(a) An institution with an approval to operate that knows that it is being investigated by an oversight entity other than the bureau shall report that investigation, including the nature of that investigation, to the bureau within 30 days of the institution’s first knowledge of the investigation. An institution with an approval to operate that is the subject of a judgment by, a regulatory action by, increased oversight or monitoring by, or a settlement with, any oversight entity other than the bureau shall report it to the bureau within 30 days. Failure to comply with this section may subject the institution to an administrative citation pursuant to Section 94936.
(b) For the purposes of this section, “investigation” means any inquiry into possible violations of any applicable laws or accreditation standards.
(c) For the purposes of this section, “oversight entity” means all of the following:
(1) Any federal or state entity that provides financial aid to students of the institution or approves the institution for participation in a financial aid program.
(2) Any state or federal attorney general’s office or department of justice.
(3) Any regulator that approves the operation of the institution.
(4) The federal Consumer Financial Protection Bureau or the federal Securities and Exchange Commission.
(5) Any accrediting agency.
(6) Any state professional licensing entity that exercises any programmatic or institutional approval over the institution.
(Added by Stats. 2016, Ch. 593, Sec. 22. (SB 1192) Effective January 1, 2017. Repealed as of January 1, 2021, pursuant to Section 94950.)
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