Private Postsecondary & Vocational Education Information

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Interim Provisions Regarding Private Postsecondary Education

Effective January 1, 2008

Provisions from AB 1525 (Cook, Chapter 67, Statutes of 2007), as amended by SB 45 (Perata, Chapter 635, Statutes of 2007):

  1. Section 1. (a) It is the intent of the Legislature to provide, through the enactment of subdivision (b), for the protection of the interests of students and institutions having any matter pending before the Bureau for Private Postsecondary and Vocational Education as of June 30, 2007. The Legislature further encourages the Department of Consumer Affairs to provide information to students and institutions during this time period to ensure their understanding of their rights and responsibilities, and that student complaints received during this time period continue to be duly recorded and, to the extent practicable, investigated, so that no Californian is harmed by the delay in the provision of full services.
  2. (b) Notwithstanding any other provision of law:
  3. (1) Each matter pending before the Bureau for Private Postsecondary and Vocational Education as of the close of business on June 30, 2007, shall be deemed to remain pending before the bureau or a successor agency as of July 1, 2008, irrespective of any applicable deadlines. With respect to any deadline applicable to a pending matter, no time shall be deemed to have elapsed between July 1, 2007, and July 1, 2008, inclusive.
  4. (A) For the purposes of this paragraph, "matter" includes, but is not necessarily limited to, an appeal, a complaint, an evaluation, a hearing, or an investigation.
  5. (B) For the purposes of this paragraph, "matter" does not include a Student Tuition Recovery Fund Claim. Nothing in this paragraph shall be construed to prevent the payment of existing Student Tuition Recovery Fund claims that have been filed with the Bureau for Private Postsecondary and Vocational Education as of June 30, 2007.
  6. (2) Any institution, program, or course of study that is approved by the bureau or authorized pursuant to former Section 94905 of the Education Code, as it read on June 30, 2007, as of the close of business on June 30, 2007, shall be deemed to be approved as of July 1, 2008, irrespective of any applicable conditions, deadlines, or additional requirements. With respect to any deadline applicable to the approval, renewal of approval, or conditional approval of an institution, program, or course of study, no time shall be deemed to have elapsed between July 1, 2007, and July 1, 2008, inclusive.
  7. (3) From July 1, 2007, to July 1, 2008, inclusive, the Director of Consumer Affairs may enter into voluntary agreements with institutions that state that the institutions agree to comply with state statutes, rules, and regulations pertaining to private postsecondary institutions or pertaining to non-WASC regionally accredited institutions as defined in former Section 94740.5 of the Education Code, as it read on June 30, 2007, for the purpose of ensuring continued student protection after 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, became inoperative.
  8. (4) From July 1, 2007, to July 1, 2008, inclusive, the Director of Consumer Affairs shall administer the Student Tuition Recovery Fund.

  1. Sec. 2. (a) The Private Postsecondary and Vocational Education Administration Fund is continued in existence under the administration of the Department of Consumer Affairs.
  2. (b) (1) The Student Tuition Recovery Fund is continued in existence under the administration of the Department of Consumer Affairs. The fund shall consist of only one educational institution account for payment of approved claims.
  3. (2) The moneys in the Student Tuition Recovery Fund are continuously appropriated, without regard to fiscal years, to the Director of Consumer Affairs for the purpose of paying claims that were filed with the former Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, under the provisions of 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. A claim that has been filed with the Bureau for Private Postsecondary and Vocational Education prior to July 1, 2007, but not paid by the Director of Consumer Affairs between July 1, 2007, and July 1, 2008, inclusive, shall be deemed pending before a successor agency on July 1, 2008.
  4. (3) From July 1, 2007, to July 1, 2008, inclusive, an institution is not liable for payments to the Student Tuition Recovery Fund. During that period, an institution shall not collect money from its students for purposes of making payments to that fund. If any collections are made for an academic term falling within that period, the institution making the collection shall refund those moneys to the student from whom they were collected. Any funds collected by an institution from its students for the purposes of making payments to the Student Tuition Recovery Fund on or before June 30, 2007, and still in the possession of the institution as of July 1, 2007, shall be remitted by the institution to the Director of Consumer Affairs.
  5. (4) It is the intent of the Legislature that, to the extent possible, the Department of Consumer Affairs shall pay claims found to be owed and payable by the Bureau for Private Postsecondary and Vocational Education to students from the Student Tuition Recovery Fund between June 30, 2007, and July 1, 2008, inclusive.

