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AB-1345 Private postsecondary education: California Private Postsecondary Education Act of 2009.(2019-2020)

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Date Published: 04/12/2019 04:00 AM
AB1345:v98#DOCUMENT

Amended  IN  Assembly  April 11, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1345


Introduced by Assembly Members McCarty, Bauer-Kahan, Berman, Chiu, Eggman, and Low
(Coauthor: Assembly Member Gloria)

February 22, 2019


An act to amend Section 94897 of, and to add Section 94841.2 to, the Education Code, relating to private postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 1345, as amended, McCarty. Private postsecondary education: California Private Postsecondary Education Act of 2009.
Existing law establishes the California Private Postsecondary Education Act of 2009, which, among other things, provides for student protections and regulatory oversight of private postsecondary schools in the state. The act prohibits certain types of conduct by regulated institutions, including offering to compensate a student to act as an agent of the institution for the purposes of enrollment or recruitment of students, except as specified, and compensating an employee involved in recruitment and enrollment on the basis of commission, quota, bonus, or a similar method, also with exceptions.
This bill would define financial aid for the purposes of the act. This bill would prohibit an institution from providing providing, directly or indirectly, certain financial incentives to any person, including a student, involved in student recruitment, enrollment, continued enrollment, admission, or attendance, or involved in awarding of financial aid based on the enrollment of a student, or in the sales of any education educational materials, based on succeeding in those activities, by means of a commission, commission draw, bonus, quota, or other similar method contingent upon, recruitment, enrollment, continued enrollment, admissions, attendance, or sales of educational materials to a student, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 94841.2 is added to the Education Code, to read:

94841.2.
 “Financial aid” means any loan, grant, or award that is based on the enrollment of a student, provided by a federal or state government program, provided or arranged by the institution, or provided by or arranged by an entity to which the student was referred by the institution.

SEC. 2.

 Section 94897 of the Education Code is amended to read:

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 diploma.
(b) Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.
(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 the institution is accredited, unless the institution has been accredited by an accrediting agency.
(f) 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.
(g) Pay any consideration to a person to induce that person to sign an enrollment agreement for an educational program.
(h) Use a name in any manner improperly implying any 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.
(3) The institution grants degrees, if the institution does not grant degrees.
(i) 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, placement, employment, salaries, or financial information, including any of the following:
(1) A financial report filed with the 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.
(j) Willfully falsify, destroy, or conceal any document of record while that document of record is required to be maintained by this chapter.
(k) 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.
(l) 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.
(m) Compensate, Directly or indirectly compensate, condition a contract or any benefit under a contract with, or condition the employment of any person involved in student recruitment, enrollment, continued enrollment, admissions, or attendance, or involved in awarding financial aid based on the enrollment of a student, or in sales of any educational materials to a student student by means of a commission, commission draw, bonus, quota system, or other incentive payment based in any part, directly or indirectly, on success in student quota, or other similar method contingent upon, recruitment, enrollment, continued enrollment, admissions, or attendance, or success in awarding financial aid based on the enrollment of a student, or in sales of any attendance, financial aid, or sales of educational materials to a student.
(n) Require a prospective student to provide personal contact information in order to obtain, from the institution’s internet website, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments thereto.
(o) Offer an associate, baccalaureate, master’s, or doctoral degree without disclosing to prospective students prior to enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, all of the following:
(1) Whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states.
(2) A statement that reads: “A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California.”
(3) That a student enrolled in an unaccredited institution is not eligible for federal financial aid programs.