CHAPTER
16. Private Postsecondary Institutions
Article
1. General Provisions
9000.
This chapter shall be known, and may be cited, as the California Private Postsecondary Education Act of 2007.9001.
Whenever a reference is made to the former Private Postsecondary Education and Student Protection Act, the former Private Postsecondary and Vocational Education Reform Act of 1989, or the former Chapter 7 (commencing with Section 94700) of the Education Code, as it read on June 30, 2007, by the provisions of any statute or regulation, it is to be construed as referring to the provisions of this chapter.
Article
2. Transition Provisions
9002.
(a) 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 to former Chapter 7 (commencing with Section 94700) of Part 59 of Division 10 of Title 3 of the Education Code, as it read on June 30, 2007, shall maintain that approval under this chapter. For the purposes of this chapter, the approval shall be valid for two calendar years after the expiration date of the approval, as it read on June 30, 2007.(b) Applications to renew an approval to operate that had been pending action before the former Bureau for Private Postsecondary and Vocational Education on June 30, 2007, shall be deemed processed as follows:
(1) Applications received prior to January 1, 2006, shall be granted an approval
to operate until 2009 to coincide with the anniversary date of the current approval to operate date.
(2) Applications received after January 1, 2006, shall be granted an approval to operate until 2010 to coincide with the anniversary date of the current approval to operate.
9003.
The bureau shall, by emergency regulation amend the regulations, as they read on June 30, 2007, in Division 7.5 (commencing with Section 70000) of Title 5 of the California Code of Regulations, to conform to this chapter no later than February 1, 2008. Notwithstanding any other provision of law, these emergency regulations shall become permanent on July 1, 2008.9004.
The bureau shall succeed to any and all rights and claims of the former Bureau for Private Postsecondary and Vocational Education that may have been asserted in a judicial or administrative action pending on July 1, 2007, and shall take any action reasonably necessary to assert and realize those rights and claims in its own name.9005.
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, offices, equipment, supplies, or other property, real or personal, held for the benefit or use by the former Bureau for Private Postsecondary and Vocational Education.9006.
The Private Postsecondary and Vocational Education Administration Fund established by former Section 94932 of the Education Code, and extended by Chapter 67 of the Statutes of 2007, is continued in existence, and is renamed the Private Postsecondary Education Administration Fund.9007.
The Student Tuition Recovery Fund established by former Section 94944 of the Education Code, and extended by Chapter 67 of the Statutes of 2007, is continued in existence.9008.
Any Student Tuition Recovery Fund claims received by the former Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, that were not approved and paid, shall be processed by the bureau in accordance with this chapter.9009.
All applications, excluding Student Tuition Recovery Fund and reapproval applications, that were pending with the former bureau as of July 1, 2007, shall be deemed approved.9009.5.
(a) Notwithstanding any other provision of law, any claim or cause of action in any manner based on the former Private Postsecondary and Vocational Education Reform Act of 1989 that arose on or before June 30, 2007, shall have been commenced on or before June 30, 2007. Notwithstanding the inoperative status or repeal of the act on or after July 1, 2007, any claim or cause of action in any manner based on the act that was commenced on or before June 30, 2007, whether or not reduced to a final judgment, shall be preserved, and any remedy that was or could have been ordered to redress a violation of the act on or before June 30, 2007, may be ordered or maintained thereafter. If a final judgment was obtained in an action commenced on or after July 1, 2007, under the authority of Chapter 67 of the Statutes of 2007, then the final judgment and any
legal remedy that was or could be maintained on or after July 1, 2007, under that statute, shall be preserved and maintained thereafter.(b) The rights, obligations, claims, causes of action, and remedies described in subdivision (a) shall be determined by the provisions of the former Private Postsecondary and Vocational Education Reform Act of 1989 in effect on or before June 30, 2007, notwithstanding the inoperative status or repeal of the former Private Postsecondary and Vocational Education Reform Act of 1989 on or after July 1, 2007.
9010.
Unless the context requires otherwise, the definitions set forth in this article govern the construction of this chapter.9011.
“Ability-to-benefit student” means a student that does not have a certificate of graduation from a school providing secondary education, or a recognized equivalent of that certificate.9012.
“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 educational program length in credit hours completes 24 semester or trimester hours or 36 quarter hours, or at an institution that measures educational program length in clock hours completes at least 900 clock hours.9013.
“Accredited” means an institution is recognized or approved by an accrediting agency recognized by the United States Department of Education.9014.
“Accrediting agency” is an agency recognized by the United States Department of Education.9015.
“Annual report” means the yearly report required to be filed by institutions.9016.
“Applicant” means an institution that has submitted an application to the bureau for an approval to operate or for a renewal of an approval to operate.9017.
“Approval to operate” means the authorization to offer to the public and to provide postsecondary educational programs, as well as the written document issued to an institution signifying its approval to operate.9018.
“Avocational education” means education offered for the purpose of personal entertainment, pleasure, or enjoyment.9019.
“Branch campus” means a site other than the main campus or a satellite location.9020.
“Bureau” means the Bureau for Private Postsecondary Education in the Department of Consumer Affairs.9020.5.
“Certified” means having passed an examination that attests to the quality and level of knowledge by a qualified certification authority or organization that is not affiliated with an institution.9021.
“Change in business organization form” means a change of a business organization’s original form, including, for example, a situation in which a sole proprietorship becomes a partnership or corporation, or when a business organization becomes a nonprofit public benefit corporation or forms a nonprofit public benefit corporation as a subsidiary to provide the educational programs for which the business organization has an approval to operate.9022.
“Change of location” means a move or relocation more than 10 miles from the site at which the institution offers instruction.9023.
“Change of ownership” means the acquisition by a person of more than 50 percent of an interest in or stock of a parent company.9024.
“Class day” means a day a student is scheduled to attend class session, or for students receiving instruction through distance education, any calendar day except Saturday, Sunday, or any holiday enumerated in Section 6700 of the Government Code.9025.
