Amended in Assembly June 5, 2014

Senate BillNo. 1247


Introduced by Senator Lieu

(Principal coauthor: Assembly Member Bonilla)

February 20, 2014


An act to amendbegin delete Section 94950 of the Education Code,end deletebegin insert Section 27 of the Business and Professions Code, to amend Sections 94800.5, 94801, 94802, 94804, 94808, 94809, 94809.5, 94813, 94816, 94829, 94838, 94847, 94861, 94874, 94874.1, 94874.7, 94874.8, 94875, 94876, 94877, 94878, 94879, 94881, 94882, 94883, 94884, 94885, 94887, 94888, 94890, 94891, 94892, 94893, 94895, 94896, 94897, 94898, 94900.7, 94904, 94909, 94910, 94911, 94913, 94920, 94921, 94923, 94924, 94926, 94927, 94927.5, 94928, 94929, 94929.5, 94929.7, 94929.8, 94930, 94930.5, 94931.5, 94932, 94932.5, 94933, 94933.5, 94934, 94935, 94936, 94937, 94938, 94939, 94941, 94942, 94943, 94943.5, 94944, 94944.5, 94944.6, 94945, 94948, and 94950 of, to amend the heading of Article 5 (commencing with Section 94875) of Chapter 8 of Part 59 of Division 10 of Title 3 of, to add Sections 94818.5, 94874.2, 94875.5, and 94929.9 to, to repeal Sections 94803, 94805, 94820, and 94833 of, and to repeal and add Sections 94880 and 94949 of, the Education Code,end insert relating to private postsecondary education, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 1247, as amended, Lieu. Private postsecondary education: California Private Postsecondary Education Act of 2009.

Existing law, the California Private Postsecondary Education Act of 2009, provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs.begin delete Existing law repeals that act on January 1, 2015.end deletebegin insert The act exempts an institution from its provisions, if any of a list of specific criteria are met.end insert

begin insert

This bill would recast and revise various provisions of the act. The bill would establish the Board for Private Postsecondary Education as a successor agency to the bureau on July 1, 2015. The bill would remove the exemption from its provisions for an institution that is approved to participate in veterans financial aid programs pursuant to a specified federal law, and that is not an independent institution of higher education, thereby making the act applicable to the institution.

end insert
begin insert

The bill would require the board, beginning July 1, 2015, to, among other things, contract with the Office of the Attorney General to establish a process for board staff to be trained to investigate complaints filed with the board, post specified information on its Internet Web site, establish a task force to identify standards for specified educational and training programs and provide a report to the Legislature regarding those programs, and adopt minimum operating standards for an institution that ensure, among other things, that an institution offering a degree is accredited and that an unaccredited institution offering a degree satisfies certain requirements. The bill would require the board to submit a report to the Legislature, on or before October 1, 2015, on its efforts to streamline the process by which an institution is approved or denied by the board for an approval to operate, to submit a report to the Legislature relating to an independent review of its staffing resources, and to contract with the Office of the Attorney General for investigative and prosecutorial services if certain conditions are satisfied.

end insert
begin insert

The bill would make other technical and conforming changes.

end insert
begin insert

The act establishes the Student Tuition Recovery Fund and requires the bureau to adopt regulations governing the administration and maintenance of the fund, including requirements relating to assessments on students and student claims against the fund, and establishes that the moneys in this fund are continuously appropriated to the bureau for specified purposes.

end insert
begin insert

This bill would require those regulations to ensure that students are eligible for payment from the fund in specified circumstances.

end insert
begin insert

Existing law repeals that act on January 1, 2015.

end insert

This bill would instead repeal that act on January 1,begin delete 2019end deletebegin insert 2017end insert, thus extending the operation of the act bybegin delete 4end deletebegin insert 2end insert years.

begin delete

The act establishes the Student Tuition Recovery Fund under the administration of the bureau, and establishes that the moneys in this fund are continuously appropriated to the bureau for specified purposes.

end delete

By extending the operation ofbegin delete thisend deletebegin insert the Student Tuition Recovery Fund, aend insert continuously appropriated fund, this bill would make an appropriation.

Under existing law, the act specifies conduct by regulated institutions that, if undertaken, is a crime.

Because this bill would extend the application of those criminal provisions, it would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 27 of the end insertbegin insertBusiness and Professions Codeend insert
2begin insert is amended to read:end insert

3

27.  

(a) Each entity specified in subdivisions (c), (d), and (e)
4shall provide on the Internet information regarding the status of
5every license issued by that entity in accordance with the California
6Public Records Act (Chapter 3.5 (commencing with Section 6250)
7of Division 7 of Title 1 of the Government Code) and the
8Information Practices Act of 1977 (Chapter 1 (commencing with
9Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
10The public information to be provided on the Internet shall include
11information on suspensions and revocations of licenses issued by
12the entity and other related enforcement action, including
13accusations filed pursuant to the Administrative Procedure Act
14(Chapter 3.5 (commencing with Section 11340) of Part 1 of
15Division 3 of Title 2 of the Government Code) taken by the entity
16relative to persons, businesses, or facilities subject to licensure or
17regulation by the entity. The information may not include personal
18information, including home telephone number, date of birth, or
19social security number. Each entity shall disclose a licensee’s
20address of record. However, each entity shall allow a licensee to
21provide a post office box number or other alternate address, instead
P4    1of his or her home address, as the address of record. This section
2shall not preclude an entity from also requiring a licensee, who
3has provided a post office box number or other alternative mailing
4address as his or her address of record, to provide a physical
5business address or residence address only for the entity’s internal
6administrative use and not for disclosure as the licensee’s address
7of record or disclosure on the Internet.

8(b) In providing information on the Internet, each entity specified
9in subdivisions (c) and (d) shall comply with the Department of
10Consumer Affairs Guidelines for Access to Public Records.

11(c) Each of the following entities within the Department of
12Consumer Affairs shall comply with the requirements of this
13section:

14(1) The Board for Professional Engineers, Land Surveyors, and
15Geologists shall disclose information on its registrants and
16licensees.

17(2) The Bureau of Automotive Repair shall disclose information
18on its licensees, including auto repair dealers, smog stations, lamp
19and brake stations, smog check technicians, and smog inspection
20certification stations.

21(3) The Bureau of Electronic and Appliance Repair, Home
22Furnishings, and Thermal Insulation shall disclose information on
23its licensees and registrants, including major appliance repair
24dealers, combination dealers (electronic and appliance), electronic
25repair dealers, service contract sellers, and service contract
26administrators.

27(4) The Cemetery and Funeral Bureau shall disclose information
28on its licensees, including cemetery brokers, cemetery salespersons,
29cemetery managers, crematory managers, cemetery authorities,
30crematories, cremated remains disposers, embalmers, funeral
31establishments, and funeral directors.

32(5) The Professional Fiduciaries Bureau shall disclose
33information on its licensees.

34(6) The Contractors’ State License Board shall disclose
35information on its licensees and registrants in accordance with
36Chapter 9 (commencing with Section 7000) of Division 3. In
37addition to information related to licenses as specified in
38subdivision (a), the board shall also disclose information provided
39to the board by the Labor Commissioner pursuant to Section 98.9
40of the Labor Code.

P5    1(7) Thebegin delete Bureauend deletebegin insert Boardend insert for Private Postsecondary Education shall
2disclose information on private postsecondary institutions under
3its jurisdiction, including disclosure of notices to comply issued
4pursuant to Section 94935 of the Education Code.

5(8) The California Board of Accountancy shall disclose
6information on its licensees and registrants.

7(9) The California Architects Board shall disclose information
8on its licensees, including architects and landscape architects.

9(10) The State Athletic Commission shall disclose information
10on its licensees and registrants.

11(11) The State Board of Barbering and Cosmetology shall
12disclose information on its licensees.

13(12) The State Board of Guide Dogs for the Blind shall disclose
14information on its licensees and registrants.

15(13) The Acupuncture Board shall disclose information on its
16licensees.

17(14) The Board of Behavioral Sciences shall disclose
18information on its licensees, including marriage and family
19therapists, licensed clinical social workers, licensed educational
20psychologists, and licensed professional clinical counselors.

21(15) The Dental Board of California shall disclose information
22on its licensees.

23(16) The State Board of Optometry shall disclose information
24regarding certificates of registration to practice optometry,
25statements of licensure, optometric corporation registrations, branch
26office licenses, and fictitious name permits of its licensees.

27(17) The Board of Psychology shall disclose information on its
28licensees, including psychologists, psychological assistants, and
29registered psychologists.

30(d) The State Board of Chiropractic Examiners shall disclose
31information on its licensees.

32(e) The Structural Pest Control Board shall disclose information
33on its licensees, including applicators, field representatives, and
34operators in the areas of fumigation, general pest and wood
35destroying pests and organisms, and wood roof cleaning and
36treatment.

37(f) “Internet” for the purposes of this section has the meaning
38set forth in paragraph (6) of subdivision (f) of Section 17538.

39begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 94800.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
40read:end insert

P6    1

94800.5.  

Whenever a reference is made to the former Private
2Postsecondary Education and Student Protection Act, the former
3Private Postsecondary and Vocational Education Reform Act of
41989, or the former Chapter 7 (commencing with Section 94700)
5of Part 59 of Division 10 of Title 3 of the Education Code, as it
6read on June 30, 2007, by the provisions of any statute or
7regulation, it shall be construed as referring to the provisions of
8this chapter. Whenever a reference is made to the former Bureau
9for Private Postsecondary and Vocational Educationbegin insert, or the Bureau
10for Private Postsecondary Education,end insert
by the provisions of any
11statute or regulation, it shall be construed as referring to thebegin delete Bureauend delete
12begin insert Boardend insert for Private Postsecondary Education.

13begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 94801 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
14read:end insert

15

94801.  

The Legislature finds and declares all of the following:

16(a) Inbegin delete 2007,end deletebegin insert 2013,end insert more thanbegin delete 400,000end deletebegin insert 300,000end insert Californians
17attended more thanbegin delete 1,500end deletebegin insert 1,100end insert private postsecondary schools in
18California.

19(b) Private postsecondary schools can complement the public
20education system and help develop a trained workforce to meet
21the demands of California businesses and the economybegin insert; however,
22concerns about the value of degrees and diplomas issued by private
23postsecondary schools, and the lack of protections for private
24postsecondary school students and consumers of those schools’
25services, have highlighted the need for strong state-level oversight
26of private postsecondary schoolsend insert
.

27(c) Numerous reports and studies have concluded that
28California’s previous attempts at regulatory oversight of private
29postsecondary schoolsbegin insert have consistentlyend insert failed to ensure student
30protections or provide effective oversight of private postsecondary
31schools. begin delete Previous laws and regulatory oversight were allowed to
32expire on June 30, 2007, with some skeletal functions, continued
33by urgency legislation, that were allowed to expire on June 30,
342008.end delete

35(d) It is the intent of the Legislature inbegin delete enacting this chapterend delete
36begin insert establishing the Board for Private Postsecondary Education for
37two yearsend insert
to ensure all of the following:

38(1) Minimum educational quality standards and opportunities
39for success for California students attending private postsecondary
40schools in California.

P7    1(2) Meaningful student protections through essential avenues
2of recourse for students.

3(3) A regulatory structure that provides for an appropriate level
4of oversight.

5(4) A regulatory governance structure that ensures that all
6stakeholders have a voice and are heard in policymaking by the
7begin delete new bureau created by this chapterend deletebegin insert boardend insert.

8(5) A regulatory governance structure that provides for
9accountability and oversight by the Legislature through program
10monitoring and periodic reports.

11(6) Prevention of the deception of the public that results from
12conferring, and use of, fraudulent or substandard degrees.

13(e) The Legislature advises future policymakers to continually
14and carefully evaluate this chapter and its administration and
15enforcement. Where there are deficiencies in the law or regulatory
16oversight, the Governor and the Legislature should act quickly to
17correct them.

18begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 94802 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
19read:end insert

20

94802.  

begin delete(a)end deletebegin deleteend deleteAn institution that had a valid approval to operate
21on June 30, 2007, issued by the former Bureau for Private
22Postsecondary and Vocational Education pursuant to former
23Chapter 7 (commencing with Section 94700) of Part 59 of Division
2410 of Title 3 of the Education Code, as it read on June 30, 2007,
25shall maintain that approval under this chapter. For the purposes
26of this chapter, the approval to operate shall be valid for three
27calendar years after the expiration date of the approval, as it read
28on June 30, 2007.

begin delete

29(b) Applications to renew an approval to operate that had been
30pending action before the former Bureau for Private Postsecondary
31and Vocational Education on June 30, 2007, shall be deemed
32 processed as follows:

33(1) Applications received prior to January 1, 2006, shall be
34granted an approval to operate until 2012 to coincide with the
35anniversary date of the current approval to operate date.

36(2) Applications received after January 1, 2006, shall be granted
37an approval to operate until 2013 to coincide with the anniversary
38date of the current approval to operate.

39(c) Students seeking to enroll in institutions approved under
40subdivision (b) shall be notified in writing by the institution, prior
P8    1to executing an enrollment agreement, that, although the institution
2was approved to operate by the former Bureau for Private
3Postsecondary and Vocational Education, the institution’s
4application for reapproval to operate has not been reviewed by the
5bureau pursuant to this chapter.

end delete
6begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 94803 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
7

94803.  

The bureau shall, by emergency regulation, amend, and
8repeal as necessary, the regulations, as they read on June 30, 2007,
9in Division 7.5 (commencing with Section 70000) of Title 5 of the
10California Code of Regulations, to conform to this chapter no later
11than February 1, 2010. These emergency regulations shall become
12permanent through the regular rulemaking process within one year
13of the enactment of this chapter.

end delete
14begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 94804 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
15read:end insert

16

94804.  

(a) Each unresolved matter submitted to the former
17Bureau for Private Postsecondary and Vocational Education prior
18to July 1, 2007, shall be deemed to remain pending before the
19begin delete bureauend deletebegin insert boardend insert irrespective of any applicable deadlines. With respect
20to any deadline applicable to a pending matter, no time shall be
21deemed to have elapsed from July 1, 2007, to January 1, 2010,
22inclusive.

