BILL NUMBER: SB 498 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Liu
FEBRUARY 17, 2011
An act to amend Sections 27, 101, and 149 of the Business and
Professions Code, and to amend Sections 94800.5, 94806, 94807, 94820,
94875, 94876, 94877, 94878, 94909, 94910, 94911, 94936, 94937, and
95000 of, to repeal Section 94884 of, and to repeal and add Section
94803 of, the Education Code, relating to private postsecondary
education.
LEGISLATIVE COUNSEL'S DIGEST
SB 498, as introduced, Liu. Bureau for Private Postsecondary
Education: Successorship.
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. Existing law establishes the Bureau for
Private Postsecondary Education within the Department of Consumer
Affairs to regulate private postsecondary institutions through the
powers granted, and the duties imposed, by the act.
Existing law establishes the California Postsecondary Education
Commission as the statewide postsecondary education coordinating and
planning agency and provides for its functions and responsibilities.
This bill would abolish the Bureau for Private Postsecondary
Education, and would transfer the bureau's powers and duties under
the act to the California Postsecondary Education Commission. The
bill would require the commission to adopt the regulations of the
bureau and, by January 1, 2013, to revise the regulations in
accordance with specified procedures. The bill would make various
conforming changes to existing law.
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 27 of the Business and Professions Code is
amended to read:
27. (a) Each entity specified in subdivision (b) shall provide on
the Internet information regarding the status of every license
issued by that entity in accordance with the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) and the Information Practices Act
of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of
Part 4 of Division 3 of the Civil Code). The public information to be
provided on the Internet shall include information on suspensions
and revocations of licenses issued by the entity and other related
enforcement action taken by the entity relative to persons,
businesses, or facilities subject to licensure or regulation by the
entity. In providing information on the Internet, each entity shall
comply with the Department of Consumer Affairs Guidelines for Access
to Public Records. The information may not include personal
information, including home telephone number, date of birth, or
social security number. Each entity shall disclose a licensee's
address of record. However, each entity shall allow a licensee to
provide a post office box number or other alternate address, instead
of his or her home address, as the address of record. This section
shall not preclude an entity from also requiring a licensee, who has
provided a post office box number or other alternative mailing
address as his or her address of record, to provide a physical
business address or residence address only for the entity's internal
administrative use and not for disclosure as the licensee's address
of record or disclosure on the Internet.
(b) Each of the following entities within the Department of
Consumer Affairs shall comply with the requirements of this section:
(1) The Acupuncture Board shall disclose information on its
licensees.
(2) The Board of Behavioral Sciences shall disclose information on
its licensees, including marriage and family therapists, licensed
clinical social workers, and licensed educational psychologists.
(3) The Dental Board of California shall disclose information on
its licensees.
(4) The State Board of Optometry shall disclose information
regarding certificates of registration to practice optometry,
statements of licensure, optometric corporation registrations, branch
office licenses, and fictitious name permits of its licensees.
(5) The Board for Professional Engineers and Land Surveyors shall
disclose information on its registrants and licensees.
(6) The Structural Pest Control Board shall disclose information
on its licensees, including applicators, field representatives, and
operators in the areas of fumigation, general pest and wood
destroying pests and organisms, and wood roof cleaning and treatment.
(7) The Bureau of Automotive Repair shall disclose information on
its licensees, including auto repair dealers, smog stations, lamp and
brake stations, smog check technicians, and smog inspection
certification stations.
(8) The Bureau of Electronic and Appliance Repair shall disclose
information on its licensees, including major appliance repair
dealers, combination dealers (electronic and appliance), electronic
repair dealers, service contract sellers, and service contract
administrators.
(9) The Cemetery and Funeral Bureau shall disclose information on
its licensees, including cemetery brokers, cemetery salespersons,
cemetery managers, crematory managers, cemetery authorities,
crematories, cremated remains disposers, embalmers, funeral
establishments, and funeral directors.
(10) The Professional Fiduciaries Bureau shall disclose
information on its licensees.
