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AB48' Summary by Victor Dence

California Private Postsecondary Education Act of 2009 (Author: Portantino)

Bill Locations:
- http://www.assembly.ca.gov/acs/acsframeset2text.htm

- http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0001-0050/ab_48_bill_20091011_chaptered.html

Purpose of Bill:

• Replaces Reform Act of 1989 which became inactive on 7/1/07 (BPPVE)

• Creates Bureau for Private Postsecondary Education (BPPE) within Department of Consumer Affairs(Valid from 1/1/10 until 1/1/16)

• Re-establish Student Tuition Recovery Fund

• Adopt minimum operating standards insuring:

a.) Content of each educational program can achieve its stated objective.

b.) Institutions maintain specific written standards for admission for each program.

c.) Facilities, instructional equipment and materials are sufficient to enable students to achieve the educational program's goals.

d.) Institutions maintain a withdrawal policy & provide refunds.

e.) Directors, administrators & faculty members are properly qualified.

f.) Institutions are financially sound & capable of fulfilling all commitments to students.

g.) Adequate records & standard transcripts are maintained and available to students.

h.) That upon satisfactory completion of an educational program, the institution gives students a document signifying the degree or diploma awarded.

Note: All previous claims and legal actions against a school is preserved by this Act

Note: New Bureau must create a website by June 30^th, 2010 explaining bureau transition plan and creating a directory of approved institutions including each schools catalog, student performance fact sheet, annual reports and disciplinary history.

Note: The Bureau will be conducting outreach programs to secondary school students as well as prospective and current private postsecondary students, to provide them with information on how to best select a private postsecondary institution, how to enter into enrollment agreements, how to make informed decisions in the private postsecondary education marketplace, and how to contact the bureau for assistance.

Note: The bureau shall perform announced and unannounced inspections of institutions at least every two years.

Note: The bureau can issue up to a $5000 penalty for failure to correct a noncompliance issue. Institutions have no more than 30 days to fix a notice of noncompliance.

Note: Accredited schools must comply with all apllicable requirements of the AB 48.

Note: Schools exempt from AB 48 are schools offering educational programs purposely for recreation, enjoyment, personal entertainment or pleasure or schools owned/operated by a bona fide trade association offering classes only for their members.

Note: In 2007, more than 400,000 Californians attended more than 1,500 private postsecondary schools in California

Institutional Approval:

A.) Institutions with valid approvals to operate on 6/30/07 shall have their approval extended three additional years beyond their approval expiration date.

B.) Pending Renewal applications

a.) pending applications submitted prior to Jan 1^st, 2006 granted approval until 2012

b.) pending applications submitted after Jan 1^st, 2006 granted approval until 2013

*Note: Students seeking to enroll in institutions with pending renewal applications shall be notified in writing by the institution, prior to executing an enrollment agreement, that, although the institution was approved to operate by the former Bureau for Private Postsecondary and Vocational Education, the institution's application for reapproval to operate has not been reviewed by the bureau.

C.) Institutions with Pending Initial Applications and Institutions who started operations after 7/1/07 may continue to operate butmust submit a new application within six months of a new application for approval to operate becoming available.

*Note: Students seeking to enroll in institutions never approved by the Bureau for Private Postsecondary and Vocational Education 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.

*Note: These schools shall not use the terms "approval," "approved," "approval to operate," or "approved to operate" without clearly stating that the institution's application for approval has not been reviewed by the bureau.

*Note: Schools that were not operating prior to 1/1/10 shall not start operations without an approval to operate from the BPPE.

Catalog Requirements:

• The name, address, telephone number, and, if applicable, Internet Web site address of the institution.

• A statement that “The institution is a private institution and that it is approved to operate by the bureau.”

• A statement that "Any questions a student may have regarding this catalog that have not been satisfactorily answered by the institution may be directed to the Bureau for Private Postsecondary Education at (address), Sacramento, CA (ZIP Code), (Internet Web site address), (telephone and fax numbers).”

• a statement that "A student or any member of the public may file a complaint about this institution with the Bureau for Private Postsecondary Education by calling (toll-free telephone number) or by completing a complaint form, which can be obtained on the bureau's Internet Web site (Internet Web site address)."

• The address or addresses where class sessions will be held.

