Amended in Senate March 26, 2014

Senate Bill No. 1069

Introduced by Senator Torres

February 18, 2014

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

LEGISLATIVE COUNSEL’S DIGEST

SB 1069, as amended, Torres. begin delete Private postsecondary education: refunds. end delete begin insert Student Tuition Recovery Fund: claims. end insert

begin insert

Existing law, the California Private Postsecondary Education Act of 2009, which is repealed on January 1, 2015, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. The act requires the bureau to adopt regulations governing the administration and maintenance of the Student Tuition Recovery Fund, including requirements relating to assessments on students and student claims against the Student Tuition Recovery Fund, a continuously appropriated fund.

end insert begin insert

This bill would provide that a student who utilizes a Cal Grant or a Pell Grant to pay tuition at a qualifying institution is not thereby made ineligible to apply for payment from the Student Tuition Recovery Fund.

end insert begin insert

This bill would become operative only if an act that becomes operative on or before January 1, 2015, delays or eliminates the January 1, 2015, repeal date of the California Private Postsecondary Education Act of 2009.

end insert begin delete

The California Private Postsecondary Education Act of 2009 requires, among other things, institutions that do not participate in the federal student financial aid programs to comply with specified requirements, including to refund to a student 100% of the amount paid for institutional charges, less a reasonable deposit or application fee, as specified, if notice of cancellation is made through attendance at the first class session, or the 7th class day after enrollment, whichever is later.

end delete begin delete

This bill would make a nonsubstantive change to the above provisions relating to refunds by institutions not participating in federal student financial aid programs.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 94923 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

94923.  

begin insert (a) end insert begin insert   end insert The bureau shall, by January 1, 2011, adopt by
regulation procedures governing the administration and
maintenance of the Student Tuition Recovery Fund, including
requirements relating to assessments on students and student claims
against the Student Tuition Recovery Fund.

begin insert

(b) A student who utilizes a Cal Grant, Pell Grant, or both, to
pay tuition at a qualifying institution is not thereby made ineligible
to apply for payment from the Student Tuition Recovery Fund.

end insert

begin insert

begin insert SEC. 2. end insert   

This act shall become operative only if an act that
becomes operative on or before January 1, 2015, amends or
repeals Section 94950 of the Education Code to delay or eliminate
the January 1, 2015, repeal date of the California Private
Postsecondary Education Act of 2009 (Chapter 8 (commencing
with Section 94800) of Part 59 of Division 10 of Title 3 of the
Education Code).

end insert

begin delete

SECTION 1.  

Section 94920 of the Education Code is amended
to read:

94920.  

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

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

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

(c) The bureau may adopt by regulation a different method of
calculation for instruction delivered by other means, including,
but not necessarily limited to, distance education.

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

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

end delete