CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 790Introduced by Senator CabaldonFebruary 21, 2025 An act to amend Sections 94801.5, 94858, 94897, and 94923 of, and to repeal and add Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of, the Education Code, relating to postsecondary education, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTSB 790, as introduced, Cabaldon. Postsecondary education: postsecondary education coordinating entity: interstate reciprocity agreements for distance education: out-of-state private postsecondary educational institutions.(1) Existing law establishes the California Postsecondary Education Commission (CPEC) to be responsible for coordinating public, independent, and private postsecondary education in this state and to provide independent policy analyses and recommendations to the Legislature and the Governor on postsecondary education issues. The Budget Act of 2011 deleted funding and personnel from CPEC.This bill would eliminate CPEC and instead would require the Governor to designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education with duties including implementation, coordination, and evaluation of the Master Plan for Career Education, coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, and implementation of an interstate reciprocity agreement for distance education if the Governor enters into such agreement, as provided. The bill would authorize the Governor to enter into one or more interstate reciprocity agreements through a compact on behalf of the state upon issuing certain written findings. The bill would authorize postsecondary educational institutions to apply to the designated coordinating entity for approval to operate under an interstate reciprocity agreement, as specified.(2) The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with delineated requirements unless the institution is exempt from complying with these requirements.This bill would exempt a higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party from these requirements, except as specified.For purposes of the act, existing law defines a private postsecondary educational institution as a private entity with a physical presence in the state that offers postsecondary education to the public for an institutional charge.This bill would expand that definition to also include an accredited private entity with no physical presence in the state that offers and awards degrees to the public in this state by means of distance education for an institutional charge if the institution is not approved pursuant to an interstate reciprocity agreement to which the state is a party, thereby subjecting those institutions to the requirements of the act.The act establishes the Student Tuition Recovery Fund as a continuously appropriated fund to relieve or mitigate economic loss suffered by a student while enrolled in an institution who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss, as defined. Existing law limits the amount of moneys in the fund from exceeding $25,000,000 at any time.This bill would authorize the bureau, if the fund has a balance of $25,000,000, to extend coverage to a California resident student who suffers economic loss while enrolled in an institution that is approved pursuant to an interstate reciprocity agreement to which the state is a party. By expanding the scope of a continuously appropriated fund, the bill would make an appropriation.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The 1960 Master Plan for Higher Education recommended that a coordinating agency be formed to address the demands of the state for rational development and maximum economy in higher education, and called for a Co-ordinating Council for Higher Education, comprising representatives of the three public segments, to serve as the advisory body. California, in its adoption of the Master Plan for Higher Education, established the Coordinating Council for Higher Education.(b) (1) In 1974, the Legislature established the California Postsecondary Education Commission (CPEC), the successor to the Coordinating Council for Higher Education, declaring the Legislatures intent, among other things, to ensure the effective utilization of public postsecondary education resources, thereby eliminating waste and unnecessary duplication, and to promote diversity, innovation, and responsiveness to student and societal needs.(2) CPEC was responsible for conducting long-range planning of state needs for new college or university campuses, providing timely information about student enrollment and educational outcomes, and reviewing proposals from public colleges and universities for new degree programs.(3) The Budget Act of 2011 eliminated ongoing funding for CPEC. Since that time, California is one of two states with no coordinating body for postsecondary education.(c) In the absence of a postsecondary education operating department or office, the Legislature and Governor have been left with no option other than assigning postsecondary programs to agencies without relevant expertise. There is no consistent entity in state government to operate postsecondary programs or evaluate their effectiveness.SEC. 2. Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of the Education Code is repealed.SEC. 3. Chapter 11 (commencing with Section 66900) is added to Part 40 of Division 5 of Title 3 of the Education Code, to read: CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization Article 1. General Provisions66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910. Article 2. Education Coordination and Program Operations66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose. Article 3. State Authorization Reciprocity Agreement for Distance Education66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.SEC. 4. Section 94801.5 of the Education Code is amended to read:94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).(A) Evidence of institutional accreditation.(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.(C) The agent for service of process consistent with Section 94943.5.(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(I) Any additional documentation the bureau deems necessary for consideration in the registration process.(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.(c) (1) This section does not apply to a either of the following:(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.(e) A registration with the bureau pursuant to this section shall be valid for five years.(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).(h)This section shall become operative on July 1, 2022.SEC. 5. Section 94858 of the Education Code is amended to read:94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.SEC. 6. Section 94897 of the Education Code, as amended by Section 83 of Chapter 497 of the Statutes of 2024, is amended to read:94897. An institution institution, including an out-of-state institution, shall not do any of the following:(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.(i) Use a name in any manner improperly implying any of the following:(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.(2) The institution is a public institution.(3) The institution grants degrees, if the institution does not grant degrees.(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.(s) Violate Section 1788.93 of the Civil Code.(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.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 institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:(A) 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.(B) 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.