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, until July 1, 2018, require the board of governors to waive the fee for students who meet prescribed requirements, were enrolled at a California campus of a Corinthian Colleges, Inc., institution, and were either unable to complete an educational program offered by the campus due to the campus’s closure on April 27, 2015, or
withdrew from an educational program offered by a Corinthian Colleges campus
begin delete within 120 days of that date,end delete and have demonstrated need, as determined by the enrolling campus. To the extent this provision would impose additional duties on community college districts, it would constitute a state-mandated local program.
(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 provide that, until January 1, 2020,
begin delete thereend delete
shall begin delete be establishedend delete a single point of contact to respond to begin delete theend delete closure of begin delete institutionsend delete that begin delete doend delete not comply with these requirements prior to closing. The bill would require the single point of contact to assist the students who were enrolled at, or in an online program offered by, an institution that closes in, among other things, obtaining refunds, loan discharges, and tuition recovery. begin delete The bill would, upon the unlawful closure of an institution, require the Attorney General, or a qualified entity under contract with the Attorney General, to provide timely grant funds to eligible local nonprofit community service organizations to assist students of that institution with loan discharge and other student loan-related requests and tuition recovery-related claims, as specified.end delete
(3) This bill would appropriate the sum of $1,300,000 from the Private Postsecondary Education Administration Fund to the Bureau of Private Postsecondary Education for the purposes of providing financial grants to eligible local nonprofit community service organizations, as described above, for students affected by the closure of Corinthian Colleges, Inc., as specified, thereby making an appropriation.end delete
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
begin delete 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. By expanding the purpose for which moneys in the Student Tuition Recovery Fund may be used, this bill would make an appropriation. The bill wouldend delete raise the cap for the fund to $50,000,000.
The bill would authorize a private postsecondary institution to submit Student Tuition Recovery Fund assessments to the bureau for its students who are enrolled at the institution, would prohibit the institution from advertising or marketing this as a benefit it provides for its students, and would establish additional requirements related to the fund, as specified.end delete
(5) 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 partially exempt from this limitation on Cal Grant awards a student who was enrolled and received a Cal Grant award at a California campus of Heald College, and who was unable to complete an educational program offered by the campus due to its closure.
(6) The California National Guard Education Assistance Award Program authorizes the renewal of California National Guard Education Assistance Awards, for a maximum of the greater of either four years of full-time equivalent enrollment or the duration for which the qualifying member would otherwise be eligible pursuant to the Cal Grant Program, if specified conditions are met.
This bill would partially exempt from this limitation on California National Guard Education Assistance Awards a student who was enrolled and received a California National Guard Education Assistance Award at a California campus of Heald College, and who was unable to complete an educational program offered by the campus due to its closure.
(7) This bill would appropriate $100,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to a community college district for the purpose of conducting a statewide media campaign to inform students affected by the closure of Corinthian Colleges, Inc., of the education opportunities available at community colleges, thereby making an appropriation.
Funds appropriated by this bill to a community college district would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.
(8) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
(9) This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
(a) 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 students who
5were enrolled at a California campus of a Corinthian Colleges,
6Inc., institution, including Heald College, and California students
7enrolled in one or more online programs offered by an out-of-state
8campus of a Corinthian Colleges, Inc., institution who were harmed
9by the closure of Corinthian Colleges, Inc., that took place on April
11(b) (1) The sum of one hundred thousand dollars ($100,000)
12is hereby appropriated from the General Fund to the Chancellor
13of the California Community Colleges for allocation to a
14community college district to conduct a statewide media campaign
15to inform students affected by the closure of Corinthian Colleges,
16Inc., of education opportunities available at community colleges.
17(2) For purposes of making the computations required by Section
188 of Article XVI of the California Constitution, the funds
19appropriated pursuant to this section shall be deemed to be
20“General Fund revenues appropriated for community college
21districts,” as defined in subdivision (d) of Section 41202 of the
22Education Code, for the 2014-15 fiscal year, and included within
23the “total allocations to school districts and community college
24districts from General Fund proceeds of taxes appropriated pursuant
P6 1to Article XIII B,” as defined in subdivision (e) of Section 41202
2of the Education Code, for the 2014-15 fiscal year.
It is the intent of the Legislature that unencumbered
4restitution funds awarded to the state from a lawsuit involving
5Corinthian Colleges, Inc., and its affiliate institutions, including
6Heald College, shall be used to repay any funds provided to those
7students pursuant to this act.