23(1) For the purposes of this subdivision, “matter” includes, but
24is not limited to, an appeal, a complaint, a claim, an evaluation, a
25hearing, or an investigation.

26(2) For the purposes of this subdivision, “matter” does not
27include a Student Tuition Recovery Fund claim.

28(b) Student complaints submitted from July 1, 2007, to
29December 31, 2009, inclusive, shall continue to be duly recorded
30and investigated by thebegin delete bureauend deletebegin insert boardend insert.

31begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 94805 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
32

94805.  

For the performance of the duties and exercise of the
33powers vested in the bureau, the bureau shall have possession and
34control of all records, papers, offices, equipment, supplies, or other
35property, real or personal, held for the benefit or use by the former
36Bureau for Private Postsecondary and Vocational Education.

end delete
37begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 94808 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

39

94808.  

(a) Any Student Tuition Recovery Fund claims received
40by the former Bureau for Private Postsecondary and Vocational
P9    1Education prior to July 1, 2007, that were not processed by the
2former Bureau for Private Postsecondary and Vocational Education
3and were not paid by the Department of Consumer Affairs from
4July 1, 2007, to June 30, 2008, inclusive, shall be processed by
5thebegin delete bureauend deletebegin insert boardend insert.

6(b) Any Student Tuition Recovery Fund claims received by the
7Department of Consumer Affairs from July 1, 2007, to December
831, 2009, inclusive, shall be processed by thebegin delete bureauend deletebegin insert boardend insert.

9(c) Student Tuition Recovery Fund claims filed with, and
10approved by, the former Bureau for Private Postsecondary and
11Vocational Education as of June 30, 2007, if not already paid, shall
12be paid before any claims approved after that date.

13(d) The student’s right to recovery from the Student Tuition
14Recovery Fund shall be based on the law that was in effect when
15the student enrolled and a fee for the fund was charged as a part
16of tuition costs, even though that law has become inoperative, been
17repealed, or otherwise expired.

18begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 94809 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
19read:end insert

20

94809.  

(a) (1) An institution that had an application for an
21approval to operate pending with the former Bureau for Private
22Postsecondary and Vocational Education on June 30, 2007, may
23continue to operatebegin insert until a decision is made in regard to the
24institution regarding the application for approval to operateend insert
, but
25shall comply with, and is subject to, this chapter, and shall submit
26an application for an approval to operate to thebegin delete bureauend deletebegin insert boardend insert
27 pursuant to this chapter within six months of that application
28becoming available.

29(2) If thebegin delete bureauend deletebegin insert boardend insert determines that the application for an
30approval to operate that was pending with the former Bureau for
31Private Postsecondary and Vocational Education on June 30, 2007,
32satisfies the requirements of the new application for an approval
33to operate, the submission of the previous application may be
34deemed to satisfy the requirements of this subdivision.

35(b) An institution that did not have a valid approval to operate
36issued by, and did not have an application for approval to operate
37pending with, the former Bureau for Private Postsecondary and
38Vocational Education on June 30, 2007, that began operations on
39or after July 1, 2007, may continue to operatebegin insert unless a denial of
40approval to operate has been issued and has become finalend insert
, but
P10   1shall comply with, and is subject to, thisbegin delete chapter, and shall submit
2an application for an approval to operate to the bureau pursuant
3to this chapter within six months of that application becoming
4availableend delete
begin insert chapterend insert.

5(c) Students seeking to enroll in institutionsbegin delete approvedend deletebegin insert operatingend insert
6 under subdivisions (a) and (b) shall be notified by the institution,
7in writing and prior to executing an enrollment agreement, that
8the institution’s application for approval to operate has not been
9reviewed by thebegin delete bureauend deletebegin insert boardend insert.

10(d) An institution that is permitted to operate pursuant to
11subdivision (a) or (b) shall not use the terms “approval,”
12“approved,” “approval to operate,” or “approved to operate”
13without clearly stating that the institution’s application for approval
14has not been reviewed by thebegin delete bureauend deletebegin insert boardend insert.

begin insert

15(e) (1) An institution that is denied an approval to operate
16pursuant to subdivision (a) or (b) may file an appeal pursuant to
17the procedures established in Section 94888.

end insert
begin insert

18(2) An institution that has filed an appeal may continue to
19operate during the appeal process but must disclose in a written
20statement approved by the board, to the public and all current and
21prospective students, that the institution’s application for approval
22to operate was denied by the board because the board has
23determined the application did not satisfy minimum requirements
24for educational capacity, that the institution is appealing the
25board’s decision, and that the loss of the appeal may result in the
26institution’s closure.

end insert
begin insert

27(3) If the board determines that the continued operation of an
28institution poses a significant risk of harm to students, the board
29shall make an emergency decision pursuant to Section 94938.

end insert
30begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 94809.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

94809.5.  

Notwithstanding any other provision of law:

33(a) For any claims that a student had based on a violation of the
34Private Postsecondary and Vocational Education Reform Act of
351989 on or before June 30, 2007, the period of time from June 30,
362007, to December 31, 2009, inclusive, shall be excluded in
37determining the deadline or the statute of limitation for filing any
38claim with thebegin delete bureauend deletebegin insert boardend insert or a lawsuit based on any claim.

39(b) All claims described in subdivision (a), except claims to the
40Student Tuition Recovery Fund, including those contained in a
P11   1lawsuit or other legal action, shall be determined or adjudicated
2based on the law that was in effect when the violations or events
3took place, even though those provisions have become inoperative,
4been repealed, or otherwise expired.

5begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 94813 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
6read:end insert

7

94813.  

“Accredited” means an institution isbegin delete recognized or
8approvedend delete
begin insert accreditedend insert by an accrediting agency recognized by the
9United States Department of Education.

10begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 94816 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
11read:end insert

12

94816.  

“Applicant” means an institution that has submitted an
13application to thebegin delete bureauend deletebegin insert boardend insert for an approval to operate or for
14a renewal of an approval to operate.begin insert An applicant shall be the
15owner of an institution. Approvals to operate shall be issued to
16applicants.end insert

17begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 94818.5 is added to the end insertbegin insertBusiness and
18Professions Code
end insert
begin insert, to read:end insert

begin insert
19

begin insert94818.5.end insert  

“Board” means the Board for Private Postsecondary
20Education.

end insert
21begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 94820 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
22

94820.  

“Bureau” means the Bureau for Private Postsecondary
23Education in the Department of Consumer Affairs.

end delete
24begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 94829 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
25read:end insert

26

94829.  

“Default” means failure of a borrower and endorser, if
27any, to make an installment payment for a loan received under the
28federal student financial aid programs when due, or to meet other
29terms of the promissory note, provided that this failure persists for
30270 days if payment is due monthly or 360 days if payment is due
31less frequently.begin insert For purposes of this section, “endorser” means
32an individual who signs a promissory note and agrees to repay
33the loan in the event that the borrower does not.end insert

34begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 94833 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
35

94833.  

“Director” means the Director of Consumer Affairs.

end delete
36begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 94838 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
37read:end insert

38

94838.  

“Educational program approval” means authorization
39by thebegin delete bureauend deletebegin insert boardend insert, another government agency of this state, or
P12   1a federal government agency, to provide educational programs,
2and is an element of an approval to operate.

3begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 94847 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
4read:end insert

5

94847.  

“License and examination preparation” means
6instruction designed to assist students to prepare for an examination
7for licensure, or offered for the sole purpose of providing
8continuing education in subjects licensees are required to take as
9a condition of continued licensure.begin insert end insertbegin insert“License and examination
10preparationend insert
begin insert” does not include an educational program designed
11to instruct students in the field of the licensure examination.end insert

12begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 94861 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
13read:end insert

14

94861.  

“Reporting period” means the institution’s fiscal year
15or any yearly period designated by thebegin delete bureauend deletebegin insert boardend insert to be covered
16in the institution’s annual report.

17begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 94874 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

94874.  

begin deleteThe end deletebegin insertExcept as provided in Section 94874.2, theend insertbegin insert end insert
20following are exempt from this chapter:

21(a) An institution that offers solely avocational or recreational
22educational programs.

23(b) An institution offering educational programs sponsored by
24a bona fide trade, business, professional, or fraternal organization,
25solely for that organization’s membership.

26(c) A postsecondary educational institution established, operated,
27and governed by the federal government or by this state or its
28political subdivisions.

29(d) An institution offering either of the following:

30(1) Test preparation for examinations required for admission to
31a postsecondary educational institution.

32(2) Continuing education or license examination preparation,
33if the institution or the program is approved, certified, or sponsored
34by any of the following:

35(A) A government agency, other than thebegin delete bureauend deletebegin insert boardend insert, that
36licenses persons in a particular profession, occupation, trade, or
37career field.

38(B) A state-recognized professional licensing body, such as the
39State Bar of California, that licenses persons in a particular
40profession, occupation, trade, or career field.

P13   1(C) A bona fide trade, business, or professional organization.

2(e) (1) An institution owned, controlled, and operated and
3maintained by a religious organization lawfully operating as a
4nonprofit religious corporation pursuant to Part 4 (commencing
5with Section 9110) of Division 2 of Title 1 of the Corporations
6Code, that meets all of the following requirements:

7(A) The instruction is limited to the principles of that religious
8organization, or to courses offered pursuant to Section 2789 of
9Business and Professions Code.

10(B) The diploma or degree is limited to evidence of completion
11of that education.

12(2) An institution operating under this subdivision shall offer
13degrees and diplomas only in the beliefs and practices of the
14church, religious denomination, or religious organization.

15(3) An institution operating under this subdivision shall not
16award degrees in any area of physical science.

17(4) Any degree or diploma granted under this subdivision shall
18contain on its face, in the written description of the title of the
19degree being conferred, a reference to the theological or religious
20aspect of the degree’s subject area.

21(5) A degree awarded under this subdivision shall reflect the
22nature of the degree title, such as “associate of religious studies,”
23“bachelor of religious studies,” “master of divinity,” or “doctor of
24divinity.”

25(f) An institution that does not award degrees and that solely
26provides educational programs for total charges of two thousand
27five hundred dollars ($2,500) or less when no part of the total
28charges is paid from state or federal student financial aid programs.
29Thebegin delete bureauend deletebegin insert boardend insert may adjust this cost threshold based upon the
30California Consumer Price Index and post notification of the
31adjusted cost threshold on its Internet Web site, as thebegin delete bureauend deletebegin insert boardend insert
32 determines, through the promulgation of regulations, that the
33adjustment is consistent with the intent of this chapter.

34(g) A law school that is accredited by the Council of the Section
35of Legal Education and Admissions to the Bar of the American
36Bar Association or a law school or law study program that is
37subject to the approval, regulation, and oversight of the Committee
38of Bar Examiners, pursuant to Sections 6046.7 and 6060.7 of the
39Business and Professions Code.

P14   1(h) A nonprofit public benefit corporation that satisfies all of
2the following criteria:

3(1) Is qualified under Section 501(c)(3) of the United States
4Internal Revenue Code.

5(2) Is organized specifically to provide workforce development
6or rehabilitation services.

7(3) Is accredited by an accrediting organization for workforce
8development or rehabilitation services recognized by the
9Department of Rehabilitation.

10(i) An institution that is accredited by the Accrediting
11Commission for Senior Colleges and Universities, Western
12Association of Schools and Colleges, or the Accrediting
13Commission for Community and Junior Colleges, Western
14Association of Schools and Colleges.

15(j) An institution that satisfies all of the following criteria:

16(1) The institution has been accredited, for at least 10 years, by
17an accrediting agency that is recognized by the United States
18Department of Education.

19(2) The institution has operated continuously in this state for at
20 least 25 years.

21(3) During its existence, the institution has not filed for
22bankruptcy protection pursuant to Title 11 of the United States
23Code.

24(4) The institution’s cohort default rate on guaranteed student
25loans does not exceed 10 percent for the most recent three years,
26as published by the United States Department of Education.

27(5) The institution maintains a composite score of 1.5 or greater
28on its equity, primary reserve, and net income ratios, as provided
29under Section 668.172 of Title 34 of the Code of Federal
30Regulations.

31(6) The institution provides a pro rata refund of unearned
32institutional charges to students who complete 75 percent or less
33of the period of attendance.

34(7) The institution provides to all students the right to cancel
35the enrollment agreement and obtain a refund of charges paid
36through attendance at the second class session, or the 14th day
37after enrollment, whichever is later.

38(8) The institution submits to thebegin delete bureauend deletebegin insert boardend insert copies of its
39most recent IRS Form 990, the institution’s Integrated
P15   1Postsecondary Education Data System Report of the United States
2Department of Education, and its accumulated default rate.

3(9) The institution is incorporated and lawfully operates as a
4nonprofit public benefit corporation pursuant to Part 2
5(commencing with Section 5110) of Division 2 of Title 1 of the
6Corporations Code and is not managed or administered by an entity
7for profit.

8(k) Flight instruction providers or programs that provide flight
9instruction pursuant to Federal Aviation Administration regulations
10and meet both of the following criteria:

11(1) The flight instruction provider or program does not require
12students to enter into written or oral contracts of indebtedness.

13(2) The flight instruction provider or program does not require
14begin insert or acceptend insert prepayment of instruction-related costs in excess of two
15thousand five hundred dollars ($2,500).

16begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 94874.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
17to read:end insert

18

94874.1.  

(a) begin deleteAn end deletebegin insertExcept as provided in Section 94874.2, anend insertbegin insert end insert
19institution that is accredited by a regional accrediting agency that
20is recognized by the United States Department of Education, and
21is not an agency described in subdivision (i) of Section 94874, is
22exempt from this chapter, except Article 14 (commencing with
23Section 94923).

24(b) This section shall remain in effect only until January 1, 2016,
25and as of that date is repealed, unless a later enacted statute, that
26is enacted before January 1, 2016, deletes or extends that date.

27begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 94874.2 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
28read:end insert

begin insert
29

begin insert94874.2.end insert  

An institution that is approved to participate in
30veterans’ financial aid programs pursuant to Section 21.4253 of
31Title 38 of the Code of Federal Regulations that is not an
32independent institution of higher education, as defined in
33subdivision (b) of Section 66010, may not claim an exemption from
34this chapter.

end insert
35begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 94874.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
36to read:end insert

37

94874.7.  