(11) The Contractors' State License Board shall disclose
information on its licensees in accordance with Chapter 9 (commencing
with Section 7000) of Division 3. In addition to information related
to licenses as specified in subdivision (a), the board shall also
disclose information provided to the board by the Labor Commissioner
pursuant to Section 98.9 of the Labor Code.
(12) The Board of Psychology shall disclose information on its
licensees, including psychologists, psychological assistants, and
registered psychologists.
(13) The Bureau for Private Postsecondary Education shall disclose
information on private postsecondary institutions under its
jurisdiction, including disclosure of notices to comply issued
pursuant to Section 94935 of the Education Code.
(c) "Internet" for the purposes of this section has the meaning
set forth in paragraph (6) of subdivision (e) of Section 17538.
SEC. 2. Section 101 of the Business and Professions Code is
amended to read:
101. The department is comprised of:
(a) The Dental Board of California.
(b) The Medical Board of California.
(c) The State Board of Optometry.
(d) The California State Board of Pharmacy.
(e) The Veterinary Medical Board.
(f) The California Board of Accountancy.
(g) The California Architects Board.
(h) The Bureau of Barbering and Cosmetology.
(i) The Board for Professional Engineers and Land Surveyors.
(j) The Contractors' State License Board.
(k) The Bureau for Private Postsecondary Education.
(l)
(k) The Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation.
(m)
(l) The Board of Registered Nursing.
(n)
(m) The Board of Behavioral Sciences.
(o)
(n) The State Athletic Commission.
(p)
(o) The Cemetery and Funeral Bureau.
(q)
(p) The State Board of Guide Dogs for the Blind.
(r)
(q) The Bureau of Security and Investigative Services.
(s)
(r) The Court Reporters Board of California.
(t)
(s) The Board of Vocational Nursing and Psychiatric
Technicians.
(u)
(t) The Landscape Architects Technical Committee.
(v)
(u) The Division of Investigation.
(w)
(v) The Bureau of Automotive Repair.
(x)
(w) The Respiratory Care Board of California.
(y)
(x) The Acupuncture Board.
(z)
(y) The Board of Psychology.
(aa)
(z) The California Board of Podiatric Medicine.
(ab)
(aa) The Physical Therapy Board of California.
(ac)
(ab) The Arbitration Review Program.
(ad)
(ac) The Physician Assistant Committee.
(ae)
(ad) The Speech-Language Pathology and Audiology Board.
(af)
(ae) The California Board of Occupational Therapy.
(ag)
(af) The Osteopathic Medical Board of California.
(ah)
(ag) The Naturopathic Medicine Committee.
(ai)
(ah) The Dental Hygiene Committee of California.
(aj)
(ai) The Professional Fiduciaries Bureau.
(ak)
(aj) Any other boards, offices, or officers subject to
its jurisdiction by law.
SEC. 3. Section 149 of the Business and Professions Code is
amended to read:
149. (a) If, upon investigation, an agency designated in
subdivision (e) has probable cause to believe that a person is
advertising in a telephone directory with respect to the offering or
performance of services, without being properly licensed by or
registered with the agency to offer or perform those services, the
agency may issue a citation under Section 148 containing an order of
correction that requires the violator to do both of the following:
(1) Cease the unlawful advertising.
(2) Notify the telephone company furnishing services to the
violator to disconnect the telephone service furnished to any
telephone number contained in the unlawful advertising.
(b) This action is stayed if the person to whom a citation is
issued under subdivision (a) notifies the agency in writing that he
or she intends to contest the citation. The agency shall afford an
opportunity for a hearing, as specified in Section 125.9.
(c) If the person to whom a citation and order of correction is
issued under subdivision (a) fails to comply with the order of
correction after that order is final, the agency shall inform the
Public Utilities Commission of the violation and the Public Utilities
Commission shall require the telephone corporation furnishing
services to that person to disconnect the telephone service furnished
to any telephone number contained in the unlawful advertising.
(d) The good faith compliance by a telephone corporation with an
order of the Public Utilities Commission to terminate service issued
pursuant to this section shall constitute a complete defense to any
civil or criminal action brought against the telephone corporation
arising from the termination of service.
