5 CCR s 71130

Cal. Admin. Code tit. 5, s 71130

CALIFORNIA CODE OF REGULATIONS
TITLE 5. EDUCATION
DIVISION 7.5. PRIVATE POSTSECONDARY EDUCATION
CHAPTER 2. DEGREE-GRANTING PRIVATE POSTSECONDARY EDUCATIONAL INSTITUTIONS
ARTICLE 2. APPLICATION FOR APPROVAL TO OPERATE AND OFFER EDUCATIONAL
PROGRAMS
This database is current through 02/02/07, Register 2007, No. 5
s 71130. Institution Ownership and Control; Violations of Law.

(a)(1) The institution shall identify the name, address and telephone
number of each owner of the institution and, to the extent applicable,
each general partner, officer, corporate director, corporate member 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) The institution may indicate the address, telephone number, of
each person described in paragraph (1) on a separate page which may
be filed in a sealed envelope with the application. The Council
shall not disclose the information except to entities authorized to
inspect records under Section 71930 of this chapter or as may be
required by any law or by subpoena or court order.

(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).

(c) The institution shall provide a statement identifying any person
identified in subdivision (a) 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 the subject of any of the grounds for denial set forth in
Section 480 of the Business and Professions Code;

(3) Was subject to a finding, as described in Section 94330(k)(4)
of the Code, in any judicial or administrative proceeding; or

(4) Has stipulated to a judgment or administrative order or entered
a consent decree involving any of the matters described in this
section.

(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.

Note: Authority cited: Sections 94305 and 94337, Education Code.
Reference: Sections 94301, 94310 and 94330, Education Code; and
Section 480, Business and Professions 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 12-15-92
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
8-10-93
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).

5 CCR s 71130, 5 CA ADC s 71130
1CAC

5 CA ADC s 71130

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