BILL NUMBER: AB 1889	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Higher Education (Portantino (Chair),
Block, Cook, Fong, Galgiani, Huber, Ma, and Ruskin)

                        FEBRUARY 16, 2010

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1889, as introduced, Committee on Higher Education. Private
postsecondary education: California Private Postsecondary Education
Act of 2009: cancellations and refunds.
   Existing law establishes the California Private Postsecondary
Education Act of 2009, which, among other things, provides for
student protections and regulatory oversight of private postsecondary
schools in the state. The act requires specified private
postsecondary institutions to refund 100% of the amount paid for
institutional charges, less specified expenses, if notice of
cancellation is made through attendance at the first class session,
or the 7th class day after enrollment, whichever is later.
   This bill would change the 2nd deadline for notice of cancellation
from the 7th class day after enrollment, to the 7th day after
enrollment.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 94920 of the Education Code is amended to read:

   94920.  An institution that does not participate in the federal
student financial aid programs shall do all of the following:
   (a) The institution shall advise each student that a notice of
cancellation shall be in writing, and that a withdrawal may be
effectuated by the student's written notice or by the student's
conduct, including, but not necessarily limited to, a student's lack
of attendance.
   (b) Institutions shall refund 100 percent of the amount paid for
institutional charges, less a reasonable deposit or application fee
not to exceed two hundred fifty dollars ($250), if notice of
cancellation is made through attendance at the first class session,
or the seventh  class  day after enrollment,
whichever is later.
   (c) The bureau may adopt by regulation a different method of
calculation for instruction delivered by other means, including, but
not necessarily limited to, distance education.
   (d) The institution shall have a refund policy for the return of
unearned institutional charges if the student cancels an enrollment
agreement or withdraws during a period of attendance. The refund
policy for students who have completed 60 percent or less of the
period of attendance shall be a pro rata refund.
   (e) The institution shall pay or credit refunds within 45 days of
a student's cancellation or withdrawal.