section 94905, 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 July 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 June 30, 2008, inclusive.
(d) For any claims that a student had against a covered
institution, the period from June 30, 2007, to January 1, 2009,
(b) Student complaints between from July 1, 2007, to December 31,
2008, inclusive, shall continue to be duly recorded and investigated
and shall be determined based on law that was in effect at the time
the violations or events complained of occurred.
(c) 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, Chapter 67
of the Statutes of 2007, or Chapter 635 of the Statutes of 2007, the
period from June 30, 2007, to January 1, 2009, inclusive, shall
be excluded in determining the deadline or the statute of limitation
for filing a lawsuit based on those claims
any claim with the bureau or a lawsuit based on any claim .
(e)
(d) All claims, except claims to the Student
Tuition Recovery Fund, and all complaints, 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.
94803.5. (a) Each regulation in Division 7.5 (commencing with
Section 70000) of Title 5 of the California Code of Regulations in
effect on June 30, 2007, shall be in full force and effect on and
after July 1, 2008. By July 1, 2009, the bureau shall
January 1, 2009. The bureau may amend Division
7.5 (commencing with Section 70000) of Title 5 of the California Code
of Regulations to amend or repeal any regulation that is
inconsistent with this chapter.
(b) The bureau may adopt emergency regulations, as necessary, to
allow for the immediate implementation of this chapter.
(c) Regulations promulgated pursuant to this chapter shall be
consistent with the director's, or his or her designee's, powers and
duties under Section 310 of the Business and Professions Code and
legislative intent under Section 301 of the Business and Professions
Code.
94804. The bureau shall succeed to any and all rights and claims
of the former Bureau for Private Postsecondary and Vocational
Education that may have been asserted in a judicial or administrative
action pending on July 1, 2007, and shall take any action reasonably
necessary to assert and realize those rights and claims in its own
name. The functions of the former Bureau for Private Postsecondary
and Vocational Education, and the responsibilities the former bureau
had for the administration of former Chapter 7 (commencing with
Section 94700) on June 30, 2007, and January 1, 2008, are transferred
to the new Bureau for Private Postsecondary Education, effective
July 1, 2008 January 1, 2009 , as
provided by this chapter. Notwithstanding any other provision of law,
Section 19050.9 of the Government Code shall apply regardless of the
date on which former Chapter 7 (commencing with Section 94700)
became inoperative or was repealed.
94805. The bureau shall have possession and control of all
records, papers, offices, equipment, supplies, or other property,
real or personal, held for the benefit or use by the former Bureau
for Private Postsecondary and Vocational Education in the performance
of the duties, powers, purposes, responsibilities, and jurisdictions
that are vested in the bureau.
94806. (a) The Private Postsecondary and Vocational Education
Administration Fund established by former Section 94932 of the
Education Code, and extended and reconfigured by Chapter 635 of the
Statutes of 2007, is continued in existence, and is renamed the
Private Postsecondary Education Administration Fund.
Students, including former students who paid into the fund prior to
July 1, 2007 shall have the right to recover from the fund under the
terms and conditions set forth in former Section 94944.
Fund.
(b) It is the intent of the Legislature that the Private
Postsecondary Education Administration Fund be administered, and that
fees be established and collected, in a manner that assures full and
effective implementation of this chapter.
94807. The Student Tuition Recovery Fund established by former
Section 94944 of the Education Code, and extended by
extended and reconfigured by Chapter 67 of the
Statutes of 2007, and continued in existence by Chapter 635 of
the Statutes of 2007, is further continued in existence.
94808. (a) Any Student Tuition Recovery Fund claims received by
the former Bureau for Private Postsecondary and Vocational Education
prior to July 1, 2007, that were not processed by the former Bureau
for Private Postsecondary and Vocational Education and were not paid
by the department between July 1, 2007, and June 30
December 31 , 2008, inclusive, shall be processed by the
bureau in accordance with this chapter based on the terms and
conditions set forth in former Section 94944 of the Education Code,
except that any payments of claims from the fund shall be
paid from the single Student Tuition Recovery Fund as continued in
Article 13 (commencing with Section 94923) .
(b) Any Student Tuition Recovery Fund claims received by the
department between July 1, 2007, and June 30
December 31 , 2008, inclusive, shall be processed by the bureau
in accordance with this chapter based on the terms and conditions
set forth in former Section 94944 of the Education Code..
Code, except that any payments on claims to the fund
shall be paid from the single Student Tuition Recovery Fund as
continued in Article 13 (commencing with Section 94923).
(c) Any Student Tuition Recovery Fund claims received by the
department after June 30, 2007, for actions that occurred prior to
July 1, 2007, or regarding courses of instruction which commenced
prior to July 1, 2007, shall be processed by the bureau in accordance
with this chapter and the terms and conditions set forth in former
Section 94944 of the Education Code.
(c) Student Tuition Recovery Fund claims filed with, and approved
by, the Bureau for Private Postsecondary and Vocational Education as
of June 30, 2007, if not already paid, shall be paid before any later
approved claims.
(d) The student's right to recovery from the Student Tuition
Recovery Fund or the Private Postsecondary Education
Administrative 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, whether or not a claim was filed
prior to July 1, 2007. part of tuition costs, even
though that law has become inoperative, been repealed or otherwise
expired, and whether or not a claim was filed prior to the law
becoming inoperative, repealed, or otherwise expired.
94809. (a) Approved institutions with applications on file,
excluding Student Tuition Recovery Fund and certificate of
authorization applications, that were pending with the former Bureau
for Private Postsecondary and Vocational Education as of July 1,
2007, may continue to operate.
(b) An institution that did not have a valid approval issued by,
94809. (a) An institution
that did not have a valid approval issued by, or an application
for approval pending with, the former Bureau for Private
Postsecondary and Vocational Education on June 30, 2007, that began
operations on or after July 1, 2007, may continue to operate through
December 31, 2008 2009 , but shall
comply with and is subject to this chapter, and shall submit an
application to the bureau pursuant to this chapter which shall
be treated in all respects as an initial application for approval
.
(c)
(b) Students enrolling in institutions approved under
subdivision (b) (a) shall be notified
during the enrollment process before entering into any
enrollment agreement that the institution's approval to operate
has not been reviewed by the bureau.
94809.5. (a) Notwithstanding any exemption from this chapter
under Article 3 (commencing with Section 94810) or
any other provision of law, the rights and obligations established
by the Private Postsecondary and Vocational Education Reform Act of
1989 on or before June 30, 2007 , as preserved by Chapter 67 of
the Statutes of 2007 and extended by Chapter 635 of the Statutes of
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 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 act on
or before June 30, 2007, may be ordered or maintained thereafter.
(b) The rights, obligations, claims, causes of action, and
remedies described in subdivision (a) shall remain subject to the
provisions of the Private Postsecondary and Vocational Education
Reform Act of 1989 in effect on or before June 30, 2007,
notwithstanding the inoperative status or repeal of the Private
Postsecondary and Vocational Education Reform Act of 1989 on or after
July 1, 2007 , or the repeal of Sections 1 to 8, inclusive, of
Chapter 67 of the Statutes of 2007 by Chapter 635 of the Statutes of
2007 on or after July 1, 2008 .
(c) This article shall apply retroactively from June 30, 2008.
Article 3. Definitions
94810. Unless the context requires otherwise, the definitions set
forth in this article govern the construction of this chapter.
94811. "Ability-to-benefit student" means a student who does not
have a certificate of graduation from a school providing secondary
education, or a recognized equivalent of that certificate such as a
GED prior to completion of the course.
94812. "Academic year" means a period, including a minimum of 30
weeks of instructional time, in which a full-time student attending
an institution that measures educational program length in credit
hours completes 24 semester or trimester hours or 36 quarter hours,
or an institution that measures educational program length in clock
hours completes at least 900 clock hours.
94813. "Accredited" means an institution is recognized or
approved by an accrediting agency recognized by the United States
Department of Education.
94814. "Accrediting agency" means an agency recognized by the
United States Department of Education.
94815. "Annual report" means the report required to be filed
pursuant to Section 94883.6 94934 .
94816. "Applicant" means a person or entity that has submitted an
application for renewal or approval to operate on which the bureau
has not yet made a determination. An applicant shall not enroll
students or offer education without an approval to operate.
94817. "Approval to operate" means the authorization to offer to
the public and to provide postsecondary educational programs, as well
as the written document issued by the bureau to an institution
signifying its approval to operate.
94818. "Avocational education" means education offered
exclusively for the purpose of personal entertainment, pleasure, or
enjoyment.
94819. "Branch campus" means a site other than the main campus or
a satellite location.
94820. "Bureau" means the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs.
94820.2. "Cancellation period" means the initial period during
which a student may cancel and receive a refund under Section 94919.
94820.5. "Certified" means having passed an examination that
attests to the quality and level of knowledge by a qualified
certification authority or organization that is not affiliated with
an institution.
94821. "Change in business organization form" means a change of a
business organization's original form, including, for example, a
situation in which a sole proprietorship becomes a partnership or
corporation, or when a business organization becomes a nonprofit
public benefit corporation or forms a nonprofit public benefit
corporation as a subsidiary to provide the educational programs for
which the business organization has an approval to operate.
94822. "Change of location" means a move or relocation more than
10 miles from the site at which the institution offers instruction.
94823. "Change of ownership" means the acquisition by a person of
more than 50 percent of an interest in or stock of a parent company.
94823.5. "Class" or "course" means a subject, such as English or
mathematics that is taught as part of a program.
94824. "Class day" means a day a student is scheduled to attend
class session, or for students receiving instruction through distance
education, any calendar day except Saturday, Sunday, or any holiday
enumerated in Section 6700 of the Government Code.
94825. "Class session" means part of a class day that an
institution conducts instruction in a particular subject.
94825.5. "Clock hour" means 50 to 60, inclusive, minutes and is
used to measure the length of any program of study that does not lead
to a degree.
94826. "Commence operations" means an institution has begun to
provide educational programs.
94826.5. "Completion tracking period" means the two years before
the year in which the completion numbers and rates are reported and
disclosed.
94827. (a) "Continuing education" means instruction in subjects
that licensees are required to take solely for the purpose of
continued licensure, or to enhance their skills and knowledge within
their particular profession, occupation, trade, or career field.
(b) "Continuing education" does not include any of the following:
(1) A vocational program.
(2) A degree program.
(3) An educational service where any part of the charge for which
is paid from the proceeds of a loan or grant subject to a
governmental student financial aid program.
94827.5. "Credit hour" means the unit of measure by which
institutions measure its degree coursework. The number of credit
hours assigned to a course is defined by the number of hours per week
in class and preparation and the number of weeks in a term. One
credit hour is usually assigned for three hours of student work per
week or its equivalent. The three hours of student work per week
usually consists of a combination of one hour of lecture and two
hours of homework or three hours of laboratory. Semester and quarter
credit hours are based on at least a 15-week term or its equivalent.
A quarter credit hour is based on at least a 10-week term or its
equivalent.
94828. "Curriculum" means an organized set of courses or modules
of instruction that are prerequisites to the award of a degree or
diploma.
94828.5. "Custodian of records" means the person responsible for
maintaining records.
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 330 days if payment is due
less frequently.
94830. "Degree" means any type of degree or honorary degree or
title of any designation, mark, appellation, series of letters or
words including, but not necessarily limited to, associate, bachelor,
master, doctor, or fellow, that signifies, purports to constitute,
or is generally taken to signify, satisfactory completion of the
requirements of an academic, educational, technological, or
professional program of study beyond the secondary educational level,
or is an honorary title conferred for recognition of some
meritorious achievement.
94831. "Degree title" means the designated subject area of the
educational program that appears on the face of the document awarded
to a student.
94831.1. "Department" means the Department of Consumer Affairs.
94832. "Diploma" means a recognized educational credential, other
than a degree, awarded by an institution that signifies satisfactory
completion of the requirements of a postsecondary educational
program below the associate's level. A diploma is also known as a
certificate.
94833. "Director" means the Director of Consumer Affairs.
94834. "Distance learning" means lessons for study and completion
by a student at a location separate from an institution with a
physical location in California by home study, correspondence, or the
Internet or other electronic means, including the instruction
offered in combination with instruction at the institution.
94835. "Document of or record"
means any document required to be maintained by this chapter.
94836. "Educational materials" means textbooks, supplies,
implements, tools, machinery, computers, software, electronic
devices, or other goods related to any education, training, or
experience required for participation in an educational program.
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, skill, and experience leading
to the award of a recognized educational credential such as a degree
or diploma.
94838. "Educational program approval" means authorization by the
bureau, another government agency of this state, or a federal
government agency, to provide educational programs, and is an element
of an approval to operate.
94838.5. (a) "Employment" means a paid position in a job, job
title, vocation, occupation, or trade to which the program was
represented to lead, in which all of the following occurred:
(1) A student was employed in the paid position for at least 60
days within the employment tracking period, in an occupation for
which the student received his or her degree or diploma.
(2) The position requires education beyond the high school level.
(3) The routine work in the position requires utilization of the
skills and knowledge reasonably expected to be imparted in a program
culminating in the degree or certificate the student received.
(4) For occupations for which the state does not require passing
an examination, the period of employment begins
must begin within six months after a student completes a
program.
(5) For occupations for which the state requires passing an
examination, the period of employment begins within six months after
the announcement of the examination results for the first examination
available after a student completes a program.
(b) Employment includes self-employment.
94838.6. "Employment tracking period" means the
two-years two years before the year in which the
employment numbers and rates are reported and disclosed.
94839. "Enrollment" means the execution of an enrollment
agreement.
94840. "Enrollment agreement" means a written contract between a
student and institution or a person acting on
behalf of a student and an institution concerning an
educational program , including any contract for related
equipment .
94841. "Faculty" means the instructional staff of an institution,
whether these persons are employees or independent contractors. For
purposes of this chapter, "faculty," "instructor," "professor," and
"teacher" are synonymous.
94841.5. "Franchise institution" means a newly established
location of an existing approved institution offering postsecondary
education services leading to candidacy for psychology licensure that
bears the same name as the existing approved institution and about
which either of the following is true:
(a) The newly established location is owned or financially
controlled by an individual or individuals other than those who own
or financially control the existing approved institution.
(b) The newly established location is administered by an
individual or individuals other than those persons who administer the
existing approved institution.
94842. "Graduate" means an individual that has been awarded a
degree or diploma.
94843. "Institution" means any private postsecondary educational
institution, including its branch campuses and satellite locations.
94844. "Institutional charges" means charges for an educational
program paid directly to an institution.
94845. "Institution manager" means an individual who is a member
of an institution's management.
94846. "Instruction" means an institution's specific, formal
arrangements in which its faculty present a part of the curriculum.
94847. "License and examination preparation" means instruction
designed to assist students to prepare for an examination for
licensure, or offered for the sole purpose of providing continuing
education in subjects licensees are required to take as a condition
of continued licensure.
94848. "Licensure" includes any license, certificate, permit, or
similar credential that a person must hold to lawfully engage in a
profession, occupation, trade, or career field.
94849. "Main campus," "main location," or "main site" means the
institution's sole or primary teaching location. If an institution
operates at only one site, that site is its main campus, main
location, or main site.
94849.5. "Minor violation" means a deviation from the
requirements of this chapter, or regulations adopted pursuant to this
chapter, that, for the purposes of administrative actions by the
bureau only, in the determination of the bureau, has not or
reasonably will not result in harm to students and is not any of the
following:
(a) Committed knowingly, willfully, or intentionally.
(b) A repeated violation.
(c) A falsification of a document or record.
(d) A public offense.
94850. "Noninstitutional charges" means charges for an
educational program paid to an entity other than an institution that
are specifically required for participation in an educational
program.
94850.2. "Out-of-state institution" means an institution that has
its place of instruction or its principal location outside the
boundaries of this state, that offers or conducts programs on
premises maintained by the institution outside the boundaries of this
state, that provides distance learning materials from a location
outside the boundaries of this state, that evaluates completed lesson
materials or otherwise conducts its evaluation service from a
location outside the boundaries of this state, or that otherwise
offers or provides California students with programs through
activities engaged in or conducted outside the boundaries of this
state.
