2005 California Education Code Sections 94915-94930 Nondegree-Granting Institutions

94915.  (a) No private postsecondary educational institution, except
those offering degrees and approved under Article 8 (commencing with
Section 94900) or those registered under Article 9.5 (commencing
with Section 94931), may offer educational services or programs
unless the institution or locations at which these services or
programs are offered have been approved by the council as meeting the
requirements of this section.  In addition, if the institution is
regulated by any other state licensing agency, the institution shall
have obtained and retained the approval of that agency.
   (b) If an institution is operating under the council's prior
approval and the institution has applied for approval to operate for
itself or a branch or satellite campus that is operating, the council
shall not grant approval to operate until the council has conducted
a qualitative review and assessment of the operations of the
institution in California and determined that all of the following
minimum standards have been satisfied.
   (1) The quality and content of each course or program of
instruction, training, or study may reasonably and adequately be
expected to achieve the objective for which the course or program is
offered.  Except for continuing education programs and programs that
are exclusively avocational or recreational in nature, all programs
offered by the institution shall meet the minimum standards
prescribed by this subdivision.  If an institution represents that a
course or program leads to employment, the quality, content, and
instruction of the course or program shall be sufficient to ensure
that students may acquire the necessary level of education, training,
skill, and experience to obtain employment in the occupation or job
title to which the course or program of instruction is represented to
lead.
   (2) The institution has adequate space, equipment, instructional
material, and instructor personnel to provide training of the quality
needed to attain the objective described in paragraph (1).
   (3) Every instructor and administrator possesses adequate
academic, experiential, and professional qualifications to teach the
course or to perform the duties that the person is assigned,
satisfies all standards established by the council by regulation, and
holds an applicable and valid certificate of authorization for
service issued by the council in the specified competence area in
which the individual will serve.  No person shall serve as an
instructor or member of the administrative staff if that person has
been convicted of, or has pled nolo contendere or guilty to, a crime
involving the acquisition, use, or expenditure of federal or state
funds, or who has been judicially or administratively determined to
have committed any violation of this chapter or of any law involving
state or federal funds.
   (4) The institution maintains for at least five years written
records of each student's previous education and training, where
applicable.
   (5) A copy of the course outline, description of the occupations
or job titles, if any, to which the course of instruction is
represented to lead, schedule of tuition, fees, and other charges,
refund policy, regulations pertaining to tardiness, absences, and the
grading policy, and rules of operation and conduct is given to
students prior to enrollment.
   (6) The institution maintains and enforces adequate standards
relating to, and maintains records of, attendance, satisfactory
academic progress, and student performance to achieve the objective
described in paragraph (1).
   (7) The institution complies with all local city, county,
municipal, state, and federal regulations relative to the safety and
health of all persons upon the premises such as fire, building, and
sanitation codes.  The council may require evidence of compliance.
   (8) The institution does not exceed enrollment that the facilities
and equipment of the institution can reasonably handle.
   (9) The institution's officers, directors, and owners demonstrate
financial and fiduciary responsibility, as prescribed by statute, or
by regulations adopted by the council.
   (10) The institution is in compliance with this chapter and has
developed policies and procedures designed to ensure that compliance.
   (11) No circumstances exist that may constitute grounds for the
revocation or suspension of an approval to operate.
   (12) The institution complies with Article 7 (commencing with
Section 94850) if that article is applicable to any educational
program it offers.
   (13) Application for approval shall be made in writing on forms
prescribed by the council.  The application for approval shall
include, if applicable to the institution, a statement of whether the
institution claims that it is exempt or that a course or other
educational service it offers is exempt from Article 7 (commencing
with Section 94850), and the information required by subdivision (f)
of Section 94873.
   An institution may include some, or all, of its separate operating
sites under one application.  Alternately, it may submit separate
applications for any one site or combination of sites.  The
satellites or branches included in either an initial or renewal
application shall be considered by the council to comprise a
separate, single institution for purposes of regulation, approval,
and compliance under this chapter.  The application shall include a
single fee based on the number of branches, satellites, and programs
included within a single application in order to cover the costs
involved for those multisite and multiprogram reviews.
