text:
(a) The authority may fix, revise, charge, and collect rates, rents, fees, and charges for the use of and for the services furnished or to be furnished by each project, and may contract with any person, partnership, association or corporation, or other body, public or private, in respect thereof. These rates, rents, fees, and charges shall be fixed and adjusted in respect of the aggregate of rents, rates, fees, and charges from the project so as to provide funds sufficient with other revenues or moneys, if any, to accomplish all of the following:

(1) Pay the cost of maintaining, repairing, and operating the project and each and every portion thereof, to the extent that the payment of that cost has not otherwise been adequately provided for.

(2) Pay the principal of, and the interest on, outstanding bonds of the authority issued in respect of that project as the same shall become due and payable.

(3) Create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, bonds of the authority.

(b) (1) The rates, rents, fees, and charges referenced in subdivision (a) are not subject to supervision or regulation by any department, commission, board, body, bureau, or agency of this state other than the authority. A sufficient amount of the revenues derived in respect of a project, except a part of those revenues that is necessary to pay the cost of maintenance, repair, and operation and to provide reserves for renewals, replacements, extensions, enlargements, and improvements as may be provided for in the resolution authorizing the issuance of any bonds of the authority or in the trust agreement securing the same, shall be set aside at regular intervals provided in the resolution or trust agreement in a sinking or other similar fund.

(2) The fund established pursuant to paragraph (1) is pledged to, and charged with, the payment of the principal of and the interest on, the bonds as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided.

(3) The pledge required by paragraph (2) shall be valid and binding from the time when the pledge is made. The rates, rents, fees, and charges and other revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of that pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the authority.

(4) The use and disposition of moneys to the credit of the sinking or other similar fund shall be subject to the resolution authorizing the issuance of those bonds or of that trust agreement. Except as may otherwise be provided in that resolution or that trust agreement, the sinking or other similar fund shall be a fund for all of those bonds issued to finance projects at a participating college, or bonds issued to finance a project of a participating nonprofit entity or university applicant, without distinction or priority of one over another.

(5) The authority, in the resolution or trust agreement, may provide that the sinking or other similar fund shall be either of the following:

(A) The fund for a particular project at a participating college or university applicant and for the bonds issued to finance a particular project and may, additionally, permit and provide for the issuance of bonds having a subordinate lien in respect of the security herein authorized to other bonds of the authority and, in this case, the authority may create separate sinking or other similar funds in respect of those subordinate lien bonds.

(B) The fund for a particular project of a participating nonprofit entity or university applicant.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 22. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


kind: section

code: EDC

text: Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of, or any such trust agreement securing, such bonds, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the state or granted hereunder or under such resolution or trust agreement, and may enforce and compel the performance of all duties required by this chapter or by such resolution or trust agreement to be performed by the authority or by any officer, employee or agent thereof, including the fixing, charging, and collecting of the rates, rents, fees, and charges herein authorized and required by the provisions of such resolution or trust agreement to be fixed, established, and collected.

history: (History: Enacted by Stats. 1976, Ch. 1010.)

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 2. California Educational Facilities Authority Act > 4. Powers and Duties; Notes and Bonds


text: All moneys received pursuant to the authority of this chapter, whether as proceeds from selling or incurring bonds, or as revenue, shall be deemed to be trust funds to be held and applied solely as provided in this chapter. Notwithstanding any other law, until the funds are applied as provided in this chapter, the moneys may be invested in any obligations or securities authorized by resolutions of the authority authorizing the issuance of the bonds. An officer with whom, or any bank or trust company with which, the moneys are deposited shall act as trustee of the moneys and shall hold and apply the moneys for the purposes hereof, subject to any regulations adopted pursuant to this chapter and the resolution authorizing the issuance of any bonds or the trust agreement securing the bonds.

history: (History: Amended by Stats. 2014, Ch. 154, Sec. 7. (AB 1668) Effective July 21, 2014.)

division: 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS

part: 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS

title: 3. POSTSECONDARY EDUCATION

chapter: 2. California Educational Facilities Authority Act

article: 4. Powers and Duties; Notes and Bonds


text:
(a) The authority may issue bonds of the authority for the purpose of refunding any bonds or notes of the authority then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest date of redemption or subsequent date of redemption, purchase or maturity of the bonds, to be refunded and, if deemed advisable by the authority, for the additional purpose of paying all or any part of the cost of working capital or constructing and acquiring additions, improvements, extensions, or enlargements of a project or any portion of a project.

(b) The proceeds of any bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority, be applied to the purchase, retirement at maturity, or redemption before maturity of any outstanding bonds either on their earliest redemption date or dates, any subsequent redemption date or dates, upon their purchase or maturity, or paid to a third person to assume the authority’s obligation to make the payments, and may, pending that application, be placed in escrow to be applied to the purchase, retirement at maturity, or redemption on the date or dates determined by the authority.

(c) Any proceeds placed in escrow may, pending their use, be invested and reinvested in obligations or securities authorized by resolutions of the authority, payable or maturing at the time or times as are appropriate to assure the prompt payment of the principal, interest, and redemption premium, if any, of the outstanding bonds to be refunded at maturity or redemption of the bonds to be refunded either at their earliest redemption date or dates or any subsequent redemption date or dates. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds to be refunded or to the payment of interest on the refunding bonds. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by the authority.

(d) The portion of the proceeds of any bonds issued for the additional purpose of paying all or any part of the cost of working capital or constructing and acquiring additions, improvements, extensions, or enlargements of a project may be invested and reinvested in obligations or securities authorized by resolution of the authority, maturing not later than the time or times when the proceeds will be needed for the purpose of paying all or any part of the cost. The interest, income, and profits, if any, earned or realized on the investment may be applied to the payment of all or any part of the cost or may be used by the authority in any lawful manner.

(e) All of those refunding bonds are subject to this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.

history: (History: Amended by Stats. 2023, Ch. 131, Sec. 50. (AB 1754) Effective January 1, 2024.)

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


text:
(a) The authority may loan funds to a participating institution or university applicant and to provide for the issuance of bonds for the purpose of refinancing working capital or projects not originally funded pursuant to this chapter, such refinancing to include the repayment of costs, as defined in Section 94110, incurred for projects by the participating institution or university applicant and that have a completion date after December 29, 1969.

(b) For purposes of this section, “completion date” means, in the case of construction or renovation of a project, the date on which the notice of completion is filed, and, in the case of the acquisition of a project, the date of such acquisition.

(c) All such bonds shall be subject to this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.

history: (History: Amended by Stats. 2023, Ch. 131, Sec. 51. (AB 1754) Effective January 1, 2024.)

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


text: Bonds and notes issued by the authority under the provisions of this chapter are hereby made securities in which all banks, bankers, savings banks, trust companies, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees and other fiduciaries, and all other persons whatsoever who now are or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest any funds, including capital belonging to them or within their control; and said bonds, notes or other securities or obligations are hereby made securities which may properly and legally be deposited with and received by any state or municipal officers or agency of the state for any purpose for which the deposit of bonds or other obligations of the state is now or may hereafter be authorized by law.

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


text: The State of California pledges and agrees with the holders of the bonds, notes, and other obligations issued pursuant to authority contained in this chapter, and with those parties who may enter into contracts with the authority pursuant to this chapter, that the state will not limit, alter, or restrict the rights hereby vested in the authority and the participating private colleges, participating nonprofit entities, and university applicants to maintain, construct, reconstruct, and operate any project as defined in this chapter or to establish and collect the rents, fees, receipts, or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of maintenance and operation thereof and to fulfill the terms of any agreements made with the holders of bonds authorized by this chapter, and with the parties who may enter into contracts with the authority pursuant to this chapter, or in any way impair the rights or remedies of the holders of those bonds or those parties until the bonds, together with interest thereon, are fully paid and discharged and the contracts are fully performed on the part of the authority. The authority as a public body corporate and politic may include the pledge herein made in its bonds and contracts.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 24. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


text: On or before March 31 in each year the authority shall make an annual report of its activities for the preceding calendar year to the Governor and the Legislature. Each such report shall set forth a complete operating and financial statement covering the authority’s operations during the year. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants. The authority shall also consult with the California Postsecondary Education Commission and the Student Aid Commission with respect to the need for additional financing of student loan projects.

history: (History: Amended by Stats. 1995, Ch. 917, Sec. 7. Effective January 1, 1996.)

