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) To ensure that the bureau’s resources are maximized for the protection of the public, the bureau, in consultation with the advisory committee, shall establish priorities for its inspections and other investigative and enforcement resources to ensure that institutions representing the greatest threat of harm to the greatest number of students are identified and disciplined by the bureau or referred to the Attorney General.
(c) In developing its priorities for inspection, investigation, and enforcement regarding institutions, the bureau shall consider as posing heightened risks the characteristics of the following institutions:
(1) An institution that receives significant public resources, including an institution that receives more than 70 percent of its revenues from federal financial aid, state financial aid, financial aid for veterans, and other public student aid funds.
(2) An institution with a large number of students defaulting on their federal loans, including an institution with a three-year cohort default rate above 15.5 percent.
(3) An institution with reported placement rates, completion rates, or licensure rates in an educational program that are far higher or lower than comparable educational institutions or programs.
(4) An institution that experiences a dramatic increase in enrollment, recently expanded educational programs or campuses, or recently consolidated campuses.
(5) An institution that offers only nonremedial educational program courses in English, but enrolls students with limited or no English language proficiency.
(6) An institution that has experienced a recent change of ownership or control, or a change in the business organization of the institution.
(7) An institution with audited financial statements that do not satisfy the bureau’s requirements for financial stability.
(8) An institution that has recently been the subject of an investigation, judgment, or regulatory action by, or a settlement with, a governmental agency.
(9) An institution that experiences institutional or programmatic accreditation restriction by an accreditor, government restriction of, or injunction against, its approval to operate, or placement on cash-reimbursement or heightened monitoring status by the United States Department of Education.
(d) The bureau shall indicate in an annual report, to be made publicly available on its Internet Web site, the number of temporary restraining orders, interim suspension orders, and disciplinary actions taken by the bureau, disaggregated by each priority category established pursuant to subdivision (b).
(e) The bureau shall, in consultation with the advisory committee, adopt regulations to establish categories of complaints or cases that are to be handled on a priority basis. The priority complaints or cases shall include, but not be limited to, those alleging unlawful, unfair or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements, including all statements made or required to be made pursuant to the requirements of this chapter, related to any of the following:
(1) Degrees, educational programs, or internships offered, the appropriateness of available equipment for a program, or the qualifications or experience of instructors.
(2) Job placement, graduation, time to complete an educational program, or educational program or graduation requirements.
(3) Loan eligibility, terms, whether the loan is federal or private, or default or forbearance rates.
(4) Passage rates on licensing or certification examinations or whether an institution’s degrees or educational programs provide students with the necessary qualifications to take these exams and qualify for professional licenses or certifications.
(5) Cost of an educational program, including fees and other nontuition charges.
(6) Affiliation with or endorsement by any government agency, or by any organization or agency related to the Armed Forces, including, but not limited to, groups representing veterans.
(7) Terms of withdrawal and refunds from an institution.
(8) Payment of bonuses, commissions, or other incentives offered by an institution to its employees or contractors.
(Amended by Stats. 2014, Ch. 840, Sec. 35. (SB 1247) Effective January 1, 2015. Repealed as of January 1, 2027, pursuant to Section 94950.)
Structure California Code