Statutes, codes, and regulations
California Code Of Regulations
Title 5 - EducationDivision 7.5 - Private Postsecondary EducationChapter 2 - Applications
Article 1 - Application for Approval to Operate and Offer Educational Programs for Non-Accredited Institutions
Section 71130 - Institution Ownership and Control; Violations of Law

Cal. Code Regs. tit. 5 § 71130

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Current through Register 2024 Notice Reg. No. 43, October 25, 2024
Section 71130 - Institution Ownership and Control; Violations of Law
(a)
(1) The institution shall identify the name, address, email address, and telephone number 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.
(2) 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 (1) be maintained as personal information.
(b) The institution shall describe the nature and percentage of the ownership interest and any other financial involvement in the institution of any person identified in subdivision (a) of this section.
(c) The institution shall provide a statement from any person identified in subdivision (a) 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;
(d) The institution shall furnish 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.

Cal. Code Regs. Tit. 5, § 71130

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. New section refiled 11-17-93 as an emergency; operative 11-17-93 (Register 93, No. 47). A Certificate of Compliance must be transmitted to OAL by 5-16-94 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 11-17-93 order transmitted to OAL with amendments 3-11-94 and filed 4-19-94 (Register 94, No. 16).
7. Amendment of section and NOTE 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.
8. Amendment of section and NOTE refiled with additional 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.
9. Editorial correction of HISTORIES 1 and 3 (Register 2010, No. 34).
10. Certificate of Compliance as to 7-30-2010 order transmitted to OAL 10-7-2010 and filed 11-18-2010 (Register 2010, No. 47).

Note: Authority cited: Sections 94803, 94877 and 94888, Education Code. Reference: Sections 94885, 94887 and 94888, Education Code; and Sections 30 and 480, Business and Professions Code.

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. New section refiled 11-17-93 as an emergency; operative 11-17-93 (Register 93, No. 47). A Certificate of Compliance must be transmitted to OAL by 5-16-94 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 11-17-93 order transmitted to OAL with amendments 3-11-94 and filed 4-19-94 (Register 94, No. 16).
7. Amendment of section and Note 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.
8. Amendment of section and Note refiled with additional 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.
9. Editorial correction of Histories 1 and 3 (Register 2010, No. 34).
10. Certificate of Compliance as to 7-30-2010 order transmitted to OAL 10-7-2010 and filed 11-18-2010 (Register 2010, No. 47).