BILL NUMBER: AB 2296	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 9, 2012

INTRODUCED BY   Assembly Member Block

                        FEBRUARY 24, 2012

   An act to amend Sections 94897  and 94909   ,
94909, 94910, 94911, 94928, 94929.5, and 94929.7  of, and to
add Section 94913 to, the Education Code, relating to private
postsecondary education.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2296, as amended, Block.  California  Private
Postsecondary Education Act of  2009: disclosures. 
 2009.  
    Existing 
    (1)     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   master'
s  degree programs  as well   without
disclosing that the institution, or specified degree program, is not
accredited, and would list specified limitations of the degree
program whose disclosure the bill would   require  .

    The 
    (2)     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   is  required to
contain specified disclosures relating to the school or a particular
 educational  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  is not
accredited, or  offers an associate, baccalaureate, 
masters   master's  , or doctoral degree program
that is not accredited  by such an agency   in a
field that requires licensure in California  , the  bill
would require the  statement  would be required
 to disclose that nonaccreditation and all known  and
specified  limitations of the degree  program  .
 The  
   (3) The act requires an institution to provide a prospective
student prior to enrollment with a School Performance Fact Sheet,
which is required to contain specified information relating to the
educational program, including, among other things, salary or wage
information if the institution or a representative of the institution
makes any express or implied claim about the salary that may be
earned after completing the educational program.  
   This bill would remove that limitation, and require all
institutions to include salary or wage information in the fact sheet,
not just institutions that make express or implied claims about the
salary that may be earned after completing the educational program.
The bill also would require the fact sheet to disclose salary or wage
data in a manner that the bureau, in collaboration with other
agencies, deems sufficient for the bureau to independently calculate
employment and salary or wage information for each graduate of each
educational program. The bill would require the fact sheet to include
the most recent 3-year cohort default rate for federal student loans
reported by the United States Department of Education and the
percentage of students receiving federal student loans if the
institution participates in federal financial aid programs. 

   (4) Existing law defines graduates employed in the field for
purposes of the act.  
   This bill would revise that definition to include graduates who
are gainfully employed within 6 months of a specified date in a
single position for at least 13 weeks, working at least 17.5 hours
per week in a certain occupation listed by the institution, as
specified.  
   (5) Existing law requires an institution to annually report
specified information regarding completion rates, job placement
rates, license examination passage rates, and salary and wage
information to the bureau and to publish that information in its
School Performance Fact Sheet. Existing law requires the information
used to substantiate these rates to be documented and maintained by
the institution for at least 5 years, and authorizes an institution
to retain the information in electronic format.  
   This bill would additionally require an institution to annually
report, and publish in its School Performance Fact Sheet, the most
recent 3-year cohort default rate for federal student loans for the
institution, the percentage of enrolled students receiving federal
student loans, and a list of occupations for which each of the
institution's educational programs is intended to train students, as
specified. The bill also would require the information used to
substantiate the annually reported rates and information to include
specified information, and would require an institution to retain the
information in an electronic format and make it available to the
bureau upon request. 
    (6)     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
  yes  . 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   master's  , 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, 
 institution is not accredited or, if it offers a degree 
 program in a field that requires licensure in California, that
the degree program is not accredited  and any known limitation
of the degree, including, but not limited to,  whether
  all of the following: 
    (1)    Whether    the degree
is recognized for licensure or certification in California and other
states. 
   (2) Whether a graduate of the degree program will be eligible to
sit for the applicable licensure exam in California and other states.
 
   (3) That a degree from an unaccredited institution is not
recognized for some employment positions, including, but not
necessarily limited to, positions with the State of California. 

   (4) That a student attending an unaccredited institution is not
eligible for federal financial aid programs. 
  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  is not
accredited, or  offers an associate, baccalaureate, 
masters   master's , or doctoral degree program
that is not accredited  in a field that requires licensure in
California  , the statement shall disclose that nonaccreditation
and all known limitations of the degree  program. 
 program, including, but not limited to, all of the following:
 
    (A) Whether the degree is recognized for licensure or
certification in California and other states.  
   (2) Whether a graduate of the degree program will be eligible to
sit for the applicable licensure exam in California and other states.
 