• A description of the programs offered and a description of the instruction provided in each of the courses offered by the institution, the requirements for completion of each program, including required courses, any final tests or examinations, any required internships or externships, and the total number of credit hours, clock hours, or other increments required for completion.

• If applicable a list of the requirements for eligibility for licensure.

• Information regarding the faculty and their qualifications.

• A detailed description of institutional policies in the following areas:

(A) Admissions policies, including the institution's policies regarding the acceptance of credits earned at other institutions or through challenge examinations and achievement tests, admissions requirements for ability-to-benefit students, and a list describing any transfer or articulation agreements between the institution and any other college or university that provides for the transfer of credits earned in the program of instruction. If the institution has not entered into an articulation or transfer agreement with any other college or university, the institution shall disclose that fact.

(B) Cancellation, withdrawal, and refund policies, including an explanation that the student has the right to cancel the enrollment agreement and obtain a refund of charges paid through attendance at the first class session, or the seventh day after enrollment, whichever is later. The text shall also include a description of the procedures that a student is required to follow to cancel the enrollment agreement or withdraw from the institution and obtain a refund consistent with the requirements of Article 13 (commencing with Section 94919).

(C) Probation and dismissal policies.

(D) Attendance policies.

(E) Leave-of-absence policies.

(F) The schedule of total charges for a period of attendance and an estimated schedule of total charges for the entire educational program.

(G) A statement reporting whether the institution participates in federal and state financial aid programs, and if so, all consumer information that is required to be disclosed to the student pursuant to the applicable federal and state financial aid programs.

(H) A statement specifying that, if a student obtains a loan to pay for an educational program, the student will have the responsibility to repay the full amount of the loan plus interest, less the amount of any refund, and that, if the student has received federal student financial aid funds, the student is entitled to a refund of the moneys not paid from federal student financial aid program funds.

(I) A statement specifying whether the institution has a pending petition in bankruptcy, is operating as a debtor in possession, has filed a petition within the preceding five years, or has had a petition in bankruptcy filed against it within the preceding five years that resulted in reorganization under Chapter 11 of the United States Bankruptcy Code

(J) If the institution provides placement services, a description of the nature and extent of the placement services.

(K) A description of the student's rights and responsibilities with respect to the Student Tuition Recovery Fund. This statement shall specify that it is a state requirement that a student who pays his or her tuition is required to pay a state-imposed assessment for the Student Tuition Recovery Fund. This statement shall also describe the purpose and operation of the Student Tuition Recovery Fund and the requirements for filing a claim against the Student Tuition Recovery Fund.

(L) The following statement: "NOTICE CONCERNING TRANSFERABILITY OF CREDITS AND CREDENTIALS EARNED AT OUR INSTITUTION The transferability of credits you earn at (name of institution) is at the complete discretion of an institution to which you may seek to transfer. Acceptance of the (degree, diploma, or certificate) you earn in (name of educational program) is also at the complete discretion of the institution to which you may seek to transfer. If the (credits or degree, diploma, or certificate) that you earn at this institution are not accepted at the institution to which you seek to transfer, you may be required to repeat some or all of your coursework at that institution. For this reason you should make certain that your attendance at this institution will meet your educational goals. This may include contacting an institution to which you may seek to transfer after attending (name of institution) to determine if your (credits or degree, diploma or certificate) will transfer."

School Performance Fact Sheet: Shall include the following:

• The completion rate for each program

• The job placement rate for each program

• The license examination passage rates for the immediately preceding two years for programs leading to employment for which passage of a state licensing examination is required

• Salary and wage information, consisting of the total number of graduates employed in the field and the annual wages or salaries of those graduates stated in increments of five thousand dollars ($5,000).

• The information used to substantiate the rates calculated shall be documented and maintained by the institution for five years from the date of the publication of those rates. An institution may retain this information in an electronic format. An institution shall provide a list of employment positions used to determine the number of graduates employed in the field for purposes of calculating job placement rates pursuant to this article.

Enrollment Agreement shall include, at a minimum, all of the following:

(A) The name of the institution and the name of the educational program, including the total number of credit hours, clock hours, or other increment required to complete the educational program.

(B) A schedule of total charges, including a list of any charges that are nonrefundable and the student's obligations to the Student Tuition Recovery Fund, clearly identified as nonrefundable charges.

