AB 573, as amended, Medina. Higher education: campus closures: Corinthian Colleges.
(1) Existing law establishes the California Community Colleges under the administration of the Board of Governors of the California Community Colleges, and establishes community college districts throughout the state that operate community colleges and provide instruction to students. Existing law requires community college districts to charge each student a fee of $46 per unit per semester. Existing law requires the waiver of this fee for students meeting prescribed requirements.
This bill would authorize the board of governors to waive the fee for students who were enrolled in a private postsecondary educational institution that provided educational services in California or online educational services to California students at the time the institution closed or otherwise ceased to operate an academic program in which they were enrolled, and for students who withdrew from the institution within 120 days, or any greater period determined by the bureau, of the closure or cessation.
(2) The California Private Postsecondary Education Act of 2009, provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. The act requires an institution subject to its provisions to follow certain requirements prior to closing.
This bill would require the bureau to establish a task force to respond to the closure of an institution that does not comply with these requirements prior to closing. The bill would require the task force to assist the students who were enrolled at, or in an online program offered by, the institution in, among other things, obtaining refunds, loan discharges, and tuition recovery.
The act also establishes the Student Tuition Recovery Fund and requires the bureau to adopt regulations governing the administration and maintenance of the fund, including requirements relating to assessments on students and student claims against the fund, and establishes that the moneys in this fund are continuously appropriated to the bureau for specified purposes. The act caps the amount that may be in the fund at any time at $25,000,000.
This bill would deem a student who was enrolled at a California campus of a Corinthian Colleges, Inc. institution, or a California student who was enrolled in an online program offered by an out-of-state campus of a Corinthian Colleges, Inc., institution, to be eligible for recovery from the fund under specified circumstances. The bill would raise the cap for the fund to $50,000,000.
(3) The Cal Grant Program prohibits an applicant from receiving Cal Grant awards totaling in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, except as provided.
This bill would exempt from this limitation on Cal Grant awards a student who was enrolled at a California campus of a Corinthian Colleges, Inc. institution, and who was unable to complete an educational program offered by the campus due to its closure.
begin deletemajority end delete.
Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
It is the intent of the Legislature that the
2California Community Colleges shall utilize available resources
3to provide matriculation services, including, but not limited to,
4assessments, counseling, and academic planning to a student who,
5as of April 26, 2015, was enrolled at a California campus of a
6Corinthian Colleges, Inc. institution, including Heald College, or
7was a California student enrolled in one or more online programs
8offered by an out-of-state campus of a Corinthian Colleges, Inc.
It is the intent of the Legislature that unencumbered
11funds awarded to the state from a lawsuit involving Corinthian
12Colleges, Inc. and its affiliate institutions, including Heald College,
13shall be used to fund this act.
Section 69433.5 of the Education Code is amended to
(a) Only a resident of California, as determined by
17the commission pursuant to Part 41 (commencing with Section
1868000), is eligible for an initial Cal Grant award. The recipient
19shall remain eligible for award renewal only if he or she is a
20California resident, in attendance, and making satisfactory
21academic progress at a qualifying institution, as determined by the
23(b) A part-time student shall not be discriminated against in the
24selection of Cal Grant Program award recipients, and an award to
25a part-time student shall be approximately proportional to the time
26the student spends in the instructional program, as determined by
27the commission. A first-time Cal Grant Program award recipient
28who is a part-time student shall be eligible for a full-time renewal
29award if he or she becomes a full-time student.
30(c) Cal Grant Program awards shall be awarded without regard
31to race, religion, creed, sex, sexual orientation, gender identity,
32gender expression, or age.
33(d) An applicant shall not receive more than one type of Cal
34Grant Program award concurrently. An applicant shall not:
P4 1(1) Receive one or a combination of Cal Grant Program awards
2in excess of the amount equivalent to the award level for a total
3of four years of full-time attendance in an undergraduate program,
4except as provided in Sections 69433.6 and 69433.61.