Section 69433.61 is added to the Education Code, to
(a) Notwithstanding any other law, a student who
11was enrolled and received a Cal Grant award in the 2013-14 or
122014-15 academic year at a California campus of Heald College,
13and was unable to complete an educational program offered by
14the campus due to the campus’s closure on April 27, 2015, shall
15not have the award years used at a Heald College campus
16considered for purposes of the limitation on the number of years
17of Cal Grant award eligibility. This restoration of award years for
18Cal Grant eligibility shall not exceed two years.
19 (b) A student shall be eligible for the restoration of award years
20if the student was enrolled at a campus of Heald College on April
2127, 2015, or
begin delete had withdrawnend delete from enrollment begin delete within 120 The
22days of that date.end delete
23Bureau for Private Postsecondary Education shall provide the
24commission with confirmation of student enrollment for purposes
25of this section.
26(c) An eligible student shall, before January 1, 2017, notify the
27commission of his or her intent to use the restoration of award
28years provided under this section and to enroll in an institution
29eligible for initial and renewal Cal Grant awards to be eligible for
Section 69999.19 is added to the Education Code, to
(a) Notwithstanding any other law, a student who
34was enrolled and received a California National Guard Education
35Assistance Award in the 2013-14 or 2014-15 academic year at a
36California campus of Heald College, and was unable to complete
37an educational program offered by the campus due to the campus’s
38closure on April 27, 2015, shall not have the award years used at
39a Heald College campus considered for purposes of the limitation
40on the number of years of California National Guard Education
P7 1Assistance Award eligibility. This restoration of award years for
2California National Guard Education Assistance Award eligibility
3shall not exceed two years.
4(b) A student shall be eligible for the restoration of award years
5if the student was enrolled at a campus of Heald College on April
627, 2015, or
begin delete had withdrawnend delete from enrollment begin delete within 120 The
7days of that date.end delete
8Bureau for Private Postsecondary Education shall provide the
9commission with confirmation of student enrollment for purposes
10of this section.
11(c) An eligible student shall, before January 1, 2017, notify the
12commission of his or her intent to use the restoration of award
13years provided under this section and to enroll in an institution
14eligible for initial and renewal California National Guard Education
15 Assistance Awards to be eligible for that restoration.
Section 76300 of the Education Code is amended to
(a) The governing board of each community college
19district shall charge each student a fee pursuant to this section.
20(b) (1) The fee prescribed by this section shall be forty-six
21dollars ($46) per unit per semester, effective with the summer term
22of the 2012 calendar year.
23(2) The board of governors shall proportionately adjust the
24amount of the fee for term lengths based upon a quarter system,
25and also shall proportionately adjust the amount of the fee for
26summer sessions, intersessions, and other short-term courses. In
27making these adjustments, the board of governors may round the
28per unit fee and the per term or per session fee to the nearest dollar.
29(c) For the purposes of computing apportionments to community
30college districts pursuant to Section 84750.5, the board of
31governors shall subtract, from the total revenue owed to each
32district, 98 percent of the revenues received by districts from
33charging a fee pursuant to this section.
34(d) The board of governors shall reduce apportionments by up
35to 10 percent to any district that does not collect the fees prescribed
36by this section.
37(e) The fee requirement does not apply to any of the following:
38(1) Students enrolled in the noncredit courses designated by
P8 1(2) California State University or University of California
2students enrolled in remedial classes provided by a community
3 college district on a campus of the University of California or a
4campus of the California State University, for whom the district
5claims an attendance apportionment pursuant to an agreement
6between the district and the California State University or the
7University of California.
8(3) Students enrolled in credit contract education courses
9pursuant to Section 78021, if the entire cost of the course, including
10administrative costs, is paid by the public or private agency,
11corporation, or association with which the district is contracting
12and if these students are not included in the calculation of the
13full-time equivalent students (FTES) of that district.
14(f) The governing board of a community college district may
15exempt special part-time students admitted pursuant to Section
1676001 from the fee requirement.
17(g) (1) The fee requirements of this section shall be waived for
18any student who meets all of the following requirements:
19(A) Meets minimum academic and progress standards adopted
20by the board of governors, which fulfill the requirements outlined
21in this paragraph and paragraphs (2) to (5), inclusive. Any
22minimum academic and progress standards adopted pursuant to
23this section shall be uniform across all community college districts
24and campuses. These standards shall not include a maximum unit
25cap, and community college districts and colleges shall not impose
26requirements for fee waiver eligibility other than the minimum
27academic and progress standards adopted by the board of governors
28and the requirements of subparagraph (B).
