Alternative Method for Exemption from Participation in the Fund.
The superintendent shall exempt any institution from participating in the fund which maintains an acceptable alternative method of protecting students. An institution is responsible for paying assessments until an exemption is granted. Plans should be submitted at least ninety days prior to the starting date of an assessment period to be considered as exempt from that and future assessment periods. An acceptable alternative plan shall satisfy the following criteria:
(a) Respect individual choice and allow for financial settlement when a teach-out is neither acceptable, reasonable, nor convenient to the student.
(b) Provide for settlement regardless of reason for school closure.
(c) Describe an application process, define the criteria for evaluating claims, and outline an appeals process.
(d) Establish an adequate fund immune from creditor claims for purpose of payment of claims.
(e) Specify whether financial settlement, if applicable, is limited in any respect.
Participation in an acceptable alternative plan shall not be terminated until an institution has made its initial payment into the fund.
Education Code 94344
Education Code 94343
(Amended by Register 85, No. 3.)