Bill Text: CA SB619 | 2011-2012 | Regular Session | Chaptered
Bill Title: California Private Postsecondary Education Act of 2009:
Spectrum: Bipartisan Bill
Status: (Passed) 2011-09-21 - Chaptered by Secretary of State. Chapter 309, Statutes of 2011. [SB619 Detail]
Download: California-2011-SB619-Chaptered.html
BILL NUMBER: SB 619 CHAPTERED
BILL TEXT
CHAPTER 309
FILED WITH SECRETARY OF STATE SEPTEMBER 21, 2011
APPROVED BY GOVERNOR SEPTEMBER 20, 2011
PASSED THE SENATE AUGUST 30, 2011
PASSED THE ASSEMBLY AUGUST 25, 2011
AMENDED IN ASSEMBLY JULY 7, 2011
AMENDED IN ASSEMBLY JUNE 22, 2011
AMENDED IN SENATE APRIL 13, 2011
INTRODUCED BY Senator Fuller
(Coauthor: Assembly Member Portantino)
FEBRUARY 18, 2011
An act to amend Section 94874 of, and to repeal Section 94874.3
of, the Education Code, relating to private postsecondary education,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 619, Fuller. California Private Postsecondary Education Act of
2009: exemptions.
Existing law, the California Private Postsecondary Education Act
of 2009, provides, among other things, for student protections and
regulatory oversight of private postsecondary schools in the state.
The act is enforced by the Bureau for Private Postsecondary Education
within the Department of Consumer Affairs. The act exempts specified
institutions from its provisions.
This bill would exempt from the act flight instruction providers
or programs that provide flight instruction pursuant to Federal
Aviation Administration regulations and meet specified criteria.
The act prohibits the bureau, for the period of July 1, 2010, to
July 1, 2011, inclusive, from enforcing the act against institutions
engaged in flight instruction and aircraft maintenance education, as
specified, if those institutions notify the bureau that they are in
operation during that time period.
This bill would repeal that provision.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 94874 of the Education Code is amended to read:
94874. The following are exempt from this chapter:
(a) An institution that offers solely avocational or recreational
educational programs.
(b) An institution offering educational programs sponsored by a
bona fide trade, business, professional, or fraternal organization,
solely for that organization's membership.
(c) A postsecondary educational institution established, operated,
and governed by the federal government or by this state or its
political subdivisions.
(d) An institution offering either of the following:
(1) Test preparation for examinations required for admission to a
postsecondary educational institution.
(2) Continuing education or license examination preparation, if
the institution or the program is approved, certified, or sponsored
by any of the following:
(A) A government agency, other than the bureau, that licenses
persons in a particular profession, occupation, trade, or career
field.
(B) A state-recognized professional licensing body, such as the
State Bar of California, that licenses persons in a particular
profession, occupation, trade, or career field.
(C) A bona fide trade, business, or professional organization.
(e) (1) An institution owned, controlled, and operated and
maintained by a religious organization lawfully operating as a
nonprofit religious corporation pursuant to Part 4 (commencing with
Section 9110) of Division 2 of Title 1 of the Corporations Code, that
meets all of the following requirements:
(A) The instruction is limited to the principles of that religious
organization, or to courses offered pursuant to Section 2789 of
Business and Professions Code.
(B) The diploma or degree is limited to evidence of completion of
that education.
(2) An institution operating under this subdivision shall offer
degrees and diplomas only in the beliefs and practices of the church,
religious denomination, or religious organization.
(3) An institution operating under this subdivision shall not
award degrees in any area of physical science.
(4) Any degree or diploma granted under this subdivision shall
contain on its face, in the written description of the title of the
degree being conferred, a reference to the theological or religious
aspect of the degree's subject area.
(5) A degree awarded under this subdivision shall reflect the
nature of the degree title, such as "associate of religious studies,"
"bachelor of religious studies," "master of divinity," or "doctor of
divinity."
(f) An 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 cost threshold based upon the California
Consumer Price Index and post notification of the adjusted cost
threshold on its Internet Web site, as the bureau determines, through
the promulgation of regulations, that the adjustment is consistent
with the intent of this chapter.
(g) A law school that is accredited by the Council of the Section
of Legal Education and Admissions to the Bar of the American Bar
Association or a law school or law study program that is subject to
the approval, regulation, and oversight of the Committee of Bar
Examiners, pursuant to Sections 6046.7 and 6060.7 of the Business and
Professions Code.
(h) A nonprofit public benefit corporation that satisfies all of
the following criteria:
(1) Is qualified under Section 501(c)(3) of the United States
Internal Revenue Code.
(2) Is organized specifically to provide workforce development or
rehabilitation services.
(3) Is accredited by an accrediting organization for workforce
development or rehabilitation services recognized by the Department
of Rehabilitation.
(i) An institution that is accredited by the Accrediting
Commission for Senior Colleges and Universities, Western Association
of Schools and Colleges, or the Accrediting Commission for Community
and Junior Colleges, Western Association of Schools and Colleges.
(j) An institution that satisfies all of the following criteria:
(1) The institution has been accredited, for at least 10 years, by
an accrediting agency that is recognized by the United States
Department of Education.
(2) The institution has operated continuously in this state for at
least 25 years.
(3) During its existence, the institution has not filed for
bankruptcy protection pursuant to Title 11 of the United States Code.
(4) The institution's cohort default rate on guaranteed student
loans does not exceed 10 percent for the most recent three years, as
published by the United States Department of Education.
(5) The institution maintains a composite score of 1.5 or greater
on its equity, primary reserve, and net income ratios, as provided
under Section 668.172 of Title 34 of the Code of Federal Regulations.
(6) The institution provides a pro rata refund of unearned
institutional charges to students who complete 75 percent or less of
the period of attendance.
(7) The institution provides to all students the right to cancel
the enrollment agreement and obtain a refund of charges paid through
attendance at the second class session, or the 14th day after
enrollment, whichever is later.
(8) The institution submits to the bureau copies of its most
recent IRS Form 990, the institution's Integrated Postsecondary
Education Data System Report of the United States Department of
Education, and its accumulated default rate.
(9) The institution is incorporated and lawfully operates as a
nonprofit public benefit corporation pursuant to Part 2 (commencing
with Section 5110) of Division 2 of Title 1 of the Corporations Code
and is not managed or administered by an entity for profit.
(k) Flight instruction providers or programs that provide flight
instruction pursuant to Federal Aviation Administration regulations
and meet both of the following criteria:
(1) The flight instruction provider or program does not require
students to enter into written or oral contracts of indebtedness.
(2) The flight instruction provider or program does not require
prepayment of instruction-related costs in excess of two thousand
five hundred dollars ($2,500).
SEC. 2. Section 94874.3 of the Education Code is repealed.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to establish an exemption from the California Private
Postsecondary Education Act of 2009 for flight instruction providers
and programs that provide flight instruction pursuant to Federal
Aviation Administration regulations, soon after a similar exemption
expired on July 1, 2011, it is necessary that this act take effect
immediately.