“Class session” means part of a class day that an institution conducts instruction in a particular subject.9026.
“Commence operations” means an institution has begun to provide educational programs.9027.
“Continuing education” means instruction in subjects that licensees are required to take solely for the purpose of continued licensure, or to enhance their skills and knowledge within their particular profession, occupation, trade, or career field.9028.
“Curriculum” means an organized set of courses or modules of instruction that are prerequisites to the award of a degree or diploma.9029.
“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 when due, or to meet other terms of the promissory note, provided that this failure persists for 270 days if payment is due monthly or 330 days if payment is due less frequently.9030.
“Degree” means a recognized educational credential awarded by an institution that signifies satisfactory completion of the requirements of a postsecondary educational program at the associate’s level or above.9031.
“Degree title” means the designated subject area of the educational program that appears on the face of the document awarded to a student.9032.
“Diploma” means a recognized educational credential, other than a degree, awarded by an institution that signifies satisfactory completion of the requirements of a postsecondary educational program below the associate’s level. A diploma is also known as a certificate.9033.
“Director” means the Director of Consumer Affairs.9034.
“Distance education” means transmission of instruction to students at a location separate from the institution.9035.
“Document of record” means any document required to be maintained by this chapter.9036.
“Educational materials” means textbooks, supplies, implements, tools, machinery, computers, electronic devices, or other goods related to any education, training, or experience required for participation in an educational program.9037.
“Educational program” means a planned sequence composed of a single course or module, or set of related courses or modules, that provides the education, training, skill, and experience leading to the award of a recognized educational credential such as a degree or diploma.9038.
“Educational program approval” means authorization by the bureau, another government agency of this state or a federal government agency, to provide educational programs, and is an element of an approval to operate.9039.
“Enrollment” means the execution of an enrollment agreement.9040.
“Enrollment agreement” means a written contract between a student and institution concerning an educational program.9041.
“Faculty” means the instructional staff of an institution, whether these persons are employees or independent contractors.9042.
“Graduate” means an individual that has been awarded a degree or diploma.9043.
“Institution” means any private postsecondary educational institution, including its branch campuses and satellite locations.9044.
“Institutional charges” means charges for an educational program paid directly to an institution.9045.
“Institution manager” means an individual who is a member of an institution’s management.9046.
“Instruction” means an institution’s specific, formal arrangements in which its faculty present a part of the curriculum.9047.
“License and examination preparation” means instruction designed to assist students to prepare for an examination for licensure, or is offered for the sole purpose of providing continuing education in subjects licensees are required to take as a condition of continued licensure.9048.
“Licensure” includes any license, certificate, permit, or similar credential that a person must hold to lawfully engage in a profession, occupation, trade, or career field.9049.
“Main campus” means the institution’s sole or primary teaching location.9050.
“Noninstitutional charges” means charges for an educational program paid to an entity other than an institution that are specifically required for participation in an educational program.9051.
“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 corporation.9052.
“Ownership” means a legal or equitable interest in an institution, including ownership of assets or stock.9053.
“Parent company” means a partnership, limited liability company, or corporation that owns more than 50 percent of the stock or interest in an institution.9054.
“Period of attendance” means a semester, quarter, or trimester for educational programs measured in credit hours and the entire educational program if measured in clock hours.9055.
“Person” means a natural person or a business organization, irrespective of its form.9056.
“Person in control” means a person who by their position’s authority or conduct directs the management of an institution.9057.
“Postsecondary education” means a formal institutional educational program whose curriculum is designed primarily for students who have completed or terminated their secondary education or are beyond the compulsory age of secondary education, including programs whose purpose is academic, vocational, or continuing professional education.9058.
“Private postsecondary educational institution” means a private entity with a physical presence in this state that offers postsecondary education to the public for an institutional charge.9059.
“Recruiter” means an employee of an institution whose principal job responsibilities are the recruitment of students other than on the institution’s premises.9060.
“Recruitment” means actions taken by recruiters seeking enrollment of students.9061.
“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.9062.
“Satellite location” means an auxiliary classroom or teaching site within 50 miles of the branch or main location.9063.
“Satisfactory academic progress” means the qualitative and quantitative measures an institution uses to assess a student’s academic progress, including progress towards the completion of their educational program within 150 percent of the published length of the educational program.9064.
“Shift in control” means a change in the ownership of an institution where a person that previously did not own at least 25 percent of the stock or interest in an institution or its parent company, acquires ownership of at least 25 percent of the stock or interest in the institution or its parent company.9065.
“Site” means a main or branch campus or satellite location.9066.
“Teach-out” means the arrangements an institution makes for its students to complete their educational programs when the institution ceases to operate.9067.
“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 the charges exists between the third-party payer and the student.9068.
“To offer to the public” means to advertise, publicize, solicit, or recruit.9069.
“To operate” means to establish, keep, or maintain any facility or location in this state where, from, or through which postsecondary educational programs are provided.9070.
“Total charges” means the sum of institutional and noninstitutional charges.9071.
“Vocational associate’s degree” means an associates degree awarded to students in an educational program consisting of instruction in preparation for employment in a profession, occupation, trade, or career field.9072.
“Vocational diploma program” means a diploma awarded to students in an educational program consisting of instruction in preparation for employment in a profession, occupation, trade, or career field.9073.
“Year” means a calendar year.9074.
The following are exempt from this chapter:(a) An institution that offers solely avocational or recreational educational programs.
(b) An institution offering educational programs sponsored by a bona fide trade, business, professional, or fraternal organization, solely for that organization’s membership.
(c) A postsecondary educational institution established, operated, and governed by the federal government or by this state, or its political subdivisions.
(d) An institution offering continuing education where the institution or the program is approved, certified, or sponsored by any of the following:
(1) A government agency, other than the bureau, that licenses persons in a particular profession, occupation, trade, or career
field.