29(B) Meets at least one of the following criteria:
30(i) At the time of enrollment,
is a recipient of benefits under the
31Temporary Assistance for Needy Families program, the
32Supplemental Security Income/State Supplementary Payment
33Program, or a general assistance program.
34(ii) Demonstrates eligibility according to income standards
35established by regulations of the board of governors.
36(iii) Demonstrates financial need in accordance with the
37methodology set forth in federal law or regulation for determining
38the expected family contribution of students seeking financial aid.
39(iv) Was enrolled at a California campus of a Corinthian
40Colleges, Inc., institution, was unable to complete an education
P9 1program offered by the campus due to the campus’s closure on
2April 27, 2015, and has demonstrated need, as determined
3by the enrolling campus. This clause shall become inoperative on
4July 1, 2018.
5(v) Was enrolled at a California campus of a Corinthian
6Colleges, Inc., institution, withdrew from an education program
7offered by the campus
begin delete within 120 days, or a greater periodend delete
determined by the Bureau for Private
10Postsecondary Education pursuant to Section 94923,
begin delete of the and has demonstrated need, as
11campus’s closure on April 27, 2015,end delete
14determined by the enrolling campus. This clause shall become
15inoperative on July 1, 2018.
16(2) (A) The board of governors, in consultation with students,
17faculty, and other key stakeholders, shall consider all of the
18following in the development and adoption of minimum academic
19and progress standards pursuant to subparagraph (A) of paragraph
21(i) Minimum uniform academic and progress standards that do
22not unfairly disadvantage financially needy students in pursuing
24(ii) Criteria for
reviewing extenuating circumstances and
25granting appeals that, at a minimum, take into account and do not
26penalize a student for circumstances outside his or her control,
27such as reductions in student support services or changes to the
28economic situation of the student.
29(iii) A process for reestablishing fee waiver eligibility that
30provides a student with a reasonable opportunity to continue or
31resume his or her enrollment at a community college.
32(B) To ensure that students are not unfairly impacted by the
33requirements of subparagraph (A) of paragraph (1), the board of
34governors shall establish a reasonable implementation period that
35commences no sooner than one year from adoption of the minimum
36academic and progress standards, or any subsequent changes to
37these standards, pursuant to subparagraph (A) of paragraph (1)
38and that is phased in to provide students adequate notification of
39this requirement and information about available support resources.
P10 1(3) It is the intent of the Legislature that minimum academic
2and progress standards adopted pursuant to subparagraph (A) of
3paragraph (1) be implemented only as campuses develop and
4implement the student support services and interventions necessary
5to ensure no disproportionate impact to students based on ethnicity,
6gender, disability, or socioeconomic status. The board of governors
7shall consider the ability of community college districts to meet
8the requirements of this paragraph before adopting minimum
9academic and progress standards, or any subsequent changes to
10these standards, pursuant to subparagraph (A) of paragraph (1).
11(4) It is the intent of the Legislature to ensure that a student shall
12not lose fee waiver eligibility without a community college campus
13first demonstrating a reasonable effort to provide a student with
14adequate notification and assistance in maintaining his or her fee
15waiver eligibility. The board of governors shall adopt regulations
16to implement this paragraph that ensure all of the following:
17(A) Students are provided information about the available
18student support services to assist them in maintaining fee waiver
20(B) Community college district policies and course catalogs
21reflect the minimum academic and progress standards adopted
22pursuant to subparagraph (A) of paragraph (1) and that appropriate
23notice is provided to students before the policies are put into effect.
24(C) A student does not lose fee waiver eligibility unless he or
25she has not met minimum academic and progress standards adopted
26pursuant to subparagraph (A) of paragraph (1) for a period of no
27less than two consecutive academic terms.
28(5) The board of governors shall provide notification of a
29proposed action to adopt regulations pursuant to this subdivision
30to the appropriate policy and fiscal committees of the Legislature
31in accordance with the requirements of paragraph (1) of subdivision
32(a) of Section 70901.5. This notification shall include, but not be
33limited to, all of the following:
34(A) The proposed minimum academic and progress standards
35and information detailing how the requirements of paragraphs (1)
36to (4), inclusive, have been or will be satisfied.
37(B) How many students may lose fee waiver eligibility by
38ethnicity, gender, disability, and, to the extent relevant data is
39available, by socioeconomic status.
P11 1(C) The criteria for reviewing
2granting appeals, and reestablishing fee waiver eligibility pursuant
3to paragraph (2).
