California Bureau for Private Postsecondary Education

Published on SHEEO STATE AUTHORIZATION SURVEY RESULTS (http://sheeo.org/sheeo_surveys) Home > California Bureau for Private Postsecondary Education California Bureau for Private Postsecondary Education Vertical Tabs 1. Agency and Contact Information 1A1. Agency Name: California Bureau for Private Postsecondary Education 1A2. Agency Description - Please review the description below and revise as appropriate (e.g., state executive agency, agency with appointed board, department or division within agency, etc.): Under the direction of the Chief the Bureau for Private Postsecondary Education (Bureau) provides oversight and regulation of private postsecondary educational institutions operating in California. The Bureau Chief is appointed by the California Governor, with confirmation required from the State Senate. The Bureau, which is housed within the Department of Consumer Affairs, has the primary responsibility of protecting the public interest through effective and efficient administration and enforcement of the Private Postsecondary Education Act of 2009. 1A3. Agency Contact - Please review and correct as necessary the contact information below: Leeza Rifredi, Deputy Bureau Chief Bureau for Private Postsecondary Education 916-431-6959 1A4. Who should institutions contact if they have questions about your agency s authority, policies, or application process: Mailing Address: Bureau for Private Postsecondary Education P.O. Box 980818 West Sacramento, CA 95798-0818

Physical Address: Bureau for Private Postsecondary Education 2535 Capitol Oaks Drive, Suite 400 Sacramento California, 95833 Phone Numbers: Phone: (916) 431-6959 Toll Free: (888) 370-7589 Main Fax: (916) 263-1897 Licensing Fax: (916) 263-1894 Enforcement/STRF/Closed Schools Fax: (916) 263-1896 E-mail Addresses: General E-mail: bppe@dca.ca.gov [1] Licensing E-mail: bppe.licensing@dca.ca.gov [2] Enforcement E-mail: bppe.enforcement@dca.ca.gov [3] Student Tuition Recovery Fund/Closed Schools E-mail: bppe.strfclosedschool@dca.ca.gov [4] Annual Fee E-mail: bppe.annualfee@dca.ca.gov [5] Student Transcripts or Student Records - For information on obtaining student transcripts, student records or to speak with the Student Transcripts/Student Records staff member, please call (888) 370-7589, press 2 when prompted. Enforcement Unit - To file a complaint against a school or to speak with an Enforcement Unit staff member, please call (888) 370-7589, press 3 when prompted. Enforcement Chief - Yvette Johnson Licensing Unit - For information and questions about application processing and status or if you would like to speak with a Licensing Unit staff member, please call (888) 370-7589, press 4 when prompted. Licensing Manager - Leeza Rifredi Student Tuition Recovery Fund and Closed Schools Unit - To obtain information on the Student Tuition Recovery Fund or Closed Schools, please call (888) 370-7589, press 5 when prompted. General information - To obtain general information about the Bureau for Private Postsecondary Education or to check a school's approval status, please call (888) 370-7589, press 0 when prompted.

1B. Links - Please provide web links to your agency home page, the regulations pertaining to authorization, and any other links important for understanding your agency s responsibility for authorization: Website [6] Regulations [7] 1C1. Other Agencies - According to our records, the following agencies also have responsibility for authorization in the state. Please correct, add to, or clarify this list of authorizing authorities as necessary. These agencies will also be requested to complete this survey: California Community College Chancellor s Office California State University Chancellor s Office University of California Office of the President 2. Types of Educational Providers Authorized 2A1. Institution Types Authorized - Indicate the types of institutions that your agency authorizes. Feel free to provide a short explanation of any ambiguity: Private, in state, not for profit degree granting institutions Private, out of state, not for profit degree granting institutions Private, in state, for profit degree granting institutions Private, out of state, for profit degree granting institutions Non-degree, not for-profit institutions Non-degree, for profit institutions Religious Institutions 2A2. Clarifying comments: Unless exempt, a person shall not open, conduct, or do business as a private postsecondary educational institution in this state without obtaining an approval to operate from the Bureau. The definition for private postsecondary educational institution is contained in California Education Code (CEC) 94858. Exemptions are contained in CEC 94874 and 94874.1. 2B1. Multiple Agencies - Is an institution required to obtain approval from more than one agency to be authorized in your state (excluding purely programmatic approvals): Yes 2B2. If so, please explain: Institutions offering programs leading to a field that requires licensure in this state are also required to have approval from the relevant licensing entity. 2C1. Accreditation - Is accreditation required for an institution to be authorized in your state: No 2D1. Does your agency authorize specific academic programs offered by institutions, only institutions themselves, or both: Institutions Only 2E6a. Others (please list): Yes 2E6b. Name and Contact Information: Numerous educational programs require approval from a separate licensing entity. Those licensing

