California Assembly Bill AB573 Amended / Bill

 BILL NUMBER: AB 573AMENDED BILL TEXT AMENDED IN SENATE AUGUST 31, 2015 AMENDED IN SENATE AUGUST 18, 2015 AMENDED IN SENATE JULY 9, 2015 AMENDED IN SENATE JUNE 2, 2015 AMENDED IN ASSEMBLY MAY 11, 2015 AMENDED IN ASSEMBLY MAY 7, 2015 AMENDED IN ASSEMBLY MAY 4, 2015 INTRODUCED BY Assembly Members Medina and McCarty (Principal coauthor: Senator Block) (Coauthors: Assembly Members Alejo, Atkins, Baker, Bonilla, Brown, Calderon, Chau, Chvez, Chiu, Chu, Cooley, Dababneh, Eggman, Frazier, Gipson, Hadley, Kim, O'Donnell, Olsen, Quirk, Ridley-Thomas, Rodriguez, Santiago, Thurmond, and Ting) (Coauthors: Senators Gaines, Galgiani, Hill, Runner, and Wieckowski) FEBRUARY 24, 2015 An act to amend Sections 76300,  94923, 94924,  94925, and 94926 of, to amend the heading of Article 15 (commencing with Section 94926) of Chapter 8 of Part 59 of Division 10 of Title 3 of, and to add Sections 69433.61, 69999.19, 94051, and 94926.5 to, the Education Code, relating to higher education, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 573, as amended, Medina. Higher education: campus closures: Corinthian Colleges. (1) Existing law establishes the California Community Colleges under the administration of the Board of Governors of the California Community Colleges, and establishes community college districts throughout the state that operate community colleges and provide instruction to students. Existing law requires community college districts to charge each student a fee of $46 per unit per semester. Existing law requires the waiver of this fee for students meeting prescribed requirements. This bill would, until July 1, 2018, require the board of governors to waive the fee for students who meet prescribed requirements, were enrolled at a California campus of a Corinthian Colleges, Inc., institution, and were either unable to complete an educational program offered by the campus due to the campus's closure on April 27, 2015, or withdrew from an educational program offered by a Corinthian Colleges campus  within 120 days of that date,  after the earlier of either (A) 120 days before the closure   , or an earlier date as may determined by the Bureau for Private Postsecondary Education, or (B) the date set by the United States Department of Education for closed school loan discharge eligibility,  and have demonstrated  financial  need, as determined by the enrolling campus. To the extent this provision would impose additional duties on community college districts, it would constitute a state-mandated local program. (2) The California Private Postsecondary Education Act of 2009 provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. The act requires an institution subject to its provisions to follow certain requirements prior to closing. This bill would provide that, until January 1, 2020,  there   the Governor  shall  be established   establish  a single point of contact to respond to  the  each  closure of  institutions   an institution  that  do   does  not comply with these  closure and   related  requirements prior to closing. The bill would require the single point of contact to assist the students who were enrolled at, or in an online program offered by, an institution that closes in, among other things,  receiving information on  obtaining refunds, loan discharges, and tuition recovery.  The bill would, upon the unlawful closure of an institution, require the Attorney General, or a qualified entity under contract with the Attorney General, to provide timely grant funds to eligible local nonprofit community service organizations to assist students of that institution with loan discharge and other student loan-related requests and tuition recovery-related claims, as specified.   (3) This bill would appropriate the sum of $1,300,000 from the Private Postsecondary Education Administration Fund to the Bureau of Private Postsecondary Education for the purposes of providing financial grants to eligible local nonprofit community service organizations, as described above, for students affected by the closure of Corinthian Colleges, Inc., as specified, thereby making an appropriation.   (4)   (3)  The act also establishes the Student Tuition Recovery Fund and requires the bureau to adopt regulations governing the administration and maintenance of the fund, including requirements relating to assessments on students and student claims against the fund, and establishes that the moneys in this fund are continuously appropriated to the bureau for specified purposes. The act caps the amount that may be in the fund at any time at $25,000,000. This bill would  deem a student who was enrolled at a California campus of a Corinthian Colleges, Inc., institution, or a California student who was enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution, to be eligible for recovery from the fund under specified circumstances. By expanding the purpose for which moneys in the Student Tuition Recovery Fund may be used, this bill would make an appropriation. The bill would  raise the cap for the fund to $50,000,000.  The bill would, upon the unlawful closure of an institution, require the Attorney General, or a qualified entity under contract with the Attorney General, to provide timely grant funds to eligible nonprofit community service organizations, as defined, to assist students of that institution with loan discharge and other student loan-related requests and tuition recovery-related claims, as specified. The bill would provide that the aggregate amount of these grants and the reasonable administrative costs to the Attorney General's office related to the grants would be made available from the Student Tuition Recovery Fund, thereby making   an appropriation.   The bill would authorize a private postsecondary institution to submit Student Tuition Recovery Fund assessments to the bureau for its students who are enrolled at the institution, would prohibit the institution from advertising or marketing this as a benefit it provides for its students, and would establish additional requirements related to the fund, as specified.   (4) This bill would appropriate the sum of $1,300,000 from the Student Tuition Recovery Fund to the Bureau of Private Postsecondary Education for the purposes of providing grants to eligible nonprofit community service organizations to assist students affected by the closure of Corinthian Colleges, Inc., as defined, with loan discharge and other student loan-related requests and tuition recovery-related claims, and to pay for the reasonable administrative costs of the Attorney General's office related to these grants, as specified, thereby making an appropriation. The bill would require the bureau to ensure that these grant funds are made available within 30 days of its enactment. (5) The Cal Grant Program prohibits an applicant from receiving Cal Grant awards totaling in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, except as provided. This bill would partially exempt from this limitation on Cal Grant awards a student who was enrolled and received a Cal Grant award at a California campus of Heald College, and who was unable to complete an educational program offered by the campus due to its closure. (6) The California National Guard Education Assistance Award Program authorizes the renewal of California National Guard Education Assistance Awards, for a maximum of the greater of either four years of full-time equivalent enrollment or the duration for which the qualifying member would otherwise be eligible pursuant to the Cal Grant Program, if specified conditions are met. This bill would partially exempt from this limitation on California National Guard Education Assistance Awards a student who was enrolled and received a California National Guard Education Assistance Award at a California campus of Heald College, and who was unable to complete an educational program offered by the campus due to its closure. (7) This bill would appropriate $100,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to a community college district for the purpose of conducting a statewide media campaign to inform students affected by the closure of Corinthian Colleges, Inc., of the education opportunities available at community colleges, thereby making an appropriation. Funds appropriated by this bill to a community college district would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution. (8) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (9) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) It is the intent of the Legislature that the California Community Colleges shall utilize available resources to provide matriculation services, including, but not limited to, assessments, counseling, and academic planning, to students who were enrolled at a California campus of a Corinthian Colleges, Inc., institution, including Heald College, and California students enrolled in one or more online programs offered by an out-of-state campus of a Corinthian Colleges, Inc., institution who were harmed by the closure of Corinthian Colleges, Inc., that took place on April 27, 2015. (b) (1) The sum of one hundred thousand dollars ($100,000) is hereby appropriated from the General Fund to the Chancellor of the California Community Colleges for allocation to a community college district to conduct a statewide media campaign to inform students affected by the closure of Corinthian Colleges, Inc., of education opportunities available at community colleges. (2) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the funds appropriated pursuant to this section shall be deemed to be "General Fund revenues appropriated for community college districts," as defined in subdivision (d) of Section 41202 of the Education Code, for the 2014-15 fiscal year, and included within the "total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B," as defined in subdivision (e) of Section 41202 of the Education Code, for the 2014-15 fiscal year. SEC. 2. It is the intent of the Legislature that unencumbered restitution funds awarded to the state from a lawsuit involving Corinthian Colleges, Inc., and its affiliate institutions, including Heald College, shall be used to repay any funds provided to those students pursuant to this act. SEC. 3. Section 69433.61 is added to the Education Code, to read: 69433.61. (a) Notwithstanding any other law, a student who was enrolled and received a Cal Grant award in the 2013-14 or 2014-15 academic year at a California campus of Heald College, and was unable to complete an educational program offered by the campus due to the campus's closure on April 27, 2015, shall not have the award years used at a Heald College campus considered for purposes of the limitation on the number of years of Cal Grant award eligibility. This restoration of award years for Cal Grant eligibility shall not exceed two years. (b) A student shall be eligible for the restoration of award years if the student was enrolled at a campus of Heald College on April 27, 2015, or  had withdrawn   withdrew  from enrollment  within 120 days of that date.   between July 1, 2014, and April 27, 2015.  The Bureau for Private Postsecondary Education shall provide the commission with confirmation of student enrollment for purposes of this section. (c) An eligible student shall, before January 1, 2017, notify the commission of his or her intent to use the restoration of award years provided under this section and to enroll in an institution eligible for initial and renewal Cal Grant awards to be eligible for that restoration. SEC. 4. Section 69999.19 is added to the Education Code, to read: 69999.19. (a) Notwithstanding any other law, a student who was enrolled and received a California National Guard Education Assistance Award in the 2013-14 or 2014-15 academic year at a California campus of Heald College, and was unable to complete an educational program offered by the campus due to the campus's closure on April 27, 2015, shall not have the award years used at a Heald College campus considered for purposes of the limitation on the number of years of California National Guard Education Assistance Award eligibility. This restoration of award years for California National Guard Education Assistance Award eligibility shall not exceed two years. (b) A student shall be eligible for the restoration of award years if the student was enrolled at a campus of Heald College on April 27, 2015, or  had withdrawn   withdrew  from enrollment  within 120 days of that date.   between July 1, 2014, and April 27, 2015.  