   (c) Within 90 days following the receipt of an application from an
institution and prior to granting any approval, a representative of
the council shall personally inspect the institution and verify the
institution's compliance with the standards prescribed by this
chapter.  The council may use a qualified visiting committee in the
initial review of programs and in subsequent reviews.  The visiting
committee may include employers with expertise related to the program
being reviewed.  The institution seeking approval shall reimburse
the council for the expenses of the visiting committee.  The onsite
inspection shall include an inspection of the institution's
facilities and records, interviews of administrators, faculty, and
students, and an observation of class instruction, as determined to
be appropriate by the council.
   (1) If the application for approval includes branch or satellite
campuses, the council shall inspect each branch campus and may
inspect any satellite campus.
   (2) If the application is for approval to operate a branch or a
satellite, the council, in addition to inspecting the branch or
satellite, also may inspect the institution operating the branch or
satellite campus.
   (3) The council may waive or modify the requirement for onsite
inspections of branch campuses located outside of California or for
an institution offering home study or correspondence courses.
   (4) If the application is for reapproval of an existing approval,
the institution need only submit information necessary to document
any changes made since the time its previous application was filed
with the council.  Fees for reapproval applications shall be based on
the actual costs involved in the administrative review process.
   (d) The council shall review all operations of the institution
both within and outside of California.  The council may conduct site
visits outside of California, including the institution's foreign
operations, when the council deems these visits to be necessary.  The
institution shall be responsible for the expenses of any visiting
team members including the council's staff liaison.
   (e) Within 90 days following the inspection described in
subdivision (c) or any reasonable extension of time not to exceed 90
days, the council shall reach a decision on the merits and shall do
one of the following:
   (1) If the institution is in compliance with this chapter and has
not operated within three years before the filing of the application
in violation of this chapter then in effect, the council may grant
approval for a period not to exceed four years.
   (2) If the institution is in compliance with this chapter, but has
operated within three years before the filing of the application in
violation of this chapter then in effect, or if the council
determines that an unconditional grant of approval to operate is not
in the public interest, the council may grant a conditional approval
to operate subject to whatever restrictions the council deems
appropriate.  The council shall notify the institution of the
restrictions, the basis for the restrictions, and the right to
request a hearing to contest the restrictions.
   (3) The council may deny the application if the institution does
not comply with this chapter, including the minimum standards
established in subdivision (b), or has operated within three years
before the filing of the application in violation of this chapter
then in effect.  If the application is denied, the council may permit
the institution to continue offering the course or courses of
instruction to students already enrolled or may order the institution
to cease all instruction and provide a refund of tuition and all
other charges to students.  The council shall notify the institution
of the denial, the basis for the denial, and the right of the
institution to request a hearing to contest the denial.
   (f) (1) If an institution is not operating in California when it
applies for approval to operate for itself or a branch or satellite
campus, the institution shall file with its application an
operational plan establishing that the institution will satisfy the
minimum standards set forth in subdivision (b).  The operational plan
also shall include a detailed description of the institution's
program for implementing the operational plan, including proposed
procedures, financial resources, and the qualifications of owners,
directors, officers, and administrators employed at the time of the
application's filing.  The council may request additional information
to enable the council to determine whether the operational plan and
its proposed implementation will satisfy these minimum standards.
   (2) If the council determines that the operational plan satisfies
the minimum standards described in subdivision (b), that the
institution demonstrates that it will implement the plan, and that no
ground for denial of the application exists, the council shall grant
a temporary approval to operate, subject to any restrictions the
council reasonably deems necessary to ensure compliance with this
chapter, pending a qualitative review and assessment as provided in
subdivisions (b) and (c).  The council shall inspect the institution,
or branch or satellite campus if approval is sought for that campus,
between 90 days and 180 days after operation has begun under the
temporary approval to operate.  Within 90 days following the council'
s inspection of the institution, the council shall act as provided in
subdivision (e).