94851. "Owner" means a person who has a legal or equitable
interest in 10 percent or more of an institution's stocks or assets.
94852. "Ownership" means a legal or equitable interest in an
institution, including ownership of assets or stock.
94853. "Parent company" means a partnership, limited liability
company, or corporation that owns more than 50 percent of the stock
or interest in an institution.
94854. "Period of attendance" means a semester, quarter, or
trimester for educational programs measured in credit hours
programs that offer a degree, and the entire
educational program if measured in clock hours
for programs that offer a diploma .
94855. "Person" means a natural person or a business entity,
regardless of the form or organization.
94856. "Person in control" means a person who has sufficient
capacity, directly or indirectly, to direct or influence the
management, policies, or conduct of an institution so that the person
can cause or prevent a violation of this chapter. There is a
rebuttable presumption affecting the burden of proof that an owner,
director, or officer of an institution is a person in control.
94857. "Postsecondary education" means a formal institutional
educational program whose curriculum is designed primarily for
students who have completed or terminated their secondary education
or are beyond the compulsory age of secondary education, including
programs whose purpose is academic, vocational, or continuing
professional education.
94858. "Private postsecondary educational institution" means a
private entity with a physical presence in this state that offers
postsecondary education to the public for an institutional charge.
94858.1. "Program" or "program of instruction" means an
educational program of training, course, set of related courses, or
education for which a student enrolls.
94859. "Recruiter" means an employee of an institution whose
principal job responsibilities are the recruitment of students other
than on the institution's premises.
94860. "Recruitment" means actions taken by recruiters seeking
enrollment of students.
94861. "Reporting period" means the institution's fiscal year or
any yearly period designated by the bureau to be covered in the
institution's annual report.
94861.1. "Representative" means an employee, an agent, as defined
in Section 2295 of the Civil Code, or any person, who for
compensation, does either of the following:
(a) Solicits, promotes, advertises, or refers or recruits students
or prospective students for an institution.
(b) Is involved with enrollment, admissions, student attendance,
administration, financial aid, instruction, or job placement
assistance on behalf of an institution.
94861.2. "Admissions representative" means an employee or agent
of an institution or other person who, for compensation, does any of
the following:
(a) Tries to convince prospective students to enroll at the
institution.
(b) Enrolls students by getting them to fill out the required
documents, including the enrollment agreement, disclosures, and
financial aid documents.
(c) Provides prospective students information about the school.
(d) Answers student questions even after enrollment.
94862. "Satellite location" means an auxiliary classroom or
teaching site within 50 miles of the branch or main location at which
all of the following apply:
(a) Only educational services that are approved at the main
location shall be offered at the satellite.
(b) The permanent records of attendance or academic progress for
students taking courses or enrolled in a program at the satellite
shall be maintained at the main location.
(c) Advertisement of a satellite shall indicate that the satellite
is an auxiliary classroom or a teaching site.
94863. "Satisfactory academic progress" means the qualitative and
quantitative measures an institution uses to assess a student's
academic progress, including progress towards the
completion of his or her educational program
within 150 percent of the published length of the educational
program.
94863.1. "Scheduled to complete" means the date the institution
determined, when the student enrolled, that the student was scheduled
to complete the program.
94864. "Shift in control" means a change in the ownership of an
institution where a person who previously did not own at least 25
percent of the stock or interest in an institution or its parent
company acquires ownership of at least 25 percent of the stock or
interest in the institution or its parent company.
94865. "Site" means a main or branch campus or satellite
location.
94866. "Teach-out" means the arrangements an institution makes
for its students to complete their educational programs, at no
additional cost over that amount agreed to in the initial enrollment
agreement, when the institution ceases to operate.
94867. "Third-party payer" means an employer, government program,
or other entity that directly pays a student's total
charges when no separate agreement for the repayment of the charges
exists between the third-party payer and the student.
94868. "To offer" includes in addition to its usual meaning,
offering, advertising, publicizing, soliciting, encouraging, or
offering to a person, directly or indirectly, in any form, to perform
an act as described.
94869. "To operate" means to establish, keep, or maintain any
facility or location in this state where or from which or through
which postsecondary educational programs are provided.
94870. "Total charge" means the total institutional and
noninstitutional charge for a program or other education,
instruction, or training, including the charge for tuition,
equipment, finance charges paid to the institution, and all other
fees, charges, costs, and expenses paid to the institution.
94872. "Vocational program" means an educational program having
all of the following characteristics:
(a) The educational program consists of a job training program or
other instruction, training, or education that the institution
identifies as, or represents as a program that will lead to, fit, or
prepare students for employment in any particular occupation.
(b) The program is offered to students who do not possess a
bachelor's or a graduate degree in the field of training.
(c) Students who complete all or a portion of the program are
awarded a certificate diploma or an
associate degree, including, but not necessarily limited to, an
Occupational Associate Degree, Associate of Occupational Studies, or
Associate of Applied Science.
94873. "Year" means a calendar year.
Article 4. Exemptions
94874. (a) The following private institutions are exempt from the
requirements of this chapter:
(1) An institution offering education solely as avocational or
recreational in nature, and offering this education exclusively.
(2) An institution offering nondegree education sponsored by a
bona fide trade, business, professional, or fraternal organization,
solely for that organization's membership.
(3) An institution offering either of the following:
(A) Test preparation for examinations required for admission into
postsecondary educational institutions.
(B) Continuing education or test preparation for licensing
examinations where the institution or the program is approved,
certified, or sponsored by any of the following:
(i) A government agency, other than the bureau, that licenses
person in a particular profession, trade, or job category.
(ii) A state-recognized professional licensing body, including,
but not limited to, the State Bar of California, that licenses
persons in a particular profession, trade, or job category.
(iii) A bona fide trade, business, or professional corporation.
(C) A bona fide trade, business, or professional organization.
(4) (A) A nonprofit institution owned, controlled, and operated
and maintained by a bona fide church, religious denomination, or
religious organization composed of multidenominational members of the
same well-recognized religion, 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:
(i) The education is limited to instruction in the principles of
that church, religious denomination, or religious organization, or to
courses offered pursuant to Section 2789 of the Business and
Professions Code.
(ii) The certificate or degree is limited to evidence of
completion of that education.
(iii) The meritorious recognition upon which any honorary degree
is conferred is limited to the principles of that church, religious
denomination, or religious organization.
(B) An institution operating under this paragraph shall offer
degrees and diplomas only in the beliefs and practices of the church,
religious denomination, or religious organization.
(C) This paragraph expresses the legislative intent that the state
shall not involve itself in the content of certificate or degree
programs awarded by any institution operating under this paragraph,
as long as the institution awards certificates or degrees only in the
beliefs and practices of the church, religious denomination, or
religious organization.
(D) An institution exempt under this paragraph shall not award
certificates or degrees in any area of physical science.
(E) Any certificate or degree granted in any area of study under
this paragraph shall contain on its face, in the written description
of the title of the certificate or degree being conferred, a
reference to the theological or religious aspect of the certificate
or degree's subject area.
(F) A degree awarded under this paragraph 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."
(G) The use of the degree titles "associate of arts" or "associate
of science," "bachelor of arts" or "bachelor of science," "master of
arts" or "master of science," or "doctor of philosophy" or "Ph.D."
shall only be awarded by institutions approved to operate under this
chapter.
(5) Institutions solely offering nondegree programs that have a
total charge of one thousand five hundred dollars ($1,500) or less.
The bureau shall monitor these programs and may adjust this cost
threshold based upon the Consumer Price Index, and post notification
of the adjusted cost threshold on its Internet Web site on or after
January 1, 2010, and each January 1 thereafter if the bureau
determines, through promulgation of regulations, that the increase is
consistent with the intent of this chapter.
(6) All private postsecondary institutions offering instruction in
California which are accredited by either the Accrediting Commission
for Senior Colleges and Universities, Western Association of Schools
and Colleges, or the Accrediting Commission for Community and Junior
Colleges and Universities, Western Association of Schools and
Colleges.
(7) Except as provided in Article 13 (commencing with Section
94923), all private postsecondary institutions, other than those
exempt under paragraph (6), offering instruction in California which
are accredited by a regional accrediting agency recognized by the
United States Department of Education.
(b) Except as provided in Article 13 (commencing with Section
94923), any nonprofit public benefit corporation organized pursuant
to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of
the Corporations Code and not managed or administered by an entity
for profit, that meets all of the following requirements is exempt
from this chapter:
(1) Accredited by an accrediting agency recognized by the United
States Department of Education.
(2) Operated continuously in this state for at least 20 years.
(3) The institution's cohort default rate on guaranteed student
loans does not exceed 15 percent for the three most recent years as
published by the United States Department of Education.
(4) The institution submits to the bureau copies of the most
recent IRS Form 990 and the Integrated Postsecondary Education Data
System Report of the United States Department of Education and the
accumulated default rate.
(c) To verify that any institution is exempt from this chapter,
the bureau shall review and continue to monitor the accreditation
status of each institution to determine if the institution received a
negative accreditation action at any time. The bureau's duty under
this provision does not relieve any institution from its obligation
to comply with this chapter.
Article 5. Bureau Powers and Duties
94875. The Bureau for Private Postsecondary Education, as
established by Section 6 of Chapter 635 of the Statutes of 2007, is
continued in existence and shall commence operations. This chapter
establishes the functions and responsibilities of the bureau, for the
purposes of Section 6 of Chapter 635 of the Statutes of 2007. The
bureau has all of the following functions and responsibilities:
(a) The administration of this chapter and promulgation of
necessary , appropriate, or useful regulations consistent
with the intent and purpose of this chapter.
(b) The enforcement of this chapter and the approval of
institutions and programs that meet the requirements of this chapter.
(c) The development and maintenance of an Internet Web site that
shall include clearly accessible and searchable information regarding
approved private postsecondary institutions in California. The
Internet Web site shall provide information for prospective students
so that they may make informed choices regarding their educational
opportunities and shall provide information for current students so
they may understand their rights. The bureau's Internet Web site
shall be operational by July 1, 2009, and shall provide
include all of the following information:
(1) A directory of unapproved institutions in California which are
subject to this chapter and warn a warning
to students of the dangers of attending unapproved
institutions. This shall include a disclaimer that the directory
is based on the best information available on a specified date and a
notice to institutions that any institution may notify the bureau if
the institution believes it should not be included in the directory.
(2) A directory of approved institutions which , if feasible,
shall include a link to the Internet Web site of each
institution.
(3) Disciplinary history of approved schools.
(4) Status of school's approval.
(5) Summary of complaints filed, pursuant to Section 94884,
(5) Pursuant to Section 94884, a
summary of complaints filed against the institution.
(6) An explanation of the transition plan for the reconstituted
bureau.
(7) An explanation of the bureau's scope of authority.
(d) Provide The provision of
outreach to prospective and current private postsecondary
education students and high school students, providing them with
information on how best to select a postsecondary institution, how to
enter into a student enrollment agreement, how to protect themselves
in the postsecondary education marketplace, and how to contact the
bureau for assistance if problems arise. The bureau may accomplish
the purposes of this subdivision in cooperation with the department.
(e) Establishment The establishment
of a regular inspection program, which shall include announced and
unannounced inspections during normal business hours of educational
programs and institutions each year. If student or public complaints
have been received by the bureau since the time of initial approval
to operate all appropriate issues raised in the complaints shall be
investigated. Inspections under the program may be based on, but not
limited to, all of the following:
(1) Documents submitted to the bureau by the institution.
(2) Complaints received about the institution.
(3) Accrediting agency documents.
(4) The time elapsed since a previous inspection.
(5) Any other rational basis.
(f) Review The review and
investigation of institutions and programs approved under this
chapter.
(g) Objective The objective and
regular assessment of the cost of meeting its statutory obligations,
including the staffing necessary to meet those obligations, a
determination whether the prevailing fee structure allows for
collection of revenue sufficient to support the necessary costs, and
a report of that information to the Legislature and the Governor
through the annual State Budget process, and regular adjustments to
the fee and cost structure, as permitted in this chapter, sufficient
to ensure that the bureau accomplishes its statutory obligations.
Fees shall be raised immediately if the bureau is not adequately
performing its investigatory function with respect to institution
reviews and the investigation of student complaints.
(h) The receipt, review, and investigation of complaints received
from students and the public, and complaints transmitted by other
federal, state, or local agencies, including timely responses and
appropriate investigations, consistent with Section 94801.6. The
performance of this function shall be the bureau's first priority.
(i) Development and maintenance of an information management
system sufficient to meet the bureau's responsibilities, including,
but not necessarily limited to, an Internet Web site and database, as
provided in this article.
(j) To the extent funding and resources are available for this
purpose, the establishment of a training program, including, but not
necessarily limited to, information and support necessary for
institutions to undertake corrective action to
comply with this chapter, information and support to assist in the
successful development of a new institution, and information and
support to assist existing institutions in development that is
necessary for them to become eligible for participation in student
financial aid programs under Title IV of the federal Higher Education
Act of 1965.
(k) Establishment of a plan to identify unlicensed
program to identify unapproved institutions
operating in violation of this chapter and initiate
appropriate legal enforcement to initiate appropriate
action against those institutions.
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. In
implementing and administering this chapter, the director, or his or
her designee, shall fully exercise all powers and duties under
Section 310 of the Business and Professions Code.
(b) The bureau chief shall be appointed by the Governor and
confirmed 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) Every 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) (1) The director, in accordance with the State Civil Service
Act, shall appoint and fix the compensation of personnel as may be
necessary to carry out this chapter.
(2) The bureau shall be staffed with a sufficient number of
employees working at a professional level and having expertise in
higher education approval and investigation and auditing of
educational institutions.
(3) It is the intent of the Legislature that all employees,
excluding temporary employees, of the former Bureau for Private
Postsecondary and Vocational Education as of September 30, 2006, who
worked in a regulatory or oversight capacity have the opportunity to
transfer to their former status, positions, and classifications in
the Bureau for Private Postsecondary Education. The
reestablishment of the bureau shall not in any form preclude
professional staff who worked in a regulatory or oversight capacity
to transfer to their former status, positions, and classifications.
(4) Section 19050.9 of the Government Code shall apply to any
function or the administration of this chapter that is transferred
from the Department of Consumer Affairs or the Bureau for Private
Postsecondary and Vocational Education, which ceased to exist on July
1, 2007, to the Bureau for Private Postsecondary Education. The
bureau shall demonstrate compliance with this section in the Budget
Acts Act of 2008-09 and
2009-10.
94876.5. The bureau shall adopt and enforce regulations to
implement this chapter pursuant to the Administrative Procedure Act
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code within one year of the enactment
of this chapter. The bureau may adopt emergency regulations that
shall become effective immediately pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
94876.6. The bureau shall, in consultation and coordination with
the director and the Attorney General, develop and implement an
enforcement program to carry out this chapter, including a plan for
investigating complaints filed with the bureau.
94876.7. The bureau shall adopt a five-year strategic plan by
December 31, 2010, and update the plan periodically as needed.
94877. It is the intent of the Legislature that the bureau adopt,
periodically review, and update internal quality review and audit
procedures to ensure that bureau processes are in place to promote
and achieve full compliance with this chapter.
94879. (a) To enable the bureau to exercise its powers and to
perform its duties, the bureau shall adopt, by regulation, a fee
schedule. The fee schedule shall set forth the fees that
institutions, and others subject to this chapter, shall pay. The
bureau shall not set fees that charge
more than are reasonably necessary to accomplish
the purposes of this act. It is the intent of the Legislature that
regulations promulgated under this subdivision be completed by
August 31, 2008 June 30, 2009 , and be
codified in this chapter by December 31, 2009.
(b) All fees collected shall be deposited in the Private
Postsecondary Education Administration Fund. These fees, along with
any accrued interest, shall be the means of funding the
implementation of this chapter.
(c) The fee schedule shall be publicly available.
