Bills

AB 2341: California Private Postsecondary Education Act of 2009: out-of-state public institutions of higher education.

Session Year: 2021-2022
House: Assembly
Latest Version Date: 2022-06-14

Version:

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. The act applies to private entities with a physical presence in the state that offer postsecondary education, as defined in the act, to the public for an institutional charge. Existing law requires an out-of-state private postsecondary educational institution to comply with specified requirements, including providing the bureau evidence of the institutions accreditation. The act is repealed by its own provisions on January 1, 2023.

This bill would authorize public institutions of higher education established by a state other than the State of California to apply for an approval to operate, and obtain an approval to operate by means of its accreditation, as specified. The bill would require, upon granting an approval to operate, the bureau to regulate the public institution of higher education through the powers granted, and duties imposed, by the act, as those powers and duties apply to a private postsecondary educational institution, as if the public institution of higher education were a private postsecondary educational institution. The bill would subject, upon obtaining an approval to operate, the public institution of higher education to any provisions of, and any regulations adopted pursuant to, the act that apply to a private postsecondary educational institution, as if the public institution of higher education were a private postsecondary educational institution. The bill would authorize the bureau to adopt regulations to carry out the purposes of the bill as emergency regulations, as specified. The provisions of this bill would be implemented only if the act is extended by another measure.

Under existing law, the act specifies conduct by regulated institutions that, if undertaken, is a crime.

Because this bill would extend the application of those criminal provisions, it would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act authorizes an independent institution of higher education that is exempt from the act to execute a contract with the bureau for the bureau to review and, as appropriate, act on complaints concerning the institution, as provided, and requires an independent institution of higher education that is exempt from the act to comply with all applicable state and federal laws, including laws relating to fraud, abuse, and false advertising. The act is repealed on January 1, 2023. This bill would authorize a public institution of higher education, as defined, to contract with the bureau for complaint processing, as described above. The bill would require a public institution of higher education to comply with all applicable state and federal laws. The provisions of this bill would be implemented only if the operation of the act is extended by another measure.

Version:

The people of the State of California do enact as follows:SECTION 1.Section 94801.6 is added to the Education Code, to read:94801.6.

(a)A public institution of higher education may apply to the bureau for an approval to operate.

(b)A public institution of higher education may obtain an approval to operate by means of its accreditation pursuant to Section 94890.

(c)Upon granting an approval to operate pursuant to this section, the bureau may regulate the public institution of higher education through the powers granted, and duties imposed, by this chapter, as those powers and duties apply to a private postsecondary educational institution, as defined in Section 94858, as if the public institution of higher education were a private postsecondary educational institution.

(d)Upon obtaining an approval to operate pursuant to this section, the public institution of higher education is subject to any provisions of, and any regulations adopted pursuant to, this chapter that apply to a private postsecondary educational institution, as defined in Section 94858, as if the public institution of higher education were a private postsecondary educational institution.

(e)(1)The bureau may adopt regulations to carry out the purposes of this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(2)For purposes of the adoption of emergency regulations pursuant to this subdivision, both of the following apply:

(A)A finding of emergency shall be deemed to be satisfied.

(B)The emergency regulations shall be deemed to be necessary for the immediate preservation of the public peace, health and safety, or general welfare.

(f)For purposes of this section, public institution of higher education means a public institution of higher education established by a state other than the State of California.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