  1. Sec. 3. (a) Any institution that is approved by an accrediting agency recognized by the United States Department of Education, that has entered into a voluntary agreement under paragraph (3) of subdivision (b) of Section 1 of Chapter 67 of the Statutes of 2007, is authorized to add or modify a degree, diploma, certificate, add or change a location, change or modify the institution's name, or undergo a change of ownership or control from July 1, 2007, to July 1, 2008, inclusive, and, thereafter, upon the filing of notice to the Department of Consumer Affairs accompanied by documentation of the approval of that action by that institution's accrediting agency, if that approval is required by the institution's accrediting agency.
  2. (b) From close of business on June 30, 2007, until close of business on July 1, 2008, inclusive, wherever in law there is a reference to an institution "approved by the Bureau for Private Postsecondary and Vocational Education," this shall mean any school that has entered into, and is complying with, a voluntary agreement under paragraph (3) of subdivision (b) of Section 1 of Chapter 67 of the Statutes of 2007.
  3. (c) Until July 1, 2008, the Board of Barbering and Cosmetology may approve a school that has not been licensed by the Bureau for Private Postsecondary and Vocational Education pursuant to subdivision (a) of Section 7362 of the Business and Professions Code, if the school does all of the following:
  4. (1) Commences operations between July 1, 2007, and December 31, 2008.
  5. (2) Enters into a voluntary agreement with the Director of Consumer Affairs under paragraph (3) of subdivision (b) of Section 1 of Chapter 67 of the Statutes of 2007.
  6. (3) Provides a course of instruction approved by the board.
  7. (4) Complies with all laws, rules, and regulations applicable to schools approved by the board.
  8. (5) Obtains a license or approval from the bureau or its successor agency no later than six months after the bureau is reauthorized.

  1. SEC. 4. (a) For purposes of this act, "Reform Act" means the Private Postsecondary and Vocational Education Reform Act of 1989 (Chapter 7 (commencing with Section 94700) of Part 59 of Division 10 of Title 3 of the Education Code), as it exists on June 30, 2007.
  2. (b) (1) Notwithstanding any other provision of law, the rights and obligations established by the Reform Act on or before June 30, 2007, shall be determined by the law in effect on or before June 30, 2007, and any claim or cause of action in any manner based on the Reform Act that arose 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 Reform Act on or before June 30, 2007, may be ordered or maintained thereafter.
  3. (2) The rights, obligations, claims, causes of action, and remedies described in paragraph (1) shall remain subject to the provisions of the Reform Act in effect on or before June 30, 2007, notwithstanding the inoperative status or repeal of the Reform Act on or after July 1, 2007.

  1. SEC. 5. (a) Wherever in this act there is a provision related to a voluntary agreement, that provision shall be applicable only if the Department of Consumer Affairs has proposed and tendered that voluntary agreement as permitted by this act, and the institution has submitted to the Department of Consumer Affairs an executed voluntary agreement within 15 days of receipt.
  2. (b) No more than 60 days after the operative date of that the act that adds this section becomes operative, an institution shall disclose to all of its current and prospective students whether it has agreed to, or has declined to enter into, a voluntary agreement with the Director of Consumer Affairs pursuant to paragraph (3) of subdivision (b) of Section 1 of this act.

  1. SEC. 6. It is the intent of the Legislature that the Department of Consumer Affairs shall continue to provide all applicable rights and protections of civil service to its employees, including, but not necessarily limited to, employees of the Bureau for Private Postsecondary and Vocational Education.

