BILL NUMBER: AB 2296	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Block

                        FEBRUARY 24, 2012

   An act to amend Sections 94897 and 94909 of, and to add Section
94913 to, the Education Code, relating to private postsecondary
education.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2296, as introduced, Block. Private Postsecondary Education Act
of 2009: disclosures.
   Existing law, the California Private Postsecondary Education Act
of 2009, provides, among other things, for student protections and
regulatory oversight of private postsecondary schools in the state.
The act is enforced by the Bureau for Private Postsecondary Education
within the Department of Consumer Affairs. The act prohibits an
institution, as defined, from, among other things, offering an
unaccredited doctoral degree program without disclosing to
prospective students prior to enrollment that the degree program is
unaccredited, whether the degree issued is in a field that requires
licensure in California, and any known limitation of the degree,
including, but not limited to, whether the degree is recognized for
licensure or certification in California and other states.
   This bill would apply that prohibition to the offering of
associate, baccalaureate, and masters degree programs as well.
   The act requires an institution to provide a prospective student
prior to enrollment with a school catalog and a School Performance
Fact Sheet, which are required to contain specified disclosures
relating to the school or a particular program. The act also requires
an institution to submit an annual report to the bureau that
includes specified information for educational programs offered in
the reporting period.
   This bill would require the school catalog to include a statement
specifying whether the institution, or any of its programs, are
accredited by an approved accrediting agency of the United States
Department of Education, and, if the institution offers an associate,
baccalaureate, masters, or doctoral degree program that is not
accredited by such an agency, the statement would be required to
disclose that nonaccreditation and all known limitations of the
degree. The bill would require an institution that maintains an
Internet Web site to provide on that Internet Web site the school
catalog, a School Performance Fact Sheet for each educational program
offered by the institution, student brochures offered by the
institution, a link to the bureau's Internet Web site, and the
institution's most recent annual report submitted to the bureau. The
bill would also require the institution to include information
concerning where students may access the bureau's Internet Web site
anywhere the institution identifies itself as being approved by the
bureau.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 94897 of the Education Code is amended to read:

