94926.5.
(a) Upon appropriation by the Legislature from the Student Tuition Recovery Fund, in response to the student harm caused by the practices and unlawful closure of Corinthian Colleges, Inc., grant funds shall be timely provided in accordance with this section to eligible nonprofit community service organizations to assist the eligible students of that closed institution by relieving or mitigating the economic and educational opportunity loss incurred by those students.(b) (1) The terms and conditions of the grant agreements shall ensure that grant funds are used for the exclusive purpose of assisting eligible students with federal and private loan discharge and
other financial aid relief, and that students eligible to claim recovery through the Student Tuition Recovery Fund are referred to the bureau for assistance with claim processing.
(2) This subdivision is not intended to prohibit a nonprofit community service organization from using grant funds to screen student requests for assistance in order to determine if a student meets assistance eligibility requirements.
(c) Services provided by eligible nonprofit community service organizations may include, but are not to be limited to, outreach and education, screening requests for assistance, referring students for additional legal assistance through pro bono referral programs, and legal services.
(d) For purposes of this section,
an “eligible nonprofit community service organization” is an organization that satisfies all of the following conditions:
(1) The organization is a 501(c)(3) tax-exempt organization in good standing with the Internal Revenue Service and in compliance with all applicable laws and requirements.
(2) The organization demonstrates expertise in assisting students with, and currently provides free direct legal services to students for, or will work in partnership with with, or under the supervision of
of, an attorney or a nonprofit legal services organization that has demonstrated expertise in assisting students with, student loan and tuition recovery-related matters.
(3) The organization does not charge students for services,
including services provided pursuant to this section.
(e) For purposes of this section, an “eligible student” is a student who was enrolled at a California campus of, or a California student who was enrolled in an online campus of, a Corinthian Colleges institution, and who has been screened by the nonprofit community service organization and determined to be eligible for debt relief from the United States Department of Education or other student financial aid relief.
(f) (1) The bureau shall notify the Attorney General of all unlawful Corinthian Colleges closures within 15 days of the effective date of this section.
(2) The notification shall include the name and location of the school, the programs,
and the number of students affected at each site of the school, as appropriate. The bureau shall provide the Attorney General with all additional information that the Attorney General may request, if the bureau has access to the requested information.
(3) The Attorney General shall, within 90 days of receipt of the
notification, solicit grant applications from eligible nonprofit community service organizations as described in subdivision (d), select one or more of these organizations from among the applicants who are deemed to be qualified by the Attorney General, set additional terms and conditions of the grants as necessary, and notify the bureau and the recipient organization or organizations of the selection and the share of grant funds available that the organization shall receive. The Attorney General may enter into a contract with another qualified entity to perform the Attorney General’s duties under this subdivision.
(g) Within 30 days of selection pursuant to paragraph (3) of subdivision (f), an eligible nonprofit community service organization that receives funds pursuant to this section shall enter into a grant agreement with
the Attorney General, or a qualified entity entrusted with this authority pursuant to paragraph (3) of subdivision (f), as applicable, and shall use grant funds exclusively for the purposes set forth in this section in accordance with the agreement. Any unused funds shall be returned to the Attorney General for return to the Student Tuition Recovery Fund, except that, upon the approval of the Attorney General, an eligible nonprofit community service organization may expend those unused funds to provide assistance to students who were enrolled at an institution approved to operate by the bureau and who were harmed by the unlawful closure of that institution. The Attorney General, or a contracted qualified entity, may terminate the grant agreement for material breach, and may require repayment of funds provided to the nonprofit community service organization during the time that the agreement was
being materially breached. However, the Attorney General, or a qualified entity, shall provide the grantee with written notice of the breach and a reasonable opportunity of not less than 30 days to resolve the breach.
(h) An eligible nonprofit community service organization that receives a grant may give priority to low-income students if demand exceeds available grant funds. Otherwise, the organization may provide assistance regardless of student income level.
(i) (1) An eligible nonprofit community service organization that receives a grant shall report to the Attorney General, or a qualified entity pursuant to paragraph (3) of subdivision (f), as applicable, quarterly through the grant period on all of the following:
(A) The
number of eligible students served pursuant to the grant agreement.
(B) A detailed summary of services provided to those students.
(C) The number of Student Tuition Recovery Fund claims referred to the bureau.
(D) The number of federal loan forgiveness claims filed and the number of those claims approved, denied, and pending.
(E) The number of students screened by the nonprofit community service organization who were determined ineligible for assistance with debt relief pursuant to subdivision (e), a summary of reasons for ineligibility, and a summary of any services or referral information provided to those students.
(F) Any other information that is deemed appropriate by the Attorney General or qualified entity, as applicable.
(2) The Attorney General or qualified entity, as applicable, shall make the reports submitted pursuant to paragraph (1) available to the Legislature and the bureau upon request.
(3) The Attorney General or qualified entity, as applicable, shall provide the Legislature and the bureau a final report summarizing the information submitted pursuant to paragraph (1) promptly following the time when all funds are expended by the grantees or by January 1, 2019, whichever is earlier.
(j) Funds shall be distributed to preapproved nonprofit community service organizations as follows:
(1) Fifty percent shall be distributed to the grantee within 30 days of the grantee entering into a grant agreement.
(2) Twenty-five percent shall be distributed to the grantee upon the submission of the grantee’s second quarterly report.
(3) Twenty-five percent shall be distributed to the grantee upon the submission of the grantee’s third quarterly report.
(k) The adoption of any regulation pursuant to this section shall be deemed to be an emergency and necessary for the immediate preservation of the public health and safety, or general welfare.