AB2771 - California Private Postsecondary Education Act of 2009.

Amended IN Senate August 21, 2026 Amended IN Senate August 13, 2026 Amended IN Senate June 25, 2026 Amended IN Assembly April 07, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2771 Introduced by Committee on Business and Professions Assembly Member Berman February 23, 2026 An act to amend Sections 94801.5, 94874, 94874.7, 94874.9, 94885, 94885.5, 94885.7, 94886, 94887, 94890, 94891, 94894, 94897, 94902, 94909, 94911, 94912.5, 94913, 94916, 94917, 94918, 94921, 94923, 94925, 94927.5, 94930.5, 94934.5, 94941, 94944, 94944.5, 94944.6, 94948, and 94950 of, and to repeal Section 94900.7 of, the Education Code, relating to private postsecondary education, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 2771, as amended, Committee on Business and Professions Berman. California Private Postsecondary Education Act of 2009. The California Private Postsecondary Education Act of 2009 provides, among other things, for student protections and regulatory oversight of private postsecondary educational institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires the Director of Consumer Affairs to provide biannual written updates to the Legislature that describe the bureau’s progress in protecting consumers and enforcing the act, as specified. The act requires institutions to report to the bureau specified investigations and actions by oversight entities within 30 days. The act is repealed on January 1, 2027. This bill would revise and recast the act’s provisions. The bill would instead require the director to provide those written updates to the Legislature annually. The bill would additionally require institutions to report bankruptcy filings, felony charges against the institution or specified persons, and certain civil actions or arbitrations to the bureau, as provided. The bill would specify that an institution’s failure to provide the bureau with a required report is a material violation and subjects the institution to citation, probation, suspension, or revocation of its approval to operate. The bill would authorize the bureau to deny an application for approval to operate if the institution would be owned, controlled, or managed by a person who previously owned, controlled, or managed an institution that closed without providing required student refunds or appropriately preserving and making available records. The act requires an out-of-state private postsecondary educational institution to register with the bureau, pay a fee, and comply with additional delineated requirements, including reporting to the bureau certain enforcement or adverse occurrences. The act requires the bureau, after receipt of such a report, to determine if the institution will be permitted to continue to enroll new students, as provided. The act requires the bureau to receive complaints about these institutions. This bill would instead authorize the bureau, after receipt of a report or a complaint, to request from the institution information necessary to determine whether the institution’s registration should be revoked or have conditions placed on it. The act applies to private entities with a physical presence in the state that offer postsecondary education to the public for a charge, but exempts certain institutions from its application, including certain institutions that only offer educational programs to members of a bona fide trade or fraternal organization, as specified, certain religious organizations if instruction is limited to the principles of that religious organization, certain flight instruction providers or programs if they meet specified student loan and prepayment conditions, and institutions that do not award degrees and that solely provide educational programs for total charges of $2,500 or less, as provided. This bill would clarify that institutions can qualify for the trade or fraternal organization exemption only if they offer nondegree educational programs to those members, and that adding religious perspectives or verbiage to the titles or descriptions of otherwise secular programs does not limit instruction to the principles of that religious organization for purposes of the religious organization exemption. The bill would remove those student loan and prepayment conditions from the flight instruction exemption and would specify that the $2,500 or less program exemption does not apply to institutions that provide any training or curriculum for Class A, B, or C commercial driving licenses, except as specified. The bill would specify processes for and limits on granting a verification of exemption. The act requires an institution seeking to offer one or more degree programs to satisfy certain requirements to obtain a provisional approval to operate. The act requires, within the first 2 years of the issuance of provisional approval to operate degree programs, a visiting committee to make a recommendation to the bureau regarding an institution’s progress to achieving full accreditation. The act requires the bureau to automatically suspend a provisional approval to operate if an institution fails to comply with certain requirements. The act requires the bureau to grant an institution that is accredited an approval to operate by means of its accreditation. The act exempts an accredited institution from certain recordkeeping requirements. This bill would require accreditation for degree-granting institutions to cover all degree programs offered by the institution. The bill would require, for institutions seeking a provisional approval to operate, that enrollment of students on student visas not exceed more than 25% of total enrollment in any provisionally approved degree program. The bill would authorize, within the first 4 years of the issuance of a provisional approval to operate degree programs, the bureau to empanel a visiting committee to make a recommendation to the bureau regarding an institution’s progress to achieving full accreditation. The bill would require the bureau to automatically terminate a provisional approval to operate if an institution fails to comply with certain requirements. The bill would specify, for an approval to operate by means of its accreditation, that a nondegree program not within the scope of accreditation is not included as an approved program by the bureau without the written consent of the institution’s accrediting agency. The bill would remove the recordkeeping exemption for accredited institutions. The bill would remove a requirement that the bureau indicate in an annual report and make available on its internet website the number of enforcement actions taken by the bureau against institutions. The act requires an institution to obtain bureau approval before making certain substantive changes to its operations, including an addition of a separate branch more than 5 miles from the main or branch campus. The act requires that a student enrollment agreement, school catalog, and other disclosures meet certain requirements. This bill instead would require an institution to obtain