5(2) Have obtained a baccalaureate degree before receiving a
6Cal Grant Program award.
7(e) A Cal Grant Program award, except as provided in Section
869440, may only be used for educational expenses of a program
9of study leading directly to an undergraduate degree or certificate,
10or for expenses of undergraduate coursework in a program of study
11leading directly to a first professional degree, but for which no
12baccalaureate degree is awarded.
13(f) The commission shall, for students who accelerate college
14attendance, increase the amount of award proportional to the period
15of additional attendance resulting from attendance in classes that
16fulfill requirements or electives for graduation during summer
17terms, sessions, or quarters. In the aggregate, the total amount a
18student may receive in a four-year period may not be increased as
19a result of accelerating his or her progress to a degree by attending
20summer terms, sessions, or quarters.
21(g) The commission shall notify Cal Grant award recipients of
22the availability of funding for the summer term, session, or quarter
23through prominent notice in financial aid award letters, materials,
24guides, electronic information, and other means that may include,
25but not necessarily be limited to, surveys, newspaper articles, or
26attachments to communications from the commission and any
27other published documents.
28(h) The commission may require, by the adoption of rules and
29regulations, the production of reports, accounting, documents, or
30other necessary statements from the award recipient and the college
31or university of attendance pertaining to the use or application of
33(i) A Cal Grant Program award may be utilized only at a
35(j) A recipient who initially qualified for both a Cal Grant A
36award and a Cal Grant B award, and received a Cal Grant B award,
37may be awarded a renewal Cal Grant A award if that recipient
38subsequently became ineligible for a renewal Cal Grant B award
39and meets the applicable Cal Grant A financial need and income
40and asset criteria.
Section 69433.61 is added to the Education Code, to
A student who was enrolled at a California campus
4of a Corinthian Colleges, Inc. institution, including Heald College,
5and was unable to complete an educational program offered by
6the campus due to the campus’s closure on April 27, 2015, shall
7be exempt from the limitation on Cal Grant Program awards in
8paragraph (1) of subdivision (d) of Section 69433.5.
Section 76300 of the Education Code is amended to
(a) The governing board of each community college
12district shall charge each student a fee pursuant to this section.
13(b) (1) The fee prescribed by this section shall be forty-six
14dollars ($46) per unit per semester, effective with the summer term
15of the 2012 calendar year.
16(2) The board of governors shall proportionately adjust the
17amount of the fee for term lengths based upon a quarter system,
18and also shall proportionately adjust the amount of the fee for
19summer sessions, intersessions, and other short-term courses. In
20making these adjustments, the board of governors may round the
21per unit fee and the per term or per session fee to the nearest dollar.
22(c) For the purposes of computing apportionments to community
23college districts pursuant to Section 84750.5, the board of
24governors shall subtract, from the total revenue owed to each
25district, 98 percent of the revenues received by districts from
26charging a fee pursuant to this section.
27(d) The board of governors shall reduce apportionments by up
28to 10 percent to any district that does not collect the fees prescribed
29by this section.
30(e) The fee requirement does not apply to any of the following:
31(1) Students enrolled in the noncredit courses designated by
33(2) California State University or University of California
34students enrolled in remedial classes provided by a community
35 college district on a campus of the University of California or a
36campus of the California State University, for whom the district
37claims an attendance apportionment pursuant to an agreement
38between the district and the California State University or the
39University of California.
P6 1(3) Students enrolled in credit contract education courses
2pursuant to Section 78021, if the entire cost of the course, including
3administrative costs, is paid by the public or private agency,
4corporation, or association with which the district is contracting
5and if these students are not included in the calculation of the
6full-time equivalent students (FTES) of that district.
7(f) The governing board of a community college district may
8exempt special part-time students admitted pursuant to Section
976001 from the fee requirement.
