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Chapter 2. Applications. Article 7. Applications for a Substantive Change to an Approval to Operate. Application for Ownership, Control, or Business Organization Form.   

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(a) An institution seeking to change the business organization form, control, or ownership as defined in sections 94821, 94822, or 94823, respectively shall complete the "Change of Business Organization/Control/Ownership" form (OWN rev. 2/10) to obtain prior authorization. The form shall be submitted to the Bureau along with the appropriate fee as provided in Section 94930.5(c) of the Code. An application under this section shall be signed by all signatories to the initial application, or the last approved application under this section, as well as the persons required to sign an application pursuant to section 71380 for institutions approved under section 94885 of the code and section 71390 for institutions approved under section 94890 of the code. Each signature shall be dated, and each fact stated therein and each attachment thereto shall be declared to be true under penalty of perjury, in the following form:

"I declare under penalty of perjury under the laws of the State of California that the foregoing and all attachments are true and correct.





(b) An application for a change in ownership or control shall identify the name, title, address, e-mail address and telephone number of each new person required to be listed pursuant to section 71130 in an application, as well as the persons previously listed pursuant to section 71130 that will no longer have ownership or control. For each proposed person listed, the application shall include the information required pursuant to section 71130(b), (c), and (d).

(c) An application for a change in the form of business organization of the institution shall identify the approved organization as well as the proposed organization. If the proposed organization is incorporated, the application shall also identify the state within which the proposed organization is incorporated and the date of incorporation, along with copies of the articles of incorporation and bylaws. To the extent that a change in the form of business organization represents a change in ownership or control, the application shall include the information required by subdivision (b) of this section.

(d) In addition to the above required information, each application under this section shall include:

(1) The name, address, telephone number, fax number, and school code of the institution;

(2) The reason for the proposed change;

(3) The impact of the change on the financial resources of the institution, including the institution's ability to comply with section 71745;

(4) A description of the planned administrative relationship between the persons previously approved and the proposed owners or persons in control, including the nature and extent of the supervision by the chief academic officer, chief operating officer, chief executive officer, and administrators; and

(5) Any additional information required by the Bureau pursuant to section 71340 of this Chapter; and

(6) The name, address, email address, telephone number and fax number of the contact person for this application.

(e) An institution that has been granted an approval to operate by means of accreditation shall notify the Bureau of the substantive change within 30 days of that change on the Change of Business Organization/Control/ Ownership form, by completing section (d)(1) and (d)(6) and shall attach certification from the institution's accreditation agency demonstrating that the substantive change was made in accordance with the institution's accreditation standards, and complies with the Act and this Division.

Authority cited:

Education Code 94803

Education Code 94895


Education Code 94821

Education Code 94822

Education Code 94823

Education Code 94893

Education Code 94894

Education Code 94895

Education Code 94896

Education Code 94930.5,

(Amended by Register 2010, No. 47.)