bureau approval before adding a separate branch, regardless of the distance from the main or branch campus. The bill would revise the requirements for a student enrollment agreement, school catalog, and other disclosures. The act establishes the Private Postsecondary Education Administration Fund, requires that fees collected from institutions be deposited in the fund, and, upon appropriation by the Legislature, authorizes moneys in the fund to be used by the bureau for the administration of the act. This bill would increase certain fees collected from institutions. The act requires private postsecondary educational institutions to provide refunds to students under specified circumstances, including upon a notice of cancellation, and establishes methods for calculating those refunds based on the institution’s total charges and periods of attendance. This bill would require an institution that originated or accepted payment from an income share agreement to calculate the required refund based on the institution’s total charges for a student who does not receive a notice of cancellation refund, as specified. The act establishes the Student Tuition Recovery Fund, requires the bureau to adopt regulations governing the administration and maintenance of the fund, including requirements relating to assessments on students and student claims against the fund, and continuously appropriates the moneys in the fund to the bureau for specified purposes. This bill would expand the claims under which a student is eligible for payment from the fund and the evidence available to the bureau in making determinations about student eligibility under the fund. The bill would make other conforming, technical, and nonsubstantive changes and would extend the operation of the act by 4 years to January 1, 2031. By expanding the scope and extending the operation of the Student Tuition Recovery Fund, a continuously appropriated fund, this bill would make an appropriation. Under existing law, the act specifies conduct by regulated institutions that, if undertaken, is a crime. Because this bill would extend the application of those criminal provisions, it would impose a state-mandated local program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 94801.5 of the Education Code is amended to read: 94801.5. (a) An out-of-state private postsecondary educational institution shall register with the bureau, pay a fee pursuant to Section 94930.5, and comply with all of the following: (1) The institution shall provide the bureau with all of the following information, as applicable, for consideration of initial registration by the bureau pursuant to paragraph (2). (A) Evidence of institutional accreditation. (B) Evidence that the institution is approved to operate in the state where the institution maintains its main administrative location. (C) The agent for service of process consistent with Section 94943.5. (D) A copy of the institution’s catalog and, if the institution uses enrollment agreements, a copy of a sample enrollment agreement. (E) Whether or not the institution, or a predecessor institution under substantially the same control or ownership, had its authorization or approval revoked or suspended by a state or by the federal government, or, within five years before submission of the registration, was subject to an enforcement action by a state or by the federal government that resulted in the imposition of limits on enrollment or student aid, or is subject to such an action that is not final and that was ongoing at the time of submission of the registration. (F) Whether or not the institution, or a controlling officer of, or a controlling interest or controlling investor in, the institution or in the parent entity of the institution, had been subject to any education, consumer protection, unfair business practice, fraud, or related enforcement action by a state or federal agency within five years before submitting the registration. If so, the institution shall provide the bureau a copy of the operative complaint with the registration. (G) Whether or not the institution is currently on probation, show cause, or subject to other adverse action, or the equivalent thereof, by its accreditor or has had its accreditation revoked or suspended within the five years before submitting the registration. (H) Whether or not the institution, within five years before submitting the registration, has settled, or been adjudged to have liability for, a civil complaint alleging the institution’s failure to provide educational services, including a complaint alleging a violation of Title IX of the federal Education Amendments of 1972 (Public Law 92-318) or a similar state law, or a complaint alleging a violation of a law concerning consumer protection, unfair business practice, or fraud, filed by a student or former student, an employee or former employee, or a public official, for more than two hundred fifty thousand dollars ($250,000). The institution shall provide the bureau a copy of the complaint filed by the plaintiff and a copy of the judgment or settlement agreement for any such judgment or settlement, and the bureau shall consider, pursuant to paragraph (2), all material terms and aspects of the settlement, including, for example, whether a student plaintiff remained enrolled or reenrolled at the institution. (I) Any additional documentation the bureau deems necessary for consideration in the registration process. (2) When considering whether to approve, deny, or condition initial registration based upon the information provided by an institution pursuant to paragraph (1), the bureau shall do all of the following: (A) Not consider any individual submission made under paragraph (1) to be solely determinative of the institution’s eligibility for registration but, exercising its reasonable discretion, approve, reject, or condition registration based upon a review of all of the information provided to it under paragraph (1). (B) Provide an institution with reasonable notice and opportunity to comment before the bureau regarding any determination to deny, condition, or reject initial registration before that determination becomes final. After the determination becomes final, the institution may seek review of the bureau’s decision through an action brought pursuant to Section 1085 of the Code of Civil Procedure. (C) Require the initial registration, if approved, to memorialize that the institution agrees, as a condition of its registration, to be bound by this section and that its registration may be rejected, conditioned, or revoked for failure to comply with this section, as provided by subdivision (b). The agreement shall be signed by a responsible officer of the institution. (3) An institution that is registered with the bureau and enrolls a student residing in California shall report in writing to the bureau, within 30 days, the occurrence of any of the following: (A) The institution has its authorization or approval revoked or suspended by a st [Text truncated for display. Full text available on Congress.gov.]