Thebegin delete bureauend deletebegin insert boardend insert shall establish, by regulation, a
38process pursuant to which an institution that is exempt from this
39chapter may request, and obtain, from thebegin delete bureauend deletebegin insert boardend insert verification
40that the institution is exempt. Thebegin delete bureauend deletebegin insert boardend insert shall establish a
P16   1reasonable fee to reimburse thebegin delete bureau’send deletebegin insert board’send insert costs associated
2with the implementation of this section.

3begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 94874.8 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

94874.8.  

(a) An institution exempt from all or part of this
6chapter pursuant to subdivision (i) or (j) of Section 94874 or
7Section 94874.1 may apply to thebegin delete bureauend deletebegin insert boardend insert for an approval
8to operate pursuant to this section, but only subject to all of the
9following provisions:

10(1) Thebegin delete bureauend deletebegin insert boardend insert may approve the operation of an institution
11that is exempt from all or part of this chapter as specified above
12in accordance with the authority granted pursuant to Article 6
13(commencing with Section 94885). Upon issuing an approval to
14operate to an institution pursuant to this section, thebegin delete bureauend deletebegin insert boardend insert
15 is authorized to regulate that institution through the full set of
16powers granted, and duties imposed, by this chapter, as those
17powers and duties would apply to an institution that is not exempt
18from this chapter.

19(2) Notwithstanding any other law, upon issuance of an approval
20to operate pursuant to this section, the institution is no longer
21eligible for exemption, from the provisions of this chapter pursuant
22to subdivision (i) or (j) of Section 94874 or Section 94874.1, unless
23authorized by subsequent legislation.

24(3) Upon issuance of an approval to operate pursuant to this
25section, an institution is subject to all provisions of this chapter,
26and any regulations adopted pursuant to this chapter, that apply to
27an institution subject to this chapter, except as expressly provided
28in paragraph (4).

29(4) (A) With respect to the placement and salary or wage data
30required to be collected, calculated, and reported by Article 16
31(commencing with Section 94928), an institution issued an
32approval to operate pursuant to this section is not required to report
33on its first School Performance Fact Sheet any data from the period
34prior to the date of the issuance of the approval to operate that the
35institution was not required to collect and does not have available
36to it. An institution shall, however, report available data collected
37and calculated in accordance with this chapter and applicable
38regulations, regardless of the purpose for which the data was
39collected. If the required data is unavailable, the institution shall
40also disclose the unavailability of the data on all documents
P17   1required by this chapter and regulations adopted pursuant to this
2chapter. Upon receiving an approval to operate pursuant to this
3section, an institution shall commence to collect and calculate all
4information necessary to comply with Article 16 (commencing
5with Section 94928).

6(B) An institution receiving an approval to operate pursuant to
7this section shall provide to prospective students the School
8Performance Fact Sheet, file that fact sheet with thebegin delete bureauend deletebegin insert boardend insert,
9and post it on the institution’s Internet Web site no later than the
10first August 1 after the institution is approved to operate and no
11later than August 1 of each year thereafter. These School
12Performance Fact Sheets shall report data for the previous two
13calendar years based upon the number of students who began the
14program or the number of graduates for each reported calendar
15year. If two calendar years have not passed since the issuance of
16the approval to operate by the August 1 deadline for the School
17Performance Fact Sheet, unless data for two years is available, the
18institution shall report the required data for the period subsequent
19to the date of the issuance of the notice of approval.

20(b) An institution exempt from all or part of this chapter pursuant
21to subdivision (i) or (j) of Section 94874 or Section 94874.1 that
22was approved to operate by thebegin delete bureauend deletebegin insert boardend insert before the effective
23date of this section shall be deemed to have been approved pursuant
24to this section.

25begin insert

begin insertSEC. 25.end insert  

end insert

begin insertThe heading of Article 5 (commencing with Section
2694875) of Chapter 8 of Part 59 of Division 10 of Title 3 of the end insert
begin insert27Education Codeend insertbegin insert is amended to read:end insert

28 

29Article 5.  begin deleteBureau end deletebegin insertBoard end insertPowers and Duties
30

 

31begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 94875 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
32read:end insert

33

94875.  

begin delete

The Bureau for Private Postsecondary Education, as
34established by Section 6 of Chapter 635 of the Statutes of 2007,
35is continued in existence and shall commence operations. This
36chapter establishes the functions and responsibilities of the bureau,
37for the purposes of Section 6 of Chapter 635 of the Statutes of
382007.

end delete

39begin insert(a)end insertbegin insertend insertThebegin delete bureauend deletebegin insert boardend insert shall regulate private postsecondary
40educational institutions through the powers granted, and duties
P18   1imposed, by this chapter. In exercising its powers, and performing
2its duties, the protection of the public shall be thebegin delete bureau’send deletebegin insert board’send insert
3 highest priority. If protection of the public is inconsistent with
4other interests sought to be promoted, the protection of the public
5shall be paramount.begin insert The board shall consist of 11 members
6appointed as follows:end insert

begin insert

7(1) Three members, who shall have a demonstrated record of
8advocacy on behalf of consumers, one appointed by the Governor,
9one by the Senate Committee on Rules, and one by the Speaker of
10the Assembly.

end insert
begin insert

11(2) Two members, who shall be current or former students of
12institutions, appointed by the Governor.

end insert
begin insert

13(3) Three members, who shall be representatives of institutions,
14appointed by the Governor.

end insert
begin insert

15(4) Two public members with experience or expertise in
16postsecondary education, appointed by the Governor.

end insert
begin insert

17(5) One public member with knowledge or expertise in emerging
18fields of employment, appointed by the Governor.

end insert
begin insert

19(b) A person who was a member of the former Advisory
20Committee to the Bureau for Private Postsecondary Education,
21established pursuant to Section 94880, as that section read on
22January 1, 2014, is eligible to be appointed to the board pursuant
23to subdivision (a).

end insert
24begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 94875.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
25read:end insert

begin insert
26

begin insert94875.5.end insert  

Notwithstanding any other provision of this chapter,
27the Bureau for Private Postsecondary Education shall continue
28in existence and administer the provisions of this chapter until
29July 1, 2015. As of that date, the bureau shall cease operations,
30and the board shall assume all authority, including the powers,
31functions, and jurisdiction until then vested in the bureau. The
32board may enforce all disciplinary actions undertaken by the
33bureau. For the performance of these duties and exercise of these
34powers, the board shall have possession and control of all records,
35papers, offices, equipment, supplies, or other property, real or
36personal, held for the benefit of or use by the bureau.

end insert
37begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 94876 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

begin delete
P19   1

94876.  

(a) The powers and duties set forth in this chapter are
2vested in the Director of Consumer Affairs, who may delegate
3them to a bureau chief, subject to the provisions of this section.

end delete
4begin insert

begin insert94876.end insert  

end insert

begin insert(a)end insertbegin insertend insertThebegin delete bureau chiefend deletebegin insert executive officer of the boardend insert
5 shall be appointed by the Governor, subject to confirmation by the
6Senatebegin insert Committee on Rulesend insert, and is exempt from the State Civil
7Service Act pursuant to Part 2 (commencing with Section 18500)
8of Division 5 of Title 2 of the Government Code.

begin delete

9(c) Each power granted to, or duty imposed upon, the bureau
10under this chapter shall be exercised and performed in the name
11of the bureau, subject to any conditions and limitations the director
12may prescribe. The bureau chief may delegate any powers or duties
13to a designee.

14(d) As may be necessary to carry out this chapter, the director,
15in accordance with the State Civil Service Act, may appoint and
16fix the compensation of personnel.

end delete
begin insert

17(b) The executive officer of the board shall exercise the powers
18and perform the duties delegated by the board.

end insert
19begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 94877 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

94877.  

(a) Thebegin delete bureauend deletebegin insert boardend insert shall adoptbegin delete, on or before January
221, 2011,end delete
and shallbegin delete enforce,end deletebegin insert enforceend insert regulations to implement this
23chapter pursuant to the Administrative Procedure Act in Chapter
243.5 (commencing with Section 11340) of Part 1 of Division 3 of
25Title 2 of the Government Code.

26(b) Thebegin delete bureauend deletebegin insert boardend insert shall develop and implement an
27enforcement program, pursuant to Article 18 (commencing with
28Section 94932) to implement this chapter. The enforcement
29program shall include a plan for investigating complaints filed
30with thebegin delete bureau.end deletebegin insert board. The board shall contract with the Office
31of the Attorney General to establish a process for the board’s staff
32to be trained to investigate complaints, including, but not limited
33to, the information, evidence, and materials needed to process
34complaints.end insert

35(c) Thebegin delete bureauend deletebegin insert boardend insert shall establish a program to proactively
36identify unlicensed institutions, identify material or repeated
37violations of this chapter and regulations implementing this chapter,
38and take all appropriate legal action.

begin insert

39(d) The board shall, by January 1, 2016, initiate the process
40and procedures governing its approval or denial of applications
P20   1for approval to operate in accordance with board regulations
2adopted pursuant to Section 94888, for every application pending
3as of January 1, 2015.

end insert
4begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 94878 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
5read:end insert

6

94878.  

(a) begin deleteOn or before June 30, 2010, the bureau end deletebegin insertThe board end insert
7shall establish an Internet Web site that includes at least all of the
8following information:

9(1) An explanation of thebegin delete bureau’s transition plan for the
10reconstituted bureau and an explanation of the bureau’send delete
begin insert board’send insert
11 scope of authority.

12(2) (A) A directory of approved institutions, and a link, if
13feasible, to the Internet Web site of each institution.

14(B) For each institution, the directory shall be developed in a
15manner that allows the user to search by institution and shall
16include all of the following information:

17(i) The status of the institution’s approval to operate.

18(ii) The information provided by the institutions including, but
19not limited to, the annual report, as required by Section 94934,
20including the school catalog and the Student Performance Fact
21Sheet. The Student Performance Fact Sheet shall be maintained
22on the directory for at least five years after the date of its
23submission to thebegin delete bureauend deletebegin insert boardend insert.

24(iii) The disciplinary history of the institution, which shall
25include, but shall not be limited to, all of the following:

26(I) Pending formal accusations filed by thebegin delete bureauend deletebegin insert boardend insert.

27(II) Suspensions, revocations, citations, fines, infractions,
28probations, pending litigation filed by thebegin delete bureauend deletebegin insert boardend insert, and final
29judgments resulting from litigation filed by thebegin delete bureauend deletebegin insert boardend insert.

30(III) Pending or final criminal cases filed by the Attorney
31General, a city attorney, a district attorney, or a federal law
32enforcement official, of which thebegin delete bureauend deletebegin insert end insertbegin insertboardend insert has received
33notice.

34(IV) Final administrative actions by the United State Department
35of Education, including orders requiring restitution to students.

36(V) Final disciplinary actions by an accreditation agency, of
37which thebegin delete bureauend deletebegin insert boardend insert has received notice pursuant to Section
3894934.

39(b) Thebegin delete bureauend deletebegin insert boardend insert shall maintain the Internet Web site
40described in subdivision (a). Thebegin delete bureauend deletebegin insert boardend insert shall ensure that
P21   1the information specified in subdivision (a) is kept current. The
2begin delete bureauend deletebegin insert boardend insert shall update the Internet Web site at least annually,
3to coincide with the submission of annual reports by the institutions
4pursuant to Section 94934.

begin delete

5(c) In addition to maintaining the Internet Web site described
6in subdivision (a), the bureau shall provide the information
7described in paragraph (2) of subdivision (a) to the California
8Postsecondary Education Commission (CPEC), and the CPEC
9shall include that information in an Internet Web site directory of
10school performance data maintained by the CPEC. To the extent
11possible, the bureau shall provide this information consistent with
12the information collected for reporting to the Integrated
13Postsecondary Education Data System of the United States
14Department of Education, including institutional characteristics,
15completion, annual enrollment, and graduation rates.

end delete
begin insert

16(c) (1) The board shall post on its Internet Website a list of all
17institutions that were denied approval to operate, and describe in
18clear and conspicuous language the reason the institution was
19denied approval. The board shall include the statement provided
20in paragraph (2) on its Internet Web site.

end insert
begin insert

21(2) “The following institutions were denied approval to operate
22by the Board for Private Postsecondary Education for failing to
23satisfy the standards relating to educational quality, or consumer
24protection, or both. These unlicensed institutions are not operating
25in compliance with the law, and students are strongly discouraged
26from attending these institutions.”

end insert
27begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 94879 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
28read:end insert

29

94879.  

Thebegin delete bureauend deletebegin insert boardend insert shall conduct an outreach program
30to secondary school students as well as prospective and current
31private postsecondary students, to provide them with information
32on how to best select a private postsecondary institution, how to
33enter into enrollment agreements, how to make informed decisions
34in the private postsecondary education marketplace, and how to
35contact thebegin delete bureauend deletebegin insert boardend insert for assistance. Thebegin delete bureauend deletebegin insert boardend insert may
36accomplish the purposes of this section in cooperation withbegin delete the
37departmentend delete
begin insert other state or local entities, or bothend insert.

38begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 94880 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P22   1

94880.  

(a) There is within the bureau a 12-member advisory
2committee. On or before July 1, 2010, the members of the
3committee shall be appointed as follows:

4(1) Three members, who shall have a demonstrated record of
5advocacy on behalf of consumers, of which the Director of
6Consumer Affairs, the Senate Committee on Rules, and the Speaker
7of the Assembly shall each appoint one member.

8(2) Two members, who shall be current or past students of
9institutions, appointed by the Director of Consumer Affairs.

10(3) Three members, who shall be representatives of institutions,
11appointed by the Director of Consumer Affairs.

12(4) Two members, which shall be employers that hire students,
13appointed by the Director of Consumer Affairs.

14(5) One public member appointed by the Senate Committee on
15Rules.

16(6) One public member appointed by the Speaker of the
17Assembly.