10(g) (1) The fee requirements of this section shall be waived for
11any student who meets all of the following requirements:
12(A) Meets minimum academic and progress standards adopted
13by the board of governors, which fulfill the requirements outlined
14in this paragraph and paragraphs (2) to (5), inclusive. Any
15minimum academic and progress standards adopted pursuant to
16this section shall be uniform across all community college districts
17and campuses. These standards shall not include a maximum unit
18cap, and community college districts and colleges shall not impose
19requirements for fee waiver eligibility other than the minimum
20academic and progress standards adopted by the board of governors
21and the requirements of subparagraph (B).
22(B) Meets at least one of the following criteria:
23(i) At the time of enrollment, is a recipient of benefits under the
24Temporary Assistance for Needy Families program, the
25Supplemental Security Income/State Supplementary Payment
26Program, or a general assistance program.
27(ii) Demonstrates eligibility according to income standards
28established by regulations of the board of governors.
29(iii) Demonstrates financial need in accordance with the
30methodology set forth in federal law or regulation for determining
31the expected family contribution of students seeking financial aid.
32(iv) Was enrolled
in a private postsecondary educational
33institution that provided educational services in California, or
34online educational services to a California student, at the time the
35institution closed or otherwise ceased to operate an academic
36program in which the student was enrolled.
37(v) Withdrew from a private postsecondary educational
38institution that provided educational services in California, or
39online educational services to a California student, that closed or
40otherwise ceased to operate an academic program in which the
P7 1student was enrolled, within 120 days of the closure or cessation,
2or any greater period determined by the bureau pursuant to Section
4(2) (A) The board of governors, in consultation with students,
5faculty, and other key stakeholders, shall consider all of the
6following in the development and adoption of minimum academic
7and progress standards pursuant to subparagraph (A) of paragraph
9(i) Minimum uniform academic and progress standards that do
10not unfairly disadvantage financially needy students in pursuing
12(ii) Criteria for reviewing extenuating circumstances and
13granting appeals that, at a minimum, take into account and do not
14penalize a student for circumstances outside his or her control,
15such as reductions in student support services or changes to the
16economic situation of the student.
17(iii) A process for reestablishing fee waiver eligibility that
18provides a student with a reasonable opportunity to continue or
19resume his or her enrollment at a community college.
20(B) To ensure that students are not unfairly impacted by the
21requirements of subparagraph (A) of paragraph (1), the board of
22governors shall establish a reasonable implementation period that
23commences no sooner than one year from adoption of the minimum
24academic and progress standards, or any subsequent changes to
25these standards, pursuant to subparagraph (A) of paragraph (1)
26and that is phased in to provide students adequate notification of
27this requirement and information about available support resources.
28(3) It is the intent of the Legislature that minimum academic
29and progress standards adopted pursuant to subparagraph (A) of
30paragraph (1) be implemented only as campuses develop and
31implement the student support services and interventions necessary
32to ensure no disproportionate impact to students based on ethnicity,
33gender, disability, or socioeconomic status. The board of governors
34shall consider the ability of community college districts to meet
35the requirements of this paragraph before adopting minimum
36academic and progress standards, or any subsequent changes to
37these standards, pursuant to subparagraph (A) of paragraph (1).
38(4) It is the intent of the Legislature to ensure that a student shall
39not lose fee waiver eligibility without a community college campus
40first demonstrating a reasonable effort to provide a student with
P8 1adequate notification and assistance in maintaining his or her fee
2waiver eligibility. The board of governors shall adopt regulations
3to implement this paragraph that ensure all of the following:
4(A) Students are provided information about the available
5student support services to assist them in maintaining fee waiver
7(B) Community college district policies and course catalogs
8reflect the minimum academic and progress standards adopted
9pursuant to subparagraph (A) of paragraph (1) and that appropriate
10notice is provided to students before the policies are put into effect.
11(C) A student does not lose fee waiver eligibility unless he or
12she has not met minimum academic and progress standards adopted
13pursuant to subparagraph (A) of paragraph (1) for a period of no
14less than two consecutive academic terms.