(C) 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.(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.(E) 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.(F) 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 students economic loss.(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:(A) All cash or other consideration paid by the student to the institution.(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 790Introduced by Senator CabaldonFebruary 21, 2025 An act to amend Sections 94801.5, 94858, 94897, and 94923 of, and to repeal and add Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of, the Education Code, relating to postsecondary education, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTSB 790, as introduced, Cabaldon. Postsecondary education: postsecondary education coordinating entity: interstate reciprocity agreements for distance education: out-of-state private postsecondary educational institutions.(1) Existing law establishes the California Postsecondary Education Commission (CPEC) to be responsible for coordinating public, independent, and private postsecondary education in this state and to provide independent policy analyses and recommendations to the Legislature and the Governor on postsecondary education issues. The Budget Act of 2011 deleted funding and personnel from CPEC.This bill would eliminate CPEC and instead would require the Governor to designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education with duties including implementation, coordination, and evaluation of the Master Plan for Career Education, coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, and implementation of an interstate reciprocity agreement for distance education if the Governor enters into such agreement, as provided. The bill would authorize the Governor to enter into one or more interstate reciprocity agreements through a compact on behalf of the state upon issuing certain written findings. The bill would authorize postsecondary educational institutions to apply to the designated coordinating entity for approval to operate under an interstate reciprocity agreement, as specified.(2) The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with delineated requirements unless the institution is exempt from complying with these requirements.This bill would exempt a higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party from these requirements, except as specified.For purposes of the act, existing law defines a private postsecondary educational institution as a private entity with a physical presence in the state that offers postsecondary education to the public for an institutional charge.This bill would expand that definition to also include an accredited private entity with no physical presence in the state that offers and awards degrees to the public in this state by means of distance education for an institutional charge if the institution is not approved pursuant to an interstate reciprocity agreement to which the state is a party, thereby subjecting those institutions to the requirements of the act.The act establishes the Student Tuition Recovery Fund as a continuously appropriated fund to relieve or mitigate economic loss suffered by a student while enrolled in an institution who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss, as defined. Existing law limits the amount of moneys in the fund from exceeding $25,000,000 at any time.This bill would authorize the bureau, if the fund has a balance of $25,000,000, to extend coverage to a California resident student who suffers economic loss while enrolled in an institution that is approved pursuant to an interstate reciprocity agreement to which the state is a party. By expanding the scope of a continuously appropriated fund, the bill would make an appropriation.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 790
Introduced by Senator CabaldonFebruary 21, 2025
Introduced by Senator Cabaldon
February 21, 2025
An act to amend Sections 94801.5, 94858, 94897, and 94923 of, and to repeal and add Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of, the Education Code, relating to postsecondary education, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 790, as introduced, Cabaldon. Postsecondary education: postsecondary education coordinating entity: interstate reciprocity agreements for distance education: out-of-state private postsecondary educational institutions.
(1) Existing law establishes the California Postsecondary Education Commission (CPEC) to be responsible for coordinating public, independent, and private postsecondary education in this state and to provide independent policy analyses and recommendations to the Legislature and the Governor on postsecondary education issues. The Budget Act of 2011 deleted funding and personnel from CPEC.This bill would eliminate CPEC and instead would require the Governor to designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education with duties including implementation, coordination, and evaluation of the Master Plan for Career Education, coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, and implementation of an interstate reciprocity agreement for distance education if the Governor enters into such agreement, as provided. The bill would authorize the Governor to enter into one or more interstate reciprocity agreements through a compact on behalf of the state upon issuing certain written findings. The bill would authorize postsecondary educational institutions to apply to the designated coordinating entity for approval to operate under an interstate reciprocity agreement, as specified.(2) The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with delineated requirements unless the institution is exempt from complying with these requirements.This bill would exempt a higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party from these requirements, except as specified.For purposes of the act, existing law defines a private postsecondary educational institution as a private entity with a physical presence in the state that offers postsecondary education to the public for an institutional charge.This bill would expand that definition to also include an accredited private entity with no physical presence in the state that offers and awards degrees to the public in this state by means of distance education for an institutional charge if the institution is not approved pursuant to an interstate reciprocity agreement to which the state is a party, thereby subjecting those institutions to the requirements of the act.The act establishes the Student Tuition Recovery Fund as a continuously appropriated fund to relieve or mitigate economic loss suffered by a student while enrolled in an institution who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss, as defined. Existing law limits the amount of moneys in the fund from exceeding $25,000,000 at any time.This bill would authorize the bureau, if the fund has a balance of $25,000,000, to extend coverage to a California resident student who suffers economic loss while enrolled in an institution that is approved pursuant to an interstate reciprocity agreement to which the state is a party. By expanding the scope of a continuously appropriated fund, the bill would make an appropriation.
(1) Existing law establishes the California Postsecondary Education Commission (CPEC) to be responsible for coordinating public, independent, and private postsecondary education in this state and to provide independent policy analyses and recommendations to the Legislature and the Governor on postsecondary education issues. The Budget Act of 2011 deleted funding and personnel from CPEC.