4(h) The fee requirements of this section shall be waived for any
5student who, at the time of enrollment, is a dependent or surviving
6spouse who has not remarried, of any member of the California
7National Guard who, in the line of duty and while in the active
8service of the state, was killed, died of a disability resulting from
9an event that occurred while in the active service of the state, or
10is permanently disabled as a result of an event that occurred while
11in the active service of the state. “Active service of the state,” for
12the purposes of this subdivision, refers to a member of the
13California National Guard activated pursuant to Section 146 of
14the Military and Veterans Code.
15(i) The fee requirements of this section shall be waived for any
16student who is the surviving spouse or the child, natural or adopted,
17of a deceased person who met all of the requirements of Section
19(j) The fee requirements of this section shall be waived for any
20student in an undergraduate program, including a student who has
21previously graduated from another undergraduate or graduate
22program, who is the dependent of any individual killed in the
23September 11, 2001, terrorist attacks on the World Trade Center
24and the Pentagon or the crash of United Airlines Flight 93 in
25southwestern Pennsylvania, if that dependent meets the financial
26need requirements set forth in Section 69432.7 for the Cal Grant
27A Program and either of the following applies:
28(1) The dependent was a resident of California on September
30(2) The individual killed in the attacks was a resident of
31California on September 11, 2001.
32(k) A determination of whether a person is a resident of
33California on September 11, 2001, for purposes of subdivision (j)
34shall be based on the criteria set forth in Chapter 1 (commencing
35with Section 68000) of Part 41 of Division 5 for determining
36nonresident and resident tuition.
37(l) (1) “Dependent,” for purposes of subdivision (j), is a person
38who, because of his or her relationship to an individual killed as
39a result of injuries sustained during the terrorist attacks of
40September 11, 2001, qualifies for compensation under the federal
P12 1September 11th Victim Compensation Fund of 2001 (Title IV
2(commencing with Section 401) of Public Law 107-42).
3(2) A dependent who is the surviving spouse of an individual
4killed in the terrorist attacks of September 11, 2001, is entitled to
5 the waivers provided in this section until January 1, 2013.
6(3) A dependent who is the surviving child, natural or adopted,
7of an individual killed in the terrorist attacks of September 11,
82001, is entitled to the waivers under subdivision (j) until that
9person attains 30 years of age.
10(4) A dependent of an individual killed in the terrorist attacks
11of September 11, 2001, who is determined to be eligible by the
12California Victim Compensation and Government Claims Board,
13is also entitled to the waivers provided in this section until January
15(m) (1) It is the intent of the Legislature that sufficient funds
16be provided to support the provision of a fee waiver for every
17student who demonstrates eligibility pursuant to subdivisions (g)
18to (j), inclusive.
19(2) From funds provided in the annual Budget Act, the board
20of governors shall allocate to community college districts, pursuant
21to this subdivision, an amount equal to 2 percent of the fees waived
22pursuant to subdivisions (g) to (j), inclusive. From funds provided
23in the annual Budget Act, the board of governors shall allocate to
24community college districts, pursuant to this subdivision, an
25amount equal to ninety-one cents ($0.91) per credit unit waived
26pursuant to subdivisions (g) to (j), inclusive. It is the intent of the
27Legislature that funds provided pursuant to this subdivision be
28used to support the determination of financial need and delivery
29of student financial aid services, on the basis of the number of
30students for whom fees are waived. It also is the intent of the
31Legislature that the funds provided pursuant to this subdivision
32directly offset mandated costs claimed by community college
33districts pursuant to Commission on State Mandates consolidated
34Test Claims 99-TC-13 (Enrollment Fee Collection) and 00-TC-15
35(Enrollment Fee Waivers). Funds allocated to a community college
36district for determination of financial need and delivery of student
37financial aid services shall supplement, and shall not supplant, the
38level of funds allocated for the administration of student financial
39aid programs during the 1992-93 fiscal year.
P13 1(n) The board of governors shall adopt regulations implementing
3(o) This section shall become operative on May 1, 2012, only
4if subdivision (b) of Section 3.94 of the Budget Act of 2011 is
Section 94051 is added to the Education Code, to read:
Notwithstanding any provision of law, for a period not
8to exceed two years from the date of the closure of Corinthian
9Colleges, Inc., a state agency that provides certification,
10registration, or licensure necessary to promote the safety and
11protection of the public may, on a case-by-case basis, consider for
12certification, registration, or licensure students who were enrolled
13in a program of Corinthian Colleges, Inc., that provided education
14or training aimed towards these students receiving certification,
15registration, or licensure from the state agency, and who did not
16receive that certification, registration, or licensure due to the closure
17of Corinthian Colleges, Inc. This consideration shall be provided
18at the discretion of the state agency in accordance with its public
19protection mandate and applicable criteria established by the
20agency for consumer safety.