15(5) The board of governors shall provide notification of a
16proposed action to adopt regulations pursuant to this subdivision
17to the appropriate policy and fiscal committees of the Legislature
18in accordance with the requirements of paragraph (1) of subdivision
19(a) of Section 70901.5. This notification shall include, but not be
20limited to, all of the following:
21(A) The proposed minimum academic and progress standards
22and information detailing how the requirements of paragraphs (1)
23to (4), inclusive, have been or will be satisfied.
24(B) How many students may lose fee waiver eligibility by
25ethnicity, gender, disability, and, to the extent relevant data is
26available, by socioeconomic status.
27(C) The criteria for reviewing extenuating circumstances,
28granting appeals, and reestablishing fee waiver eligibility pursuant
29to paragraph (2).
30(h) The fee requirements of this section shall be waived for any
31student who, at the time of enrollment, is a dependent or surviving
32spouse who has not remarried, of any member of the California
33National Guard who, in the line of duty and while in the active
34service of the state, was killed, died of a disability resulting from
35an event that occurred while in the active service of the state, or
36is permanently disabled as a result of an event that occurred while
37in the active service of the state. “Active service of the state,” for
38the purposes of this subdivision, refers to a member of the
39California National Guard activated pursuant to Section 146 of
40the Military and Veterans Code.
P9 1(i) The fee requirements of this section shall be waived for any
2student who is the surviving spouse or the child, natural or adopted,
3of a deceased person who met all of the requirements of Section
5(j) The fee requirements of this section shall be waived for any
6student in an undergraduate program, including a student who has
7previously graduated from another undergraduate or graduate
8program, who is the dependent of any individual killed in the
9September 11, 2001, terrorist attacks on the World Trade Center
10and the Pentagon or the crash of United Airlines Flight 93 in
11southwestern Pennsylvania, if that dependent meets the financial
12need requirements set forth in Section 69432.7 for the Cal Grant
13A Program and either of the following applies:
14(1) The dependent was a resident of California on September
16(2) The individual killed in the attacks was a resident of
17California on September 11, 2001.
18(k) A determination of whether a person is a resident of
19California on September 11, 2001, for purposes of subdivision (j)
20shall be based on the criteria set forth in Chapter 1 (commencing
21with Section 68000) of Part 41 of Division 5 for determining
22nonresident and resident tuition.
23(l) (1) “Dependent,” for purposes of subdivision (j), is a person
24who, because of his or her relationship to an individual killed as
25a result of injuries sustained during the terrorist attacks of
26September 11, 2001, qualifies for compensation under the federal
27September 11th Victim Compensation Fund of 2001 (Title IV
28(commencing with Section 401) of Public Law 107-42).
29(2) A dependent who is the surviving spouse of an individual
30killed in the terrorist attacks of September 11, 2001, is entitled to
31the waivers provided in this section until January 1, 2013.
32(3) A dependent who is the surviving child, natural or adopted,
33of an individual killed in the terrorist attacks of September 11,
342001, is entitled to the waivers under subdivision (j) until that
35person attains 30 years of age.
36(4) A dependent of an individual killed in the terrorist attacks
37of September 11, 2001, who is determined to be eligible by the
38California Victim Compensation and Government Claims Board,
39is also entitled to the waivers provided in this section until January
P10 1(m) (1) It is the intent of the Legislature that sufficient funds
2be provided to support the provision of a fee waiver for every
3student who demonstrates eligibility pursuant to subdivisions (g)
4to (j), inclusive.