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


text: The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of a project by the authority will constitute the performance of an essential public function, neither the authority nor its agent shall be required to pay any taxes or assessments upon or in respect of a project or any property acquired or used by the authority under the provisions of this chapter, or upon the income therefrom, and any bonds issued under the provisions of this chapter, their transfer and the income therefrom, shall at all times be free from taxation of every kind by the state and by the municipalities and other political subdivisions in the state.

title: 3. POSTSECONDARY EDUCATION

article: 4. Powers and Duties; Notes and Bonds


text:
As used in this article, unless the context requires otherwise, the following terms have the following meanings:

(a) “Executive director” means the Executive Director of the California Educational Facilities Authority.

(b) “Financial institution” means a bank as defined under paragraph (4) of subdivision (b) of Section 1201 of the Commercial Code, including a federal- or state-chartered bank, that has been approved by the authority to enroll qualified loans in the program and has agreed to all terms and conditions set forth in this article and as may be required by the authority. A financial institution shall have a branch or office, or be otherwise present for jurisdictional purposes, in California.

(c) “Loss reserve account” means an account in the State Treasury or in any financial institution that is established and maintained by the authority for the benefit of a financial institution participating in the program for the purposes of any of the following:

(1) Depositing all required fees paid by the financial institution and the qualified borrower.

(2) Depositing contributions made by the state and, if applicable, the federal government or other sources.

(3) Covering losses on enrolled qualified loans sustained by the financial institution by disbursing funds accumulated in the loss reserve account.

(d) “Private student loan” means a loan issued by a private lending institution for the costs of attendance at any public or private nonprofit college or university in the United States, notwithstanding the definitions in subdivisions (i), (k), and (l) of Section 94110.

(e) “Program” means the California Student Loan Refinancing Program created pursuant to this article.

(f) “Qualified borrower” means an individual meeting all of the following requirements:

(1) Residency in California.

(2) Completion of a bachelor’s degree.

(3) Employment in a public service program or by a nonprofit organization located in California.

(4) Able to repay, as determined by the authority.

(5) Meeting the criteria established by the financial institution and the authority.

(g) “Qualified loan” means a loan or a portion of a loan made by a financial institution to a qualified borrower to refinance a private student loan under the program. A qualified loan made under the program may be made with the interest rates, fees, and other terms and conditions agreed upon by the financial institution and the qualified borrower. Only a loan determined by the authority to be an educational loan nondischargeable in bankruptcy as set forth in Section 523 of Title 11 of the United States Code as that section existed on August 15, 2014, shall be a qualified loan eligible for financing under this article.

history: (History: Added by Stats. 2014, Ch. 816, Sec. 2. (AB 2377) Effective January 1, 2015.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 2. California Educational Facilities Authority Act > 4.1. California Student Loan Refinancing Program


text:
(a) The California Student Loan Refinancing Program is hereby established under the administration of the authority. The goal of the program is to help college graduates who meet the eligibility criteria of the program, who are defined as qualified borrowers under Section 94157, to refinance student loan debt at favorable rates. This goal would be achieved through the creation of a revolving fund so that additional refinancing may occur to help more qualified borrowers, and through the creation of a loan loss reserve that can be leveraged by private lenders in the private student loan market.

(b) The authority may contract with any financial institution for the purpose of allowing the financial institution to participate in the program.

(c) A credit union operating pursuant to a certificate issued under the California Credit Union Law (Division 5 (commencing with Section 14000) of the Financial Code) may participate in the program only to the extent participation is in compliance with the California Credit Union Law. Nothing in this article shall be construed to limit the authority of the Commissioner of Financial Protection and Innovation to regulate credit unions subject to the commissioner’s jurisdiction under the California Credit Union Law.

history: (History: Amended by Stats. 2022, Ch. 452, Sec. 96. (SB 1498) Effective January 1, 2023.)

title: 3. POSTSECONDARY EDUCATION

article: 4.1. California Student Loan Refinancing Program


text:
(a) The authority shall establish a loss reserve account for each financial institution with which the authority enters into a contract.

(b) The loss reserve account for a financial institution shall consist of moneys deposited by the authority and, as applicable, deposited by the qualified borrowers, the financial institution, or any other source.

(c) Notwithstanding any other law, the authority may establish and maintain loss reserve accounts, as provided in subdivision (c) of Section 94157, with any financial institution under any policies the authority may adopt.

(d) All moneys in a loss reserve account established pursuant to this article are the exclusive property of, and solely controlled by, the authority. Interest or income earned on moneys credited to the loss reserve account shall be deemed to be part of the loss reserve account. The authority may withdraw from the loss reserve account all, or a portion of, the interest or other income that has been credited to the loss reserve account. Any withdrawal made pursuant to this subdivision shall be used for the sole purpose of offsetting costs associated with carrying out the program, including administrative costs and loss reserve account contributions.

(e) The combined amount to be deposited by the financial institution into any individual loss reserve account over a three-year period, in connection with any single qualified borrower, shall be not more than seventy-five thousand dollars ($75,000).

title: 3. POSTSECONDARY EDUCATION


text:
(a) If a financial institution seeks to enroll a qualified loan in the program in order to obtain the protection against loss provided by its loss reserve account, after disclosing relevant qualified loan financial information to the qualified borrower, it shall notify the authority in writing on a form prescribed by the authority, within 15 calendar days after the date on which the qualified loan is made, of all of the following:

(1) The disbursement of the qualified loan.

(2) The dollar amount of the qualified loan enrolled.

(3) The interest rate applicable to, and the term of, the qualified loan.

(4) The amount of any administrative fee related to the processing of an existing loan or the issuance of a new loan.

(b) The executive director may authorize an additional five days for a financial institution to submit the written notification described in subdivision (a) to the authority on a loan-by-loan basis for a reason limited to conditions beyond the reasonable control of the financial institution.

(c) When making a qualified loan that will be enrolled under the program, the financial institution shall require the qualified borrower to whom the qualified loan is made to pay an administration fee as determined by the authority. The financial institution shall also pay an administration fee in an amount equal to the fee paid by the qualified borrower. The financial institution shall deliver the fees collected under this subdivision to the authority for deposit in the loss reserve account for the financial institution.

title: 3. POSTSECONDARY EDUCATION


text:
(a) The authority shall establish procedures under which financial institutions may submit claims for reimbursement for losses incurred as a result of qualified loan defaults. A financial institution that charges off all or part of a qualified loan to the loss reserve account may file a claim for reimbursement with the authority if all of the following conditions are met:

(1) The claim occurs contemporaneously with the action of the financial institution to charge off all or part of the qualified loan.

(2) The charge off on a qualified loan is made in a manner that is consistent with the financial institution’s usual method for making determinations on personal loans that are not qualified loans.

(3) The financial institution has met all of the conditions established by the authority to assist the borrower in making payments prior to filing a claim for reimbursement.

(b) Costs for which a financial institution may be reimbursed from its loss reserve account include the amount of qualified loan principal charged off, accrued interest on the principal, reasonable out-of-pocket expenses incurred in pursuing its collection efforts, including preservation of collateral, and any other related costs. Proper documentation of the expenses, to the satisfaction of the authority, shall be presented at the time of the claim.

