BILL NUMBER: SB 1069	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 26, 2014

INTRODUCED BY   Senator Torres

                        FEBRUARY 18, 2014

    An act to amend Section 94920 of the Education Code,
relating to private postsecondary institutions.   An act
to amend Section 94923 of the Education Code, relating to private
postsecondary education. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1069, as amended, Torres.  Private postsecondary
education: refunds.  Student Tuition Recovery Fund:
claims.  
   Existing law, the California Private Postsecondary Education Act
of 2009, which is repealed on January 1, 2015, provides, among other
things, for student protections and regulatory oversight of private
postsecondary institutions in the state. The act is enforced by the
Bureau for Private Postsecondary Education in the Department of
Consumer Affairs. The act requires the bureau to adopt regulations
governing the administration and maintenance of the Student Tuition
Recovery Fund, including requirements relating to assessments on
students and student claims against the Student Tuition Recovery
Fund, a continuously appropriated fund.  
   This bill would provide that a student who utilizes a Cal Grant or
a Pell Grant to pay tuition at a qualifying institution is not
thereby made ineligible to apply for payment from the Student Tuition
Recovery Fund.  
   This bill would become operative only if an act that becomes
operative on or before January 1, 2015, delays or eliminates the
January 1, 2015, repeal date of the California Private Postsecondary
Education Act of 2009.  
   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
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 94923 of the  
Education Code   is amended to read: 
   94923.   (a)    The bureau shall, by January 1,
2011, adopt by regulation procedures governing the administration and
maintenance of the Student Tuition Recovery Fund, including
requirements relating to assessments on students and student claims
against the Student Tuition Recovery Fund. 
   (b) A student who utilizes a Cal Grant, Pell Grant, or both, to
pay tuition at a qualifying institution is not thereby made
ineligible to apply for payment from the Student Tuition Recovery
Fund.  
  SEC. 2.    This act shall become operative only if an act
that becomes operative on or before January 1, 2015, amends or
repeals Section 94950 of the Education Code to delay or eliminate the
January 1, 2015, repeal date of the California Private Postsecondary
Education Act of 2009 (Chapter 8 (commencing with Section 94800) of
Part 59 of Division 10 of Title 3 of the Education Code). 

  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 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.