(e) Subdivision (a) shall apply to the following boards, bureaus,
committees, commissions, or programs:
(1) The Bureau of Barbering and Cosmetology.
(2) The Cemetery and Funeral Bureau.
(3) The Veterinary Medical Board.
(4) The Landscape Architects Technical Committee.
(5) The California Board of Podiatric Medicine.
(6) The Respiratory Care Board of California.
(7) The Bureau of Electronic and Appliance Repair, Home
Furnishings, and Thermal Insulation.
(8) The Bureau of Security and Investigative Services.
(9) The Bureau of Automotive Repair.
(10) The California Architects Board.
(11) The Speech-Language Pathology and Audiology Board.
(12) The Board for Professional Engineers and Land Surveyors.
(13) The Board of Behavioral Sciences.
(14) The Structural Pest Control Board within the Department of
Pesticide Regulation.
(15) The Acupuncture Board.
(16) The Board of Psychology.
(17) The California Board of Accountancy.
(18) The Naturopathic Medicine Committee.
(19) The Physical Therapy Board of California.
(20) The Bureau for Private Postsecondary Education.
SEC. 4. Section 94800.5 of the Education Code is amended to read:
94800.5. Whenever a reference is made to the former Private
Postsecondary Education and Student Protection Act, the former
Private Postsecondary and Vocational Education Reform Act of 1989, or
the former Chapter 7 (commencing with Section 94700) of Part 59 of
Division 10 of Title 3 of the Education Code, as it read on June 30,
2007, by the provisions of any statute or regulation, it shall be
construed as referring to the provisions of this chapter. Whenever a
reference is made to the former Bureau for Private Postsecondary and
Vocational Education or the Bureau for Private Postsecondary
Education by the provisions of any statute or regulation, it
shall be construed as referring to the Bureau for Private
Postsecondary Education California Postsecondary
Education Commission .
SEC. 5. Section 94803 of the Education Code is repealed.
94803. The bureau shall, by emergency regulation, amend, and
repeal as necessary, the regulations, as they read on June 30, 2007,
in Division 7.5 (commencing with Section 70000) of Title 5 of the
California Code of Regulations, to conform to this chapter no later
than February 1, 2010. These emergency regulations shall become
permanent through the regular rulemaking process within one year of
the enactment of this chapter.
SEC. 6. Section 94803 is added to the Education Code, to read:
94803. (a) The commission, by emergency regulation, shall adopt
the regulations of the former Bureau for Private Postsecondary
Education, as those regulations read on December 31, 2011.
(b) On or before January 1, 2013, the commission shall amend, and
repeal as necessary, the regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The commission shall ensure that the amended
regulations are consistent with federal law and regulations governing
private postsecondary education and financial aid.
SEC. 7. Section 94806 of the Education Code is amended to read:
94806. The Private Postsecondary and Vocational Education
Administration Fund established by former Section 94932 of the
Education Code, and extended by Chapter 635 of the Statutes of 2007,
is continued in existence under the administration of the
commission , and is renamed the Private Postsecondary Education
Administration Fund.
SEC. 8. Section 94807 of the Education Code is amended to read:
94807. The Student Tuition Recovery Fund established by former
Section 94944 of the Education Code, and extended by Chapter 635 of
the Statutes of 2007, is continued in existence under the
administration of the commission .
SEC. 9. Section 94820 of the Education Code is amended to read:
94820. "Bureau" or "commission" means the
Bureau for Private Postsecondary Education in the Department of
Consumer Affairs California Postsecondary Education
Commission .
SEC. 10. Section 94875 of the Education Code is amended to read:
94875. The Bureau for Private Postsecondary Education, as
established by Section 6 of Chapter 635 of the Statutes of 2007, is
continued in existence and shall commence operations. This chapter
establishes the functions and responsibilities of the bureau, for the
purposes of Section 6 of Chapter 635 of the Statutes of 2007. The
bureau
94875. (a) The Bureau for Private Postsecondary
Education, which was established by Section 6 of Chapter 635 of the
Statutes of 2007 and continued in existence pursuant to Section 6 of
Chapter 310 of the Statutes of 2009 within the Department of Consumer
Affairs, is hereby abolished.
