2005 California Education Code Sections 94770-94779.4 Article 4. Administration

94770.  There is a Bureau for Private Postsecondary and Vocational
Education in the Department of Consumer Affairs.   The bureau shall
succeed to any and all rights and claims of the former Council for
Private Postsecondary and Vocational Education that may have been
asserted in any judicial or administrative action pending on January
1, 1998, and shall take any action reasonably necessary to assert and
realize those rights and claims in its own name.  The functions of
the former council and the responsibilities the former council had
for the administration of former Chapter 7 (commencing with Section
94700) on  June 29, 1997, are transferred to the bureau, effective
January 1, 1998, as provided by this act.  It is the intent of the
Legislature that there be no gap in the performance of functions or
the administration of the law governing private postsecondary
educational institutions.  Notwithstanding any other provision of
law, Section 19050.9 of the Government Code shall apply regardless of
the date on which former Chapter 7 (commencing with Section 94700)
became inoperative or was repealed.
   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 council in the
performance of the duties, powers, purposes, responsibilities, and
jurisdictions that are vested in the bureau.
   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.
94770.1.  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.
94771.  (a) The duty of administering and enforcing this chapter is
vested in the Director of Consumer Affairs, who may assign and
delegate those duties to a bureau chief, subject to the other
provisions of this section.
   (b) Every power granted to, or duty imposed upon, the bureau under
this chapter may be exercised or performed in the name of the
bureau, subject to any conditions and limitations the director may
prescribe.  The bureau chief may redelegate any of those powers or
duties to his or her designee.  The bureau chief shall be appointed
by the Governor and confirmed by 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).
   (c) The director, in accordance with the State Civil Service Act,
may appoint and fix the compensation of clerical, inspection,
investigation, evaluation, and auditing personnel, as may be
necessary to carry out this chapter.
   (d) The proceedings under this chapter shall be conducted by the
bureau in accordance with Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code.  To the
extent of any conflict between any of the provisions of this chapter
and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code, that Chapter 5 shall prevail.
   (e) The director shall appoint an advisory committee that shall
consist of representatives of institutions, student advocates, and
employers who hire students, among other parties.  The advisory
committee shall be balanced to ensure that institutions and student
advocates have approximate equal representation.  Institutional
representatives on the committee shall be in general proportion to
the types of institutions approved or registered pursuant to this
chapter and to the number of students served by each type of
institution.  The advisory committee shall advise the bureau
concerning the bureau's administration, licensing, and enforcement
functions under this chapter.
94772.  It is the intent of the Legislature that the bureau's
approval and regulating responsibilities be funded solely through
approval fees and federal funding provided to implement the approval
process for courses offered to veterans by approved institutions.
94774.  The bureau shall have the following functions and
responsibilities in its capacity as the statewide private
postsecondary and vocational educational planning and licensing
agency:
   (a) The establishment of policies for the administration of this
chapter.
   (b) The establishment of minimum criteria for the approval of
private postsecondary or vocational educational institutions to
operate in California and award degrees and diplomas, and for the
approval of institutions that meet the criteria.
   (c) The adoption of regulations governing the conduct of
institutions under this chapter, including, but not limited to,
minimum state standards for refund policies, advertising, enrollment
agreements and contracts, consumer information, attendance policies,
and financial responsibility.
   (d) The adoption of regulations for the transaction of its own
affairs, and procedures necessary or appropriate for the conduct of
its work and the implementation of this chapter.
   (e) The publication of an Internet directory of all private
postsecondary and vocational educational institutions approved to
operate in California under this chapter.
   (f) The impaneling of special committees of technically qualified
persons to assist the bureau in the development of standards for
education and educational institutions and the evaluation of an
application or institutions pursuant to this chapter.  The members of
the special committees shall receive no compensation but shall be
reimbursed for their actual expenses for attendance at official
meetings and actual expenses when on official bureau business.  The
members of the special committees shall serve at no expense to the
state.  The actual travel and per diem expenses incurred by each
member of a special committee shall be reimbursed by the institution
that is the subject of inspection or investigation.