This bill would eliminate CPEC and instead would require the Governor to designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education with duties including implementation, coordination, and evaluation of the Master Plan for Career Education, coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, and implementation of an interstate reciprocity agreement for distance education if the Governor enters into such agreement, as provided. The bill would authorize the Governor to enter into one or more interstate reciprocity agreements through a compact on behalf of the state upon issuing certain written findings. The bill would authorize postsecondary educational institutions to apply to the designated coordinating entity for approval to operate under an interstate reciprocity agreement, as specified.
(2) The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with delineated requirements unless the institution is exempt from complying with these requirements.
This bill would exempt a higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party from these requirements, except as specified.
For purposes of the act, existing law defines a private postsecondary educational institution as a private entity with a physical presence in the state that offers postsecondary education to the public for an institutional charge.
This bill would expand that definition to also include an accredited private entity with no physical presence in the state that offers and awards degrees to the public in this state by means of distance education for an institutional charge if the institution is not approved pursuant to an interstate reciprocity agreement to which the state is a party, thereby subjecting those institutions to the requirements of the act.
The act establishes the Student Tuition Recovery Fund as a continuously appropriated fund to relieve or mitigate economic loss suffered by a student while enrolled in an institution who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss, as defined. Existing law limits the amount of moneys in the fund from exceeding $25,000,000 at any time.
This bill would authorize the bureau, if the fund has a balance of $25,000,000, to extend coverage to a California resident student who suffers economic loss while enrolled in an institution that is approved pursuant to an interstate reciprocity agreement to which the state is a party. By expanding the scope of a continuously appropriated fund, the bill would make an appropriation.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The 1960 Master Plan for Higher Education recommended that a coordinating agency be formed to address the demands of the state for rational development and maximum economy in higher education, and called for a Co-ordinating Council for Higher Education, comprising representatives of the three public segments, to serve as the advisory body. California, in its adoption of the Master Plan for Higher Education, established the Coordinating Council for Higher Education.(b) (1) In 1974, the Legislature established the California Postsecondary Education Commission (CPEC), the successor to the Coordinating Council for Higher Education, declaring the Legislatures intent, among other things, to ensure the effective utilization of public postsecondary education resources, thereby eliminating waste and unnecessary duplication, and to promote diversity, innovation, and responsiveness to student and societal needs.(2) CPEC was responsible for conducting long-range planning of state needs for new college or university campuses, providing timely information about student enrollment and educational outcomes, and reviewing proposals from public colleges and universities for new degree programs.(3) The Budget Act of 2011 eliminated ongoing funding for CPEC. Since that time, California is one of two states with no coordinating body for postsecondary education.(c) In the absence of a postsecondary education operating department or office, the Legislature and Governor have been left with no option other than assigning postsecondary programs to agencies without relevant expertise. There is no consistent entity in state government to operate postsecondary programs or evaluate their effectiveness.SEC. 2. Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of the Education Code is repealed.SEC. 3. Chapter 11 (commencing with Section 66900) is added to Part 40 of Division 5 of Title 3 of the Education Code, to read: CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization Article 1. General Provisions66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910. Article 2. Education Coordination and Program Operations66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose. Article 3. State Authorization Reciprocity Agreement for Distance Education66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.SEC. 4. Section 94801.5 of the Education Code is amended to read:94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).(A) Evidence of institutional accreditation.(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.(C) The agent for service of process consistent with Section 94943.5.(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(I) Any additional documentation the bureau deems necessary for consideration in the registration process.(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.(c) (1) This section does not apply to a either of the following:(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.(e) A registration with the bureau pursuant to this section shall be valid for five years.(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).(h)This section shall become operative on July 1, 2022.SEC. 5. Section 94858 of the Education Code is amended to read:94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.SEC. 6. Section 94897 of the Education Code, as amended by Section 83 of Chapter 497 of the Statutes of 2024, is amended to read:94897. An institution institution, including an out-of-state institution, shall not do any of the following:(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.(i) Use a name in any manner improperly implying any of the following:(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.(2) The institution is a public institution.(3) The institution grants degrees, if the institution does not grant degrees.(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.(s) Violate Section 1788.93 of the Civil Code.(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.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 institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:(A) 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.(B) 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.(C) 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.(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.(E) 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.(F) 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 students economic loss.(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:(A) All cash or other consideration paid by the student to the institution.(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) The 1960 Master Plan for Higher Education recommended that a coordinating agency be formed to address the demands of the state for rational development and maximum economy in higher education, and called for a Co-ordinating Council for Higher Education, comprising representatives of the three public segments, to serve as the advisory body. California, in its adoption of the Master Plan for Higher Education, established the Coordinating Council for Higher Education.(b) (1) In 1974, the Legislature established the California Postsecondary Education Commission (CPEC), the successor to the Coordinating Council for Higher Education, declaring the Legislatures intent, among other things, to ensure the effective utilization of public postsecondary education resources, thereby eliminating waste and unnecessary duplication, and to promote diversity, innovation, and responsiveness to student and societal needs.(2) CPEC was responsible for conducting long-range planning of state needs for new college or university campuses, providing timely information about student enrollment and educational outcomes, and reviewing proposals from public colleges and universities for new degree programs.(3) The Budget Act of 2011 eliminated ongoing funding for CPEC. Since that time, California is one of two states with no coordinating body for postsecondary education.(c) In the absence of a postsecondary education operating department or office, the Legislature and Governor have been left with no option other than assigning postsecondary programs to agencies without relevant expertise. There is no consistent entity in state government to operate postsecondary programs or evaluate their effectiveness.