(d) The bureau shall use an objective process to assess the costs
of exercising its powers and performing its duties, and shall use
this assessment as the basis for constructing the fee schedule.
94880. The bureau may appoint an advisory committee that shall
consist of, but not necessarily be limited to, representatives of
institutions, student representatives, and employers who hire
students.
94881. The bureau 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.
94882. The bureau 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. The members of visiting committees may seek
reimbursement be reimbursed at the rate allowed for
state employees from the bureau for their actual travel and per
diem expenses incurred during the evaluation. The bureau may seek
reimbursement from the institution that is the subject of an
evaluation.
94883. (a) Any individual serving on a visiting committee who
provides information to the bureau, 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.
94884. For all complaints that have reached final disposition,
the bureau shall, upon request, make available to members of the
public the nature and disposition of complaints against an
institution and a summary of the violations.
94884.5. The bureau shall establish a program to identify
unapproved institutions and take all appropriate legal action.
94884.5. Notwithstanding paragraph (2) of subdivision (a) of
Section 94838.5, the bureau may promulgate regulations recognizing
that an employment position may not require education beyond the high
school level, is not a typical entry level position, and is part of
an immediate career track leading directly to a job, job title,
vocation, occupation, or trade to which the program was represented
to lead. The regulation shall ensure that in any specific situation
the institution has the burden of proof that the position meets the
definition of employment.
Article 6. Approval to Operate
94886. If an institution is regulated by another state licensing
agency, the institution shall, in addition to approval as specified
in this article, obtain and retain the authorization of that agency.
94887. (a) The bureau shall promulgate regulations providing the
minimum operating standards for institutions. These standards shall
reasonably ensure that all of the following occur:
(1) The content of each educational program can achieve its stated
objective.
(2) The facilities, instructional equipment, and materials are
sufficient to enable students to achieve the educational program's
goals.
(3) The institution maintains a withdrawal policy and provides
information regarding the calculation of refunds.
(4) The person in control, directors, administrators,
and instructors are properly qualified and have not been
, have not been found liable for failing to pay
refunds as required by law, or have not pled guilty or no contest to,
or been convicted of a crime involving the misuse of funds.
(5) The faculty has sufficient experience and education and
teaching expertise to enable students to achieve the educational
program goals and obtain employment.
(6) The institution is financially sound and capable of fulfilling
its commitments to students and has not filed for
bankruptcy within the last seven years. .
(7) That, upon satisfactory completion of an educational program,
the institution gives students a document signifying the degree or
diploma awarded.
(8) Adequate records and standard transcripts are maintained and
are available to students.
(9) The institution is maintained and operated in compliance with
applicable ordinances and laws.
(10) That students receive adequate disclosures, orally and in
writing, regarding all material facts which are reasonably likely to
affect the prospective student's decision to enroll in the
educational program , are disclosed .
94888. An approval to operate shall be granted only after an
applicant has presented sufficient evidence to the bureau, and the
bureau has independently verified the information provided by the
applicant through site visits or other methods deemed appropriate by
the bureau, that the applicant has the capacity to satisfy the
minimum operating standards.
94889. An approval to operate shall be for a term of four years.
94890. (a) Notwithstanding Sections 94887, 94888, and 94889, the
bureau shall grant an institution that is accredited an approval to
operate by means of its accreditation.
(b) The term of the approval to operate shall be coterminous with
the term of accreditation.
(c) Institutions that are granted an approval to operate by means
of the institution's accreditation shall file reports with the bureau
on a form and in a manner prescribed by the bureau and shall comply
with all applicable requirements of this chapter.
94891. (a) The 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. However, the granting of an initial
or renewal approval to operate shall not be used as proof of, or
used to establish, a presumption that the institution has complied
with the provisions of this chapter.
94892. If a federal agency or a state agency, other than the
bureau, provides an approval to offer an educational program, that
agency's educational program approval may satisfy the requirements of
this article without any further review by the bureau.
However, the granting of an approval to operate shall not be used as
proof of, or used to establish, a presumption that the institution
has complied with the provisions of this chapter. The
bureau. The bureau may incorporate that educational program
into the institution's approval to operate when the bureau receives
documentation signifying the conferral of the educational program
approval by that agency.
Article 7. Substantive Changes to an Approval to Operate
94893. If an institution wishes to make a substantive change to
its approval to operate, the institution shall receive prior
authorization from the bureau. If the institution makes the
substantive change without prior bureau authorization, the
institution's approval to operate may be suspended or revoked.
94894. The following changes to an approval to operate may be
considered substantive changes and require prior authorization:
(a) A change in educational objectives, including an addition of a
new diploma or a degree educational program unrelated to the
approved educational programs offered by the institution. If 50
percent or less of an educational program is not substantially the
same as the approved program, it shall be considered an
unrelated program.
(b) A change in ownership.
(c) A shift in control.
(d) A change in business organization form.
(e) A change of location.
(f) A change of name.
(g) A significant change in the method of instructional delivery.
(h) An addition of a separate facility more than one mile from the
main or branch campus.
94895. (a) The bureau shall promulgate regulations providing for
the process and procedures whereby an institution that has been
granted an approval to operate by means of accreditation may make a
substantive change in accordance with the standards by which the
institution is accredited.
(b) The institution shall notify the bureau of the substantive
change in a form and in a manner prescribed by the bureau.
Article 8. Business Practices
94896. An institution shall establish specific written standards
for student admissions for each educational program. These standards
shall be related to the particular educational program.
94897. An institution subject to this chapter or representative
of an institution subject to this chapter shall not do any of the
following:
(a) Operate in this state a postsecondary educational institution
subject to this chapter unless the institution is approved by the
bureau.
(b) Instruct or educate, or offer to instruct or educate,
including soliciting for those purposes, enroll or offer to enroll,
contract or offer to contract with any person for that purpose, or
award any educational credential, or contract with any institution or
party to perform any act, in this state, whether that person, group,
or entity is located within or without this state, unless that
person, group, or entity observes and is in compliance with the
minimum standards set forth in this article.
(c) Make or cause to be made any statement relative to the
operation of the school that is in any manner untrue or misleading,
either by actual statement, omission, or intimation. This
shall include, but not be limited to, the following prohibited acts:
(1)
(d) Use, or allow the use of, any reproduction or
facsimile of the Great Seal of the State of California on a diploma.
(2)
(e) Engage in any false, deceptive, misleading, or
unfair act in connection with any matter, including the institution's
advertising and promotion, the recruitment of students for
enrollment in the institution, the offer or sale of a program of
instruction, course length, course credits, the withholding of
equipment, educational materials, or loan or grant funds from a
student, training and instruction, the collection of payments,
or job placement completion, licensure
passage, or job placement information .
(3)
(f) Induce a person to enter into an agreement for a
program of instruction by offering to compensate that person to act
as the institution's representative in the solicitation, referral, or
recruitment of others for enrollment in the institution.
(4)
(g) Promise or guarantee employment or otherwise
overstate the availability of jobs in the local economy upon
graduation.
(5)
(h) 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.
(6)
(i) 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.
(7)
(j) Advertise, or indicate in promotional material,
that resident instruction or programs of study are offered, without
including in all advertising or promotional material the location
where the training is given or the location of the resident
instruction.
(8)
(k) Advertise, or indicate in promotional material,
that the institution is accredited, unless the institution has been
accredited by an accrediting agency.
(9)
(l) 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.
(10)
(m) Use a misleading name in any untrue or misleading
manner implying any of the following:
(A)
(1) The institution is affiliated with any government
agency, public or private corporation, agency, or association if it
is not, in fact, thus affiliated.
(B)
(2) The institution is a public institution.
(C)
(3) This institution grants degrees if it in fact, does
not grant degrees.
(11)
(n) In any manner make an untrue or misleading change
in, or untrue or misleading statement related to, a test score,
grade, record of grades, attendance record, record indicating student
completion, employment, or salaries, or financial information, on
any record or document required by this chapter or by the bureau.
This shall include the falsification, destruction, or concealment of
any record or other item required to be accurately maintained by this
chapter or by the bureau.
(12)
(o) 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 and with the standards
either the institution met minimum state standards as
set forth in this chapter or the minimum standards of the
institution's accrediting agency if applicable. If the bureau has
granted an institution approval to operate, the institution may
indicate that the institution is "licensed" or "licensed to operate,"
but may not state or imply either of the following:
(A)
(1) The institution or its educational programs are
endorsed or recommended by the state or by the bureau.
(B)
(2) The approval to operate indicates that the
institution exceeds minimum state standards as set forth in this
chapter.
(13)
(p) Misrepresent to a student or prospective student
that the student is or will be qualified, upon completion of a
course, for admission to a professional examination under a
specific private authority or agency licensure or certification
provision or a state occupational licensing provision.
(14)
(q) Offer to pay or pay any consideration to a student
or prospective student to act as a representative of the institution
with regard to the solicitation, referral, or recruitment of any
person for enrollment in the institution in either of the following:
(A)
(1) During the 60-day period following the date on
which the student began the program.
(B)
(2) At a subsequent time, if the student has not
maintained satisfactory academic progress in acquiring the necessary
level of education, training, skill, and experience to obtain
employment in the occupation or job title to which the program is
represented to lead. The institution shall have the burden of proof
to establish that the student has maintained satisfactory academic
progress.
(d)
(r) Direct a representative to perform any unlawful
act, to refrain from complaining or reporting unlawful conduct to the
bureau or another government agency, or to engage in any unfair act
to persuade a student not to complain to the bureau or another
government agency.
(e)
(s) Pay any consideration to a person to induce that
person to sign an enrollment agreement for an educational program.
(f)
(t) Compensate a representative involved in
recruitment, enrollment, admissions, student attendance, or sales of
equipment to students on the basis of a commission, commission draw,
bonus, quota, or other similar method except as specifically allowed
under federal law.
(g)
(u) Require a prospective student to provide personal
contact information in order to obtain educational program
information, including, but not limited to, tuition and fees, faculty
qualifications, and completion and placement information,
from the institution's Internet Web site. completion
and placement rates information, or any item required under the
consumer information requirements of Title IV of the federal Higher
Education Act of 1965 from the institution's Internet Web site.
(h)
(v) Attempt to confer a degree, diploma, or certificate
to a student in violation of this chapter.
(i) Misrepresent to a student or prospective student that the
student is or will be qualified, upon completion of a course, for
admission to a professional examination under a state occupational
licensing provision.
94897.5. Any institution required to be approved by the bureau
shall do all of the following:
(a) Comply with the minimum standards prescribed by this chapter,
and provide the quality of instruction, faculty, equipment,
materials, software, supplies, and internships, as represented in or
substantially equivalent to that represented in the catalog, on the
Internet Web site, advertising, enrollment materials, and brochure or
by the admission's representative in the enrollment process or other
representative.
(b) Provide timely and accurate refunds to students, as required
by this chapter, or fail to and
satisfy, within 30 days of its issuance, a final judgment obtained by
a student against the institution.
(c) Conduct business or instructional services only at a location
approved by the bureau.
(d) Comply with any provision of law or regulation governing
sanitary conditions. However, the bureau may take an action against
an institution for violation of this subdivision only when the bureau
is aware of the violation.
(e) (1) Maintain the records of the name, address, e-mail address,
and telephone number of students who enroll in an educational
program or program of instruction, including the students who begin
the program, the students who cancel before completing the program,
and the students who graduate from the program of instruction. For
each vocational program and any other program about which the
institution or any representative makes any statements about job
availability for students in the job titles or occupations to which
the program is represented to lead, the institution shall inquire
whether students who complete an educational program obtain
employment.
(2) To the extent information is available from past students, the
institution shall keep a log which documents individual employment
of those students who completed the educational program. The
institution shall maintain records which document the completion,
placement, licensing examination, and salary information the school
is required to report to the bureau under Section 94928 and disclose
under Section 94907 with all facts needed to substantiate the
information.
94897.6. (a) Each owner, director, and administrator of an
institution shall expend or authorize the expenditure of the
institution's assets and funds, including tuition, fees, and other
charges collected from or on behalf of students, in a diligent and
prudent manner to ensure that students receive the education and
student services that the institution represented it would provide to
the students and that the institution is required to provide to the
students pursuant to this chapter.
(b) Each owner, director, and administrator of an institution has
the duty to act in good faith to take all reasonable steps within his
or her capacity to cause the institution to comply with all
applicable law and to correct the effects of noncompliance.
(c) Each owner, director, and administrator of an institution
shall immediately disclose to the bureau evidence that the
institution or any person connected with the institution has engaged
in fraud, misrepresentation, or misappropriation of funds.
(d) This section does not create any duty upon an institution or
the owner, director, or administrator of an institution, to students
or prospective students.
94898. Each institution that has an Internet Web site
shall clearly and conspicuously provide the following information on
its Internet Web site, if applicable, about each program at each site
of each institution:
(a) All information required to be disclosed under Section 94907.
(b) The status of the institution's approval including any
disciplinary actions by the bureau against the institution in the
last three years.
(c) The If an institution
provides information about staff or faculty on its Internet Web site,
it shall provide the names of the faculty members and their
prior education and qualifications to teach in the program of
instruction and the date they first began teaching at the
institution.
(d) The average class size and any class size limit.
(e) The specifics of any offsite training or internship.
(f) The requirements the prospective students must meet to enroll.
(g) Any bankruptcy filing by the institution.
94898.5. Information required by Section 94898 to be provided on
an institution's Internet Web site shall be kept current. The
information under subdivision (a) of Section 94907 shall be deemed
current on the Internet Web site if the information provided is
updated by January 1 of each year. The information under subdivisions
(b) to (i), inclusive, and subdivision (k) of Section 94907 and
under subdivisions (c) to (f), inclusive, of Section 94898 shall be
deemed current if the information provided is updated at least once
every three months. Matters deemed current under this section apply
only to Internet Web site disclosure, not to any other disclosures
required under this chapter.
94899. If an institution offers an educational program in a
profession, occupation, trade, or career field that requires
licensure in this state, the institution shall have been approved to
conduct that educational program by the bureau and any other required
agencies , if applicable .
94899.5. (a) Institutions that offer short-term programs designed
to be completed in one term or four months, whichever is less, may
require payment of all tuition and fees on the first day of
instruction.
(b) For those programs designed to be four months or longer, an
institution shall not require more than one term or four months of
advance payment of tuition at a time. When 50 percent of the program
has been offered, the institution may require full payment.
(c) An institution that provides suggests
lenders or refers students to lenders of, or arranges
private loan funding shall ensure that the student is
not obligated for indebtedness that exceeds the current cost of
attendance. that a student who may be eligible for a
state or federal grant or guaranteed loan is first offered that
financing before being offered any private loan.
94899.6. (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 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.
(d) An institution shall not move the location of class
instruction more than 10 miles from the location of instruction at
the time of enrollment unless any of the following occur:
(1) The institution discloses in writing to each student before
enrollment in the educational program that the location of
instruction will change after the educational program begins and the
address of the new location.
(2) The institution applies for, and the bureau grants, approval
to change the location. The bureau shall grant the application within
60 days if the bureau, after notice to affected students and an
opportunity for them to be heard as prescribed by the bureau,
concludes that the change in location would not be unfair or unduly
burdensome to students. The bureau 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.
94899.7. (a) An institution that provides medical training
providing for students to interact with health care patients, and
that is required to provide criminal background checks, medical blood
tests, or drug tests on its students, shall keep complete, accurate,
and up-to-date files of these checks and test results.
(b) Records kept under this section shall be available for review
by the medical facility in which the students are obtaining their
clinical rotation work, by law enforcement personnel, and by the
bureau.
(c) An institution shall implement procedures to ensure that
records kept under this article are safeguarded and that the privacy
rights of students are protected.
94899.8. (a) An institution shall maintain, for a period of not
less than five years at its principal place of business in this
state, complete and accurate records, evidencing all of
the following:
(1) The programs of study offered by the institution and the
curriculum for each.
(2) The names and addresses of its faculty, together with a record
of the educational qualifications of each.
(3) The records required to be maintained by this chapter.
