CHAPTER 8. Private Postsecondary Institutions [94800. - 94950.]
Chapter 8 added by Stats. 2009, Ch. 310, Sec. 6.
§§ 94800–94950 · 183 sections
ARTICLE 1. General Provisions §§ 94800–94801.7 · 5 sections
- § 94800 This chapter shall be known, and may be cited, as the California Private Postsecondary Education Act of 2009.
- § 94800.5 Whenever a reference is made to the former Private Postsecondary Education and Student Protection Act, the former Private Postsecondary and Vocational…
- § 94801 The Legislature finds and declares all of the following: (a) In 2013, more than 300,000 Californians attended more than 1,100 private postsecondary schools in…
- § 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…
- § 94801.7 (a) The bureau may establish through regulation thresholds of California-based activity that constitute limited physical presence, with those institutions…
ARTICLE 2. Transition Provisions §§ 94802–94809.6 · 10 sections
- § 94802 An institution that had a valid approval to operate on June 30, 2007, issued by the former Bureau for Private Postsecondary and Vocational Education pursuant…
- § 94803 The bureau shall, by emergency regulation, amend, and repeal as necessary, the regulations, as they read on June 30, 2007, in Division 7.5 (commencing with…
- § 94804 (a) Each unresolved matter submitted to the former Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, shall be deemed to remain…
- § 94805 For the performance of the duties and exercise of the powers vested in the bureau, the bureau shall have possession and control of all records, papers,…
- § 94806 The Private Postsecondary and Vocational Education Administration Fund established by former Section 94932 of the Education Code, and extended by Chapter 635…
- § 94807 The Student Tuition Recovery Fund established by former Section 94944 of the Education Code, and extended by Chapter 635 of the Statutes of 2007, is continued…
- § 94808 (a) Any Student Tuition Recovery Fund claims received by the former Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, that were…
- § 94809 (a) An institution that had an application for an approval to operate pending with the former Bureau for Private Postsecondary and Vocational Education on June…
- § 94809.5 Notwithstanding any other provision of law: (a) For any claims that a student had based on a violation of the Private Postsecondary and Vocational Education…
- § 94809.6 (a) Notwithstanding the inoperative status or repeal of the former Private Postsecondary and Vocational Education Reform Act of 1989 on or after July 1, 2007,…
ARTICLE 3. Definitions §§ 94810–94871 · 64 sections
- § 94810 Unless the context requires otherwise, the definitions set forth in this article govern the construction of this chapter.
- § 94812 “Academic year” means a period, including a minimum of 30 weeks of instructional time, in which a full-time student attending an institution that measures…
- § 94813 “Accredited” means an institution is accredited by an accrediting agency recognized by the United States Department of Education.
- § 94814 “Accrediting agency” is an agency recognized by the United States Department of Education.
- § 94815 “Annual report” means the yearly report required to be filed by institutions.
- § 94816 “Applicant” means a person, as defined in Section 94855, who has submitted an application to the bureau for an approval to operate or for a renewal of an…
- § 94817 “Approval to operate” or “approval” means the authorization pursuant to this chapter to offer to the public and to provide postsecondary educational programs,…
- § 94817.5 “Approved to operate” or “approved” means that an institution has received authorization pursuant to this chapter to offer to the public and to provide…
- § 94818 “Avocational education” means education offered for the purpose of personal entertainment, pleasure, or enjoyment.
- § 94819 “Branch campus” means a site other than the main campus or a satellite location.
- § 94820 “Bureau” means the Bureau for Private Postsecondary Education in the Department of Consumer Affairs.
- § 94821 “Change in business organization form” means a change of a business organization’s original form, including, for example, a situation in which a sole…
- § 94822 “Change in control” means a change in the ownership of an institution in which a person who previously did not own at least 25 percent of the stock or interest…
- § 94823 “Change in ownership” means the acquisition by a person of more than 50 percent of an interest in or stock of a parent company.
- § 94823.5 “Change of location” means a move or relocation more than 10 miles from the site at which the institution offers instruction.
