BILL NUMBER: AB 1013	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Higher Education (Block (Chair),
Achadjian, Brownley, Fong, Galgiani, Miller, and Portantino)

                        FEBRUARY 18, 2011

   An act to amend Sections 94904 and 94920 of the Education Code,
relating to private postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1013, as introduced, Committee on Higher Education. Private
postsecondary education.
   Existing law establishes the Bureau for Private Postsecondary
Education in the Department of Consumer Affairs.
   Existing law imposes various requirements upon the private
institutions subject to the act in order to ensure minimum standards
of instructional quality and institutional stability, including a
requirement that an ability-to-benefit student, as defined, must take
and pass an independently administered examination from the list of
examinations prescribed by the United States Department of Education
before executing an enrollment agreement.
   This bill would provide that 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 examinations.

   Existing law requires institutions that do not participate in the
federal student financial aid programs to refund to a student 100% of
the amount paid for institutional charges, less a reasonable deposit
or application fee, as specified, if notice of cancellation is made
through attendance at the first class session, or the 7th class day
after enrollment, whichever is later.
   This bill would reduce the time period during which the notice of
cancellation may be made from the 7th class day after enrollment to
the 7th day after enrollment.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 94904 of the Education Code is amended to read:

   94904.   (a)    Before an ability-to-benefit
student may execute an enrollment agreement, the institution shall
have the student take an independently administered examination from
the list of examinations prescribed by the United States Department
of Education pursuant to Section 484(d) of the federal Higher
Education Act of 1965 (20 U.S.C. Sec. 1070a et seq.) as it is, from
time to time, amended. The student  may   shall
 not enroll unless the student achieves a score, as specified by
the United States Department of Education, demonstrating that the
student may benefit from the education and training being offered.

   (b) If the United States Department of Education does not have a
list of relevant examinations that pertain to the intended
occupational training, the bureau may publish its own list of
acceptable examinations. 
  SEC. 2.  Section 94920 of the Education Code is amended to read:
   94920.  An institution that does not participate in the federal
student financial aid programs shall do all of the following:
   (a) The institution shall advise each student that a notice of
cancellation shall be in writing, and that a withdrawal may be
effectuated by the student's written notice or by the student's
conduct, including, but not necessarily limited to, a student's lack
of attendance.
   (b) Institutions shall refund 100 percent of the amount paid for
institutional charges, less a reasonable deposit or application fee
not to exceed two hundred fifty dollars ($250), if notice of
cancellation is made through attendance at the first class session,
or the seventh  class  day after enrollment,
whichever is later.
   (c) The bureau may adopt by regulation a different method of
calculation for instruction delivered by other means, including, but
not necessarily limited to, distance education.
   (d) The institution shall have a refund policy for the return of
unearned institutional charges if the student cancels an enrollment
agreement or withdraws during a period of attendance. The refund
policy for students who have completed 60 percent or less of the
period of attendance shall be a pro rata refund.
   (e) The institution shall pay or credit refunds within 45 days of
a student's cancellation or withdrawal.