BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: AB 48
AUTHOR: Portantino
AMENDED: June 29, 2009
FISCAL COMM: Yes HEARING DATE: July 15, 2009
URGENCY: No CONSULTANT:Kathleen Chavira
SUBJECT : California Private Postsecondary Education Act of
2009
SUMMARY
This bill revises and recasts the Private Postsecondary and
Vocational Education Reform Act of 1989 into the California
Private Postsecondary Education Act of 2009 (Act), provides
for the transition to the Bureau for Private Postsecondary
Education (BPPE), outlines its responsibilities, provides
for the approval, regulation, and enforcement of private
postsecondary educational institutions, establishes
reporting requirements, and repeals the Act on January 1,
2016.
BACKGROUND
The Private Postsecondary and Vocational Education Reform
Act of 1989 established the Bureau for Private
Postsecondary and Vocational Education (BPPVE) in the
Department of Consumer Affairs (DCA) for the purpose of
approving and regulating private postsecondary and
vocational educational institutions in California. The
provisions governing the operation and administration of
the BPPVE and the approval and regulation of the private
postsecondary and vocational institutions became
inoperative on July 1, 2007, and were repealed as of
January 1, 2008. AB 1525 (Cook, Chapter 67, Statutes of
2007) declared legislative intent to protect students,
allowed for the continuation of matters pending before
BPPVE, and provided for minimal oversight of institutions
by DCA until February 1, 2008. SB 45 (Perata, Chapter 635,
Statutes of 2007) extended limited DCA oversight of private
postsecondary schools from February 1, 2008, to July 1,
2008. No state law currently regulates the private
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postsecondary sector in California.
In 2006, there were over 1,500 BPPVE-approved institutions
operating in California. The BPPVE reported that these
institutions served over 400,000 students (consisting of
about 300,000 students at non-degree-granting institutions
and about 100,000 students at degree-granting
institutions).
ANALYSIS
This bill revises and recasts the former Private
Postsecondary and Vocational Education Reform Act of 1989
(Prior Act) into the California Private Post-secondary
Education Act of 2009 (Act). Specifically it:
1) Declares legislative intent that the Act ensure
minimum educational quality standards and
opportunities for success for students attending
private postsecondary California schools, meaningful
student protections, a regulatory structure that
provides appropriate oversight and a regulatory
governance structure that ensures a voice for
stakeholders and accountability and oversight by the
Legislature, and prevention of deception of the public
resulting from fraudulent or substandard degrees.
Transition Provisions
2) Extends, for an additional three years beyond the
expiration date, any approval to operate granted by
the BPPVE and in place at the time the Prior Act
became inoperative.
3) Grants approval until 2012, or 2013 (depending upon
the date received) to any applications pending action
before the BPPVE at the time the prior Act became
inoperative, and requires that students enrolling in
these institutions be notified in writing by the
institution that the institution's renewal application
was not reviewed by BPPVE.
4) Requires amendment and repeal of prior regulations
and adoption of emergency regulations conforming to
the transition provisions established by the Act by
February 1, 2010, to become permanent through the
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regular rulemaking process within one year of the date
of enactment of the Act.
5) Deems that any unresolved matter (including but not
limited to, an appeal, complaint, claim, evaluation,
hearing or investigation) submitted to the BPPVE
before July 1, 2007, remain pending before the BPPE
regardless of any applicable deadlines and, with
respect to any deadline, deems that no time shall have
elapsed from July 1, 2007, to January 1, 2010.
6) Requires that the Student Tuition Recovery Fund
(STRF) be continued, provides for processing of any
STRF claims pending, and provides that a student's
right to recover from STRF be based on the law that
was in effect at the time the student enrolled in the
institution and paid a STRF fee.
7) Provides that any institution that had an
application for an approval to operate pending before
BPPVE on July 1, 2007, or that had no application
pending but that began operations on or after July 1,
2007, may continue to operate but must comply with the
Act and submit an application for approval to operate
within six months of the application becoming
available (unless BPPVE determines that the pending
application satisfies the new requirements), and to
notify enrolling students as specified.
8) Requires that any student claims based upon a
violation of the Prior Act remain pending, that
student complaints received during the time the Prior
Act was inoperative through December 31, 2009, be
recorded and investigated by the BPPE, and, with
respect to any deadlines, deems no time to have
elapsed during the time the Prior Act was inoperative.
