Section 71640 - Application for Ownership, Control, or Business Organization Form(a) An institution seeking to change the business organization form, control, or ownership as defined in sections 94821, 94822, or 94823, respectively shall complete a form with the requirements of this section to obtain prior authorization. The form shall be submitted to the Bureau along with the appropriate fee as provided in Section 94930.5(c) of the Code. It shall be signed with original or digital signature and dated, and each fact stated therein, and each attachment thereto, shall be declared to be true under penalty of perjury, as follows:
(1) By each owner of the institution or each partner in a partnership, or(2) If the institution is incorporated by 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(3) If the institution is a nonprofit corporation or a public institution, by the chief executive officer or president.(b) An application for a change in ownership or control shall identify the name, title, address, e-mail address and telephone number of each new person required to be listed pursuant to section 71130 in an application, as well as the persons previously listed pursuant to section 71130 that will no longer have ownership or control. For each proposed person listed, the application shall include the information required pursuant to section 71130(b), (c), and (d).(c) An application for a change in the form of business organization of the institution shall identify the approved organization as well as the proposed organization. If the proposed organization is incorporated, the application shall also identify the state within which the proposed organization is incorporated and the date of incorporation, along with copies of the articles of incorporation and bylaws. To the extent that a change in the form of business organization represents a change in ownership or control, the application shall include the information required by subdivision (b) of this section.(d) In addition to the above required information, each application under this section shall include: (1) The name, address, telephone number, fax number, and school code of the institution;(2) The reason for the proposed change;(3) The impact of the change on the financial resources of the institution, including the institution's ability to comply with section 71745;(4) A description of the planned administrative relationship between the persons previously approved and the proposed owners or persons in control, including the nature and extent of the supervision by the chief academic officer, chief operating officer, chief executive officer, and administrators; and(5) Any additional information required by the Bureau pursuant to section 71340 of this Chapter; and(6) The name, address, email address, telephone number and fax number of the contact person for this application.(e) An institution that has been granted an approval to operate by means of accreditation shall notify the Bureau of the substantive change within 30 days of that change on the Change of Business Organization/Control/ Ownership form, by completing section (d)(1) and (d)(6) and shall attach certification from the institution's accreditation agency demonstrating that the substantive change was made in accordance with the institution's accreditation standards, and complies with the Act and this Division.Cal. Code Regs. Tit. 5, § 71640
Note: Authority cited: Sections 94803 and 94895, Education Code. Reference: Sections 94821, 94822, 94823, 94893, 94894, 94895, 94896 and 94930.5, Education Code.
Note: Authority cited: Sections 94803 and 94895, Education Code. Reference: Sections 94821, 94822, 94823, 94893, 94894, 94895, 94896 and 94930.5, Education Code.
1. New 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 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 subsections (d)(1) and (e), transmitted to OAL 10-7-2010 and filed 11-18-2010 (Register 2010, No. 47).
4. Amendment of subsection (a) and new subsections (a)(1)-(3) filed 8-1-2024; operative 10/1/2024 (Register 2024, No. 31).