  1. SEC. 7. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

  1. SEC. 8. This act, including, but not necessarily limited to, its provisions relating to voluntary agreements, shall apply retroactively to July 1, 2007.

  1. Sec. 9. Private postsecondary educational institutions that have a valid approval to operate, including, but not necessarily limited to, a license to operate, and instructors holding a valid certificate of authorization for service, from the Bureau for Private Postsecondary and Vocational Education as of June 30, 2007, shall retain those approvals, licenses, or certificates of authorization for purposes of interpreting other provisions of applicable law that refer or relate to the issuance of a license or registration and meeting qualifications for licensing examinations. Those approvals shall be effective through January 1, 2009, unless a later enacted statute modifies, extends, or deletes that date.

  1. Sec. 10. Sections 1 to 8, inclusive, of Chapter 67 of the Statutes of 2007 shall be repealed on July 1, 2008, unless a later enacted statute, that is enacted before July 1, 2008, deletes or extends that date.

  1. SEC. 11. 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:
  2. In order to provide for the protection of the interests of students and institutions having matters pending before the Bureau for Private Postsecondary and Vocational Education as of June 30, 2007, and for students, institutions, and law enforcement agencies having any claim or cause of action in any manner based on the Reform Act and that arose on or before June 30, 2007, it is necessary that this act take effect immediately.

Provisions from SB 45 (Perata, Chapter 635, Statutes of 2007):

  1. SEC. 6. (a) (1) The Bureau for Private Postsecondary Education is hereby established in the Department of Consumer Affairs.
  2. (2) The bureau shall not commence operations unless and until a statute is enacted that creates a new California Private Postsecondary Education Act that provides functions and responsibilities of the bureau. The bureau shall have the following general duties and responsibilities, including, but not necessarily limited to, all of the following:
  3. (A) Review and approval of private postsecondary and vocational educational institutions.
  4. (B) Review and investigation of student complaints.
  5. (C) Administration of the Student Tuition Recovery Fund.
  6. (D) Outreach to students.
  7. (E) The collection and dissemination of appropriate information regarding regulations required by any subsequent legislation.
  8. (F) Establishing a reasonable fee structure that will fund its operations.
  9. (G) The collection of fees relating to, and general responsibility for, the oversight of private postsecondary and vocational educational institutions in the State of California.
  10. (3) The bureau shall succeed to any and all rights and claims of the former Bureau for Private Postsecondary and Vocational Education that may have been asserted in any judicial or administrative action pending on July 1, 2007, and shall take any action reasonably necessary to assert and realize those rights and claims in its own name.
  11. (b) 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 in the performance of the duties, powers, purposes, responsibilities, and jurisdictions that are vested in the bureau.
  12. (c) The bureau has the responsibility for approving and regulating private postsecondary educational institutions. The bureau shall have, as its objective, the development of a strong, vigorous, and widely respected sector of private postsecondary and vocational education.
  13. (d) Protection of the public shall be the highest priority for the Bureau for Private Postsecondary and Vocational Education in exercising its approval, regulatory, and disciplinary functions. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount.
  14. (e) The Director of Consumer Affairs may assign and delegate his or her duties under Chapter 67 of the Statutes of 2007, as it is amended by this act, and under Section 6 of this act, to a bureau chief, subject to the other provisions of this section.
  15. (f) The bureau chief may redelegate any of his or her powers under this section to a designee. The bureau chief shall be appointed by the Governor and confirmed by vote of a majority of the membership of the Senate, and is exempt from the State Civil Service Act (Part 2 (commencing with Section 18500) of Division 5 of Title 2 of the Government Code).
  16. (g) The director, in accordance with the State Civil Service Act, may appoint and fix the compensation of clerical, inspection, investigation, evaluation, and auditing personnel of the bureau, as may be necessary to carry out this section.