(c) If a financial institution files two or more claims contemporaneously, and there are insufficient funds in the loss reserve account at that time to cover the entire amount of such claims, the financial institution may designate the order of priority in which the claims shall be paid.

(d) A financial institution may seek reimbursement of qualified loan losses prior to the liquidation of collateral, if any, from defaulted qualified loans. The financial institution shall repay the loss reserve account for any moneys received as reimbursement under this section if the financial institution recovers moneys from the qualified borrower or from the liquidation of collateral for the defaulted qualified loan, less any reasonable out-of-pocket expenses incurred in collection of this amount.

(e) In any case in which the payment of a claim under this section has fully covered a financial institution’s loss on a qualified loan, the financial institution shall assign to the authority any right or title to, or interest in, any collateral, security, or other right of recovery in connection with a qualified loan made under the program.

title: 3. POSTSECONDARY EDUCATION


text: Notwithstanding Section 10231.5 of the Government Code, the authority shall annually submit a report to the Governor and the Legislature that describes the program’s financial condition and its results. Programmatic results described in the report shall include, but not necessarily be limited to, the total number of qualified borrowers served and the dollar amount of qualified loans issued for all new qualified loans issued since the report for the prior year. The report required by this section shall be submitted in accordance with Section 9795 of the Government Code.

title: 3. POSTSECONDARY EDUCATION


text: The authority may enter into agreements with financial institutions, or with other agencies of the state, to provide necessary assistance in carrying out the program, including origination and servicing of qualified loans.

title: 3. POSTSECONDARY EDUCATION


text: Notwithstanding the other provisions of this article, the authority may facilitate the development of a secondary market for a qualified loan under the program by providing security for that loan, thereby increasing participation in the program by financial institutions and improving access to qualified borrowers to refinance private student loans. For purposes of this section, the actions that the authority may take include, but are not necessarily limited to, assigning all or a portion of any loss reserve account to any other entity in connection with providing security for a qualified loan, including a trustee of a securitization trust, transferring a qualified loan from a financial institution to a securitization trust, and assisting underwriters in marketing a qualified loan to the secondary market.

title: 3. POSTSECONDARY EDUCATION


text: The authority may adopt emergency regulations for the implementation of the program. Any emergency regulations that may be adopted by the authority under this section shall be adopted in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.

title: 3. POSTSECONDARY EDUCATION


text: Except as otherwise expressly provided in this chapter, any member, officer, agent or employee of the authority who is interested, either directly or indirectly, in any contract of another with the authority, or in the sale of any property, either real or personal, to the authority, shall be guilty of a misdemeanor.

title: 3. POSTSECONDARY EDUCATION

article: 5. Conflicts of Interest

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 2. California Educational Facilities Authority Act > 5. Conflicts of Interest


text: The State Controller and his legally authorized representatives are hereby authorized and empowered from time to time to examine the accounts and books of the authority, including its receipts, disbursements, contracts, sinking funds, investments and any other matters relating to its financial standing.

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 2. California Educational Facilities Authority Act > 6. Examination and Visitorial Power of State; Assistance of State Employees


text:
The authority shall be entitled to call to its assistance and avail itself of the services of such employees of any state department or agency as it may require and as may be available to it for said purpose.

The Attorney General shall be the legal counsel for the authority, but with the approval of the Attorney General the authority may employ such legal counsel as in its judgment is necessary or advisable to enable it to carry out the duties and functions imposed upon it by this chapter, including the appointment of such bond counsel as may be deemed advisable in connection with the issuance and sale of bonds.

title: 3. POSTSECONDARY EDUCATION

article: 6. Examination and Visitorial Power of State; Assistance of State Employees


text:
(a) In addition to the foregoing powers, the authority shall have power to accomplish both of the following:

(1) Upon application of the participating college, participating nonprofit entity, or university applicant, to construct, acquire, or otherwise provide projects for the use and benefit of the participating private college, public college, or public university and the students, faculty, and staff of that participating institution. The participating college, participating nonprofit entity, or university applicant for which a project is undertaken by the authority shall approve the plans, specifications, and location of that project.

(2) To lease any project provided pursuant to this section to the participating private college, participating nonprofit entity, or university applicant for which that project is provided. When the liabilities of the authority incurred for a project have been met and the bonds of the authority issued therefor have been paid, or those liabilities and bonds have otherwise been discharged, the authority shall transfer title to all the real and personal property of that project vested in the authority, to the participating college, participating nonprofit entity, or university applicant in connection with which that project is then leased. However, if at any time prior thereto a participating private college ceases to offer educational facilities, then the title shall vest in the State of California.

(b) Any lease of a project authorized by this section shall be a general obligation of the lessee and may contain provisions, which shall be a part of the contract with the holders of the bonds of the authority issued for the project, as to all of the following:

(1) Pledging all or any part of the moneys, earnings, income, and revenues derived by the lessee from the project or any part or parts thereof, or other personal property of the lessee, to secure payments required under the terms of that lease.

(2) The rates, rentals, fees, and other charges to be fixed and collected by the lessee, the amounts to be raised in each year thereby, and the use and disposition of that income and those moneys, earnings, and revenues.

(3) The setting aside of reserves and the creation of special funds and the regulation and disposition thereof.

(4) The procedure, if any, by which the terms of the lease may be amended, the amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given.

(5) Vesting in a trustee or trustees the specified properties, rights, powers, and duties as shall be deemed necessary or desirable for the security of the holders of the bonds of the authority issued for those projects.

(6) The obligations of the lessee with respect to the replacement, reconstruction, maintenance, operation, repairs, and insurance of that project.

(7) Defining the acts or omissions to act that constitute a default in the obligations and duties of the lessee, and providing for the rights and remedies of the authority and of its bondholders in the event of default.

(8) Any other matters, of like or different character, that may be deemed necessary or desirable for the security or protection of the authority or the holders of its bonds.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 25. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 7. Construction of Facilities

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 2. California Educational Facilities Authority Act > 7. Construction of Facilities


text:
The authority also shall have power:

(a) To make loans to any participating private college, participating nonprofit entity, or university applicant for the acquisition or construction of projects in accordance with a loan agreement and in accordance with plans and specifications that shall be subject to approval by the authority. No loan shall exceed the total cost of the project and the equipment therefor as determined by the authority. Each loan shall be premised upon an agreement between the authority and the participating private college, participating nonprofit entity, or university applicant as to payment, security, maturity, redemption, interest, and other appropriate matters.

(b) To make loans to any participating private college, participating nonprofit entity, or university applicant to refund existing bonds, mortgages, or advances or other obligations incurred, given, or made by the private college, participating nonprofit entity, or university applicant for the acquisition or construction of any projects.

(c) To make loans to any participating private college for working capital in accordance with a loan agreement. Each loan shall be premised upon an agreement between the authority and the participating private college as to payment, security, maturity, redemption, interest, and other appropriate matters.