5(2) From funds provided in the annual Budget Act, the board
6of governors shall allocate to community college districts, pursuant
7to this subdivision, an amount equal to 2 percent of the fees waived
8pursuant to subdivisions (g) to (j), inclusive. From funds provided
9in the annual Budget Act, the board of governors shall allocate to
10community college districts, pursuant to this subdivision, an
11amount equal to ninety-one cents ($0.91) per credit unit waived
12pursuant to subdivisions (g) to (j), inclusive. It is the intent of the
13Legislature that funds provided pursuant to this subdivision be
14used to support the determination of financial need and delivery
15 of student financial aid services, on the basis of the number of
16students for whom fees are waived. It also is the intent of the
17Legislature that the funds provided pursuant to this subdivision
18directly offset mandated costs claimed by community college
19districts pursuant to Commission on State Mandates consolidated
20Test Claims 99-TC-13 (Enrollment Fee Collection) and 00-TC-15
21(Enrollment Fee Waivers). Funds allocated to a community college
22district for determination of financial need and delivery of student
23financial aid services shall supplement, and shall not supplant, the
24level of funds allocated for the administration of student financial
25aid programs during the 1992-93 fiscal year.
26(n) The board of governors shall adopt regulations implementing
28(o) This section shall become operative on May 1, 2012, only
29if subdivision (b) of Section 3.94 of the Budget Act of 2011 is
Section 94923 of the Education Code is amended to
(a) The Student Tuition Recovery Fund relieves or
34mitigates economic loss suffered by a student while enrolled in an
35educational program, as defined in Section 94837, at an institution
36not exempt from this article pursuant to Article 4 (commencing
37with Section 94874), who, at the time of his or her enrollment,
38was a California resident or was enrolled in a California residency
39program, prepaid tuition, and suffered economic loss.
P11 1(b) The bureau shall adopt by regulation procedures governing
2the administration and maintenance of the Student Tuition
3Recovery Fund, including requirements relating to assessments
4on students and student claims against the Student Tuition
5Recovery Fund. The regulations shall provide for awards to
6students who suffer economic loss.
7The regulations shall ensure that the following students, and any
8other students deemed appropriate, are eligible for payment from
9the Student Tuition Recovery Fund:
10(1) Any student who was enrolled at an institution, at a location
11of the institution, or in an educational program offered by the
12institution, at the time that institution, location, or program was
13closed or discontinued, as applicable, who did not choose to
14participate in a teach-out plan approved by the bureau or did not
15complete a chosen teach-out plan approved by the bureau.
16(2) Any student who was enrolled at an institution or a location
17of the institution within the 120-day period before the closure of
18the institution or location of the institution, or who was enrolled
19in an educational program within the 120-day period before the
20program was discontinued, if the bureau determines there was a
21significant decline in the quality or value of that educational
22program during that time period.
23(3) Any student who was enrolled at an institution or a location
24of the institution more than 120 days before the closure of the
25institution or location of the institution, in an educational program
26offered by the institution as to which the bureau determines there
27was a significant decline in the quality or value of the program
28more than 120 days before closure.
29(4) A student to whom an institution has been ordered to pay a
30refund by the bureau but has failed to do so.
31(5) A student to whom an institution has failed to pay or
32reimburse loan proceeds under a federal student loan program as
33required by law, or has failed to pay or reimburse proceeds received
34by the institution in excess of tuition and other costs.
35(6) A student who has been awarded restitution, a refund, or
36other monetary award by an arbitrator or court, based on a violation
37of this chapter by an institution or representative of an institution,
38but who has been unable to collect the award from the institution.
39The bureau shall review the award or judgment and shall ensure
P12 1the amount to be paid from the fund does not exceed the student’s
3(7) Notwithstanding the
begin delete requirementsend delete of subdivision
4(a) that the institution not be exempt from this article, a student
5who was enrolled at a California campus of a Corinthian Colleges,
6Inc. institution, including Heald College, or was a California
7student enrolled in an online program offered by an out-of-state
8campus of a Corinthian Colleges, Inc. institution, who also meets
9all of the other requirements in subdivision (a), if the student was
10enrolled as of April 26, 2015, or withdrew within 120 days of that
11date or any greater period determined by the bureau pursuant to
13(c) Any student who is required to pay a Student Tuition
14Recovery Fund assessment who pays tuition equal to or greater
15than the required assessment shall be deemed to have paid the
16required assessment, whether or not his or her enrollment
17agreement specifies collection of the required assessment, and
18whether or not the institution identifies any money collected from
19the student as a Student Tuition Recovery Fund assessment.