- § 94824 “Class day” means a day a student is scheduled to attend a class session, or for students receiving instruction through distance education, any calendar day…
- § 94825 “Class session” means part of a class day that an institution conducts instruction in a particular subject.
- § 94826 “Commence operations” means an institution has begun to provide educational programs.
- § 94827 “Continuing education” means instruction that does not lead to a degree in subjects that licensees are required to take solely for the purpose of continued…
- § 94828 “Curriculum” means an organized set of courses or modules of instruction that are prerequisites to the award of a degree or diploma.
- § 94829 “Default” means failure of a borrower and endorser, if any, to make an installment payment for a loan received under the federal student financial aid programs…
- § 94830 “Degree” means a recognized educational credential awarded by an institution that signifies satisfactory completion of the requirements of a postsecondary…
- § 94831 “Degree title” means the designated subject area of the educational program that appears on the face of the document awarded to a student.
- § 94832 “Diploma” means a recognized educational credential, other than a degree, awarded by an institution that signifies satisfactory completion of the requirements…
- § 94833 “Director” means the Director of Consumer Affairs.
- § 94834 “Distance education” means transmission of instruction to students at a location separate from the faculty.
- § 94835 “Document of record” means any document required to be maintained by this chapter.
- § 94836 “Educational materials” means textbooks, supplies, implements, tools, machinery, computers, electronic devices, or other goods related to any education,…
- § 94837 “Educational program” means a planned sequence composed of a set of related courses or modules, or a single course or module if not offered as a component of a…
- § 94838 “Educational program approval” means authorization by the bureau, another government agency of this state, or a federal government agency, to provide…
- § 94839 “Enrollment” means the execution of an enrollment agreement.
- § 94840 “Enrollment agreement” means a written contract between a student and institution concerning an educational program.
- § 94841 “Faculty” means the instructional staff of an institution, whether these persons are employees or independent contractors.
- § 94842 “Graduate” means an individual who has been awarded a degree or diploma.
- § 94843 “Institution” means any private postsecondary educational institution, including its branch campuses and satellite locations.
- § 94844 “Institutional charges” means charges for an educational program paid directly to an institution.
- § 94845 “Institution manager” means an individual who is a member of an institution’s management.
- § 94846 “Instruction” means an institution’s specific, formal arrangements in which its faculty present a part of the curriculum.
- § 94847 “License and examination preparation” means instruction designed to assist students to prepare for an examination for licensure. “License and examination…
- § 94848 “Licensure” includes any license, certificate, permit, or similar credential that a person must hold to lawfully engage in a profession, occupation, trade, or…
- § 94849 “Main campus” means the institution’s sole or primary teaching location.
- § 94850 “Noninstitutional charges” means charges for an educational program paid directly to an entity other than an institution that are specifically required for…
- § 94850.2 “Nonprofit corporation” means an institution to which contributions have been determined by the United States Internal Revenue Service to be tax-deductible…
- § 94850.5 “Out-of-state private postsecondary educational institution” means a private entity without a physical presence in this state that offers distance education to…
- § 94851 “Owner” means an individual in the case of a sole proprietorship, partners in a partnership, members in a limited liability company, or shareholders in a…
- § 94852 “Ownership” means a legal or equitable interest in an institution, including ownership of assets or stock.
- § 94853 “Parent company” means a partnership, limited liability company, or corporation that owns more than 50 percent of the stock or interest in an institution.
- § 94854 “Period of attendance” means a semester, quarter, or trimester for educational programs measured in credit hours and the entire educational program if measured…
- § 94855 “Person” means a natural person or a business organization, irrespective of its form.
- § 94856 “Person in control” means a person who, by the authority or conduct of their position, directs the management of an institution.
- § 94857 “Postsecondary education” means a formal institutional educational program whose instruction is designed primarily for students who have completed or…
- § 94858 “Private postsecondary educational institution” means a private entity with a physical presence in this state that offers postsecondary education to the public…
- § 94858.5 “Public institution of higher education” means any of the following: (a) An institution that meets the definition of subdivision (a) of Section 66010,…
- § 94859 “Recruiter” means an employee of an institution whose principal job responsibilities are the recruitment of students other than on the institution’s premises.