   (g) If an institution approved to operate in California applies
for approval to operate an additional site location that has not been
previously approved by the council, the institution shall file an
operational plan for the additional site location as described in
subdivision (f).  The council shall evaluate the additional site
location as provided in subdivision (f).  The council also may
evaluate the institution as provided in subdivisions (b) and (c)
before determining whether to grant to the institution temporary or
final approval to operate the additional site location.  If the
institution or the additional site location does not meet the
requirements of this chapter or if the institution has operated
within three years before the filing of the application in violation
of this chapter then in effect, the council may deny the application
for approval to operate the additional site location or may grant a
conditional approval to operate the additional site location subject
to any restrictions it deems appropriate.  The provisions for notice
and hearing described in paragraphs (2) and (3) of subdivision (e)
shall apply.
   (h) No institution shall offer a course or program of instruction,
training, or study at a campus that had not offered the course or
program at the time the institution applied for approval to operate
that campus unless the council first approves the offering of the
course or program after determining that it satisfies the minimum
standards established in subdivision (b).
   (i) The council may enter into an agreement for the regulation and
oversight of nondegree-granting private postsecondary institutions
with the Federal Aviation Administration or with the state agency
responsible for administering Article 1 (commencing with Section
1250) of Chapter 2 of Division 2 of the Health and Safety Code.
   The council may enter into a regulatory agreement only when the
appropriate agency can demonstrate that its standards and procedures
for the review of institutions encompass the standards and consumer
protection requirements prescribed by this chapter and that these
standards and procedures are rigorously enforced.  Nothing in this
section shall modify the existing authority of regulatory agencies
within the Department of Consumer Affairs relating to schools or
programs.
   (j) If at any time the council determines that an institution has
deviated from the standards for approval, the council, after giving
the institution due notice and an opportunity to be heard, may place
the institution on probation for a specified period of time not to
exceed 24 calendar months.  During the period of probation, the
institution shall be subject to special monitoring.  The conditions
for probation may include the required submission of periodic
reports, as prescribed by the council, and special visits by
authorized representatives of the council to determine progress
toward total compliance.  If at the end of the specified probationary
period, the institution has not taken steps to eliminate the causes
for its probation to the satisfaction of the council, the council may
revoke the institution's approval and provide notice to the
institution to cease its operations.
94920.  (a) Each individual submitting an application for a
certificate of authorization for service, pursuant to paragraph (3)
of subdivision (b) of Section 94915, shall provide the council with
the following information:
   (1) A completed application as supplied by the council.
   (2) Certified copies of educational transcripts, where applicable.
   (3) Verified employment history.
   (4) Other documentation of prior experience or education as
required by the council for verification.
   (b) To be eligible for a certificate of authorization for service,
the applicant shall fulfill the following requirements:
   (1) Instructors shall have all of the following qualifications:
   (A) No record of any violations of this chapter.
   (B) Verification that he or she possesses a combination of at
least three years' experience and training or education in the
occupation or job title category for which the certification is
sought.
   (C) An instructor for a program that leads to a degree shall
possess a degree of equal or higher level in the occupation for which
certification is sought.
   (2) Directors shall have both of the following qualifications:
   (A) Three years' experience in an administrative position in a
public or an approved private postsecondary school.
   (B) No record of any violations of this chapter.
   (3) Associate directors shall have both of the following
qualifications:
   (A) Two years' experience in an administrative or other
responsible position in a public or state approved private
postsecondary school.
   (B) No record of any violations of this chapter.
   (4) Financial aid directors shall have all of the following
qualifications:
   (A) Five years' experience in an administrative position in the
financial aid office of a public or approved private postsecondary
school.
   (B) Verification of completion within the previous two years of a
training seminar or workshop certified by the Student Aid Commission
as providing up-to-date comprehensive information on financial aid
programs and policies.
   (C) No record of any violations of this chapter.
   (D) Any other requirements the council deems necessary.
   (5) Financial aid officers shall possess all of the following
qualifications:
   (A) Verification of completion within the previous two years of a
training seminar or workshop certified by the Student Aid Commission
as providing up-to-date comprehensive information on financial aid
programs and policies.
