California Code of Regulations › Title 11 - Law › Division 1 - Attorney General › Chapter 10 - Bureau for Private and Postsecondary Education Exemption Verification › Section 940 - Bureau for Private and Postsecondary Education Exemption Verification

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) To request
				verification from the Attorney General pursuant to Education Code section
				94874.1,
				subdivision (a), the nonprofit institution must submit the "Application for
				Verification," Form CT-SCHOOL-1.
(b) The
				Application for Verification must be signed under penalty of perjury by the
				nonprofit institution's president, chief executive officer, treasurer, or chief
				financial officer and must include all of the following:
(1) The name of the nonprofit institution, any and
				all doing business as (DBAs) operating names, its telephone number, and its website
				address;
(2) The mailing address of the
				nonprofit institution;
(3) The physical
				address of the nonprofit institution's primary administrative location in
				California, if any;
(4) The name, title,
				address, email address, and telephone number of an individual who is the nonprofit
				institution's contact person for the purposes of the Application for
				Verification;
(5) Federal Employer
				Identification Number and Corporation or Organization Number; and
(6) Information requested in Part B of the
				Application for Verification:
(A) The effective
				date and a full description of the transaction converting the institution from
				for-profit to nonprofit status, including all agreements entered into between the
				nonprofit institution and the for-profit institution, all related financial
				information, and a statement from the nonprofit institution's board of directors as
				to why they believe the transaction is or was necessary or desirable.
(B) A statement of whether the nonprofit
				institution acquired the for-profit institution's assets for no more than the fair
				value of the assets. "Fair value" must be demonstrated by one of the means listed in
				Education Code section
				94874.1,
				subdivision (c).
(C) If the nonprofit
				institution acquired the for-profits institution's assets for no more than the fair
				value of the assets, a statement of whether the nonprofit institution executed
				agreements for goods or services for no more than the fair value of the goods or
				services. "Fair value" must be demonstrated by one of the means listed in Education
				Code section
				94874.1,
				subdivision (c).
(D) If the nonprofit
				institution executed agreements for goods or services for no more than the fair
				value of the goods or services, a statement of whether all core functions of the
				nonprofit institution are conducted by, or under the direction of, the nonprofit
				institution. The term "core functions" includes control of student instruction;
				academic research and public service; curriculum development and management and
				development of instructional personnel; institutional support including management
				and planning; student recruitment and marketing; and faculty recruitment and
				retention.
(E) If all core functions of
				the nonprofit institution are conducted by. or under the direction of, the nonprofit
				institution, a statement of whether the nonprofit institution entered into any
				contracts, loans, or leases with a term longer than three years with the former
				for-profit institution's owners and managers. This requirement, however, does not
				apply to a nonprofit institution that previously operated as a for-profit
				institution owned by or controlled by a public institution of higher
				learning.