9) Provides that final judgments and/or legal remedies
available under the Prior Act be continued for any
claim or cause of action that arose prior to the
inoperative status or repeal of the Prior Act, except
for STRF claims.
Exemptions
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10)Exempts all postsecondary education entities that
were exempt from the 1998 Act and BPPVE oversight and
additionally exempts:
a) Institutions that provide solely
educational programs for total charges of $2500
or less (subject to BPPVE adjustment based upon
the California Consumer Price Index), with no
part of the charges paid by state or federal
student financial aid programs.
b) Institutions accredited by the Council of
the Section of Legal Education and Admissions to
the Bar of the American Bar Association, or a law
school or law study programs subject to approval,
regulation, and oversight of the Committee of Bar
Examiners.
c) A nonprofit public benefit corporation
that qualifies under Section 501 (c) (3) of the
United States Internal Revenue Code and is
organized specifically to provide workforce
development or rehabilitation services as well as
accredited for those services by an accrediting
organization recognized by the Department of
Rehabilitation.
d) Until January 1, 2015, institutions that
are accredited by a Regional Accrediting Agency.
Bureau Powers and Duties
11)Requires the BPPE to adopt regulations necessary to
implement the Act by January 1, 2011, to develop and
implement an enforcement program and to develop a
program to proactively identify unlicensed
institutions and take all appropriate legal action.
12)Requires BPPE to establish a website to be updated at
least annually, on or before June 30, 2010, that
includes, specified information.
13)Requires the BPPE to provide the information
specified in (12) to the California Postsecondary
Education Commission (CPEC) and requires the CPEC to
include the information in its internet web site
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directory of school performance data.
14)Requires BPPE to conduct outreach to secondary and
postsecondary school students about how to make
informed decisions when selecting an institution.
15)Requires BPPE to appoint an advisory committee
comprised of institutional representatives, student
representatives, consumer advocates and employers who
hire students.
16)Authorizes the BPPE to conduct workshops to assist
institutions in complying with the Act, and to empanel
visiting committees to assist in evaluating
institutional applications.
17)Requires BPPE to make a summary of the nature and
disposition of complaints against an institution
within the last five years available to the public
upon request, for complaints that have reached final
disposition.
Approval to Operate
18)Requires that all private postsecondary institutions
operating in California have BPPE approval, except for
any institutions exempt from the Act, establishes a
process for BPPE to issue institutional
approvals/renewals to operate, and establishes the
term of these approvals to be for five years.
19)Requires that all institutions granted an approval to
operate by means of accreditation comply with all
other applicable requirements of the Act.
Substantive Changes to Approval to Operate
20)Requires prior authorization from BPPE for
institutions wishing to make substantive changes, such
as a change in ownership or educational objectives,
and adoption of related regulations by January 1,
2011.
21)Provides that the institution's approval may be
suspended or revoked for failing to obtain BPPVE
authorization prior to a substantive change.
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22)Requires an institution granted approval to operate
by means of its accreditation to only make substantive
changes in accordance with accreditation standards and
to notify BPPE of the changes.
Fair Business Practices
23)Prohibits institutions, among other things, from
using the state seal on a diploma, promising
employment, advertise using inaccurate or misleading
information, compensating or providing gifts to
students for recruitment activities, making untrue or
misleading statements, willfully falsifying or
destroying documents, improperly implying approval or
licensure or failing to completely disclose what
approval or licensure means, directing an individual
to violate the Act or persuading a student not to file
a complaint, compensating an employee by bonus or
commission for recruitment or student assistance
except as specified, and requiring prospective
students to provide personal contact information to
access program information via the institution's
internet website.
24)Prohibits institutions from merging classes unless
students receive the same amount of instruction,
making unscheduled suspensions of classes unless
caused by circumstances beyond institutional control,
changing the day or time of the class unless certain
other requirements are met, moving the location of
classes more than 25 miles without meeting certain
requirements, or converting the means of delivery of
instruction.
25)Requires that institutions offering educational
programs that require licensure by the state have
approval to conduct that educational program.
26)Authorizes institutions offering courses with a term
of four months or less, to require payment of all
tuition and fees on the first day of instruction.
27)Prohibits an institution, for programs designed to be
four months or longer, from requiring more than one
term of advance payment at a time until 50% of
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coursework has been completed and provides exemptions
from these requirements for the purposes of federal
and state financial aid payments.
28)Authorizes, under certain conditions, students to
choose to pay all fees and tuition upon enrollment.