The Bureau for Private Postsecondary Education shall provide the commission with confirmation of student enrollment for purposes of this section. (c) An eligible student shall, before January 1, 2017, notify the commission of his or her intent to use the restoration of award years provided under this section and to enroll in an institution eligible for initial and renewal California National Guard Education Assistance Awards to be eligible for that restoration. SEC. 5. Section 76300 of the Education Code is amended to read: 76300. (a) The governing board of each community college district shall charge each student a fee pursuant to this section. (b) (1) The fee prescribed by this section shall be forty-six dollars ($46) per unit per semester, effective with the summer term of the 2012 calendar year. (2) The board of governors shall proportionately adjust the amount of the fee for term lengths based upon a quarter system, and also shall proportionately adjust the amount of the fee for summer sessions, intersessions, and other short-term courses. In making these adjustments, the board of governors may round the per unit fee and the per term or per session fee to the nearest dollar. (c) For the purposes of computing apportionments to community college districts pursuant to Section 84750.5, the board of governors shall subtract, from the total revenue owed to each district, 98 percent of the revenues received by districts from charging a fee pursuant to this section. (d) The board of governors shall reduce apportionments by up to 10 percent to any district that does not collect the fees prescribed by this section. (e) The fee requirement does not apply to any of the following: (1) Students enrolled in the noncredit courses designated by Section 84757. (2) California State University or University of California students enrolled in remedial classes provided by a community college district on a campus of the University of California or a campus of the California State University, for whom the district claims an attendance apportionment pursuant to an agreement between the district and the California State University or the University of California. (3) Students enrolled in credit contract education courses pursuant to Section 78021, if the entire cost of the course, including administrative costs, is paid by the public or private agency, corporation, or association with which the district is contracting and if these students are not included in the calculation of the full-time equivalent students (FTES) of that district. (f) The governing board of a community college district may exempt special part-time students admitted pursuant to Section 76001 from the fee requirement. (g) (1) The fee requirements of this section shall be waived for any student who meets all of the following requirements: (A) Meets minimum academic and progress standards adopted by the board of governors, which fulfill the requirements outlined in this paragraph and paragraphs (2) to (5), inclusive. Any minimum academic and progress standards adopted pursuant to this section shall be uniform across all community college districts and campuses. These standards shall not include a maximum unit cap, and community college districts and colleges shall not impose requirements for fee waiver eligibility other than the minimum academic and progress standards adopted by the board of governors and the requirements of subparagraph (B). (B) Meets at least one of the following criteria: (i) At the time of enrollment, is a recipient of benefits under the Temporary Assistance for Needy Families program, the Supplemental Security Income/State Supplementary Payment Program, or a general assistance program. (ii) Demonstrates eligibility according to income standards established by regulations of the board of governors. (iii) Demonstrates financial need in accordance with the methodology set forth in federal law or regulation for determining the expected family contribution of students seeking financial aid. (iv) Was enrolled at a California campus of a Corinthian Colleges, Inc., institution, was unable to complete an education program offered by the campus due to the campus's closure on April 27, 2015, and has demonstrated  financial  need, as determined by the enrolling campus. This clause shall become inoperative on July 1, 2018. (v) Was enrolled at a California campus of a Corinthian Colleges, Inc., institution, withdrew from an education program offered by the campus  within 120 days, or a greater period   after the earlier of either (1) 120 days before the April 27, 2015, closure, or an earlier date as may be  determined by the Bureau for Private Postsecondary Education pursuant to Section 94923,  of the campus's closure on April 27, 2015,   or (2) the date set by the United States Department of Education for closed school loan discharge eligibility,  and has demonstrated  financial  need, as determined by the enrolling campus. This clause shall become inoperative on July 1, 2018. (2) (A) The board of governors, in consultation with students, faculty, and other key stakeholders, shall consider all of the following in the development and adoption of minimum academic and progress standards pursuant to subparagraph (A) of paragraph (1): (i) Minimum uniform academic and progress standards that do not unfairly disadvantage financially needy students in pursuing their education. (ii) Criteria for reviewing extenuating circumstances and granting appeals that, at a minimum, take into account and do not penalize a student for circumstances outside his or her control, such as reductions in student support services or changes to the economic situation of the student. (iii) A process for reestablishing fee waiver eligibility that provides a student with a reasonable opportunity to continue or resume his or her enrollment at a community college. (B) To ensure that students are not unfairly impacted by the requirements of subparagraph (A) of paragraph (1), the board of governors shall establish a reasonable implementation period that commences no sooner than one year from adoption of the minimum academic and progress standards, or any subsequent