SECTIONS 94932-94945 - California Statutes

EDUCATION CODE

SECTION 94932-94945

94932. The bureau shall determine an institution's compliance with
the requirements of this chapter. The bureau shall have the power to
require reports that institutions shall file with the bureau in
addition to the annual report, to send staff to an institution's
sites, and to require documents and responses from an institution to
monitor compliance. When the bureau has reason to believe that an
institution may be out of compliance, it shall conduct an
investigation of the institution. If the bureau determines, after
completing an investigation, that an institution has violated any
applicable law or regulation, the bureau shall take appropriate
action pursuant to this article.

94932.5. (a) As part of its compliance program, the bureau shall
perform announced and unannounced inspections of institutions at
least every two years.
(b) On or before January 1, 2011, the bureau shall adopt
regulations setting forth policies and practices to ensure that
institutions are subject to an equal number of announced and
unannounced inspections for each two-year period. The regulations
shall also set forth policies and practices for providing notice to
students enrolled at an institution of the results of each inspection
of the institution.

94933. The bureau shall provide an institution with the opportunity
to remedy noncompliance, impose fines, place the institution on
probation, or suspend or revoke the institution's approval to
operate, in accordance with this article, as it deems appropriate
based on the severity of an institution's violations of this chapter,
and the harm caused to students.

94933.5. As much as is practicable, the bureau shall seek to
resolve instances of noncompliance, including the use of alternative
dispute resolution procedures in Article 5 (commencing with Section
11420.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the
Government Code.

94934. (a) As part of the compliance program, an institution shall
submit an annual report to the bureau, under penalty of perjury,
signed by a responsible corporate officer, by July 1 of each year, or
another date designated by the bureau, and it shall include the
following information for educational programs offered in the
reporting period:
(1) The total number of students enrolled by level of degree or
for a diploma.
(2) The number of degrees, by level, and diplomas awarded.
(3) The degree levels and diplomas offered.
(4) The Student Performance Fact Sheet, as required pursuant to
Section 94910.
(5) The school catalog, as required pursuant to Section 94909.
(6) The total charges for each educational program by period of
attendance.
(7) A statement indicating whether the institution is, or is not,
current in remitting Student Tuition Recovery Fund assessments.
(8) A statement indicating whether an accrediting agency has taken
any final disciplinary action against the institution.
(9) Additional information deemed by the bureau to be reasonably
required to ascertain compliance with this chapter.
(b) The bureau, by January 1, 2011, shall prescribe the annual
report's format and method of delivery.

94935. (a) Bureau staff who, during an inspection of an
institution, detect a violation of this chapter, or regulations
adopted pursuant to this chapter, that is a minor violation as
determined by the bureau, pursuant to regulations adopted by January
1, 2011, shall issue a notice to comply before leaving the
institution. The bureau shall establish a voluntary informal appeal
process, by regulation, within one year of the enactment of this
chapter.
(b) An institution that receives a notice to comply shall have no
more than 30 days from the date of inspection to remedy the
noncompliance.
(c) Upon achieving compliance, the institution shall sign and
return the notice to comply to the bureau.
(d) A single notice to comply shall be issued listing separately
all the minor violations cited during the inspection.
(e) A notice to comply shall not be issued for any minor violation
that is corrected immediately in the presence of the bureau staff.
Immediate compliance may be noted in the inspection report, but the
institution shall not be subject to any further action by the bureau.
(f) A notice to comply shall be the only means the bureau shall
use to cite a minor violation discovered during an inspection. The
bureau shall not take any other enforcement action specified in this
chapter against an institution that has received a notice to comply
if the institution remedies the violation within 30 days from the
date of the inspection.
(g) If an institution that receives a notice to comply pursuant to
subdivision (a) disagrees with one or more of the alleged minor
violations listed in the notice to comply, an institution shall send
the bureau a written notice of disagreement. The agency may take
administrative enforcement action to seek compliance with the
requirements of the notice to comply.
(h) If an institution fails to comply with a notice to comply
within the prescribed time, the bureau shall take appropriate
administrative enforcement action.

94936. (a) As a consequence of an investigation, and upon a finding
that the institution has committed a violation of this chapter or
that the institution has failed to comply with a notice to comply
pursuant to Section 94935, the bureau shall issue a citation to an
institution for violation of this chapter, or regulations adopted
pursuant to this chapter.
(b) The citation may contain either or both of the following:
(1) An order of abatement that may require an institution to
demonstrate how future compliance with this chapter or regulations
adopted pursuant to this chapter will be accomplished.
(2) Notwithstanding Section 125.9 of the Business and Professions
Code, an administrative fine not to exceed five thousand dollars
($5,000) for each violation. The bureau shall base its assessment of
the administrative fine on:
(A) The nature and seriousness of the violation.
(B) The persistence of the violation.
(C) The good faith of the institution.
(D) The history of previous violations.
(E) The purposes of this chapter.
(F) The potential harm to students.
(c) (1) The citation shall be in writing and describe the nature
of the violation and the specific provision of law or regulation that
is alleged to have been violated.
(2) The citation shall inform the institution of its right to
request a hearing in writing within 30 days from service of the
citation.
(3) If a hearing is requested, the bureau shall select an informal
hearing pursuant to Article 10 (commencing with Section 11445.10) of
Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government
Code or a formal hearing pursuant to Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.
(4) If a hearing is not requested, payment of the administrative
fine is due 30 days from the date of service, and shall not
constitute an admission of the violation charged.
(5) If a hearing is conducted and payment of an administrative
fine is ordered, the administrative fine is due 30 days from when the
final order is entered.
(6) The bureau may enforce the administrative fine as if it were a
money judgment pursuant to Title 9 (commencing with Section 680.010)
of Part 2 of the Code of Civil Procedure.
(d) All administrative fines shall be deposited in the Private
Postsecondary Education Administration Fund.