(b) For each student the institution shall maintain permanent
records of the degree or certificate granted, the date it was
granted, the courses and units of each on which the certificate or
degree was based, and the grades earned in those courses.
(c) Notwithstanding any other provision of this chapter, an
institution may not disclose the personal student records maintained
pursuant to this section unless production of those records is
required by any law or by subpoena or court order.
(d) All records that an institution is required to maintain by
this chapter or that relate to an institution's compliance with this
chapter shall be made immediately available by the institution for
inspection and copying during normal business hours, upon request, by
the bureau, the Attorney General, any district attorney or city
attorney, or the Student Aid Commission.
Article 9. Recruiters
94900. An institution's recruiters shall be employees.
94901. (a) An institution shall issue identification to each
recruiter identifying the recruiter and the institution.
(b) The recruiter shall have the issued identification with him or
her while recruiting.
Article 10. Enrollment Agreements and Disclosures
94902. (a) Before a person executes an agreement obligating that
person to pay any money to an institution for a program or related
equipment, the institution shall:
(1) Provide to that person a copy of the enrollment agreement
containing, at a minimum, the information required by Section 94906.
(2) Provide to that person a clear written statement containing
its refund policy, a table of the amount of the refund to which the
student would be entitled if the student withdrew from the program
after completing a period of days or weeks of instruction equivalent
to 10 percent, 25 percent, 50 percent, 60 percent, and 75 percent of
the program, and a description of the procedures that a student is
required to follow to cancel the agreement and obtain a refund. If
the institution solicited the student or negotiated the agreement in
a language other than English, the statement shall be in that same
language. The institution shall also make its refund policy known to
currently enrolled students.
(3)
(2) Provide to that person a written schedule of the
total charge for the program, separately itemized into tuition,
assessments for the Student Tuition Recovery Fund, the cost of each
item of equipment, including textbooks, shop and studio fees, and any
other fees the student will pay to the institution in order to
complete the program, with a statement of the purpose for each of
these charges. The schedule shall clearly indicate and differentiate
all mandatory and optional charges. The schedule shall clearly
identify all charges and deposits that are nonrefundable.
The schedule shall also contain both of the following:
(A) A statement, to be provided by the bureau, specifying that it
is a state requirement that a student who pays his or her own
tuition, either directly or through a loan, is required to pay a
state-imposed fee for the Student Tuition Recovery Fund.
(B) A statement, to be provided by the bureau, describing the
purpose, operation, and eligibility requirements of the Student
Tuition Recovery Fund.
(4)
(3) If a state board, bureau, department, or agency has
established the minimum number of classes or class hours or the
minimum criteria of a program necessary for licensure in an
occupation and an institution offers a program differing from the
state entity's minimum requirements, disclose orally and
in writing the state entity's minimum requirements and how
the program differs from those requirements.
(5) If the institution provides a specific program of study where
the students will need program approval by a specific authority or
agency for the students to take an examination for certification,
(4) If the institution provides a
program of study for which program approval by a specific authority
or agency is necessary, or absent experience in the field, it is
necessary for those who complete the program to qualify to take an
examination for certification, licensure, or other similar
approval allowing the student to perform services in the field of
study, or if the institution knows or reasonably should know that
certification, licensure, or other similar approval, while
not necessarily required to perform services in the field of study,
is widely requested or required by employers, disclose in
writing to the student if the program is not approved.
disclose in writing to the student before enrollment if the program
does not have the program approval which will qualify graduates to
take the examination.
(6) Disclose in writing that, if the student obtains a loan to pay
for the course of instruction, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund.
(7) Disclose in writing that, if the student is eligible for a
loan guaranteed or reinsured by the state or federal government and
the student defaults on the loan, the following may occur:
(A) The federal or state government or the loan guarantee agency
can 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.
(B) The student may not be eligible for any other federal
financial assistance for education at a different institution or for
government housing assistance until the loan is repaid.
(8) Disclose in writing that the institution is not a public
institution.
(9) Disclose in writing whether or not the institution has filed,
or has had filed against it, a petition in bankruptcy.
(10) Provide orally and in writing the information required by
subdivision (a) of Section 94907.
(11)
(5) A copy of the catalog or brochure as described in
Section 94903.
(b) The disclosures required by subdivision (a) shall be in
English unless the solicitation or negotiation leading to the
agreement for a course of instruction was in a language other than
English, in which case, the disclosures shall be in that other
language.
(c) Notwithstanding any other provision of this section, an
institution offering a distance learning program need not orally make
the disclosures required by subdivision (a) in connection with that
course if the institution did not orally solicit or recruit the
student for enrollment and the student enrolled by mail or
electronically.
94903. (a) An institution shall provide to students and
other interested persons prospective students ,
prior to enrollment, a catalog or brochure containing, at a minimum,
all of the following information:
(1) Descriptions of the
instruction provided under each course offered by the institution,
including the length of programs offered, and all of
the occupations or job titles, if any, to which the program
of instruction is represented to lead.
(2) The number of credit hours or clock hours of instruction or
training per unit or units required for completion of the educational
degree or certificate program.
(3) The attendance, dropout, and leave-of-absence policies.
(4) The faculty, including their relevant qualifications as of the
date of the publication of the catalog or brochure. This shall
include each degree held by staff and the name and location of the
institution from which each degree was earned.
(5) The schedule of tuition payments, fees, and all other charges
and expenses known to or arranged by the institution and necessary
for the term of instruction and the completion of the course of
study.
(6) The cancellation and refund policies.
(7) For institutions that participate in federal and state
financial aid programs, all consumer information that the institution
is required to disclose to the student.
(8) A description of a student's rights under the Student Tuition
Recovery Fund.
(9) The institution's admissions policies, including the
institution's policies regarding the acceptance of units of credit
earned by the student at other institutions or through challenge
examinations and standardized tests.
(10) If an institution represents that it provides job placement
services, a description of the nature and extent of the placement
services that indicates when they are available to students.
(11) All other material facts concerning the institution and the
educational program or course of instruction that are reasonably
likely to affect the decision of the student to enroll.
(12) A list describing all transfer agreements or articulation
agreements between the institution and any other colleges or
universities that provide for a transfer of credits earned in the
program of instruction in which the student seeks to enroll. If no
transfer agreements or articulation agreements exist that relate to
the particular program of instruction in which the student seeks to
enroll, the institution shall disclose this.
(b) The institution shall provide the catalog or brochure to any
person upon request.
(c) A written contract signed by a student is not enforceable
unless the student has first received the institution's catalog or
brochure containing the information required by this section and as
required by Section 94903.5.
94903.5. (a) An institution shall not
require the signature of a person to an agreement obligating that
person to pay any money to the institution until the person has had
at least one business day from the date of the oral disclosures
under Section 94907.5, to read and review all of the items
required to be provided to that person by this article. The
prospective student shall be advised, orally and in writing, by the
institution that he or she should read the required documents and ask
questions regarding the content of the documents that he or she does
not understand. Nothing in person by this article.
(b) Nothing in this chapter shall
be construed in any manner to relieve a student or prospective
student from any legal duty there may be to read and comprehend all
disclosures and documents presented by the institution.
94903.6. (a) An institution shall not offer
English-as-a-second-language (ESL) instruction without the prior
approval of the bureau.
(b) An institution that offers ESL instruction to a student shall
not enroll the student in any educational service presented in the
English language, other than that ESL instruction, unless the student
passes a test indicating that he or she has attained adequate
proficiency in oral and written English to comprehend instruction in
English.
(c) A student who has completed ESL instruction at an institution
shall not be enrolled in any course of instruction presented in the
English language at that institution unless the student passes a test
indicating that he or she has attained adequate proficiency in oral
and written English to be successfully trained by English language
instruction to perform tasks associated with the occupations or job
titles to which the educational program is represented to lead.
(d) If an institution offers ESL instruction to a student to
enable the student to use already existing knowledge, training, or
skills in the pursuit of an occupation, the institution shall test
the student after the student completes the ESL instruction to
determine that the student has attained adequate proficiency in oral
and written English to use his or her existing knowledge, training,
or skills. Before enrolling the student in ESL instruction, the
institution shall document the nature of the student's existing
knowledge, training, or skills and that the ESL instruction is
necessary to enable the student to use that existing knowledge,
training, or skills.
(e) If an institution offers ESL instruction to a student in
connection with a course of instruction leading to employment in any
occupation requiring licensure awarded after the passage of an
examination offered in English, the institution shall test the
student after the student completes the ESL instruction to determine
that the student has attained a level of proficiency in English
reasonably equivalent to the level of English in which the licensure
examination is offered.
(f) If the results of a test administered pursuant to subdivision
(b), (c), (d), or (e) indicate that the student has not attained
adequate English language proficiency after the completion of ESL
instruction, the institution shall offer the student additional
instruction without charge, for a period of up to 50 percent of the
number of hours of instruction previously offered by the institution
to the student, to enable the student to attain adequate English
language proficiency.
(g) This section does not apply to grantees funded under Section
1672 of Title 29 of the United States Code.
(h) The institution, for five years, shall retain an exemplar of
each language proficiency test administered pursuant to this section,
an exemplar of the answer sheet for each test, a record of the score
for each test, the answer sheets or other responses submitted by
each person who took each test, and the documentation required by
subdivision (d).
(i) For the purpose of determining compliance with this article,
ESL instruction shall be deemed a course
program , and a charge shall be deemed to be made for ESL
instruction if a student is obligated to make any payment in
connection with the educational service, including, but not
necessarily limited to, the ESL instruction that is offered by the
institution.
(j) The tests used by an institution pursuant to this section
shall be tests that are approved by the USDE, or tests such as the
Test of English as a Foreign Language and the Comprehensive Adult
Student Assessment System, that are generally recognized by public
and private institutions of higher learning in this state for the
evaluation of English language proficiency. An institution shall
demonstrate to the bureau that the tests and passing scores that it
uses establish that students have acquired the degree of proficiency
in oral and written English required by subdivision (b), (c), (d), or
(e), whichever is applicable. The required level of proficiency in
oral and written English shall not be lower than the sixth grade
level.
(k) All tests shall be independently administered, without charge
to the student and in accordance with the procedures specified by the
test publisher. The tests shall not be administered by a previous or
current owner, director, consultant, or representative of the
institution or by any person who previously had, or currently has, a
direct or indirect financial interest in the institution other than
the arrangement to administer the test. The bureau shall adopt
regulations that contain criteria to ensure independent tests
administered including the criteria established by the USDE and set
forth on pages 52160 and 52161 of Volume 55 of the Federal Register,
dated December 19, 1990.
94903.7. For purposes of compliance with Section 94903.6, the
bureau shall do the following:
(a) Promulgate regulations concerning the manner of documenting
the nature of a student's existing knowledge, training, and skill and
that ESL instruction offered by the institution is necessary to
enable the student to use that existing knowledge, training, and
skill, as prescribed in subdivision (d) of Section 94903.6. The
regulations shall specify all of the following:
(1) Reliable sources of information, independent of the student
and the institution, from which documentation of a student's existing
knowledge, training, and skill shall be obtained.
(2) Circumstances that must be documented by the institution to
establish that information from a designated reliable source of
information cannot reasonably be obtained.
(3) Alternate acceptable sources of information if designated
reliable sources are not available.
(4) The nature of all required types of documentation.
(b) Develop and distribute instructions, informational materials,
or forms to assist institutions in developing the documentation
described in this section. These instructions, materials, and forms
shall not be subject to review or approval by the Office of
Administrative Law pursuant to any provision of the Government Code.
94904. Before an ability-to-benefit student may execute an
enrollment agreement, the institution shall have the student take an
independently administered examination from the list of examinations
prescribed by the United States Department of Education pursuant to
Section 484(d) of the federal Higher Education Act of 1965 (20 U.S.C.
Sec. 1070a et seq.), as it is, from time to time, amended. The
student may 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. If the United States Department of Education does not have a
list of relevant examinations that pertain to the intended
occupational training, the bureau may publish its own list of
acceptable exams.
94905. (a) During the enrollment process, an institution offering
educational programs designed to lead to positions in a profession,
occupation, trade, or jobs or job titles requiring licensure shall
exercise reasonable care to determine that the student shall
reasonably be eligible to obtain licensure in the profession,
occupation, trade, or jobs or job titles at the time of the student's
graduation for reasons such as age, apparent physical
characteristic, or relevant past criminal conviction.
(b) During the admission or enrollment process, an institution
shall not offer job placement assistance or discuss salaries except
as provided for in Section 94907. After a student has completed more
than 60 percent of a program, the institution may offer job placement
assistance.
94905. (a) (1) An institution offering educational programs
represented to lead to employability in a profession, occupation,
trade, or job or job title for which licensure is required shall be
familiar with those conditions that would make a person ineligible to
obtain licensure after completion of the program.
(2) No institution offering programs represented to lead to
employability in an occupation or with a job title for which
licensure is required, shall enter into an agreement to provide an
educational program to a person whom the institution knows or, by the
exercise of reasonable care, should know, would be ineligible to
obtain that licensure after completion of the program.
(b) During the admission or enrollment process, if an institution
represents that it offers job placement assistance for students while
they attend school shall also disclose to prospective students the
number of requests it had for that assistance during the past
calendar year and the number of those who requested that assistance
whom the institution referred to a job for which the student was
hired while attending the institution.
(c) During the admission or enrollment process, an institution
shall not discuss salaries except as provided in subdivision (a) of
Section 94907.
94905.2. (a) The bureau
shall promulgate regulations for purposes of carrying out the intent
of this article. These regulations may include, but are not limited
to, the following:
(1)
(a) Recruiting.
(2)
(b) Advertising, including advertising on the Internet
or by electronic mail.
(3)
(c) Entrance exams and minimum qualifications of
students.
(4)
(d) Transfer of credits.
(5)
(e) Refund policies.
(6)
(f) Fees paid by students.
(7)
(g) Total student costs.
(8)
(h) Preparing students for careers.
(9)
(i) Financial aid.
(10)
(j) Accreditation.
(11)
(k) Facilities, including satellites.
(12)
(l) Instructors, including qualifications.
(13)
(m) Actions by agents.
(14)
(n) Actions by employees.
(15)
(o) Recordkeeping.
94906. The enrollment agreement shall include all of the
following required terms:
(a) On the first page of the enrollment agreement, in at least
12-point boldface type, the following statement:
"Any questions a student may have regarding this enrollment agreement
that have not been satisfactorily answered by the institution may be
directed to the Bureau for Private Postsecondary Education at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
(b) The name and description of the educational program, including
the total number of credit hours, clock hours, or other increment
required to complete the educational program.
(c) The name and address of the institution and the address where
class sessions shall be held.
(d) A schedule of the total charge, including a list of
any charges that are nonrefundable, clearly identified as
nonrefundable charges.
(e) In underlined capital letters on the same page of the
enrollment agreement in which the student's signature is required,
the total charge for a period of attendance or the entire educational
program.
(f) A statement that the student is responsible for paying the
state assessment amount for the Student Tuition Recovery Fund.
(g) A clear and conspicuous statement that the enrollment
agreement is legally binding when signed by the student and accepted
by the institution.
(h) The following statement in at least 12-point, boldface type
above the space for the student's signature:
"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."
(i) Description of the instruction to be provided, including the
length of programs offered, and all of the
occupations or job titles, if any, to which the program of
instruction is represented to lead.
94906.5. It shall be a violation of this chapter for any
institution or representative of an institution to ask
sign, ask, or induce any person to sign the
student statement specified in Section 94906 if the institution or
representative has not fully and clearly explained the student's
rights, responsibilities, and the institution's policies.
94907. An institution shall clearly and conspicuously make the
following disclosures on its Web site
Internet Web site, if it has an Internet Web site, about each
program at each of the institution's sites, orally and
in writing, to each student before execution of the
enrollment agreement about each program in which the student
expressed interest in enrolling:
(a) A "School Performance Facts Sheet" that discloses the
following information:
(1) Completion numbers and rates, calculated as follows:
The number and percentage of students who began the program, did
not cancel within the cancellation period, and were originally
scheduled at the time of enrollment to complete the program during
the completion tracking period, and the number and percentage of them
who completed the program during that completion tracking period.