SECTION 1. The Legislature finds and declares all of the following:(a) The 1960 Master Plan for Higher Education recommended that a coordinating agency be formed to address the demands of the state for rational development and maximum economy in higher education, and called for a Co-ordinating Council for Higher Education, comprising representatives of the three public segments, to serve as the advisory body. California, in its adoption of the Master Plan for Higher Education, established the Coordinating Council for Higher Education.(b) (1) In 1974, the Legislature established the California Postsecondary Education Commission (CPEC), the successor to the Coordinating Council for Higher Education, declaring the Legislatures intent, among other things, to ensure the effective utilization of public postsecondary education resources, thereby eliminating waste and unnecessary duplication, and to promote diversity, innovation, and responsiveness to student and societal needs.(2) CPEC was responsible for conducting long-range planning of state needs for new college or university campuses, providing timely information about student enrollment and educational outcomes, and reviewing proposals from public colleges and universities for new degree programs.(3) The Budget Act of 2011 eliminated ongoing funding for CPEC. Since that time, California is one of two states with no coordinating body for postsecondary education.(c) In the absence of a postsecondary education operating department or office, the Legislature and Governor have been left with no option other than assigning postsecondary programs to agencies without relevant expertise. There is no consistent entity in state government to operate postsecondary programs or evaluate their effectiveness.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) The 1960 Master Plan for Higher Education recommended that a coordinating agency be formed to address the demands of the state for rational development and maximum economy in higher education, and called for a Co-ordinating Council for Higher Education, comprising representatives of the three public segments, to serve as the advisory body. California, in its adoption of the Master Plan for Higher Education, established the Coordinating Council for Higher Education.
(b) (1) In 1974, the Legislature established the California Postsecondary Education Commission (CPEC), the successor to the Coordinating Council for Higher Education, declaring the Legislatures intent, among other things, to ensure the effective utilization of public postsecondary education resources, thereby eliminating waste and unnecessary duplication, and to promote diversity, innovation, and responsiveness to student and societal needs.
(2) CPEC was responsible for conducting long-range planning of state needs for new college or university campuses, providing timely information about student enrollment and educational outcomes, and reviewing proposals from public colleges and universities for new degree programs.
(3) The Budget Act of 2011 eliminated ongoing funding for CPEC. Since that time, California is one of two states with no coordinating body for postsecondary education.
(c) In the absence of a postsecondary education operating department or office, the Legislature and Governor have been left with no option other than assigning postsecondary programs to agencies without relevant expertise. There is no consistent entity in state government to operate postsecondary programs or evaluate their effectiveness.
SEC. 2. Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of the Education Code is repealed.
SEC. 2. Chapter 11 (commencing with Section 66900) of Part 40 of Division 5 of Title 3 of the Education Code is repealed.
### SEC. 2.
SEC. 3. Chapter 11 (commencing with Section 66900) is added to Part 40 of Division 5 of Title 3 of the Education Code, to read: CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization Article 1. General Provisions66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910. Article 2. Education Coordination and Program Operations66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose. Article 3. State Authorization Reciprocity Agreement for Distance Education66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.
SEC. 3. Chapter 11 (commencing with Section 66900) is added to Part 40 of Division 5 of Title 3 of the Education Code, to read:
### SEC. 3.
CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization Article 1. General Provisions66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910. Article 2. Education Coordination and Program Operations66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose. Article 3. State Authorization Reciprocity Agreement for Distance Education66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.
CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization Article 1. General Provisions66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910. Article 2. Education Coordination and Program Operations66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose. Article 3. State Authorization Reciprocity Agreement for Distance Education66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.
CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization
CHAPTER 11. Administration of State Postsecondary Education Programs and Interstate Authorization
Article 1. General Provisions66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910.
Article 1. General Provisions
Article 1. General Provisions
66900. For purposes of this chapter, the following definitions apply:(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.(e) Portal entity means the agency, department, or office designated pursuant to Section 66910.
66900. For purposes of this chapter, the following definitions apply:
(a) Commission means the Western Interstate Commission for Higher Education, including the Western State Authorization Reciprocity Agreement steering committee of the commission, or another group of states or United States territories organized in an interstate reciprocity agreement.
(b) Interstate reciprocity agreement means an interstate reciprocity agreement for the authorization and oversight of distance education.
(c) National coordinating council means the National Council for State Authorization Reciprocity Agreements, or its successor.
