BILL ANALYSIS Ó AB 634 Page 1 Date of Hearing: April 16, 2013 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Richard S. Gordon, Chair AB 634 (Gomez) - As Amended: April 1, 2013 SUBJECT : Private postsecondary education: avocational education. SUMMARY : Requires the Bureau for Private Postsecondary Education (BPPE) to promulgate regulations to clarify the definition of avocational education, as used in the California Private Postsecondary Act of 2009 (Act). EXISTING LAW : 1)Establishes the Act, and provides for the oversight and regulation of California's private postsecondary educational institutions by the BPPE under the Department of Consumer Affairs. (Education Code [EDC] Section 94820) 2)Provides for numerous exemptions from BPPE oversight, including an institution that offers solely avocational or recreational educational programs. (EDC 94874) 3)Requires the Legislative Analyst's Office (LAO), by October 1, 2013, to report to the Legislature and the Governor on the appropriateness of the exemptions contained in the Act. (EDC 94949) 4)Defines "avocational education" to mean education offered for the purpose of personal entertainment, pleasure, or enjoyment. (EDC 94818) FISCAL EFFECT : Unknown COMMENTS : 1)Purpose of this bill . This bill requires the BPPE to promulgate regulations to clarify the definition of 'avocational' (or non-professional) education. The author and sponsor have been working with the BPPE to clarify that English training programs used by international tourists for recreational purposes are considered avocational and therefore AB 634 Page 2 exempt from the Act and BPPE oversight. This bill is sponsored by a coalition of institutions that provide non-academic, recreational English language services. 2)Author's statement . According to the author, "There is confusion as to whether non-vocational English language training programs for non-immigrant students in the United States (U.S.) on a [non-work] F-1 student visa [are] 'avocational education' for the purposes of the Act. Avocational schools are exempt from BPPE oversight, but currently, as a result of confusing regulatory language, some of these schools believe they are regulated by the BPPE, while others do not. These schools do not provide degrees, do not promise employment, and do not receive any [federal student aid] funding, and thus, none of the traditional consumer protection issues apply to these schools. This bill would clarify that such schools fall within the definition of 'avocational education.'" 3)BPPE . The BPPE is responsible for the implementation of the Act and provides oversight of California's private postsecondary educational institutions. Currently, BPPE regulates approximately 1,876 institutions that provide education beyond high school and are not public institutions. Many of the institutions governed by the Act are vocational institutions offering skills training or entry-level positions in a variety of industries and trades, and others offer degree programs that are academic in nature, such as psychology, computer science, and business. 4)Confusion over BPPE regulations defining "avocational education" . Existing law under the EDC defines "avocational education" as "education offered for the purpose of personal entertainment, pleasure, or enjoyment" that is not subject to BPPE oversight. However, BPPE regulations define "education offered for purpose of personal entertainment, pleasure or enjoyment" to mean education offered for the purposes of play, amusement or relaxation, including education offered for the purpose of teaching the fundamentals, skills or techniques of a hobby or activity." That definition does not include education that facilitates the development of learning skills or language proficiency to assist a student to learn English as a second language unless the institution exclusively enrolls students AB 634 Page 3 for an intensive English program that is touristic in nature, and provides for transportation, housing, and cultural and recreational activities. The author contends that this has created confusion among institutions offering non-vocational English language instruction over whether they are subject to BPPE oversight. 5)Regulations . The Administrative Procedure Act establishes rulemaking procedures for state agencies, including the BPPE. While BPPE can already promulgate regulations and legislation is not needed to change regulations, it is the understanding of Committee staff that the author and sponsor have been working with the BPPE through the regulatory process to clarify the definition of "avocational education" and that this bill is a vehicle in the event a statutory solution is necessary. 6)Report on existing exemptions . The LAO will issue a report this October 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. 7)Arguments in support . According to the sponsors, a coalition of organizations providing English language services, "In California, there are educational entities that provide non-vocational English language training programs to non-immigrant students in the U.S. under federal law? "It is doubtful that BPPE regulation is appropriate for these entities as they do not promise or provide degrees or diplomas. They do provide students [with] certificates of attendance to enable students to verify to the federal government that they were enrolled in an English language training program for purposes of visa eligibility, but the certificates themselves do not otherwise represent the completion of an educational program typically associated with a degree or diploma. The objective of these entities is to provide an opportunity for foreign students to lawfully enter the U.S. as students, experience American culture, and enjoy tourist destinations near their school location, while improving their English skills for personal benefit. "These entities do not offer courses designed to lead to AB 634 Page 4 employment and with the limited exception of being allowed to work on campus, the students are generally prohibited by the terms of their visa from working in the U.S. and must return to their home country within 60 days [following] the conclusion of their studies." 8)Double-referred . This bill was heard by the Assembly Higher Education Committee on April 9, 2013 and approved by a 11-0 vote. REGISTERED SUPPORT / OPPOSITION : Support Brandon College (sponsor) Converse International School of Languages LLC (sponsor) EC Language Centres (sponsor) EF International Language Schools, Inc. (sponsor) ELC, ELS Educational Services, Inc. (sponsor) Embassy CES (sponsor) English Studies Institute (sponsor) FLS (sponsor) The ILSC Education Group, Inc. (sponsor) Language Studies International (sponsor) St. Giles International (sponsor) The Language Company (sponsor) Opposition None on file. Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916) 319-3301