(2) For each vocational program and any other program about which
the institution or any representative makes statements about job
availability for students or graduates in the job titles or
occupations to which the program is represented to lead, the
employment numbers and rates, calculated as follows:
(A) For programs for which employment in the occupation does not
require passing a state examination, the number of students who
completed the program during the employment tracking period, but at
least eight months before its end, and the number and percentage of
those students who obtained employment, excluding self-employment,
during the employment tracking period.
(B) For programs for which employment in the occupation does
require passing a state examination, the number of students who
completed the program and for whom the announcement of the
examination results for the first examination available after the
student completed the program occurred during the employment tracking
period, but at least eight months before its end, and the number and
percentage of those students who obtained employment, excluding
self-employment, during the employment tracking period.
(C) For any students the institution documents are self-employed,
the employment calculation shall be made separately and calculated as
set forth in subparagraph (A) or (B), as applicable, and unless the
institution has documentation to the contrary, a statement to the
effect that the school does not have information about whether the
self-employment is part time or full time.
(3) If the institution or a representative of the institution
makes any express or implied claim about the salary that may be
earned after completing a program, such as a claim that the student
may be able to repay a student loan from the salary received at a job
obtained following completion of the program, compensation
information shall be disclosed as follows:
(A) The total number of students who completed the program and
were counted under subparagraph paragraph
(2), and the number and percentage of those who earned salaries
at or above the claimed level during the employment tracking period.
(B) The average annual salary earned during the employment
tracking period by the students counted under subparagraph
paragraph (2).
(4) If the institution or a representative of the institution in
any manner represents that the program might lead to employment in an
occupation or job title for which a state examination is required,
the following:
(A) All licensure or certification requirements established by the
state for the occupation or job title category.
(B) The number of students counted under subparagraph
paragraph (2) who completed a course for which
employment requires passing a state licensing examination, and the
number and percentage of them , who took the
required exam the first time it was available after completion of the
program, and the number and percentage of those who took it
who and passed it.
(5) 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's
research, but it is not the same as actual performance data."
(b) Any other information necessary to substantiate the truth of
any claim made by the institution as to job placement.
(c) Costs of attendance, including a schedule of the total charges
and a list of any charges that are nonrefundable, clearly identified
as nonrefundable charges. The disclosure required under
paragraph (2) of subdivision (a) is deemed to comply with this
requirement.
(d) (1) 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 applied to the balance
due on the loan. Prospective
(2) Prospective students shall be
provided with information , about all loan and
financial aid programs offered or arranged by the institution.
(e) A transferability disclosure. An institution shall provide to
each prospective student for a degree, diploma, or certificate
program, a written statement on a separate piece of paper in at least
12-point type that contains the following statement:
"NOTICE CONCERNING THE TRANSFERABILITY OF UNITS AND DEGREES EARNED AT
OUR SCHOOL:
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. For example, if
you entered our school as a freshman, you may still be a freshman if
you enter another college or university at some time in the future,
even though you earned credits here at our school.
In addition, if you earn a degree, diploma, or certificate in our
(fill in the name of the program) program, it is possible that it may
not serve as a basis for obtaining a higher level degree at another
college or university.
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.
If this institution has any transfer agreements with other colleges
or universities, it must give you a written list and description of
those agreements. agreements."
You should not rely on any other oral statements about
transferability of credits."
(f) (1) A disclosure with a clear and conspicuous caption:
"BUYER'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.
"BUYER'S RIGHT TO CANCEL.
You have a temporary right to cancel this agreement and will owe
only the registration fee of $(insert amount). The school will notify
you in writing at least three days prior to the date you may cancel
to receive a full refund. You must cancel in writing. After (insert
appropriate phrase as specified in Section 94919), you will have the
right to a partial refund if you cancel this agreement. This notice
explains your cancellation and refund rights and how to cancel. These
rights are also explained in the school's catalog and you will
receive a cancellation form on your first day of class."
(2) The disclosure shall contain the institution's refund policy,
together with examples of the application of the policy, and a
(2) The disclosure shall contain a
clear written statement of the institution's refund policy, a table
of the amount of the refund to which the student would be entitled if
the student withdrew from the program after completing a period of
days or weeks of instruction equivalent to 10 percent, 25 percent, 50
percent, 60 percent, and 75 percent of the period of
attendance, 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,
including the title and address of the institution manager to whom
the notice shall be sent or delivered.
(4) If the institution solicited the student or negotiated the
agreement in a language other than English, the disclosure shall be
in that same language.
(g) A statement, provided by the bureau, specifying that it is a
state requirement that a student who pays his or her tuition ,
either directly or through a loan, is required to pay a
state-imposed assessment fee 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
eligibility requirements for the Student Tuition Recovery Fund.
This statement may be included in the same document
as required under subdivision (c).
(h) 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 applied to the balance due on the loan.
(h) A statement providing disclosures as required by Section 69800
of the Education Code. This subdivision shall become operative only
if Senate Bill 1355 of the 2007-08 Regular Session is enacted.
(i) 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.
(j) A statement specifying that the institution is not a public
institution.
(k) A statement specifying whether the institution has a pending
petition in bankruptcy or has had a petition in bankruptcy filed
against it.
(l) The objective sources of the information substantiating the
truthfulness of any claim by the institution or its representative
about salaries earned in any specific job, job title, vocation,
occupation, or trade. Objective sources shall include, but not be
limited to, the California Employment Development Department and the
United States Department of Labor Bureau of Labor Statistics.
94907.5. (a) An institution shall clearly and conspicuously
orally disclose all of the following information when providing the
required related written disclosure:
(1) The information required to be disclosed pursuant to
subdivision (a) of Section 94907.
(2) A statement pointing out on the written disclosure required by
subdivision (c) of Section 94907 the total being charged, the
schedule of payments, and which charges are nonrefundable.
(3) The information required to be disclosed pursuant to paragraph
(1) of subdivision (d) of Section 94907.
(4) The information required by subdivision (e) of Section 94907.
(5) The information required by paragraph (1) of subdivision (f)
of Section 94907.
(6) The information required by subdivision (h) of Section 94907.
(b) The disclosures required by subdivision (a) shall be made to
each prospective student at least one business day prior to the
student's execution of the enrollment agreement.
(c) The disclosures required by paragraphs (1), (2), (4), and (5)
of subdivision (a) shall be made about each program in which the
student expressed interest in enrolling.
(d) At the conclusion of providing the required oral information,
the institution shall advise the prospective student to read and
review the materials provided and ask questions about the content of
the documents that he or she does not understand.
(e) The institution shall have a uniform procedure sufficient to
ensure the disclosures are made as required by this section,
including a method to monitor compliance.
94908. Each disclosure in Section 94907 shall be acknowledged by
the signature of a person representing the institution on a single
form acknowledging delivery of the individually identified
disclosures.
94909. A student may not waive any required term, or receipt of
any disclosure, required by this article.
94910. An enrollment agreement shall be written in language that
is easily understood. If English is not a student's primary language,
and the student is unable to understand the terms and conditions of
the enrollment agreement, the student shall be provided a clear
explanation of the terms and conditions and all cancellation and
refund policies in his or her primary language.
94911. If the recruitment leading to enrollment was conducted in
a language other than English, the enrollment agreement, disclosures,
and statements shall be in that language.
94912. An enrollment agreement shall become operative when the
student attends the first class session.
94913. An enrollment agreement shall not contain a provision that
requires a student to invoke an internal institutional dispute
procedure before enforcing any contractual or other legal rights
or remedies. This does not preclude inclusion of a term in
the enrollment agreement requiring binding arbitration as authorized
under the Federal Arbitration Act pursuant to Title 9 of the United
States Code or other alternative dispute resolution procedures.
or remedies.
94914. An enrollment agreement, note, or other instrument of
indebtedness, or contract relating to payment for educational
services is not enforceable by an institution within or outside this
state governed by this chapter unless, at the time of execution of
that note, other instrument of indebtedness, enrollment agreement, or
contract, the institution has a valid approval to operate pursuant
to this chapter.
Article 11. Consumer Loans to Students
94916. (a) (1) An institution extending credit or lending money
to a person for tuition, fees, or other charges for educational
services to be rendered or furnished shall cause any note,
instrument, or other evidence of indebtedness taken in connection
with that loan or extension of that credit to be conspicuously marked
on the face thereof with the following notice:
94916. (a) (1) For each student who will enter
or has entered into any consumer credit contract that would be
subject to Part 433 (commencing with Section 433.1) of Title 16 of
the Code of Federal Regulations as it exists and as it is amended
thereafter, to pay for any part of the total charge, the institution
shall include the following statement in any written contract or
agreement for educational services:
"NOTICE REGARDING REFUNDS
YOU MAY ASSERT AGAINST THE HOLDER OF THE PROMISSORY NOTE
ANY CONSUMER CONTRACT YOU SIGNED IN ORDER TO
FINANCE THE COST OF INSTRUCTION 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." ANY
CONSUMER CONTRACT."
(2) An institution that fails to comply with paragraph (1) shall
be liable for any damage or loss suffered or incurred by any
subsequent assignee, transferee, or holder of that
other holder of any evidence of indebtedness on account
of the absence of that notification.
(b) Notwithstanding the presence or absence of the notification
required in subdivision (a), and notwithstanding an agreement in
which a student waives the right to assert a claim or defense, an
institution making a loan or extending credit and the
any transferee, assignee, or holder of
that any evidence of indebtedness, are subject
to all defenses and claims that could be asserted against the
institution that was to render or furnish those educational services
by a party to that evidence of indebtedness or by the person to whom
these educational services were to be rendered or furnished up to the
amount remaining to be paid thereon.
(c) An institution that participates in
Any consumer credit contract for financing provided under
a federal student assistance program and that complies with the
financial disclosure and notification requirements for those
programs is in compliance as to that financing with the
standards prescribed by this section.
(d) For any term defined under Part 433 (commencing with Section
433.1) of Title 16 of the Code of Federal Regulations and used in
this section, the definition under Part 433 shall apply to that term
in this section.
94918. In making consumer loans credit
available to students, an institution shall also comply with
the requirements of the Federal Truth in Lending Act pursuant to
Title 15 of the United States Code.
94918.5. An institution shall establish specific written
standards for student admissions for each educational program. These
standards shall be related to the particular educational program.
Article 12. Cancellations, Withdrawals, and Refunds
94919. (a) A student shall have the right to cancel an
agreement for a program of instruction, including any equipment, as
follows: enrollment agreement, set forth in
subdivision (b) and as follows:
(1) For degree programs, the student shall have the right to
cancel prior to or on the first day of instruction.
(2) For nondegree programs in excess of 50 days, the student shall
have the right to cancel until midnight of the fifth business
day after the day on which the student did any of the
following, whichever is later:
(A) Attended the first class of the program of instruction that is
the subject of the agreement.
(B) Received a copy of the notice of cancellation as provided in
Section 94921.5.
(C) Received a copy
of the enrollment agreement and the disclosures as required by
Section 94907. day after the day on which the student
attended the first class of the program of instruction that is the
subject of the agreement.
(3) For nondegree programs of 50 or fewer days, the student shall
have the right to cancel the agreement until midnight of the date
that is one business day for every 10 days of scheduled program
length, rounded up for any fractional increments thereof.
(4) For distance learning programs, if the first lesson is sent to
the student by mail, the institution shall send it by first-class
mail, postage prepaid, documented by a certificate of mailing, and
the student shall have a right to cancel until midnight of the eighth
business day after the first lesson was mailed. If the first lesson
is sent to the student electronically, the student shall have the
right to cancel until midnight of the third business day after the
first lesson was electronically received by the student.
(b) The period for cancellation under this section begins as set
forth in subdivision (a), when either of the following occurs:
(1) The student receives a copy of the notice of cancellation as
provided in Section 94921.5.
(2) The student receives a copy of the enrollment agreement and
the disclosures as required by Section 94907 and Section 94907.5,
whichever is later.
(b)
(c) Cancellation shall occur when the student gives
written notice of cancellation to the institution at the address
specified in the agreement.
(c)
(d) The written notice of cancellation, if given by
mail, is effective when deposited in the mail properly addressed with
postage prepaid and if given by e-mail, is effective when
e-mailed to the e-mail address, if any, specified in the agreement
.
(d)
(e) The written notice of cancellation need not take a
particular form and, however expressed, is effective if it indicates
the student's desire not to be bound by the agreement.
(e)
(f) Except as provided in subdivision (g) of Section
94920.1, if the student cancels the agreement, the institution shall
refund, without penalty or obligation, 100 percent of the amount paid
to that institution by or on behalf of the student, less a
reasonable deposit or application
registration fee not to exceed one hundred fifty dollars
($150), within 10 days after the institution receives notice
of the ($150) or one hundred dollars ($100) for
distance education, within 20 days after the institution receives
notice of the cancellation.
(f)
(g) If the institution gave the student any equipment,
the student shall return the equipment within 10 days following the
date of the notice of cancellation. If the student fails to return
the equipment within this 10-day period, the institution may retain
that portion of the consideration paid by the student equal to the
documented cost to the institution of the equipment, but not
more than the equipment's fair market value, and shall refund
the portion of the consideration exceeding the documented
cost to the institution of the equipment within 10 days after the
period within which the student is required to return the equipment.
cost to the institution of the equipment within 20
days after the institution receives notice of the cancellation. The
school shall have the burden of proof to establish each item of the
equipment's fair market value. The student may retain the
equipment without further obligation to pay for it.
94920. (a) If a student withdraws from a program of instruction
after the applicable period described in Section 94919, the
institution shall remit a refund as provided in Section 94920.1
within 30 days following the student's withdrawal.
(b) If any portion of the tuition was paid from the proceeds of a
loan, the refund shall be sent to the lender or, if appropriate, to
the state or federal agency that guaranteed or reinsured the loan.
Any amount of the refund in excess of the unpaid balance of the loan
shall be first used to repay any student financial aid program from
which the student received benefits, in proportion to the amount of
the benefits received, and any remaining amount shall be paid to the
student.
(c) Within 10 days of the day on which the refund is made, the
institution shall notify the student in writing of the date on which
the refund was made, the amount of the refund, the method of
calculating the refund, and the name and address of the entity to
which the refund was sent. The following statement shall be placed at
the top of the notice in at least 10-point boldface type: "This
Notice is Important. Keep It For Your Records."
(d) Except for subdivision (a), this section shall not apply to a
student if both of the following occur:
(1) All of that student's tuition and fees are paid by a
third-party organization, such as a Job Training Partnership Act
agency, a regional occupational program or regional occupational
center, a private industry council, or a vocational rehabilitation
program, if the student is not obligated to repay the third-party
organization or does not lose time-limited educational benefits.
(2) The third-party organization and the institution have a
written agreement, entered into on or before the date the student
enrolls, that no refund will be due to the student if the student
withdraws prior to completion. The institution shall provide a copy
of the written agreement to the bureau. The institution shall
disclose to any student whose refund rights are affected by this
agreement, in all disclosures required to be given to the student by
this chapter, that the student is not entitled to a refund. It is the
intent of the Legislature that this paragraph not apply to any
student whose tuition and fees are paid with funds provided to the
third-party organization for the student's benefit as part of any
program that provides funds for training welfare recipients or that
is related to welfare reform.
94920.1. (a) An Except as provided in
subdivision (b) and Section 94919, an institution shall refund
the unused portion of tuition fees and other charges if a student
does not register for the period of attendance, withdraws at any time
prior to completion of the course period of
attendance , or otherwise fails to complete the period of
enrollment attendance as provided in
this section.
(b) For students enrolled in a degree program, the institution
shall provide a pro rata refund to students who completed 60 percent
or less of the course of instruction period
of attendance .
(c) Except as provided in subdivision (d), the refund shall be
calculated as follows:
(1) Deduct a reasonable registration fee not to exceed
one hundred fifty dollars ($150) from the total tuition
charge charge for the program or period of attendance,
as applicable .