(b) The California Postsecondary Education Commission is the
successor to, and shall assume from, the Bureau for Private
Postsecondary Education all of the administrative rights, abilities,
obligations, and duties of the Bureau for Private Postsecondary
Education under this chapter. The commission shall have possession
and control of all moneys, funds, appropriations, records, papers,
contracts, licenses, and agreements connected with the administration
of this chapter.
(c) An employee of the Bureau for Private Postsecondary Education
who is performing a function transferred to the California
Postsecondary Education Commission and who is serving in the state
civil service, other than as a temporary employee, shall be
transferred to the commission. The status, position, and rights of an
employee shall not be affected by the transfer and shall be retained
by the person as an employee of the commission pursuant to the State
Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code), except as to a
position that is exempt from civil service.
(d) The commission shall regulate
private postsecondary educational institutions through the powers
granted, and duties imposed, by this chapter. In exercising its
powers, and performing its duties, the protection of the public shall
be the bureau's commission's highest
priority. If protection of the public is inconsistent with other
interests sought to be promoted, the protection of the public shall
be paramount.
SEC. 11. Section 94876 of the Education Code is amended to read:
94876. (a) The powers and duties set forth in this chapter are
vested in the Director of Consumer Affairs, who
commission, which may delegate them to a bureau
chief an executive officer , subject to
the provisions of this section.
(b) The bureau chief executive officer
shall be appointed by the Governor, subject to confirmation by
the Senate, and is exempt from the State Civil Service Act pursuant
to Part 2 (commencing with Section 18500) of Division 5 of Title 2 of
the Government Code.
(c) Each power granted to, or duty imposed upon, the
bureau commission under this chapter shall be
exercised and performed in the name of the bureau
commission , subject to any conditions and limitations
the director that the commission may
prescribe. The bureau chief executive officer
may delegate any powers or duties to a designee.
(d) As may be necessary to carry out this chapter, the
director commission , in accordance with the
State Civil Service Act, may appoint and fix the compensation of
personnel.
SEC. 12. Section 94877 of the Education Code is amended to read:
94877. (a) The bureau On or before
January 1, 2013, and consistent with Section 94803, the commission
shall adopt, on or before January 1, 2011,
and shall enforce, regulations to implement this chapter pursuant to
the Administrative Procedure Act in Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code.
(b) The bureau commission shall
develop and implement an enforcement program, pursuant to Article 18
(commencing with Section 94932) to implement this chapter. The
enforcement program shall include a plan for investigating complaints
filed with the bureau commission .
(c) The bureau commission shall
establish a program to proactively identify unlicensed institutions,
identify material or repeated violations of this chapter and
regulations implementing this chapter, and take all appropriate legal
action.
SEC. 13. Section 94878 of the Education Code is amended to read:
94878. (a) On or before June 30, 2010, the bureau
The commission shall establish an Internet Web
site that includes at least all of the following information:
(1) An explanation of the bureau's transition plan for
the reconstituted bureau and an explanation of the bureau's
commission's scope of authority under this
chapter .
(2) (A) A directory of approved institutions, and a link, if
feasible, to the Internet Web site of each institution.
(B) For each institution, the directory shall be developed in a
manner that allows the user to search by institution and shall
include all of the following information:
(i) The status of the institution's approval to operate.
(ii) The information provided by the institutions including, but
not limited to, the annual report, as required by Section 94934,
including the school catalog and the Student Performance Fact Sheet.
The Student Performance Fact Sheet shall be maintained on the
directory for at least five years after the date of its submission to
the bureau commission .
(iii) The disciplinary history of the institution, which shall
include, but shall not be limited to, all of the following:
(I) Pending formal accusations filed by the bureau
commission .
(II) Suspensions, revocations, citations, fines, infractions,
probations, pending litigation filed by the bureau
commission , and final judgments resulting from
litigation filed by the bureau commission
.
(III) Pending or final criminal cases filed by the Attorney
General, a city attorney, a district attorney, or a federal law
enforcement official, of which the bureau
commission has received notice.
