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Legal Resources | Title 5 |  T5  30308  

Civil Penalties.   

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(a) The CELP Official shall determine whether to impose a civil penalty of up to $25,000 per violation on an institution against which a cause of action has been commenced pursuant to the provisions of this article.

(b) The CELP official shall begin a civil penalty proceeding by sending the institution a notice by certified mail with return receipt requested. This notice shall:

(1) Inform the institution of the intent to impose civil penalties against the institution and the amount of the civil penalties, and identify the alleged violations for which the civil penalties are being imposed;

(2) Specify the proposed effective date of the civil penalties, which shall be the same date as the effective date of the limitation, suspension, or termination; and

(3) Inform the institution that the civil Penalties shall not be effective on the date specified in the notice if the CELP official receives, at least five days prior to that date, a written request for a hearing or written material indicating why the civil penalties should not be imposed.

(c) If the institution does not request a hearing but submits written material, the CELP Official, after considering that material, shall notify the institution that:

(1) The civil penalties shall not be imposed; or

(2) The civil penalties shall be imposed as of a specified date, and in a specified amount.

(d) If the institution submits a timely request for a hearing, the procedure for the hearing shall be governed by the provisions of this article relating to hearings in limitation, suspension, and termination proceedings.

(e) In any event, if the institution contests the alleged violations which form the bases for the civil penalties, the imposition of the civil penalties shall be stayed until final adjudication of those alleged violations or until settlement by the parties relating to those alleged violations.

(f) In determining the amount of a civil penalty the CELP Official shall consider the appropriateness of the penalty to the gravity of the violation; the frequency and persistence of the violation; and the amount of any losses resulting from the violation.

(g) Notwithstanding any other provision of this article, the total amount of civil penalties, when finally determined after the exhaustion of appeals, if any, shall be subject to deduction by the California Student Aid Commission from any sums owed to the institution by the California Student Aid Commission.

(h) For the purposes of civil penalty imposition, a "violation" shall be a single violation, regardless of the number of instances of that violation.

Authority cited:

Education Code 69763(a) and (b)


Education Code 69763(b)

(Amended by Register 88, No. 35.)