(2) Divide this figure by the number of hours in the
program credit or clock hours in the program or period
of attendance .
(3) The quotient derived in paragraph (2) is the hourly charge
for the program .
(4) The amount owed by the student for the purposes of calculating
a refund is derived by multiplying the total hours attended by the
hourly charge for instruction and adding to that product the amount
of the registration fee specified in paragraph (1).
(5) The refund shall be any amount in excess of the figure derived
in paragraph (4) that was paid by the student.
(6) The refund amount shall be adjusted as provided in subdivision
(f) or (g) for equipment and as provided in subdivision (h) for
resident instruction, if applicable.
(d) For an educational service offered by distance learning, the
refund shall be calculated as follows:
(1) Deduct a reasonable registration fee not to exceed
one hundred dollars ($100) from the total tuition charge
charge for the program or period of attendance, as
applicable .
(2) Divide this figure by the number of lessons for which the
student has paid, but which the student has not completed and
submitted.
(2) Divide this figure by the number of lessons for the program or
period of attendance, as applicable.
(3) The quotient derived in paragraph (2) is the per lesson
charge.
(4) The amount owed by the student for the purposes of calculating
a refund is derived by multiplying the total number of lessons
for which the student has paid completed
by the per lesson charge calculated in paragraph (3) and adding
to that product the amount of the registration fee specified in
paragraph (1).
(5) The refund shall be any amount in excess of the figure derived
in paragraph (4) that was paid by the student.
(6) For the purposes of this section, an institution may specify
in an enrollment agreement the time limits within which a student is
required to complete the requirements of a distance learning program.
(e) Notwithstanding any provision in any agreement, all of the
following shall apply:
(1) All amounts that the student has paid, however denominated,
shall be deemed to have been paid for instruction, unless the student
has paid a specific charge for equipment set forth in the agreement
for the program of instruction.
(2) In the case of an educational service offered by distance
learning, all amounts that the student has paid, however denominated,
shall be deemed to have been paid for lessons unless the student has
paid a specific charge for equipment or resident instruction as set
forth in the agreement for the educational service.
(3) The total number of hours necessary to complete each lesson of
distance learning instruction shall be substantially equivalent to
each other lesson unless otherwise permitted by the bureau.
(4) An equal charge shall be deemed to have been made for each
class or credit hour of instruction or each lesson.
(f) If the institution specifies in the agreement a separate
charge for equipment that the student actually obtains and the
student returns that equipment in good condition, allowing for
reasonable wear and tear, within 30 days following the date of the
student's withdrawal, the institution shall refund the charge for the
equipment paid by the student. If the student fails to return that
equipment in good condition, allowing for reasonable wear and tear,
within 30 days following the date of the student's withdrawal, the
institution may offset against the refund calculated under
subdivision (a) subdivision (c) or (d), as applicable,
the documented cost to the institution of that equipment. The
student shall be liable for the amount, if any, by which the
documented cost for equipment exceeds the refund amount calculated
under subdivision (a) subdivision (c) or (d),
as applicable . For the purposes of this subdivision,
equipment cannot be returned in good condition if the equipment
cannot be reused because of clearly recognized health and sanitary
reasons and this fact is clearly and conspicuously disclosed in the
enrollment agreement.
(g) If the institution specifies in the enrollment
agreement a separate charge for equipment, which the student has not
obtained at the time of the student's withdrawal, the refund also
shall include the amount paid by the student that is allocable to
that equipment.
(h) If an agreement for educational service offered by distance
learning includes a separate charge for resident instruction, which
the student has not begun at the time of the student's withdrawal,
the institution shall refund the charge for the resident instruction
paid by the student. If the student withdraws from the educational
service after beginning the resident instruction, the institution
shall pay a refund equal to the amount the student paid for the
resident instruction multiplied by a fraction, the numerator of which
is the number of hours of resident instruction which the student has
not received but for which the student has paid, and the denominator
of which is the total number of hours of resident instruction for
which the student has paid.
(i) For the purpose of determining a refund under this section, a
student shall be deemed to have withdrawn from a program of
instruction when any of the following occurs:
(1) The student notifies the institution of the student's
withdrawal or of the date of the student's withdrawal, whichever is
later.
(2) The institution terminates the student's enrollment as
provided in the agreement.
(3) The student has failed to attend classes for a three-week
period. For the purpose of determining the amount of the refund, the
date of the student's withdrawal shall be deemed the last date of
recorded attendance. For the purposes of determining when the refund
must be paid pursuant to subdivision (a) of Section 94940
94920 , the student shall be deemed to have
withdrawn at the end of the three-week period.
(4) The student has failed to submit three consecutive lessons, or
has failed to submit a completed lesson within 60 days of its due
date as set by an educational service offered by distance learning.
For the purposes of this paragraph purpose of
determining the amount of the refund , the date of the student'
s withdrawal shall be deemed to be the date on which the student
submitted the last completed lesson. For the purposes of
determining when the refund must be paid pursuant to subdivision (a)
of Section 94920, the student shall be deemed to have
withdrawn at the end of the 60 days or the date the student failed to
timely submit the third consecutive lesson.
(j) An institution shall have the burden of proof to establish the
validity of the amount of every refund. The institution shall
maintain records for five years of all the evidence on which the
institution relies for the determination of refund amounts.
94921. A degree granting 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 program is
structured may petition the bureau for an alternative method of
calculating tuition refunds. The bureau shall determine the details
of an alternative refund policy, by regulation, and shall take into
consideration the contract for educational services
enrollment agreement entered into with the
student, as well as the length and character of the educational
program in determining standards for refunds. The decision of the
bureau shall be final.
94921.1. (a) For purposes of this section, any reference to
an institution also includes its representatives who are involved
with financial aid. All institutions subject to the approval
requirements of this chapter shall identify each student who makes an
application for, and receives, loan moneys other than loans provided
under a governmental student financial aid program, to the extent
that this information is reasonably available to the institution,
including, but not necessarily limited to, students for whom the
institution makes a referral to a lender, students for whom the
institution acts as lender or an agent of the lender
, students receiving loan proceeds from a lending entity in
which the institution has a financial interest, or students for whom
loan proceeds are received by the institution on behalf of the
student. For purposes of this section, "financial interest"
excludes ownership of mutual fund shares in a mutual fund that
directly owns shares of the lender.
(b) The institution shall ensure, either by providing the service
or by documenting that the service has been provided by the lending
entity, that each student has received information regarding the
student's rights and obligations related to loans at the time of
signing a promissory note or other loan document , and at
the end of a student's academic program. If a student leaves a
program prior to completion of the program, the institution shall
make an attempt to contact that student at the last known student
address to ensure the student has received information from the
lending entity or to provide information to the student itself, and
shall keep evidence of its attempt to do so.
(c) (1) An institution shall disclose to the student any formal
(c) An institution that participates in private student loan
programs and suggests those programs to its students or refers
students to those programs, shall do all of the following:
(1) Disclose to the student any formal
or informal relationship between the institution and the
lender, including, but not necessarily limited to, an agreement
between the institution and lender to make referrals to the
lender , to place that lender in a preferred status for
students of that institution, or to provide any benefit, financial or
otherwise, to the institution as a result of referral or student
borrowing from the lender , and shall disclose any
financial interest of the institution in the lending entity.
(2) Clearly and fully disclose to students the criteria and
process used to select the preferred lenders. For purposes of this
section, lenders shall be considered to be "preferred" or have a
"preferred status" if the institution recommends or suggests specific
lending institutions to its students or potential students to use to
obtain loans to finance
their education.
(3) Clearly and fully disclose to students and their families
their right and ability to choose a lender of their choice regardless
of whether or not the lender is a preferred lender.
(4) Clearly and fully disclose to students and their families all
of the students' options under Title IV of the Federal Higher
Education Act as amended, including information about any terms or
conditions of available loans under that title that are more
favorable to the student in terms of available loans and grants under
this title, before the institution refers or suggests that the
students use lenders making private educational loans.
(2)
(5) Disclosure under this subdivision shall be made,
prior to the loan proceeds being received by the student
signing of the indebtedne ss ,
whenever the institution has a reasonable opportunity to know of the
student's application for the loan.
(3)
(6) Disclosure under this subdivision shall be included
in the information and materials provided to the student at the time
of negotiation of the enrollment contract, whenever the institution
has a reasonable opportunity to know of the student's application for
that loan.
(4) A gift or other consideration of below one hundred dollars
($100) in total value exchanged between an institution and a lender
in a calendar year shall not be considered to create a financial
relationship.
(d) Institutions that participate in private student loan programs
shall not do any of the following:
(1) Receive a gift or other consideration or anything of value of
more than one hundred dollars ($100) in total value from a lender in
a calendar year.
(2) Provide preferred lender status to a lender unless the
decision is based solely on the best interests of the students and
their families.
(3) Receive anything of value for serving on an advisory board or
committee of any provider of student private loans.
(4) Give any lender preferred status unless the lender provides
assurances to the institution and to borrowers, who take out the
loans from such lenders, that the advertised benefits during any
deferral period and during repayment will continue to inure to the
benefit of borrowers regardless of whether the lender's loans are
sold.
(5) Give any lender preferred status in exchange for benefits
provided by the lender to the institution or to the institution's
students in connection with a different type of student loan.
(d)
(e) The institution shall keep sufficient records to
demonstrate compliance with this section.
(e) If it is determined that an institution failed to disclose a
financial relationship with, or a financial interest in, a lending
entity that provided a loan to a student at that institution as
required by this chapter, that loan shall be considered paid in full.
(f) Where federal statutes and regulations conflict with or exceed
the disclosure provisions of this chapter
section with respect to private educational loans , the federal
statutes and regulations shall take precedence for institutions
subject to approval under this chapter that are eligible to
participate in student financial aid programs under Title IV of the
federal Higher Education Act of 1965.
94921.5. (a) When a person executes an agreement obligating that
person to pay any money to an institution for a course program of
instruction or related equipment, the institution shall provide the
person with a document containing only the following notice:
""NOTICE OF CANCELLATION, REFUND AND OTHER
RIGHTS''
""1. You may cancel your contract for school,
without any penalty or obligations other than
payment of the registration fee of $(insert
amount) as described in the Notice of
Cancellation form that will be given to you
(insert 'on the first day of class' or 'with the
first lesson in a distance learning program,'
whichever is applicable).
without any penalty or obligations prior
to or
on (insert 'the fifth business day following
your first class session' or 'the first day of
class,' whichever is applicable) as
described in the Notice of Cancellation form
that will be given to you (insert 'on your first
day of class' or 'with the first lesson in a
distance learning program,' whichever is
applicable).
""Read the Notice of Cancellation form for an
explanation of your cancellation rights
""A different cancellation policy applies for
distance learning programs. Read the Notice of
Cancellation form for an explanation of your
c an cellation rights an
d responsibilities. If you
have lost your
If you have lost your Notice of Cancellation
form, ask the
school for
form, ask the school for another form.
""2. After the end of the cancellation period,
you also have the right to stop school at any
time, and you have the right to receive a refund
for the part of the course not taken. Your
based on the part of the program you completed.
Your refund rights are described in the contract.
If
contract. If you have lost your contract, ask
the school
for
the school for a description of the refund
policy.
policy.
""3. If the school closes before you graduate,
you may be entitled to a refund. Contact the
Bureau for Private Postsecondary Education
at the address and telephone number printed
below for information.
""4. If you have any complaints, questions, or
problems that you cannot work out with the
school, write or call the Bureau for Private
Postsecondary Education:
_________________________________________________
(insert mailing address, e-mail address, and
telephone number of the Bureau for Private
Postsecondary Education)''
(b) Except as otherwise provided in subdivision (a), the notice
required by subdivision (a) shall be printed in 10-point type or
larger in English and, if any solicitation or negotiation
leading to the agreement for a course of instruction was in a
language other than English, in that other language.
(c) The institution shall also make its refund policy known to
currently enrolled students.
(c)
(d) A copy of the notice, in each language in which the
notice was printed pursuant to subdivision (b), shall be posted at
all times in a conspicuous place at the main entrance of the
institution, in each admissions office, and in each room used for
instruction. The bureau may prescribe the size and format of the
posted notice. This subdivision does not apply to an institution that
exclusively offers distance learning programs.
(d)
(e) Upon request, the institution shall provide a
student with a copy of a Notice of Cancellation form, a written
description of the student's refund rights, a copy of the contract
executed by the student, a copy of documents relating to loans or
grants for the student, and a copy of any document executed or
initialed by the student.
(e)
(f) The bureau may provide for the inclusion of
additional information in the notice set forth in subdivision (a).
94921.7. An institution shall provide the student with two
cancellation forms at the first class attended by the student or with
the first lesson in a distance learning course submitted by the
student. The form shall be completed in duplicate, in 12-point
or larger type, captioned "Notice of Cancellation," and shall
contain the following statement:
""Notice of Cancellation
______________________________
(Date)
(Enter date of first class, date first lesson
received, or date first lesson was mailed,
(Insert date of first class, date first lesson
received, date first lesson was received
electronically, or date first lesson was mailed,
whichever is applicable)
""You may cancel this contract for school,
without any penalty or obligation (other than
payment of the $(insert amount of registration
fee) registration fee) by the date stated below.
without any penalty or obligation by the date
stated below.
""If you cancel, any payment you have made,
""If you cancel, any payment you have made and
other than the registration fee, and any
any negotiable instrument signed by you shall be
returned to you within 30 days following the
school's receipt of your cancellation
notice.
""But, if the school gave you any equipment, you
must return the equipment within 30 days of the
date you signed a cancellation notice. If you do
not return the equipment within this 30-day
period, the school may keep an amount out of
what you paid that equals the cost of the
equipment.
equipment, but no more than what the school can
show is the equipment's fair market value.
""The total amount charged for each item of
equipment shall be separately stated. The am
sch o unt
ol
charged for each item of equipment shall
not exceed the equipment's fair market value.
The school shall have the burden of proof to
establish the equipment's fair market value. The
school is required to refund any amount over
that as
that as provided above, and you may keep the
equipment.
equipment.
""To cancel the contract for school, mail or
deliver a signed and dated copy of this
cancellation notice, or any other written notice
to:
___________________________, at
________________________________.
(name of institution) (address of institution)
(Insert name of institution) (Insert address of
institution and e-mail address if available)
""NOT LATER THAN _____________________________
MIDNIGHT OF
_____________________________
(Enter midnight of the date applicable under
(Insert the date applicable under Section 949 3
1 9)
""I cancel the contract for school.
__________________________________
(Date)
__________________________________
(Student's signature)
__________________________________
""REMEMBER, YOU MUST CANCEL IN WRITING. You do
not have the right to cancel by just telephoning
the school or by not coming to class.
""If you have any complaints, questions, or
problems which you cannot work out with the
school, write or call the Bureau for Private
Postsecondary Education:
_________________________________________________
____
__________________
(insert mailing address, e-mail address, and
telephone number of the Bureau for Private
Postsecondary Education)''
94922. A student may not waive any provision of this
article chapter .
Article 13. Student Tuition Recovery Fund
94923. The Student Tuition Recovery Fund is continued in
existence. All assessments and fees collected pursuant to this
article shall be credited to this fund, along with any interest on
the moneys, for the administration of this article. Notwithstanding
Section 13340 of the Government Code, the moneys in the fund are
continuously appropriated to the bureau without regard to fiscal year
for the purposes of this chapter article
.
94923.1. This article applies to the following:
(a) Institutions, and students and former students of the
institutions, subject to this chapter.
(b) Institutions, and students and former students of the
institutions exempt under paragraph (7) of subdivision (a) of, and
under subdivision (b) of, Section 94874.
94923.2. It is the intent of the Legislature that, when a student
is enrolled in an institution that closes prior to the completion of
the student's program, the student shall have the option for a
teach-out at another institution approved by the bureau. The bureau
shall seek to promote teach-out opportunities wherever possible and
shall inform the student of his or her rights, including payment from
the fund, transfer opportunities, and available teach-out
opportunities, if any.