18(b) The advisory committee shall advise the bureau with respect
19to matters relating to private postsecondary education and the
20administration of this chapter, including annually reviewing the
21fee schedule, licensing, and enforcement provisions of this chapter.

22(c) The bureau shall actively seek input from, and consult with,
23the advisory committee regarding the development of regulations
24to implement this chapter.

end delete
25begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 94880 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
26read:end insert

begin insert
27

begin insert94880.end insert  

(a) (1) The board shall establish a task force to
28determine standards for educational and training programs
29specializing in innovative subject matters and instructing students
30in high demand technology fields for which there is a demonstrated
31shortage of skilled employees. The members of the task force may
32include high technology employers, students of short-term focused
33high technology training programs, and providers of high
34technology training in subjects including, but not necessarily
35limited to, programming, software development, computer science,
36and coding.

37(2) (A) The board shall provide a report to the Legislature
38regarding educational and training programs subject to paragraph
39(1), and the institutions offering those programs, no later than
P23   1January 1, 2016. The report shall include the board’s evaluation
2of all of the following:

3(i) Whether students attending these institutions should receive
4certain disclosures prior to enrollment in a program.

5(ii) Whether the means of reporting student outcomes and the
6content of those reports are appropriate.

7(iii) Whether institutions that satisfy certain criteria should be
8regulated by the board and by this chapter.

9(iv) The steps the board and the state may take to promote the
10growth of high-quality training programs in skills for high
11technology occupations.

12(B) (i) The requirement for submitting a report imposed under
13this paragraph is inoperative on January 1, 2019, pursuant to
14Section 10231.5 of the Government Code.

15(ii) A report to be submitted pursuant to this paragraph shall
16be submitted in compliance with Section 9795 of the Government
17Code.

18(b) For an institution that is offering high technology training
19in programming, software development, computer science, or
20coding, and that is in the process of complying with this chapter
21through an application for approval to operate from the board,
22the board may defer processing the institution’s application until
23January 1, 2016.

end insert
24begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 94881 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
25read:end insert

26

94881.  

Thebegin delete bureauend deletebegin insert boardend insert may conduct workshops to provide
27applicants and institutions information on application processes,
28compliance with this chapter, best practices for providing
29postsecondary educational programs, and other subjects concerning
30postsecondary education.

31begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 94882 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
32read:end insert

33

94882.  

Thebegin delete bureauend deletebegin insert boardend insert may empanel visiting committees to
34assist in evaluating an institution’s application for an approval to
35operate. The members of visiting committees shall serve at no
36expense to the state, except that thebegin delete bureauend deletebegin insert boardend insert may reimburse
37the members of visiting committees for actual travel and per diem
38expenses incurred during the evaluation. Thebegin delete bureauend deletebegin insert boardend insert may
39seek reimbursement for the travel and per diem costs from the
40institution that is the subject of an evaluation.

P24   1begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 94883 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
2read:end insert

3

94883.  

(a) Any individual serving on a visiting committee
4who provides information to thebegin delete bureauend deletebegin insert boardend insert, or its staff, in the
5course of evaluating any institution, or who testifies in any
6administrative hearing arising under this chapter, is entitled to a
7defense and indemnification in any action arising out of the
8information or testimony provided as if he or she were a public
9employee.

10(b) Any defense and indemnification shall be solely with respect
11to the action pursuant to Article 4 (commencing with Section 825)
12of Chapter 1 of Part 2 of, and Part 7 (commencing with Section
13 995) of Division 3.6 of Title 1 of, the Government Code.

14begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 94884 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
15read:end insert

16

94884.  

Thebegin delete bureauend deletebegin insert boardend insert is subject to Section 27 of the
17Business and Professions Code.

18begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 94885 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
19read:end insert

20

94885.  

Thebegin delete bureauend deletebegin insert boardend insert shallbegin delete, by January 1, 2011,end delete adopt by
21regulation minimum operating standards for an institution that
22shall reasonably ensure that all of the following occur:

23(a) The content of each educational program can achieve its
24stated objective.

25(b) The institution maintains specific written standards for
26student admissions for each educational program and those
27standards are related to the particular educational program.

28(c) The facilities, instructional equipment, and materials are
29sufficient to enable students to achieve the educational program’s
30goals.

31(d) The institution maintains a withdrawal policy and provides
32refunds.

33(e) The directors, administrators, and faculty are properly
34qualified.

35(f) The institution is financially sound and capable of fulfilling
36its commitments to students.

37(g) That, upon satisfactory completion of an educational
38program, the institution gives students a document signifying the
39degree or diploma awarded.

P25   1(h) Adequate records and standard transcripts are maintained
2and are available to students.

3(i) The institution is maintained and operated in compliance
4with this chapter and all other applicable ordinances and laws.

begin insert

5(j) (1) An institution offering a degree is accredited by an
6accrediting agency recognized by the United States Department
7of Education.

end insert
begin insert

8(2) An unaccredited institution offering a degree that is
9approved to operate by the bureau as of January 1, 2015, shall
10have until January 1, 2016, to obtain and provide evidence of its
11candidacy or preaccreditation status with an accrediting agency
12recognized by the United States Department of Education, and to
13obtain and provide evidence of accreditation from that accrediting
14agency on or before January 1, 2017.

end insert
15begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 94887 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
16read:end insert

17

94887.  

An approval to operate shall be granted only after an
18applicant has presented sufficient evidence to thebegin delete bureauend deletebegin insert boardend insert,
19and thebegin delete bureauend deletebegin insert boardend insert has independently verified the information
20provided by the applicant through site visits or other methods
21deemed appropriate by thebegin delete bureauend deletebegin insert boardend insert, that the applicant has
22the capacity to satisfy the minimum operating standards. The
23begin delete bureauend deletebegin insert boardend insert shall deny an application for an approval to operate
24if the application does not satisfy those standards.

25begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 94888 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

94888.  

(a) Thebegin delete bureauend deletebegin insert boardend insert shallbegin delete, by January 1, 2011,end delete adopt
28by regulation both of the following:

29(1) The process and procedures whereby an institution seeking
30approval to operate may apply for and obtain an approval to
31operate.

32(2) The process and procedures governing thebegin delete bureau’send deletebegin insert board’send insert
33 approval and denial of applications for approval to operate,
34including the process and procedures whereby an applicant for
35which an application has been denied may appeal that denial.

36(b) Thebegin delete bureauend deletebegin insert boardend insert shall, by regulation, establish a process
37for issuing a notification of a denial of an approval to operate to
38an institution that submits an application for approval to operate
39and for which that application is denied. The notification of denial
40shall include a statement of reasons for the denial.

P26   1begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 94890 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
2read:end insert

3

94890.  

(a) (1) Thebegin delete bureauend deletebegin insert boardend insert shall grant an institution that
4is accredited an approval to operate by means of its accreditation.

5(2) Thebegin delete bureauend deletebegin insert boardend insert shallbegin delete, by January 1, 2011,end delete adopt by
6regulationbegin delete,end delete the process and procedures whereby an institution that
7is accredited may apply for and obtain an approval by means of
8that accreditation.

9(b) The term of an approval to operate pursuant to this section
10shall be coterminous with the term of accreditation. Upon renewal
11of the institution’s accreditation, the institution shall submit
12verification to thebegin delete bureauend deletebegin insert boardend insert, on a form provided by thebegin delete bureauend delete
13begin insert boardend insert, that the institution’s accreditation has been renewed.

14(c) Institutions that are granted an approval to operate by means
15of the institution’s accreditation shall comply with all other
16applicable requirements in this chapter.

17begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 94891 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

94891.  

(a) Thebegin delete bureauend deletebegin insert boardend insert shallbegin delete, by January 1, 2011,end delete adopt
20by regulation the process and procedures whereby an institution
21may obtain a renewal of an approval to operate.

22(b) To be granted a renewal of an approval to operate, the
23institution shall demonstrate its continued capacity to meet the
24minimum operating standards.

begin insert

25(c) (1) An institution that is denied renewal of an approval to
26operate may file an appeal in accordance with the procedures
27established by the board pursuant to Section 94888.

end insert
begin insert

28(2) An institution that has filed an appeal of a denial of a
29renewal application may continue to operate during the appeal
30process, but must disclose in a written statement, approved by the
31board, to the public and all current and prospective students, that
32the institution’s application for renewal of approval to operate
33was denied by the board because the board determined the
34application did not satisfy minimum requirements for educational
35capacity, that the institution is appealing the board’s decision,
36and that the loss of the appeal may result in the institution’s
37closure.

end insert
begin insert

38(3) If the board determines that the continued operation of the
39institution during the appeal process poses a significant risk of
P27   1harm to students, the board shall make an emergency decision
2pursuant to its authority provided in Section 94938.

end insert
3begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 94892 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
4read:end insert

5

94892.  

If an agency of this state other than thebegin delete bureauend deletebegin insert boardend insert
6 or of the federal government provides an approval to offer an
7educational program and the institution already has a valid approval
8to operate issued by thebegin delete bureauend deletebegin insert boardend insert, that agency’s educational
9program approval may satisfy the requirements of this article
10without any further review by thebegin delete bureauend deletebegin insert boardend insert. Thebegin delete bureauend deletebegin insert boardend insert
11 may incorporate that educational program into the institution’s
12approval to operate when thebegin delete bureauend deletebegin insert boardend insert receives documentation
13signifying the conferral of the educational program approval by
14that agency.

15begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 94893 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
16read:end insert

17

94893.  

If an institution intends to make a substantive change
18to its approval to operate, the institution shall receive prior
19authorization from thebegin delete bureauend deletebegin insert boardend insert. Except as provided in
20subdivision (a) of Section 94896, if the institution makes the
21substantive change without priorbegin delete bureauend deletebegin insert boardend insert authorization, the
22institution’s approval to operate may be suspended or revoked.

23begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 94895 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

94895.  

Thebegin delete bureauend deletebegin insert boardend insert shallbegin delete, by January 1, 2011,end delete adopt by
26regulation the process and procedures whereby an institution shall
27seek authorization for substantive changes to an approval to
28operate.

29begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 94896 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
30read:end insert

31

94896.  

(a) An institution that has been granted an approval to
32operate by means of accreditation shall only make a substantive
33change in accordance with the institution’s accreditation standards.

34(b) The institution shall notify thebegin delete bureauend deletebegin insert boardend insert of the
35substantive change on a form provided by thebegin delete bureauend deletebegin insert boardend insert.

36begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 94897 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
37read:end insert

38

94897.  

An institution shall not do any of the following:

39(a) Use, or allow the use of, any reproduction or facsimile of
40the Great Seal of the State of California on a diploma.

P28   1(b) Promise or guarantee employment, or otherwise overstate
2the availability of jobs upon graduation.

3(c) Advertise concerning job availability, degree of skill, or
4length of time required to learn a trade or skill unless the
5information is accurate and not misleading.

6(d) Advertise, or indicate in promotional material, without
7including the fact that the educational programs are delivered by
8means of distance education if the educational programs are so
9delivered.

10(e) Advertise, or indicate in promotional material, that the
11institution is accredited, unless the institution has been accredited
12by an accrediting agency.

13(f) Solicit students for enrollment by causing an advertisement
14to be published in “help wanted” columns in a magazine,
15newspaper, or publication, or use “blind” advertising that fails to
16identify the institution.

17(g) Offer to compensate a student to act as an agent of the
18institution with regard to the solicitation, referral, or recruitment
19of any person for enrollment in the institution, except that an
20institution may award a token gift to a student for referring an
21individual, provided that the gift is not in the form of money, no
22more than one gift is provided annually to a student, and the gift’s
23cost is not more than one hundred dollars ($100).

24(h) Pay any consideration to a person to induce that person to
25sign an enrollment agreement for an educational program.

26(i) Use a name in any manner improperly implying any of the
27following:

28(1) The institution is affiliated with any government agency,
29public or private corporation, agency, or association if it is not, in
30fact, thus affiliated.

31(2) The institution is a public institution.

32(3) The institution grants degrees, if the institution does not
33grant degrees.

34(j) In any manner make an untrue or misleading change in, or
35untrue or misleading statement related to, a test score, grade or
36record of grades, attendance record, record indicating student
37completion, placement, employment, salaries, or financial
38information, including any of the following:

39(1) A financial report filed with thebegin delete bureauend deletebegin insert boardend insert.

P29   1(2) Information or records relating to the student’s eligibility
2for student financial aid at the institution.

3(3) Any other record or document required by this chapter or
4by thebegin delete bureauend deletebegin insert boardend insert.

5(k) Willfully falsify, destroy, or conceal any document of record
6while that document of record is required to be maintained by this
7chapter.

8(l) Use the terms “approval,” “approved,” “approval to operate,”
9or “approved to operate” without stating clearly and conspicuously
10that approval to operate means compliance with state standards as
11set forth in this chapter. If thebegin delete bureauend deletebegin insert boardend insert has granted an
12institution approval to operate, the institution may indicate that
13the institution is “licensed” or “licensed to operate,” but may not
14state or imply either of the following:

15(1) The institution or its educational programs are endorsed or
16recommended by the state or by thebegin delete bureauend deletebegin insert boardend insert.

17(2) The approval to operate indicates that the institution exceeds
18minimum state standards as set forth in this chapter.

19(m) Direct any individual to perform an act that violates this
20chapter, to refrain from reporting unlawful conduct to thebegin delete bureauend delete
21begin insert boardend insert or another government agency, or to engage in any unfair
22act to persuade a student not to complain to thebegin delete bureauend deletebegin insert boardend insert or
23another government agency.

24(n) Compensate an employee involved in recruitment,
25enrollment, admissions, student attendance, or sales of educational
26materials to students on the basis of a commission, commission
27draw, bonus, quota, or other similar method related to the
28recruitment, enrollment, admissions, student attendance, or sales
29of educational materials to students, except as provided in
30paragraph (1) or (2):

31(1) If the educational program is scheduled to be completed in
3290 days or less, the institution shall pay compensation related to
33a particular student only if that student completes the educational
34program.

35(2) For institutions participating in the federal student financial
36aid programs, this subdivision shall not prevent the payment of
37compensation to those involved in recruitment, admissions, or the
38award of financial aid if those payments are in conformity with
39federal regulations governing an institution’s participation in the
40federal student financial aid programs.

