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AB-1343 Private postsecondary education: California Private Postsecondary Education Act of 2009.(2019-2020)

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Date Published: 02/22/2019 09:00 PM
AB1343:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1343


Introduced by Assembly Members Eggman, Bauer-Kahan, Berman, Chiu, Low, and McCarty

February 22, 2019


An act to add Section 94918.5 to the Education Code, relating to private postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 1343, as introduced, Eggman. Private postsecondary education: California Private Postsecondary Education Act of 2009.
Existing law, the California Private Postsecondary Education Act of 2009, provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. Existing law requires an institution to annually report specified information about its students regarding program completion rates, job placement rates, license examination passage rates, and salary and wage information to the bureau and to publish that information in its School Performance Fact Sheet. Existing law requires an institution to include in its School Performance Fact Sheet the most recent official 3-year cohort default rate for federal student loans for the institution and the percentage of enrolled students receiving federal student loans.
This bill would, beginning January 1, 2021, prohibit a private postsecondary educational institution that arranges loans, as defined, for students, from enrolling residents of California, unless the institution meets either the requirement that no more than 80% of the institution’s tuition revenue, determined as specified, is derived from student financial aid and loans, or that no more than 85% of the students in the program in which the California resident would enroll pay tuition derived from either of those sources. This bill would exempt an institution with annual revenues of less than $2,500,000 in the most recent audited financial statement for a fiscal year within the prior 2 years.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 94918.5 is added to the Education Code, to read:

94918.5.
 (a) For the purposes of this section, “loans” means any contract for future payment, whether or not conditioned on future income or other factors.
(b) An institution that arranges loans for any students shall not enroll residents of California, except those already enrolled on or before January 1, 2021, in any program unless the institution meets one of the following:
(1) No more than 80 percent of the institution’s tuition revenue, as documented in the most recent audited financial statement for a fiscal year within the prior 2 years, is derived from student financial aid provided by a federal or state agency, and from loans arranged or guaranteed by a federal or state agency.
(2) In the program in which a resident of California enrolls, not more than 85 percent of the students enrolled pay tuition in whole or in part from student financial aid provided by a federal or state agency, or from loans arranged or guaranteed by the institution.
(c) This section does not apply to an institution with annual revenues, in the most recent audited financial statement for a fiscal year within the prior two years, of less than two million five hundred thousand dollars ($2,500,000).