94923.4. In the event of the closure of an institution or a
teach-out, the bureau shall give priority, for payments from the
fund, to a student who transfers to another institution to complete a
course of study.
94923.5. The bureau shall assess an institution, except for an
institution that receives all of its students' total charges from
third-party payers, for the purpose of compliance with the provisions
of this chapter that are related to the Student Tuition
Recovery Fund. A "third-party payer," for the purposes of this
article, means an employer, government program, or other payer that
pays a student's total charges directly to the institution when no
separate agreement for the repayment of that payment exists between
the third-party payer and the student. A student who receives
third-party payer benefits for his or her institutional charges is
not eligible for benefits from the Student Tuition
Recovery Fund. A student who receives third-party payer benefits for
his or her total charge is not eligible for benefits from the Student
Tuition Recovery Fund.
94923.6. (a) (1) The amount assessed each institution shall be
calculated only for those students who are eligible to be reimbursed
from the fund and shall be based on the actual amount charged each of
these students for total tuition cost as the
total charge , regardless of the portion that is paid or
prepaid. The amount of the assessment on an institution shall
be determined in accordance with subdivisions (b) and (c).
(2) Each institution shall collect the amount assessed by the
bureau in the form of a Student Tuition Recovery Fund fee from its
new students, and except that an institution
may waive collection of the Student Tuition Recovery Fund fee and
assume the fee as a debt of the institution. Each institution shall
remit these fees to the bureau during the quarter immediately
following the quarter in which the fees were collected from the
students, or from loans funded on behalf of the students,
except that an institution may waive collection of the Student
Tuition Recovery Fund fee and assume the fee as a debt of the
institution. The fees collected by the institution shall be
students, or for an institution that assumes the fee as its own
debt, in the quarter immediately followin g the quarter in
which the institution collected any initial payment from or on
behalf of the student. For institutions that do not operate on the
quarter system, the institution shall remit these fees to the bureau
during the 10-week period immediately following the 10-week period in
which the fees or payments were collected unless the bureau
establishes a different time period for such institutions. The fees
collected by the institution shall be placed in a separate
bank or trust account and not commingled with any
other moneys until the institution remits those fees to the bureau.
If the institution assumes the fee, this need not be placed
in a separate account. The student's subsequent
disenrollment after the cancellation period shall not
relieve the institution of the obligation to pay the fee to the
bureau, nor be the basis for refund of the fee to the student. An
institution may not charge a fee of any kind for the collection of
the Student Tuition Recovery Fund fee. An institution shall refuse to
enroll a student who has not paid, or made provisions to pay, the
appropriate Student Tuition Recovery Fund fee.
(b) A Student Tuition Recovery Fund fee shall be set at the rate
of two dollars and fifty cents ($2.50) per thousand dollars of
tuition charged, rounded to the nearest thousand dollars.
(c) If, at any time, the balance in the Student Tuition Recovery
Fund is more than ten million dollars ($10,000,000), net of
after deducting the estimated liability
associated with any pending claims, the bureau may reduce
the amount of the assessment to a level less than may
reduce the amount of the Student Tuition Recovery Fund fees from
which the assessment is paid to less than two dollars and fifty
cents ($2.50) per thousand dollars of tuition charged, rounded to
the nearest thousand dollars, or suspend collection of the fee for a
period determined by the bureau, so as to maintain a fund balance of
between ten million dollars ($10,000,000) and twenty-five million
dollars ($25,000,000) after deducting the estimated liability
associated with any pending claims. . Prior to any reduction in
the assessment, the bureau shall demonstrate that amounts in the
fund would be reasonably sufficient to pay any pending or future
claims.
(d) (1) The bureau may by regulation levy
additional reasonable special assessments on an institution under
this section only if these assessments are required to ensure that
sufficient funds are available to satisfy the anticipated costs of
paying reasonably anticipated student claims.
(2) The bureau shall levy a special assessment when the balance in
the Student Tuition Recovery Fund falls below one million dollars
($1,000,000) as certified by the Secretary of State and Consumer
Services.
(3) The bureau shall provide at least 90 days' notice of an
impending special assessment to each affected institution. This
notice shall be posted on the bureau's Internet Web site and shall be
sent electronically to the affected institutions.
(e) The assessments, fees, and special assessments shall be paid
into the Student Tuition Recovery Fund, and the deposits shall be
allocated, except as otherwise provided for in this chapter, solely
for the payment of valid claims to students.
94923.7. Moneys deposited in the Student Tuition Recovery Fund
are exempt from execution and may not be the subject of litigation or
liability on the part of creditors of those institutions or
students.
94923.8. (a) The bureau shall adopt a procedure allowing for
payments to the fund to be made through online transactions and other
electronic means.
(b) The bureau shall adopt audit and accounting procedures to
ensure that institutions fully pay the amounts that are due to the
fund.
94923.9. The bureau's costs of administration of the Student
Tuition Recovery Fund authorized by this article shall not be paid
from the fund, but shall be paid from the Private Postsecondary
Education Fund.
94924. In the event of a closure by any approved institution
under this chapter, any assessments that have been made against those
institutions, but have not been paid into the fund, shall be
recovered. Any payments from the fund made to students on behalf of
any institution shall be recovered from that institution.
94925. In addition to civil remedies, the bureau may order an
institution to pay previously unpaid Student Tuition Recovery Fund
fees or to reimburse the bureau for any payments made from the fund
in connection with the institution. Before any order is made pursuant
to this section, the bureau shall provide written notice to the
institution and notice of the right to request a hearing within 30
days of the service of the notice. If a hearing is not requested
within 30 days of the service of the notice, the bureau may order
payment. If a hearing is requested, Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code shall apply, and the bureau shall have all the powers prescribed
in that chapter. Within 30 days after the effective date of the
issuance of the order, the bureau may enforce the order in the same
manner 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.
94925.5. Payment of Student Tuition Recovery Fund fees is due
within 30 days of the bureau's demand for payment. A penalty of 20
percent of the amount due shall be added for late payment.
94925.6. (a) A student or former student who was enrolled in an
institution, paid all or part of the total charge, and meets any of
the following conditions is eligible for reimbursement from the fund:
(1) The student suffered economic loss as a result of the closure
of the institution. For the purposes of this section, "closure"
includes the closure of the entire institution or of the site the
student is attending, the termination of either the distance learning
or residence portion of a distance learning program, and the
termination of a program for some or all of the students enrolled in
the program before the time these students were originally scheduled
to complete it, or before a student who has been continuously
enrolled in a program has been permitted to complete all the
educational services and classes that comprise the program. For
purposes of this paragraph, "closure" does not include the relocation
of a site to a new location within 20 miles where the student
continues to attend classes.
(2) The student obtained a final judgment against the institution
based on a violation of this chapter, and the student certifies that
the judgment cannot be collected after diligent collection efforts.
(3) The institution failed to pay refunds or charges on behalf of
a student to a third party for license fees or any other purposes, or
to provide equipment or materials for which a charge was collected
within 180 days before the closure of the institution.
(4) The institution's failure to pay or reimburse loan proceeds
under a federally guaranteed student loan program as required by law
or to pay or reimburse proceeds from whatever source received by the
institution prior to closure in excess of tuition and other costs.
(5) The commission of a breach or anticipatory breach of the
agreement for the program.
(6) A decline in the quality or value of the course of instruction
within the 30-day period before the closure of the institution or,
if the decline began before that period, the period of decline
determined by the bureau.
(7) The commission of a fraud by the institution during the
solicitation or enrollment of, or during the program participation
of, the student.
(b) A claim based on paragraph (1) or (6) of subdivision (a),
shall be filed within three years after a closure or after the
student or former student receives both the explanation of rights and
the claim form under Section 94925.7, whichever is later. A claim
based on paragraph (2) of subdivision (a), shall be filed within
three years after the judgment is final. A claim based on paragraph
(3), (4), (5), or (7) of subdivision (a), shall be filed within three
years of discovery.
(c) The time for filing a claim shall be tolled from the date a
student files a claim for a federal discharge or compromise on any
guaranteed loan received in connection with the student's program
until the decision accepting or rejecting the claim for discharge or
compromise becomes final. The time for filing a claim shall be tolled
from the date a student who has a private educational loan received
in connection with the student's program seeks a discharge from the
lender by asserting against the lender the claims and defenses he has
against the school until a decision on that assertion becomes final.
94925.7. (a) The institution shall provide to the bureau, at the
time of the institution's closure, the names and addresses of persons
who were students of an institution within 60 days prior to its
closure, and shall give notice to these students, within 30 days of
the institution's closure, of their rights under the fund and how to
apply for payment, and shall provide a claim application to each
student. If the institution fails to comply with this subdivision,
the bureau shall make its best effort to obtain the names and
addresses of these students and shall give them notice, within 90
days of the institution's closure, of their rights under the fund and
how to apply for reimbursement from the fund, and shall provide a
claim application. The notice and claim application required by this
subdivision shall be as described in subdivision (b).
(b) The bureau shall develop a form notice fully explaining a
student's rights in plain language, which shall be used by the
institution or the bureau to comply with the requirements of
subdivision (a). The form notice shall include, or be accompanied by,
a claim application and an explanation of how to complete the
application.
(c) The bureau shall determine and maintain a record of the names
of the persons in control at the institution which is closing or has
been closed with unpaid funds.
94925.8. A student applying for payment from the Student Tuition
Recovery Fund shall file with the bureau in a form and manner
prescribed by the bureau.
94925.9. Whenever the bureau receives from a student a completed
application for payment from the Student Tuition Recovery Fund, the
bureau shall, as soon as is practicable, cause to be delivered to
that student a written notice specifying, in plain language, the
rights of a student under this article.
94925.10. (a) If the bureau pays a claim in accordance with this
article, the amount of the payment shall be (1) the greater of either
(A) the total student loan debt incurred by the student in
connection with attending the institution, including any interest,
fees and costs, including collection charges on the student loans, or
(B) the student's total charge for the program, less (2) the amount
of any refund, reimbursement, indemnification, restitution,
compensatory damages, settlement, debt forgiveness, discharge,
cancellation, or compromise, or any other benefit received by, or on
behalf of, the student before the bureau's payment of the claim in
connection with the student loan debt or total charge for the
program. The payment also shall include the amount the institution
collected and failed to pay to third parties on behalf of the student
for licensing fees or any other purpose. However, if the claim is
based solely on a final judgment being awarded, the amount of the
payment shall be the amount of the portion of the judgment
attributable to loss suffered by the student, but no more than the
amount otherwise allowed by this section.
(b) The amount of the payment determined under this subdivision is
not dependent on the amount of the refund to which the student would
have been entitled after a voluntary withdrawal.
(c) Upon payment of a claim, all of a student's rights against an
institution shall be deemed assigned to the bureau to the extent of
the amount of the payment.
94925.11. If the bureau denies a student's claim, or reduces the
amount of a claim, the bureau shall notify the student of the denial
or reduction and of the student's right to request a hearing within
60 days or any longer period permitted by the bureau. The 60-day
period for requesting a hearing may be extended for good cause on
request. If a hearing is not requested within 60 days or any
additional period reasonably requested by the student, the bureau's
decision shall be final. If a hearing is requested, Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code shall apply.
94925.12. Whenever reasonably possible, the bureau shall
negotiate with a lender, holder, guarantee agency, or the United
States Department of Education for the full compromise or discharge
of student loan obligations to relieve students of loss, and thereby
reduce the amount of student claims charged against the fund.
94925.13. The bureau, with the student's permission, may pay a
student's claim directly to the lender, holder, guarantee agency, or
the United States Department of Education under a federally
guaranteed student loan program only if the payment of the claim
fully satisfies all of the student's loan obligations related to
attendance at the institution for which the claim was filed.
94925.14. (a) Within 60 days of the bureau's receipt of a
completed application for payment, the bureau shall pay the claim
from the Student Tuition Recovery Fund or deny the claim. The bureau,
for good cause, may extend the time period for up to an additional
90 days to investigate the accuracy of the claim.
(b) The bureau may also delay the payment of a claim from the fund
pending the resolution of the bureau's attempt to obtain a
compromise or discharge of the claimant's student loan obligation
from the federal government, the guarantee agency, a private lender,
or their representatives.
(c) If any adverse action that is not stayed is taken against the
claimant, including the commencement of a civil or administrative
action, tax offset, the enforcement of a judgment, or the denial of
any government benefit, the bureau shall immediately pay a valid
claim without regard to any extension or delay the bureau previously
allowed or could otherwise allow.
Article 14. Orderly Institutional Closure and Teach-outs
94926. At least 30 days prior to closing, the institution shall
notify the bureau 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.
94927. An institution shall be considered in default of the
enrollment agreement when an educational program is discontinued or
canceled or the institution closes prior to completion of the
educational program. When an institution is in default, student
institutional charges may be refunded on a pro rata basis if the
bureau 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 student
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.
94927.5. Prior to closing, an institution shall provide the
bureau with pertinent student records, including transcripts, as
determined by the bureau by regulation.
Article 15. Completion and Placement Requirements
94928. An institution shall report annually to the bureau the
information required to be disclosed in the institution's "School
Performance Fact Sheet" statement pursuant to Section 94907.
94930. An institution shall use the data derived from the
regulatory standards or the accreditation standards in the School
Performance Fact Sheet, as established in Section 94907.
94929. Nothing contained in subdivision (a) of Section 94907
prevents an institution from disclosing to students, but not in the
School Performance Fact Sheet, the institution's completion,
employment, salary, or licensure numbers and rates, at the site and
for the program in which the student is interested, determined in
accordance with the accreditation standards applicable to the
institution or another California state agency's regulatory standards
applicable to the institution, if the institution complies with all
of the following:
(a) The other disclosures are not misleading and do not detract
attention from the information required to be disclosed by
subdivision (a) of Section 94907.
(b) The criteria used to determine the numbers and rates of other
disclosures must be disclosed in immediate proximity to the disclosed
numbers or rates determined by those other criteria.
(c) The disclosures required by subdivision (a) of Section 94907
are prominently disclosed before any other numbers or rates.
(d) The institution discloses to the bureau in its application and
its annual report any other disclosures about completion,
employment, salaries, or licensure passage that it has made during
the previous year, the format of any written disclosures used and any
it intends to make in the following year, along with the basis for
calculating the other applicable standards.
Article 16. Compliance, Enforcement, Process, and Penalties
94931. The bureau shall determine an institution's compliance
with the requirements of this chapter. When the bureau has
reason to believe that an institution may be out of compliance, it
may conduct an investigation of the institution. As part of its
compliance with the requirements of this chapter. If
the bureau has reason to believe that there may have been a violation
of this chapter or regulations adopted by the bureau, the bureau
shall conduct a timely investigation of the institution. As part of
its compliance program, the bureau may perform unannounced
inspections of institutions. The bureau shall have the authority to
require institutions to comply with requests for reports and other
documents necessary to complete audits, investigations, inquiries,
and inspections. If the bureau believes that there may have
been a violation of this chapter or regulations adopted by the
bureau, the bureau shall conduct a timely investigation of the
institution. and inspections. If the bureau
determines, after completing an investigation, that an institution
has violated any applicable laws or regulations, the bureau shall
take action against the institution pursuant to this article as it
deems appropriate.
94931.1. The bureau, with the assistance and guidance of, and in
cooperation with, the Attorney General, shall develop an enforcement
program. The enforcement program shall include, but not necessarily
be limited to, all of the following:
(a) Initial and periodic training of bureau staff.
(b) The enforcement process shall ensure that all institutions
subject to this chapter are in compliance with this chapter and that
the bureau takes appropriate action, pursuant to this article,
against institutions not in compliance.
(c) Site visits that include a review of records, inspection of
facilities, interviews of administrators, faculty and students, and
observation of class instruction.
(d) Audits, site visits, and investigations that are triggered by
complaints and where the bureau has reasonable cause to believe an
institution commits one or more acts constituting grounds for
discipline. The audits and site visits may be unannounced and may
include a qualitative review and assessment encompassing minimum
standards, interviews with administrators, faculty, staff, and
students, inspection of facilities, records, and recordkeeping, and
all records required to be maintained under subdivision (b) of
Section 94862, subdivisions (b) and (c) of Section 94899.7, and
Sections 94887 and 94920.1, or necessary to show compliance with this
chapter.