   (C) That a degree from an unaccredited institution is not
recognized for some employment positions, including, but not
necessarily limited to, positions with the State of California. 

   (D) That a student attending an unaccredited institution is not
eligible for federal financial aid programs. 
   (b) If the institution has a general student brochure, the
institution shall provide that brochure to the prospective student
prior to enrollment. In addition, if the institution has a
program-specific student brochure for the program in which the
prospective student seeks to enroll, the institution shall provide
the program-specific student brochure to the prospective student
prior to enrollment.
   (c) An institution shall provide the school catalog to any person
upon request. In addition, if the institution has student brochures,
the institution shall disclose the requested brochures to any
interested person upon request.
   SEC. 3.    Section 94910 of the   Education
Code   is amended to read: 
   94910.  Prior to enrollment, an institution shall provide a
prospective student with a School Performance Fact Sheet containing,
at a minimum, the following information, as it relates to the
educational program:
   (a) Completion rates, as calculated pursuant to Article 16
(commencing with Section 94928).
   (b) Placement rates  for each educational program  , as
calculated pursuant to Article 16 (commencing with Section 94928), if
the educational program is designed to lead to, or the institution
makes any express or implied claim related to preparing students for,
a  particular   recognized  career,
occupation, vocation, job, or job title.
   (c) License examination passage rates for programs leading to
employment for which passage of a state licensing examination is
required, as calculated pursuant to Article 16 (commencing with
Section 94928).
   (d) (1) Salary or wage information, as calculated pursuant to
Article 16 (commencing with Section 94928)  , if the
institution or a representative of the institution makes any express
or implied claim about the salary that may be earned after completing
the educational program  .
   (2)  Additionally, each   Each  
 institution that offers an educational program designed
to lead to a particular career, occupation, vocation, trade, job, or
job title shall disclose the wage and salary data for the particular
career, occupation, trade, job, or job title, as provided by the
Employment Development Department's Occupational Employment
Statistics, if that data is available   shall disclose
data in a manner that the bureau, in collaboration with other
agencies, deems sufficient for the bureau to independently calculate
employment and salary or wage information for each graduate of each
educational program  .
   (e) If a program is too new to provide data for any of the
categories listed in this subdivision, the institution shall state on
its fact sheet: "This program is new. Therefore, the number of
students who graduate, the number of students who are placed, or the
starting salary you can earn after finishing the educational program
are unknown at this time. Information regarding general salary and
placement statistics may be available from government sources or from
the institution, but is not equivalent to actual performance data."
   (f) All of the following:
   (1) A description of the manner in which the figures described in
subdivisions (a) to (d), inclusive, are calculated or a statement
informing the reader of where he or she may obtain a description of
the manner in which the figures described in subdivisions (a) to (d),
inclusive, are calculated.
   (2) A statement informing the reader of where he or she may obtain
from the institution a list of the employment positions determined
to be within the field for which a student received education and
training for the calculation of job placement rates as required by
subdivision (b).
   (3) A statement informing the reader of where he or she may obtain
from the institution a list of the objective sources of information
used to substantiate the salary disclosure as required by subdivision
(d).
   (g) The following statements:
   (1) "This fact sheet is filed with the Bureau for Private
Postsecondary Education. Regardless of any information you may have
relating to completion rates, placement rates, starting salaries, or
license exam passage rates, this fact sheet contains the information
as calculated pursuant to state law."
   (2) "Any questions a student may have regarding this fact sheet
that have not been satisfactorily answered by the institution may be
directed to the Bureau for Private Postsecondary Education at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)." 
   (h) If the institution participates in federal financial aid
programs, the most recent three-year cohort default rate reported by
the United States Department of Education for the institution and the
percentage of enrolled students receiving federal student loans.

