CA AB1916

Requires private postsecondary institutions to file a surety bond with the Bureau for Private Postsecondary Education before January 1, 2019, in an amount equal to total tuition and fees charged in the immediately preceding academic year divided by four.

Mandates the bureau demand payment from the surety bond if an institution closes to provide refunds and punitive damages to students enrolled at closure or within 120 days before closure, if a significant decline in educational quality occurred during that period.

Allows students to directly sue the surety for recovery if the bureau fails to make demand within 120 days of closure, and requires sureties to provide recovery for at least four years after closure or until funds are depleted.

Requires institutions to provide academic records to an independent third party on a quarterly basis so transcripts and certifications can be produced within two weeks of closure and indefinitely thereafter, with fees capped at $10 per document.

Suspends an institution's approval to operate if it loses surety bond coverage, and allows sureties to be released only after providing 60 days' written notice to the bureau.