changes to these standards, pursuant to subparagraph (A) of paragraph (1) and that is phased in to provide students adequate notification of this requirement and information about available support resources. (3) It is the intent of the Legislature that minimum academic and progress standards adopted pursuant to subparagraph (A) of paragraph (1) be implemented only as campuses develop and implement the student support services and interventions necessary to ensure no disproportionate impact to students based on ethnicity, gender, disability, or socioeconomic status. The board of governors shall consider the ability of community college districts to meet the requirements of this paragraph before adopting minimum academic and progress standards, or any subsequent changes to these standards, pursuant to subparagraph (A) of paragraph (1). (4) It is the intent of the Legislature to ensure that a student shall not lose fee waiver eligibility without a community college campus first demonstrating a reasonable effort to provide a student with adequate notification and assistance in maintaining his or her fee waiver eligibility. The board of governors shall adopt regulations to implement this paragraph that ensure all of the following: (A) Students are provided information about the available student support services to assist them in maintaining fee waiver eligibility. (B) Community college district policies and course catalogs reflect the minimum academic and progress standards adopted pursuant to subparagraph (A) of paragraph (1) and that appropriate notice is provided to students before the policies are put into effect. (C) A student does not lose fee waiver eligibility unless he or she has not met minimum academic and progress standards adopted pursuant to subparagraph (A) of paragraph (1) for a period of no less than two consecutive academic terms. (5) The board of governors shall provide notification of a proposed action to adopt regulations pursuant to this subdivision to the appropriate policy and fiscal committees of the Legislature in accordance with the requirements of paragraph (1) of subdivision (a) of Section 70901.5. This notification shall include, but not be limited to, all of the following: (A) The proposed minimum academic and progress standards and information detailing how the requirements of paragraphs (1) to (4), inclusive, have been or will be satisfied. (B) How many students may lose fee waiver eligibility by ethnicity, gender, disability, and, to the extent relevant data is available, by socioeconomic status. (C) The criteria for reviewing extenuating circumstances, granting appeals, and reestablishing fee waiver eligibility pursuant to paragraph (2). (h) The fee requirements of this section shall be waived for any student who, at the time of enrollment, is a dependent or surviving spouse who has not remarried, of any member of the California National Guard who, in the line of duty and while in the active service of the state, was killed, died of a disability resulting from an event that occurred while in the active service of the state, or is permanently disabled as a result of an event that occurred while in the active service of the state. "Active service of the state," for the purposes of this subdivision, refers to a member of the California National Guard activated pursuant to Section 146 of the Military and Veterans Code. (i) The fee requirements of this section shall be waived for any student who is the surviving spouse or the child, natural or adopted, of a deceased person who met all of the requirements of Section 68120. (j) The fee requirements of this section shall be waived for any student in an undergraduate program, including a student who has previously graduated from another undergraduate or graduate program, who is the dependent of any individual killed in the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon or the crash of United Airlines Flight 93 in southwestern Pennsylvania, if that dependent meets the financial need requirements set forth in Section 69432.7 for the Cal Grant A Program and either of the following applies: (1) The dependent was a resident of California on September 11, 2001. (2) The individual killed in the attacks was a resident of California on September 11, 2001. (k) A determination of whether a person is a resident of California on September 11, 2001, for purposes of subdivision (j) shall be based on the criteria set forth in Chapter 1 (commencing with Section 68000) of Part 41 of Division 5 for determining nonresident and resident tuition. (l) (1) "Dependent," for purposes of subdivision (j), is a person who, because of his or her relationship to an individual killed as a result of injuries sustained during the terrorist attacks of September 11, 2001, qualifies for compensation under the federal September 11th Victim Compensation Fund of 2001 (Title IV (commencing with Section 401) of Public Law 107-42). (2) A dependent who is the surviving spouse of an individual killed in the terrorist attacks of September 11, 2001, is entitled to the waivers provided in this section until January 1, 2013. (3) A dependent who is the surviving child, natural or adopted, of an individual killed in the terrorist attacks of September 11, 2001, is entitled to the waivers under subdivision (j) until that person attains 30 years of age. (4) A dependent of an individual killed in the terrorist attacks of September 11, 2001, who is determined to be eligible by the California Victim Compensation and Government Claims Board, is also entitled to the waivers provided in this section until January 1, 2013. (m) (1) It is the intent of the Legislature that sufficient funds be provided to support the provision of a fee waiver for every student who demonstrates eligibility pursuant to subdivisions (g) to (j), inclusive. (2) From funds provided in the annual Budget Act, the board of governors shall allocate to community college districts, pursuant to this subdivision, an amount equal to 2 percent of the fees waived pursuant to subdivisions (g) to (j), inclusive. From funds provided in the annual Budget Act, the board of governors shall allocate to community college districts, pursuant to this subdivision, an amount equal to ninety-one