   (g) The bureau may design and administer a process for the
approval of courses offered to veterans, and for the approval and
supervision of the institutions offering courses to veterans,
pursuant to any applicable act of Congress and the regulations
adopted pursuant to such an act.
   (1) For the purposes of this subdivision, the bureau:
   (A) Is designated as the state approving agency for veterans'
institutions and veterans' courses, and is authorized to be
reimbursed for its services in this regard.
   (B) Has the same powers conferred on the Director of Education by
Article 6 (commencing with Section 12090) of Chapter 1 of Part 8, to
enter into agreements and cooperate with the United States Department
of Veterans Affairs, or any other federal agency, regarding approval
of courses, and the approval and supervision of institutions that
offer courses to veterans.
   (C) May adopt regulations that are necessary and appropriate to
exercise its authority under this subdivision.
94774.5.  (a) For the purposes of administration and enforcement of
this chapter, the Department of Consumer Affairs, the bureau, and the
director and officers and employees of the department and the
bureau, shall have all the powers and authority granted under this
chapter and under Division 1 (commencing with Section 100) and
Division 1.5 (commencing with Section 475) of the Business and
Professions Code.  In addition to satisfying the approval,
compliance, and enforcement provisions of this chapter, the bureau
shall also comply with and exercise all authority granted by Division
1 (commencing with Section 100) and Division 1.5 (commencing with
Section 475) of the Business and Professions Code.
   (b) The bureau shall establish a regular inspection program which
shall include unannounced inspections.
   (c) If the bureau determines after an investigation that an
institution has violated this chapter or any of the regulations
adopted by the bureau, the bureau may do any or all of the following:
   (1) Place the institution on probation.
   (2) Issue an order prohibiting the enrollment of new students.
   (3) Issue an administrative citation and impose an administrative
fine as authorized by, and in accordance with, Section 94957 of this
code or Section 146, 147, or 148 of the Business and Professions
Code.
   (4) Issue an order of abatement or citation pursuant to Section
125.9 or 148 of the Business and Professions Code.
   (5) Initiate proceedings under the Administrative Procedure Act or
this chapter to revoke or suspend the institution's approval to
operate.
   (6) With the consent of the institution, refer an adjudicative
proceeding to mediation, or binding or nonbinding arbitration, in
accordance with the regulations of the Office of Administrative
Hearings, the department, or the bureau.
   (7) Order reimbursement of the costs of the investigation and
enforcement in accordance with Section 94935 of this code or Section
125.3 of the Business and Professions Code.  An institution shall not
be required to pay the same costs and expenses to more than one
investigating entity.
   (8) Notify the telephone company to disconnect the institution's
telephone as authorized by Section 149 of the Business and
Professions Code.
94775.  (a) Any person, serving on a special committee of the bureau
pursuant to subdivision (i) of Section 94774, a visiting committee
pursuant to Section 94901, or any other peer review body impaneled by
the bureau and who provides information to the bureau or its staff
in the course and scope of evaluating any institution subject to this
chapter or who testifies at any administrative hearing arising under
this chapter, is entitled to a defense by, and indemnification from,
the bureau to any action arising out of information or testimony to
the bureau which that person would have if he or she were a public
employee.
   (b) Any defense by, or indemnification from, the bureau, as
specified in subdivision (a) shall be solely with respect to that
claim or action pursuant to Article 4 (commencing with Section 825)
of Chapter 1 of Part 2 of, and Part 7 (commencing with Section 995)
of, Division 3.6 of Title 1 of the Government Code.
94776.  The director may purchase annuity contracts for permanent
employees of the bureau who formerly were permanent employees of the
State Department of Education and who had similar state-purchased
annuity contracts prior to January 1, 1998.  The bureau shall reduce
the salaries of the employees for whom the contracts are purchased by
the amount of the costs of the contract if all of the following
conditions are met:
   (a) The annuity contract is under an annuity plan that meets the
requirements of subdivision (b) of Section 403 of the Internal
Revenue Code.
   (b) The employee applies to the director for the purchase of the
contract and reduction of salary.