(2) A state-recognized professional licensing body, such as the State Bar of California, that licenses persons in a particular profession, occupation, trade, or career field.
(3) A bona fide trade, business, or professional organization.
(e) (1) An institution owned, controlled, and operated and maintained by a bona fide church, religious denomination, or religious organization comprised of multidenominational members of the same well-recognized religion, lawfully operating as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110) of Division 2 of Title 1 of the Corporations Code, that meets all of the following requirements:
(A) The instruction is limited to the principles of that church, religious denomination, or religious organization, or to courses offered pursuant to Section 2789 of Business and Professions Code.
(B) The diploma
or degree is limited to evidence of completion of that education.
(2) An institution operating under this subdivision shall offer degrees and diplomas only in the beliefs and practices of the church, religious denomination, or religious organization.
(3) An institution operating under this subdivision shall not award degrees in any area of physical science.
(4) Any degree or diploma granted under these provisions shall contain on its face, in the written description of the title of the degree being conferred, a reference to the theological or religious aspect of the degree’s subject area.
(5) A degree awarded under this subdivision shall reflect the nature of the degree title, such as “associate of religious studies,” or “bachelor of religious studies,” or “master of divinity,” or “doctor of divinity.”
(6) The use of the degree titles “associate of arts” or “associate of
science,” “bachelor of arts” or “bachelor of science,” “master of arts” or “master of science,” or “doctor of philosophy” or “Ph.D.” shall only be awarded by institutions approved to operate under former Article 7 (commencing with Section 94830) of Chapter 7 of Part 59 of Division 10 of Title 3 of the Education Code, as it read on June 30, 2007, or meeting the requirements for an exemption in this article.
(f) An institution that is accredited by the Accrediting Commission for Senior Colleges or the Accrediting Commission for Junior Colleges of the Western Association of Schools and Colleges.
(g) An institution certified to offer educational programs in flight instruction and aircraft maintenance by the Federal Aviation Administration.
(h) An institution that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less and no part of the total charges is paid from state or
federal student financial aid programs.
(i) An institution that solely offers educational programs in law leading to a Juris Doctor (J.D.), Master of Laws (LL.M.), or Doctor of Jurisprudence (J.S.D.) degree, or similar degrees signifying the award of a bachelor’s, master’s, or doctorate in law.
(j) An institution giving instruction, or offering to give instruction, for driving motortrucks of three or more axles that are more than 6,000 pounds unladen weight.
(k) An institution that is a nationally accredited agency recognized by the United States Department of Education that is in compliance with all of the following requirements:
(1) The institution’s cohort default rate on guaranteed student loans does not exceed 15 percent for the three most recent years as published by the United States Department of Education.
(2) The institution has operated in this state for at
least 15 years.
(3) The institution submits to the bureau copies of the most recent IRS Form 990.
(4) The institution pays fees in accordance with this chapter.
(5) The institution exclusively confers degrees upon the completion of a course of study of two or more years.
Article
5. Bureau Powers and Duties
9075.
The Bureau for Private Postsecondary Education is hereby created in the Department of Consumer Affairs. The bureau shall regulate private postsecondary educational institutions through the powers granted, and duties imposed, by this chapter. In exercising its powers, and performing its duties, the protection of the public shall be the bureau’s highest priority.9076.
(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 the provisions of this section.(b) The bureau chief shall be appointed by the Governor, and is exempt from the State Civil Service Act pursuant to Part 2 (commencing with Section 1850) of Division 5 of Title 2 of the Government Code.
(c) Every power granted to, or duty imposed upon, the bureau under this chapter shall be exercised and performed in the name of the bureau, subject to any conditions and limitations the director may prescribe. The bureau chief may delegate any powers or duties to a designee.
(d) As may be necessary to carry out this chapter, the director, in accordance with the State Civil Service
Act, may appoint and fix the compensation of personnel.
9076.5.
The bureau may adopt and enforce regulations to implement this chapter pursuant to the Administrative Procedure Act in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The bureau may adopt emergency regulations that shall become effective immediately pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.9077.
(a) To enable the bureau to exercise its powers and to perform its duties, the bureau shall adopt by regulation a fee schedule. The fee schedule shall set forth the fees that institutions, and others subject to this chapter, shall pay.(b) All fees collected shall be deposited in the Private Postsecondary Education Administration Fund. These fees, along with any accrued interest, shall be the means of funding the implementation of this chapter.
(c) The fee schedule shall be publicly available.
(d) The bureau shall use an objective process to assess the costs of exercising its powers and performing its duties, and shall use this assessment as the basis for constructing the fee schedule.
9078.
The bureau may maintain an Internet Web site with information provided by institutions and verified by the bureau, which shall include, but need not be limited to, all of the following:(a) Completion rates.
(b) Placement rates for educational programs represented that lead to gainful employment in a recognized occupation.
(c) Total charges for specific educational programs.
(d) Starting salaries of graduates, if provided by an institution during enrollment.
(e) License examination passage rates, if provided by an institution during enrollment.
(f) Status of the institution’s approval to operate.
(g) Institutional refund policies.
9079.
The bureau may conduct an outreach program to secondary school students as well as prospective and current private postsecondary students, to provide them with information on how to best select a private postsecondary institution, how to enter into enrollment agreements, how to make informed decisions in the private postsecondary education marketplace, and how to contact the bureau for assistance. The bureau may accomplish the purposes of this section in cooperation with the department.9080.
The bureau may appoint an advisory committee that shall consist of, but not necessarily be limited to, representatives of institutions, student representatives, and employers who hire students.9081.
The bureau may conduct workshops to provide applicants and institutions information on application processes, compliance with this chapter, best practices for providing postsecondary educational programs, and other subjects concerning postsecondary education.9082.
