BILL NUMBER: AB 773	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Block

                        FEBRUARY 17, 2011

   An act to  amend Section 94874.1 of, and to  add Section
94923.1 to  , the Education Code, relating to postsecondary
education.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 773, as amended, Block. Postsecondary education: Student
Tuition Recovery Fund.
   The California Private Postsecondary Education Act of 2009 
(the act)  requires the Bureau for Private Postsecondary
Education, by January 1, 2011, to adopt regulation procedures
governing the administration and maintenance of the Student Tuition
Recovery Fund, including requirements relating to assessments on
students and student claims against the Student Tuition Recovery
Fund. 
   Existing law provides that an institution that is accredited by a
regional accrediting agency that is recognized by the United States
Department of Education, and is not an agency holding specified
accreditation, is exempt from the provisions related to the act
except for the Student Tuition Recovery Fund.  
   This bill would provide that the bureau may revoke this exemption
if it finds that an institution has failed to comply with the
provisions related to the Student Tuition Recovery Fund. 
   This bill would require the bureau to adopt  ,  by
regulation, requirements relating to assessments on students that are
paid by an institution on behalf of the student.  The
regulations authorized by the bill would allow institutions to pay
the assessments, as specified, and would require the paying
institution to adequately inform students of their rights and
responsibilities under the fund and would further institutions do not
engage in inappropriate marketing or   advertising, as
specified. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 94874.1 of the  
Education Code   is amended to read: 
   94874.1.  (a) An institution that is accredited by a regional
accrediting agency that is recognized by the United States Department
of Education, and is not an agency described in subdivision (i) of
Section 94874, is exempt from this chapter, except Article 14
(commencing with Section 94923). 
   (b) The bureau may revoke an exemption provided in subdivision (a)
if it finds that an institution has failed to comply with Article 14
(commencing with Section 94923).  
   (b) 
    (c)  This section shall remain in effect only until
January 1, 2016, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2016, deletes or
extends that date.
   SECTION 1.   SEC. 2.   Section 94923.1
is added to the Education Code, to read:
   94923.1.  The bureau shall adopt by  regulation,
requirements relating to assessments on students paid by an
institution on behalf of the student.   regulation a
process allowing institutions to pay assessments on behalf of their
students. For institutions choosing to pay assessments on behalf of
their students, the bureau shall adopt additional regulations
ensuring that students are adequately informed by the institution of
their rights and responsibilities under the fund and requirements
that ensure institutions do not engage in inappropriate marketing or
advertising with regard to their payment of the assessment to the
fund on behalf   of their students.