(d) To make loans to any participating private college to refund existing bonds, mortgages, or advances or other obligations incurred, given, or made by the participating private college for working capital.

history: (History: Amended (as amended by Stats. 2022, Ch. 123, Sec. 6) by Stats. 2022, Ch. 572, Sec. 26. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 7. Construction of Facilities


text: For the purpose of obtaining and securing loans under Section 94191, every participating private college, participating nonprofit entity, or university applicant shall, notwithstanding any other law, have power to mortgage and pledge any of its real or personal property, and to pledge any of its income from whatever source to repay the principal of and interest on any loan made to it by the authority or to pay the interest on and principal and redemption premium, if any, of any note, bond, or other evidence of indebtedness evidencing the debt created by that loan; provided that the foregoing shall not be construed to authorize actions in conflict with specific legislation, trusts, endowment, or other agreements relating to specific properties or funds.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 27. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 7. Construction of Facilities


text: Moneys of the authority received from any participating private college, participating nonprofit entity, or university applicant in payment of any sum due to the authority pursuant to the terms of any loan or other agreement or any bond, note, or other evidence of indebtedness, shall be deposited in an account in which only moneys received from participating private colleges, participating nonprofit entities, or university applicants shall be deposited, and shall be kept separate and apart from and not commingled with any other moneys of the authority. Moneys deposited in that account shall be paid out on checks signed by the chairperson of the authority or by a person or persons authorized by the authority.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 28. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 7. Construction of Facilities


text:
(a) Whenever the authority under Section 94190 undertakes to construct, acquire, or otherwise provide a project and to lease the same to a private college or university applicant the lessee shall be responsible for the direct operation and maintenance costs of such project and, in addition, shall be responsible for the overall supervision of each project, for the overhead and general administrative costs of the lessee which are incurred because of such project and for the integration of each project operation into the lessee’s educational program.

(b) Whenever the authority under Section 94191 makes loans for the construction of a project, the private college or university applicant at which such project is located shall be responsible for the direct operation and maintenance costs of such project and, in addition, shall be responsible for the overall supervision of each project, for the overhead and general administrative costs of the private college or university applicant which are incurred because of such project and for the integration of each project operation into the institution’s educational program.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 29. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 7. Construction of Facilities


text: Any pledge of moneys, earnings, income, or revenues authorized with respect to participating private colleges, participating nonprofit entities, or university applicants, pursuant to this chapter, shall be valid and binding from the time when the pledge is made. The moneys, earnings, income, or revenues so pledged and thereafter received by the pledgor shall immediately be subject to the lien of that pledge without any physical delivery thereof or further act. The lien of that pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the pledgor irrespective of whether the parties have notice thereof. No instrument by which a pledge is created need be filed or recorded in any manner.

history: (History: Amended by Stats. 2022, Ch. 572, Sec. 30. (AB 190) Effective September 27, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 7. Construction of Facilities


text: This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.

title: 3. POSTSECONDARY EDUCATION

article: 8. Construction

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 2. California Educational Facilities Authority Act > 8. Construction


text: Nothing contained in this chapter shall be deemed or construed to create or constitute a debt, liability, or a loan or pledge of the credit of the state.

title: 3. POSTSECONDARY EDUCATION

article: 8. Construction


text:
(a) This chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized by this chapter, and shall be regarded as supplemental and additional to powers conferred by other laws. The issuance of bonds and refunding bonds under this chapter need not comply with any other law applicable to the issuance of bonds including, but not limited to, Division 13 (commencing with Section 21000) of the Public Resources Code.

(b) Except as otherwise provided in subdivision (a), a project that is financed in accordance with this chapter shall not be exempt from any provision of law that is otherwise applicable to the project, and the applicant shall provide documentation, before the authority approves the issuance of bonds for the project, that the project has complied with Division 13 (commencing with Section 21000) of the Public Resources Code, or is not a project under that division.

history: (History: Amended by Stats. 2006, Ch. 714, Sec. 1. Effective September 29, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 8. Construction


text: The powers granted to the authority by this chapter may be exercised without regard or reference to any department or agency of the state. All other general or special laws, or parts thereof, inconsistent with this chapter are hereby declared to be inapplicable to the provisions of this chapter.

title: 3. POSTSECONDARY EDUCATION

article: 8. Construction


text:
(a) As a condition of doing business in this state, each postsecondary educational institution governed by Chapter 7 (commencing with Section 94700), and each organization that administers educational testing for use in the admissions process by any public or private postsecondary educational institution, shall, in administering any test or examination, permit any student who is eligible to undergo the test or examination to do so, without penalty, at a time when that activity would not violate the student’s religious creed.

(b) This requirement shall not apply in the event that administering the test or examination at an alternate time would impose an undue hardship which could not reasonably have been avoided. In any court proceeding in which the existence of an undue hardship that could not reasonably have been avoided is an issue, the burden of proof shall be upon the institution.

(c) This section shall become operative on January 1, 1997.

history: (History: Repealed (in Sec. 283) and added by Stats. 1995, Ch. 758, Sec. 283.5. Effective January 1, 1996. Section operative January 1, 1997, by its own provisions.)

title: 3. POSTSECONDARY EDUCATION

chapter: 3.2. Accommodation of Religious Creed

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 3.2. Accommodation of Religious Creed


text:
(a) No private postsecondary educational institution shall make or enforce a rule subjecting a student to disciplinary sanctions solely on the basis of conduct that is speech or other communication that, when engaged in outside the campus or facility of a private postsecondary institution, is protected from governmental restriction by the First Amendment to the United States Constitution or Section 2 of Article I of the California Constitution.

(b) A student enrolled in a private postsecondary institution at the time that the institution has made or enforced any rule in violation of subdivision (a) may commence a civil action to obtain appropriate injunctive and declaratory relief as determined by the court. Upon motion, a court may award attorney’s fees to a prevailing plaintiff in a civil action pursuant to this section.

(c) This section does not apply to a private postsecondary educational institution that is controlled by a religious organization, to the extent that the application of this section would not be consistent with the religious tenets of the organization.

(d) This section does not authorize the prior restraint of student speech.

(e) This section does not prohibit the imposition of discipline for harassment, threats, or intimidation, unless constitutionally protected.

(f) This section does not prohibit an institution from adopting rules and regulations that are designed to prevent hate violence, as defined in subdivision (a) of Section 4 of Chapter 1363 of the Statutes of 1992, from being directed at students in a manner that denies them their full participation in the educational process, so long as the rules and regulations conform to standards established by the First Amendment to the United States Constitution and Section 2 of Article I of the California Constitution for citizens generally.

history: (History: Amended by Stats. 2008, Ch. 525, Sec. 5. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION

chapter: 3.3. Speech and Other Communication

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 3.3. Speech and Other Communication


text:
Each private postsecondary educational institution with a full-time equivalency enrollment of over 1,000 and private vocational educational institution shall do all of the following:

(a) Require the appropriate officials at each campus of their respective institutions to compile records of all occurrences reported to police or campus authorities, and arrests for crimes involving violence, theft, or destruction of property, or illegal drugs or alcoholic intoxication that happen on the campus.

(b) Make the information compiled pursuant to subdivision (a) available on the request of any student or employee of, or applicant for admission to, any campus of their respective institutions.

(c) Require the appropriate officials at each campus of their respective institutions to prepare, prominently post, and copy for distribution on request a campus safety plan that sets forth all of the following: the availability and location of security personnel, methods for summoning assistance of security personnel, any special safeguards that have been established for particular facilities or activities, any actions taken in the preceding 18 months to increase safety, and any changes in safety precautions expected to be made during the next 24 months. For the purposes of this section, posting and distribution may be accomplished by including relevant safety information in a student handbook or brochure that is made generally available to students.

history: (History: Amended by Stats. 1993, Ch. 8, Sec. 53. Effective April 15, 1993.)

title: 3. POSTSECONDARY EDUCATION

chapter: 3.7. Student Safety

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 3.7. Student Safety


text:
(a) Each private postsecondary educational institution and private vocational educational institution shall each adopt, and implement at each of their respective campuses or other facilities, a written procedure or protocols to ensure, to the fullest extent possible, that students, faculty, and staff who are victims of sexual assault committed at or upon the grounds of, or upon off-campus grounds or facilities maintained by the institution, or upon grounds or facilities maintained by affiliated student organizations, shall receive treatment and information. If appropriate on-campus treatment facilities are unavailable, the written procedure or protocols may provide for referrals to local community treatment centers.