(d) Participating institution means an institution of higher education with a physical presence in the state that has been approved to operate under an interstate reciprocity agreement.
(e) Portal entity means the agency, department, or office designated pursuant to Section 66910.
Article 2. Education Coordination and Program Operations66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose.
Article 2. Education Coordination and Program Operations
Article 2. Education Coordination and Program Operations
66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.
66910. The Governor shall designate a state agency, department, or office as the principal state operating and coordinating entity for postsecondary education, with all of the following duties:
(a) Implementation, coordination, and evaluation of the Master Plan for Career Education.
(b) Coordination and evaluation of postsecondary implementation of intersegmental state policies and initiatives, including, but not limited to, College and Career Access Pathways and other dual enrollment programs, the Golden State Pathways Program, the Regional K16 Education Collaboratives Grant Program, and the California Cradle-to-Career Data System.
(c) Implementation of an interstate reciprocity agreement for distance education as the portal entity if the Governor enters into an interstate reciprocity agreement pursuant to Section 66920.
66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose.
66911. It is the intent of the Legislature that the portal entity adopt as many of the duties and responsibilities of the former California Postsecondary Education Commission, created pursuant to Section 66901, as that section read on December 31, 2025, as feasible, and that the Governor consider submitting a reorganization plan pursuant to Section 8523 of the Government Code to accomplish this purpose.
Article 3. State Authorization Reciprocity Agreement for Distance Education66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.
Article 3. State Authorization Reciprocity Agreement for Distance Education
Article 3. State Authorization Reciprocity Agreement for Distance Education
66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.
66920. (a) The Governor may enter into one or more interstate reciprocity agreements through a compact on behalf of the state, upon issuing a written finding of all of the following:
(1) The interstate reciprocity agreement and its implementation will not interfere with, and does not affect, the authority of the Attorney General to enforce any statutes or regulations prohibiting consumer fraud and unfair or deceptive business practices or the authority of the state to suspend or terminate the operation in the state of any entity subject to the interstate reciprocity agreement in the case of imminent threat of consumer fraud or unfair or deceptive business practices that is being prosecuted by the Attorney General.
(2) Application and enforcement of Section 94897, with respect to out-of-state private postsecondary educational institutions, will not be construed by the compact or the national coordinating council as enforcement of a state-specific standard in violation of the interstate reciprocity agreement or any of its implementing policies or guidance.
(3) The interstate reciprocity agreement allows the state, notwithstanding any reciprocal authorization, to rescind an out-of-state postsecondary educational institutions approval to operate without cause upon providing notice of at least six months, in order to protect students, prevent misrepresentation to the public, or prevent the loss of funds paid from public resources or student tuition.
(4) Express written clarification has been provided that the interstate reciprocity agreement does not apply to a course offered onsite to students at a military installation in the state, even if the course at that physical location is offered to students in other locations.
(5) The commission and national coordinating council are committed to preserving standards and protections that have been promulgated by the federal government and are the basis of the interstate reciprocity agreement, even if those standards or protections are subsequently diminished or withdrawn by federal law or action of the United States Department of Education, and the commission is committed to developing meaningful performance metrics and frameworks for best practices with regard to individual state authorization activities.
(6) The Student Tuition Recovery Fund continued in existence pursuant to Section 94807, alone or in conjunction with comparable funds in other states or with the commission or national coordinating council, is projected to have a sufficient fund balance to cover students affected by eligible closures of postsecondary educational institutions authorized under the interstate reciprocity agreement.
(7) Within one year of the effective date of the states entry into the interstate reciprocity agreement, the Bureau for Private Postsecondary Education will establish a process to ensure that postsecondary educational institutions exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, may participate in the interstate reciprocity agreement without impacting the postsecondary educational institutions exempt status.
(8) Participating states have the necessary authority and resources to investigate complaints and take appropriate action.
(9) The interstate reciprocity agreement does not delegate independent legal authority over the state or its participating postsecondary educational institutions to any other entity or otherwise assumed by any other entity other than the state or its subdivisions.
(10) The interstate reciprocity agreement may be modified by the commission only with the approval of the Governor.
(b) This chapter shall not require the Governor to include postsecondary educational institutions that are private or for profit in an interstate reciprocity agreement.
66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.
66921. (a) A postsecondary educational institution may apply to the portal entity for approval to operate under an interstate reciprocity agreement using a standard application developed pursuant to the interstate reciprocity agreement.
(b) The portal entity may establish a reasonable fee to be paid by a participating postsecondary educational institution. The amount of the fee shall be limited to the reasonable regulatory costs incurred by the portal entity in administering this chapter.
66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:(1) Approved to operate pursuant to Section 94886 or 94874.8.(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.
66922. (a) (1) The portal entity shall enter into a memorandum of understanding with the Chancellor of the California State University, the Chancellor of the California Community Colleges, the presidents of the independent California colleges and universities as represented by the state association representing the largest number of those members, and, if appropriate, the Bureau for Private Postsecondary Education.
