Postsecondary education: Student Tuition Recovery Fund.

The California Private Postsecondary Education Act of 2009 (the act) requires the Bureau for Private Postsecondary Education, by January 1, 2011, to adopt regulation procedures governing the administration and maintenance of the Student Tuition Recovery Fund, including requirements relating to assessments on students and student claims against the Student Tuition Recovery Fund. Existing law provides that an institution that is accredited by a regional accrediting agency that is recognized by the United States Department of Education, and is not an agency holding specified accreditation, is exempt from the provisions related to the act except for the Student Tuition Recovery Fund. This bill would provide that the bureau may revoke this exemption if it finds that an institution has failed to comply with the provisions related to the Student Tuition Recovery Fund. This bill would require the bureau to adopt, by regulation, requirements relating to assessments on students that are paid by an institution on behalf of the student. The regulations authorized by the bill would allow institutions to pay the assessments, as specified, and would require the paying institution to adequately inform students of their rights and responsibilities under the fund and would further institutions do not engage in inappropriate marketing or advertising, as specified.