29)Requires that institutions providing private
institutional loan funding to a student ensure that a
student is not obligated for indebtedness that exceeds
the total cost of the current period of attendance.
Recordkeeping
30)Requires an institution maintain specified
student/educational program records for at least five
years except for accredited institutions if required
to abide by similar recordkeeping requirements under
accreditation.
Enrollment Agreements and Disclosures
31)Provides that students enroll solely by signing an
enrollment agreement; and outlines the conditions that
must be met for it to be enforceable.
32)Prohibits students from waiving any terms or receipts
of any disclosure.
33)Requires an "ability to benefit student" (defined as
a student without a certificate of graduation from a
school providing secondary education) to take a U.S.
Department of Education (USDE) prescribed examination
and achieve a USDE specified score showing the student
may benefit from the training offered before executing
an enrollment agreement.
34)Requires institutions offering programs in
professions that require licensure to provide a
potential enrollee with a written copy of the
requirements for state licensure, prohibits execution
of an enrollment agreement with a student known to be
ineligible for licensure unless the student's stated
objective is other than licensure, and establishes
limitations and disclosure requirements if an
institution discusses internships or student job
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availability during the enrollment process.
35)Requires an enrollment agreement to be written in
easily understood language, entitles a student to a
clear explanation of the agreement in his/her primary
language, as specified, and requires the agreement and
related disclosures be in the same language used in
recruitment.
36)Prohibits an enrollment agreement from requiring a
student to invoke internal institutional dispute
procedures before enforcing any contractual or other
legal rights or remedies.
37)Requires information or statements required to be
included in the catalog, School Performance Fact
Sheet, or enrollment agreement to be printed in at
least the same size font as the majority of the text
in that document.
38)Requires an institution to provide a school catalog
to a student prior to enrollment that includes, at
minimum 15 specified categories of information and
disclosures
39)Requires an institution to provide a prospective
student a School Performance Fact Sheet containing
completion rates, placement rates, license examination
passage rates, if applicable, and starting salaries if
the school makes claims regarding starting salaries.
40)Requires an enrollment agreement to include at
minimum, ten specified categories of information and
disclosures.
Consumer Loans to Students
41)Requires an institution extending credit or lending
money for educational costs to notify the student in
the lending documents of specified rights and
information, provides that such a lending note is not
enforceable unless the institution held an approval to
operate at the time of execution, and requires
institutional compliance with the Federal Truth in
Lending Act.
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Cancellations/Withdrawals/Refunds
42)Requires all institutions, whether they participate
in and comply with federal student aid program
regulations under Title IV of the Higher Education Act
of 1965 to establish a refund policy, to advise
students that cancellation notices must be in writing
and that a withdrawal may also be noticed by a student
not attending courses, to provide a pro rata refund of
nonfederal student financial aid program moneys to
students who completed 60% or less of the period of
attendance, and to refund 100% of the amount paid less
a reasonable deposit not to exceed $250 if notice of
cancellation is made through attendance at the first
class or the seventh class day after enrollment,
whichever is later.
43)Authorizes BPPE to adopt, via regulation, an
alternate refund calculation method for instruction
delivered by means such as distance education, and
authorizes any institution for which the
aforementioned refund calculations cannot be utilized
to petition BPPE for alternative methods of
calculating tuition refunds.
44)Prohibits a student from waiving any of these
provisions.
Student Tuition Recovery Fund (STRF)
45)Requires BPPE to adopt regulations governing the
administration and maintenance of STRF by January 1,
2011, continually appropriates STRF monies to the
BPPE, and prohibits the STRF from exceeding $25
million.
Closures
46)Requires an institution to notify BPPE in writing at
least 30 days prior to closing, and requires the
notice to include a closure plan that addresses, among
other things, provision of teach-outs or arrangements
for refunds, a provision of information on federal
financial aid programs and institutional closures, if
applicable, and the disposition of student records.
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47)Provides that an institution is in default of an
enrollment agreement if it closes prior to a student's
completion of the program and provides for the amount
of the refund to students, as specified.
48)Requires an institution to provide BPPE with
specified information including student records and
transcripts.
49)Require all institutions, including those otherwise
exempt, to provide student records, or a retention
plan for records and transcripts approved by the
institution's accrediting agency, to the BPPE prior to
closure.
Completion, Placement, Licensure, and Salary Disclosure
50)Defines various terms and calculations used in this
section.