P30   1(o) Require a prospective student to provide personal contact
2information in order to obtain, from the institution’s Internet Web
3site, educational program information that is required to be
4contained in the school catalog or any information required
5pursuant to the consumer information requirements of Title IV of
6the federal Higher Education Act of 1965, and any amendments
7thereto.

8(p) Offer an associate, baccalaureate, master’s, or doctoral
9degree without disclosing to prospective students prior to
10enrollment whether the institution or the degree program is
11unaccredited and any known limitation of the degree, including,
12but not limited to, all of the following:

13(1) Whether a graduate of the degree program will be eligible
14to sit for the applicable licensure exam in California and other
15states.

16(2) A statement that reads: “A degree program that is
17unaccredited or a degree from an unaccredited institution is not
18recognized for some employment positions, including, but not
19limited to, positions with the State of California.”

20(3) That a student enrolled in an unaccredited institution is not
21eligible for federal financial aid programs.

22begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 94898 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
23read:end insert

24

94898.  

(a) An institution shall not merge classes unless all of
25the students have received the same amount of instruction. This
26subdivision does not prevent the placement of students, who are
27enrolled in different educational programs, in the same class if that
28class is part of each of the educational programs and the placement
29in a merged class will not impair the students’ learning of the
30subject matter of the class.

31(b) After a student has enrolled in an educational program, the
32institution shall not do either of the following:

33(1) Make any unscheduled suspension of any class unless caused
34by circumstances beyond the institution’s control.

35(2) Change the day or time during the period of attendance in
36which any class is offered to a day when the student is not
37scheduled to attend the institution or to a time that is outside of
38the range of time that the student is scheduled to attend the
39institution on the day for which the change is proposed unless at
40least 90 percent of the students who are enrolled consent to the
P31   1change and the institution offers full refunds to the students who
2do not consent to the change. For the purpose of this paragraph,
3“range of time” means the period beginning with the time at which
4the student’s first scheduled class session for the day is set to start
5and ending with the time the student’s last scheduled class session
6for that day is set to finish.

7(c) If an institution enrolls a student in an educational program
8that is conducted at a specific site at the time of enrollment, the
9institution shall not convert the educational program to another
10method of delivery, such as by means of distance education. This
11subdivision does not apply to an educational program that also
12includes a distance education component, if the student is notified
13during the enrollment process, in writing, that the program contains
14a distance education component.

15(d) An institution shall not move the location of class instruction
16more than 25 miles from the location of instruction at the time of
17enrollment unless any of the following occur:

18(1) The institution discloses in writing to each student before
19enrollment in the educational program that the location of
20instruction will change after the educational program begins and
21the address of the new location.

22(2) The institution applies for, and thebegin delete bureauend deletebegin insert boardend insert grants,
23approval to change the location. Thebegin delete bureauend deletebegin insert boardend insert shall grant the
24application within 60 days if thebegin delete bureauend deletebegin insert boardend insert, after notice to
25affected students and an opportunity for them to be heard as
26prescribed by thebegin delete bureauend deletebegin insert boardend insert, concludes that the change in
27location would not be unfair or unduly burdensome to students.
28Thebegin delete bureauend deletebegin insert boardend insert may grant approval to change the location
29subject to reasonable conditions, such as requiring the institution
30to provide transportation, transportation costs, or refunds to
31adversely affected students.

32(3) The institution offers a full refund to students enrolled in
33the educational program who do not voluntarily consent to the
34change.

35(4) An unforeseeable and unavoidable circumstance outside of
36the control of the institution requires the change in the location of
37instruction.

38begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 94900.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
39to read:end insert

P32   1

94900.7.  

The recordkeeping requirements of this article shall
2not apply to an institution that is accredited, if the recordkeeping
3requirements of the accrediting organization are substantially
4similar to the recordkeeping requirements of this article, as
5determined by thebegin delete bureauend deletebegin insert boardend insert.

6begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 94904 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
7read:end insert

8

94904.  

(a) Before an ability-to-benefit student may execute
9an enrollment agreement, the institution shall have the student take
10an independently administered examination from the list of
11examinations prescribed by the United States Department of
12Education pursuant to Section 484(d) of the federal Higher
13Education Act of 1965 (20 U.S.C. Sec. 1070a et seq.) as it is, from
14time to time, amended. The student shall not enroll unless the
15student achieves a score, as specified by the United States
16Department of Education, demonstrating that the student may
17benefit from the education and training being offered.

18(b) If the United States Department of Education does not have
19a list of relevant examinations that pertain to the intended
20occupational training, thebegin delete bureauend deletebegin insert boardend insert may publish its own list
21of acceptable examinations.

22begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 94909 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
23read:end insert

24

94909.  

(a) Prior to enrollment, an institution shall provide a
25prospective student, either in writing or electronically, with a
26school catalog containing, at a minimum, all of the following:

27(1) The name, address, telephone number, and, if applicable,
28Internet Web site address of the institution.

29(2) Except as specified in Article 2 (commencing with Section
3094802), a statement that the institution is a private institution and
31that it is approved to operate by thebegin delete bureauend deletebegin insert boardend insert.

32(3) The following statements:

33(A) “Any questions a student may have regarding this catalog
34that have not been satisfactorily answered by the institution may
35be directed to thebegin delete Bureauend deletebegin insert Boardend insert for Private Postsecondary
36Education at (address), Sacramento, CA (ZIP Code), (Internet Web
37site address), (telephone and fax numbers).”

38(B) “As a prospective student, you are encouraged to review
39this catalog prior to signing an enrollment agreement. You are also
P33   1encouraged to review the School Performance Fact Sheet, which
2must be provided to you prior to signing an enrollment agreement.”

3(C) “A student or any member of the public may file a complaint
4about this institution with thebegin delete Bureauend deletebegin insert Boardend insert for Private
5Postsecondary Education by calling (toll-free telephone number)
6or by completing a complaint form, which can be obtained on the
7begin delete bureau’send deletebegin insert board’send insert Internet Web site (Internet Web site address).”

8(4) The address or addresses where class sessions will be held.

9(5) A description of the programs offered and a description of
10the instruction provided in each of the courses offered by the
11institution, the requirements for completion of each program,
12including required courses, any final tests or examinations, any
13required internships or externships, and the total number of credit
14hours, clock hours, or other increments required for completion.

15(6) If the educational program is designed to lead to positions
16in a profession, occupation, trade, or career field requiring licensure
17in this state, a notice to that effect and a list of the requirements
18for eligibility for licensure.

19(7) Information regarding the faculty and their qualifications.

20(8) A detailed description of institutional policies in the
21following areas:

22(A) Admissions policies, including the institution’s policies
23regarding the acceptance of credits earned at other institutions or
24through challenge examinations and achievement tests, admissions
25requirements for ability-to-benefit students, and a list describing
26any transfer or articulation agreements between the institution and
27any other college or university that provides for the transfer of
28credits earned in the program of instruction. If the institution has
29not entered into an articulation or transfer agreement with any
30other college or university, the institution shall disclose that fact.

31(B) Cancellation, withdrawal, and refund policies, including an
32explanation that the student has the right to cancel the enrollment
33agreement and obtain a refund of charges paid through attendance
34at the first class session, or the seventh day after enrollment,
35whichever is later. The text shall also include a description of the
36procedures that a student is required to follow to cancel the
37enrollment agreement or withdraw from the institution and obtain
38a refund consistent with the requirements of Article 13
39(commencing with Section 94919).

40(C) Probation and dismissal policies.

P34   1(D) Attendance policies.

2(E) Leave-of-absence policies.

3(9) The schedule of total charges for a period of attendance and
4an estimated schedule of total charges for the entire educational
5program.

6(10) A statement reporting whether the institution participates
7in federal and state financial aid programs, and if so, all consumer
8information that is required to be disclosed to the student pursuant
9to the applicable federal and state financial aid programs.

10(11) A statement specifying that, if a student obtains a loan to
11pay for an educational program, the student will have the
12responsibility to repay the full amount of the loan plus interest,
13less the amount of any refund, and that, if the student has received
14federal student financial aid funds, the student is entitled to a refund
15of the moneys not paid from federal student financial aid program
16funds.

17(12) A statement specifying whether the institution has a pending
18petition in bankruptcy, is operating as a debtor in possession, has
19filed a petition within the preceding five years, or has had a petition
20in bankruptcy filed against it within the preceding five years that
21resulted in reorganization under Chapter 11 of the United States
22Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.).

23(13) If the institution provides placement services, a description
24of the nature and extent of the placement services.

25(14) A description of the student’s rights and responsibilities
26with respect to the Student Tuition Recovery Fund. This statement
27shall specify that it is a state requirement that a student who pays
28his or her tuition is required to pay a state-imposed assessment for
29the Student Tuition Recovery Fund. This statement shall also
30describe the purpose and operation of the Student Tuition Recovery
31Fund and the requirements for filing a claim against the Student
32Tuition Recovery Fund.

33(15) The following statement:

34

35“NOTICE CONCERNING TRANSFERABILITY OF
36CREDITS AND CREDENTIALS EARNED AT OUR
37INSTITUTION


38The transferability of credits you earn at (name of institution)
39is at the complete discretion of an institution to which you
40may seek to transfer. Acceptance of the (degree, diploma, or
P35   1certificate) you earn in (name of educational program) is also
2at the complete discretion of the institution to which you may
3seek to transfer. If the (credits or degree, diploma, or
4 certificate) that you earn at this institution are not accepted at
5the institution to which you seek to transfer, you may be
6required to repeat some or all of your coursework at that
7institution. For this reason you should make certain that your
8attendance at this institution will meet your educational goals.
9This may include contacting an institution to which you may
10seek to transfer after attending (name of institution) to
11determine if your (credits or degree, diploma or certificate)
12will transfer.”

13

14(16) A statement specifying whether the institution, or any of
15its degree programs, are accredited by an accrediting agency
16recognized by the United States Department of Education. If the
17institution is unaccredited and offers an associate, baccalaureate,
18master’s, or doctoral degree, or is accredited and offers an
19unaccredited program for an associate, baccalaureate, master’s, or
20 doctoral degree, the statement shall disclose the known limitations
21of the degree program, including, but not limited to, all of the
22following:

23(A) Whether a graduate of the degree program will be eligible
24to sit for the applicable licensure exam in California and other
25states.

26(B) A degree program that is unaccredited or a degree from an
27unaccredited institution is not recognized for some employment
28positions, including, but not limited to, positions with the State of
29California.

30(C) That a student enrolled in an unaccredited institution is not
31eligible for federal financial aid programs.

32(b) If the institution has a general student brochure, the
33institution shall provide that brochure to the prospective student
34prior to enrollment. In addition, if the institution has a
35program-specific student brochure for the program in which the
36prospective student seeks to enroll, the institution shall provide
37the program-specific student brochure to the prospective student
38prior to enrollment.

39(c) An institution shall provide the school catalog to any person
40upon request. In addition, if the institution has student brochures,
P36   1the institution shall disclose the requested brochures to any
2interested person upon request.

3begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 94910 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
4read:end insert

5

94910.  

Prior to enrollment, an institution shall provide a
6prospective student with a School Performance Fact Sheet
7containing, at a minimum, the following information, as it relates
8to the educational program:

9(a) Completion rates, as calculated pursuant to Article 16
10(commencing with Section 94928).

11(b) Placement rates for each educational program, as calculated
12pursuant to Article 16 (commencing with Section 94928), if the
13educational program is designed to lead to, or the institution makes
14any express or implied claim related to preparing students for, a
15recognized career, occupation, vocation, job, or job title.

16(c) License examination passage rates for programs leading to
17employment for which passage of a state licensing examination is
18required, as calculated pursuant to Article 16 (commencing with
19Section 94928).

20(d) Salary or wage information, as calculated pursuant to Article
2116 (commencing with Section 94928).

22(e) If a program is too new to provide data for any of the
23categories listed in this subdivision, the institution shall state on
24its fact sheet: “This program is new. Therefore, the number of
25students who graduate, the number of students who are placed, or
26the starting salary you can earn after finishing the educational
27program are unknown at this time. Information regarding general
28salary and placement statistics may be available from government
29sources or from the institution, but is not equivalent to actual
30performance data.”

31(f) All of the following:

32(1) A description of the manner in which the figures described
33in subdivisions (a) to (d), inclusive, are calculated or a statement
34informing the reader of where he or she may obtain a description
35of the manner in which the figures described in subdivisions (a)
36to (d), inclusive, are calculated.

37(2) A statement informing the reader of where he or she may
38obtain from the institution a list of the employment positions
39determined to be within the field for which a student received
P37   1education and training for the calculation of job placement rates
2as required by subdivision (b).

3(3) A statement informing the reader of where he or she may
4obtain from the institution a list of the objective sources of
5information used to substantiate the salary disclosure as required
6by subdivision (d).

7(g) The following statements:

8(1) “This fact sheet is filed with thebegin delete Bureauend deletebegin insert Boardend insert for Private
9Postsecondary Education. Regardless of any information you may
10have relating to completion rates, placement rates, starting salaries,
11or license exam passage rates, this fact sheet contains the
12information as calculated pursuant to state law.”

13(2) “Any questions a student may have regarding this fact sheet
14that have not been satisfactorily answered by the institution may
15be directed to thebegin delete Bureauend deletebegin insert Boardend insert for Private Postsecondary
16Education at (address), Sacramento, CA (ZIP Code), (Internet Web
17site address), (telephone and fax numbers).”

18(h) If the institution participates in federal financial aid
19programs, the most recent three-year cohort default rate reported
20by the United States Department of Education for the institution
21and the percentage of enrolled students receiving federal student
22loans.

23begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 94911 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

94911.  

An enrollment agreement shall include, at a minimum,
26all of the following:

27(a) The name of the institution and the name of the educational
28program, including the total number of credit hours, clock hours,
29or other increment required to complete the educational program.

30(b) A schedule of total charges, including a list of any charges
31that are nonrefundable and the student’s obligations to the Student
32Tuition Recovery Fund, clearly identified as nonrefundable
33charges.

