BILL NUMBER: SB 1069	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Torres

                        FEBRUARY 18, 2014

   An act to amend Section 94920 of the Education Code, relating to
private postsecondary institutions.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1069, as introduced, Torres. Private postsecondary education:
refunds.
   The California Private Postsecondary Education Act of 2009
requires, among other things, institutions that do not participate in
the federal student financial aid programs to comply with specified
requirements, including 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 make a nonsubstantive change to the above
provisions relating to refunds by institutions not participating in
federal student financial aid programs.
   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 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   provided  through
attendance at the first class session, or the seventh 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.