California Senate Bill SB498 Introduced / Bill

 BILL NUMBER: SB 498INTRODUCED 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.