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§ 71475. Renewal of an Approval to Operate for a Non-Accredited Institution; Cancellation of an...

5 CA ADC § 71475Barclays Official California Code of RegulationsEffective: April 1, 2023

Barclays California Code of Regulations
Title 5. Education
Division 7.5. Private Postsecondary Education
Chapter 2. Applications
Article 6. Renewals
Effective: April 1, 2023
5 CCR § 71475
§ 71475. Renewal of an Approval to Operate for a Non-Accredited Institution; Cancellation of an Approval to Operate.
Currentness
(a) Unless renewed, an approval to operate shall expire at 12 midnight on the last day of the institution's term of approval to operate as granted pursuant to section 94802 or section 94889 of the Code.
(b) An institution seeking to renew its Approval to Operate pursuant to section 94891 of the Code shall, prior to its expiration, complete and submit to the Bureau the “Application for Renewal of Approval to Operate and Offer Educations Programs for Non-Accredited Institutions,” Form Application 94891 (rev. 2/10).
(c) The application for renewal of approval to operate and offer educational programs for non-accredited institutions shall include all of the following:
(1) The name, institution/school code and website address of the institution.
(2) The physical address of the institution's primary administrative location in California.
(3) The mailing address, identified either by physical address or by post office box number, telephone number and fax number of the institution.
(4) The physical address, phone number and fax number of each campus and branch at which the educational programs will be offered, including the identification of the institution's main location and branch locations.
(5) The name, address, email address, telephone number, and fax number of an individual who will function as the institution's contact person for the purposes of the application.
(6) The form of business organization of the institution (e.g., sole proprietorship, general or limited partnership, for-profit corporation, nonprofit corporation, or Limited Liability Corporation). If the institution is incorporated, the institution shall also identify the state within which the institution is incorporated and the date of incorporation, and provide copies of the articles of incorporation and bylaws.
(7) The name, title, address, email address, telephone number, nature of interest and percentage of ownership of each person, as defined in section 94855 of the Code, who owns or controls 25% or more of the stock or an interest in the institution and, to the extent applicable, each general partner, officer, corporate director, member of the board of directors, and any other person who exercises substantial control over the institution's management or policies. For the purpose of this paragraph, a person exercises “substantial control over the institution's management or policies” if the person has the authority to cause the institution to expend money or incur debt in the amount of five thousand dollars ($5,000) or more in any year.
(A) For each address required, the institution shall provide a physical home address, and may request that the address, email address, and telephone number, of each person described in paragraph (7) be maintained as personal information.
(B) The federal employer identification number for partnerships or the social security number for individual owners identified in the application pursuant to section 71130(a)(1).
(d) In addition to the form required in (b), the institution shall submit all information required by section 71100(b), and the appropriate renewal fee as provided in Sections 94930.5(b)(1) and 94930.5(b)(2) of the Code, as applicable, to the Bureau. Except for the financial statements required by subdivision (e) of this section and the statement required in subdivision (f) of this section, if the information required in order to renew its approval to operate is substantially similar to the information submitted by the institution in its last renewal application, or initial application if it is the first renewal, the institution may state that there are no substantial changes.
(e) The institution shall submit at the time it applies for renewal current financial statements that meet the requirements of section 74115 as follows: (1) for an institution with annual gross revenues of $500,000 and over, statements shall be audited; (2) for an institution with annual gross revenues less than $500,000, statements shall be reviewed.
(f) The renewal application shall include a statement from any person identified in subdivision (h)(1) of this section who --
(1) Was found in any judicial or administrative proceeding to have violated the Act or the law of any other state related to untrue or misleading advertising, the solicitation of prospective students for enrollment in an educational service, or the operation of a postsecondary school;
(2) Was denied any type of license on grounds set forth in Section 480 of the Business and Professions Code;
(3) Was adjudicated as responsible for the closure of an institution in which there were unpaid liabilities to the state or federal government or any uncompensated pecuniary losses suffered by students;
(4) Has stipulated to a judgment or administrative order or entered a consent decree involving any of the matters described in this section.
