BILL ANALYSIS Ó
AB 634
Page 1
Date of Hearing: April 9, 2013
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Das Williams, Chair
AB 634 (Gomez) - As Amended: April 1, 2013
SUBJECT : Private postsecondary education.
SUMMARY : Requires the Bureau for Private Postsecondary
Education (BPPE) to promulgate regulations to clarify the
definition of avocational education for the purpose of the
statute that establishes BPPE and its authority.
EXISTING LAW :
1)Under the Act of 2009, establishes BPPE within the Department
of Consumer Affairs (DCA) and provides for BPPE oversight and
regulation of California private postsecondary institutions.
(Education Code §94820)
2)Provides for numerous exemptions from oversight by BPPE (EC
§94874), including
a) An institution that offers solely avocational or
recreational educational programs.
b) An institution offering test preparation for
examinations required for admission to a postsecondary
educational institution or continuing education or license
examination preparation, if the institution or the program
is approved, certified, or sponsored by a government
agency, a state-recognized professional licensing body, or
a bona fide trade, business, or professional organization.
c) An institution that does not award degrees and that
solely provides educational programs for total charges less
than $2,500, when no part of the total charges is paid from
state or federal student financial aid programs.
d) A flight instruction provider or program that does not
require the upfront payment of tuition or fees and does not
require students to enter into a contract of indebtedness
in order to receive training (EC § 94874.3)
3)Requires the Legislative Analyst's Office (LAO), by October 1,
AB 634
Page 2
2013, to report to the Legislature and the Governor on the
appropriateness of the exemptions provided by the bill. (EC
§94949)
4)Sunsets the provisions of the Act on January 1, 2015. (EC
§94950)
FISCAL EFFECT : Unknown
COMMENTS : This bill is double-referred to the Business,
Professions and Consumer Protection Committee.
Background . The state's program for regulation of private
postsecondary and vocational education institutions has been
plagued by problems for the past 20 years. After numerous
legislative attempts to remedy the laws and structure governing
regulation of private postsecondary institutions, AB 48
(Portantino) was enacted in January 1, 2010, to make many
substantive changes that both created a new, solid foundation
for oversight and responded to the major problems with the
statute and oversight body. The Act, as created by AB 48,
requires all unaccredited colleges in California to be approved
by BPPE and all nationally accredited colleges to comply with
numerous student protections. It also establishes prohibitions
on false advertising and inappropriate recruiting. The Act
requires disclosure of critical information to students such as
program outlines, graduation and job placement rates, and
license examination information, and ensures colleges justify
those figures. The Act also guarantees students can complete
their educational objectives if their institution closes its
doors, and most importantly, it gives BPPE an array of
enforcement tools to ensure colleges comply with the law.
Need for the bill . According to the author, there is confusion
as to whether non-vocational English language training programs
for nonimmigrant students in the U.S. on a F-1 student visa are
"avocational education" for the purposes of the Act. The author
argues that while avocational schools are exempt from the bill,
regulations adopted by BPPE have led some English language
schools to believe they are subject to the Act. Since these
schools do not provide degrees, do not promise employment, and
do not receive federal financial aid (Title IV funds), none of
the traditional consumer protection issues apply to these
schools.
AB 634
Page 3
Regulatory process . The Administrative Procedure Act (APA)
establishes rulemaking procedures and standards for state
agencies in California, including BPPE, which are designed to
provide the public with a meaningful opportunity to participate
in the adoption of state regulations and to ensure that
regulations are clear, necessary and legally valid. The APA is
found in the Government Code § 11340 et seq. State regulations
must also be adopted in compliance with regulations adopted by
Office of Administrative Law (California Code of Regulations,
Title 1, sections 1-280).
Regulations in question . Adopted in 2010, the regulations
defining avocational education [California Code of Regulations,
Title 5, section 7000 (k)] include categories of excluded
activities as well as exceptions to those categories. The
second exemption covers entities that assist students learning
English as a second language unless the institution "exclusively
enrolls students for an intensive English program that is
touristic in nature, and provides for transportation, housing
and cultural and recreational activities or enhance language
skills for any business or occupational purpose."
Legislation is not needed to change state regulations. BPPE
initiates and adopts regulations in accordance with existing law
and regulation, described above. Currently, BPPE is
implementing regulations for AB 2296 (Block), Chapter 585,
Statutes of 2012. It is staff's understanding that the sponsor
of this bill has been in contact with BPPE to request these
regulatory changes, and these conversations are continuing.
Report on existing exemptions . The LAO will issue a report in
October of this year on the appropriateness of the exemptions
included in the Act. For the most part, the Legislature has
refrained from approving additional exemptions before
considering the LAO's recommendations.
Staff comments . It is staff's understanding that this bill is a
vehicle to be used in the event that representatives of
intensive English language programs and BPPE reach the
conclusion that a statutory solution is necessary to address
this issue. The author has committed to staff that this bill is
not intended to pressure BPPE to exempt English language
training programs from the Act but merely to facilitate a
resolution in the event an agreement can be reached in a timely
fashion.
AB 634
Page 4
Related legislation . SB 619 (Fuller), Chapter 309, Statutes of
2011, exempts flight schools that meet specified conditions from
the oversight by the Bureau.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960