51)Requires an institution to annually report to BPPE,
(as part of the annual report and the School
Performance Fact Sheet) completion rates for each
program, calculated as specified, and authorizes the
substitution of graduation data as reported to and
calculated by the Integrated Postsecondary Education
Data System (IPEDS) of the United States Department of
Education; job placement rates, calculated as
specified; the total number of graduates employed in
the field and the percentage of those who earned
salaries at or above the claimed level, if the
institution or makes any express or implied claim
about the salary that may be earned after completing a
program.
52)Requires the institution to document and maintain the
information used to substantiate job placement and
salary rates and to provide a list of employment
positions determined to be "within the field" for the
calculation of placement rates.
Fees
53)Establishes a differentiated fee schedule for
applications to obtain approval to operate, to renew
approvals, and to process authorization of a
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substantive change to an approval.
54)Authorizes the bureau to adjust the established fee
schedule, prohibits implementation of any increases
without legislative approval, and authorizes the
bureau to reduce fees if its annual costs for
providing oversight and review are less than the
established fees.
55)Requires that all fees be used by the BPPE to cover
costs of administering the Act, that the fee schedule
provide adequate resources to implement the Act, that
specified late payment penalties be assessed against
institutions, and that the BPPE publish a publicly
available fee schedule.
Compliance, Enforcement, Process, and Penalties
56)Establishes the BPPE authority to determine an
institution's compliance with the Act, to require
additional filing of reports, to send staff for
institutional site visits, to require documents and
responses from any institution in order to monitor
compliance, to make both announced and unannounced
inspections, to investigate institutions and to take
appropriate action.
57)Requires the BPPE impose penalties, including
mandating a specified timetable for remedying
noncompliance, imposing fines, placing the institution
on probation, or suspending or revoking approval, as
deemed appropriate by BPPE and depending on the
severity of the violation.
58)Requires an institution to submit an annual report
that includes specified information to the BPPE.
59)Requires BPPE staff to issue a notice to comply for
minor violations detected during inspection, to issue
a citation for noncompliance if such a finding is made
as the result of an investigation, and outlines the
processes to be followed by the institution and the
BPPE as a result.
60)Authorizes BPPE to place an institution on probation,
or suspend/revoke its approval to operate upon a
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finding of fraud or repeated violations of the Act
that have caused harm to students.
61)Authorizes the BPPE to make an emergency decision to
protect students, prevent misrepresentation to the
public, or prevent the loss of public funds or monies
paid by students, as specified.
62)Authorizes the BPPE to bring an action for equitable
relief for violations of the Act to supplement but not
supplant other legal remedies or penalties.
63)Authorizes an institution to request a hearing
pursuant to existing law if an adverse administrative
action is taken by the BPPE.
64)Authorizes individuals to file complaints with the
BPPE against an institution, requires the BPPE to take
action to ascertain facts and verify complaints and to
take appropriate administrative enforcement action,
and requires the BPPVE to order payment of appropriate
refunds/restitution to a student or group of students
if an institution caused them damage or loss through
violation of the Act.
65)Establishes that operation of an institution without
BPPE approval or provision of false information to
BPPE on an application as infractions and public
offenses.
66)Requires an institution to maintain an agent for
service of process within the state and to provide
specified information to the BPPE which must make this
information publicly available upon request.
67)Caps the fine for operating without BPPE approval at
$50,000.
68)Deems any institution subject to the Act to have
authorized BPPE or its accrediting agency to provide
the Attorney General (AG), district attorney, or city
attorney copies of all institutional documents and
other materials.
69)Provides that nothing in the Act precludes the
enforcement of rights or remedies under any other law,
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or limits or precludes the AG, a district attorney, or
a city attorney from taking any other legally
authorized action.
Reporting
70)Requires BPPE to provide annual progress updates to
the Legislature, as specified, in the form of
oversight hearings by appropriate policy and fiscal
committees.
71)Requires the Legislative Analyst's Office (LAO) to
conduct a comprehensive review of the BPPE, the
appropriateness of the exemptions provided in the Act,
and the extent to which BPPE has implemented the
provisions of the Act, and to report to the
Legislature and the Governor by October 1, 2013.
72)Requires the LAO to report on the exemption of
institutions accredited by a regional accrediting
agency by January 1, 2013, and to recommend whether to
continue, remove or adjust the exemption.
Termination
73)Repeals the Act on January 1, 2016.