34(c) In underlined capital letters on the same page of the
35enrollment agreement in which the student’s signature is required,
36the total charges for the current period of attendance, the estimated
37total charges for the entire educational program, and the total
38charges the student is obligated to pay upon enrollment.

P38   1(d) A clear and conspicuous statement that the enrollment
2agreement is legally binding when signed by the student and
3accepted by the institution.

4(e) (1) A disclosure with a clear and conspicuous caption,
5“STUDENT’S RIGHT TO CANCEL,” under which it is explained
6that the student has the right to cancel the enrollment agreement
7and obtain a refund of charges paid through attendance at the first
8class session, or the seventh day after enrollment, whichever is
9later.

10(2) The disclosure shall contain the institution’s refund policy
11and a statement that, if the student has received federal student
12financial aid funds, the student is entitled to a refund of moneys
13not paid from federal student financial aid program funds.

14(3) The text shall also include a description of the procedures
15that a student is required to follow to cancel the enrollment
16agreement or withdraw from the institution and obtain a refund.

17(f) A statement specifying that, if the student obtains a loan to
18pay for an educational program, the student will have the
19responsibility to repay the full amount of the loan plus interest,
20less the amount of any refund.

21(g) A statement specifying that, if the student is eligible for a
22loan guaranteed by the federal or state government and the student
23defaults on the loan, both of the following may occur:

24(1) The federal or state government or a loan guarantee agency
25may take action against the student, including applying any income
26tax refund to which the person is entitled to reduce the balance
27owed on the loan.

28(2) The student may not be eligible for any other federal student
29financial aid at another institution or other government assistance
30until the loan is repaid.

31(h) The transferability disclosure that is required to be included
32in the school catalog, as specified in paragraph (15) of subdivision
33(a) of Section 94909.

34(i) (1) The following statement: “Prior to signing this enrollment
35agreement, you must be given a catalog or brochure and a School
36Performance Fact Sheet, which you are encouraged to review prior
37to signing this agreement. These documents contain important
38policies and performance data for this institution. This institution
39is required to have you sign and date the information included in
40the School Performance Fact Sheet relating to completion rates,
P39   1placement rates, license examination passage rates, salaries or
2wages, and the most recent three-year cohort default rate, if
3applicable, prior to signing this agreement.”

4(2) Immediately following the statement required by paragraph
5(1), a line for the student to initial, including the following
6statement: “I certify that I have received the catalog, School
7Performance Fact Sheet, and information regarding completion
8rates, placement rates, license examination passage rates, salary
9or wage information, and the most recent three-year cohort default
10rate, if applicable, included in the School Performance Fact sheet,
11and have signed, initialed, and dated the information provided in
12the School Performance Fact Sheet.”

13(j) The following statements:

14

15(1) “Any questions a student may have regarding this
16enrollment agreement that have not been satisfactorily
17answered by the institution may be directed to thebegin delete Bureauend delete
18begin insert Boardend insert for Private Postsecondary Education at (address),
19Sacramento, CA (ZIP Code), (Internet Web site address),
20(telephone and fax numbers).”

21

22(2) “A student or any member of the public may file a complaint
23about this institution with thebegin delete Bureauend deletebegin insert Boardend insert for Private
24Postsecondary Education by calling (toll-free telephone number)
25or by completing a complaint form, which can be obtained on the
26begin delete bureau’send deletebegin insert board’send insert Internet Web site (Internet Web site address).”

27

28(k) The following statement above the space for the student’s
29signature:

30

31“I understand that this is a legally binding contract. My
32signature below certifies that I have read, understood, and
33agreed to my rights and responsibilities, and that the
34institution’s cancellation and refund policies have been clearly
35explained to me.”

36

37begin insert

begin insertSEC. 54.end insert  

end insert

begin insertSection 94913 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

39

94913.  

(a) An institution that maintains an Internet Web site
40shall provide on that Internet Web site all of the following:

P40   1(1) The school catalog.

2(2) A School Performance Fact Sheet for each educational
3program offered by the institution.

4(3) Student brochures offered by the institution.

5(4) A link to thebegin delete bureau’send deletebegin insert board’send insert Internet Web site.

6(5) The institution’s most recent annual report submitted to the
7begin delete bureauend deletebegin insert boardend insert.

8(b) An institution shall include information concerning where
9students may access thebegin delete bureau’send deletebegin insert board’send insert Internet Web site
10anywhere the institution identifies itself as being approved by the
11begin delete bureauend deletebegin insert boardend insert.

12begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 94920 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
13read:end insert

14

94920.  

An institution that does not participate in the federal
15student financial aid programs shall do all of the following:

16(a) The institution shall advise each student that a notice of
17cancellation shall be in writing, and that a withdrawal may be
18effectuated by the student’s written notice or by the student’s
19conduct, including, but not necessarily limited to, a student’s lack
20of attendance.

21(b) Institutions shall refund 100 percent of the amount paid for
22institutional charges, less a reasonable deposit or application fee
23not to exceed two hundred fifty dollars ($250), if notice of
24cancellation is made through attendance at the first class session,
25or the seventh day after enrollment, whichever is later.

26(c) Thebegin delete bureauend deletebegin insert boardend insert may adopt by regulation a different method
27of calculation for instruction delivered by other means, including,
28but not necessarily limited to, distance education.

29(d) The institution shall have a refund policy for the return of
30unearned institutional charges if the student cancels an enrollment
31agreement or withdraws during a period of attendance. The refund
32policy for students who have completed 60 percent or less of the
33period of attendance shall be a pro rata refund.

34(e) The institution shall pay or credit refunds within 45 days of
35a student’s cancellation or withdrawal.

36begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 94921 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
37read:end insert

38

94921.  

An institution offering an educational program for
39which the refund calculations set forth in this article cannot be
40utilized because of the unique way in which the educational
P41   1program is structured, may petition thebegin delete bureauend deletebegin insert boardend insert for an
2alternative method of calculating tuition refunds.

3begin insert

begin insertSEC. 57.end insert  

end insert

begin insertSection 94923 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
4read:end insert

5

94923.  

begin insert(a)end insertbegin insertend insert Thebegin delete bureauend deletebegin insert boardend insert shallbegin delete, by January 1, 2011,end delete adopt
6by regulation procedures governing the administration and
7maintenance of the Student Tuition Recovery Fund, including
8requirements relating to assessments on students and student claims
9against the Student Tuition Recovery Fund.

begin insert

10The regulations shall ensure that the following students, and
11any other students deemed appropriate, are eligible for payment
12from the Student Tuition Recovery Fund:

end insert
begin insert

13(1) In the event of a school closure, a student who attended the
14institution within 120 days of the closure.

end insert
begin insert

15(2) Students to whom an institution has been ordered to pay
16refunds by the board but has failed to do so.

end insert
begin insert

17(3) Students who have been awarded restitution, refunds or
18monetary awards by an arbitrator or court, but who have been
19unable to collect the award from the institution.

end insert
begin insert

20(4) Students whose programs have been discontinued at the
21campus they attend before they are able to complete the program.

end insert
begin insert

22(b) Students who suffered losses due to an institution’s violation
23of this act shall be eligible for payment from the Student Tuition
24Recovery Fund.

end insert
25begin insert

begin insertSEC. 58.end insert  

end insert

begin insertSection 94924 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

94924.  

All assessments collected pursuant to this article shall
28be credited to the Student Tuition Recovery Fund, along with any
29accrued interest, for the purpose of this article. Notwithstanding
30Section 13340 of the Government Code, the moneys in the Student
31Tuition Recovery Fund are continuously appropriated to thebegin delete bureauend delete
32begin insert boardend insert, without regard to fiscal year, for the purposes of this article.

33begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 94926 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
34read:end insert

35

94926.  

At least 30 days prior to closing,begin delete theend deletebegin insert anend insert institution shall
36notify thebegin delete bureauend deletebegin insert boardend insert in writing of its intention to close. The
37notice shall be accompanied by a closure plan, which shall include,
38but not necessarily be limited to, all of the following:

P42   1(a) A plan for providing teach-outs of educational programs,
2including any agreements with any other postsecondary educational
3institutions to provide teach-outs.

4(b) If no teach-out plan is contemplated, or for students who do
5not wish to participate in a teach-out, arrangements for making
6refunds within 45 days from the date of closure, or for institutions
7that participate in federal student financial aid programs
8arrangements for making refunds and returning federal student
9financial aid program funds.

10(c) If the institution is a participant in federal student financial
11aid programs, it shall provide students information concerning
12these programs and institutional closures.

13(d) A plan for the disposition of student records.

14begin insert

begin insertSEC. 60.end insert  

end insert

begin insertSection 94927 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
15read:end insert

16

94927.  

An institution shall be considered in default of the
17enrollment agreement when an educational program is discontinued
18or canceled or the institution closes prior to completion of the
19educational program. When an institution is in default, student
20institutional charges may be refunded on a pro rata basis if the
21begin delete bureauend deletebegin insert boardend insert determines that the school has made provision for
22students enrolled at the time of default to complete a comparable
23educational program at another institution at no additional charge
24to the students beyond the amount of the total charges in the
25original enrollment agreement. If the institution does not make
26that provision, a total refund of all institutional charges shall be
27made to students.

28begin insert

begin insertSEC. 61.end insert  

end insert

begin insertSection 94927.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
29to read:end insert

30

94927.5.  

(a) Prior to closing, an institution shall provide the
31begin delete bureauend deletebegin insert boardend insert with the following:

32(1) Pertinent student records, including transcripts, as determined
33by thebegin delete bureauend deletebegin insert boardend insert, pursuant to regulations adopted by thebegin delete bureauend delete
34begin insert boardend insert.

35(2) If the institution is an accredited institution, a plan for the
36retention of records and transcripts, approved by the institution’s
37accrediting agency, that provides information as to how a student
38may obtain a transcript or any other information about the student’s
39coursework and degrees completed.

P43   1(b) Subdivision (a) applies to all private postsecondary
2institutions, including institutions that are otherwise exempt from
3this chapter pursuant to Article 4 (commencing with Section
494874).

5begin insert

begin insertSEC. 62.end insert  

end insert

begin insertSection 94928 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
6read:end insert

7

94928.  

As used in this article, the following terms have the
8following meanings:

9(a) “Cohort population” means the number of students that
10began a program on a cohort start date.

11(b) “Cohort start date” means the first class day after the
12cancellation period during which a cohort of students attends class
13for a specific program.

14(c) “Graduates” means the number of students who complete a
15program within 100 percent of the published program length. An
16institution may separately state completion information for students
17completing the program within 150 percent of the original
18contracted time, but that information may not replace completion
19information for students completing within the original scheduled
20time. Completion information shall be separately stated for each
21campus or branch of the institution.

22(d) “Graduates available for employment” means the number
23of graduates minus the number of graduates unavailable for
24employment.

25(e) (1) “Graduates employed in the field” means graduates who
26are gainfully employed in a single position for which the institution
27represents the program prepares its graduates within six months
28after a student completes the applicable educational program. For
29occupations for which the state requires passing an examination,
30the period of employment shall begin within six months of the
31announcement of the examination results for the first examination
32available after a student completes an applicable educational
33program.

34(2) Thebegin delete bureauend deletebegin insert boardend insert shall define by July 1, 2014, specific
35measures and standards for determining whether a student is
36gainfully employed in a full-time or part-time position for which
37the institution represents the program prepares its graduates,
38including self-employment or conducting freelance work, and may
39set the standards for the hours per week and duration of
40employment and utilize any job classification methodology the
P44   1begin delete bureauend deletebegin insert boardend insert determines appropriate for this purpose, including,
2but not limited to, the United States Department of Labor’s
3Standard Occupational Classification codes.

4(3) This subdivision does not prohibit thebegin delete bureauend deletebegin insert boardend insert from
5authorizing an institution to aggregate single positions held by a
6graduate for purposes of meeting the hours per week standards
7established by thebegin delete bureauend deletebegin insert boardend insert.

8(f) “Graduates unavailable for employment” means graduates
9who, after graduation, die, become incarcerated, are called to active
10military duty, are international students that leave the United States
11or do not have a visa allowing employment in the United States,
12or are continuing their education at an accredited or
13begin delete bureau-approvedend deletebegin insert board-approvedend insert postsecondary institution.

14(g) “Students available for graduation” means the cohort
15population minus the number of students unavailable for
16graduation.

17(h) “Students unavailable for graduation” means students who
18have died, been incarcerated, or called to active military duty.

19begin insert

begin insertSEC. 63.end insert  

end insert

begin insertSection 94929 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

94929.  

(a) An institution shall annually report to thebegin delete bureauend delete
22begin insert boardend insert, as part of the annual report, and publish in its School
23Performance Fact Sheet, the completion rate for each program.
24Except as provided in subdivision (b), the completion rate shall
25be calculated by dividing the number of graduates by the number
26of students available for graduation.

27(b) In lieu of calculating graduation data pursuant to subdivision
28(a), an institution may report graduation data reported to, and
29calculated by, the Integrated Postsecondary Education Data System
30of the United States Department of Education.

31begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 94929.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
32to read:end insert

33

94929.5.  

(a) An institution shall annually report to thebegin delete bureauend delete
34begin insert boardend insert, as part of the annual report, and shall publish in its School
35Performance Fact Sheet, all of the following:

36(1) The job placement rate, calculated by dividing the number
37of graduates employed in the field by the number of graduates
38available for employment for each program that is either (1)
39designed, or advertised, to lead to a particular career, or (2)
40advertised or promoted with any claim regarding job placement.

P45   1(2) The license examination passage rates for the immediately
2preceding two years for programs leading to employment for which
3passage of a state licensing examination is required, calculated by
4dividing the number of graduates who pass the examination by the
5number of graduates who take the licensing examination the first
6time that the examination is available after completion of the
7educational program. The institution shall use state agency
8licensing data to calculate license examination passage rates. If
9those data are unavailable, the institution shall calculate the license
10examination passage rate in a manner consistent with regulations
11adopted by thebegin delete bureauend deletebegin insert boardend insert.

12(3) Salary and wage information, consisting of the total number
13of graduates employed in the field and the annual wages or salaries
14of those graduates stated in increments of five thousand dollars
15($5,000).