(b) The written procedures or protocols adopted pursuant to subdivision (a) shall contain at least the following information:

(1) The college policy regarding sexual assault on campus.

(2) Personnel on campus who should be notified, and procedures for notification, with the consent of the victim.

(3) Legal reporting requirements, and procedures for fulfilling them.

(4) Services available to victims, and personnel responsible for providing these services, such as the person assigned to transport the victim to the hospital, to refer the victim to a counseling center, and to notify the police, with the victim’s concurrence.

(5) A description of campus resources available to victims, as well as appropriate off-campus services.

(6) Procedures for ongoing case management, including procedures for keeping the victim informed of the status of any student disciplinary proceedings in connection with the sexual assault, and the results of any disciplinary action or appeal, and helping the victim deal with academic difficulties that may arise because of the victimization and its impact.

(7) Procedures for guaranteeing confidentiality and appropriately handling requests for information from the press, concerned students, and parents.

(8) Each victim of sexual assault should receive information about the existence of at least the following options: criminal prosecutions, civil prosecutions, the disciplinary process through the college, the availability of mediation, alternative housing assignments, and academic assistance alternatives.

(c) For the purposes of this section, “sexual assault” includes, but is not limited to, rape, forced sodomy, forced oral copulation, rape by a foreign object, sexual battery, or threat of sexual assault.

history: (History: Amended by Stats. 1993, Ch. 8, Sec. 55. Effective April 15, 1993.)

title: 3. POSTSECONDARY EDUCATION


text: Whenever any benevolent, religious, or fraternal organization or society, having a grand lodge, assembly, conference, or other legislative or representative head in the state, and having two or more colleges or institutions of higher education under its patronage, desires, for the purpose of greater efficiency and simplicity in the administration of its educational interests, to consolidate the institutions under one management, the organization or society may consolidate the institutions under one management, pursuant to this article.

history: (History: Enacted by Stats. 1976, Ch. 1010.)

title: 3. POSTSECONDARY EDUCATION

chapter: 4. Consolidation of Private Colleges

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 4. Consolidation of Private Colleges


text: The grand lodge, assembly, conference, or other legislative or representative head having authorized a consolidation of its institutions, a new corporation shall be formed.

title: 3. POSTSECONDARY EDUCATION


text: The board of trustees of the new corporation shall at first consist of the persons constituting the boards of trustees of the several institutions consolidating, and others. The number of trustees shall not exceed 45. The board of trustees shall be so classified that the term of office of one-third of its members expires each year, and unless otherwise provided in the articles of incorporation or bylaws, the successors of the trustees, as their terms expire shall be elected by the grand lodge, assembly, conference, or other legislative or representative head, at its annual meeting.

title: 3. POSTSECONDARY EDUCATION


text: After the two or more colleges or institutions of higher education under the patronage of any benevolent, religious, or fraternal organization or society, having a grand lodge, assembly, conference, or other legislative or representative head in the state have become consolidated, the board of trustees of the new corporation may be reduced in number after it has transacted the business of the corporation for a period of five years after the consolidation.

title: 3. POSTSECONDARY EDUCATION


text: Unless other provision is made in the articles of incorporation the number of trustees shall be reduced by the grand lodge, assembly, conference, or other legislative or representative head of the colleges or institutions of higher education. At any annual session of the grand lodge, assembly, conference, or other legislative or representative head, there shall be dropped from the number of trustees to be elected at that session such a number of trustees as those present at the session determine, except that at no time shall the number of trustees composing the board be less than 15.

title: 3. POSTSECONDARY EDUCATION


text: Provision may be made in the articles of incorporation, in addition to any other matters required by law, for the number of trustees, for the method of nominating and electing trustees, and special qualifications, if any, required of persons to be elected or of any particular number of such persons. If not made in the articles of incorporation, such methods and qualifications may be set forth in the bylaws.

title: 3. POSTSECONDARY EDUCATION


text: Bylaws may be adopted and amended by the trustees except as otherwise provided in the articles or the bylaws. The bylaws may set forth the particular officers or persons in the grand lodge, conference, assembly, or other legislative or representative head entitled to vote as members of the corporation, and also the manner and method by which the voting is had. The bylaws may limit or restrict the power of the trustees to adopt, amend, or repeal bylaws. After the limitation or restriction is made it shall be complied with unless it is removed with the consent of the officers or persons entitled to vote as members. Where applicable the provisions of Articles 5 and 6 (commencing with Sections 5150 and 5160) of Chapter 2 of Part 2 of Division 2 of Title 1 of the Corporations Code apply to the bylaws.

history: (History: Amended by Stats. 1978, Ch. 1305.)

title: 3. POSTSECONDARY EDUCATION


text: Except as otherwise provided in Section 94406, in the articles of incorporation, or the bylaws, the board of trustees of the new corporation have all of the powers granted to boards of directors by and enumerated in Article 1 (commencing with Section 5210) of Chapter 2 of Part 2 of Division 2 of Title 1 of the Corporations Code.

title: 3. POSTSECONDARY EDUCATION


text: The board of trustees of the new corporation shall report annually to the grand lodge, conference, assembly, or other legislative or representative head controlling it, the condition of affairs of the corporation, and the amount and manner of its receipts and expenditures.

title: 3. POSTSECONDARY EDUCATION


text: The several boards of trustees of the consolidating institutions shall transfer all property, real and personal, held by them, to the new corporation, together with all powers, privileges, and authority conferred upon or enjoyed by them under their respective charters or acts of incorporation. The new corporation receiving the property shall assume all indebtedness and liabilities of the consolidating institutions, but shall not transfer the property from one location to another, except by an affirmative vote of not less than three-fourths of the board of trustees of the new corporation, nor divert specific grants, donations, or bequests from the purposes for which the grants, donations, or bequests were made. After the boards of trustees have conveyed the property, real and personal, of the various institutions to the new corporation, and the property has been accepted by the new corporation, the franchises held by the consolidating corporations shall cease, and the corporations are dissolved.

title: 3. POSTSECONDARY EDUCATION


text: Any educational institution of collegiate grade within this state not conducted for profit may acquire by eminent domain any property necessary to carry out any of its powers or functions.

title: 3. POSTSECONDARY EDUCATION

chapter: 5. Eminent Domain

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 5. Eminent Domain


text:
(a) The Office of Emergency Services shall develop guidelines for private colleges and universities to use in developing emergency evacuation plans for all forms of student housing owned, operated, and offered by private colleges and universities, both on campus and off campus. In developing the guidelines, the Office of Emergency Services shall consider Sections 3.09 and 3.13 of Title 19 of the California Code of Regulations. The guidelines shall address all of the following issues:

(1) Plan content. The plans should include, but need not be limited to, the following:

(A) Specific evacuation routes that recognize the needs of persons with special needs, such as persons with disabilities.

(B) The designation of a meeting place or places upon evacuation.

(C) The education of students and staff in emergency procedures.

(2) The implementation and maintenance of the evacuation plan by the director of student housing, or other appropriate officer, at individual campuses. The director, or other appropriate officer, is responsible for scheduling periodic tests of the plan and implementing changes as needed.