(IV) Final administrative actions by the United State Department
of Education, including orders requiring restitution to students.
(V) Final disciplinary actions by an accreditation agency, of
which the bureau commission has
received notice pursuant to Section 94934.
(b) The bureau commission shall
maintain the Internet Web site described in subdivision (a). The
bureau commission shall ensure that the
information specified in subdivision (a) is kept current. The
bureau commission shall update the
Internet Web site at least annually, to coincide with the submission
of annual reports by the institutions pursuant to Section 94934.
(c) In addition to maintaining the Internet Web site described in
subdivision (a), the bureau shall provide the information described
in paragraph (2) of subdivision (a) to the California Postsecondary
Education Commission (CPEC), and the CPEC shall include that
information in an Internet Web site directory of school performance
data maintained by the CPEC. To the extent possible, the bureau shall
provide this information consistent with the information collected
for reporting to the Integrated Postsecondary Education Data System
of the United States Department of Education, including institutional
characteristics, completion, annual enrollment, and graduation
rates.
SEC. 14. Section 94884 of the Education Code is repealed.
94884. The bureau is subject to Section 27 of the Business and
Professions Code.
SEC. 15. Section 94909 of the Education Code is amended to read:
94909. (a) Prior to enrollment, an institution shall provide a
prospective student, either in writing or electronically, with a
school catalog containing, at a minimum, all of the following:
(1) The name, address, telephone number, and, if applicable,
Internet Web site address of the institution.
(2) Except as specified in Article 2 (commencing with Section
94802), a statement that the institution is a private institution and
that it is approved to operate by the bureau
commission .
(3) The following statements:
(A) "Any questions a student may have regarding this catalog that
have not been satisfactorily answered by the institution may be
directed to the Bureau for Private Postsecondary Education
California Postsecondary Education Commission at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
(B) "As a prospective student, you are encouraged to review this
catalog prior to signing an enrollment agreement. You are also
encouraged to review the School Performance Fact Sheet, which must be
provided to you prior to signing an enrollment agreement."
(C) "A student or any member of the public may file a complaint
about this institution with the Bureau for Private
Postsecondary Education California Postsecondary
Education Commission by calling (toll-free telephone number) or
by completing a complaint form, which can be obtained on the
bureau's commission's Internet Web site
(Internet Web site address)."
(4) The address or addresses where class sessions will be held.
(5) A description of the programs offered and a description of the
instruction provided in each of the courses offered by the
institution, the requirements for completion of each program,
including required courses, any final tests or examinations, any
required internships or externships, and the total number of credit
hours, clock hours, or other increments required for completion.
(6) If the educational program is designed to lead to positions in
a profession, occupation, trade, or career field requiring licensure
in this state, a notice to that effect and a list of the
requirements for eligibility for licensure.
(7) Information regarding the faculty and their qualifications.
(8) A detailed description of institutional policies in the
following areas:
(A) Admissions policies, including the institution's policies
regarding the acceptance of credits earned at other institutions or
through challenge examinations and achievement tests, admissions
requirements for ability-to-benefit students, and a list describing
any transfer or articulation agreements between the institution and
any other college or university that provides for the transfer of
credits earned in the program of instruction. If the institution has
not entered into an articulation or transfer agreement with any other
college or university, the institution shall disclose that fact.
(B) Cancellation, withdrawal, and refund policies, including an
explanation that the student has the right to cancel the enrollment
agreement and obtain a refund of charges paid through attendance at
the first class session, or the seventh day after enrollment,
whichever is later. The text shall also include a description of the
procedures that a student is required to follow to cancel the
enrollment agreement or withdraw from the institution and obtain a
refund consistent with the requirements of Article 13 (commencing
with Section 94919).
(C) Probation and dismissal policies.
(D) Attendance policies.
(E) Leave-of-absence policies.
(9) The schedule of total charges for a period of attendance and
an estimated schedule of total charges for the entire educational
program.
(10) A statement reporting whether the institution participates in
federal and state financial aid programs, and if so, all consumer
information that is required to be disclosed to the student pursuant
to the applicable federal and state financial aid programs.