Section 94923 of the Education Code is amended to
(a) The Student Tuition Recovery Fund relieves or
24mitigates economic loss suffered by a student while enrolled in an
25educational program, as defined in Section 94837, at a campus or
26through a distance education program offered by an institution
27with a physical presence in this state, including any affiliates of
28that institution, except at an independent institution of higher
29education, as defined in Section 66010, that is exempt from this
30chapter pursuant to subdivision (i) of Section 94874, who, at the
31time of his or her enrollment, was a California resident or was
32enrolled in a California residency program, prepaid tuition, and
33suffered economic loss.
34(b) The bureau shall adopt
by regulation procedures governing
35the administration and maintenance of the Student Tuition
36Recovery Fund, including requirements relating to assessments
37on students and student claims against the Student Tuition
38Recovery Fund. The regulations shall provide for awards to
39students who suffer economic loss.
P14 1The regulations shall ensure that the following students, and any
2other students deemed appropriate, are eligible for payment from
3the Student Tuition Recovery Fund:
4(1) Any student who was enrolled at an institution, at a location
5of the institution, or in an educational program offered by the
6institution, at the time that institution, location, or program was
7closed or discontinued, as applicable, who did not choose to
8participate in a teach-out plan approved by the bureau or did not
9complete a chosen teach-out plan approved by the bureau.
10(2) Any student who was enrolled at an institution or a location
11of the institution within the 120-day period before the closure of
12the institution or location of the institution, or who was enrolled
13in an educational program within the 120-day period before the
14program was discontinued, if the bureau determines there was a
15significant decline in the quality or value of that educational
16program during that time period.
17(3) Any student who was enrolled at an institution or a location
18of the institution more than 120 days before the closure of the
19institution or location of the institution, in an educational program
20offered by the institution as to which the bureau determines there
21was a significant decline in the quality or value of the program
22more than 120 days before closure.
23(4) A student to whom an institution has been ordered to pay a
24refund by the bureau but has failed to do so.
25(5) A student to whom an institution has failed to pay or
26reimburse loan proceeds under a federal student loan program as
27required by law, or has failed to pay or reimburse proceeds received
28by the institution in excess of tuition and other costs.
29(6) A student who has been awarded restitution, a refund, or
30other monetary award by an arbitrator or court, based on a violation
31of this chapter by an institution or representative of an institution,
32but who has been unable to collect the award from the institution.
33The bureau shall review the award or judgment and shall ensure
34the amount to be paid from the fund does not exceed the student’s
36(7) Notwithstanding the requirement of subdivision (a) that the
37institution not be exempt from this article, a student who was
38enrolled at a California campus of a Corinthian Colleges, Inc.,
39institution or was a California student enrolled in an online program
40offered by an out-of-state campus of a Corinthian Colleges, Inc.,
P15 1institution, who also meets all of the other eligibility requirements,
2if the student was enrolled as of April 27, 2015, or withdrew within
3120 days of that date or any greater period determined by the
4bureau pursuant to this section.
5(c) Any student who is required to pay a Student Tuition
6Recovery Fund assessment who pays tuition equal to or greater
7than the required assessment shall be deemed to have paid the
8required assessment, whether or not his or her enrollment
9agreement specifies collection of the required assessment, and
10whether or not the institution identifies any money collected from
11the student as a Student Tuition Recovery Fund assessment.
12(d) The bureau shall establish regulations ensuring, as
13permissible under California law, that a student who suffers
14educational opportunity losses, whose charges are paid by a
15third-party payer, is eligible for educational credits under the fund.
16(e) The bureau may seek repayment to the Student Tuition
17Recovery Fund from an institution found in violation of the law
18for which a student claim was paid. An institution shall not be
19eligible to renew its approval to operate with the bureau if the
20 repayment is not made to the bureau as requested.