The bureau may empanel visiting committees to assist in evaluating an institution’s application for an approval to operate. The members of visiting committees shall serve at no expense to the state. The members of visiting committees shall receive reimbursement from the institution that is the subject of an evaluation for their actual travel and per diem expenses incurred during the evaluation.9083.
(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 testifies in any administrative hearing arising under this chapter, is entitled to a defense and indemnification in any action arising out of the information or testimony provided as if he or she were a public employee.(b) Any defense and indemnification shall be solely with respect to the action pursuant to Article 4 (commencing with Section 825) of Chapter 1 of Part 2 of, and Part 7 (commencing with Section 995) of Division 3.6 of Title 1 of, the Government Code.
9084.
For all complaints that have reached final disposition, the bureau shall, upon request, make available to members of the public the nature and disposition of complaints against an institution.
Article
6. Approval to Operate
9085.
The bureau shall adopt by regulation minimum operating standards for an institution that shall reasonably ensure that all of the following occur:(a) The content of each educational program can achieve its stated objective.
(b) The facilities, instructional equipment, and materials are sufficient to enable students to achieve the educational program’s goals.
(c) The institution maintains a withdrawal policy and provides refunds.
(d) The directors, administrators, and instructors are properly qualified.
(e) The institution is financially sound and capable of fulfilling its commitments to students.
(f) That, upon satisfactory completion of an educational program, the institution gives students a document
signifying the degree or diploma awarded.
(g) Adequate records and standard transcripts are maintained and are available to students.
(h) The institution is maintained and operated in compliance with applicable ordinances and laws.
9086.
Except as exempted in Article 4 (commencing with Section 9074), no person shall open, conduct, or do business as a private postsecondary educational institution in this state without obtaining an approval to operate under this chapter.9087.
An approval to operate shall be granted only after an applicant has presented sufficient evidence to the bureau that the applicant has the capacity to satisfy the minimum operating standards.9088.
The bureau shall adopt, by regulation, the process and procedures whereby an applicant may obtain an approval to operate.9089.
An approval to operate shall be for a term of five years.9090.
(a) The bureau shall grant an institution that is accredited an approval to operate by means of its accreditation.(b) The term of the approval to operate shall be coterminous with the term of accreditation.
(c) Institutions that are granted an approval to operate by means of the institution’s accreditation shall comply with all other applicable standards in this chapter.
9091.
(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 renewal of an approval to operate, the institution shall demonstrate its continued capacity to meet the minimum operating standards.
9092.
If an agency of this state other than the bureau or of the federal government provides an approval to offer an educational program, that agency’s educational program approval shall satisfy the requirements of this article without any further review by the bureau. The bureau shall incorporate that educational program into the institution’s approval to operate when the bureau receives documentation signifying the conferral of the educational program approval by that agency.
Article
7. Substantive Changes to an Approval to Operate
9093.
If an institution wishes to make a substantive change to its approval to operate, the institution shall receive prior authorization from the bureau. If the institution makes the substantive change without prior bureau authorization, the institution’s approval to operate may be suspended or revoked.9094.
The following changes to an approval to operate are considered substantive changes and require prior authorization:(a) A change in educational objectives, including an addition of a new diploma or a degree educational program unrelated to the approved educational programs offered by the institution.
(b) A change in ownership.
(c) A shift in control.
(d) A change in business organization form.
(e) A change of location.
(f) A change of name.
(g) A significant change in the method of instructional delivery.
(h) An addition of a separate facility more than one mile from the main or branch campus.
9095.
The bureau shall adopt, by regulation, the process and procedures whereby an institution shall seek authorization for substantive changes.9096.
(a) An institution that has been granted an approval to operate by means of accreditation may make a substantive change in accordance with the institution’s accreditation standards.(b) The institution shall notify the bureau of the substantive change.
Article
8. Fair Business Practices
9097.
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 diploma.
(b) Promise or guarantee employment.
(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 instruction is conducted at a physical location without including in all advertising or promotional
material the physical location of the instruction.
(f) Advertise, or indicate in promotional material, that the institution is accredited, unless the institution has been accredited by an accrediting agency.
(g) 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.
(h) 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 gift’s cost is not more than one hundred dollars ($100).
(i) Pay any consideration to a person to
induce that person to sign an enrollment agreement for an educational program.
(j) Use a name in any manner improperly implying either 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.
(k) 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 or placement, financial information, including any of the following:
(1) A financial report filed with bureau.
(2) Information or records relating to the student’s eligibility for student financial aid at the institution.
(3) Any other record or document required by this
chapter or by the bureau.
(l) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.
(m) 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. If the bureau has granted an institution approval to operate, the institution may indicate that the institution is “licensed” or “licensed to operate,” but may 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.
(n) 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.
(o) 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 institution’s participation in the federal student financial aid programs.
9098.
(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 placement of students, who are enrolled in different educational programs, in the same class if that class is part of each of the educational programs and the placement in a merged class will not impair the students’ learning of the subject matter of the class.(b) After a student has enrolled in an educational program, the institution shall not do either of the following:
(1) Make any unscheduled suspension of any class unless caused by circumstances beyond the institution’s control.
(2) Change the day or time in which any class is offered to a day when the student is not scheduled to attend the institution
or to a time that is outside of the range of time that the student is scheduled to attend the institution on the day for which the change is proposed unless at least 90 percent of the students who are enrolled consent to the change and the institution offers full refunds to the students who do not consent to the change. For the purpose of this paragraph, “range of time” means the period beginning with the time at which the student’s first scheduled class session for the day is set to start and ending with the time the student’s last scheduled class session for that day is set to finish.
(c) If an institution enrolls a student in an educational program that is conducted at a specific site at the time of enrollment, the institution shall not convert the educational program to another method of delivery, such as by means of distance education.
(d) An institution shall not move the location of class instruction more than 10 miles from the location of
instruction at the time of enrollment unless any of the following occur:
(1) The institution discloses in writing to each student before enrollment in the educational program that the location of instruction will change after the educational program begins and the address of the new location.