   SEC. 4.    Section 94911 of the   Education
Code   is amended to read: 
   94911.  An enrollment agreement shall include, at a minimum, all
of the following:
   (a) The name of the institution and the name of the educational
program, including the total number of credit hours, clock hours, or
other increment required to complete the educational program.
   (b) A schedule of total charges, including a list of any charges
that are nonrefundable and the student's obligations to the Student
Tuition Recovery Fund, clearly identified as nonrefundable charges.
   (c) In underlined capital letters on the same page of the
enrollment agreement in which the student's signature is required,
the total charges for the current period of attendance, the estimated
total charges for the entire educational program, and the total
charges the student is obligated to pay upon enrollment.
   (d) A clear and conspicuous statement that the enrollment
agreement is legally binding when signed by the student and accepted
by the institution.
   (e) (1) A disclosure with a clear and conspicuous caption,
"STUDENT'S RIGHT TO CANCEL," under which it is explained that the
student has the right to cancel the enrollment agreement and obtain a
refund of charges paid through attendance at the first class
session, or the seventh day after enrollment, whichever is later.
   (2) The disclosure shall contain the institution's refund policy
and a statement that, if the student has received federal student
financial aid funds, the student is entitled to a refund of moneys
not paid from federal student financial aid program funds.
   (3) The text shall also include a description of the procedures
that a student is required to follow to cancel the enrollment
agreement or withdraw from the institution and obtain a refund.
   (f) A statement specifying that, if the student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund.
   (g) A statement specifying that, if the student is eligible for a
loan guaranteed by the federal or state government and the student
defaults on the loan, both of the following may occur:
   (1) The federal or state government or a loan guarantee agency may
take action against the student, including applying any income tax
refund to which the person is entitled to reduce the balance owed on
the loan.
   (2) The student may not be eligible for any other federal student
financial aid at another institution or other government assistance
until the loan is repaid.
   (h) The transferability disclosure that is required to be included
in the school catalog, as specified in paragraph (15) of subdivision
(a) of Section 94909.
   (i) (1) The following statement: "Prior to signing this enrollment
agreement, you must be given a catalog or brochure and a School
Performance Fact Sheet, which you are encouraged to review prior to
signing this agreement. These documents contain important policies
and performance data for this institution. This institution is
required to have you sign and date the information included in the
School Performance Fact Sheet relating to completion rates, placement
rates, license examination passage rates,  and 
salaries or wages,  and the most recent three-year cohort default
rate, if applicable,  prior to signing this agreement."
   (2) Immediately following the statement required by paragraph (1),
a line for the student to initial, including the following
statement: "I certify that I have received the catalog, School
Performance Fact Sheet, and information regarding completion rates,
placement rates, license examination passage rates,  and
 salary or wage information  ,   and the most
recent three-year cohort default rate, if applicable,  included
in the School Performance Fact sheet, and have signed, initialed, and
dated the information provided in the School Performance Fact Sheet."

   (j) The following statements:


(1) "Any questions a student may have regarding this enrollment
agreement that have not been satisfactorily answered by the
institution may be directed to the Bureau for Private Postsecondary
Education at (address), Sacramento, CA (ZIP Code), (Internet Web site
address), (telephone and fax numbers)."


   (2) "A student or any member of the public may file a complaint
about this institution with the 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)."
   (k) The following statement above the space for the student's
signature:


"I understand that this is a legally binding contract. My signature
below certifies that I have read, understood, and agreed to my rights
and responsibilities, and that the institution's cancellation and
refund policies have been clearly explained to me."