21(f) The bureau shall, by regulation, define “economic loss.” The
22regulation shall ensure that the definition of “economic loss”
23includes, but is not necessarily limited to, pecuniary loss, which
24is the sum of the student’s tuition, all other institutional charges
25as defined in Section 94844, the cost of equipment and materials
26required for the educational program as defined in Section 94837,
27interest on any student loan used to pay for such charges, collection
28costs, penalties, and any license or examination fees the student
29paid to the institution but is unable to recover. Economic loss shall
30also include the amount the institution collected and failed to pay
31to third parties on behalf of the student for license fees or any other
32purpose. Economic loss does not include Student Tuition Recovery
33Fund assessments, unless the student is entitled to a full refund
34under Section 94919 or 94920, room and board, supplies,
35transportation, application fees, or nonpecuniary damages such as
36inconvenience, aggravation, emotional distress, or punitive
37damages. Economic loss does not include legal fees, attorney fees,
38court costs, or arbitration fees. Nothing in this subdivision shall
39prevent the bureau from further defining economic loss to include
40loss of educational opportunity.
P16 1(g) A representation or agreement made by a person not to
2collect on a student loan shall not lessen a student’s eligibility to
3recover from the Student Tuition Recovery Fund or reduce the
4amount of the student’s economic loss unless the loan has been
5forgiven, discharged, or canceled in accordance with this section.
Section 94924 of the Education Code is amended to
(a) The bureau shall determine the amount of Student
9Tuition Recovery Fund assessments to be collected for each
11(b) An institution may submit Student Tuition Recovery Fund
12assessments to the bureau for its students who are enrolled at the
13institution, but shall not advertise or market this as a benefit it
14provides for its students.
15(c) All assessments collected pursuant to this article shall be
16credited to the Student Tuition Recovery Fund, along with any
17accrued interest, for the purpose of this article. Notwithstanding
18Section 13340 of the Government Code, the moneys in the Student
19Tuition Recovery Fund are continuously appropriated to the bureau,
20without regard to fiscal year, for the purposes of this article.
21(d) Except when an institution provides a full refund pursuant
22to Section 94919 or Section 94920, the Student Tuition Recovery
23Fund assessment is nonrefundable.
24(e) The bureau shall collect Student Tuition Recovery Fund
25assessments from an institution for all of the institution’s enrolled
26students as follows:
27(1) For an institution that is not approved to operate as of the
28date this subdivision becomes operative, the bureau shall collect
29assessments from the institution upon issuance of the institution’s
30approval to operate.
31(2) For an institution that
is approved to operate as of the date
32this subdivision becomes operative, the bureau shall collect
33assessments from the institution for its enrolled students for whom
34an assessment has not been collected, including assessments for
35students enrolled in distance education programs.
Section 94925 of the Education Code is amended to
(a) The amount in the Student Tuition Recovery Fund
40shall not exceed fifty million dollars ($50,000,000) at any time.
P17 1(b) If the bureau has temporarily stopped collecting the Student
2Tuition Recovery Fund assessments because the fund has
3approached the fifty million dollar ($50,000,000) limit in
4subdivision (a), the bureau shall resume collecting Student Tuition
5Recovery Fund assessments when the fund falls below
begin delete forty-fiveend delete
6 million dollars
begin delete ($45,000,000).end delete
7(c) An otherwise eligible student who enrolled during a period
8when institutions were not required to collect Student Tuition
9Recovery Fund assessments is eligible for Student Tuition
10Recovery Fund payments despite not having paid any Student
11Tuition Recovery Fund assessment.
12(d) A student who is eligible for recovery from the Student
13Tuition Recovery Fund pursuant to paragraph (7) of subdivision
14(b) of Section 94923 shall be eligible for payments despite not
15having paid any Student Tuition Recovery Fund assessment.
The heading of Article 15 (commencing with Section
1894926) of Chapter 8 of Part 59 of Division 10 of Title 3 of the 19Education Code is amended to read:
Section 94926 of the Education Code is amended to
(a) At least 30 days prior to closing, the institution
27shall notify the bureau in writing of its intention to close. The
28notice shall be accompanied by a closure plan, which shall include,
29but not necessarily be limited to, all of the following:
30(1) A plan for providing teach-outs of educational programs,
31including any agreements with any other postsecondary educational
32institutions to provide teach-outs.
33(2) If no teach-out plan is contemplated, or for students who do
34not wish to participate in a teach-out, arrangements for making
35refunds within 45 days from the date of closure, or for institutions
36that participate in federal student financial aid programs
37arrangements for making refunds and returning federal student
38financial aid program funds.
P18 1(3) If the institution is a participant in federal student financial
2aid programs, it shall provide students information concerning
3these programs and institutional closures.
4(4) A plan for the disposition of student records.