(2) Upon resolution of the Regents of the University of California, the portal entity shall enter into a memorandum of understanding with the President of the University of California.
(3) A memorandum of understanding executed pursuant to this subdivision shall delegate functions and responsibilities among the parties and provide for reimbursement of expenses. The memorandum of understanding shall not weaken existing student privacy and confidentiality protections.
(b) The Board of Governors of the California Community Colleges shall investigate and resolve complaints involving participating community colleges that may arise pursuant to the interstate reciprocity agreement.
(c) The Bureau for Private Postsecondary Education shall investigate and resolve complaints that may arise pursuant to the interstate reciprocity agreement involving participating private postsecondary educational institutions that are either of the following:
(1) Approved to operate pursuant to Section 94886 or 94874.8.
(2) Exempt from the California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10) pursuant to Section 94874, but elect to participate in the interstate reciprocity agreement pursuant to terms and conditions established by the Bureau for Private Postsecondary Education to implement the memorandum of understanding and this chapter.
66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.
66923. (a) The portal entity shall ensure that it and participating postsecondary educational institutions have clear and well-documented policies for addressing catastrophic events in a manner that protects students as consumers, including the protection of student records. The California Private Postsecondary Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10), and regulations adopted pursuant to that act, shall constitute those policies for participating private postsecondary educational institutions approved to operate by the Bureau for Private Postsecondary Education.
(b) The portal entity shall work cooperatively with other states in the interstate reciprocity agreement and the commission to enable the success of the interstate reciprocity agreement. Each entity identified in subdivision (a) of Section 66922 shall document all formal complaints received, complaint notifications provided to participating postsecondary educational institutions and accrediting agencies, actions taken that are commensurate with the severity of the violations, and complaint resolutions. Each entity identified in subdivision (a) of Section 66922 shall promptly report a complaint or concern to the postsecondary educational institution, the portal entity, and, where appropriate, the accrediting agency.
SEC. 4. Section 94801.5 of the Education Code is amended to read:94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).(A) Evidence of institutional accreditation.(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.(C) The agent for service of process consistent with Section 94943.5.(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(I) Any additional documentation the bureau deems necessary for consideration in the registration process.(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.(c) (1) This section does not apply to a either of the following:(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.(e) A registration with the bureau pursuant to this section shall be valid for five years.(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).(h)This section shall become operative on July 1, 2022.
SEC. 4. Section 94801.5 of the Education Code is amended to read:
### SEC. 4.
94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).(A) Evidence of institutional accreditation.(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.(C) The agent for service of process consistent with Section 94943.5.(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(I) Any additional documentation the bureau deems necessary for consideration in the registration process.(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.(c) (1) This section does not apply to a either of the following:(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.(e) A registration with the bureau pursuant to this section shall be valid for five years.(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).(h)This section shall become operative on July 1, 2022.
94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).(A) Evidence of institutional accreditation.(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.(C) The agent for service of process consistent with Section 94943.5.(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(I) Any additional documentation the bureau deems necessary for consideration in the registration process.(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.(c) (1) This section does not apply to a either of the following:(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.(e) A registration with the bureau pursuant to this section shall be valid for five years.(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).(h)This section shall become operative on July 1, 2022.
94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).(A) Evidence of institutional accreditation.(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.(C) The agent for service of process consistent with Section 94943.5.(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(I) Any additional documentation the bureau deems necessary for consideration in the registration process.(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.(c) (1) This section does not apply to a either of the following:(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.(e) A registration with the bureau pursuant to this section shall be valid for five years.(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).(h)This section shall become operative on July 1, 2022.
94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:
(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).
(A) Evidence of institutional accreditation.
(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.
(C) The agent for service of process consistent with Section 94943.5.
(D) A copy of the institutions catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.
(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.
(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.
(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.
(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.
(I) Any additional documentation the bureau deems necessary for consideration in the registration process.
(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:
(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institutions eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).
(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureaus decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.
(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.
(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:
(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.
(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.
(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.
(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institutions failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.
(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.
(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.
(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.
(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.
(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.
(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institutions registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.
(c) (1) This section does not apply to a either of the following:
(A) A higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.
(B) A higher education institution approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5, except that the institution shall comply with Section 94897.
(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.
(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to shall not operate in this state. Any institution whose registration is denied or revoked is authorized to may reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.
(e) A registration with the bureau pursuant to this section shall be valid for five years.
(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.
(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).
(h)This section shall become operative on July 1, 2022.
SEC. 5. Section 94858 of the Education Code is amended to read:94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.
SEC. 5. Section 94858 of the Education Code is amended to read:
### SEC. 5.
94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.
94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.
94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.
94858. Private postsecondary educational institution means a private entity with a physical presence in this the state that offers postsecondary education to the public for an institutional charge. charge, or, to the extent authorized by federal law, an accredited private entity with no physical presence in the state that offers and awards degrees to the public in the state by means of distance education for an institutional charge if the accredited private entity is not approved pursuant to an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.