(2) The institution applies for, and the bureau grants, approval to change the location. The bureau shall grant the application within 60 days if the bureau, after notice to affected students and an opportunity for them to be heard as prescribed by the bureau, concludes that the change in location would not be unfair or unduly burdensome to students. The bureau may grant approval to change the location subject to reasonable conditions, such as requiring the institution to provide transportation, transportation costs, or refunds to adversely affected students.
(3) The institution offers a full refund to students enrolled in the
educational program who do not voluntarily consent to the change.
(4) An unforeseeable and unavoidable circumstance outside of the control of the institution requires the change in the location of instruction.
9099.
If an institution offers an educational program in a profession, occupation, trade, or career field that requires licensure in this state, the institution shall have an educational program approval to conduct that educational program, if applicable.9099.5.
(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 fees on the first day of instruction.(b) For those programs designed to be four months or longer, an institution shall not require more than one term or four months of advance payment of tuition at a time. When 50 percent of the program has been offered, the institution may require full payment.
(c) The limitations in this section shall not apply to federal and state financial aid payments received by an institution.
(d) At the student’s option, an institution may accept payment in full for tuition and fees after the student has been accepted and enrolled and the date for commencement of classes is
disclosed on the enrollment agreement.
9100.
An institution’s recruiters shall be employees.9101.
(a) An institution shall issue identification to each recruiter identifying the recruiter and the institution.(b) The recruiter shall have the issued identification with him or her while recruiting.
Article
10. Enrollment Agreements and Disclosures
9102.
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 employee of the institution.9103.
(a) An institution shall provide to students, prior to enrollment, a catalog or brochure containing, at a minimum, the following information:(1) The institution’s admissions policies including the institution’s policies regarding the acceptance of credits earned at other institutions or through challenge examinations and achievement tests.
(2) A description of the instruction provided in the educational program in which the student is interested, including the length of the educational program, and all of the professions, occupations, trades, or career fields, if any, to which the educational program is represented to lead.
(3) The number of credit hours, clock hours, or other increments required for completion of the educational program.
(4) The institution’s attendance, leave-of-absence, cancellation, withdrawal, and refund policies.
(5) The faculty and their qualifications.
(6) The schedule of total charges necessary for a period of attendance or the entire educational program.
(7) If the institution participates in federal and state financial aid programs, and if so, a qualification concerning student eligibility.
(8) A description of a student’s rights and responsibilities under the Student Tuition Recovery Fund.
(9) If an institution provides placement services, a description of the nature and extent of the placement services.
(b) An enrollment agreement signed by a student is not enforceable unless the student has first received the institution’s catalog or brochure containing the information required by this section.
9104.
Before an ability-to-benefit student may execute an enrollment agreement, the institution shall have the student take an independently administered examination from the list of examinations prescribed by the United States Department of Education pursuant to Section 484(d) of the federal Higher Education Act of 1965, (20 U.S.C. Sec. 1070a et seq.), as it is, from time to time, amended. The student may not enroll unless the student achieves a score, as specified by the United States Department of Education, demonstrating that the student may benefit from the education and training being offered.9105.
(a) During the enrollment process, an institution offering educational programs designed to lead to positions in a profession, occupation, trade, or career field requiring licensure shall exercise reasonable care to determine that the student will not be ineligible to obtain licensure in the profession, occupation, trade, or career field at the time of the student’s graduation for reasons such as age, apparent physical characteristic, or relevant past criminal conviction. The institution shall not execute an enrollment agreement with that student unless the student’s stated objective is other than licensure.(b) During the admission or enrollment process, an institution shall not offer job placement assistance or discuss salaries. After a student has completed more than 60 percent of a program, the institution may
offer job placement assistance.
9106.
The enrollment agreement shall include all of the following required terms:(a) On the first page of the enrollment agreement, in at least 12-point, boldface type, the following statement:
“Any questions a student may have regarding this enrollment agreement that have not been satisfactorily answered by the institution may be directed to the Bureau for Private Postsecondary Education at (address), Sacramento, CA (ZIP Code), (Internet Web site address), (telephone and fax numbers).”
(b) The name and description of the educational program, including the total number of credit hours, clock hours, or other increment required to complete the educational program.
(c) The name and address of the institution and the address where class sessions shall be held.
(d) A schedule of total charges, including a list of any charges that are nonrefundable, clearly identified as nonrefundable charges.
(e) In underlined capital letters on the same page of the enrollment agreement in which the student’s signature is required, the total charges that the student is obligated, upon enrollment, to pay for a period of attendance or the entire educational program.
(f) A statement that the student is responsible for paying the state assessment amount for the Student Tuition Recovery Fund.
(g) A clear and conspicuous statement that the enrollment agreement is legally binding when signed by the student and accepted by the institution.
(h) The following statement in at least 12-point, boldface type above the space for the student’s signature:
“My signature below certifies that I have read, understood, and agreed to my rights
and responsibilities, and that the institution’s cancellation and refund policies have been clearly explained to me.”
9107.
The following disclosures shall be made in writing before execution of the enrollment agreement:(a) A “School Performance Fact Sheet” that discloses the following information:
(1) Completion rates, as calculated pursuant to Article 16 (commencing with Section 9131), if the institution makes a claim to students regarding completion rates.
(2) Placement rates, as calculated pursuant to Article 16 (commencing with Section 9131), if the institution makes a claim to students regarding placement rates.
(3) Starting salaries, if the institution makes a claim to students regarding starting salaries.
(4) License examination passage rates if the institution makes a claim to students regarding the license examination passage rates of its
graduates.
(5) If a program is too new to provide data for any of the categories listed in this subdivision, the institution shall state on its fact sheet: “This program is new. Therefore, the number of students who graduate, the number of students who are placed, or the starting salary you can earn after finishing the educational program are unknown at this time.”
