Report 2013-045 Recommendation 32 Responses

Report 2013-045: Bureau for Private Postsecondary Education: It Has Consistently Failed to Meet Its Responsibility to Protect the Public's Interests (Release Date: March 2014)

Recommendation #32 To: Private Postsecondary Education, Bureau for

To reduce the available balance in the recovery fund below the statutory limit of $25 million, the bureau should continue its plans to address the collection of the recovery fund assessment.

1-Year Agency Response

The Bureau is including a copy of the regulatory language that went into effect on January 1, 2015 reducing the STRF assessment to $0.00 as Attachment #22.

California State Auditor's Assessment of 1-Year Status: Fully Implemented


6-Month Agency Response

The Bureau is continuing to work with DCA Legal to draft regulations to supsend collection of STRF payments. Senate Bill 1247 would make significant changes to STRF. The bill would require, among other changes, the Bureau resume collecting STRF when the fund falls below $20 million and would allow STRF claims despite an institution not having paid any STRF assessment. (See Attachment #12,p4)

California State Auditor's Assessment of 6-Month Status: Pending


60-Day Agency Response

The Bureau is working with DCA Legal to draft regulations to suspend collection of STRF payments. This is the responsibility of the Bureau Chief.

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2013-045

Agency responses received are posted verbatim.