- § 94860 “Recruitment” means actions taken by recruiters seeking enrollment of students.
- § 94861 “Reporting period” means the institution’s fiscal year or any yearly period designated by the bureau to be covered in the institution’s annual report.
- § 94862 “Satellite location” means an auxiliary classroom or teaching site within 50 miles of the branch or main location.
- § 94865 “Site” means a main or branch campus or satellite location.
- § 94866 “Teach-out” means the arrangements an institution makes for its students to complete their educational programs when the institution or an educational program…
- § 94867 “Third-party payer” means an employer, government program, or other entity that pays a student’s total charges when no separate agreement for the repayment of…
- § 94868 “To offer to the public” means to advertise, publicize, solicit, or recruit.
- § 94869 “To operate” means to establish, keep, or maintain any facility or location in this state where, or from which, or through which, postsecondary educational…
- § 94870 “Total charges” means the sum of institutional and noninstitutional charges.
- § 94871 “Year” means a calendar year.
ARTICLE 4. Exemptions §§ 94874–94874.9 · 7 sections
- § 94874 Except as provided in Sections 94874.2, 94874.7, and 94927.5, the following are exempt from this chapter: (a) An institution that offers solely avocational or…
- § 94874.1 (a) The bureau shall not verify the exemption from this chapter of, or contract for the complaint handling for, a nonprofit institution that operated as a…
- § 94874.2 Beginning January 1, 2016, an institution that is approved to participate in veterans’ financial aid programs pursuant to Section 21.4253 of Title 38 of the…
- § 94874.5 An institution that is otherwise exempt from this chapter shall comply with the requirements of Section 94927.5.
- § 94874.7 The bureau shall establish, by regulation, a process pursuant to which an institution that is exempt from this chapter may request, and obtain, from the bureau…
- § 94874.8 (a) An institution exempt from all or part of this chapter pursuant to subdivision (i) of Section 94874 or Section 94874.1 may apply to the bureau for an…
- § 94874.9 (a) An independent institution of higher education, as defined in Section 66010, that is exempt from this chapter pursuant to subdivision (i) of Section 94874…
ARTICLE 5. Bureau Powers and Duties §§ 94875–94884 · 9 sections
- § 94875 The Bureau for Private Postsecondary Education, as established by Section 6 of Chapter 635 of the Statutes of 2007, is continued in existence and shall…
- § 94876 (a) The powers and duties set forth in this chapter are vested in the Director of Consumer Affairs, who may delegate them to a bureau chief, subject to this…
- § 94877 (a) The bureau shall adopt and shall enforce regulations to implement this chapter pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with…
- § 94878 (a) The bureau shall establish an internet website that includes at least all of the following information: (1) An explanation of the bureau’s scope of…
- § 94880 (a) There is within the bureau a 12-member advisory committee. The members of the committee shall be appointed as follows: (1) Three members, who shall have a…
- § 94881 The bureau may conduct workshops to provide applicants and institutions information on application processes, compliance with this chapter, best practices for…
- § 94882 The bureau may empanel visiting committees to assist in evaluating an institution’s application for an approval to operate. The members of visiting committees…
- § 94883 (a) Any individual serving on a visiting committee who provides information to the bureau, or its staff, in the course of evaluating any institution, or who…
- § 94884 The bureau is subject to Section 27 of the Business and Professions Code.
ARTICLE 6. Approval to Operate §§ 94885–94892 · 10 sections
- § 94885 (a) The bureau shall adopt by regulation minimum operating standards for an institution that shall reasonably ensure that all of the following occur: (1) The…
- § 94885.5 (a) If an institution that has not been accredited by an accrediting agency recognized by the United States Department of Education seeks to offer one or more…
- § 94885.7 (a) When an institution offering at least one degree program has ceased to be accredited by an accrediting agency recognized by the United States Department of…
- § 94886 Except as exempted in Article 4 (commencing with Section 94874) or in compliance with the transition provisions in Article 2 (commencing with Section 94802), a…
- § 94887 An approval to operate shall be granted only after an applicant has presented sufficient evidence to the bureau, and the bureau has independently verified the…
- § 94888 (a) The bureau shall adopt by regulation both of the following: (1) The process and procedures whereby an institution seeking approval to operate may apply for…
- § 94889 Except as provided in subdivision (b) of Section 94890, an approval to operate shall be for a term of five years.