   (c) All provisions of the Insurance Code and the Government Code
applicable to the purchase of this type of annuity are satisfied.
94777.  The bureau may utilize the resources of accrediting
associations in gathering information about accredited postsecondary
and vocational institutions, including participating as an observer
on accreditation site visits.  However, this section does not
preclude or relieve the bureau of its responsibilities under this
chapter and the bureau shall retain full authority for approving all
private postsecondary and vocational institutions operating in
California.
94778.  (a) The bureau may adopt and enforce regulations that are
necessary, appropriate, or useful to interpret and implement this
chapter pursuant to Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.  Pending the
adoption of those regulations, the bureau may adopt emergency
regulations that shall become effective immediately.  The adoption of
the  emergency regulations shall be subject to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, and the emergency regulations shall only be
effective until June 30, 1999, or on the effective date of the
regulations adopted by the bureau to implement this chapter,
whichever occurs first, at which time the emergency regulations shall
be deemed to be repealed.
   (b) The bureau shall adopt regulations establishing a voluntary
arbitration process similar to that set forth in Article 6.2
(commencing with Section 7085) of Chapter 9 of Division 3 of the
Business and Professions Code for the resolution of disputes between
an institution approved to operate under this chapter and a
complainant or complainants.
   (c) The bureau may adopt regulations that provide for the approval
of courses offered to veterans, and for the approval and supervision
of institutions that offer courses to veterans, pursuant to federal
law.
94779.  The bureau shall make available to members of the public,
upon request, the nature and disposition of all complaints on file
with the bureau against an institution.
94779.1.  (a) The bureau shall work together with the staff of the
Joint Committee on Boards, Commissions, and Consumer Protection,
along with representatives of regulated institutions, the California
Postsecondary Education Commission, the California Student Aid
Commission, students, and other interested parties to revise this
chapter to streamline its provisions and eliminate contradictions,
redundancies, ambiguities, conflicting provisions, and unnecessary
provisions, including consideration of having accreditation by the
United States Department of Education approved regional accrediting
bodies replace some of the bureau's approval requirements of
degree-granting institutions, educational programs, and instructors.
In addition, the bureau, in conjunction with these various entities,
shall evaluate the provisions of this chapter to determine what
additional changes are advisable to improve the effectiveness of the
state's regulation of private postsecondary and vocational education,
including, but not limited to, the need to regulate out-of-state
postsecondary institutions that offer educational programs to
California students via the Internet and the feasibility of that
regulation, and the type and timeliness of information required to be
provided to the bureau.
   (b) The bureau shall objectively assess the cost of meeting its
statutory obligations, determine the staffing necessary to meet those
obligations, determine whether the current fee structure allows for
collection of revenue sufficient to support the necessary staffing,
and report that information to the Director of Consumer Affairs and
the Joint Committee on Boards, Commissions, and Consumer Protection
by March 1, 2005.
   (c) The bureau shall continue to make additional improvements to
its data collection and dissemination systems so that it will provide
improved reporting of information regarding the private
postsecondary and vocational education sector, and improved
monitoring of reports, initial and renewal applications, complaint
and enforcement records, and collection of fees among other
information necessary to serve the bureau's wide-ranging data
management needs effectively.
94779.2.  (a) (1) The Director of Consumer Affairs shall appoint a
Bureau for Private Postsecondary and Vocational Education Operations
and Administrative Monitor no later than  January 3, 2005.  The
director may retain a person for this position by a personal services
contract.  In this connection, the Legislature finds, pursuant to
Section 19130 of the Government Code, that this is a new state
function.
   (2) The director shall supervise the operations monitor and may
terminate or dismiss him or her from this position.
   (b) The director shall advertise the availability of this
position.  The requirements for this position shall include
experience in conducting investigations, familiarity with state laws,
rules, and procedures pertaining to the bureau, and familiarity with
relevant administrative procedures.
   (c) (1) The operations monitor shall assess the bureau's
administrative operations, including its school approval, applicant
review, revenue collection, and complaint and enforcement processes
and procedures with the primary goals of improving the bureau's
overall efficiency, improving its effectiveness, and improving its
compliance with state laws, particularly with respect to the bureau's
approval, complaint, and enforcement processes.
