5 CCR s 71725

Cal. Admin. Code tit. 5, s 71725

CALIFORNIA CODE OF REGULATIONS
TITLE 5. EDUCATION
DIVISION 7.5. PRIVATE POSTSECONDARY EDUCATION
CHAPTER 2. DEGREE-GRANTING PRIVATE POSTSECONDARY EDUCATIONAL INSTITUTIONS
ARTICLE 11. INSTITUTIONAL OPERATING STANDARDS
This database is current through 02/02/07, Register 2007, No. 5
s 71725. Ownership and Management.

Each owner, corporate director, and chief executive officer, of an
institution has the duty to act in the utmost good faith to do all of the
following:
(a) Inquire into the operation of the institution and its compliance with
applicable law, including the Act and this chapter.

(b) Take all reasonable steps within his or her capacity to cause the
institution to comply with all applicable law and to correct the effects
of noncompliance.

(c) Disclose immediately to the Council evidence that the institution or
any person connected with the institution has engaged in fraud,
misrepresentation, misappropriation of funds, or any violation of law
prosecutable as a felony, except that no disclosure is required of any
matter privileged under Section 940 of the Evidence Code.

(d) Expend or authorize the expenditure of the institution's assets and
funds, including tuition, fees, and other charges collected from on behalf
of students, in a diligent and prudent manner to assure that students
receive the education and student services which were represented to the
students and which meet the requirements of the Code and this chapter.

Note: Authority cited: Sections 94305 and 94337, Education Code.
Reference: Sections 94301 and 94310, Education 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emergency language will be repealed by operation of law on the following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or emergency language will be repealed by operation of law on the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
3-11-94
and filed 4-19-94 (Register 94, No. 16).

5 CCR s 71725, 5 CA ADC s 71725
1CAC

5 CA ADC s 71725

END OF DOCUMENT