SECTION 1.Section 94874.9 of the Education Code is amended to read:94874.9.(a)An independent institution of higher education, as defined in Section 66010, that is exempt from this chapter pursuant to subdivision (i) of Section 94874, or a public institution of higher education, as defined in Section 94858.5, shall comply with all applicable state and federal laws, including laws relating to fraud, abuse, and false advertising.(b)An institution described in subdivision (a) may execute a contract with the bureau for the bureau to review and, as appropriate, act on complaints concerning the institution, in accordance with Section 600.9 of Title 34 of the Code of Federal Regulations.(c)(1)The execution of a contract by the bureau with an institution pursuant to subdivision (b) shall constitute establishment by the state of that institution to offer programs beyond secondary education, including programs leading to a degree or certificate, in accordance with Section 600.9 of Title 34 of the Code of Federal Regulations.(2)The execution of a contract by the bureau with a public institution of higher education, as defined in Section 94858.5, does not, in and of itself, qualify the institution for participation in the Cal Grant Program established pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5.(d)The bureau shall use a standard form contract for purposes of this section.(e)A contract executed pursuant to this section shall, at a minimum, do all of the following:(1)Require an institution to do all of the following:(A)Cooperate with the bureau to resolve complaints received pursuant to this section.(B)Provide the following disclosure notice in all written and internet-based documentation in which the institutions complaint process is described, including the student catalog, student handbook, and the institutions internet website:An individual may contact the Bureau for Private Postsecondary Education for review of a complaint. The bureau may be contacted at (address), Sacramento, CA (ZIP Code), (internet website address), (telephone and fax numbers).(C)Designate a person at the institution to act as a liaison to the bureau.(D)Pay one thousand seventy-six dollars ($1,076) each year for costs incurred by the bureau to perform activities pursuant to the contract, unless another amount is determined by the bureau. Moneys paid by a public institution of higher education, as defined in Section 94858.5, shall support costs incurred by the bureau to perform activities pursuant to the contract with that institution so that fees collected by the bureau from other institutions are not used to support those costs.(2)(A)Authorize the bureau, for any complaint it receives, including any complaints related to the institutions policies or procedures, or both, as determined by the bureau, to refer the complaint to the institution, an accrediting agency, or another appropriate entity for resolution.(B)The bureau shall notify the complainant and the institution of a referral.(C)This paragraph shall not be construed to relieve the bureau of its responsibility to ensure that a complaint it has referred for purposes of resolution is resolved by the receiving entity.(f)The bureau may terminate a contract executed pursuant to this section if an institution is no longer an institution described in subdivision (a) or if the institution fails to comply with the provisions of the contract.(g)All moneys collected by the bureau that relate to a contract executed pursuant to this section, including payments collected in accordance with subparagraph (D) of paragraph (1) of subdivision (e), shall be deposited in the Private Postsecondary Education Administration Fund.(h)The bureau shall maintain, on its internet website, both of the following:(1)The provisions of the standard form contract used for purposes of this section.(2)A list of institutions with which the bureau has executed a contract pursuant to this section.(i)On or before February 1, 2017, and each year thereafter, the bureau shall report to the Director of Finance and, in conformity with Section 9795 of the Government Code, to the Legislature regarding implementation of this section. The report shall include all of the following information:(1)A list of institutions with which the bureau has executed a contract pursuant to this section.(2)The total number of complaints received by the bureau relating to institutions listed in paragraph (1).(3)The general nature of those complaints.(4)The total number of those complaints referred to another entity, disaggregated by the entity to which each complaint was referred.(5)The total number of complaints resolved, disaggregated by the entity that resolved each complaint.(6)The total number of complaints pending, disaggregated by the entity to which each complaint was referred.(j)Notwithstanding any other law, the Department of General Services, at the request of the bureau, may exempt contracts executed pursuant to this section from any laws, rules, resolutions, or procedures that are otherwise applicable to public contracts that the Department of General Services administers.

The people of the State of California do enact as follows:SECTION 1.Section 94874.9 of the Education Code is amended to read:94874.9.

(a)An independent institution of higher education, as defined in Section 66010, that is exempt from this chapter pursuant to subdivision (i) of Section 94874 94874, or a public institution of higher education, as defined in Section 94858.5, shall comply with all applicable state and federal laws, including laws relating to fraud, abuse, and false advertising.

(b)An institution described in subdivision (a) may execute a contract with the bureau for the bureau to review and, as appropriate, act on complaints concerning the institution, in accordance with Section 600.9 of Title 34 of the Code of Federal Regulations.

(c)(1)The execution of a contract by the bureau with an institution pursuant to subdivision (b) shall constitute establishment by the state of that institution to offer programs beyond secondary education, including programs leading to a degree or certificate, in accordance with Section 600.9 of Title 34 of the Code of Federal Regulations.

(2)The execution of a contract by the bureau with a public institution of higher education, as defined in Section 94858.5, does not, in and of itself, qualify the institution for participation in the Cal Grant Program established pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5.

(d)The bureau shall use a standard form contract for purposes of this section.

