Private postsecondary education: California Private Postsecondary Education Act of 2009.

Existing law establishes the California Private Postsecondary Education Act of 2009, which, among other things, provides for student protections and regulatory oversight of private postsecondary schools in the state. The act prohibits certain types of conduct by regulated institutions, including offering to compensate a student to act as an agent of the institution for the purposes of enrollment or recruitment of students, except as specified, and compensating an employee involved in recruitment and enrollment on the basis of commission, quota, bonus, or a similar method, also with exceptions. This bill would define financial aid for the purposes of the act. The bill would prohibit an institution from providing, directly or indirectly, certain financial incentives to any person, including a student, engaged in student recruitment or admission activities, engaged in awarding financial aid directly to a student, or engaged in the sales of any educational materials directly to a student, if that financial incentive is contingent upon quotas or the success of securing enrollments, admissions, awarding financial aid to a student, or sales of educational materials directly to a student.