(11) A statement specifying that, if a student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund, and that, if the student has received
federal student financial aid funds, the student is entitled to a
refund of the moneys not paid from federal student financial aid
program funds.
(12) A statement specifying whether the institution has a pending
petition in bankruptcy, is operating as a debtor in possession, has
filed a petition within the preceding five years, or has had a
petition in bankruptcy filed against it within the preceding five
years that resulted in reorganization under Chapter 11 of the United
States Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.).
(13) If the institution provides placement services, a description
of the nature and extent of the placement services.
(14) A description of the student's rights and responsibilities
with respect to the Student Tuition Recovery Fund. This statement
shall specify that it is a state requirement that a student who pays
his or her tuition is required to pay a state-imposed assessment for
the Student Tuition Recovery Fund. This statement shall also describe
the purpose and operation of the Student Tuition Recovery Fund and
the requirements for filing a claim against the Student Tuition
Recovery Fund.
(15) The following statement:
"NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED
AT OUR INSTITUTION
The transferability of credits you earn at (name of institution) is
at the complete discretion of an institution to which you may seek
to transfer. Acceptance of the (degree, diploma, or certificate) you
earn in (name of
educational program) is also at the complete discretion of the
institution to which you may seek to transfer. If the (credits or
degree, diploma, or certificate) that you earn at this institution
are not accepted at the institution to which you seek to transfer,
you may be required to repeat some or all of your coursework at that
institution. For this reason you should make certain that your
attendance at this institution will meet your educational goals. This
may include contacting an institution to which you may seek to
transfer after attending (name of institution) to determine if your
(credits or degree, diploma or certificate) will transfer."
(b) If the institution has a general student brochure, the
institution shall provide that brochure to the prospective student
prior to enrollment. In addition, if the institution has a
program-specific student brochure for the program in which the
prospective student seeks to enroll, the institution shall provide
the program-specific student brochure to the prospective student
prior to enrollment.
(c) An institution shall provide the school catalog to any person
upon request. In addition, if the institution has student brochures,
the institution shall disclose the requested brochures to any
interested person upon request.
SEC. 16. Section 94910 of the Education Code is amended to read:
94910. Prior to enrollment, an institution shall provide a
prospective student with a School Performance Fact Sheet containing,
at a minimum, the following information, as it relates to the
educational program:
(a) Completion rates, as calculated pursuant to Article 16
(commencing with Section 94928).
(b) Placement rates, as calculated pursuant to Article 16
(commencing with Section 94928), if the educational program is
designed to lead to, or the institution makes any express or implied
claim related to preparing students for, a particular career,
occupation, vocation, job, or job title.
(c) License examination passage rates for programs leading to
employment for which passage of a state licensing examination is
required, as calculated pursuant to Article 16 (commencing with
Section 94928).
(d) (1) Salary or wage information, as calculated pursuant to
Article 16 (commencing with Section 94928), if the institution or a
representative of the institution makes any express or implied claim
about the salary that may be earned after completing the educational
program.
(2) Additionally, each institution that offers an educational
program designed to lead to a particular career, occupation,
vocation, trade, job, or job title shall disclose the wage and salary
data for the particular career, occupation, trade, job, or job
title, as provided by the Employment Development Department's
Occupational Employment Statistics, if that data is available.
(e) If a program is too new to provide data for any of the
categories listed in this subdivision, the institution shall state on
its fact sheet: "This program is new. Therefore, the number of
students who graduate, the number of students who are placed, or the
starting salary you can earn after finishing the educational program
are unknown at this time. Information regarding general salary and
placement statistics may be available from government sources or from
the institution, but is not equivalent to actual performance data."
(f) All of the following:
(1) A description of the manner in which the figures described in
subdivisions (a) to (d), inclusive, are calculated or a statement
informing the reader of where he or she may obtain a description of
the manner in which the figures described in subdivisions (a) to (d),
inclusive, are calculated.
(2) A statement informing the reader of where he or she may obtain
from the institution a list of the employment positions determined
to be within the field for which a student received education and
training for the calculation of job placement rates as required by
subdivision (b).
