BILL ANALYSIS Ó
AB 1013
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Date of Hearing: March 29, 2011
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 1013 (Committee on Higher Education) - As Introduced:
February 18, 2011
SUBJECT : Private postsecondary education.
SUMMARY : Clarifies provisions of the Private Postsecondary
Education Act of 2009 (Act). Specifically, this bill :
1)Allows the Bureau for Private Postsecondary Education (Bureau)
to publish a list of eligible examinations for
ability-to-benefit (ATB) students, if the United States
Department of Education (USDE) does not have an approved
examination relevant to the specific occupational training
program.
2)Ensures students are provided until the first class day or the
seventh day after enrollment, whichever is later, to cancel a
program and receive a refund.
EXISTING LAW establishes the Bureau within the Department of
Consumer Affairs (DCA) and provides for Bureau oversight and
regulation of California private postsecondary institutions.
FISCAL EFFECT : Unknown
COMMENTS : Background : AB 48 (Portantino), Chapter 310,
Statutes of 2009, established the Act and created the Bureau
within DCA for the purpose of regulating private postsecondary
educational institutions that provide educational services in
California. This bill would enact the following changes to the
Act:
1)Allows the Bureau to authorize ATB tests if a USDE test is not
available.
Background : Under Federal law, students without a high school
diploma or General Educational Development (GED) can qualify
for federal Title IV loans, grants, and campus-based aid if
they pass an independently administered test of their basic
math and English skills, called an ATB test. The intent of
the test is to measure whether students have the basic skills
AB 1013
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needed to benefit from higher education and succeed in the
institution. Tests are approved by the USDE and administered
by an independent party. Under Title IV, students must pass
an ATB before receiving any federal funds.
The Act : The Act requires all institutions covered by the Act
to administer ATB tests to students who have not obtained
secondary education. Students must pass a USDE-approved ATB
test before enrolling in the institution.
Purpose of this provision : It has recently come to the
attention of the Committee that certain training programs may
not have relevant USDE-approved tests. This bill would allow
the Bureau to publish a list of eligible examinations for ATB
students if the USDE does not have an approved examination
relevant to specific occupational training programs.
2)Corrects a technical error regarding refund calculations.
Purpose of this provision : There is a conflict in the Act
regarding cancellations and refunds. The intent of AB 48 was
to allow students to cancel a program and receive a 100%
refund, less a deposit not to exceed $250, until the first
class day or the seventh day after enrollment, whichever is
later. However, one section referencing this refund policy
inadvertently reads that students shall have until the first
class day or the seventh class day after enrollment to cancel
a program. This bill corrects this error and conflict.
Prior Legislation : AB 1889 (Portantino) of 2010 contained the
same technical provisions that are contained in this bill. In
addition, AB 1889 contained provisions regarding doctoral
degrees offered by unaccredited institutions, the calculation of
placement rates, and Bureau employment requirements. AB 1889
was vetoed by Governor Schwarzenegger due to concerns over
Bureau employment requirements.
REGISTERED SUPPORT / OPPOSITION :
Support
None on File
Opposition
AB 1013
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None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960