cents ($0.91) per credit unit waived pursuant to subdivisions (g) to (j), inclusive. It is the intent of the Legislature that funds provided pursuant to this subdivision be used to support the determination of financial need and delivery of student financial aid services, on the basis of the number of students for whom fees are waived. It also is the intent of the Legislature that the funds provided pursuant to this subdivision directly offset mandated costs claimed by community college districts pursuant to Commission on State Mandates consolidated Test Claims 99-TC-13 (Enrollment Fee Collection) and 00-TC-15 (Enrollment Fee Waivers). Funds allocated to a community college district for determination of financial need and delivery of student financial aid services shall supplement, and shall not supplant, the level of funds allocated for the administration of student financial aid programs during the 1992-93 fiscal year. (n) The board of governors shall adopt regulations implementing this section. (o) This section shall become operative on May 1, 2012, only if subdivision (b) of Section 3.94 of the Budget Act of 2011 is operative. SEC. 6. Section 94051 is added to the Education Code, to read: 94051. Notwithstanding any provision of law, for a period not to exceed two years from the date of the closure of Corinthian Colleges, Inc., a state agency that provides certification, registration, or licensure necessary to promote the safety and protection of the public may, on a case-by-case basis, consider for certification, registration, or licensure students who were enrolled in a program of Corinthian Colleges, Inc., that provided education or training aimed towards these students receiving certification, registration, or licensure from the state agency, and who did not receive that certification, registration, or licensure due to the closure of Corinthian Colleges, Inc. This consideration shall be provided at the discretion of the state agency in accordance with its public protection mandate and applicable criteria established by the agency for consumer safety.  SEC. 7.   Section 94923 of the Education Code is amended to read: 94923. (a) The Student Tuition Recovery Fund relieves or mitigates economic loss suffered by a student while enrolled in an educational program, as defined in Section 94837, at a campus or through a distance education program offered by an institution with a physical presence in this state, including any affiliates of that institution, except at an independent institution of higher education, as defined in Section 66010, that is exempt from this chapter pursuant to subdivision (i) of Section 94874, who, at the time of his or her enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss. (b) The bureau shall 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. The regulations shall provide for awards to students who suffer economic loss. The regulations shall ensure that the following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund: (1) Any student who was enrolled at an institution, at a location of the institution, or in an educational program offered by the institution, at the time that institution, location, or program was closed or discontinued, as applicable, who did not choose to participate in a teach-out plan approved by the bureau or did not complete a chosen teach-out plan approved by the bureau. (2) Any student who was enrolled at an institution or a location of the institution within the 120-day period before the closure of the institution or location of the institution, or who was enrolled in an educational program within the 120-day period before the program was discontinued, if the bureau determines there was a significant decline in the quality or value of that educational program during that time period. (3) Any student who was enrolled at an institution or a location of the institution more than 120 days before the closure of the institution or location of the institution, in an educational program offered by the institution as to which the bureau determines there was a significant decline in the quality or value of the program more than 120 days before closure. (4) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so. (5) A student to whom an institution has failed to pay or reimburse loan proceeds under a federal student loan program as required by law, or has failed to pay or reimburse proceeds received by the institution in excess of tuition and other costs. (6) A student who has been awarded restitution, a refund, or other monetary award by an arbitrator or court, based on a violation of this chapter by an institution or representative of an institution, but who has been unable to collect the award from the institution. The bureau shall review the award or judgment and shall ensure the amount to be paid from the fund does not exceed the student's economic loss. (7) Notwithstanding the requirement of subdivision (a) that the institution not be exempt from this article, a student who was enrolled at a California campus of a Corinthian Colleges, Inc., institution or was a California student enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution, who also meets all of the other eligibility requirements, if the student was enrolled as of April 27, 2015, or withdrew within 120 days of that date or any greater period determined by the bureau pursuant to this section. (c) Any student who is required to pay a Student Tuition Recovery Fund assessment who pays tuition equal to or greater than the required assessment shall be deemed to have paid the required assessment, whether or not his or her enrollment agreement specifies collection of the required assessment, and whether or not the institution identifies any money collected from the student as a Student Tuition Recovery Fund assessment. (d) The bureau shall establish regulations ensuring, as permissible under California law, that a student who suffers educational opportunity losses, whose charges are paid by a third-party payer, is eligible for educational credits under the fund. (e) The bureau may seek repayment to the Student Tuition Recovery Fund from an institution found in violation of the law for which a student claim was paid. An institution shall not be eligible to renew its approval to operate with the bureau if the repayment is not made to the bureau as requested. (f) The bureau shall, by regulation, define "economic loss." The regulation shall ensure that the definition of "economic loss" includes, but is not necessarily limited to, pecuniary loss, which is the sum of the student's tuition, all other institutional charges as defined in Section 94844, the cost of equipment and materials required for the educational program as defined in Section 94837, interest on any student loan used to pay for such charges, collection costs, penalties, and any license or examination fees the student paid to the institution but is unable to recover. Economic loss shall also include the amount the institution collected and failed to pay to third parties on behalf of the student for license fees or any other purpose. Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, room and board, supplies, transportation, application fees, or nonpecuniary damages such as inconvenience, aggravation, emotional distress, or punitive damages. Economic loss does not include legal fees, attorney fees, court costs, or arbitration fees. Nothing in this subdivision shall prevent the bureau from further defining economic loss to include loss of educational opportunity. (g) A representation or agreement made by a person not to collect on a student loan shall not lessen a student's eligibility to recover from the Student Tuition Recovery Fund or reduce the amount of the student's economic loss unless the loan has been forgiven, discharged, or canceled in accordance with this section.   SEC. 8.   Section 94924 of the Education Code is amended to read: 94924. (a) The bureau shall determine the amount of Student Tuition Recovery Fund assessments to be collected for each student. (b) An institution may submit Student Tuition Recovery Fund assessments to the bureau for its students who are enrolled at the institution, but shall not advertise or market this as a benefit it provides for its students. (c) All assessments collected pursuant to this article shall be credited to the Student Tuition Recovery Fund, along with any accrued interest, for the purpose of this article. Notwithstanding Section 13340 of the Government Code, the moneys in the Student Tuition Recovery Fund are continuously appropriated to the bureau, without regard to fiscal year, for the purposes of this article. (d) Except when an institution provides a full refund pursuant to Section 94919 or Section 94920, the Student Tuition Recovery Fund assessment is nonrefundable. (e) The bureau shall collect Student Tuition Recovery Fund assessments from an institution for all of the institution's enrolled students as follows: (1) For an institution that is not approved to operate as of the date this subdivision becomes operative, the bureau shall collect assessments from the institution upon issuance of the institution's approval to operate. (2) For an institution that is approved to operate as of the date this subdivision becomes operative, the bureau shall collect assessments from the institution for its enrolled students for whom an assessment has not been collected, including assessments for students enrolled in distance education programs.   SEC. 9.   SEC. 7.  Section 94925 of the Education Code is amended to read: 94925. (a) The amount in the Student Tuition Recovery Fund shall not exceed fifty million dollars ($50,000,000) at any time. (b) If the bureau has temporarily stopped collecting the Student Tuition Recovery Fund assessments because the fund has approached the fifty million dollar ($50,000,000) limit in subdivision (a), the bureau shall resume collecting Student Tuition Recovery Fund assessments when the fund falls below  forty-five   forty  million dollars  ($45,000,000).   ($40,000,000).  (c) An otherwise eligible student who enrolled during a period when institutions were not required to collect Student Tuition Recovery Fund assessments is eligible for Student Tuition Recovery Fund payments despite not having paid any Student Tuition Recovery Fund assessment.  (d) A student who is eligible for recovery from the Student Tuition Recovery Fund pursuant to paragraph (7) of subdivision (b) of Section 94923 shall be eligible for payments despite not having paid any Student Tuition Recovery Fund assessment.   SEC. 10.   SEC. 8.  The heading of Article 15 (commencing with Section 94926) of Chapter 8 of Part 59 of Division 10 of Title 3 of the Education Code is amended to read: Article 15. Institutional Closure and Teach-outs  SEC. 11.   SEC. 9.  Section 94926 of the Education Code is amended to read: 94926. (a) At least 30 days prior to closing, the institution shall notify the bureau in writing of its intention to close. The notice shall be accompanied by a closure plan, which shall include, but not necessarily be limited to, all of the following: (1) A plan for providing teach-outs of educational programs, including any agreements with any other postsecondary educational institutions to provide teach-outs. (2) If no teach-out plan is contemplated, or for students who do not wish to participate in a teach-out, arrangements for making refunds within 45 days from the date of closure, or for institutions that participate in federal student financial aid programs arrangements for making refunds and returning federal student financial aid program funds. (3) If the institution is a participant in federal student financial aid programs, it shall provide students information concerning these programs and institutional closures. (4) A plan for the disposition of student records. (b) Until January 1, 2020,  there   the Governor  shall  be established   establish  a single point of contact to respond to  the   each  closure of  institutions  an institution  that  do   does  not comply with  closure and related  requirements established under state and federal law. The goal of the point of contact shall be to ensure that students who were enrolled at, or in an online program offered by, an institution that has closed receive accurate and timely information regarding the school closure process and the students' rights and responsibilities under federal and state law. The point of contact's  