(3) A statement informing the reader of where he or she may obtain
from the institution a list of the objective sources of information
used to substantiate the salary disclosure as required by subdivision
(d).
(g) The following statements:
(1) "This fact sheet is filed with the Bureau for Private
Postsecondary Education California Postsecondary
Education Commission . Regardless of any information
you may have relating to completion rates, placement rates, starting
salaries, or license exam passage rates, this fact sheet contains
the information as calculated pursuant to state law."
(2) "Any questions a student may have regarding this fact sheet
that have not been satisfactorily answered by the institution may be
directed to the Bureau for Private Postsecondary Education
California Postsecondary Education Commission at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
SEC. 17. Section 94911 of the Education Code is amended to read:
94911. An enrollment agreement shall include, at a minimum, all
of the following:
(a) The name of the institution and the name of the educational
program, including the total number of credit hours, clock hours, or
other increment required to complete the educational program.
(b) A schedule of total charges, including a list of any charges
that are nonrefundable and the student's obligations to the Student
Tuition Recovery Fund, clearly identified as nonrefundable charges.
(c) In underlined capital letters on the same page of the
enrollment agreement in which the student's signature is required,
the total charges for the current period of attendance, the estimated
total charges for the entire educational program, and the total
charges the student is obligated to pay upon enrollment.
(d) A clear and conspicuous statement that the enrollment
agreement is legally binding when signed by the student and accepted
by the institution.
(e) (1) A disclosure with a clear and conspicuous caption,
"STUDENT'S RIGHT TO CANCEL," under which it is explained that the
student has the right to cancel the enrollment agreement and obtain a
refund of charges paid through attendance at the first class
session, or the seventh day after enrollment, whichever is later.
(2) The disclosure shall contain the institution's refund policy
and a statement that, if the student has received federal student
financial aid funds, the student is entitled to a refund of moneys
not paid from federal student financial aid program funds.
(3) The text shall also include a description of the procedures
that a student is required to follow to cancel the enrollment
agreement or withdraw from the institution and obtain a refund.
(f) A statement specifying that, if the student obtains a loan to
pay for an educational program, the student will have the
responsibility to repay the full amount of the loan plus interest,
less the amount of any refund.
(g) A statement specifying that, if the student is eligible for a
loan guaranteed by the federal or state government and the student
defaults on the loan, both of the following may occur:
(1) The federal or state government or a loan guarantee agency may
take action against the student, including applying any income tax
refund to which the person is entitled to reduce the balance owed on
the loan.
(2) The student may not be eligible for any other federal student
financial aid at another institution or other government assistance
until the loan is repaid.
(h) The transferability disclosure that is required to be included
in the school catalog, as specified in paragraph (15) of subdivision
(a) of Section 94909.
(i) (1) The following statement: "Prior to signing this enrollment
agreement, you must be given a catalog or brochure and a School
Performance Fact Sheet, which you are encouraged to review prior to
signing this agreement. These documents contain important policies
and performance data for this institution. This institution is
required to have you sign and date the information included in the
School Performance Fact Sheet relating to completion rates, placement
rates, license examination passage rates, and salaries or wages,
prior to signing this agreement."
(2) Immediately following the statement required by paragraph (1),
a line for the student to initial, including the following
statement: "I certify that I have received the catalog, School
Performance Fact Sheet, and information regarding completion rates,
placement rates, license examination passage rates, and salary or
wage information included in the School Performance Fact sheet, and
have signed, initialed, and dated the information provided in the
School Performance Fact Sheet."
(j) The following statements:
(1) "Any questions a student may have regarding this enrollment
agreement that have not been satisfactorily answered by the
institution may be directed to the Bureau for Private
Postsecondary Education California Postsecondary
Education Commission at (address), Sacramento, CA (ZIP Code),
(Internet Web site address), (telephone and fax numbers)."
(2) "A student or any member of the public may file a complaint
about this institution with the Bureau for Private
Postsecondary Education California Postsecondary
Education Commission by calling (toll-free telephone number) or
by completing a complaint form, which can be obtained on the
bureau's commission's Internet Web site
(Internet Web site address)."