(b) A disclosure on transfer of credit in at least 12-point type that reads:
“NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED AT OUR INSTITUTION”
“The transferability of credits you earn at (name of institution) is at the complete discretion of an institution to which you may seek to transfer. Acceptance of the (degree, diploma, or certificate) you earn in (name of educational program) is also at the complete discretion of the institution to
which you may seek to transfer. For this reason you should make certain that your attendance at this institution will meet your educational goals. This may include contacting an institution to which you may seek to transfer after attending (name of institution) to determine if your (credits or degree, diploma or certificate) will transfer.”
(c) (1) A disclosure with a clear and conspicuous caption, “BUYER’S RIGHT TO CANCEL,” under which it is explained that the student has the right to cancel the enrollment agreement and obtain a refund of charges paid through attendance at the first class session, or the fifth day after enrollment, whichever is later.
(2) The disclosure shall contain the institution’s refund policy, together with examples of the application of the policy, and a statement that, if the student has received federal student financial aid funds the student is entitled to a refund of moneys not paid from federal student
financial aid program funds.
(3) The text shall also include a description of the procedures that a student is required to follow to cancel the enrollment agreement or withdraw from the institution and obtain a refund, including the title and address of the institution manager to whom the notice shall be sent or delivered.
(d) A statement, provided by the bureau, specifying that it is a state requirement that a student who pays his or her tuition is required to pay a state-imposed assessment for the Student Tuition Recovery Fund. This statement shall also describe the purpose and operation of the Student Tuition Recovery Fund and the requirements for filing a claim against the Student Tuition Recovery Fund.
(e) A statement specifying that, if the student obtains a loan to pay for an educational program, the student will have the responsibility to repay the full amount of the loan plus interest, less the amount of any
refund.
(f) A statement specifying that, if the student is eligible for a loan guaranteed by the federal or state government and the student defaults on the loan that both of the following may occur:
(1) The federal or state government or a loan guarantee agency can take action against the student, including applying any income tax refund to which the person is entitled to reduce the balance owed on the loan.
(2) The student may not be eligible for any other federal student financial aid at another institution or other government assistance until the loan is repaid.
(g) A statement specifying that the institution is not a public institution.
(h) A statement specifying whether the institution has a pending petition in bankruptcy or has had a petition in bankruptcy filed against it.
9108.
Each disclosure in Section 9107 shall be individually acknowledged by a student’s initials or signature, or on a single form acknowledging receipt of the individually identified disclosures.9109.
A student may not waive any required term, or receipt of any disclosure, required by this article.9110.
An enrollment agreement shall be written in language that is easily understood. If English is not a student’s primary language, and the student is unable to understand the terms and conditions of the enrollment agreement, the student shall have the right to obtain a clear explanation of the terms and conditions and all cancellation and refund policies in his or her primary language.9111.
If the recruitment leading to enrollment was conducted in a language other than English, the enrollment agreement, disclosures, and statements shall be in that language.9112.
An enrollment agreement shall become operative when the student attends the first class session.9113.
An enrollment agreement shall not contain a provision that requires a student to invoke an internal institutional dispute procedure before enforcing any contractual or other legal rights or remedies. This does not preclude inclusion of a term in the enrollment agreement requiring binding arbitration as authorized under the Federal Arbitration Act pursuant to Title 9 of the United States Code or other alternative dispute resolution procedures.9114.
An enrollment agreement is not enforceable unless, at the time of execution of the enrollment agreement, the institution held an approval to operate.9115.
When a student’s total charges are paid by a third-party payer, the institution shall provide the student with a form containing all of the following information in lieu of an enrollment agreement:(1) The name and address of the institution and the address where class sessions will be held.
(2) The name and description of the educational program, including the total number of credit hours, clock hours, or other increment required to complete the educational program.
(3) A clear statement that the student is not eligible for protection and recovery from the Student Tuition Recovery Fund.
Article
11. Consumer Loans to Students
9116.
An institution extending credit or lending money to an individual for institutional and noninstitutional charges for an educational program shall cause any note, instrument, or other evidence of indebtedness taken in connection with that extension of credit or loan to be conspicuously marked on its face in at least 12-point type with the following notice:“NOTICE”
“YOU MAY ASSERT AGAINST THE HOLDER OF THE PROMISSORY NOTE YOU SIGNED IN ORDER TO FINANCE THE COST OF INSTRUCTION ALL OF THE CLAIMS AND DEFENSES THAT YOU COULD ASSERT AGAINST THIS INSTITUTION, UP TO THE AMOUNT YOU HAVE ALREADY PAID UNDER THE PROMISSORY NOTE.”
9117.
A note, instrument, or other evidence of indebtedness relating to payment for an educational program is not enforceable by an institution unless, at the time of execution of the note, instrument, or other evidence of indebtedness, the institution held an approval to operate.9118.
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 United States Code.
Article
12. Cancellations, Withdrawals, and Refunds
9119.
(a) An institution that participates in the federal student financial aid programs complies with this article by complying with applicable regulations of the federal student financial aid programs under Title IV of the Higher Education Act of 1965.(b) The institution shall advise each student that a notice of cancellation shall be in writing, and that a withdrawal may be effectuated by the student’s written notice or by the student’s conduct, including, but not necessarily limited to, a student’s lack of attendance.
(c) The institution shall also provide a pro rata refund of nonfederal student financial aid program moneys paid for institutional charges to students who have completed 60 percent or less of the period of attendance.
9120.
An institution that does not participate in the federal student financial aid programs shall do all of the following:(a) The institution shall advise each student that a notice of cancellation shall be in writing, and that a withdrawal may be effectuated by the student’s written notice or by the student’s conduct, including, but not necessarily limited to, a student’s lack of attendance.
(b) Institutions shall refund 100 percent of the amount paid for institutional charges, less a reasonable deposit or application fee not to exceed two hundred fifty dollars ($250), if notice of cancellation is made through attendance at the first class session, or the seventh class day after enrollment, whichever is later.
