BILL ANALYSIS Ó AB 634 Page 1 Date of Hearing: May 1, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 634 (Gomez) - As Amended: April 1, 2013 Policy Committee: Higher EducationVote:11-0 B&P 12-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the Bureau for Private Postsecondary Education (BPPE) to promulgate regulations to clarify the definition of avocational education for purposes of the California Private Postsecondary Act of 2009. FISCAL EFFECT Minor absorbable costs for the bureau to promulgate the clarifying regulations. COMMENTS 1)Background . The BPPE is responsible for the implementation and enforcement of the Private Postsecondary Act. The BPPE currently regulates about 1,900 non-public institutions, many of which are vocational institutions offering skills training or entry-level positions in a variety of industries and trades, while others offer degree programs that are academic in nature, such as psychology, computer science, and business. The Act provides numerous exemptions from BPPE oversight, including for institutions that offer solely avocational or recreational educational programs. 2)Purpose . The author and sponsors-a coalition of institutions that provide non-academic, recreational English language services-have been working with the BPPE to clarify that AB 634 Page 2 English training programs used by international tourists for recreational purposes are considered avocational and therefore exempt from the Act and BPPE oversight. According to the author,"? 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." AB 634 is intended to clarify that such schools fall within the definition of avocational education and therefore are exempt from the Act. It is staff's understanding that this bill is a vehicle to be used only in the event that sponsors and the BPPE reach a conclusion that a statutory solution is necessary to address this issue. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081