BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 634
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          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  








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            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  








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            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  








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            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