- § 94890 (a) (1) The bureau shall grant an institution that is accredited an approval to operate by means of its accreditation. (2) The bureau shall adopt by regulation…
- § 94891 (a) The bureau shall adopt by regulation the process and procedures whereby an institution may obtain a renewal of an approval to operate. (b) To be granted a…
- § 94892 If an agency of this state other than the bureau or of the federal government provides an approval to offer an educational program and the institution already…
ARTICLE 6.5. Labor Market Outcome Data Reporting § 94892.6 · 1 section
- § 94892.6 (a) (1) An institution approved to operate by the bureau shall collect and retain all of the following data: (A) For each graduate completing a program on or…
ARTICLE 7. Substantive Changes to an Approval to Operate §§ 94893–94896 · 4 sections
- § 94893 If an institution intends to make a substantive change to its approval to operate, the institution shall receive prior authorization from the bureau. Except as…
- § 94894 The following changes to an approval to operate are considered substantive changes and require prior authorization: (a) A change in educational objectives,…
- § 94895 The bureau shall, by January 1, 2011, adopt by regulation the process and procedures whereby an institution shall seek authorization for substantive changes to…
- § 94896 (a) An institution that has been granted an approval to operate by means of accreditation shall only make a substantive change in accordance with the…
ARTICLE 8. Fair Business Practices §§ 94897–94899.5 · 4 sections
- § 94897 An 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…
- § 94898 (a) An institution shall not merge classes unless all of the students have received the same amount of instruction. This subdivision does not prevent the…
- § 94899 (a) If an institution offers an educational program in a profession, occupation, trade, or career field that requires licensure in this state, the institution…
- § 94899.5 (a) Institutions that offer short-term programs designed to be completed in one term or four months, whichever is less, may require payment of all tuition and…
ARTICLE 9. Recordkeeping §§ 94900–94900.7 · 3 sections
- § 94900 (a) An institution shall maintain records of the name, address, e-mail address, and telephone number of each student who is enrolled in an educational program…
- § 94900.5 An institution shall maintain, for a period of not less than five years, at its principal place of business in this state, complete and accurate records of all…
- § 94900.7 The recordkeeping requirements of this article shall not apply to an institution that is accredited, if the recordkeeping requirements of the accrediting…
ARTICLE 10. Recruiters § 94901 · 1 section
- § 94901 (a) An institution’s recruiters shall be employees. (b) (1) An institution shall issue identification to each recruiter identifying the recruiter and the…
ARTICLE 11. Enrollment Agreements and Disclosures §§ 94902–94913 · 13 sections
- § 94902 (a) A student shall enroll solely by means of executing an enrollment agreement. The enrollment agreement shall be signed by the student and by an authorized…
- § 94903 A student may not waive any term or receipt of any disclosure required by this article.
