ARTICLE 15. Orderly Institutional Closure and Teach-outs [94926. - 94927.5.]

Cal. Education Code - EDC 15.

in effect

Cal. Education Code - EDC § 94926. Section 94926.

At least 30 days prior to closing, the institution shall notify the bureau in writing of its intention to close. The notice shall be accompanied by a closure plan, which shall include, but not necessarily be limited to, all of the following: (a) A plan for providing teach-outs of educational programs, including any agreements with any other postsecondary educational institutions to provide teach-outs. (b) If no teach-out plan is contemplated, or for students who do not wish to participate in a teach-out, arrangements for making refunds within 45 days from the date of closure, or for institutions that participate in federal student financial aid programs arrangements for making refunds and returning federal student financial aid program funds. (c) If the institution is a participant in federal student financial aid programs, it shall provide students information concerning these programs and institutional closures. (d) A plan for the disposition of student records.

Cal. Education Code - EDC § 94926.5. Section 94926.5.

(a) An institution’s approval to operate is automatically terminated on the date of closure or when its exemption from this chapter has been verified by the bureau. (b) An institution that does not identify a date of closure shall have one selected by the bureau. (c) A terminated license shall not be reinstated.

Cal. Education Code - EDC § 94927. Section 94927.

An institution shall be considered in default of the enrollment agreement when an educational program is discontinued or canceled or the institution closes prior to completion of the educational program. When an institution is in default, student institutional charges may be refunded on a pro rata basis if the bureau determines that the school has made provision for students enrolled at the time of default to complete a comparable educational program at another institution at no additional charge to the students beyond the amount of the total charges in the original enrollment agreement. If the institution does not make that provision, a total refund of all institutional charges shall be made to students.

Cal. Education Code - EDC § 94927.5. Section 94927.5.

(a) Prior to closing, an institution shall provide the bureau with the following: (1) Copies of pertinent student records, including transcripts, in hardcopy or electronic form, as determined by the bureau, pursuant to regulations adopted by the bureau. (2) If the institution is an accredited institution, a plan for the retention of records and transcripts, approved by the institution’s accrediting agency, that provides information as to how a student may obtain a transcript or any other information about the student’s coursework and degrees completed. (b) Subdivision (a) applies to all private postsecondary institutions, including institutions that are otherwise exempt from this chapter pursuant to Article 4 (commencing with Section 94874).

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026