16(4) If applicable, the most recent official three-year cohort
17default rate reported by the United States Department of Education
18for the institution and the percentage of enrolled students receiving
19federal student loans.

20(b) Nothing in this section shall limit thebegin delete bureau’send deletebegin insert board’send insert
21 authority to collect information from an institution to comply with
22this section and ensure, by regulation and other lawful means, that
23the information required by this section, and the manner in which
24it is collected and reported, is all of the following:

25(1) Useful to students.

26(2) Useful to policymakers.

27(3) Based upon the most credible and verifiable data available.

28(4) Does not impose undue compliance burdens on an institution.

29begin insert

begin insertSEC. 65.end insert  

end insert

begin insertSection 94929.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
30to read:end insert

31

94929.7.  

(a) The information used to substantiate the rates
32and information calculated pursuant to Sections 94929 and 94929.5
33shall do both of the following:

34(1) Be documented and maintained by the institution for five
35years from the date of the publication of the rates and information.

36(2) Be retained in an electronic format and made available to
37thebegin delete bureauend deletebegin insert boardend insert upon request.

38(b) An institution shall provide a list of employment positions
39used to determine the number of graduates employed in the field
P46   1for purposes of calculating job placement rates pursuant to this
2article.

3(c) Thebegin delete bureauend deletebegin insert boardend insert shall identify the specific information that
4an institution is required to document and maintain to substantiate
5rates and information pursuant to this section.

6begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 94929.8 of the end insertbegin insertEducation Codeend insertbegin insert is amended
7to read:end insert

8

94929.8.  

(a) begin deleteOn or before January 1, 2011, and pursuant to
9Section 94877, the bureau end delete
begin insertThe board end insertshall establish, by regulation
10begin insert as specified in Section 94877end insert, a uniform method for institutions
11to obtain statistically valid, current, and representative data to
12comply with this article.

13(b) A violation of the regulations adopted pursuant to
14subdivision (a) is a material violation of this chapter.

15begin insert

begin insertSEC. 67.end insert  

end insert

begin insertSection 94929.9 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert94929.9.end insert  

(a) The board shall report to the Legislature, on or
18before October 1, 2015, on efforts to streamline the board’s
19approval to operate process for institutions while ensuring that
20the same or similar data information, as is required to be reported
21to the board pursuant to this article, is being reported to students
22in a clear and conspicuous manner.

23(b) (1) A report to be submitted to the Legislature pursuant to
24subdivision (a) shall be submitted in compliance with Section 9795
25of the Government Code.

26(2) Pursuant to Section 10231.5 of the Government Code, this
27section is repealed January 1, 2019.

end insert
28begin insert

begin insertSEC. 68.end insert  

end insert

begin insertSection 94930 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
29read:end insert

30

94930.  

(a) All fees collected pursuant to this article, including
31any interest on those fees, shall be deposited in the Private
32Postsecondary Education Administration Fund, and shall be
33available, upon appropriation by the Legislature, for expenditure
34by thebegin delete bureauend deletebegin insert boardend insert for the administration of this chapter.

35(b) If thebegin delete bureauend deletebegin insert boardend insert determines by regulation that the
36adjustment of the fees established by this article is consistent with
37the intent of this chapter, thebegin delete bureauend deletebegin insert boardend insert may adjust the fees.
38However, thebegin delete bureauend deletebegin insert boardend insert shall not maintain a reserve balance
39in the Private Postsecondary Education Administration Fund in
40an amount that is greater than the amount necessary to fund six
P47   1months of authorized operating expenses of thebegin delete bureauend deletebegin insert boardend insert in
2any fiscal year.

3begin insert

begin insertSEC. 69.end insert  

end insert

begin insertSection 94930.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

94930.5.  

begin deleteAn end deletebegin insertSubject to Section 94930, an end insertinstitution shall remit
6to thebegin delete bureauend deletebegin insert boardend insert for deposit in the Private Postsecondary
7Education Administration Fund the following fees, in accordance
8with the following schedule:

9(a) The following fees shall be remitted by an institution
10submitting an application for an approval to operate, if applicable:

11(1) Application fee for an approval to operate: five thousand
12dollars ($5,000).

13(2) Application fee for the approval to operate a new branch of
14the institution: three thousand dollars ($3,000).

15(3) Application fee for an approval to operate by means of
16accreditation: seven hundred fifty dollars ($750).

17(b) The following fees shall be remitted by an institution seeking
18a renewal of its approval to operate, if applicable:

19(1) Renewal fee for the main campus of the institution: three
20thousand five hundred dollars ($3,500).

21(2) Renewal fee for a branch of the institution: three thousand
22dollars ($3,000).

23(3) Renewal fee for an institution that is approved to operate by
24means of accreditation: five hundred dollars ($500).

25(c) The following fees shall apply to an institution seeking
26authorization of a substantive change to its approval to operate, if
27applicable:

28(1) Processing fee for authorization of a substantive change to
29an approval to operate: five hundred dollars ($500).

30(2) Processing fee in connection with a substantive change to
31an approval to operate by means of accreditation: two hundred
32fifty dollars ($250).

33(d) (1) In addition to any fees paid to thebegin delete bureauend deletebegin insert boardend insert pursuant
34to subdivisions (a) to (c), inclusive, each institution that is approved
35to operate pursuant to this chapter shall remit both of the following:

36(A) An annual institutional fee, in an amount equal to
37three-quarters of 1 percent of the institution’s annual revenues
38derived from students in California, but not exceeding a total of
39twenty-five thousand dollars ($25,000) annually.

P48   1(B) An annual branch fee of one thousand dollars ($1,000) for
2each branch or campus of the institution operating in California.

3(2) The amount of the annual fees pursuant to paragraph (1)
4shall be proportional to thebegin delete bureau’send deletebegin insert board’send insert cost of regulating the
5institution under this chapter.

begin delete

6(e) If the bureau determines that the annual cost of providing
7oversight and review of an institution, as required by this chapter,
8is less than the amount of any fees required to be paid by that
9institution pursuant to this article, the bureau may decrease the
10fees applicable to that institution to an amount that is proportional
11to the bureau’s costs associated with that institution.

end delete
12begin insert

begin insertSEC. 70.end insert  

end insert

begin insertSection 94931.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
13to read:end insert

14

94931.5.  

(a) Thebegin delete bureauend deletebegin insert boardend insert may propose modifications to
15the fee schedule in Section 94930.5 to the Governor and the
16Legislature to add or delete categories of fees related to work
17performed by thebegin delete bureauend deletebegin insert boardend insert and propose to the Governor and
18the Legislature the maximum amount to be charged for each fee
19category added to the fee schedule. The fee schedule shall provide
20adequate resources for thebegin delete bureauend deletebegin insert boardend insert to effectively implement
21this chapter.

22(b) Thebegin delete bureauend deletebegin insert boardend insert shall annually publish a schedule of the
23current fees to be charged pursuant to this article and shall make
24this schedule available to the public.

25begin insert

begin insertSEC. 71.end insert  

end insert

begin insertSection 94932 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

94932.  

Thebegin delete bureauend deletebegin insert boardend insert shall determine an institution’s
28compliance with the requirements of this chapter. Thebegin delete bureauend delete
29begin insert boardend insert shall have the power to require reports that institutions shall
30file with thebegin delete bureauend deletebegin insert boardend insert in addition to the annual report, to send
31staff to an institution’s sites, and to require documents and
32responses from an institution to monitor compliance. When the
33begin delete bureauend deletebegin insert boardend insert has reason to believe that an institution may be out
34of compliance, it shall conduct an investigation of the institution.
35If thebegin delete bureauend deletebegin insert boardend insert determines, after completing an investigation,
36that an institution has violated any applicable law or regulation,
37thebegin delete bureauend deletebegin insert boardend insert shall take appropriate action pursuant to this
38 article.

39begin insert

begin insertSEC. 72.end insert  

end insert

begin insertSection 94932.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
40to read:end insert

P49   1

94932.5.  

(a) As part of its compliance program, thebegin delete bureauend delete
2begin insert boardend insert shall perform announced and unannounced inspections of
3institutions at least everybegin delete twoend deletebegin insert fiveend insert years.

4(b) On or before January 1,begin delete 2011end deletebegin insert 2016end insert, thebegin delete bureauend deletebegin insert boardend insert shall
5adopt regulations setting forth policies and practices to ensure that
6begin delete institutions are subject to an equal number of announced and
7unannounced inspections for each two-year periodend delete
begin insert student
8protections are the highest priority of inspections and that
9inspections are conducted based on risk and potential harm to
10studentsend insert
. The regulations shall also set forth policies and practices
11for providing notice to students enrolled at an institution of the
12results of each inspection of the institution.

13begin insert

begin insertSEC. 73.end insert  

end insert

begin insertSection 94933 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
14read:end insert

15

94933.  

Thebegin delete bureauend deletebegin insert boardend insert shall provide an institution with the
16opportunity to remedy noncompliance, impose fines, place the
17institution on probation, or suspend or revoke the institution’s
18approval to operate, in accordance with this article, as it deems
19appropriate based on the severity of an institution’s violations of
20this chapter, and the harm caused to students.

21begin insert

begin insertSEC. 74.end insert  

end insert

begin insertSection 94933.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
22to read:end insert

23

94933.5.  

As much as is practicable, thebegin delete bureauend deletebegin insert boardend insert shall
24seek to resolve instances of noncompliance, including the use of
25alternative dispute resolution procedures in Article 5 (commencing
26with Section 11420.10) of Chapter 4.5 of Part 1 of Division 3 of
27Title 2 of the Government Code.

28begin insert

begin insertSEC. 75.end insert  

end insert

begin insertSection 94934 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
29read:end insert

30

94934.  

(a) As part of the compliance program, an institution
31shall submit an annual report to thebegin delete bureauend deletebegin insert boardend insert, under penalty
32of perjury, signed by a responsible corporate officer, by July 1 of
33each year, or another date designated by thebegin delete bureauend deletebegin insert boardend insert, and it
34shall include the following information for educational programs
35offered in the reporting period:

36(1) The total number of students enrolled by level of degree or
37for a diploma.

38(2) The number of degrees, by level, and diplomas awarded.

39(3) The degree levels and diplomas offered.

P50   1(4) The Student Performance Fact Sheet, as required pursuant
2to Section 94910.

3(5) The school catalog, as required pursuant to Section 94909.

4(6) The total charges for each educational program by period
5of attendance.

6(7) A statement indicating whether the institution is, or is not,
7current in remitting Student Tuition Recovery Fund assessments.

8(8) A statement indicating whether an accrediting agency has
9taken any final disciplinary action against the institution.

10(9) Additional information deemed by thebegin delete bureauend deletebegin insert boardend insert to be
11reasonably required to ascertain compliance with this chapter.

12(b) Thebegin delete bureau, by January 1, 2011,end deletebegin insert boardend insert shall prescribe the
13annual report’s format and method of delivery.

14begin insert

begin insertSEC. 76.end insert  

end insert

begin insertSection 94935 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
15read:end insert

16

94935.  

(a) begin deleteBureau end deletebegin insertBoardend insertbegin insert end insertstaff who, during an inspection of
17an institution, detect a violation of this chapter, or regulations
18adopted pursuant to this chapter, that is a minor violation as
19determined by thebegin delete bureauend deletebegin insert boardend insert, pursuant tobegin delete regulations adopted
20by January 1, 2011,end delete
begin insert regulations,end insert shall issue a notice to comply
21before leaving the institution. Thebegin delete bureauend deletebegin insert boardend insert shall establish a
22voluntary informal appeal process, by regulation, within one year
23of the enactment of this chapter.

24(b) An institution that receives a notice to comply shall have no
25more than 30 days from the date of inspection to remedy the
26noncompliance.

27(c) Upon achieving compliance, the institution shall sign and
28return the notice to comply to thebegin delete bureauend deletebegin insert boardend insert.

29(d) A single notice to comply shall be issued listing separately
30all the minor violations cited during the inspection.

31(e) A notice to comply shall not be issued for any minor
32violation that is corrected immediately in the presence of thebegin delete bureauend delete
33begin insert boardend insert staff. Immediate compliance may be noted in the inspection
34report, but the institution shall not be subject to any further action
35by thebegin delete bureauend deletebegin insert boardend insert.

36(f) A notice to comply shall be the only means thebegin delete bureauend deletebegin insert boardend insert
37 shall use to cite a minor violation discovered during an inspection.
38Thebegin delete bureauend deletebegin insert boardend insert shall not take any other enforcement action
39specified in this chapter against an institution that has received a
P51   1notice to comply if the institution remedies the violation within
230 days from the date of the inspection.

3(g) If an institution that receives a notice to comply pursuant to
4subdivision (a) disagrees with one or more of the alleged minor
5violations listed in the notice to comply, an institution shall send
6thebegin delete bureauend deletebegin insert boardend insert a written notice of disagreement. The agency
7may take administrative enforcement action to seek compliance
8with the requirements of the notice to comply.

9(h) If an institution fails to comply with a notice to comply
10within the prescribed time, thebegin delete bureauend deletebegin insert boardend insert shall take appropriate
11administrative enforcement action.

12begin insert

begin insertSEC. 77.end insert  

end insert

begin insertSection 94936 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
13read:end insert

14

94936.  

(a) As a consequence of an investigation, and upon a
15finding that the institution has committed a violation of this chapter
16or that the institution has failed to comply with a notice to comply
17pursuant to Section 94935, thebegin delete bureauend deletebegin insert boardend insert shall issue a citation
18to an institution for violation of this chapter, or regulations adopted
19pursuant to this chapter.

20(b) The citation may contain either or both of the following:

21(1) An order of abatement that may require an institution to
22demonstrate how future compliance with this chapter or regulations
23adopted pursuant to this chapter will be accomplished.

24(2) Notwithstanding Section 125.9 of the Business and
25Professions Code, an administrative fine not to exceed five
26thousand dollars ($5,000) for each violation. Thebegin delete bureauend deletebegin insert boardend insert
27 shall base its assessment of the administrative fine on:

28(A) The nature and seriousness of the violation.

29(B) The persistence of the violation.

30(C) The good faith of the institution.