(5) Was convicted of any misdemeanor or felony as provided in Section 480(a)(1) of the Business and Professions Code;
(g) The institution shall furnish in the application an explanation of any legal action pending against the institution or ownership or any of the institution's owners, officers, corporate directors, administrators, or instructors by any federal, state, or local law enforcement agency involving alleged acts of fraud, dishonesty, financial mismanagement, unpaid liabilities to any governmental agency or claims for pecuniary loss suffered by any student.
(h) The institution shall include in its application the name, title, physical address, telephone number, fax number, and e-mail address for the agent for service of process in California as required by section 94943.5 of the Code. The agent shall be at an address other than the address of the institution or any branch. The agent must confirm the information and acknowledge in writing that he or she is the designated agent for service of process. The information shall be kept current pursuant to section 74190.
(i) The institution shall include in its application an organization chart that shows the governance and administrative structure of the institution and the relationship between faculty and administrative positions. If there have been no substantive changes since the last submission of an organizational chart, the institution may so state and is not required to submit documentation.
(j) The institution shall provide in the application a description of the job duties and responsibilities of each administrative and faculty position. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(k) The institution shall identify in the application the chief executive officer, chief operating officer, and chief academic officer and describe their education, experience, and qualifications to perform their duties and responsibilities. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(l) If the institution has a governing board, the application shall include the name, work address, email address, and telephone number of each member of the governing board. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(m) The application shall contain the name, work address, email address, fax number and telephone number of the person with whom the Bureau will correspond and conduct legal transactions on behalf of the institution. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(n) The institution shall describe in the application, in detail its mission and objectives. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(o) The institution shall include, with its application, exemplars of all student enrollment agreements and instruments of indebtedness.
(p) If an institution receives financial aid because its students qualify for it under any state or federal financial aid program, the application shall include a statement of its policies, practices, and disclosures regarding financial aid. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(q) The institution shall include in its application copies of advertising and other statements disseminated to the public in any manner by the institution or its representatives that concern, describe, or represent each of the following:
(1) The institution.
(2) Each educational program offered by the institution.
(3) If advertising is broadcast by television or radio, the application shall also include a copy of the script.
(r) The institution shall identify and describe, in the application, the educational program it offers, or proposes to offer. If the educational program is a degree program, the institution shall identify the full title which it will place on each degree awarded. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(s) The application shall include, in addition to the general title, such as “Bachelor of Arts” or “Master of Science”, the name of a specific major field of learning involved. If there have been no substantive changes since the last submission, the institution may so state and is not required to submit documentation.
(t) In addition, the institution shall list in the application, the following for each educational program offered unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(1) The admissions requirements, including minimum levels of prior education, preparation, or training;
(2) If applicable, information regarding any ability-to-benefit examination required by the institution. For the purposes of this section an “ability-to-benefit examination” means an independently administered examination from the list of examinations prescribed by the United States Department of Education pursuant to Section 484(d) of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1070a et seq.) as it is, from time to time, amended, that is designed to help identify students who possess the basic skills necessary to succeed in a post-secondary education program, but who lack a high school diploma;
(3) The types and amount of general education required;
(4) The title of the educational programs and other components of instruction offered, including a description of the level of the courses (e.g., below college level, undergraduate level, graduate level);
(5) The mode of instruction;
(6) The graduation requirements.
(7) Whether the educational program is designed to fit or prepare students for employment in any occupation. If so, the application shall identify each occupation and job title to which the institution represents the educational program will lead.
(u) For each educational program that the institution offers or proposes to offer, the application shall contain a statement that the educational program meets the requirements of section 71710, as well as the following unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation:
(1) A description of the educational program.
(2) A description of the equipment to be used during the educational program.
(3) A description of the number and qualifications of the faculty needed to teach the educational program.
(4) A projection, and the bases for the projection, of the number of students that the institution plans to enroll in the educational program during each of the three years following the date the application was submitted.
