BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 2099
Author: Frazier (D), et al.
Amended: 8/22/14 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 6-0, 6/25/14
AYES: Liu, Wyland, Correa, Hancock, Huff, Monning
NO VOTE RECORDED: Block
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 62-4, 5/29/14 - See last page for vote
SUBJECT : Postsecondary education: Title 38 awards
SOURCE : Author
DIGEST : This bill establishes minimum student outcome
requirements for postsecondary institutions approved by the
California State Approving Agency for Veterans Education
(CSAAVE) in order to participate in federal veterans' education
benefits.
Senate Floor Amendments of 8/22/14 clarify the accreditation and
approval requirements for public and private postsecondary
educational institutions to obtain eligibility or remain
eligible to receive Title 38 funds.
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ANALYSIS :
Existing law:
1.Establishes the California Department of Veterans Affairs to
provide support to veterans living in California by ensuring
that veterans and their families receive the state and federal
benefits and services to which they are entitled. The CSAAVE
operates under contract with the U.S. Department of Veteran
Affairs. Under the authority of federal law, Title 38 US
Code, the CSAAVE operates as part of the government of the
State of California to approve or disapprove veterans'
education and training programs, prevent abuses, and promote
quality veterans' education by evaluating and monitoring
education and training programs.
2.Establishes the Bureau for Private Postsecondary Education
(BPPE) to provide oversight of private postsecondary
educational institutions operating in California. Established
by AB 48 (Portantino, Chapter 310, Statutes of 2009) which
became effective January 1, 2010, made many substantive
changes that created a foundation for oversight and gave the
new BBPE an array of enforcement tools to ensure schools
comply with the law.
This bill establishes minimum student outcome requirements for
postsecondary institutions approved by the CSAAVE to participate
in federal veterans' education benefits. Specifically, this
bill:
1.Establishes the Title 38 Funding Program and establishes
CSAAVE as responsible for approving qualifying institutions
seeking to enroll veterans or others eligible for Title 38
awards in accordance with federal law, the provisions of this
bill, and any other reasonable criteria established by CSAAVE.
2.Requires CSAAVE to do all of the following:
A. Notify initial Title 38 recipients seeking to attend, or
attending, an institution that is ineligible for Title 38
awards that the institution is ineligible for Title 38
awards for the academic year for which the student received
an award.
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B. Provide initial and renewal Title 38 recipients seeking
to attend, or attending an institution that is ineligible
with a complete list of all California postsecondary
educational institutions at which the student would be
eligible to receive a Title 38 award.
C. Commencing for purposes of the 2016-17 award year, and
every year thereafter, certify whether a private
postsecondary educational institution has been issued an
approval to operate from the BPPE.
1.Specifies it is reasonable for CSAAVE to require a private
postsecondary institution to be issued an approval to operate
from the BPPE.
2.Clarifies compliance requirements for accredited
degree-granting and nondegree-granting institutions.
3.Clarifies criteria an unaccredited degree granting institution
shall satisfy in order to remain eligible to receive Title 38
awards.
4.Permits a veteran student attending an unaccredited degree
granting institution to complete their degree program using
Title 38 funds, if the veteran was enrolled prior to January
1, 2016. If an institution fails to satisfy accreditation
requirements, as specified, a veteran student enrolled prior
to January 1, 2017, may still complete their degree program
using Title 38 funds.
5.Prohibits an unaccredited degree-granting institution from
enrolling new Title 38 eligible students after January 1,
2016, if the institution does not satisfy candidacy or
pre-accreditation requirements, as specified. An unaccredited
degree-granting institution that does not satisfy specified
accreditation requirements shall not enroll any new Title 38
students after January 1, 2017, without first providing
written disclosure that the student will not be able to use
their Title 38 award because the institution does not satisfy
accreditation requirements.
6.Requires an institution eligible for Title 38 awards be one of
the following: (a) a campus of the CCCs, CSU, or the UC; (b)
an independent nonprofit institution of higher education; (c)
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for the 2015-16 award year, a private postsecondary
educational institution, as specified; (d) for the 2016-17 and
annually thereafter, a private postsecondary educational
institution that has approval to operate from the BPPE and has
its approval to operate certified by CSAAVE; (e) an
institution that is accredited by the Accrediting Commission
for Senior Colleges and Universities, Western Association of
Schools and Colleges, or the Accrediting Commission for
Community and Junior Colleges, Western Association of Schools
and Colleges and that satisfies specified requirements
provided in Education Code Section 94947, as specified.
7.Provides that #8(e) above becomes operative only if SB 1247
(Lieu) is enacted and adds Education Code Section 94947 to the
code.
8.Requires CSAAVE starting in 2016-17, and every year
thereafter, to certify whether a private postsecondary
educational institution has been issued approval to operate
from the BPPE.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, this bill
places new requirements on both public and private entities,
relative to their interaction with Title 38 awards and
institutions that participate in the program.
CSAAVE: Likely minor, but potentially significant workload
for CSAAVE to verify that institutions seeking to participate
in Title 38 awards meet all of the new requirements. Likely
minor costs to provide notifications to Title 38 award
recipients.
BPPE: In 2015-16, approximately $93,000 in net revenue
($200,000 in gross revenue, off-set by one personnel year at
$106,000) from application fees ($5,000 per institution) paid
by any private postsecondary institution that is currently
exempt from BPPE oversight, but will now need to seek an
"approval to operate" certification from the BPPE. Ongoing,
this will also require those institutions to pay an annual fee
of 0.75% of their annual revenue, not to exceed $25,000. The
BPPE estimates annual revenue of $1 million from these fees.
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SUPPORT : (Verified 8/25/14)
American Legion, Department of California
AMVETS
California Association of County Veterans Service Officers
California Labor Federation
California State Commanders Veterans Council
Children's Advocacy Institute
Military Officers Association of America, California Council of
Chapters
The Center for Public Interest Law
University of California
Veteran's Legal Clinic, University of San Diego
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
ASSEMBLY FLOOR : 62-4, 5/29/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Roger Hernández, Holden, Jones-Sawyer,
Levine, Lowenthal, Maienschein, Medina, Mullin, Muratsuchi,
Nazarian, Nestande, Pan, Patterson, Perea, John A. Pérez, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski,
Williams, Yamada, Atkins
NOES: Allen, Bigelow, Jones, Olsen
NO VOTE RECORDED: Achadjian, Conway, Dahle, Donnelly, Beth
Gaines, Harkey, Linder, Logue, Mansoor, Melendez, Wagner,
Waldron, Wilk, Vacancy
PQ:e 8/25/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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