31(D) The history of previous violations.

32(E) The purposes of this chapter.

33(F) The potential harm to students.

34(c) (1) The citation shall be in writing and describe the nature
35of the violation and the specific provision of law or regulation that
36is alleged to have been violated.

37(2) The citation shall inform the institution of its right to request
38a hearing in writing within 30 days from service of the citation.

39(3) If a hearing is requested, thebegin delete bureauend deletebegin insert boardend insert shall select an
40informal hearing pursuant to Article 10 (commencing with Section
P52   111445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the
2Government Code or a formal hearing pursuant to Chapter 5
3(commencing with Section 11500) of Part 1 of Division 3 of Title
42 of the Government Code.

5(4) If a hearing is not requested, payment of the administrative
6fine is due 30 days from the date of service, and shall not constitute
7an admission of the violation charged.

8(5) If a hearing is conducted and payment of an administrative
9fine is ordered, the administrative fine is due 30 days from when
10the final order is entered.

11(6) Thebegin delete bureauend deletebegin insert boardend insert may enforce the administrative fine as if
12 it were a money judgment pursuant to Title 9 (commencing with
13Section 680.010) of Part 2 of the Code of Civil Procedure.

14(d) All administrative fines shall be deposited in the Private
15Postsecondary Education Administration Fund.

16begin insert

begin insertSEC. 78.end insert  

end insert

begin insertSection 94937 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
17read:end insert

18

94937.  

(a) As a consequence of an investigation, and upon a
19finding that an institution has committed a violation, thebegin delete bureauend delete
20begin insert boardend insert may place an institution on probation or may suspend or
21revoke an institution’s approval to operate for:

22(1) Obtaining an approval to operate by fraud.

23(2) A material violation or repeated violations of this chapter
24or regulations adopted pursuant to this chapter that have resulted
25in harm to students. For purposes of this paragraph, “material
26violation” includes, but is not limited to, misrepresentation, fraud
27in the inducement of a contract, and false or misleading claims or
28advertising, upon which a student reasonably relied in executing
29an enrollment agreement and that resulted in harm to the student.

30(b) Thebegin delete bureauend deletebegin insert boardend insert shall adopt regulationsbegin delete, within one year
31of the enactment of this chapter,end delete
governing probation and
32suspension of an approval to operate.

33(c) Thebegin delete bureauend deletebegin insert boardend insert may seek reimbursement pursuant to
34Section 125.3 of the Business and Professions Code.

35(d) An institution shall not be required to pay the cost of
36investigation to more than one agency.

37begin insert

begin insertSEC. 79.end insert  

end insert

begin insertSection 94938 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

39

94938.  

(a) If thebegin delete bureauend deletebegin insert boardend insert determines that it needs to make
40an emergency decision to protect students, prevent
P53   1misrepresentation to the public, or prevent the loss of public funds
2or moneys paid by students, it may do so pursuant to Article 13
3(commencing with Section 11460.10) of Chapter 4.5 of Part 1 of
4Division 3 of Title 2 of the Government Code.

5(b) Thebegin delete bureauend deletebegin insert boardend insert shall begin delete, by January 1, 2011,end delete adopt
6regulations to give this section effect pursuant to Section 11460.20
7of the Government Code.

8begin insert

begin insertSEC. 80.end insert  

end insert

begin insertSection 94939 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
9read:end insert

10

94939.  

(a) Thebegin delete bureauend deletebegin insert boardend insert may bring an action for equitable
11relief for any violation of this chapter. The equitable relief may
12include restitution, a temporary restraining order, the appointment
13of a receiver, and a preliminary or permanent injunction. The action
14may be brought in the county in which the defendant resides or in
15which any violation has occurred or may occur.

16(b) The remedies provided in this section supplement, and do
17not supplant, the remedies and penalties under other provisions of
18law.

19begin insert

begin insertSEC. 81.end insert  

end insert

begin insertSection 94941 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

94941.  

(a) An individual who has cause to believe that an
22institution has violated this chapter, or regulations adopted pursuant
23to this chapter, may file a complaint with thebegin delete bureauend deletebegin insert boardend insert against
24the institution. The complaint shall set forth the alleged violation,
25and shall contain any other information as may be required by the
26begin delete bureauend deletebegin insert boardend insert.

27(b) Taking into account the nature and seriousness of the alleged
28violation, thebegin delete bureauend deletebegin insert boardend insert shall take action to ascertain the facts
29and to verify the complaint. The action may include interviewing
30institution management, conducting an investigation, holding an
31informal hearing, or other appropriate investigative activity.

32(c) Upon the facts discovered, thebegin delete bureauend deletebegin insert boardend insert shall take
33appropriate administrative enforcement action.

34(d) If thebegin delete bureauend deletebegin insert boardend insert finds that an institution’s violation of
35this chapter has caused damage or loss to a student or group of
36students, thebegin delete bureauend deletebegin insert boardend insert shall order the institution to provide
37appropriate restitution to that student or group of students.

begin insert

38(e) The board shall establish a timeline by which complaints
39filed pursuant to this section shall be processed and establish
40procedures to prioritize complaints as follows:

end insert
begin insert

P54   1(1) “Urgent complaints” represent complaints regarding an
2immediate danger to the public health, safety, or welfare, and the
3board shall give these complaints the highest priority.

end insert
begin insert

4(2) “High-priority complaints” include complaints that could
5potentially pose a danger, but pose no immediate danger, to the
6public health, safety, or welfare. The board shall give high priority
7complaints less priority than urgent complaints but more priority
8than routine complaints.

end insert
begin insert

9(3) “Routine complaints” are complaints that do not pose any
10significant risk of harm to the public health, safety, or welfare.

end insert
11begin insert

begin insertSEC. 82.end insert  

end insert

begin insertSection 94942 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
12read:end insert

13

94942.  

(a) Thebegin delete bureauend deletebegin insert boardend insert shall establish a toll-free
14telephone number staffed by abegin delete bureauend deletebegin insert boardend insert employee by which
15a student or a member of the public may file a complaint under
16this chapter.

17(b) Thebegin delete bureauend deletebegin insert boardend insert shall make a complaint form available on
18its Internet Web site. Thebegin delete bureauend deletebegin insert boardend insert shall permit students and
19members of the public to file a complaint under this chapter
20through thebegin delete bureau’send deletebegin insert board’send insert Internet Web site.

21begin insert

begin insertSEC. 83.end insert  

end insert

begin insertSection 94943 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
22read:end insert

23

94943.  

The following violations of this chapter are public
24offenses:

25(a) Knowingly operating a private postsecondary institution
26without an approval to operate is an infraction subject to the
27procedures described in Sections 19.6 and 19.7 of the Penal Code.

28(b) Knowingly providing false information to thebegin delete bureauend deletebegin insert boardend insert
29 on an application for an approval to operate is an infraction subject
30to the procedures described in Sections 19.6 and 19.7 of the Penal
31Code.

32(c) Knowingly submitting, to thebegin delete bureauend deletebegin insert boardend insert, false information
33that is required to be reported pursuant to Article 16 (commencing
34with Section 94928) is an infraction subject to the procedures
35described in Sections 19.6 and 19.7 of the Penal Code.

36begin insert

begin insertSEC. 84.end insert  

end insert

begin insertSection 94943.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

94943.5.  

An institution shall designate and maintain an agent
39for service of process within this state, and provide the name,
40address, and telephone number of the agent to thebegin delete bureauend deletebegin insert boardend insert.
P55   1Thebegin delete bureauend deletebegin insert boardend insert shall furnish the agent’s name, address, and
2telephone number to a person upon request.

3begin insert

begin insertSEC. 85.end insert  

end insert

begin insertSection 94944 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
4read:end insert

5

94944.  

Notwithstanding any other provision of law, thebegin delete bureauend delete
6begin insert boardend insert shall cite any person, and that person shall be subject to a
7fine not to exceed fifty thousand dollars ($50,000), for operating
8an institution without proper approval to operate issued by the
9begin delete bureauend deletebegin insert boardend insert pursuant to this chapter.

10begin insert

begin insertSEC. 86.end insert  

end insert

begin insertSection 94944.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

94944.5.  

Each institution subject to this chapter shall be deemed
13to have authorized its accrediting agency to provide thebegin delete bureauend delete
14begin insert boardend insert, the Attorney General, any district attorney, city attorney,
15or the Student Aid Commission, within 30 days of written notice,
16copies of all documents and other material concerning the
17institution that are maintained by the accrediting agency.

18begin insert

begin insertSEC. 87.end insert  

end insert

begin insertSection 94944.6 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

94944.6.  

Within 30 days of receiving a written notice from the
21begin delete bureauend deletebegin insert boardend insert, the Attorney General, district attorney, city attorney,
22or the Student Aid Commission pursuant to Section 94944.5, an
23accrediting agency shall provide the requesting entity with all
24documents or other material concerning an institution accredited
25by that agency that are designated specifically or by category in
26the written notice.

27begin insert

begin insertSEC. 88.end insert  

end insert

begin insertSection 94945 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
28read:end insert

29

94945.  

(a) This chapter does not limit or preclude the
30enforcement of rights or remedies under any other applicable statute
31or law.

32(b) This chapter does not limit or preclude the Attorney General,
33a district attorney, or a city attorney from taking any action
34otherwise authorized under any other applicable statute or law.

begin insert

35(c) If the board has reason to believe that an institution’s
36noncompliance with the provisions of this chapter or any other
37applicable law significantly transcends the interests of the
38individual complainant, or the board has determined that the
39complexity of the case requires additional expertise and resources,
P56   1the board shall contract with the Attorney General for investigative
2and prosecutorial services.

end insert
3begin insert

begin insertSEC. 89.end insert  

end insert

begin insertSection 94948 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
4read:end insert

5

94948.  

In addition to any other reporting requirements under
6this chapter, thebegin delete bureauend deletebegin insert boardend insert shall provide regular updates to the
7Legislature by participating in annual oversight hearings conducted
8by the appropriate policy committees and budget subcommittees
9of the Senate and Assembly. The updates shall describe the
10begin delete bureau’send deletebegin insert board’send insert progress in adopting and enforcing regulations
11and the provisions of this chapter.

12begin insert

begin insertSEC. 90.end insert  

end insert

begin insertSection 94949 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
13

94949.  

(a) On or before October 1, 2013, the Legislative
14Analyst’s Office shall report to the Legislature and the Governor
15on the appropriateness of the exemptions provided in this chapter,
16with particular attention to the exemptions provided by Article 4
17(commencing with Section 94874) that are based on accreditation.
18The report shall examine and make recommendations regarding
19the degree to which regional and national accrediting agencies
20provide oversight of institutions and protection of student interests,
21whether that oversight results in the same level of protection of
22students as provided by this chapter, and whether the exemptions
23provided in Article 4 (commencing with Section 94874) that are
24based on accreditation should be continued, adjusted, or removed.

25(b) (1) On or before August 1, 2013, the bureau shall contract
26with the California State Auditor’s Office to conduct a performance
27audit to evaluate the effectiveness and efficiency of the bureau’s
28operations, consistent with the requirements of this chapter, and
29the California State Auditor’s Office shall report the results of that
30audit to the Legislature and the Governor.

31(2) The performance audit required by paragraph (1) shall
32include, but shall not be limited to, an evaluation of all of the
33following:

34(A) The Student Tuition Recovery Fund, including the adequacy
35of its balance; the quality, timeliness, and consistency of claims
36 processing; and the degree to which it has been, or will be, able
37to reimburse tuition for students.

38(B) The bureau’s enforcement program, including the means
39by which the bureau makes students and school employees aware
40of their ability to file complaints; the average time for investigating
P57   1complaints; the standards for referring complaints to investigation;
2the average time to complete investigations; the adequacy of the
3bureau’s inspections; the bureau’s record of imposing discipline;
4the bureau’s record of initiating investigations based upon publicly
5available information; the bureau’s record of coordinating with
6law enforcement and public prosecutors; and whether the bureau
7has the enforcement resources necessary to protect consumers and
8ensure a fair and prompt resolution of complaints and investigations
9for both students and institutions.

10(C) The bureau’s efforts with respect to, and extent of institution
11compliance with, the public and student disclosure requirements
12of this chapter.

13(D) Whether the bureau’s staffing level and expertise are
14sufficient to fulfill its statutory responsibilities.

15(c) Bureau staff and management shall cooperate with the
16Legislative Analyst’s Office and the California State Auditor’s
17Office and shall provide those agencies with access to data, case
18files, employees, and information as those agencies may, in their
19discretion, require for the purposes of this section.

end delete
20begin insert

begin insertSEC. 91.end insert  

end insert

begin insertSection 94949 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
21read:end insert

begin insert
22

begin insert94949.end insert  

(a) The board shall contract for an independent review
23of its staffing resources, and provide the Legislature a copy of this
24review along with an overview of how the board intends to ensure
25its staff are sufficiently qualified for purposes of implementing the
26provisions of this chapter, within 30 days of the completion of the
27independent review.

28(b) (1) A report to be submitted pursuant to subdivision (a)
29shall be submitted in compliance with Section 9795 of the
30Government Code.

31(2) Pursuant to Section 10231.5 of the Government Code, this
32section is repealed on January 1, 2019.

end insert
33

begin deleteSECTION 1.end delete
34begin insertSEC. 92.end insert  

Section 94950 of the Education Code is amended to
35read:

36

94950.  

This chapter shall remain in effect only until January
371,begin delete 2019end deletebegin insert 2017end insert, and as of that date is repealed, unless a later enacted
38statute, that is enacted before January 1,begin delete 2019end deletebegin insert 2017end insert, deletes or
39extends that date.

P58   1

begin deleteSEC. 2.end delete
2begin insertSEC. 93.end insert  

No reimbursement is required by this act pursuant to
3Section 6 of Article XIII B of the California Constitution because
4the only costs that may be incurred by a local agency or school
5district will be incurred because this act creates a new crime or
6infraction, eliminates a crime or infraction, or changes the penalty
7for a crime or infraction, within the meaning of Section 17556 of
8the Government Code, or changes the definition of a crime within
9the meaning of Section 6 of Article XIII B of the California
10Constitution.



O

    98