primary duty shall be to advocate on behalf of and represent the interest of California students who attended the closed institutions; other  duties shall include, but not  necessarily  be limited to, all of the following: (1) Coordinating and working in consultation with state and federal agencies, including, but not limited to, the Bureau for Private Postsecondary Education, the Student Aid Commission,  the Attorney General's Office,  the Office of the Chancellor of the California Community Colleges, the Department of Veterans Affairs, the federal Consumer Financial Protection Bureau, and the United States Department of Education to determine both of the following: (A) Options and resources available to students. (B) Criteria which indicate additional steps are necessary for state agencies to take to ensure the protection of the public from school closures. (2) Establishing and maintaining an Internet Web site to provide information to students about options available in the event of a school closure, including information necessary to help a student make an informed decision about whether to seek a loan discharge or to transfer credits. The Internet Web site shall list the names of institutions that are on the United States Department of Education's list for heightened cash monitoring. (3) Assisting students in obtaining important documentation from a closed institution, including, but not limited to, their enrollment agreements, records, transcripts, and loan information. (c) (1)  Consideration   For   unlawful closures of large institutions regarding which the Attorney General has a pending investigation or ongoing litigation, consideration  should be given to establishing the single point of contact within the Attorney General's office. (2) The Legislature finds that the Attorney General's office has expertise in complex legal situations such as those facing students impacted by the sudden and abrupt closure of their educational institutions and has established an online tool for students to receive a personalized resource sheet regarding the types of relief available to them. (3) The Legislature finds  that, among the involved agencies,   that  the Attorney General's office is  the best  situated to continue playing a  central, coordinating   central  role in the effort to assist students of an institution that has  unlawfully  closed. (4) This subdivision shall not be construed to authorize the Attorney General's office to breach any of its responsibilities or to provide individual legal assistance or representation to students of an institution that has closed. If the single point of contact is established within the Attorney General's office, the responsibilities of the single point of contact shall be separate and distinct from the office's efforts to uphold state law, represent state agencies, and undertake related actions.  SEC. 12.   SEC. 10.  Section 94926.5 is added to the Education Code, to read: 94926.5. (a) Upon the unlawful closure of an institution, grant funds shall be timely provided in accordance with this section to eligible  local  nonprofit community service organizations, including, but not limited to, legal aid  organizations,   organizations and  organizations offering free services for counseling on student  financial aid and  loan debt problems,  and organizations assisting with the arrangement of debt management and settlement plans,  to assist the students of that closed institution, including veterans, for no less than one year following the closure of the institution,  by relieving or mit   igating the economic and educational opportunity loss associated with the closure of the institution. Services provided by eligible nonprofit community services organizations shall include assistance  with loan discharge and other student  financial aid, veterans education benefits,  loan-related  requests   relief,  and tuition recovery-related claims. Assistance  shall   may  include, but is not limited to, outreach and education, screening requests for assistance, referring students for additional legal assistance through pro bono referral programs, and legal services.  The terms and conditions of the grant funds may permit recipients to use excess grant funds to provide assistance to other clients related to school closure or student debt.  For purposes of this section, an "eligible  local  nonprofit community service organization" is an organization that satisfies  both   all  of the following conditions: (1) The organization is a 501(c)(3) tax-exempt organization in good standing with the Internal Revenue Service and in compliance with all applicable laws and requirements. (2) The organization demonstrates expertise in assisting students with, and currently provides  free  direct legal services to students for,  or will work in partnership with or under the supervision of an attorney or a nonprofit legal services organization that has demonstrated expertise in assisting students with,  student loan  and tuition recovery-   related  matters.  (3) The organization does not charge students for services, including services provided pursuant to this section.  (b)  (1)    The  aggregate  amount of  these  grant  funds   funds, which shall be made available from the Student Tuition Recovery Fund,  shall be calculated by multiplying the number of students affected by the institution's closure by one hundred dollars ($100).  (2) The reasonable administrative costs of the Attorney General's office pursuant to this section shall be made available from the Student Tuition Recovery Fund.  (c) (1) The bureau shall notify the Attorney General of all unlawful school closures within 15 days of the closure. (2) The notification shall include the name and location of the school, the programs, and the number of students affected at each site of the school, as appropriate. The bureau shall provide the Attorney General with all additional information that the Attorney General may request. (3) The Attorney General shall, within 90 days of receipt of the notification, solicit grant applications from eligible  local  nonprofit community service organizations as described in subdivision (a), select one or more of these organizations from among the applicants who are deemed to be qualified by the Attorney General,  set additional terms and conditions of the grants as necessary,  and notify the bureau and the recipient organization or organizations of the selection. The Attorney General may enter into a contract with another qualified entity to perform the Attorney General's duties under this subdivision. (d) An eligible local  nonprofit community service organization that receives funds pursuant to this section shall enter into a grant agreement with the Attorney General, or a qualified entity entrusted with this authority pursuant to paragraph (3) of subdivision (c), as applicable, and shall use grant funds exclusively for the purposes set forth in this section in accordance with the agreement. Any unused funds shall be returned to the Attorney General unless the parties of the agreement enter into a new agreement authorizing the organization to expend the unused funds. The Attorney General, or a qualified entity, may terminate the agreement for material breach. However, the Attorney General, or a qualified entity, shall provide the grantee with written notice of the breach and a reasonable opportunity of not less than 30 days to resolve the breach. (e) An eligible  local  nonprofit community service organization that receives a grant may give priority to low-income students if demand exceeds available grant funds. Otherwise, the organization may provide assistance regardless of student income level. (f) An eligible  local  nonprofit community service organization that receives a grant shall report to the Attorney General, or a qualified entity pursuant to paragraph (3) of subdivision (c), as applicable, quarterly through the grant period on the number of students served from the date funds are distributed. (g) Funds shall be distributed  by the Attorney General, or a qualified entity pursuant to paragraph (3) of subdivision (c), as applicable,  to preapproved  local  nonprofit community service organizations as follows: (1) For a school closure involving fewer than 250 students, 100 percent of the grant funds shall be distributed within 30 days of the  selection of one or more recipient organizations.   grantee entering into a grant agreement.  (2) For a school closure involving 250 or more students: (A) Fifty percent shall be distributed within 30 days of the  date of the institution's unlawful closure.   grantee entering into a grant agreement.  (B) Twenty-five percent shall be distributed upon the submission of the  eligible local nonprofit community service organization's   grantee's  second quarterly report. (C) Twenty-five percent shall be distributed upon the submission of the  eligible local nonprofit community service organization's   grantee's  third quarterly report.  (h) This section shall become inoperative on July 1, 2020, and, as of January 1, 2021, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2021, deletes or extends the date on which it becomes inoperative and is repealed.   SEC. 13.   SEC. 11.  (a) The sum of one million three hundred thousand dollars ($1,300,000) is hereby appropriated from the  Private Postsecondary Education Administration   Student Tuition Recovery  Fund to the Bureau of Private Postsecondary Education for the purposes of providing  financial  grants  pursuant to Section 94926.5 of the Education Code  to eligible  local  nonprofit community service organizations  for   to assist eligible  students affected by the closure of Corinthian Colleges,  Inc.   Inc., and to pay for the reasonable administrative costs of the Attorney General's office related to these grants, as provided in subdivision (b).  Eligible  local  nonprofit community service organizations may use grant funds received pursuant to  Section 94926.5 of the Education Code   this section  for affected students  who have been  served from the date of closure.  Notwithstanding subdivision (g) of Section 94926.5, the   (b)    Grants shall be issued consistent with the procedures specified in Section 94926.5 of the Education Code, except that the  Bureau of Private Postsecondary Education shall ensure that these grant funds are made available within 30 days of the enactment of this section.  The   (c)     The  adoption of any regulation pursuant to this  subdivision   section  shall be deemed to be an emergency and necessary for the immediate preservation of the public, health, and safety, or general welfare.  (d) For purposes of this section the following definitions shall apply:   (1) "Eligible nonprofit community service organization" shall have the same meaning as specified in subdivision (a) of Section 94926.5 of the Education Code.   (2) "Eligible students affected by the closure of Corinthian Colleges, Inc." means either of the following:   (A) A student who was enrolled at a California campus of a Corinthian Colleges, Inc., institution and was unable to complete an education program offered by the campus due to the campus's closure on April 27, 2015.   (B) A student who was enrolled at a California campus of a Corinthian Colleges, Inc., institution and withdrew from an education program offered by the campus after the earlier of either (i) 120 days before the April 27, 2015, closure, or an earlier date as may be determined by the Bureau for Private Postsecondary Education pursuant to Section 94923, or (ii) the date set by the United States Department of Education for closed school loan discharge eligibility.   (b) The amount appropriated in subdivision (a) may include revenues derived from the assessment of fines and penalties imposed, and expenditures of these funds is specifically authorized for purposes of Section 13332.18 of the Government Code.   (c) The Private Postsecondary Education Administration Fund reserve limit of six months of operating expenses pursuant to subdivision (b) of Section 94930 of the Education Code shall be suspended until July 1, 2016.   SEC. 14.   SEC. 12.  If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.  SEC. 15.   SEC. 13.  This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to provide immediate educational and economic relief to the thousands of students harmed by the closure of Corinthian Colleges, Inc., it is necessary for this act to take effect immediately.