Private postsecondary education.

The federal Higher Education Act of 1965 prohibits, as a condition of participating in federal student aid programs, a for-profit private postsecondary educational institution from deriving less than 10 percent of its revenues for each fiscal year from sources other than federal financial assistance, as defined. Under the federal act, if an institution fails to comply with the requirement for 2 consecutive fiscal years, it loses its eligibility to participate in federal financial assistance programs for at least two fiscal years. The California Private Postsecondary Education Act of 2009 provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. This bill would prohibit private postsecondary educational institutions, commencing with the 2023–24 academic year, from enrolling California residents if, pursuant to that federal law, for the previous 2 consecutive fiscal years or 2 out of the previous 3 fiscal years it derived less than 10 percent of its revenues from sources other than federal financial assistance.