   (B) No record of any violations of this chapter.
   (C) Other requirements the council deems necessary.
   (c) An individual who is the sole owner of an institution may
serve in the capacity of director for three years prior to meeting
the qualifications of subparagraph (A) of paragraph (2) of
subdivision (b).
   (d) Any individual filling a position left vacant by a previously
certified financial aid director or financial aid officer shall
verify with the council completion of the training referred to in
subparagraph (A) of paragraph (5) of subdivision (b) within one year
of accepting that position.
   (e) Each individual certified for authorization for service in the
positions listed in paragraphs (1), (4), and (5) of subdivision (b)
shall maintain at each private postsecondary educational institution
where he or she is employed a validated transcript evidencing the
successful completion of three continuing education units of
recognized in-service training in their education, job title
category, or employment field during every period of certification.
These units may be completed through in-service training offered by
accrediting associations, professional organizations, or
council-approved programs.
   (f) Every certificate of authorization issued to a person who
possesses the qualifications described in paragraphs (1), (4), and
(5) of subdivision (b) shall be valid for a period of three years.
   (g) In addition to the requirements set forth in this section, the
council may impose additional requirements by regulation.
94925.  No person shall own or operate a school, or give
instruction, for the driving of motortrucks of three or more axles
that are more than 6,000 pounds unladen weight unless all of the
following conditions are met:
   (a) The school or instruction has been approved by the council.
   (b) The school, at the time of application and thereafter,
maintains both of the following:
   (1) Proof of compliance with liability insurance requirements that
are the same as those established by the Department of Motor
Vehicles for a driving school owner, pursuant to Section 11103 of the
Vehicle Code, unless the council deems it necessary to establish a
higher level of insurance coverage.
   (2) A satisfactory safety rating by the Department of the
California Highway Patrol is established pursuant to Division 14.8
(commencing with Section 34500) of the Vehicle Code.
   (c) The school, at all times, shall maintain the vehicles used in
driver training in safe mechanical condition.  The school shall keep
all records concerning the maintenance of the vehicles.
   (d) The driving instructors meet the requirements set forth in
Section 11104 of the Vehicle Code.
   (e) Any other terms and conditions required by the council to
protect the public safety or to meet the requirements of this
chapter.
94930.  (a) All institutions that were certified to offer flight
instruction by the Federal Aviation Administration (FAA) and that
operated in California on December 31, 1990, pursuant to prior
authority of subdivision (a) or (b) of former Section 94311, shall
receive approval from the council for a period not to exceed three
years.  On or before June 30, 1999, the council shall work in
cooperation with the FAA to review each of these institutions to
determine whether the institution is in compliance with the
requirements of this chapter.  It is the intent of the Legislature
that all institutions whose cumulative gross student loan default
rate is above 40 percent, as determined by the Student Aid
Commission, shall be reviewed by the FAA and the council to determine
if these institutions are in compliance with the requirements of
this chapter and should continue to be approved to offer educational
programs in California.  It is further the intent of the Legislature
that the bureau develop a memorandum of understanding with the FAA to
delineate the responsibilities of each agency for the approval and
monitoring of these institutions that were operating on December 31,
1990, under the prior authority of subdivision (a) or (b) of former
Section 94311.
   (b) Institutions certified to offer flight instruction by the FAA,
or its successor agency, shall comply with all of the requirements
of Sections 94800, 94810, 94814, and 94816, Sections 94820 to 94826,
inclusive, and Sections 94828 and 94829 and Article 7 (commencing
with Section 94850) if applicable, but shall not be required to file
any materials with the council that are not required by the FAA or
its successor agency, except those minimally necessary to administer
the Student Tuition Recovery Fund as determined by the council.  The
responsibility for monitoring and enforcing institutional compliance
for these institutions shall be with the council.
   (c) This chapter does not apply to individual flight instructors
not requiring any advance payments, who do not negotiate a formal
contract of indebtedness, and who do not have an established place of
business other than their residences.