(C) In underlined capital letters on the same page of the enrollment agreement in which the student's signature is required, the total charges for the current period of attendance, the estimated total charges for the entire educational program, and the total charges the student is obligated to pay upon enrollment.

(D) A clear and conspicuous statement that the enrollment agreement is legally binding when signed by the student

and accepted by the institution.

(E) A Disclosure:

• With a clear and conspicuous caption, "STUDENT'S RIGHT TO CANCEL," under which it is explained that the student has the right to cancel the enrollment agreement and obtain a refund of charges paid through attendance at the first class session, or the seventh day after enrollment, whichever is later.

• The disclosure shall contain the institution's refund policy and a statement that, if the student has received federal student financial aid funds, the student is entitled to a refund of moneys not paid from federal student financial aid program funds.

• The text shall also include a description of the procedures that a student is required to follow to cancel the enrollment agreement or withdraw from the institution and obtain a refund.

(F) A statement specifying that, if the student obtains a loan to pay for an educational program, the student will have the responsibility to repay the full amount of the loan plus interest, less the amount of any refund.

(G) A statement specifying that, if the student is eligible for a loan guaranteed by the federal or state government and the student defaults on the loan, both of the following may occur:

• The federal or state government or a loan guarantee agency may take action against the student, including applying any income tax refund to which the person is entitled to reduce the balance owed on the loan.

• The student may not be eligible for any other federal student financial aid at another institution or other government assistance until the loan is repaid.

(H) The transferability disclosure that is required to be included in the school catalog

(I) The following statement: "Prior to signing this enrollment agreement, you must be given a catalog or brochure and a School Performance Fact Sheet, which you are encouraged to review prior to signing this agreement. These documents contain important policies and performance data for this institution. This institution is required to have you sign and date the information included in the School Performance Fact Sheet relating to completion rates, placement rates, license examination passage rates, and salaries or wages, prior to signing this agreement."

• Immediately following the statement required by paragraph: a line for the student to initial, including the following statement: "I certify that I have received the catalog, School Performance Fact Sheet, and information regarding completion rates, placement rates, license examination passage rates, and salary or wage information included in the School Performance Fact sheet, and have signed, initialed, and dated the information provided in the School Performance Fact Sheet."

(J) The following statements:

• "Any questions a student may have regarding this enrollment agreement that have not been satisfactorily answered by the institution may be directed to the Bureau for Private Postsecondary Education at (address), Sacramento, CA (ZIP Code), (Internet Web site address), (telephone and fax numbers)."

• "A student or any member of the public may file a complaint about this institution with the Bureau for Private Postsecondary Education by calling (toll-free telephone number) or by completing a complaint form, which can be obtained on the bureau's Internet Web site (Internet Web site address)."

(K) The following statement above the space for the student's signature: "I understand that this is a legally binding contract. My signature below certifies that I have read, understood, and agreed to my rights and responsibilities, and that the institution's cancellation and refund policies have been clearly explained to me."

Application Fees:

- Approval to Operate ($5,000)

- Approval to Operate a New Branch ($3,000)

- Approval to Operate, Accreditated School ($750)

- Renewal of Approval for Main Campus ($3,500)

- Renewal of Approval of Branch Campus ($3,000)

- Renewal of Approval for Accreditated School ($500)

- Substantive Change Non-Accreditated ($500)

- Substantive Change Accreditated ($250)

- Annual Fee (.0075 x annual revenue from California students, not to exceed $25,000)

- Annual Fee of $1000 for each Branch Campus

Note: The bureau can issue up to a $5000 penalty for failure to correct a noncompliance issue. Institutions have no more than 30 days to fix a notice of noncompliance.

Annual Report:

Annual Reports are due by July 1^st of each year and consist of the following information:

(1) The total number of students enrolled by level of degree or for a diploma.
(2) The number of degrees, by level, and diplomas awarded.
(3) The degree levels and diplomas offered.
(4) The school catalog
(5) The total charges for each educational program by period of attendance.
(6) A statement indicating whether the institution is, or is not, current in remitting Student Tuition Recovery Fund assessments.
(7) A statement indicating whether an accrediting agency has taken any final disciplinary action against the institution.
(8) Additional information deemed by the bureau to be reasonably required to ascertain compliance with this chapter.
(9) The Student Performance Fact Sheet

Additional AB 48 Notes:

*Substantive Change to School Note: The following are considered a substantive change to an approval to operate and requires bureau authorization: addition on new courses, change in ownership, change in control of school, change of location, name change, change in method of teaching delivery (homestudy, distance learning, in-school).