   94897.  An institution shall not do any of the following:
   (a) Use, or allow the use of, any reproduction or facsimile of the
Great Seal of the State of California on a diploma.
   (b) Promise or guarantee employment, or otherwise overstate the
availability of jobs upon graduation.
   (c) Advertise concerning job availability, degree of skill, or
length of time required to learn a trade or skill unless the
information is accurate and not misleading.
   (d) Advertise, or indicate in promotional material, without
including the fact that the educational programs are delivered by
means of distance education if the educational programs are so
delivered.
   (e) Advertise, or indicate in promotional material, that the
institution is accredited, unless the institution has been accredited
by an accrediting agency.
   (f) Solicit students for enrollment by causing an advertisement to
be published in "help wanted" columns in a magazine, newspaper, or
publication, or use "blind" advertising that fails to identify the
institution.
   (g) Offer to compensate a student to act as an agent of the
institution with regard to the solicitation, referral, or recruitment
of any person for enrollment in the institution, except that an
institution may award a token gift to a student for referring an
individual, provided that the gift is not in the form of money, no
more than one gift is provided annually to a student, and the gift's
cost is not more than one hundred dollars ($100).
   (h) Pay any consideration to a person to induce that person to
sign an enrollment agreement for an educational program.
   (i) Use a name in any manner improperly implying any of the
following:
   (1) The institution is affiliated with any government agency,
public or private corporation, agency, or association if it is not,
in fact, thus affiliated.
   (2) The institution is a public institution.
   (3) The institution grants degrees, if the institution does not
grant degrees.
   (j) In any manner make an untrue or misleading change in, or
untrue or misleading statement related to, a test score, grade or
record of grades, attendance record, record indicating student
completion, placement, employment, salaries, or financial
information, including any of the following:
   (1) A financial report filed with the bureau.
   (2) Information or records relating to the student's eligibility
for student financial aid at the institution.
   (3) Any other record or document required by this chapter or by
the bureau.
   (k) Willfully falsify, destroy, or conceal any document of record
while that document of record is required to be maintained by this
chapter.
   (l) Use the terms "approval," "approved," "approval to operate,"
or "approved to operate" without stating clearly and conspicuously
that approval to operate means compliance with state standards as set
forth in this chapter. If the 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:
   (1) The institution or its educational programs are endorsed or
recommended by the state or by the bureau.
   (2) The approval to operate indicates that the institution exceeds
minimum state standards as set forth in this chapter.
   (m) Direct any individual to perform an act that violates this
chapter, to refrain from reporting unlawful conduct to the 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.
   (n) Compensate an employee involved in recruitment, enrollment,
admissions, student attendance, or sales of educational materials to
students on the basis of a commission, commission draw, bonus, quota,
or other similar method related to the recruitment, enrollment,
admissions, student attendance, or sales of educational materials to
students, except as provided in paragraph (1) or (2):
   (1) If the educational program is scheduled to be completed in 90
days or less, the institution shall pay compensation related to a
particular student only if that student completes the educational
program.
   (2) For institutions participating in the federal student
financial aid programs, this subdivision shall not prevent the
payment of compensation to those involved in recruitment, admissions,
or the award of financial aid if those payments are in conformity
with federal regulations governing an institution's participation in
the federal student financial aid programs.
   (o) Require a prospective student to provide personal contact
information in order to obtain, from the institution's Internet Web
site, educational program information that is required to be
contained in the school catalog or any information required pursuant
to the consumer information requirements of Title IV of the federal
Higher Education Act of 1965, and any amendments thereto.
   (p) Offer an unaccredited  associate, baccalaureate, masters,
or  doctoral degree program without disclosing to prospective
students prior to enrollment that the degree program is unaccredited,
whether the degree issued is in a field that requires licensure in
California, and any known limitation of the degree, including, but
not limited to, whether the degree is recognized for licensure or
certification in California and other states.
  SEC. 2.  Section 94909 of the Education Code is amended to read:
   94909.  (a) Prior to enrollment, an institution shall provide a
prospective student, either in writing or electronically, with a
school catalog containing, at a minimum, all of the following:
   (1) The name, address, telephone number, and, if applicable,
Internet Web site address of the institution.
   (2) Except as specified in Article 2 (commencing with Section
94802), a statement that the institution is a private institution and
that it is approved to operate by the bureau.
   (3) The following statements:
   (A) "Any questions a student may have regarding this catalog that
have not been satisfactorily answered by the institution may be
directed to the Bureau for Private Postsecondary Education at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
   (B) "As a prospective student, you are encouraged to review this
catalog prior to signing an enrollment agreement. You are also
encouraged to review the School Performance Fact Sheet, which must be
provided to you prior to signing an enrollment agreement."
   (C) "A student or any member of the public may file a complaint
about this institution with the Bureau for Private Postsecondary
Education by calling (toll-free telephone number) or by completing a
complaint form, which can be obtained on the bureau's Internet Web
site (Internet Web site address)."
   (4) The address or addresses where class sessions will be held.
   (5) A description of the programs offered and a description of the
instruction provided in each of the courses offered by the
institution, the requirements for completion of each program,
including required courses, any final tests or examinations, any
required internships or externships, and the total number of credit
hours, clock hours, or other increments required for completion.
   (6) If the educational program is designed to lead to positions in
a profession, occupation, trade, or career field requiring licensure
in this state, a notice to that effect and a list of the
requirements for eligibility for licensure.
   (7) Information regarding the faculty and their qualifications.
   (8) A detailed description of institutional policies in the
following areas:
   (A) Admissions policies, including the institution's policies
regarding the acceptance of credits earned at other institutions or
through challenge examinations and achievement tests, admissions
requirements for ability-to-benefit students, and a list describing
any transfer or articulation agreements between the institution and
any other college or university that provides for the transfer of
credits earned in the program of instruction. If the institution has
not entered into an articulation or transfer agreement with any other
college or university, the institution shall disclose that fact.
   (B) Cancellation, withdrawal, and refund policies, including an
explanation that the student has the right to cancel the enrollment
agreement and obtain a refund of charges paid through attendance at
the first class session, or the seventh day after enrollment,
whichever is later. The text shall also include a description of the
procedures that a student is required to follow to cancel the
enrollment agreement or withdraw from the institution and obtain a
refund consistent with the requirements of Article 13 (commencing
with Section 94919).
   (C) Probation and dismissal policies.
   (D) Attendance policies.
   (E) Leave-of-absence policies.
   (9) The schedule of total charges for a period of attendance and
an estimated schedule of total charges for the entire educational
program.
   (10) A statement reporting whether the institution participates in
federal and state financial aid programs, and if so, all consumer
information that is required to be disclosed to the student pursuant
to the applicable federal and state financial aid programs.
   (11) A statement specifying that, if a student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund, and that, if the student has received
federal student financial aid funds, the student is entitled to a
refund of the moneys not paid from federal student financial aid
program funds.
   (12) A statement specifying whether the institution has a pending
petition in bankruptcy, is operating as a debtor in possession, has
filed a petition within the preceding five years, or has had a
petition in bankruptcy filed against it within the preceding five
years that resulted in reorganization under Chapter 11 of the United
States Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.).
   (13) If the institution provides placement services, a description
of the nature and extent of the placement services.
   (14) A description of the student's rights and responsibilities
with respect to the Student Tuition Recovery Fund. This statement
shall specify that it is a state requirement that a student who pays
his or her tuition is required to pay a state-imposed assessment for
the Student Tuition Recovery Fund. This statement shall also describe
the purpose and operation of the Student Tuition Recovery Fund and
the requirements for filing a claim against the Student Tuition
Recovery Fund.
   (15) The following statement:


"NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED
AT OUR INSTITUTION
  The transferability of credits you earn at (name of institution) is
at the complete discretion of an institution to which you may seek
to transfer. Acceptance of the (degree, diploma, or certificate) you
earn in (name of educational program) is also at the complete
discretion of the institution to which you may seek to transfer. If
the (credits or degree, diploma, or certificate) that you earn at
this institution are not accepted at the institution to which you
seek to transfer, you may be required to repeat some or all of your
coursework at that institution. For this reason you should make
certain that your attendance at this institution will meet your
educational goals. This may include contacting an institution to
which you may seek to transfer after attending (name of institution)
to determine if your (credits or degree, diploma or certificate) will
transfer."


   (16) A statement specifying whether the institution, or any of its
programs, are accredited by an approved accrediting agency of the
United States Department of Education. If the institution offers an
associate, baccalaureate, masters, or doctoral degree program that is
not accredited, the statement shall disclose that nonaccreditation
and all known limitations of the degree program. 
   (b) If the institution has a general student brochure, the
institution shall provide that brochure to the prospective student
prior to enrollment. In addition, if the institution has a
program-specific student brochure for the program in which the
prospective student seeks to enroll, the institution shall provide
the program-specific student brochure to the prospective student
prior to enrollment.
   (c) An institution shall provide the school catalog to any person
upon request. In addition, if the institution has student brochures,
the institution shall disclose the requested brochures to any
interested person upon request.
  SEC. 3.  Section 94913 is added to the Education Code, to read:
   94913.  (a) An institution that maintains an Internet Web site
shall provide on that Internet Web site all of the following:
   (1) The school catalog.
   (2) A School Performance Fact Sheet for each educational program
offered by the institution.
   (3) Student brochures offered by the institution.
   (4) A link to the bureau's Internet Web site.
   (5) The institution's most recent annual report submitted to the
bureau.
   (b) An institution shall include information concerning where
students may access the bureau's Internet Web site anywhere the
institution identifies itself as being approved by the bureau.