- § 94905 (a) During the enrollment process, an institution offering educational programs designed to lead to positions in a profession, occupation, trade, or career…
- § 94906 (a) An enrollment agreement shall be written in language that is easily understood. If English is not the student’s primary language, and the student is unable…
- § 94907 An institution shall not require a student to invoke an internal institutional dispute procedure before enforcing any contractual or other legal rights or…
- § 94908 Any information or statement required by this article to be included in the catalog, School Performance Fact Sheet, or enrollment agreement shall be printed in…
- § 94909 (a) Except as provided in subdivision (d), before enrollment, an institution shall provide a prospective student, either in writing or electronically, with a…
- § 94910 Except as provided in subdivision (d) of Section 94909 and Section 94910.5, prior to enrollment, an institution shall provide a prospective student with a…
- § 94910.5 (a) Notwithstanding any other law, a law school that meets the criteria of subdivision (b) shall be deemed to satisfy the requirements of this chapter…
- § 94911 An enrollment agreement shall include, at a minimum, all of the following: (a) The name of the institution and the name of the educational program, including…
- § 94912 Prior to the execution of an enrollment agreement, the information required to be disclosed pursuant to subdivisions (a) to (d), inclusive, of Section 94910…
- § 94912.5 (a) By January 1, 2020, and permanently thereafter, each institution subject to this chapter that participates in federal student financial aid programs,…
- § 94913 (a) An institution that maintains an internet website shall provide on that internet website the current version of all of the following: (1) The school…
ARTICLE 12. Consumer Loans to Students §§ 94916–94918.5 · 4 sections
- § 94916 An institution extending credit or lending money to an individual for institutional and noninstitutional charges for an educational program shall cause any…
- § 94917 A note, instrument, or other evidence of indebtedness relating to payment for an educational program is void and not enforceable unless, at the time of…
- § 94918 In making consumer loans to students, an institution shall also comply with the requirements of the Federal Truth in Lending Act pursuant to Title 15 of the…
- § 94918.5 (a) The bureau’s administration of this article or Article 13 (commencing with Section 94919) shall not preclude the authority of the Department of Financial…
ARTICLE 13. Cancellations, Withdrawals, and Refunds §§ 94919–94922 · 4 sections
- § 94919 (a) An institution that participates in the federal student financial aid programs complies with this article by complying with applicable regulations of the…
- § 94920 An institution that does not participate in the federal student financial aid programs shall do all of the following: (a) The institution shall advise each…
- § 94921 An institution offering an educational program for which the refund calculations set forth in this article cannot be utilized because of the unique way in…
- § 94922 A student may not waive any provision of this article.
ARTICLE 14. Student Tuition Recovery Fund §§ 94923–94925 · 3 sections
- § 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…
- § 94924 (a) The bureau shall determine the amount of Student Tuition Recovery Fund assessments to be collected for each student. (b) All assessments collected pursuant…
- § 94925 (a) The amount in the Student Tuition Recovery Fund shall not exceed twenty-five million dollars ($25,000,000) at any time. (b) If the bureau has temporarily…
ARTICLE 15. Orderly Institutional Closure and Teach-outs §§ 94926–94927.5 · 4 sections
- § 94926 At least 30 days prior to closing, the institution shall notify the bureau in writing of its intention to close. The notice shall be accompanied by a closure…
- § 94926.5 (a) An institution’s approval to operate is automatically terminated on the date of closure or when its exemption from this chapter has been verified by the…
- § 94927 An institution shall be considered in default of the enrollment agreement when an educational program is discontinued or canceled or the institution closes…
- § 94927.5 (a) Prior to closing, an institution shall provide the bureau with the following: (1) Copies of pertinent student records, including transcripts, in hardcopy…
ARTICLE 16. Completion, Placement, Licensure, and Salary Disclosure Requirements §§ 94928–94929.8 · 5 sections
- § 94928 As used in this article, the following terms have the following meanings: (a) “Cohort population” means the number of students that began a program on a cohort…
- § 94929 (a) An institution shall annually report to the bureau, as part of the annual report, and publish in its School Performance Fact Sheet, the completion rate for…
- § 94929.5 (a) An institution shall annually report to the bureau, as part of the annual report, and shall publish in its School Performance Fact Sheet, all of the…
- § 94929.7 (a) The information used to substantiate the rates and information calculated pursuant to Sections 94929 and 94929.5 shall do both of the following: (1) Be…
- § 94929.8 (a) On or before January 1, 2011, and pursuant to Section 94877, the bureau shall establish, by regulation, a uniform method for institutions to obtain…
ARTICLE 17. Fees §§ 94930–94931.5 · 4 sections