SEC. 6. Section 94897 of the Education Code, as amended by Section 83 of Chapter 497 of the Statutes of 2024, is amended to read:94897. An institution institution, including an out-of-state institution, shall not do any of the following:(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.(i) Use a name in any manner improperly implying any of the following:(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.(2) The institution is a public institution.(3) The institution grants degrees, if the institution does not grant degrees.(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.(s) Violate Section 1788.93 of the Civil Code.(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.
SEC. 6. Section 94897 of the Education Code, as amended by Section 83 of Chapter 497 of the Statutes of 2024, is amended to read:
### SEC. 6.
94897. An institution institution, including an out-of-state institution, shall not do any of the following:(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.(i) Use a name in any manner improperly implying any of the following:(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.(2) The institution is a public institution.(3) The institution grants degrees, if the institution does not grant degrees.(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.(s) Violate Section 1788.93 of the Civil Code.(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.
94897. An institution institution, including an out-of-state institution, shall not do any of the following:(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.(i) Use a name in any manner improperly implying any of the following:(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.(2) The institution is a public institution.(3) The institution grants degrees, if the institution does not grant degrees.(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.(s) Violate Section 1788.93 of the Civil Code.(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.
94897. An institution institution, including an out-of-state institution, shall not do any of the following:(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.(i) Use a name in any manner improperly implying any of the following:(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.(2) The institution is a public institution.(3) The institution grants degrees, if the institution does not grant degrees.(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.(s) Violate Section 1788.93 of the Civil Code.(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.
94897. An institution institution, including an out-of-state institution, shall not do any of the following:
(a) Use, or allow the use of, any reproduction or facsimile of the Great Seal of the State of California on a diploma.
(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.
(c) Advertise concerning job availability, degree of skill, or length of time required to learn a trade or skill unless the information is accurate and not misleading.
(d) Advertise, or indicate in promotional material, without including the fact that the educational programs are delivered by means of distance education if the educational programs are so delivered.
(e) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.
(f) Solicit students for enrollment by causing an advertisement to be published in help wanted columns in a magazine, newspaper, or publication, or use blind advertising that fails to identify the institution.
(g) Offer to compensate a student to act as an agent of the institution with regard to the solicitation, referral, or recruitment of any person for enrollment in the institution, except that an institution may award a token gift to a student for referring an individual, provided that the gift is not in the form of money, no more than one gift is provided annually to a student, and the gifts cost is not more than one hundred dollars ($100).
(h) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.
(i) Use a name in any manner improperly implying any of the following:
(1) The institution is affiliated with any government agency, public or private corporation, agency, or association if it is not, in fact, thus affiliated.
(2) The institution is a public institution.
(3) The institution grants degrees, if the institution does not grant degrees.
(j) In any manner make an untrue or misleading change in, or untrue or misleading statement related to: a test score, grade or record of grades, attendance record, record indicating student completion, placement, employment, salaries, or financial information; a financial report filed with the bureau; information or records relating to the students eligibility for student financial aid at the institution; or any other record or document required by this chapter or by the bureau.
(k) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.
(l) Use the terms approval, approved, approval to operate, or approved to operate without stating clearly and conspicuously that approval to operate means compliance with state standards as set forth in this chapter. An institution may shall not state or imply either of the following:
(1) The institution or its educational programs are endorsed or recommended by the state or by the bureau.
(2) The approval to operate indicates that the institution exceeds minimum state standards as set forth in this chapter.
(m) Direct any individual to perform an act that violates this chapter, to refrain from reporting unlawful conduct to the bureau or another government agency, or to engage in any unfair act to persuade a student not to complain to the bureau or another government agency.
(n) Compensate an employee involved in recruitment, enrollment, admissions, student attendance, or sales of educational materials to students on the basis of a commission, commission draw, bonus, quota, or other similar method related to the recruitment, enrollment, admissions, student attendance, or sales of educational materials to students, except as provided in paragraph (1) or (2):
(1) If the educational program is scheduled to be completed in 90 days or less, the institution shall pay compensation related to a particular student only if that student completes the educational program.
(2) For institutions participating in the federal student financial aid programs, this subdivision shall not prevent the payment of compensation to those involved in recruitment, admissions, or the award of financial aid if those payments are in conformity with federal regulations governing an institutions participation in the federal student financial aid programs.
(o) Require a prospective student to provide personal contact information in order to obtain, from the institutions internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.
(p) Offer an associate, baccalaureate, masters, or doctoral degree without disclosing to prospective students before enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:
(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.
(2) A statement that reads: A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.
(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.
(q) In any manner commit fraud against, or make a material untrue or misleading statement to, a student or prospective student under the institutions authority or the pretense or appearance of the institutions authority.
(r) Charge or collect any payment for institutional charges that are not authorized by an executed enrollment agreement.
(s) Violate Section 1788.93 of the Civil Code.
