AB 1731- Imposes New Obligations On Postsecondary Educational Institutions That Enroll Military Veterans Eligible For Federal Title 38 Awards

The federal Title 38 award program provides financial aid to military veterans under the administration of the California State Approving Agency for Veterans Education (CSAAVE).  Any private postsecondary educational institution headquartered or operating in California that desires to enroll military veterans eligible for federal Title 38 awards must apply for and receive approval for its courses from CSAAVE.  CSAAVE is authorized to approve an application for private postsecondary educational institutions whose courses satisfy specified criteria and that otherwise satisfy any additional reasonable criteria established by CSAAVE.

Assembly Bill 1731 (AB 1731) requires CSAAVE to establish, on or before January 1, 2024, regulations requiring postsecondary educational institutions to provide certain specified information to CSAAVE as part of an application for approval or renewal, including:

1. The institution’s most recent cohort default rate as reported to the United States Department of Education.
2. For institutions other than the University of California, the California State University, and the California Community Colleges, evidence that the institution meets financial responsibility requirements established by CSAAVE.
3. Evidence of the institution’s accreditation status.
4. Whether a student, former student, or public prosecutor has filed a lawsuit against the institution for fraud, misrepresentation, or deceit within five years before the institution’s application for approval or renewal, including both pending and resolved lawsuits.
5. If the institution makes an implied or express representation that it prepares students to work in a profession, occupation, trade, or career field requiring licensure or certification by the state, the following information shall also be disclosed:
   1. Whether the institution has obtained the required approval by the appropriate state licensing or certifying agency for the profession, occupation, trade, or career field;
   2. Whether the institution meets all requirements necessary to allow a student to lawfully obtain a state license or certificate;
   3. The license or certificate passage rate for each program; and
   4. An employment market assessment for non-degree programs.

Private postsecondary educational institutions may provide the information specified above to CSAAVE by providing a copy of any School Performance Fact Sheet submitted to and accepted by the California Bureau for Private Postsecondary Education, any documents submitted to the United States Department of Education, any documents submitted to the United States Department of Veterans Affairs, and any previously submitted applications to CSAAVE.

The provisions of AB 1731 are severable, meaning that if any provision or application of any provision is held invalid, any other valid provisions or applications are not impacted.

(AB 1731 adds Section 67102.5 to the Education Code.)