94931.3. The bureau shall promulgate regulations to implement the
intent of this article, including, but not limited to, the probation
and suspension of an approval to operate.
94932. The bureau may provide the institution with the
opportunity to remedy noncompliance, impose fines, place the
institution on probation, or suspend or revoke the institution's
approval to operate as it deems appropriate to the severity of an
institution's violations of this chapter, and the harm caused to
students. In addition to any other action that the bureau may take
under this chapter, the bureau may suspend or revoke an institution's
approval to operate because of the institution's failure to pay
Student Tuition Recovery Fund fees and pay penalties.
94933. As much as is practicable, the bureau shall seek to
resolve instances of noncompliance, including the use of alternative
dispute resolution procedures in Chapter 4.5 (commencing with Section
11420.10) of Part 1 of Division 3 of Title 2 of the Government Code.
94934. (a) As part of the compliance program, an institution
shall submit an annual report to the bureau, under penalty of
perjury, by July 1 of each year, or another date designated by the
bureau, 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 records required by subdivision (e) of Section 94897.5.
(5) The total charges for each educational program by period of
attendance.
(6) A statement indicating whether the institution is, or is not,
current in remitting Student Tuition Recovery Fund assessments.
(7) Additional information deemed by the bureau to be reasonably
required to ascertain compliance with this chapter.
(b) The bureau shall prescribe the annual report's format and
method of delivery.
94935. (a) Bureau staff who, during an inspection of an
institution, detect a minor violation of this chapter, or regulations
adopted pursuant to this chapter, shall issue a notice to comply
before leaving the institution. The bureau shall establish a
voluntary informal appeal process, by regulation, within one year of
the enactment of this chapter.
(b) An institution that receives a notice to comply shall have no
more than 30 days from the date of inspection to remedy the
noncompliance.
(c) Upon achieving compliance, the institution shall sign and
return the notice to comply to the bureau.
(d) A single notice to comply shall be issued listing separately
all the minor violations cited during the inspection.
(e) A notice to comply shall not be issued for any minor violation
that is corrected immediately in the presence of the bureau staff.
Immediate compliance may be noted in the inspection report, but the
institution shall not be subject to any further action by the bureau.
(f) A notice to comply shall be the only means the bureau shall
use to cite a minor violation discovered during an inspection.
The For minor violations, the bureau
shall not take any other enforcement action specified in this chapter
against an institution that has received a notice to comply if the
institution complies with this section.
(g) If an institution that receives a notice to comply pursuant to
subdivision (a) disagrees with one or more of the alleged minor
violations listed in the notice to comply, an institution shall send
the bureau a written notice of disagreement. The agency may take
administrative enforcement action to seek compliance with the
requirements of the notice to comply.
(h) If an institution fails to comply with a notice to comply
within the prescribed time, the bureau may take administrative
enforcement action.
(i) A minor violation is a deviation from the requirements of this
chapter, or regulations adopted pursuant to this chapter, that, in
the determination of the bureau, has not or reasonably will not
result in harm to students and is not either:
(1) Committed knowingly, willfully, or intentionally.
(2) A repeated violation or a violation committed by a
recalcitrant violator that has engaged in a pattern of neglect or
disregard for the requirements of this chapter.
94936. (a) As a consequence of an investigation, the bureau may
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 ten thousand dollars
($10,000) for each violation. The bureau 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.
(c) (1) The citation shall be in writing and describe the nature
of the violation and the specific provision of law or regulation that
is alleged to have been violated.
(2) The citation shall inform the institution of its right to
request a hearing in writing within 30 days from service of the
citation.
(3) If a hearing is requested, the bureau shall select an informal
hearing pursuant to Chapter 4.5 (commencing with Section 11445.10)
of Part 1 of Division 3 of Title 2 of the Government Code or a formal
hearing pursuant to Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code.
(4) If a hearing is not requested, payment of the administrative
fine is due 30 days from the date of service, and shall not
constitute an admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative
fine is ordered, the administrative fine is due 30 days from when the
final order is entered.
(6) The bureau may enforce the administrative fine as if it were a
money judgment pursuant to Title 9 (commencing with Section 680.10)
of Part 2 of the Code of Civil Procedure.
(d) All administrative fines shall be deposited in the Private
Postsecondary Education Administration Fund.
94937. (a) As a consequence of an investigation, the bureau 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) Material or repeated violations of this chapter or regulations
adopted pursuant to this chapter that have resulted in harm
to adopted pursuant to this chapter that resulted in
harm or may reasonably be expected to result in harm to
students.
(b) The bureau shall adopt regulations governing probation and
suspension of an approval to operate.
(c) The bureau may seek reimbursement for the costs of an
investigation pursuant to Section 125.3 of the Business and
Professions Code.
(d) An institution shall not be required to pay the same
cost of investigation to more than one agency.
(e) This section shall not apply to any minor violation of the
chapter.
94938. (a) If the bureau 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 Chapter 4.5 (commencing with
Section 11460.10) of Part 1 of Division 3 of Title 2 of the
Government Code.
(b) The bureau shall adopt regulations to give this subdivision
effect pursuant to Section 11460.20 of the Government Code.
94939. (a) The bureau 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.
94940. As a consequence of an adverse administrative action
by the bureau under this chapter against an institution, the
institution may request a hearing pursuant to Chapter 4.5 (commencing
with Section 11445.10) or Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code.
94941. (a) An individual who has cause to believe that an
institution has violated this chapter, or regulations adopted
pursuant to this chapter, may file a complaint with the bureau
against the institution. The complaint shall set forth the alleged
violation, and shall contain any other information as may be required
by the bureau.
(b) Taking into account the nature and seriousness of the alleged
violation, the bureau shall take action to ascertain the facts and to
verify the complaint. The action may include interviewing
institution management or employees, students and others about
the student's complaint, the institution's response, the student's
response to the institution's response or other relevant
circumstances , conducting an investigation, holding an
informal hearing, or other appropriate investigative activity.
(c) Upon the facts discovered, the bureau may take appropriate
adverse administrative enforcement action.
(d) If the bureau finds that an institution's violation of this
chapter has caused damage or loss to a student or group of students,
the bureau may order the institution to take
adverse administrative action including, but not limited to, an order
that the institution provide appropriate restitution to that
student or group of students.
(e) If the bureau determines that a minor violation occurred, the
only adverse actions that may be taken in connection with the minor
violation are those that would be allowed under Section 94935.
(f) A person entitled to bring an action for the recovery of
damages or other relief which is based on a violation of this chapter
shall not be required to file a complaint pursuant to this section,
or to pursue or exhaust any administrative process or remedy before
bringing the action.
94943. The following violations of this chapter are public
offenses:
(a) Knowingly Willfully 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 Willfully providing
false information to the bureau 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.
94943.5. (a) The Attorney General, a district attorney, or a city
attorney may make investigations as may be necessary to carry out
this chapter, including investigations of complaints. The bureau may
jointly bring actions as necessary to enforce this chapter, including
civil actions for injunctive relief.
(b) Nothing in this section or this chapter precludes the Attorney
General, a district attorney, or a city attorney from taking any
action each is otherwise lawfully authorized to take.
94944. An institution shall designate and maintain an agent for
service of process within this state, and provide the name, address,
and telephone number of the agent to the bureau. The bureau shall
furnish the agent's name, address, and telephone number to a person
upon request.
94945. Notwithstanding any other provision of law, the bureau
shall cite any person in control , and that person shall
be subject to a fine not to exceed fifty thousand dollars ($50,000),
for operating an institution without proper approval to operate
issued by the bureau pursuant to this chapter.
94945.1. (a) Each institution subject to this chapter shall be
deemed to have authorized the bureau or accrediting agency to provide
to the Attorney General, any district attorney or 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.
(b) Within 30 days of receiving written notice from the Attorney
General, any district attorney or city attorney, or the Student Aid
Commission, an accrediting agency shall provide, free of charge, the
requesting official with all documents or other material concerning
an institution accredited by that accrediting agency that are
designated specifically or by category in the written notice.
(c) If the Attorney General, any district attorney or city
attorney, or the Student Aid Commission is conducting a confidential
investigation of an institution and so informs the accrediting
agency, the accrediting agency shall not inform that institution of
the investigation.
(d) If an accrediting agency willfully fails to comply with this
section, the accrediting agency shall be liable for a civil penalty
of not less than two thousand five hundred dollars ($2,500) or more
than twenty-five thousand dollars ($25,000) for each violation.
Penalties awarded pursuant to this section shall be deposited in the
Private Postsecondary and Vocational Education Administration Fund or
any successor fund.
94945.2. If any person in control willfully violates
this chapter and the violation results in the closure of an
institution, that person shall pay to all students of the closed
institution full refunds or full compensation for actual damages
resulting from the closure that were not paid by the closed
institution. This section shall not apply to any minor violation
of this chapter.
94945.3. If the bureau determines after an investigation that an
institution has violated this chapter, the bureau may order the
institution to pay the costs and expenses incurred in connection with
the investigation and any civil or administrative proceeding
involving the violation that was investigated, including charges made
by the Attorney General for his or her services, and any expenses
incurred by a district attorney. Before any order for the payment of
costs and expenses is made under this section, the bureau shall
provide the institution with written notice, including notice of the
institution's right to request a hearing within 15 days of service of
the notice. If a hearing is not timely requested, the bureau may
order payment. If a hearing is requested, the bureau shall select an
informal hearing pursuant to Chapter 4.5 (commencing with Section
11445.10) 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.
Within 30 days after the effective date of the order, the bureau may
enforce the order as if it were a money judgment pursuant to Title 9
(commencing with Section 680.10) of Part 2 of the Code of Civil
Procedure. Alternatively, the bureau may seek the costs
and expenses allowed under this
section in a civil proceeding. An institution shall not be required
to pay the same costs and expenses incurred in connection with the
investigation and any civil or administrative proceeding to more than
one investigating agency.
94945.4. Nothing in this chapter shall be construed to stay,
limit, or preclude the enforcement of rights or remedies under
any other applicable statute or law .
Article 17. Severability
94946. The provisions of this chapter are severable. If any
provision of this chapter 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.
94946.5. This chapter shall be liberally construed to effectuate
its intent and achieve its purposes.
Article 18. Reporting
94947. The bureau shall provide regular updates to the
Legislature by participating in annual oversight hearings conducted
by the appropriate policy committees and budget
comm ittees and subcommittees of the Senate and
Assembly. The updates shall describe the bureau's progress in
adopting and enforcing regulations and the provisions of this
chapter.
94948. On or before July 1, 2013, the Office of the Legislative
Analyst shall conduct a comprehensive review of the bureau and report
to the Legislature and the Governor on the extent to which the
bureau has implemented the provisions of this chapter.
94948.5. (a) It is the intent of the Legislature that all of the
following occur:
(1) The Bureau of State Audits, through an audit request approved
by the Joint Legislative Audit Committee, conducts an audit pursuant
to Chapter 6.5 (commencing with Section 8543) of Division 1 of Title
2 of the Government Code that assesses the extent accreditation by
accrediting bodies provides sufficient assurance that the various
goals and requirements of this chapter are met, including, but not
limited to, the degree to which the accreditation process ensures the
quality and effectiveness of education at accredited institutions
and affords meaningful and effective student protections.
(2) In conducting the audit, the Bureau of State Audits protects
the confidentiality of information obtained from private individuals
and organizations pursuant to subdivision (a) of Section 8545 of the
Government Code.
(3) In conducting the audit, the Bureau of State Audits may
perform, but is not limited to, all of the following acts:
(A) Examine accrediting bodies that accredit institutions which
are subject to this chapter. These shall include a sample of regional
and national accrediting bodies. The auditor shall recognize that
the bureau by statute must approve accredited schools and rely on
that accreditation to the extent that those schools comply with this
chapter.
(B) To the extent deemed necessary to meet the audit standards the
Bureau of State Audits is required to comply with Section 8546.1 of
the Government Code, contacting and obtaining information from
institutions or programs operated by institutions accredited by the
accrediting bodies.
(4) The Bureau of State Audits issues a public report on the
results of the audit not later than December 31, 2011.
(b) It is further the intent of the Legislature that all of the
following occur:
(1) The accrediting bodies, and any of the institutions or
programs operated by those institutions accredited by those bodies,
provide the Bureau of State Audits with full access to any
information, records, or individuals that the State Auditor
determines are necessary to perform the audit specified in
subdivision (a), in a manner consistent with Section 8545.2 of the
Government Code.
(2) Upon receiving the information provided pursuant to paragraph
(1), the Bureau of State Audits protects the confidentiality of that
information as required by subdivision (a) of Section 8545, Section
8545.1, and subdivision (b) of Section 8545.2 of the Government Code.
In keeping information confidential as required by those provisions,
the Bureau of State Audits shall provide reasonable assurances to
the accrediting bodies and institutions that any information used to
support the conclusions and facts in the audit report will be used in
a manner that does not disclose confidential information that the
accrediting body or the institution reasonably claims is not subject
to public disclosure under state or federal law.
(3) If any of the entities described in paragraph (1) refuse to
provide the Bureau of State Audits access to the information,
records, or individuals the Bureau of State Audits determines are
necessary to perform the audit, the Bureau of State Audits notifies
the Legislature and the Governor, in writing, of that fact, and that
notification shall become a public record.
(c) It is the intent of the Legislature that this article be
amended before January 1, 2012, to reflect the findings and
recommendations of the report completed pursuant to this section.
Article 19. Termination
94949. It is the intent of the Legislature that the termination
of this chapter be resolved in a comprehensive measure that resolves
this issue for all boards and bureaus within the Department of
Consumer Affairs. The sunsetting of the prior law has been to the
detriment of both students and schools and should be avoided in the
future.
SEC. 20. Section 11105.8 is added to the Vehicle Code, to read:
11105.8. Beginning January 1, 2009, a person may not own,
operate, or provide instruction for an institution for the driving of
motortrucks of three or more axles that are more than 6,000 pounds
unladen weight unless all of the following conditions are met:
(a) The institution has been approved by the Department of Motor
Vehicles.
(b) The institution, at the time of application and thereafter,
maintains both of the following:
(1) Proof of compliance with liability insurance requirements that
are the same as those established by the Department of Motor
Vehicles for a driving institution owner, pursuant to Section 11103,
unless the Department of Motor Vehicles deems it necessary to
establish a higher level of insurance coverage.
(2) A satisfactory safety rating by the Department of the
California Highway Patrol is established pursuant to Division 14.8
(commencing with Section 34500).
(c) The institution, at all times, shall maintain the vehicles
used in driving training in safe mechanical condition. The
institution shall keep all records concerning the maintenance of the
vehicles.
(d) The driving instructions meet the requirements set forth in
Section 11104.
(e) Any other terms and conditions required by the Department of
Motor Vehicles to protect the public safety or to meet the
requirements of this chapter.
SEC. 21. Section 4980.36 of the Business and Professions Code, as
added by Section 11 of this act, shall become operative only if both
this bill and Senate Bill 1218 of the 2007-08 Regular Session are
enacted, and in that event, Section 4980.36 of the Business and
Professions Code becomes operative on January 1, 2009.
SEC. 22. Section 4980.37 of the Business and Professions Code, as
amended by Section 12 of this act, shall become operative only if
both this bill and Senate Bill 1218 of the 2007-08 Regular Session
are enacted and, in that event, Section 4980.37 of the Business and
Professions Code becomes operative on January 1, 2009.
SEC. 23. Section 4980.40 of the Business and Professions Code, as
amended by Section 13 of this act, shall become operative only if
this bill is enacted and SB 1218 of the 2007-08 Regular Session is
not enacted.
SEC. 24. 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.
SEC. 25. 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 extend and modify, as soon as possible, critical
provisions of law that govern the administration of private
postsecondary education, it is necessary that this act take effect
immediately.
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37, 43, 59, 107, and 108.
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