entities can be found on the Department of Consumer Affairs website. http://www.dca.ca.gov/about_dca/entities.shtml [8] 2E6c. URL: Department of Consumer Affairs [8] 3. Exemptions 3A1. General Exemptions - Are certain institutions or programs exempt by law or policy from your state authorization requirements: Yes 3A2. If yes, to which institutions or programs does the exemption apply? How does it work (please describe)? If available, please provide any pertinent web links: Exemptions are contained in CEC 94874 and 94874.5. 3A3. If yes, how does the institution or program claim an exemption? For example, is the exemption automatic as long as it meets specified criteria, does the institution or program notify the agency and the exemption is granted, is there an application process, etc.: An exempt institution is not required to obtain proof of exemption, but can obtain proof of exemption through an application process: http://www.bppe.ca.gov/forms_pubs/verification_exempt.pdf [9] 3B. Other Requirements - If an institution or program is exempt from state authorization, are there any other state requirements that an institution would need to fulfill in order to operate in your state (e.g., providing contact information, list of programs, etc.): An institution that is exempt from the Bureau may still be required to obtain approval from a licensing board or other governmental agency, depending on the institution and its program offerings. 3C1. Religious Institutions - Does your state constitution or do your state laws provide any exemptions for religious institutions: No 4. Authorization of Distance Education 4A1. Does your agency require purely (100%) distance education programs, including online or correspondence study programs that enroll residents of your state, to be authorized without regard to physical presence: No 4A2. Clarifying Comments: Only institutions with a physical presence in the State of California are eligible for Bureau regulation and oversight. The physical presence could be the corporate offices of an institution conducting 100% online education. 4B1. If not, does your agency determine whether an institution must be authorized based on a physical presence ( operating ) standard: Yes 4B2. Clarifying comments:

See above. Questions regarding whether an institution s activities within California constitute a physical presence should be directed to the Licensing unit. 5. Physical Presence Policy Common Triggers 5A. If your agency uses a physical presence standard, how does your agency define physical presence? If available, please provide a link to that policy or a citation to the relevant regulation giving that standard: The Bureau does not have a definition of physical presence Questions regarding whether specific activities constitute a physical presence can be forwarded to the Bureau s Licensing Unit or the Bureau Chief. INSTRUCTIONAL ACTIVITIES PROPERTY IN THE STATE RECRUITING ACTIVITIES THIRD PARTY AGREEMENTS/CONTRACTS ADVERTISING EMPLOYMENT IN THE STATE OTHER 6. Application Process 6A. Description Please provide a short description of the application process to obtain state authorization. If available, please provide web links to the specific references to all applicable state laws, regulations, manuals, forms, or other pertinent documents: http://www.bppe.ca.gov/applications/index.shtml [10] 6B. Processing Time Generally, how long does it take to approve applications (assuming that the agency has received all required information from the institution)? Please provide a typical range if appropriate: The timeline for processing an application is dependent on several factors including whether the application is complete when submitted to the Bureau. 6C. Duration What is the authorization duration: 5 years 6D. Maintenance What does an institution need to do to maintain authorization: Institutions must maintain compliance with all applicable laws and regulations including submitting appropriate renewal applications. 6E. Reporting What kinds of information or data must an institution report to your agency as a condition for continued authorization? How frequently is this reported or updated? Is this information published or shared publicly: In addition to the Annual Reporting requirements contained in CEC 94834 and 5 C.C.R. 74110, institutions are required to provide data/information to the Bureau upon request and during periodic compliance inspections and investigations.

