This isn't the first time that the CA regulator (BPPE) has surprised code schools with cease-and-desist letters :)
That said, we (App Academy) found that the BPPE was a mostly accommodating regulator that worked with us to come into compliance. We did face a couple challenges that will likely still exist today:
1) BPPE won't give approval to operate until the whole application process is completed. This means that Lambda School is likely operating without approval and will continue to do so for 6-12 months at a minimum. Contracts are unenforceable during this period, the school could be forced to shut down CA operations overnight, etc.
2) BPPE doesn't have a formal policy for Income Share Agreements (ISAs). We were able to get our ISA approved in 2015, but it took some doing and was not nearly as straightforward as getting a normal tuition contract approved. Several other ISA programs that applied a year or two after us were not approved.
That said, we (App Academy) found that the BPPE was a mostly accommodating regulator that worked with us to come into compliance. We did face a couple challenges that will likely still exist today:
1) BPPE won't give approval to operate until the whole application process is completed. This means that Lambda School is likely operating without approval and will continue to do so for 6-12 months at a minimum. Contracts are unenforceable during this period, the school could be forced to shut down CA operations overnight, etc.
2) BPPE doesn't have a formal policy for Income Share Agreements (ISAs). We were able to get our ISA approved in 2015, but it took some doing and was not nearly as straightforward as getting a normal tuition contract approved. Several other ISA programs that applied a year or two after us were not approved.
More info: https://venturebeat.com/2014/01/30/california-bootcamp-will-...