94937. (a) As a consequence of an investigation, and upon a finding
that an institution has committed a violation, the bureau may place
an institution on probation or may suspend or revoke an institution's
approval to operate for:
(1) Obtaining an approval to operate by fraud.
(2) A material violation or repeated violations of this chapter or
regulations adopted pursuant to this chapter that have resulted in
harm to students. For purposes of this paragraph, "material violation"
includes, but is not limited to, misrepresentation, fraud in the
inducement of a contract, and false or misleading claims or
advertising, upon which a student reasonably relied in executing an
enrollment agreement and that resulted in harm to the student.
(b) The bureau shall adopt regulations, within one year of the
enactment of this chapter, governing probation and suspension of an
approval to operate.
(c) The bureau may seek reimbursement pursuant to Section 125.3 of
the Business and Professions Code.
(d) An institution shall not be required to pay the cost of
investigation to more than one agency.

94938. (a) If the bureau determines that it needs to make an
emergency decision to protect students, prevent misrepresentation to
the public, or prevent the loss of public funds or moneys paid by
students, it may do so pursuant to Article 13 (commencing with
Section 11460.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2
of the Government Code.
(b) The bureau shall, by January 1, 2011, adopt regulations to
give this section effect pursuant to Section 11460.20 of the
Government Code.

94939. (a) The bureau may bring an action for equitable relief for
any violation of this chapter. The equitable relief may include
restitution, a temporary restraining order, the appointment of a
receiver, and a preliminary or permanent injunction. The action may
be brought in the county in which the defendant resides or in which
any violation has occurred or may occur.
(b) The remedies provided in this section supplement, and do not
supplant, the remedies and penalties under other provisions of law.

94940. As consequence of an adverse administrative action against
an institution, the institution may request a hearing pursuant to
Article 10 (commencing with Section 11445.10) of Chapter 4.5 or
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code.

94941. (a) An individual who has cause to believe that an
institution has violated this chapter, or regulations adopted
pursuant to this chapter, may file a complaint with the bureau
against the institution. The complaint shall set forth the alleged
violation, and shall contain any other information as may be required
by the bureau.
(b) Taking into account the nature and seriousness of the alleged
violation, the bureau shall take action to ascertain the facts and to
verify the complaint. The action may include interviewing
institution management, conducting an investigation, holding an
informal hearing, or other appropriate investigative activity.
(c) Upon the facts discovered, the bureau shall take appropriate
administrative enforcement action.
(d) If the bureau finds that an institution's violation of this
chapter has caused damage or loss to a student or group of students,
the bureau shall order the institution to provide appropriate
restitution to that student or group of students.

94942. (a) The bureau shall establish a toll-free telephone number
staffed by a bureau employee by which a student or a member of the
public may file a complaint under this chapter.
(b) The bureau shall make a complaint form available on its
Internet Web site. The bureau shall permit students and members of
the public to file a complaint under this chapter through the bureau'
s Internet Web site.

94943. The following violations of this chapter are public
offenses:
(a) Knowingly operating a private postsecondary institution
without an approval to operate is an infraction subject to the
procedures described in Sections 19.6 and 19.7 of the Penal Code.
(b) Knowingly providing false information to the bureau on an
application for an approval to operate is an infraction subject to
the procedures described in Sections 19.6 and 19.7 of the Penal Code.
(c) Knowingly submitting, to the bureau, false information that is
required to be reported pursuant to Article 16 (commencing with
Section 94928) is an infraction subject to the procedures described
in Sections 19.6 and 19.7 of the Penal Code.

94943.5. An institution shall designate and maintain an agent for
service of process within this state, and provide the name, address,
and telephone number of the agent to the bureau. The bureau shall
furnish the agent's name, address, and telephone number to a person
upon request.

94944. Notwithstanding any other provision of law, the bureau shall
cite any person, and that person shall be subject to a fine not to
exceed fifty thousand dollars ($50,000), for operating an institution
without proper approval to operate issued by the bureau pursuant to
this chapter.

94944.5. Each institution subject to this chapter shall be deemed
to have authorized its accrediting agency to provide the bureau, the
Attorney General, any district attorney, city attorney, or the
Student Aid Commission, within 30 days of written notice, copies of
all documents and other material concerning the institution that are
maintained by the accrediting agency.

94944.6. Within 30 days of receiving a written notice from the
bureau, the Attorney General, district attorney, city attorney, or
the Student Aid Commission pursuant to Section 94944.5, an
accrediting agency shall provide the requesting entity with all
documents or other material concerning an institution accredited by
that agency that are designated specifically or by category in the
written notice.

94945. (a) This chapter does not limit or preclude the enforcement
of rights or remedies under any other applicable statute or law.
(b) This chapter does not limit or preclude the Attorney General,
a district attorney, or a city attorney from taking any action
otherwise authorized under any other applicable statute or law.