6F. Loss of Status Can an institution lose its authorized status? If so, how?: Yes, for violations of the statutes and regulations. 6Ga. Multi-Institutional Systems Can a multi-institutional system or college corporation apply to your agency for authorization on behalf of all of its component institutions? If so, please describe the process: Yes, depending on how the system is structured and/or accredited. Questions should be directed to the Licensing Unit. Accredited institutions should review: http://www.bppe.ca.gov/schools/accredited_institutions.shtml [11] 6Gb. Would multi-institution public systems be treated the same as multi-location for-profit institutions: Public institutions are not regulated by the Bureau. 6H. Distinctive Features What distinctive features in your authorization process would be useful for applicants to know (e.g., certain times during the year that you process applications for authorization, sharing of applications or information about proposed programs with institutions or other stakeholders in your state for comment): Institutions should review applicable laws and regulations: http://www.bppe.ca.gov/lawsregs/index.shtml [12] 7. Fees Associated with Authorization 7A. Application Fee - Is there an application fee to initiate the authorization process? If so, what is the fee or fee schedule? Please provide a web link if available: Fees are outlined in CEC 94930.5 and 5 C.C.R. 74000-74006. http://www.bppe.ca.gov/applications/index.shtml [10] 7B. Other Costs - Are there any other costs associated with the state authorization process (e.g. site visits, hiring a reviewer, surety bond, tuition recovery fund, agent licensing, etc.): There may be additional costs associated with the institution seeking approval and maintaining compliance. Failure to comply with applicable laws and regulations may result in enforcement actions with related penalties. Article 18 of the Private Postsecondary Education Act of 2009 outlines enforcement provisions and penalties. 7C. Renewal Costs - What are the costs, if any, to renew authorization: Fees are outlined in CEC 94930.5 and 5 C.C.R. 74000-74006. http://www.bppe.ca.gov/forms_pubs/approval_accredited.pdf [13] 7D. Exemption Costs - What costs are associated with receiving a waiver or exemption to authorization:

http://www.bppe.ca.gov/forms_pubs/verification_exempt.pdf [9] 8. Interstate Reciprocity 8A. Do your state regulations explicitly allow or prohibit interstate reciprocal agreements about authorization? If so, please describe: Reciprocal agreements are not discussed in the Bureau s authorizing statute. 8B. What is the process, if any, to obtain a reciprocal agreement with your state: Please contact the Bureau Chief to discuss reciprocal agreements. 8C. Are there any reciprocal agreements currently in place or under consideration? If so, please list those agreements: No. 8D. If interstate reciprocal agreements are not addressed in your regulations, would your agency consider establishing such agreements? Please elaborate: The Bureau is open to discussing reciprocal agreements. 9. Consumer Protection and Student Complaints 9A1. Does your agency have a process for handling complaints about postsecondary institutions or programs:: Yes 9A2. If yes, please describe the process or provide a web link to the material that describes the complaint process: http://www.bppe.ca.gov/enforcement/complaint.shtml [14] 9A3a. If yes, does this complaint process extend to institutions not authorized by the agency that may enroll residents of the state (such as explicitly distance education programs with no physical presence or exempt institutions): No 9A4. If available, please provide a web link to the complaint form: Compaint Form [15] 9B. Who is the contact person for receiving complaints? Please include name, title, address, phone, and email if available: Bureau for Private Postsecondary Education 2535 Capitol Oaks Drive, Suite 400 Sacramento, CA 95833 Telephone: (916) 431-6924 FAX: (916) 263-1897

10. Enforcement 10A. If your agency finds that an institution or program is operating in your state without authorization, what is the resulting warning or enforcement action: California Education Code 94944 outlines the fine for unlicensed activity. 10B. Can an institution or program appeal a warning or enforcement action? If yes, please describe the process or provide web links to the regulations/policies: Yes. Please see the California Education Code, Title 3, Division 10, Part 59, Chapter 8 and 5 C.C.R. 12. Other 12A. Is there anything else about the authorization process in your state that we and others ought to know about: The information below is from Cooley LLP: California recently enacted a new law that will significantly alter the regulation of many in-state and out-of-state postsecondary institutions. The new law will have an immediate impact on a number of issues, and it signals that further regulation is likely in the near future. Background The amended statute, which was signed into law by California Governor Jerry Brown on September 29, 2014, was necessary to reauthorize the Bureau for Private Postsecondary Education ( BPPE ). Authorization of BPPE, which is is responsible for oversight of most non- public, postsecondary education in California, was set to expire on January 1, 2015. The California legislature was unlikely to let BPPE dissolve precisely because it happened once before, causing considerable confusion. When the prior law regulating private postsecondary education in California expired in 2006, it led to an oversight gap that remained until 2010 when the California Private Postsecondary Education Act of 2009 became effective. This lapse was one of the primary reasons for federal state authorization regulations (34 C.F.R. 600.9) promulgated by the U.S. Department of Education ( ED or the Department ) in 2010, which are still a source of controversy and confusion four years later. Significant Developments The bill signed into law last month reauthorizes BPPE until January 1, 2017 and also makes some significant changes. Most notably, the new law prevents for-profit institutions with a physical presence in California (and, on its face, many out-of-state non-profit and public institutions as well) that are receiving veterans education benefits, such as Post-9/11 GI Bill benefits, from being exempt from BPPE oversight. This limitation applies to the current exemptions available for regionally accredited institutions and will take effect on January 1, 2016. Accordingly, institutions with current exemptions in California may lose the benefit of their exempt status, with the exception of California-based public and non-profit private institutions. The bill also mandates that BPPE enhance its student complaint processing ability and directs the state