(c) The bureau may adopt by regulation a different method of calculation for
instruction delivered by other means, including, but not necessarily limited to, distance education.
(d) The institution shall have a refund policy for the return of unearned institutional charges if the student cancels an enrollment agreement or withdraws during a period of attendance. The refund policy for students who have completed 60 percent or less of the period of attendance shall be a pro rata refund.
(e) The institution shall pay or credit refunds within 45 days of a student’s cancellation or withdrawal.
9121.
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 which the educational program is structured, may petition the bureau for an alternative method of calculating tuition refunds.9122.
A student may not waive any provision of this article.
Article
13. Student Tuition Recovery Fund
9123.
The bureau shall adopt, by regulation, procedures governing the administration and maintenance of the Student Tuition Recovery Fund, including requirements relating to assessments on students and student claims against the Student Tuition Recovery Fund.9124.
All assessments collected pursuant to this article shall be credited to the Student Tuition Recovery Fund, along with any accrued interest, for the purpose of this article. Notwithstanding Section 13340 of the Government Code, the moneys in the Student Tuition Recovery Fund are continuously appropriated to the bureau, without regard to fiscal year, for the purposes of this article.9125.
The amount in the Student Tuition Recovery Fund shall not exceed twenty-five million dollars ($25,000,000) at any time.
Article
14. Orderly Institutional Closure and Teach-outs
9126.
At least 30 days prior to closing, the institution shall notify the bureau in writing of its intention to close. The notice shall be accompanied by a closure plan, which shall include, but not necessarily be limited to, all of the following:(a) A plan for providing teach-outs of educational programs, including any agreements with any other postsecondary educational institutions to provide teach-outs.
(b) If no teach-out plan is contemplated, or for students who do not wish to participate in a teach-out, arrangements for making refunds within 45 days from the date of closure, or for institutions that participant in federal student financial aid programs arrangements for making refunds and returning federal student financial aid program funds.
(c) If the institution is a participant
in federal student financial aid programs, it shall provide students information concerning these programs and institutional closures.
(d) A plan for the disposition of student records.
9127.
An institution shall be considered in default of the enrollment agreement when an educational program is discontinued or canceled or the institution closes prior to completion of the educational program. When an institution is in default, student institutional charges may be refunded on a pro rata basis if the bureau determines that the school has made provision for students enrolled at the time of default to complete a comparable educational program at another institution at no additional charge to the student beyond the amount of the total charges in the original enrollment agreement. If the institution does not make that provision, a total refund of all institutional charges shall be made to students.
Article
15. Completion and Placement Requirements
9128.
An institution subject to this chapter shall report annually to the bureau, and disclose to students the number and percentage of students who began the institution’s program and successfully completed the entire program for the preceding calendar year. The rate shall be calculated by determining the percentage of students enrolled in the program who were originally scheduled, at the time of enrollment, to complete the program in that calendar year and who successfully completed the program. This information shall be documented and maintained by the institution with all facts needed to substantiate the information. An institution may include completion information for students completing the program within 150 percent of the original contracted time, but that information may not replace completion information for students completing within the original scheduled
time.9129.
If an institution’s accreditation agency has quantitative student completion and placement requirements in its accreditation standards, an institution is in compliance with this article by complying with the accreditation standards.9130.
An institution shall use the data derived from the regulatory standards or the accreditation standards in the Student Performance Fact Sheet.
Article
16. Compliance, Enforcement, Process, and Penalties
9131.
The bureau shall determine an institution’s compliance with the requirements of this chapter. The bureau shall have the power to require annual and other reports that institutions shall file with the bureau, to send staff to an institution’s sites, and to require documents and responses from an institution to monitor compliance. When the bureau has reason to believe that an institution may be out of compliance, it may conduct an investigation of the institution.9132.
The bureau may provide the institution with the opportunity to remedy noncompliance, impose fines, place the institution on probation, or suspend or revoke the institution’s approval to operate as it deems appropriate to the severity of an institution’s violations of this chapter, and the harm caused to students.9133.
As much as is practicable, the bureau shall seek to resolve instances of noncompliance, including the use of alternative dispute resolution procedures in Chapter 4.5 (commencing with Section 11420.10) of Part 1 of Division 3 of Title 2 of the Government Code.9134.
(a) As part of the compliance program, an institution shall submit an annual report to the bureau, under penalty of perjury, by July 1 of each year, or another date designated by the bureau, and it shall include the following information for educational programs offered in the reporting period:(1) The total number of students enrolled by level of degree or for a diploma.
(2) The number of degrees, by level, and diplomas awarded.
(3) The degree levels and diplomas offered.
(4) Educational program completion rates.
(5) Educational program placement rates.
(6) The total charges for each educational program by period of attendance.
(7) A statement
indicating whether the institution is, or is not, current in remitting Student Tuition Recovery Fund assessments.
(8) Additional information deemed by the bureau to be reasonably required to ascertain compliance with this chapter.
(b) The bureau shall prescribe the annual report’s format and method of delivery.
9135.
(a) Bureau staff who, during an inspection of an institution, detect a minor violation of this chapter, or regulations adopted pursuant to this chapter, shall issue a notice to comply before leaving the institution. The bureau shall establish an informal appeal process through regulation, which shall not be subject to the provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). Unless a writ of mandate is filed, a citation issued, or a disciplinary proceeding instituted, a notice to comply shall not be considered a public record, and shall not be disclosed pursuant to a request under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).(b) An institution that receives a notice to comply shall have no more than 30 days from the date of inspection to remedy the noncompliance.
(c) Upon achieving compliance the institution shall sign and return the notice to comply to the bureau.
(d) A single notice to comply shall be issued listing separately all the minor violations cited during the inspection.