(b) Each private college or university shall establish an emergency evacuation plan for its postsecondary student housing and may consult with the Office of Emergency Services for guidance in developing and establishing the plan.

history: (History: Amended by Stats. 2013, Ch. 352, Sec. 77. (AB 1317) Effective September 26, 2013. Operative July 1, 2013, by Sec. 543 of Ch. 352.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 6. Emergency Evacuation Plans for Postsecondary Student Housing


text: This chapter shall be known, and may be cited, as the California Private Postsecondary Education Act of 2009.

history: (History: Added by Stats. 2009, Ch. 310, Sec. 6. (AB 48) Effective January 1, 2010. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

chapter: 8. Private Postsecondary Institutions

article: 1. General Provisions

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 8. Private Postsecondary Institutions > 1. General Provisions


text: Whenever a reference is made to the former Private Postsecondary Education and Student Protection Act, the former Private Postsecondary and Vocational Education Reform Act of 1989, or the former Chapter 7 (commencing with Section 94700) of Part 59 of Division 10 of Title 3 of the Education Code, as it read on June 30, 2007, by the provisions of any statute or regulation, it shall be construed as referring to the provisions of this chapter. Whenever a reference is made to the former Bureau for Private Postsecondary and Vocational Education by the provisions of any statute or regulation, it shall be construed as referring to the Bureau for Private Postsecondary Education.

title: 3. POSTSECONDARY EDUCATION

article: 1. General Provisions


text:
The Legislature finds and declares all of the following:

(a) In 2013, more than 300,000 Californians attended more than 1,100 private postsecondary schools in California.

(b) Private postsecondary schools can complement the public education system and help develop a trained workforce to meet the demands of California businesses and the economy; however, concerns about the value of degrees and diplomas issued by private postsecondary schools, and the lack of protections for private postsecondary school students and consumers of those schools’ services, have highlighted the need for strong state-level oversight of private postsecondary schools.

(c) Numerous reports and studies have concluded that California’s previous attempts at regulatory oversight of private postsecondary schools under the Department of Consumer Affairs have consistently failed to ensure student protections or provide effective oversight of private postsecondary schools.

(d) It is the intent of the Legislature in continuing the operation of this chapter for two years until January 1, 2017, to ensure all of the following:

(1) Minimum educational quality standards and opportunities for success for California students attending private postsecondary schools in California.

(2) Meaningful student protections through essential avenues of recourse for students.

(3) A regulatory structure that provides for an appropriate level of oversight.

(4) A regulatory governance structure that ensures that all stakeholders have a voice and are heard in policymaking by the bureau.

(5) A regulatory governance structure that provides for accountability and oversight by the Legislature through program monitoring and periodic reports.

(6) Prevention of the harm to students and the deception of the public that results from fraudulent or substandard educational programs and degrees.

(e) The Legislature advises future policymakers to continually and carefully evaluate this chapter and its administration and enforcement. Where there are deficiencies in the law or regulatory oversight, the Governor and the Legislature should act quickly to correct them.

history: (History: Amended by Stats. 2014, Ch. 840, Sec. 1. (SB 1247) Effective January 1, 2015. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 1. General Provisions


text:
(a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following:

(1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2).

(A) Evidence of institutional accreditation.

(B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location.

(C) The agent for service of process consistent with Section 94943.5.

(D) A copy of the institution’s catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement.

(E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration.

(F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration.

(G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration.

(H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institution’s failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.

(I) Any additional documentation the bureau deems necessary for consideration in the registration process.

(2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following:

(A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institution’s eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1).

(B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureau’s decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.

(C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution.

(3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following:

(A) The institution has its authorization or approval revoked or suspended by a state or by the federal government, or has been subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid.

(B) The institution or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution is subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency. If so, the institution shall provide the bureau a copy of the operative complaint.

(C) The institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or the accreditation of the institution is revoked or suspended.

(D) The institution settles, or is adjudged to have liability for, a civil complaint alleging the institution’s failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide to the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to subdivision (b), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution.

(4) The requirements of the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.

(5) The institution shall provide disclosures pursuant to the requirements for the Student Tuition Recovery Fund, established in Article 14 (commencing with Section 94923), and regulations adopted by the bureau related to the fund, for its students residing in California.

(b) (1) Upon receipt of any of the notifications in paragraph (3) of subdivision (a), the bureau shall, within 30 days of receiving the notice, request the institution to explain in writing why the institution should be permitted to continue to enroll California residents. If the bureau, after reviewing the information submitted in response to the request and after consultation with the Attorney General, issues a written finding that there is no immediate risk to California residents from the institution continuing to enroll new students, the institution shall be permitted, pending completion of a review by the bureau, to continue to enroll new students or the bureau may, in its discretion, limit enrollments.

(2) Any institution under review pursuant to paragraph (1) may have its registration revoked by the bureau if, after further review, the bureau issues a written finding that there is a substantial risk posed to California residents by the institution continuing to enroll California residents.

(3) An institution shall have the right to reasonable notice and opportunity to comment to and before the bureau regarding any determination to revoke registration or to limit enrollment before that determination becomes final. An institution may seek review of a bureau order limiting new student enrollment or revoking registration under this subdivision through an action brought pursuant to Section 1085 of the Code of Civil Procedure.

(4) Nothing in this subdivision shall be construed as preventing the bureau from revoking an institution’s registration on any other grounds specified in this chapter. Nothing in this section shall be construed as prohibiting or impairing the ability of an institution registered pursuant to this section or eligible to register pursuant to this section from applying to be an approved institution pursuant to this chapter.

(c) (1) This section does not apply to a higher education institution that grants undergraduate degrees, graduate degrees, or both, and that is either formed as a nonprofit corporation and is accredited by an agency recognized by the United States Department of Education, or is a public institution of higher education.

(2) This section does not apply to a higher education institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs. The bureau may adjust this charge threshold based upon the California Consumer Price Index and post notification of the adjusted charge threshold on its internet website as the bureau determines, through the promulgation of regulations, that the adjustment is consistent with the intent of this chapter.

(d) An institution described in subdivision (a) that fails to comply with this section is not authorized to operate in this state. Any institution whose registration is denied or revoked is authorized to reapply for registration after 12 months have elapsed from the date of the denial or revocation of registration.

(e) A registration with the bureau pursuant to this section shall be valid for five years.

(f) The bureau shall develop through emergency regulations effective on and after July 1, 2021, a registration form. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code. These emergency regulations shall become law through the regular rulemaking process by January 1, 2022.

(g) The bureau shall disclose on its internet website a list of institutions registered pursuant to this section through reasonable means and disclose a designated email address for California residents to send a complaint to the bureau about an institution registered pursuant to this section. Complaints received through this email address shall be investigated in the same manner as complaints received by the bureau for institutions approved to operate pursuant to this chapter, but bureau enforcement in response to such complaints against institutions registered pursuant to this section shall be governed by subdivision (b).

(h) This section shall become operative on July 1, 2022.

history: (History: Amended (as amended by Stats. 2020, Ch. 153, Sec. 2) by Stats. 2022, Ch. 544, Sec. 1. (SB 1433) Effective January 1, 2023. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 1. General Provisions


text:
(a) The bureau may establish through regulation thresholds of California-based activity that constitute limited physical presence, with those institutions subject to registration requirements defined through regulation, and minimal levels of California-based activity that do not require institutional approval by, nor registration with, the bureau. All institutions operating in the state and subject to approval or registration requirements shall comply with Section 94897.

(b) An institution is considered to have a physical presence in the state if it offers instruction or core academic support services from a physical location owned, operated, or rented by or on behalf of the institution in California.

history: (History: Added by Stats. 2022, Ch. 544, Sec. 2. (SB 1433) Effective January 1, 2023. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 1. General Provisions


text: An institution that had a valid approval to operate on June 30, 2007, issued by the former Bureau for Private Postsecondary and Vocational Education pursuant to former Chapter 7 (commencing with Section 94700) of Part 59 of Division 10 of Title 3 of the Education Code, as it read on June 30, 2007, shall maintain that approval under this chapter. For the purposes of this chapter, the approval to operate shall be valid for three calendar years after the expiration date of the approval, as it read on June 30, 2007.

history: (History: Amended by Stats. 2014, Ch. 840, Sec. 2. (SB 1247) Effective January 1, 2015. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 8. Private Postsecondary Institutions > 2. Transition Provisions


text: The bureau shall, by emergency regulation, amend, and repeal as necessary, the regulations, as they read on June 30, 2007, in Division 7.5 (commencing with Section 70000) of Title 5 of the California Code of Regulations, to conform to this chapter no later than February 1, 2010. These emergency regulations shall become permanent through the regular rulemaking process within one year of the enactment of this chapter.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text:
(a) Each unresolved matter submitted to the former Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, shall be deemed to remain pending before the bureau irrespective of any applicable deadlines. With respect to any deadline applicable to a pending matter, no time shall be deemed to have elapsed from July 1, 2007, to January 1, 2010, inclusive.