(t) Require a prospective, current, or former student or employee to sign a nondisclosure agreement pertaining to their relationship to, or experience with, the institution, except that an institution may use a nondisclosure agreement to protect the institutions intellectual property and trade secrets. Any nondisclosure agreement in violation of this section is void and not enforceable at law or in equity.
(u) Fail to maintain policies related to compliance with this chapter or adhere to the institutions stated policies.
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 institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:(A) 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.(B) 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.(C) 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.(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.(E) 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.(F) 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 students economic loss.(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:(A) All cash or other consideration paid by the student to the institution.(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
SEC. 7. Section 94923 of the Education Code is amended to read:
### SEC. 7.
94923. (a) The Student Tuition Recovery Fund relieves or mitigates economic loss suffered by a student while enrolled in an institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:(A) 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.(B) 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.(C) 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.(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.(E) 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.(F) 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 students economic loss.(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:(A) All cash or other consideration paid by the student to the institution.(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
94923. (a) The Student Tuition Recovery Fund relieves or mitigates economic loss suffered by a student while enrolled in an institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:(A) 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.(B) 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.(C) 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.(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.(E) 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.(F) 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 students economic loss.(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:(A) All cash or other consideration paid by the student to the institution.(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
94923. (a) The Student Tuition Recovery Fund relieves or mitigates economic loss suffered by a student while enrolled in an institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:(A) 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.(B) 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.(C) 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.(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.(E) 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.(F) 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 students economic loss.(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:(A) All cash or other consideration paid by the student to the institution.(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.
94923. (a) The Student Tuition Recovery Fund relieves or mitigates economic loss suffered by a student while enrolled in an institution not exempt from this article pursuant to Article 4 (commencing with Section 94874), who, at the time of the students enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss.
(b) (1) The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund. The fund shall be used to provide awards to students who suffer economic loss.
(2) The following students, and any other students deemed appropriate, are eligible for payment from the Student Tuition Recovery Fund:
(A) 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.
(B) 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.
(C) 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.
(D) A student to whom an institution has been ordered to pay a refund by the bureau but has failed to do so.
(E) 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.
(F) 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 students economic loss.
(G) Notwithstanding the definition of economic loss in subdivision (f), for purposes of recovery from the Student Tuition Recovery Fund, a student who has sought legal counsel that resulted in the cancellation of one or more student loans in connection with the students Student Tuition Recovery Fund claim may seek reimbursement for legal services rendered in an amount up to five hundred dollars ($500). The bureau shall review the invoice of the legal services rendered and evidence of the cancellation of the student loan or loans, and upon verifying that cancellation, pay the claim directly to the student.
(H) If the Student Tuition Recovery Fund has a balance of twenty-five million dollars ($25,000,000), the bureau may extend coverage to a California resident student who suffers economic loss while enrolled in an institution approved by an interstate reciprocity agreement to which the state is a party pursuant to Article 3 (commencing with Section 66920) of Chapter 11 of Part 40 of Division 5.
(3) Notwithstanding the requirement that a student attend an institution that is not exempt from this article as provided in subdivision (a), the following students who either were enrolled at a California campus of a Corinthian Colleges, Inc., institution or who were California students enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution are eligible for payment from the Student Tuition Recovery Fund:
(A) A student who meets one of the eligibility requirements in paragraph (2), if the student also was residing in California and was attending a campus of a Corinthian Colleges, Inc., institution on or after January 1, 2010.
(B) A student who was enrolled as of June 20, 2014, or withdrew within 120 days of that date, and did not complete the students program at the institution.
(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 the students 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) 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) (1) For purposes of this section, economic loss includes, but is not necessarily limited to, any of the following:
(A) All cash or other consideration paid by the student to the institution.
(B) All expenses related to private or government student loans, including retail installment contracts made by the institution, paid to the student or to the institution in connection with the students attendance at the institution, including related principal, interest, and any fees.
(C) All third-party payments, including government grants, paid to the student or to the institution in connection with the students attendance at the institution.
(2) Economic loss does not include Student Tuition Recovery Fund assessments, unless the student is entitled to a full refund under Section 94919 or 94920, 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. This subdivision shall not prevent the bureau from further defining economic loss to include loss of educational opportunity.
(g) As a condition of the bureau satisfying a student loan obligation on behalf of a Student Tuition Recovery Fund applicant, the loan servicer or debtholder shall submit a letter stating that the servicer or holder will no longer collect on the debt and shall report the debt as paid in full to all credit reporting agencies. The bureau shall retain a copy of that letter and provide the original to the applicant.
(h) Except as provided in subdivision (i), the bureau shall require a student seeking reimbursement from the Student Tuition Recovery Fund to file a written application that shall be received by the bureau no later than four years after the date of the action that made the student eligible for recovery from the Student Tuition Recovery Fund.
(i) Any student whose loan is revived by a loanholder or debt collector after a period of noncollection by the holder or collector may, at any time, file a written application for recovery from the Student Tuition Recovery Fund for the debt that would have been otherwise eligible for recovery under this section.