74)Appropriates $580,000 from the Prior Act to BPPE to
fund five education administrator positions, to be
included in the annual budget for the BPPE.
STAFF COMMENTS
1) Double-referral . This bill was previously heard by
the Business, Professions and Economic Development
Committee (BP&ED) on July 6, 2009. The author
accepted a committee amendment, to be adopted in this
committee, to incorporate an exemption for "good
schools" which meet specified criteria regarding
accreditation, length of operation, fiscal solvency,
default rates on student loans, refund policies,
cancellation rights and non-profit status. Staff
notes that the "good schools" exemption existed under
the prior law. Staff recommends the bill be amended to
include the "good schools" exemption agreed to in
BP&ED.
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2) Author's amendments . The author seeks to amend the
bill to make several technical and clarifying
corrections. Staff recommends the attached list of
amendments be adopted.
The author also proposes amending the bill to prohibit
an institution from offering or granting a
doctoral-level degree program unless it is accredited,
arguing that it cannot be ensured that these programs
adequately prepare students in their field of study.
Unlike programs granted approval to operate by virtue
of their accreditation, these programs would be
subject to review by the BPPE before they could
legally operate in California. Additionally, section
94899 of the bill requires that an institution
offering programs that require licensing be approved
by the appropriate state licensing agency to conduct
that program (in this case, the California Board of
Psychologists). Given these two layers of review, it
is unclear why this amendment is necessary.
3) Recent history . During 2002, the BPPVE completed its
first Sunset Review before the Joint Legislative
Sunset Review Committee (JLSRC). In its 2003 report,
the JLSRC concluded that the statutes under which
BPPVE operated appeared complex, vague, and
contradictory, the time period for final approval was
often extremely long, and there was no clear rationale
for the varied exemptions and differing reporting
requirements among institutions.
After holding hearings to review the findings of the
JLSRC, the Legislature enacted SB 1544 (Figueroa,
Chapter 740, Statutes of 2004), which required the
Director of the Department of Consumer Affairs to
appoint an Operations and Administrative Monitor
(Monitor) to assess the BPPVE's administrative
operations and provisions of the Reform Act and to
report findings to the Legislature. In December 2005
the Monitor submitted a report outlining the problems
identified and recommending changes. In January 2006,
the Consumer Services Agency, the Department of
Consumer Affairs, and the staff of the Business
Professions and Economic Development Committee, began
meeting on a regular basis with the Monitor in an
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effort to develop and refine the law prior to its
sunset. The list of ensuing legislation attempting to
implement a new regulatory structure or maintain
elements of the prior law include:
SB 489 (Liu) generally stated legislative intent
regarding the regulation of private postsecondary
education. The measure was set for hearing in the
Business and Professions Committee in April 2009 but
was not heard.
SB 823 (Perata ) of 2008, which was vetoed by the
Governor, was similar to this bill and would have
re-established the Bureau with specified functions and
student protections.
AB 2746 (Niello ) of 2008, which was held in the
Assembly Appropriations Committee, was similar to this
bill.
AB 1182 (Niello ) of 2007, which was not heard in
committee, was similar to this bill.
AB 1525 (Cook, Chapter 67, Statutes of 2007) , stated
legislative intent regarding the protection of
students, allowed for the continuation of matters
pending before BPPVE, and provided for minimal
oversight of institutions by DCA until February 1,
2008.
SB 45 (Perata), Chapter 635, Statutes of 2007) ,
extended limited state oversight of private
postsecondary schools from February 1, 2008, to July
1, 2008.
AB 2810 (Liu) of 2006 was vetoed by the Governor, but
would have extended the sunset date of the Prior Act
for one year and established a working group to
develop recommendations for changes in the Prior Act.
SB 1473 (Figueroa) of 2006, which was held in the
Senate Appropriations Committee, would have revised
and recast the provisions of the Prior Act based on
the Monitor's recommendations.
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4) What if we don't pass this bill ? The private
postsecondary education sector has been unregulated
since July 2008. The Committee may wish to consider
the following:
Institutions accredited by either a national
or regional accrediting association may still
participate in federal student aid programs under
Title IV of the Higher Education Act, but currently
do so with no requirement to comply with any state
consumer protection provisions.
While the Boards of Psychology and Behavioral
Sciences have taken specific action to allow
graduates of schools approved under state BPPVE law
to sit for licensure exams for the next three
years, new students will be unable to sit for
licensing exams offered by those Boards, or state
licensure exams offered by other boards and bureaus
within the DCA in the absence of a state law.