(e) A notice to comply shall not be issued for any minor violation that is corrected immediately in the presence of the bureau staff. Immediate compliance may be noted in the inspection report, but the institution shall not be subject to any further action by the bureau.
(f) A notice to comply shall be the only means the bureau shall use to cite a minor violation discovered during an inspection. The bureau shall not take
any other enforcement action specified in this chapter against an institution that has received a notice to comply if the institution complies with this section.
(g) If an institution that receives a notice to comply pursuant to subdivision (a) disagrees with one or more of the alleged minor violations listed in the notice to comply, an institution shall send the bureau a written notice of disagreement. The agency may take administrative enforcement action to seek compliance with the requirements of the notice to comply.
(h) If an institution fails to comply with a notice to comply within the prescribed time, the bureau may take administrative enforcement action.
(i) A minor violation is a deviation from the requirements of this chapter, or regulations adopted pursuant to this chapter, that, in the determination of the bureau, has not or reasonably will not result in immediate harm to students and is not either:
(1) Committed knowingly, willfully, or intentionally.
(2) A repeated violation or a violation committed by a recalcitrant violator that has engaged in a pattern of neglect or disregard for the requirements of this chapter.
9136.
(a) As a consequence of an investigation, the bureau may issue a citation to an institution for violation of this chapter, or regulations adopted pursuant to this chapter.(b) The citation may contain either of the following:
(1) An order of abatement that may require an institution to demonstrate how future compliance with this chapter or regulations adopted pursuant to this chapter will be accomplished.
(2) An administrative fine not to exceed five thousand dollars ($5,000) for each violation. The bureau shall base its assessment of the administrative fine on:
(A) The nature and seriousness of the violation.
(B) The persistence of the violation.
(C) The good faith of the
institution.
(D) The history of previous violations.
(E) The purposes of this chapter.
(c) (1) The citation shall be in writing and describe the nature of the violation and the specific provision of law or regulation that is alleged to have been violated.
(2) The citation shall inform the institution of its right to request a hearing in writing within 30 days from service of the citation.
(3) If a hearing is requested, the bureau shall select an informal hearing pursuant to Chapter 4.5 (commencing with Section 11445.10) of Part 1 of Division 3 of Title 2 of the Government Code or a formal hearing pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(4) If a hearing is not requested, payment of the administrative fine is due 30 days from the date of service, and shall not constitute an
admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative fine is ordered, the administrative fine is due 30 days from when the final order is entered.
(6) The bureau may enforce the administrative fine as if it were a money judgment pursuant to Title 9 (commencing with Section 680.10) of Part 2 of the Code of Civil Procedure.
(d) All administrative fines shall be deposited in the Private Postsecondary Education Administration Fund.
9137.
(a) As a consequence of an investigation, the bureau may place an institution on probation or may suspend or revoke an institution’s approval to operate for:(1) Obtaining an approval to operate by fraud.
(2) Material or repeated violations of this chapter or regulations adopted pursuant to this chapter that have resulted in harm to students.
(b) The bureau shall adopt regulations governing probation and suspension of an approval to operate.
(c) The bureau may seek reimbursement for the costs of an investigation pursuant to Section 125.3.
(d) An institution shall not be required to pay the cost of investigation to more than one agency.
9138.
(a) If the bureau determines it needs to make an emergency decision to protect students, prevent misrepresentation to the public, or prevent the loss of public funds or moneys paid by students, it may do so pursuant to Chapter 4.5 (commencing with Section 11460.10) of Part 1 of Division 3 of Title 2 of the Government Code.(b) The bureau shall adopt regulations to give this subdivision effect pursuant to Section 11460.20 of the Government Code.
9139.
(a) The bureau may bring an action for equitable relief for any violation of this chapter. The equitable relief may include restitution, a temporary restraining order, the appointment of a receiver, and a preliminary or permanent injunction. The action may be brought in the county in which the defendant resides or in which any violation has occurred or may occur.(b) The remedies provided in this section supplement, and do not supplant, the remedies and penalties under other provisions of law.
9140.
As consequence of an adverse administrative action against an institution, the institution may request a hearing pursuant to Chapter 4.5 (commencing with Section 11445.10) or Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.9141.
(a) A student who claims damage or loss as a result of an institution’s violation of this chapter, or of regulations adopted pursuant to this chapter, may file a complaint with the bureau against the institution. The complaint shall set forth the alleged violation, and shall contain any other information as may be required by the bureau.(b) Taking into account the nature and seriousness of the alleged violation, the bureau shall take action to ascertain the facts and to verify the complaint. The action may include interviewing institution management, conducting an investigation, holding an informal hearing, or other appropriate investigative activity.
(c) Upon the facts discovered, the bureau may take appropriate administrative enforcement action.
9142.
(a) A student or graduate may bring an action for a material violation of this chapter that they allege is the proximate cause of an injury in fact. Upon prevailing in such an action the student is entitled to relief pursuant to Section 3333 of the Civil Code.(b) The remedies provided in this section supplement, and do not supplant, the remedies and penalties under other provisions of law.
9143.
The following violations of this chapter are public offenses:(a) Knowingly operating a private postsecondary institution without an approval to operate is an infraction subject to the procedures described in Sections 19.6 and 19.7 of the Penal Code.
(b) Knowingly providing false information to the bureau on an application for an approval to operate is an infraction subject to the procedures described in Sections 19.6 and 19.7 of the Penal Code.
9144.
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 to the bureau. The bureau shall furnish the agent’s name, address, and telephone number to a person upon request.9145.
Notwithstanding any other provision of law, the bureau shall cite any person, and that person shall be subject to a fine not to exceed fifty thousand dollars ($50,000), for operating an institution without proper approval to operate issued by the bureau pursuant to this chapter.9146.
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 provisions or applications that can be given effect without the invalid provision or application.9147.
This chapter shall remain in effect until January 1, 2011, and as of that date is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2011, deletes or extends the date on which it becomes repealed.