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AB-1366 Private postsecondary education: student financial aid: notice.(2011-2012)

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CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1366


Introduced  by  Assembly Member Jeffries

February 18, 2011


An act to amend Section 69509.5 of the Education Code, relating to private postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 1366, as introduced, Jeffries. Private postsecondary education: student financial aid: notice.
Existing law provides that within 5 days of the commencement of any cause of action, including an emergency action, by the Student Aid Commission against a private postsecondary educational institution in connection with the Federal Family Education Loan Program, the director of the commission shall give notice, in writing, of the commencement of the action to the Council for Private Postsecondary and Vocational Education.
This bill would require the commission to give that notice within 8, rather than 5, days of the commencement of any cause of action.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 69509.5 of the Education Code is amended to read:

69509.5.
 (a) Within five eight days of the commencement of any cause of action, including an emergency action, by the commission against a private postsecondary educational institution in connection with the Federal Family Education Loan Program, the director of the commission shall give notice, in writing, of the commencement of the action to the Council for Private Postsecondary and Vocational Education.
(b) “Cause of action” and “emergency action” for the purposes of this section, mean those actions described in Sections 30302 and 30304 of Title 5 of the California Code of Regulations, and as those sections may subsequently be amended, concerning the limitation, suspension, and termination of eligibility under the Federal Family Education Loan Program.
(c) The director of the commission, or his or her designee, shall give written notice to the Council for Private Postsecondary and Vocational Education when, in the administration of a program review concerning any private postsecondary educational institution’s participation in the Cal Grant Program or the Federal Family Education Loan Program, evidence indicates that a private postsecondary educational institution is in violation of the standards adopted by its responsible accrediting agency or when it is in violation of Section 94800, Sections 94811 to 94825, inclusive, or Section 94930.
(d) The director of the commission may develop selection criteria for the scheduled review of any private postsecondary or vocational educational institution.
(e) This section shall become operative on January 1, 1997.