(e)A contract executed pursuant to this section shall, at a minimum, do all of the following:

(1)Require an institution to do all of the following:

(A)Cooperate with the bureau to resolve complaints received pursuant to this section.

(B)Provide the following disclosure notice in all written and Internet-based internet-based documentation in which the institutions complaint process is described, including the student catalog, student handbook, and the institutions Internet Web site: internet website:

An individual may contact the Bureau for Private Postsecondary Education for review of a complaint. The bureau may be contacted at (address), Sacramento, CA (ZIP Code), (Internet Web site (internet website address), (telephone and fax numbers).

(C)Designate a person at the institution to act as a liaison to the bureau.

(D)Pay one thousand seventy-six dollars ($1,076) each year for costs incurred by the bureau to perform activities pursuant to the contract, unless another amount is determined by the bureau. Moneys paid by a public institution of higher education, as defined in Section 94858.5, shall support costs incurred by the bureau to perform activities pursuant to the contract with that institution so that fees collected by the bureau from other institutions are not used to support those costs.

(2)(A)Authorize the bureau, for any complaint it receives, including any complaints related to the institutions policies or procedures, or both, as determined by the bureau, to refer the complaint to the institution, an accrediting agency, or another appropriate entity for resolution.

(B)The bureau shall notify the complainant and the institution of a referral.

(C)This paragraph shall not be construed to relieve the bureau of its responsibility to ensure that a complaint it has referred for purposes of resolution is resolved by the receiving entity.

(f)The bureau may terminate a contract executed pursuant to this section if an institution is no longer an independent institution of higher education as defined in Section 66010 described in subdivision (a) or if the institution fails to comply with the provisions of the contract.

(g)All moneys collected by the bureau that relate to a contract executed pursuant to this section, including payments collected in accordance with subparagraph (D) of paragraph (1) of subdivision (e), shall be deposited in the Private Postsecondary Education Administration Fund.

(h)The bureau shall maintain, on its Internet Web site, internet website, both of the following:

(1)The provisions of the standard form contract used for purposes of this section.

(2)A list of institutions with which the bureau has executed a contract pursuant to this section.

(i)On or before February 1, 2017, and each year thereafter, the bureau shall report to the Director of Finance and, in conformity with Section 9795 of the Government Code, to the Legislature regarding implementation of this section. The report shall include all of the following information:

(1)A list of institutions with which the bureau has executed a contract pursuant to this section.

(2)The total number of complaints received by the bureau relating to institutions listed in paragraph (1).

(3)The general nature of those complaints.

(4)The total number of those complaints referred to another entity, disaggregated by the entity to which each complaint was referred.

(5)The total number of complaints resolved, disaggregated by the entity that resolved each complaint.

(6)The total number of complaints pending, disaggregated by the entity to which each complaint was referred.

(j)Notwithstanding any other law, the Department of General Services, at the request of the bureau, may exempt contracts executed pursuant to this section from any laws, rules, resolutions, or procedures that are otherwise applicable to public contracts that the Department of General Services administers.

Date	Status
Jun 23, 2022	In committee: Set, first hearing. Hearing canceled at the request of author.
Jun 20, 2022	From committee: Do pass and re-refer to Com. on ED. (Ayes 13. Noes 0.) (June 20). Re-referred to Com. on ED.
Jun 14, 2022	From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D.
May 25, 2022	Referred to Coms. on B., P. & E.D. and ED.
May 12, 2022	In Senate. Read first time. To Com. on RLS. for assignment.
May 12, 2022	Read third time. Passed. Ordered to the Senate. (Ayes 65. Noes 0. Page 4659.)
May 5, 2022	Read second time. Ordered to Consent Calendar.
May 4, 2022	From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 4).
Apr 19, 2022	From committee: Do pass and re-refer to Com. on APPR. (Ayes 19. Noes 0.) (April 19). Re-referred to Com. on APPR.
Apr 6, 2022	From committee: Do pass and re-refer to Com. on B. & P. (Ayes 11. Noes 0.) (April 5). Re-referred to Com. on B. & P.
Mar 3, 2022	Referred to Coms. on HIGHER ED. and B. & P.
Feb 17, 2022	From printer. May be heard in committee March 19.
Feb 16, 2022	Read first time. To print.