Attorney General s office to provide training on this issue. The bill does not extend BPPE s oversight over student complaints to exempt institutions; therefore, it does not clarify any of the prior confusion regarding whether exempt institutions satisfy ED s On-Ground state authorization rule (34 C.F.R. 600.9(a)). However, by effectively sunsetting exemptions based on accreditation for out-of-state and for-profit institutions, California has essentially changed its law to conform to the Department s desire to eliminate certain exemptions. The law also directs BPPE to amend its regulations and take other actions that could result in significant changes in the near future. For example, BPPE is directed to develop goals for the processing of applications to reduce the current backlog. BPPE is also directed to enhance its enforcement procedures to more aggressively target unauthorized institutions and other institutions seen as potential risks based on negative actions taken by ED, state attorney generals or other agencies, weak financial health, or other factors. The law does not appear to change the current physical presence triggers for distance education providers enrolling California students; however, since BPPE s physical presence standard is largely based on guidance and regulation and is not statutory in nature, such changes are possible as part of BPPE s anticipated regulatory amendments. (It would likely be difficult, however, for California to regulate purely online distance education programs without a further statutory change.) More Changes on the Horizon In addition to the immediate changes, the new law also sets the stage for significant prospective changes in the coming years. For example, BPPE is instructed to establish a task force by March 2015 to review standards for training programs geared toward computer science, programming, software development, and computer coding (commonly referred to as coding academies ). While the bill seems to recognize the critical importance of these programs (noting the shortage of skilled employees in these high-demand fields ), the task force does not appear to be geared toward reducing the regulatory burden on these schools. The task force is directed to provide a report to the legislature by July 2016. Some observers in the technology industry had hoped that the bill would exempt coding academies from BPPE oversight; however, the legislature did not do so. In fact, the changes in this new law actually appear to strengthen BPPE s claim to jurisdiction over such academies. While there were no further changes to the existing exemptions, except for the limitation on their availability as discussed above, note that the exemption for non-wasc regionally accredited schools is still scheduled to sunset in 2016. The similar exemption for WASC institutions does not sunset. The exemption for non-wasc institutions is the result of a federal court decision which mandated equal treatment of regional accrediting agencies under the U.S. Constitution. If the non-wasc exemption does in fact sunset, a further constitutional challenge is possible since it would mean a return to the same unequal treatment that the court determined was unconstitutional. The law also specifically directs BPPE to investigate and recommend further legislative changes. One important aspect of this statute is that it only reauthorizes BPPE for two additional years. In the original draft of the bill, the law would have reauthorized BPPE for four more years (until 2019). The original 2009 Act authorized BPPE for five years (2010-2015). The short re- authorization

period also suggests further changes are on the way. For Distance Education Providers, Not the Same California The changes in California law bring that jurisdiction closer to many states that are relatively burdensome for accredited institutions, such as Florida or Oregon. While authorization in California is achievable in a reasonable amount of time (unlike in New York or Maryland), California is no longer a state that most distance education providers can ignore from a regulatory perspective. The bottom line is this out of state institutions should use special care not to trigger physical presence in California unless they are prepared to accept a high degree of regulatory burden and expense. And, institutions should stay tuned as even more law and regulation appears to be on its way. If you have questions or would like additional information, please contact us at any time. cc: Michael Goldstein Jeannie Yockey-Fine Source URL: http://sheeo.org/sheeo_surveys/user/13 Links [1] mailto:bppe@dca.ca.gov [2] mailto:bppe.licensing@dca.ca.gov [3] mailto:bppe.enforcement@dca.ca.gov [4] mailto:bppe.strfclosedschool@dca.ca.gov [5] mailto:bppe.annualfee@dca.ca.gov [6] http://www.bppe.ca.gov/ [7] http://www.bppe.ca.gov/lawsregulations/ppe_act.shtml [8] http://www.dca.ca.gov/about_dca/entities.shtml [9] http://www.bppe.ca.gov/forms_pubs/verification_exempt.pdf [10] http://www.bppe.ca.gov/applications/index.shtml [11] http://www.bppe.ca.gov/schools/accredited_institutions.shtml [12] http://www.bppe.ca.gov/lawsregs/index.shtml [13] http://www.bppe.ca.gov/forms_pubs/approval_accredited.pdf [14] http://www.bppe.ca.gov/enforcement/complaint.shtml [15] http://www.bppe.ca.gov/forms_pubs/complaint.pdf