   (2) This monitoring duty shall be on a continuing basis for a
period of no more than two years from the date of the operations
monitor's appointment and shall include, but not  necessarily be
limited to, all of the following:
   (A) Assessing the bureau's revenue collections and needs, and its
staffing.
   (B) Evaluating the relevant laws and regulations to identify
revisions that would improve state regulation and maintain or improve
student and public protection.
   (C) Improving the quality and consistency of the bureau's
processes and performance, including complaint processing and
investigation, and reducing timeframes for each.
   (D) Reducing any complaint backlog.
   (E) Ensuring consistency in the application of sanctions or
discipline imposed on regulated institutions and persons.
   (F) Improving the quality and timeliness of application and
approval processes for regulated institutions and persons, the
collection of fees, and the collection of information from, and the
ability to disseminate information regarding, those entities or
persons regulated by the bureau.
   (G) Improving the bureau's ability to perform outreach to
prospective students of private postsecondary and vocational
educational institutions.
   (3) The operations monitor shall exercise no authority over the
bureau's management or staff; however, the bureau and its staff shall
cooperate with him or her, and shall provide data, information, and
files as requested by the monitor to perform all of his or her
duties.
   (4) The director shall assist the operations monitor in the
performance of his or her duties, and the operations monitor shall
have the same investigative authority as the director.
   (d) The operations monitor shall submit an initial written report
of his or her findings and conclusions to the director, the bureau,
and the Legislature no later than October 1, 2005, and every six
months thereafter, and shall be available to make oral reports to
each if requested to do so.  The operations monitor may also provide
additional information to either the department or the Legislature at
his or her discretion or at the request of either the department or
the Legislature.  The operations monitor shall make his or her
reports available to the public and the media.  The operations
monitor shall make every effort to provide the department and the
bureau with an opportunity to reply to any facts, finding, issues, or
conclusions in his or her reports with which the department or the
bureau may disagree.
   (e) The bureau shall reimburse the department for all of the costs
associated with the employment of an operations manager.
   (f) This section shall become inoperative on April 1, 2006, and,
as of January 1, 2007, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2007, deletes or
extends the dates on which it becomes inoperative and is repealed.
94779.3.  (a) The bureau shall establish an expanded outreach
program for prospective and current private postsecondary and
vocational education students and high school students, to provide
them with information on how best to select postsecondary or
vocational schools, how to enter into contracts and student
enrollment agreements, how to protect themselves in the postsecondary
and vocational education marketplace, and how to contact the bureau
for assistance if problems arise.
   (b) Notwithstanding subdivision (a), the bureau may not establish
an expanded outreach program pursuant to that subdivision until the
occurrence of the following events:
   (1) The bureau reports to the Director of Consumer Affairs and to
the Joint Committee on Boards, Commissions, and Consumer Protection
on its fee structure and revenues pursuant to subdivision (b) of
Section 94779.1.
   (2) The Director of Consumer Affairs makes findings after
submittal of that report that the bureau has sufficient revenues to
meet its current obligations and that the cost of an outreach program
will not further jeopardize the bureau's ability to meet those
obligations.
   (3) The director reports those findings to the committee.
94779.4.  The bureau shall report to the Legislature, no later than
October 1, 2003, on its progress in accomplishing the corrective
actions necessary to resolve the deficiencies found in the audit
performed by the department's Internal Audit Office, and any
remaining deficiencies found in the 2000 audit by the Bureau of State
Audits.  In particular, the bureau shall report on the status and
timeliness of its complaint and enforcement, and application and
renewal processes and procedures, the condition of the Student
Tuition Recovery Fund and the status of any claims thereon, the
status and timeliness of its various approval or registration
processes, the status and capabilities of its data processing and
dissemination system, its outreach efforts to current and prospective
private postsecondary and vocational education students, and any
recommendations for improvement to its operations, including any
recommendations regarding revisions to this chapter.