5(b) Until January 1, 2020,
begin delete thereend delete shall begin delete be a single point of contact to respond to
begin delete theend delete
7 closure of
begin delete institutionsend delete that begin delete doend delete not comply
8with requirements established under state and
9federal law. The goal of the point of contact shall be to ensure that
10students who were enrolled at, or in an online program offered by,
11an institution that has closed receive accurate and timely
12information regarding the school closure process and the students’
13rights and responsibilities under federal and state law. The point
14of contact’s duties shall include, but not
17 be limited to, all of the following:
18(1) Coordinating and working in consultation with state and
19federal agencies, including, but not limited to, the Bureau for
20Private Postsecondary Education, the Student Aid Commission,
21 the Office of the Chancellor of the
22California Community Colleges, the Department of Veterans
23Affairs, the federal Consumer Financial Protection Bureau, and
24the United States Department of Education to determine both of
26(A) Options and resources available to students.
27(B) Criteria which indicate additional steps are necessary for
28state agencies to take to ensure the protection of the public from
29 school closures.
30(2) Establishing and maintaining an Internet Web site to provide
31information to students about options available in the event of a
32school closure, including information necessary to help a student
33make an informed decision about whether to seek a loan discharge
34or to transfer credits. The Internet Web site shall list the names of
35institutions that are on the United States Department of Education’s
36list for heightened cash monitoring.
37(3) Assisting students in obtaining important documentation
38from a closed institution, including, but not limited to, their
39enrollment agreements, records, transcripts, and loan information.
P19 1(c) (1)
begin deleteConsideration end deleteshould be given to establishing
4the single point of contact within the Attorney General’s office.
5(2) The Legislature finds that the Attorney General’s office has
6expertise in complex legal situations such as those facing students
7impacted by the sudden and abrupt closure of their educational
8institutions and has established an online tool for students to receive
9a personalized resource sheet regarding the types of relief available
11(3) The Legislature finds
begin delete that, among the involved agencies,end delete
12 the Attorney General’s office is
begin delete the bestend delete situated to continue
begin delete central, coordinatingend delete role in the effort to assist
14students of an institution that has closed.
15(4) This subdivision shall not be construed to authorize the
16Attorney General’s office to breach any of its responsibilities or
17to provide individual legal assistance or representation to students
18of an institution that has closed. If the single point of contact is
19established within the Attorney General’s office, the responsibilities
20of the single point of contact shall be separate and distinct from
21the office’s efforts to uphold state law, represent state agencies,
22and undertake related actions.
Section 94926.5 is added to the Education Code, to
(a) Upon the unlawful closure of an institution, grant
27funds shall be timely provided in accordance with this section to
begin delete localend delete nonprofit community service organizations, including,
29but not limited to, legal aid
begin delete organizations,end delete
30 organizations offering free services for counseling on student
31 loan debt problems,
begin delete and organizations assisting
32with the arrangement of debt management and settlement plans,end delete
33 to assist the students of that closed institution, including veterans,
34for no less than one year following the closure of the institution,
35 with loan discharge and
39other student loan-related
begin delete requestsend delete and tuition recovery-related claims. Assistance
begin delete shallend delete include, but is not limited to, outreach and education,
2screening requests for assistance, referring students for additional
3legal assistance through pro bono referral programs, and legal
4services. For purposes of
7this section, an “eligible
begin delete localend delete nonprofit community service
8organization” is an organization that satisfies
begin delete bothend delete
10(1) The organization is a 501(c)(3) tax-exempt organization in
11good standing with the Internal Revenue Service and in compliance
12with all applicable laws and requirements.
13(2) The organization demonstrates expertise in assisting students
14with, and currently provides direct legal services to students
15for, student loan matters.
21(b) The amount of
begin delete fundsend delete
23 shall be calculated by multiplying the number of students affected
24by the institution’s closure by one hundred dollars ($100).
28(c) (1) The bureau shall notify the Attorney General of all
29unlawful school closures within 15 days of the closure.
30(2) The notification shall include the name and location of the
31school, the programs, and the number of students affected at each
32site of the school, as appropriate. The bureau shall provide the
33Attorney General with all additional information that the Attorney
34General may request.
35(3) The Attorney General shall, within 90 days of receipt of the
36notification, solicit grant applications from eligible
begin delete localend delete nonprofit
37community service organizations as described in subdivision (a),
38select one or more of these organizations from among the
39applicants who are deemed to be qualified by the Attorney General,
P21 1notify the bureau and the recipient organization or organizations
2of the selection. The Attorney General may enter into a contract
3with another qualified entity to perform the Attorney General’s
4duties under this subdivision.