- § 94930 (a) All fees collected pursuant to this article, including any interest on those fees, shall be deposited in the Private Postsecondary Education Administration…
- § 94930.5 Subject to Section 94930, an institution shall remit to the bureau for deposit in the Private Postsecondary Education Administration Fund the following fees,…
- § 94931 (a) A fee that is not paid on or before the 30th calendar day after the due date for the payment of the fee shall be subject to a 25 percent late payment…
- § 94931.5 (a) The bureau may propose modifications to the fee schedule in Section 94930.5 to the Governor and the Legislature to add or delete categories of fees related…
ARTICLE 18. Compliance, Enforcement, Process, and Penalties §§ 94932–94945 · 20 sections
- § 94932 The bureau shall determine an institution’s compliance with the requirements of this chapter. The bureau shall have the power to require reports that…
- § 94932.5 (a) As part of its compliance program, the bureau shall perform announced and unannounced inspections of institutions at least every five years. (b) On or…
- § 94933 The bureau shall provide an institution with the opportunity to remedy noncompliance, impose fines, place the institution on probation, or suspend or revoke…
- § 94933.5 As much as is practicable, the bureau shall seek to resolve instances of noncompliance, including the use of alternative dispute resolution procedures in…
- § 94934 (a) As part of the compliance program, an institution shall submit an annual report to the bureau, under penalty of perjury, signed by a responsible corporate…
- § 94934.5 (a) An institution with an approval to operate that knows that it is being investigated by an oversight entity other than the bureau shall report that…
- § 94935 (a) Bureau staff who, during an inspection of an institution, detect a violation of this chapter, or regulations adopted pursuant to this chapter, that is a…
- § 94936 (a) As a consequence of an investigation, which may incorporate any materials obtained or produced in connection with a compliance inspection, and upon a…
- § 94937 (a) As a consequence of an investigation, which may incorporate any materials obtained or produced in connection with a compliance inspection, and upon a…
- § 94938 (a) If the bureau determines that it needs to make an emergency decision to protect students, prevent misrepresentation to the public, or prevent the loss of…
- § 94939 (a) The bureau may bring an action for equitable relief for any violation of this chapter. The equitable relief may include restitution, a temporary…
- § 94940 As consequence of an adverse administrative action against an institution, the institution may request a hearing pursuant to Article 10 (commencing with…
- § 94941 (a) An individual who has cause to believe that an institution has violated this chapter, or regulations adopted pursuant to this chapter, may file a complaint…
- § 94942 (a) The bureau shall establish a toll-free telephone number staffed by a bureau employee by which a student or a member of the public may file a complaint…
- § 94943 The following violations of this chapter are public offenses: (a) Knowingly operating a private postsecondary institution without an approval to operate is an…
- § 94943.5 An institution shall designate and maintain an agent for service of process within this state, and provide the name, address, and telephone number of the agent…
- § 94944 Notwithstanding any other law, the bureau shall cite any person, and that person shall be subject to a fine not to exceed one hundred thousand dollars…
- § 94944.5 Each institution subject to this chapter shall be deemed to have authorized its accrediting agency to provide the bureau, the Attorney General, any district…
- § 94944.6 Within 30 days of receiving a written notice from the bureau, the Attorney General, district attorney, city attorney, or the Student Aid Commission pursuant to…
- § 94945 (a) This chapter does not limit or preclude the enforcement of rights or remedies under any other applicable statute or law. (b) This chapter does not limit or…
ARTICLE 19. Severability § 94946 · 1 section
- § 94946 The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other…
ARTICLE 20. Reporting § 94948 · 1 section
- § 94948 In addition to any other reporting requirements under this chapter, the director shall provide written updates to the Legislature every six months and shall…
ARTICLE 20.6. Office of Student Assistance and Relief §§ 94949.7–94949.8 · 5 sections
- § 94949.7 There is hereby established an Office of Student Assistance and Relief for the purpose of advancing and promoting the rights of prospective students, current…
- § 94949.71 (a) The duties of the office shall be vested in a chief, who shall be appointed by the director. The chief, and each staff employee of the office, shall have…
- § 94949.72 Duties of the office shall include all of the following: (a) Conducting outreach and providing information and assistance to students who have been affected by…
- § 94949.73 (a) The office shall provide individualized assistance to students to relieve or mitigate the economic and educational opportunity loss incurred by those…
- § 94949.8 (a) An institution that qualifies as a public institution of higher education pursuant to subdivision (b) of Section 94858.5, that is operated by another…
ARTICLE 21. Termination § 94950 · 1 section
- § 94950 This chapter shall remain in effect only until January 1, 2027, and as of that date is repealed.