A March 23rd, informational hearing held by
the BP&ED Committee entitled "The Role of Private
Education Institutions in Preparing California's
Diverse Workforce: Meeting the Challenges of our
Workforce and Job Training Needs" found that:
o California will receive $488 million
federal American Recovery Reinvestment Act (ARRA)
funds to supplement, not supplant the state's
workforce development activities.
o Key industries are facing shortages in
hiring workers with the minimum skills needed for
entry into the field.
o Private postsecondary schools face
difficulty in expanding their educational and
vocational programs due to the lack of state
regulation.
o Without access to private postsecondary
institutions' performance data, the efficacy and
role of these institutions in preparing skilled
workers is unknown.
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1) Exemptions and accreditation . The Prior Act and all
previous legislation dealing with BPPVE contained a
specific exemption for schools accredited by the
western regional accrediting agency (WASC). According
to information from the BPPVE, about 30 of the
approximately 300 private degree-granting institutions
which they regulated are accredited by a regional body
other than WASC. Challenges to this exemption arose
and in 2007, the US District Court in Daghlian v.
DeVry ruled that California's practice of solely
exempting WASC accredited schools from state oversight
by the BPPVE violated the Commerce Clause of the
federal Constitution. While the case is still on
appeal, this bill was recently amended to exempt
institutions that are accredited by a regional
accrediting agency in response to an oral opinion from
Legislative Counsel that the exemption of one regional
accrediting agency (WASC) could be determined to be
discriminatory.
2) Accreditation equals approval to operate . Some states
have implemented regulation of the private
postsecondary sector by authorizing certain
accrediting bodies to certify operations in the state.
Others provide a process by which the state itself
approves each institution. The Prior Act required
state approval in order to legally operate in
California. This bill grants approval to operate by
virtue of an institution's accreditation. However,
with specified exemptions, the accredited institution
is still subject to regulation and oversight by the
BPPE. Arguably, this process allows the BPPE to
facilitate the conduct of business by reputable
schools, and to focus its resources and efforts on
monitoring and taking appropriate enforcement action
against disreputable schools.
3) Reporting requirements . This bill establishes a number
of reporting requirements in order to ensure that the
new Act is effectively and efficiently implemented and
enforced. While the LAO can provide an objective,
data-driven assessment of the exemption policy, LAO
does not have the resources and experience necessary
to conduct the comprehensive review called for in the
bill. Staff recommends the bill be amended to
consolidate the provisions requiring the LAO to
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conduct two reports on exemptions into one report in a
single section of the bill. Staff further recommends
the bill be amended to require the comprehensive
review be done by the Bureau of State Audits and to
insert the following: "The bureau shall contract with
the Bureau of State Audits to conduct a performance
audit to evaluate the effectiveness and efficiency of
the bureau's operations consistent with the
requirements of this chapter. The Bureau of State
Audits shall report the results of the audit to the
Legislature and the Governor on or before August 1,
2013. "
4) Enhanced legislative oversight . Staff notes that
several bureaus within the DCA currently require
Senate confirmation of the appointed bureau chief,
including the Professional Fiduciaries Bureau, Bureau
of Automotive Repair, Bureau of Electronic and
Appliance Repair, and the prior Bureau for Private
Postsecondary and Vocational Education. Regulation of
the private postsecondary sector has been accompanied
by concerns over the effectiveness of consumer
protections as well as a lack of efficiency and
clarity in the bureau's operation. In light of this
problematic history, it may be prudent to provide the
Legislature an opportunity to raise any questions or
concerns regarding the functioning of the bureau under
the new law. Staff recommends the bill be amended on
page 22, line 33 to require Senate confirmation of the
bureau chief.
5) Data . This bill directs the BPPE to provide data
collected from the institutions to the California
Postsecondary Education Commission (CPEC).
Information from the private postsecondary education
sector is critical to the evaluation of workforce and
financial aid policy decisions. In order to
facilitate the usefulness of the information received
by the CPEC staff recommends the bill be amended on
page 24, line 9, to insert, "To the extent possible,
the bureau shall provide this information consistent
with that collected for IPEDS reporting, including
institutional characteristics, completions, annual
enrollments and graduation rates."
