BILL ANALYSIS Ó
AB 634
Page 1
ASSEMBLY THIRD READING
AB 634 (Gomez)
As Amended April 1, 2013
Majority vote
HIGHER EDUCATION 11-0 BUSINESS & PROFESSIONS
12-0
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|Ayes:|Williams, Bloom, Fong, |Ayes:|Gordon, Bocanegra, |
| |Jones-Sawyer, Levine, | |Campos, Dickinson, |
| |Waldron, Medina, Olsen, | |Eggman, Hagman, Holden, |
| |Quirk-Silva, Weber, Wilk | |Maienschein, Mullin, |
| | | |Skinner, Ting, Wilk |
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APPROPRIATIONS 15-1
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|Ayes:|Gatto, Harkey, Bocanegra, |
| |Bradford, Ian Calderon, |
| |Campos, Eggman, Gomez, |
| |Hall, Holden, Linder, |
| |Pan, Quirk, Wagner, Weber |
| | |
|-----+--------------------------|
|Nays:|Donnelly |
| | |
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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)Establishes, under the California Private Postsecondary Act of
2009 (Act), BPPE within the Department of Consumer Affairs
(DCA) and provides for BPPE oversight and regulation of
California private postsecondary institutions. (Education
Code (EC) Section 94820)
2)Provides for numerous exemptions from oversight by BPPE (EC
Section 94874), including:
AB 634
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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 Section 94874.3)
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 provided by the bill. (EC
Section 94949)
4)Sunsets the provisions of the Act on January 1, 2015. (EC
Section 94950)
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs for this bill would be minor absorbable costs
for BPPE to promulgate the clarifying regulations.
COMMENTS : 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), Chapter 310, Statutes of 2009, 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
AB 634
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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.
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.
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.
Related legislation: SB 619 (Fuller), Chapter 309, Statutes of
2011, exempts flight schools that meet specified conditions from
the oversight by BPPE.
Analysis Prepared by : Jeanice Warden / HIGHER ED. / (916)
319-3960
FN: 0000359