Nonprofit corporations: private postsecondary educational institutions: sale of assets: Attorney General approval.

Existing law, the Nonprofit Public Benefit Corporation Law, establishes the requirements for the formation and operation of a nonprofit public benefit corporation and provides that a corporation is subject at all times to examination by the Attorney General. Existing law generally requires a corporation to give written notice to the Attorney General before it sells, leases, conveys, exchanges, transfers, or disposes of its assets, except as specified. Existing law provides specific procedures for health facilities and additionally requires these facilities to obtain the consent of the Attorney General prior to entering into a specified agreement or transaction. This bill would require a nonprofit corporation that operates or controls a private postsecondary educational institution to obtain the Attorney General's consent before entering into certain agreements or transactions, including an agreement or transaction to sell or convey its assets to, or to transfer control, responsibility, or governance of a material amount of its assets to, a for-profit corporation or mutual benefit corporation. The bill would require the Attorney General to consider specified factors in consenting to, giving conditional consent to, or not consenting to, the agreement or transaction, and would authorize the Attorney General to contract with experts, consultants, and state agencies, including the Bureau for Postsecondary Education, to receive advice in reviewing the agreement or transactions that are subject to the above-specified provisions. The bill would authorize the Attorney General, as a condition of approving the agreement or transaction, to transfer assets from the proceeds of the sale or transaction to the Student Tuition Recovery Fund, a continuously appropriated fund. By authorizing the deposit of additional moneys into a continuously appropriated fund, the bill would make an appropriation.