20(d) The bureau shall establish regulations ensuring, as
21permissible under California law, that a student who suffers
22educational opportunity losses, whose charges are paid by a
23third-party payer, is eligible for educational credits under the fund.
24(e) The bureau may seek repayment to the Student Tuition
25Recovery Fund from an institution found in violation of the law
26for which a student claim was paid. An institution shall not be
27eligible to renew its approval to operate with the bureau if the
28repayment is not made to the bureau as requested.
29(f) The bureau shall, by regulation, define “economic loss.” The
30regulation shall ensure that the definition of “economic loss”
31includes, but is not necessarily limited to, pecuniary loss, which
32is the sum of the student’s tuition, all other institutional charges
33as defined in Section 94844, the cost of equipment and materials
34required for the educational program as defined in Section 94837,
35interest on any student loan used to pay for such charges, collection
36costs, penalties, and any license or examination fees the student
37paid to the institution but is unable to recover. Economic loss shall
38also include the amount the institution collected and failed to pay
39to third parties on behalf of the student for license fees or any other
40purpose. Economic loss does not include Student Tuition Recovery
P13 1Fund assessments, unless the student is entitled to a full refund
2under Section 94919 or 94920, room and board, supplies,
3transportation, application fees, or nonpecuniary damages such as
4inconvenience, aggravation, emotional distress, or punitive
5damages. Economic loss does not include legal fees, attorney fees,
6court costs, or arbitration fees. Nothing in this subdivision shall
7prevent the bureau from further defining economic loss to include
8loss of educational opportunity.
Section 94925 of the Education Code is amended to
(a) The amount in the Student Tuition Recovery Fund
12shall not exceed fifty million dollars ($50,000,000) at any time.
13(b) If the bureau has temporarily stopped collecting the Student
14Tuition Recovery Fund assessments because the fund has
15approached the fifty million dollar limit in subdivision (a), the
16bureau shall resume collecting Student Tuition Recovery Fund
17assessments when the fund falls below forty-five million dollars
19(c) An otherwise eligible student who enrolled during a period
20when institutions were not required to collect Student Tuition
21Recovery Fund assessments is eligible for Student Tuition
22Recovery Fund payments despite not having paid any Student
23Tuition Recovery Fund assessment.
24(d) A student who is eligible for recovery from the Student
25Tuition Recovery Fund pursuant to paragraph (7) of subdivision
26(b) of Section 94923 shall be eligible for payments despite not
27having paid any Student Tuition Recovery Fund assessment.
Section 94926.5 is added to the Education Code, to
(a) (1) The bureau shall establish and coordinate a
31closed school task force to respond to the closure of an institution
32that does not comply with the requirements, as applicable, of this
33article. The task force shall ensure that students who were enrolled
34at, or in an online program offered by, the institution receive
35accurate and uniform information regarding the school closure
36process and the students’ rights and responsibilities. The task force
37shall assist these students in all of the following:
38(A) Obtaining refunds, loan discharges, and tuition recovery
39for which the student is eligible.
P14 1(B) Obtaining information regarding the option to transfer
2that the student earned while attending the institution, including
3information necessary to help the student make an informed
4decision about whether to seek a loan discharge or to transfer
6(C) Providing other support deemed necessary by the task force
7in accordance with the bureau's consumer protection mission.
8(2) The members of the task force should include, but not
9necessarily be limited to, representatives on behalf of the Student
10Aid Commission, the Department of Justice, the Office of the
11Chancellor of the California Community Colleges, the Department
12of Veterans Affairs, and one or more legal aid organizations.
13(b) Upon the unlawful closure of an institution, the bureau shall
14establish a grant fund in order to provide financial grants, not to
15exceed one hundred dollars ($100) per student, to local legal aid
16organizations, which may include local legal aid organizations
17designed specifically to assist veteran students, to assist the students
18of that institution with completing loan discharge requests and
19tuition recovery claims.