Section 71395 - Application; Fees(a) In order to obtain verification from the Bureau that it is exempt pursuant to Section 94874 of the Code, an institution must complete an application with the requirements of this section.(b) The application for verification of exemption shall include all of the following: (1) The name, telephone number of the institution, and its website address;(2) The physical address of the institution's primary administrative location in California;(3) The mailing address of the institution;(4) The name, address, email address, and telephone number of an individual who will function as the institution's contact person for the purposes of the application;(5) Identification of the type of exemption or exemptions for which the institution believes it qualifies;(6) If an institution is claiming an exemption under section 94874(b), 94874(e), 94874(h) and 94874(j) of the Code, identify the form of business organization of the institution (i.e., sole proprietorship, general or limited partnership, for-profit corporation or nonprofit corporation, or nonprofit religious corporation) and provide documentation verifying the form of business organization. If the institution is incorporated, the institution shall also identify the state within which the institution is incorporated and the date of incorporation;(7) If an instituion is claiming an exemption under section 94874(d)(2), 94874(g), 94874(h), 94874(i), 94874(j) or 94874.1 of the Code, a letter from that entity indicating the validity of the accreditation or approval, and the name and contact information for a representative of that entity;(8) If an institution is claiming an exemption under section 94874(a), 94874(b), 94874(d)(1), 94874(d)(2), 94874(e), 94874(g), for each educational program offered or proposed to be offered by the institution, the following information:(A) The title and description of the educational program;(B) The full title and description of any diploma, certificate, degree or other similar title awarded to students who complete the program; and(9) The total institutional charges for the educational program, and whether or not the institution is approved to offer federal financial assistance if applying for an exemption under Section 94874(f) of the Code; and(10) Admission criteria if applying for an exemption under section 94874(b) of the Code.(11) In addition to other requirements of this section, institutions claiming exemption under section 94874(e) of the Code shall provide verification of operation as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110) of Division 2 of Title 1 of the Corporations Code.(12) In addition to other requirements of this section, institutions claiming exemption under section 94874(h) shall provide verification of operation under section 501(c)(3) of the United States Internal Revenue Code and verification that the organization exclusively provides workforce development or rehabilitation services.(13) In addition to other requirements of this section, institutions claiming exemption under section 94874(j) shall provide documentation of:(A) operation in California for a minimum of 25 years; and(B) a statement that the institution has never filed for bankruptcy; and(C) the cohort default rate on guaranteed student loans for the most recent three years; and(D) cancellation and refund policies; and(E) copies of the most recent composite scores of equity, primary reserve, and net income ratios as submitted to the United Stated Department of Education; and(F) the most recent IRS Form 990.(14) A statement that the applicant understands that a verification of exemption obtained from the Bureau is not an Approval to Operate issued pursuant to section 94886 or 94890 of the Code, and that the institution is prohibited from advertising, claiming, or implying that it has been approved to operate by the Bureau, unless it has been issued such an approval; and(15) Any material facts as defined by section 71340(a) of this Chapter.(c) The application shall be signed and dated, and each fact stated therein and each attachment thereto shall be declared to be true under penalty of perjury, as follows: (1) Signatories to sign with original or digital signature:(A) Each owner of the institution, or each partner in a partnership, or(B) If the institution is incorporated, the chief executive officer or president of the corporation and each person who owns or controls 25 percent or more of the stock or interest in the institution, or(C) If the institution is a nonprofit corporation or a public institution, by the chief executive officer or president.(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)" |
(d) Each signatory to the application shall provide his or her name, title, ownership interest, and address.(e) An applicant shall submit to the Bureau the completed form required by subdivision (a) of this section, and a fee provided in section 74004.Cal. Code Regs. Tit. 5, § 71395
Note: Authority cited: Sections 94803 and 94877, Education Code. Reference: Sections 94874.1 and 94874.7, Education Code.
Note: Authority cited: Sections 94803 and 94877, Education Code. Reference: Sections 94874.1 and 94874.7, of the Education Code.
1. New article 3 (section 71395) 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.
2. New article 3 (section 71395) 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.
3. Certificate of Compliance as to 7-30-2010 order, including further amendment of section, transmitted to OAL 10-7-2010 and filed 11-18-2010 (Register 2010, No. 47).
4. Amendment of subsections (a) and (c)(1)-(c)(1)(C) filed 8-1-2024; operative 10/1/2024 (Register 2024, No. 31).