(5) A description of the learning, skills, and other competencies to be acquired by students who complete the educational program.
(6) If licensure is a goal of an educational program, a copy of the approval from the appropriate licensing agency. A copy of the intent to approve conditioned solely upon institutional approval from the Bureau will also meet this requirement.
(7) Upon request, the institution shall provide to the Bureau copies of the curriculum or syllabi required pursuant to section 71710.
(v) If the institution offers an educational program, or a portion of it, in a language other than English, the application shall contain a description of all of the following for each educational program or portion thereof unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(1) The language in which each educational program will be offered.
(2) A statement that the institution has contracted with sufficient duly qualified faculty who will teach each language group of students.
(3) The language of the textbooks and other written materials to be used by each language group of students.
(w)(1) The application shall contain a statement that the institution has and can maintain the financial resources required pursuant to section 71745.
(2) The institution shall submit current, audited financial statements at the time it applies for approval to operate. Each set of financial statements shall comply with Section 74115 of this chapter.
(x) The application shall include a statement that the institution has contracted with sufficient duly qualified faculty members who meet the qualifications of section 71720 unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(y)(1) For each program offered, the application shall contain a description of the facilities and the equipment which is available for use by students at the main, branch, and satellite locations of the institution unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(2) For facilities that are leased or rented, the application shall contain the name and address of the lessor or landlord, together with a copy of any use, lease, or rental agreements for the facilities unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(3) The application shall include, in addition to the description of the physical facilities, building diagrams or campus maps to assist the Bureau in locating these facilities. The diagrams or maps shall identify the location of classrooms, laboratories, workshops, and libraries unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(4) The description in the application shall include specifications of significant equipment that demonstrate that the equipment meets the standards prescribed by the Code and this chapter and is sufficient to enable students to achieve the educational objectives of each education program unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(5) For each item of significant equipment, the description in the application shall indicate whether the equipment is owned, leased, rented, or licensed for short- or long-term, or owned by another and loaned to be used without charge unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(6) The application shall contain a list of all permits, certifications, or other evidence of inspections or authorizations to operate required by the jurisdictions within which the institution operates that the institution has obtained, and/or an explanation as to why those permits, certifications, or inspections have not yet been obtained unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(z) The application shall include a description of library holdings, services, and other learning resources, including policies and procedures for supplying them to students who do not receive classroom instruction. The description need not consist of a list of each holding. The description shall include an explanation of how the library and other learning resources are sufficient to support the instructional needs of students and, if no facilities exist at the institution, how and when students may obtain access to a library and other learning resources as required by the curriculum unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(aa) If an institution represents to the public, in any manner, that it offers job placement assistance, the application shall include a description of the job placement assistance that it provides unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(bb) The application shall include a copy of the institution's catalog, in published or proposed-to-be-published form. The catalog shall meet the requirements of the Act and of section 71810.
(cc) The institution shall submit with the application, a copy of the document that is awarded to a graduating student upon successful completion of each educational program unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(dd)(1) The application shall contain a description of how records required by Article 9 of the Act or this chapter are or will be organized and maintained, the types of documents contained in student files, how the records are stored, and whether academic and financial records are maintained in separate files. The description shall include a statement of the institution's procedures for security and safekeeping of records unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(2) The description in the application shall include the name, physical address, email address, and telephone number of the custodian of records, and the physical addresses and telephone numbers of the offices or buildings where the records will be maintained unless there have been no substantive changes since the last submission. If there have been no substantive changes made the institution may so state and is not required to provide documentation.
(ee) The application shall contain a description of the procedures used by the institution to assure that it is maintained and operated in compliance with the Act and this Division.
(ff)(1) The institution shall include in the application any material facts as defined by section 71340, which have not otherwise been disclosed in the application that might reasonably affect the Bureau's decision to grant an approval to operate. In this context, a fact would be “material” if it would change the Bureau's decision concerning the institution's ability to comply with any applicable provisions of the Act.