5(d) An eligible
begin delete localend delete nonprofit community service organization
6that receives funds pursuant to this section shall enter into a grant
7agreement with the Attorney General, or a qualified entity entrusted
8with this authority pursuant to paragraph (3) of subdivision (c), as
9applicable, and shall use grant funds exclusively for the purposes
10set forth in this section in accordance with the agreement. Any
11unused funds shall be returned to the Attorney General unless the
12parties of the agreement enter into a new agreement authorizing
13the organization to expend the unused funds. The Attorney General,
14or a qualified entity, may terminate the agreement for material
15breach. However, the Attorney General, or a qualified entity, shall
16provide the grantee with written notice of the breach and a
17reasonable opportunity of not less than 30 days to resolve the
19(e) An eligible
begin delete localend delete nonprofit community service organization
20that receives a grant may give priority to low-income students if
21demand exceeds available grant funds. Otherwise, the organization
22may provide assistance regardless of student income level.
23(f) An eligible
begin delete localend delete nonprofit community service organization
24that receives a grant shall report to the Attorney General, or a
25qualified entity pursuant to paragraph (3) of subdivision (c), as
26applicable, quarterly through the grant period on the number of
27students served from the date funds are distributed.
28(g) Funds shall be distributed
begin delete by the Attorney General, or a to preapproved
29qualified entity pursuant to paragraph (3) of subdivision (c), as
begin delete localend delete nonprofit community service
31organizations as follows:
32(1) For a school closure involving fewer than 250 students, 100
33percent of the grant funds shall be distributed within 30 days of
begin delete selection of one or more recipient organizations.end delete
36(2) For a school closure involving 250 or more students:
37(A) Fifty percent shall be distributed within 30 days of the
begin delete date
38of the institution’s unlawful closure.end delete
P22 1(B) Twenty-five percent shall be distributed upon the submission
begin delete eligible local nonprofit community service organization’send delete
3 second quarterly report.
4(C) Twenty-five percent shall be distributed upon the submission
begin delete eligible local nonprofit community service organization’send delete
6 third quarterly report.
7(h) This section shall become inoperative on July 1, 2020, and,
8as of January 1, 2021, is repealed, unless a later enacted statute,
9that becomes operative on or before January 1, 2021, deletes or
10extends the date on which it becomes inoperative and is repealed.
(a) The sum of one million three hundred thousand
13dollars ($1,300,000) is hereby appropriated from the
begin delete Private
14Postsecondary Education Administrationend delete
15 Fund to the Bureau of Private Postsecondary Education for the
16purposes of providing
begin delete financialend delete
grants begin delete pursuant to Section 94926.5 to eligible
17of the Education Codeend delete
begin delete localend delete nonprofit community
begin delete forend delete students affected by the
19closure of Corinthian Colleges,
begin delete Inc.end delete Eligible
begin delete localend delete
nonprofit community service organizations may use grant
23funds received pursuant to
begin delete Section 94926.5 of the Education Codeend delete
24 for affected students served from the
25date of closure.
begin delete Notwithstanding subdivision (g) of Section
2694926.5, theend delete
Bureau of Private Postsecondary Education shall ensure that
30these grant funds are made available within 30 days of the
31enactment of this section.
begin delete Theend delete
32 adoption of any regulation pursuant to this
begin delete subdivisionend delete
33 shall be deemed to be an emergency and necessary for the
34 immediate preservation of the public, health, and safety, or general
15(b) The amount appropriated in subdivision (a) may include
16revenues derived from the assessment of fines and penalties
17imposed, and expenditures of these funds is specifically authorized
18for purposes of Section 13332.18 of the Government Code.
19(c) The Private Postsecondary Education
20reserve limit of six months of operating expenses pursuant to
21subdivision (b) of Section 94930 of the Education Code shall be
22suspended until July 1, 2016.
If the Commission on State Mandates determines that
25this act contains costs mandated by the state, reimbursement to
26local agencies and school districts for those costs shall be made
27pursuant to Part 7 (commencing with Section 17500) of Division
284 of Title 2 of the Government Code.
This act is an urgency statute necessary for the
31immediate preservation of the public peace, health, or safety within
32the meaning of Article IV of the Constitution and shall go into
33immediate effect. The facts constituting the necessity are:
34In order to provide immediate educational and economic relief
35to the thousands of students harmed by the closure of Corinthian
36Colleges, Inc., it is necessary for this act to take effect immediately.