Record Keeping Note: An institution shall maintain records of the name, address, e-mail address, and telephone number of each student who is enrolled in an educational program in that institution and The degree or certificate granted and the date on which that degree or certificate was granted, The courses and units on which the certificate or degree was based and The grades earned by the student in each of those courses

Record Keeping Note: An institution shall maintain, for a period of not less than five years, at its principal place of business in this state, complete and accurate records of educational programs offered by the institution and the curriculum for each, The names and addresses of the members of the institution's faculty and records of the educational qualifications of each member of the faculty.

Recruiting Note: An institution's recruiters shall be employees. An institution shall issue identification to each recruiter identifying the recruiter and the institution. The recruiter shall have the issued identification with him or her while recruiting.

School Website Recruiting Note:

Schools may not require a prospective student to provide personal contact information in order to obtain, from the institution's Internet Web site, educational program information that is required to be contained in the school catalog or any information required pursuant to the consumer information requirements of Title IV of the federal Higher Education Act of 1965, and any amendments

Enrollment Process Note: Prospectivestudents must receive the institution's catalog and School Performance Fact Sheet prior to signing the enrollment agreement. A student shall receive a copy of the signed enrollment agreement, in writing or electronically, regardless of whether total charges are paid by the student.

Enrollment Process Note: "Ability-to-benefit student" means a student who does not have a certificate of graduation from a school providing secondary education, or a recognized equivalent of that certificate. Before an ability-to-benefit student may execute an enrollment agreement, the institution shall have the student take an independently administered examination from the list of examinations prescribed by the United States Department of Education . The student may not enroll unless the student achieves a score, as specified by the United States Department of Education, demonstrating that the student may benefit from the education and training being offered.

Enrollment Process Note: During the enrollment process if the institution discusses internships and student jobs, the institution shall disclose the number of requests for internship and student job placement assistance received by the institution during the immediately preceding calendar year and the number of actual placements during that year.

Enrollment Process Note: If the recruitment leading to enrollment was conducted in a language other than English, the enrollment agreement, disclosures, and statements shall be in that language. If English is not the student's primary language, and the student is unable to understand the terms and conditions of the enrollment agreement, the student shall have the right to obtain a clear explanation of the terms and conditions and all cancellation and refund policies in his or her primary language.

Licensing Disclosure Note: If the minimum course requirements of the institution exceed the minimum requirements for state licensure, the institution shall disclose this information, including a list of those courses that are not required for state licensure. The institution shall not execute an enrollment agreement with a student that is known to be ineligible for licensure, unless the student's stated objective is other than licensure.

Student Payment Note: For programs four months or longer, an institution shall not require more than one term or four months of advance payment of tuition at a time. When 50 percent of the program has been offered, the institution may require full payment. This section shall not apply to any funds received by an institution through federal and state student financial aid grant and loan programs, or through any other federal or state programs. At the student's option, an institution may accept payment in full for tuition and fees, including any funds received through institutional loans, after the student has been accepted and enrolled and the date of the first class session is disclosed on the enrollment agreement

*Job Assistance Note: Institutions may not Promise or guarantee employment, or otherwise overstate the availability of jobs upon graduation.

Class Changes Note: An institution shall not merge classes unless all of the students have received the same amount of instruction or are students who are enrolled in different educational programs in the same class if that class is part of each of the educational programs and the placement in a merged class will not impair the students' learning of the subject matter of the class.

Class Changes Note: An institution shall not change the day or time during the period of attendance in which any class is offered to a day when the student is not scheduled to attend the institution or to a time that is outside of the range of time that the student is scheduled to attend the institution on the day for which the change is proposed unless at least 90 percent of the students who are enrolled consent to the change and the institution offers full refunds to the students who do not consent to the change.

Class Changes Note: An institution cannot change a students enrolled course from on-site to distance learning or homestudy.

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