6) Last legislative effort . SB 823 (Perata) of 2008
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which was somewhat similar to this bill, was passed by
the Legislature but ultimately vetoed by the Governor,
whose message read, in pertinent part:
I have repeatedly stated that a reform act
must be written clearly, should not be subject
to varied interpretations, should treat
schools as uniformly as possible, and provide
reasonable roles and responsibilities for the
Bureau. Our collective objective should be to
successfully strike a balance between
protecting students, while being firm, yet
fair to schools. Unfortunately, this bill
does not meet those goals. Instead, this bill
would create a statute that would be a
challenge to successfully implement. If a
statute is not clearly drafted, reasonably
enforceable, or easily understandable to
students, schools, and regulators, no one is
well served??.I encourage the Legislature to
pass a bill early in the next session that
proposes a regulatory framework that can be
successful.
SUPPORT
American Massage Therapy Association - California Chapter
Faculty Association of California Community Colleges
(FACCC)
Goodwill Industries
License Instruction Schools
Valley Industry and Commerce Association
Western Association of Schools & Colleges Accrediting
Commission (WASC)
One individual
OPPOSITION
Civil Justice Association of California
Consumer Federation of California
Consumers Union
Savannah College of Art and Design and Park University
One individual
AB 48
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AB (48) Portantino
Technical and Clarifying Amendments
1. On page 22, lines 4-6, to change the sunset date for the
regional accrediting agency exemption from 2015 to 2016 to
conform with the sunset of the Act.
2. On Page 24, on line 21, after "students.", insert "The
advisory committee shall advise the bureau on the
administration, including annually reviewing the fee
schedule, licensing, and enforcement provisions under this
chapter."
3. On page 34, line 26, strike out "the student" and insert
"all students enrolling in such programs". On line 27,
before the period insert, ", including any applicable
coursework requirements established by the state. If the
requirements of the educational program exceed the minimum
requirements for state licensure, the institution shall
disclose this information, including a list of those
courses which are not required for state licensure"
4. On page 35 line 36, after "and" add "a description of the
instruction provided in each of the courses offered by the
institution,"
5. On page 37, line 37, after the period insert " In addition,
if the institution has a student brochure the institution
shall disclose the brochure to the student and to any
interested parties."
6. On page 37, line 29, after "transfer." Insert "If the
credits or degree you earn at this institution are not
accepted at the institution to which you seek to transfer,
you may be required to repeat some or all of your
coursework at that institution."
7. On page 38, line 26, delete "At least one" and insert
"All". Delete lines 27-31 and insert:
1) A description of how the figures described in
subdivisions (a) to (d), inclusive, are calculated or
a statement informing the reader of where he or she
may obtain a description of how the figures described
in subdivisions (a) to (d), inclusive, are calculated.
2) A statement informing the reader of where he
or she may obtain from the institution a list of the
employment positions determined to be within the field
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for which a student received education and training
for the calculation of job placement rates as required
by subdivision (b) is available to the student.
3) A statement informing the reader of where he
or she may obtain from the institution a list of the
objective sources of information used to substantiate
the salary disclosure as required by subdivision (d).
8. On Page 38, after line 34 insert: "(C) A student or any
member of the public may file a copliant about this
institution with the Bureau for Private Postsecondary
Education by call (toll free phone number) or by completing
a complaint form, which can be obtained on the Burea
website (web site address)."
9. On Page 40, after line 17 strike "statement" and insert
"statements". On line 19 before "Any" insert "(1)". After
line 24 insert "(2) A student or any member of the public
may file a copliant about this institution with the Bureau
for Private Postsecondary Education by call (toll free
phone number) or by completing a complaint form, which can
be obtained on the Burea website (web site address)."
10. On Page 39, line 21, strike out "BUYER'S" and insert
"STUDENT'S"
11. On page 40, after line 7 insert "(h) The transferability
disclosure required in the school catalog and specified in
94909(a)(15)."
12. On Page 44, line 35, after "may" delete "include" and
insert "separately state"
13. On Page 52, line 18, after (a) insert "The bureau shall
establish a toll free number staffed by a bureau employee
where a student or a member of the public may file a
complaint. Additionally, the bureau shall make a complaint
form available on its website. (b)"
14. On page 53, after line 20, add "Section 94944.6 Within 30
days of receiving written notice from the bureau, the
Attorney General, any district attorney or city attorney,
or the Student Aid Commission, an accrediting agency shall
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provide the requesting official with all documents or other
material concerning an institution accredited by that
agency that are designated specifically or by category in
the written notice."