(1) For the purposes of this subdivision, “matter” includes, but is not limited to, an appeal, a complaint, a claim, an evaluation, a hearing, or an investigation.

(2) For the purposes of this subdivision, “matter” does not include a Student Tuition Recovery Fund claim.

(b) Student complaints submitted from July 1, 2007, to December 31, 2009, inclusive, shall continue to be duly recorded and investigated by the bureau.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text: For the performance of the duties and exercise of the powers vested in the bureau, the bureau shall have possession and control of all records, papers, offices, equipment, supplies, or other property, real or personal, held for the benefit or use by the former Bureau for Private Postsecondary and Vocational Education.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text: The Private Postsecondary and Vocational Education Administration Fund established by former Section 94932 of the Education Code, and extended by Chapter 635 of the Statutes of 2007, is continued in existence, and is renamed the Private Postsecondary Education Administration Fund.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text: The Student Tuition Recovery Fund established by former Section 94944 of the Education Code, and extended by Chapter 635 of the Statutes of 2007, is continued in existence.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text:
(a) Any Student Tuition Recovery Fund claims received by the former Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, that were not processed by the former Bureau for Private Postsecondary and Vocational Education and were not paid by the Department of Consumer Affairs from July 1, 2007, to June 30, 2008, inclusive, shall be processed by the bureau.

(b) Any Student Tuition Recovery Fund claims received by the Department of Consumer Affairs from July 1, 2007, to December 31, 2009, inclusive, shall be processed by the bureau.

(c) Student Tuition Recovery Fund claims filed with, and approved by, the former Bureau for Private Postsecondary and Vocational Education as of June 30, 2007, if not already paid, shall be paid before any claims approved after that date.

(d) The student’s right to recovery from the Student Tuition Recovery Fund shall be based on the law that was in effect when the student enrolled and a fee for the fund was charged as a part of tuition costs, even though that law has become inoperative, been repealed, or otherwise expired.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text:
(a) An institution that had an application for an approval to operate pending with the former Bureau for Private Postsecondary and Vocational Education on June 30, 2007, may continue to operate until a decision is made in regard to the institution regarding the application for approval to operate, but shall comply with, and is subject to, this chapter.

(b) An institution that did not have a valid approval to operate issued by, and did not have an application for approval to operate pending with, the former Bureau for Private Postsecondary and Vocational Education on June 30, 2007, that began operations between July 1, 2007, and January 1, 2010, and filed an application to operate by August 2, 2010, may continue to operate unless a denial of approval to operate has been issued and has become final, but shall comply with, and is subject to, this chapter.

(c) Students seeking to enroll in institutions operating under subdivisions (a) and (b) shall be notified by the institution, in writing and prior to executing an enrollment agreement, that the institution’s application for approval to operate has not been reviewed by the bureau.

(d) (1) An institution that is denied an approval to operate pursuant to subdivision (a) or (b) may file an appeal pursuant to the procedures established in Section 94888.

(2) An institution that has filed an appeal pursuant to paragraph (1) may continue to operate during the appeal process but must disclose in a written statement approved by the bureau, to all current and prospective students, that the institution’s application for approval to operate was denied by the bureau because the bureau determined the application did not satisfy the requirements to operate in California, that the institution is appealing the bureau’s decision, and that the loss of the appeal may result in the institution’s closure.

(3) If the bureau determines that the continued operation of an institution poses a significant risk of harm to students, the bureau shall make an emergency decision pursuant to Section 94938.

history: (History: Amended by Stats. 2016, Ch. 593, Sec. 3. (SB 1192) Effective January 1, 2017. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text:
Notwithstanding any other provision of law:

(a) For any claims that a student had based on a violation of the Private Postsecondary and Vocational Education Reform Act of 1989 on or before June 30, 2007, the period of time from June 30, 2007, to December 31, 2009, inclusive, shall be excluded in determining the deadline or the statute of limitation for filing any claim with the bureau or a lawsuit based on any claim.

(b) All claims described in subdivision (a), except claims to the Student Tuition Recovery Fund, including those contained in a lawsuit or other legal action, shall be determined or adjudicated based on the law that was in effect when the violations or events took place, even though those provisions have become inoperative, been repealed, or otherwise expired.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text:
(a) Notwithstanding the inoperative status or repeal of the former Private Postsecondary and Vocational Education Reform Act of 1989 on or after July 1, 2007, any claim or cause of action in any manner based on the act that was commenced on or before June 30, 2007, whether or not reduced to a final judgment, shall be preserved, and any remedy that was or could have been ordered to redress a violation of the act on or before June 30, 2007, may be ordered or maintained thereafter. If a final judgment was obtained in an action commenced on or after July 1, 2007, under the authority of Chapter 635 of the Statutes of 2007, the final judgment and any legal remedy that was or could be maintained on or after July 1, 2007, under that statute, shall be preserved and maintained thereafter.

(b) The rights, obligations, claims, causes of action, and remedies described in subdivision (a) shall be determined by the provisions of the former Private Postsecondary and Vocational Education Reform Act of 1989 in effect on or before June 30, 2007, notwithstanding the inoperative status or repeal of the former Private Postsecondary and Vocational Education Reform Act of 1989 on or after July 1, 2007.

title: 3. POSTSECONDARY EDUCATION

article: 2. Transition Provisions


text: Unless the context requires otherwise, the definitions set forth in this article govern the construction of this chapter.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions

path: 3. POSTSECONDARY EDUCATION > 10. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 59. PRIVATE POSTSECONDARY AND HIGHER EDUCATION INSTITUTIONS > 8. Private Postsecondary Institutions > 3. Definitions


text: “Academic year” means a period, including a minimum of 30 weeks of instructional time, in which a full-time student attending an institution that measures educational program length in credit hours completes 24 semester or trimester hours or 36 quarter hours, or an institution that measures educational program length in clock hours completes at least 900 clock hours.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Accredited” means an institution is accredited by an accrediting agency recognized by the United States Department of Education.

history: (History: Amended by Stats. 2014, Ch. 840, Sec. 4. (SB 1247) Effective January 1, 2015. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Accrediting agency” is an agency recognized by the United States Department of Education.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Annual report” means the yearly report required to be filed by institutions.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Applicant” means a person, as defined in Section 94855, who has submitted an application to the bureau for an approval to operate or for a renewal of an approval to operate. An approval to operate shall be issued only to an applicant.