(2) The institution may also include in the application any other facts which the institution would like the Bureau to consider in deciding whether to grant an approval to operate.
(3) For the purposes of this section, a fact is “material” if, without its inclusion into the application, the information contained in the application would be false, misleading, or incomplete.
(gg) The institution demonstrates its continued capacity to meet the minimum operating standards by submitting the renewal application signed and dated, and each fact stated therein and each attachment thereto declared to be true under penalty of perjury, as follows:
(1) Signatories:
(A) Each owner of the institution, or
(B) If the institution is incorporated, the chief executive officer of the corporation and each person who owns or controls 25 percent or more of the stock or interest in the institution, or
(C) Each member of the governing body of a nonprofit corporation.
(2) The declaration shall be in the following form:
“I declare under penalty of perjury under the laws of the State of California that the foregoing and all attachments are true and correct.
 
 
(Date)
(Signature)”
(hh) In addition to the fees required by subdivision (d) of this section:
(1) An application for renewal that is received by the Bureau more than 30 days after the expiration of the approval to operate shall be submitted with the 25 percent late payment penalty fee required by section 94931(a) of the Code.
(2) An application for renewal that is received by the Bureau more than 90 days after the expiration of the approval to operate shall be submitted with the 35 percent late payment penalty fee required by section 94931(b) of the Code.
(ii) Provided that a complete renewal application is received by the Bureau prior to the expiration of the approval, a valid approval to operate shall continue until the Bureau has acted upon the renewal application.
(jj) An approval to operate that has expired may be renewed at any time within 6 months after its expiration on filing of an application for renewal and, as a condition precedent to renewal, payment of all accrued and unpaid renewal fees, late payment penalty fees prescribed in subdivision (e) of this section, and any other fees that would have been due in order to renew timely. After an approval to operate has expired for more than 6 months, the approval is automatically cancelled and the institution must submit a complete application pursuant to section 71100, meet all current requirements, and pay all fees that would have been due in order to timely renew, in order to apply for approval.
(kk) An incomplete application filed under this section will render the institution ineligible for renewal.

Credits

Note: Authority cited: Sections 94803 and 94891, Education Code. Reference: Sections 94802, 94889 and 94931, Education Code.
History
1. New section filed 8-17-92 as an emergency; operative 8-17-92 (Register 92, No. 34). A Certificate of Compliance must be transmitted to OAL 2-13-93 pursuant to Education Code section 94337(a) or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 8-17-92 order transmitted to OAL on 2-3-93; disapproved by OAL on 3-24-93 (Register 93, No. 14).
3. New section refiled 4-12-93 as an emergency; operative 4-12-93 (Register 93, No. 16). A Certificate of Compliance must be transmitted to OAL 10-9-93 pursuant to Education Code section 94337(a) or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-12-93 order transmitted to OAL on 10-6-93; disapproved by OAL on 11-22-93 (Register 93, No. 49).
5. Repealed by operation of Government Code section 11346.1(g) (Register 2010, No. 6).
6. New article 6 (sections 71475-71485) and section filed 2-1-2010 as an emergency; operative 2-1-2010 (Register 2010, No. 6). A Certificate of Compliance must be transmitted to OAL by 8-2-2010 or emergency language will be repealed by operation of law on the following day.
7. New article 6 (sections 71475-71485) and section refiled with amendments 7-30-2010 as an emergency; operative 7-30-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 10-28-2010 or emergency language will be repealed by operation of law on the following day.
8. Editorial correction of Histories (Register 2010, No. 34).
9. Certificate of Compliance as to 7-30-2010 order, including further amendment of subsections (c)(4), (e), (ff)(1) and (hh), transmitted to OAL 10-7-2010 and filed 11-18-2010 (Register 2010, No. 47).
10. Amendment of subsection (t)(2) filed 1-27-2023; operative 4-1-2023 (Register 2023, No. 4).
This database is current through 4/12/24 Register 2024, No. 15.
Cal. Admin. Code tit. 5, § 71475, 5 CA ADC § 71475
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