(k) The following statement above the space for the student's
signature:
"I understand that this is a legally binding contract. My signature
below certifies that I have read, understood, and agreed to my rights
and responsibilities, and that the institution's cancellation and
refund policies have been clearly explained to me."
SEC. 18. Section 94936 of the Education Code is amended to read:
94936. (a) As a consequence of an investigation, and upon a
finding that the institution has committed a violation of this
chapter or that the institution has failed to comply with a notice to
comply pursuant to Section 94935, the bureau
commission shall issue a citation to an institution for
violation of this chapter, or regulations adopted pursuant to this
chapter.
(b) The citation may contain either or both of the following:
(1) An order of abatement that may require an institution to
demonstrate how future compliance with this chapter or regulations
adopted pursuant to this chapter will be accomplished.
(2) Notwithstanding Section 125.9 of the Business and
Professions Code, an An administrative fine not
to exceed five thousand dollars ($5,000) for each violation. The
bureau commission shall base its
assessment of the administrative fine on:
(A) The nature and seriousness of the violation.
(B) The persistence of the violation.
(C) The good faith of the institution.
(D) The history of previous violations.
(E) The purposes of this chapter.
(F) The potential harm to students.
(c) (1) The citation shall be in writing and describe the nature
of the violation and the specific provision of law or regulation that
is alleged to have been violated.
(2) The citation shall inform the institution of its right to
request a hearing in writing within 30 days from service of the
citation.
(3) If a hearing is requested, the bureau
commission shall select an informal hearing pursuant to Article
10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code or a formal hearing
pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.
(4) If a hearing is not requested, payment of the administrative
fine is due 30 days from the date of service, and shall not
constitute an admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative
fine is ordered, the administrative fine is due 30 days from when the
final order is entered.
(6) The bureau commission may
enforce the administrative fine as if it were a money judgment
pursuant to Title 9 (commencing with Section 680.010) of Part 2 of
the Code of Civil Procedure.
(d) All administrative fines shall be deposited in the Private
Postsecondary Education Administration Fund.
SEC. 19. Section 94937 of the Education Code is amended to read:
94937. (a) As a consequence of an investigation, and upon a
finding that an institution has committed a violation, the
bureau commission may place an institution on
probation or may suspend or revoke an institution's approval to
operate for:
(1) Obtaining an approval to operate by fraud.
(2) A material violation or repeated violations of this chapter or
regulations adopted pursuant to this chapter that have resulted in
harm to students. For purposes of this paragraph, "material violation"
includes, but is not limited to, misrepresentation, fraud in the
inducement of a contract, and false or misleading claims or
advertising, upon which a student reasonably relied in executing an
enrollment agreement and that resulted in harm to the student.
(b) The bureau commission shall
adopt regulations, within one year of the enactment of this chapter,
governing probation and suspension of an approval to operate.
(c) The bureau c ommission
may seek reimbursement of the reasonable costs of the
investigation and enforcement of the case from the institution found
to have committed the violation pursuant to Section
125.3 of the Business and Professions Code a formal
hearing pursuant to Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code .
(d) An institution shall not be required to pay the cost of
investigation to more than one agency.
SEC. 20. Section 95000 of the Education Code is amended to read:
95000. (a) Notwithstanding any other law, upon the repeal of
Chapter 8 (commencing with Section 94800), the Student Tuition
Recovery Fund shall be continued in existence under the
administration of the Department of Consumer Affairs
California Postsecondary Education Commission ,
and the moneys remaining in the fund shall be continuously
appropriated to the Department of Consumer Affairs
California Postsecondary Education Commission for the
purpose of paying claims filed under Chapter 8 (commencing with
Section 94800).
(b) Notwithstanding any other law, upon the repeal of Chapter 8
(commencing with Section 94800), the Department of Consumer
Affairs California Postsecondary Education Commission
shall continue to process and pay claims against the Student
Tuition Recovery Fund until all claims pending as of the repeal of
Chapter 8 (commencing with Section 94800) are processed, or until the
moneys remaining in the fund are exhausted, whichever occurs first.