  SEC. 3.   SEC. 5.   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.
   SEC. 6.    Section 94928 of the   Education
Code   is amended to read: 
   94928.  As used in this article, the following terms have the
following meanings:
   (a) "Cohort population" means the number of students that began a
program on a cohort start date.
   (b) "Cohort start date" means the first class day after the
cancellation period during which a cohort of students attends class
for a specific program.
   (c) "Graduates" means the number of students who complete a
program within 100 percent of the published program length. An
institution may separately state completion information for students
completing the program within 150 percent of the original contracted
time, but that information may not replace completion information for
students completing within the original scheduled time. Completion
information shall be separately stated for each campus or branch of
the institution.
   (d) "Graduates available for employment" means the number of
graduates minus the number of graduates unavailable for employment.
   (e) "Graduates employed in the field" means graduates who are
gainfully employed within six months of graduation in a
position for which the skills obtained through the education and
training provided by the institution are required or provided a
significant advantage to the graduate in obtaining the position.
  in a single position for at least 13 weeks, working at
least 17.5 hours per week in one of the occupations included in the
list provided by   the institution pursuant to subdivision
(e) of Section 94929.5. For occupations for which the state does not
require passing an examination, the period of employment shall begin
within six months after a student completes the applicable
educational program. For occupations for which the state requires
passing an examination, the period of employment shall begin within
six months of the announcement of the examination results for the
first examination available after a student completes an applicable
educational program. Those graduates working in a single qualifying
position between 17.5 and 32 hours per week, and those graduates
working in a single qualifying position for at least 32 hours per
week, shall be reported separately as graduates employed
                                 in the field. 
   (f) "Graduates unavailable for employment" means graduates who,
after graduation, die, become incarcerated, are called to active
military duty, are international students that leave the United
States or do not have a visa allowing employment in the United
States, or are continuing their education at an accredited or
bureau-approved postsecondary institution.
   (g) "Students available for graduation" means the cohort
population minus the number of students unavailable for graduation.
   (h) "Students unavailable for graduation" means students who have
died, been incarcerated, or called to active military duty.
   SEC. 7.    Section 94929.5 of the   
 Education Code   is amended to read: 
   94929.5.  An institution shall annually report to the bureau, as
part of the annual report, and shall publish in its School
Performance Fact Sheet, all of the following:
   (a) The job placement rate, calculated by dividing the number of
graduates employed in the field by the number of graduates available
for employment for each program that is either (1) designed, or
advertised, to lead to a particular career, or (2) advertised or
promoted with any claim regarding job placement.
   (b) The license examination passage rates for the immediately
preceding two years for programs leading to employment for which
passage of a state licensing examination is required, calculated by
dividing the number of graduates who pass the examination by the
number of graduates who take the licensing examination the first time
that the examination is available after completion of the
educational program. The institution shall use state agency licensing
data to calculate license examination passage rates. If those data
are unavailable, the institution shall calculate the license
examination passage rate in a manner consistent with regulations
adopted by the bureau.
   (c) Salary and wage information, consisting of the total number of
graduates employed in the field and the annual wages or salaries of
those graduates stated in increments of five thousand dollars
($5,000). 
   (d) If applicable, the most recent three-year cohort default rate
reported by the United States Department of Education for the
institution and the percentage of enrolled students receiving federal
student loans.  
   (e) A list of the occupations for which each of the institution's
educational programs is intended to train students using the United
States Department of Labor's Standard Occupational Classification
codes. 
   SEC. 8.    Section 94929.7 of the   
 Education Code   is amended to read: 
   94929.7.  (a) The information used to substantiate the rates 
and information  calculated pursuant to Sections 94929 and
94929.5 shall  be   do all of the following:

    (1)    Be    documented and
maintained by the institution for five years from the date of the
publication of  those rates   the rates and
information  .  An institution may retain this
information in an electronic format.  
   (2) Include records of employment for all students counted as
graduates employed in the field, including the names, addresses, and
telephone numbers of all students reported as employed in the field
and all hiring employers; the names, titles, or descriptions of the
jobs; the starting dates of employment; and information concerning
whether students are employed in a full-time or part-time position,
including the number of hours worked per week.  
   (3) Include the names, addresses, and telephone numbers of
graduating students who choose not to seek employment and instead
enroll in another educational program to earn another degree or
credential; the names and addresses of the institutions in which
those students enroll; and the type of degree or credential those
students intend to earn at those institutions.  
   (4) Be retained in an electronic format and made available to the
bureau upon request. 
   (b) An institution shall provide a list of employment positions
used to determine the number of graduates employed in the field for
purposes of calculating job placement rates pursuant to this article.