history: (History: Amended by Stats. 2024, Ch. 497, Sec. 78. (SB 1526) Effective January 1, 2025. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Approval to operate” or “approval” means the authorization pursuant to this chapter to offer to the public and to provide postsecondary educational programs, as well as the written document issued to an institution signifying its approval to operate.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Approved to operate” or “approved” means that an institution has received authorization pursuant to this chapter to offer to the public and to provide postsecondary educational programs.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Avocational education” means education offered for the purpose of personal entertainment, pleasure, or enjoyment.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Branch campus” means a site other than the main campus or a satellite location.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Bureau” means the Bureau for Private Postsecondary Education in the Department of Consumer Affairs.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Change in business organization form” means a change of a business organization’s original form, including, for example, a situation in which a sole proprietorship becomes a partnership or corporation, or when a business organization becomes a nonprofit public benefit corporation or forms a nonprofit public benefit corporation as a subsidiary to provide the educational programs for which the business organization has an approval to operate.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Change in control” means a change in the ownership of an institution in which a person who previously did not own at least 25 percent of the stock or interest in the institution or its parent company acquires ownership of at least 25 percent of the stock or interest in the institution or its parent company. “Change in control” does not include an ownership change between family members involving less than 51 percent of the stock or interest in the institution.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Change in ownership” means the acquisition by a person of more than 50 percent of an interest in or stock of a parent company.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Change of location” means a move or relocation more than 10 miles from the site at which the institution offers instruction.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Class day” means a day a student is scheduled to attend a class session, or for students receiving instruction through distance education, any calendar day except Saturday, Sunday, or any holiday enumerated in Section 6700 of the Government Code.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Class session” means part of a class day that an institution conducts instruction in a particular subject.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Commence operations” means an institution has begun to provide educational programs.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Continuing education” means instruction that does not lead to a degree in subjects that licensees are required to take solely for the purpose of continued licensure, or to enhance the licensee’s skills and knowledge within their particular profession, occupation, trade, or career field.

history: (History: Amended by Stats. 2021, Ch. 552, Sec. 1. (SB 802) Effective January 1, 2022. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Curriculum” means an organized set of courses or modules of instruction that are prerequisites to the award of a degree or diploma.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Default” means failure of a borrower and endorser, if any, to make an installment payment for a loan received under the federal student financial aid programs when due, or to meet other terms of the promissory note, provided that this failure persists for 270 days if payment is due monthly or 360 days if payment is due less frequently. For purposes of this section, “endorser” means an individual who signs a promissory note and agrees to repay the loan in the event that the borrower does not.

history: (History: Amended by Stats. 2014, Ch. 840, Sec. 6. (SB 1247) Effective January 1, 2015. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Degree” means a recognized educational credential awarded by an institution that signifies satisfactory completion of the requirements of a postsecondary educational program at the associate’s level or above.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Degree title” means the designated subject area of the educational program that appears on the face of the document awarded to a student.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Diploma” means a recognized educational credential, other than a degree, awarded by an institution that signifies satisfactory completion of the requirements of a postsecondary educational program below the associate’s level. A diploma is also known as a certificate.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Director” means the Director of Consumer Affairs.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Distance education” means transmission of instruction to students at a location separate from the faculty.

history: (History: Amended by Stats. 2025, Ch. 592, Sec. 37. (SB 861) Effective January 1, 2026. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Document of record” means any document required to be maintained by this chapter.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Educational materials” means textbooks, supplies, implements, tools, machinery, computers, electronic devices, or other goods related to any education, training, or experience required for participation in an educational program.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Educational program” means a planned sequence composed of a set of related courses or modules, or a single course or module if not offered as a component of a set of related courses or modules, that provides education, training, skills, or experience, or a combination of these, except that “educational program” does not include a single course, workshop, seminar, continuing education course, or other instruction that consists of 32 hours of instruction or less that is not designed to lead to employment.

history: (History: Amended by Stats. 2021, Ch. 552, Sec. 2. (SB 802) Effective January 1, 2022. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Educational program approval” means authorization by the bureau, another government agency of this state, or a federal government agency, to provide educational programs, and is an element of an approval to operate.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Enrollment” means the execution of an enrollment agreement.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Enrollment agreement” means a written contract between a student and institution concerning an educational program.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Faculty” means the instructional staff of an institution, whether these persons are employees or independent contractors.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Graduate” means an individual who has been awarded a degree or diploma.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Institution” means any private postsecondary educational institution, including its branch campuses and satellite locations.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Institutional charges” means charges for an educational program paid directly to an institution.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Institution manager” means an individual who is a member of an institution’s management.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Instruction” means an institution’s specific, formal arrangements in which its faculty present a part of the curriculum.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “License and examination preparation” means instruction designed to assist students to prepare for an examination for licensure. “License and examination preparation” does not include an educational program designed to instruct students in the skills and knowledge necessary to satisfy the qualifications for licensure.

history: (History: Amended by Stats. 2014, Ch. 840, Sec. 8. (SB 1247) Effective January 1, 2015. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Licensure” includes any license, certificate, permit, or similar credential that a person must hold to lawfully engage in a profession, occupation, trade, or career field.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Main campus” means the institution’s sole or primary teaching location.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Noninstitutional charges” means charges for an educational program paid directly to an entity other than an institution that are specifically required for participation in an educational program.

history: (History: Amended by Stats. 2024, Ch. 497, Sec. 79. (SB 1526) Effective January 1, 2025. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Nonprofit corporation” means an institution to which contributions have been determined by the United States Internal Revenue Service to be tax-deductible pursuant to Section 501(c)(3) of Title 26 of the Internal Revenue Code, subject to the limitations described in Section 94874.1.

history: (History: Added by Stats. 2020, Ch. 153, Sec. 3. (AB 70) Effective January 1, 2021. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Out-of-state private postsecondary educational institution” means a private entity without a physical presence in this state that offers distance education to California students for an institutional charge, regardless of whether the institution has affiliated institutions or institutional locations in California.

history: (History: Added by Stats. 2016, Ch. 593, Sec. 4. (SB 1192) Effective January 1, 2017. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Owner” means an individual in the case of a sole proprietorship, partners in a partnership, members in a limited liability company, or shareholders in a corporation.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Ownership” means a legal or equitable interest in an institution, including ownership of assets or stock.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Parent company” means a partnership, limited liability company, or corporation that owns more than 50 percent of the stock or interest in an institution.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Period of attendance” means a semester, quarter, or trimester for educational programs measured in credit hours and the entire educational program if measured in clock hours.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Person” means a natural person or a business organization, irrespective of its form.

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Person in control” means a person who, by the authority or conduct of their position, directs the management of an institution.

history: (History: Amended by Stats. 2024, Ch. 497, Sec. 80. (SB 1526) Effective January 1, 2025. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Postsecondary education” means a formal institutional educational program whose instruction is designed primarily for students who have completed or terminated their secondary education or are beyond the compulsory age of secondary education, including programs whose purpose is academic, vocational, or continuing professional education.

history: (History: Amended by Stats. 2021, Ch. 552, Sec. 3. (SB 802) Effective January 1, 2022. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text: “Private postsecondary educational institution” means a private entity with a physical presence in this state that offers postsecondary education to the public for an institutional charge.

history: (History: Added by Stats. 2009, Ch. 310, Sec. 6. (AB 48) Effective January 1, 2010. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions


text:
“Public institution of higher education” means any of the following:

(a) An institution that meets the definition of subdivision (a) of Section 66010, including a district or campus of the California Community Colleges.

(b) An institution operated by the United States government, a state, as defined in Section 3306(j)(1) of Title 26 of the United States Code, a local government, as defined in Section 1393(a)(5) of Title 26 of the United States Code, or Indian tribal government, as defined in Section 7701(a)(40) of Title 26 of the United States Code.

(c) An institution that is an instrumentality of a state or local government if it meets all of the following:

(1) The institution’s employees are government employees.

(2) The institution’s liabilities are payable to the same degree as if they were liabilities of the state or local government, in the state or local government jurisdiction where the institution is formed.

(3) The institution is subject to the same financial oversight and open public records laws as the state or local government, in the state or local government jurisdiction where the institution is formed.

history: (History: Added by Stats. 2020, Ch. 153, Sec. 4. (AB 70) Effective January 1, 2021. Repealed as of January 1, 2027, pursuant to Section 94950.)

title: 3. POSTSECONDARY EDUCATION

article: 3. Definitions