BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 1247 (Lieu) - California Private Postsecondary Education Act Amended: As introduced Policy Vote: Education 9-0, BP&ED 8-1 Urgency: No Mandate: No Hearing Date: May 12, 2014 Consultant: Jacqueline Wong-Hernandez This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1247 extends the California Private Postsecondary Education Act of 2009, which governs the regulation of private postsecondary educational institutions and the operation of the Bureau for Private Postsecondary Education (BPPE), until January 1, 2019. Fiscal Impact: Approximately $11 million (Special Fund) annually, to fund the BPPE at the level proposed in the Governor's 2014-15 Budget. The BPPE is funded by fees collected from institutions it regulates, as well as certain student fees (for the Student Tuition Recovery Fund it administers). Background: Existing law establishes the California Private Postsecondary Education Act (CPPE Act) of 2009, which provides for the approval, regulation, and enforcement of certain types of private postsecondary educational institutions by the BPPE within the Department of Consumer Affairs (DCA), until January 1, 2015. (Education Code § 94800-94950) Proposed Law: SB 1247 extends the California Private Postsecondary Education Act of 2009, which governs the regulation of private postsecondary educational institutions and the operation of the Bureau for Private Postsecondary Education (BPPE), until January 1, 2019. Related Legislation: SB 1069 (Torres) requires the BPPE to adopt regulations to make students who utilize a Cal Grant, a Pell Grant, or both, eligible to apply for payment from the Student Tuition Recovery Fund to those grant programs. That bill will also be heard din the Committee on May 12, 2014. SB 1247 (Lieu) Page 1 SB 498 (Liu) 2011 would have abolished the BPPE and transferred its powers and duties under the CPPE Act to the California Postsecondary Education Commission. SB 498 was held in the Senate Committee on Business, Professions and Economic Development. AB 48 (Portantino) Ch. 310/2009 was established the CPPE Act of 2009, which took effect January 1, 2010. It established the current regulatory structure for oversight of private postsecondary educational institutions operating with a physical presence in California, and the BPPE. Staff Comments: The BPPE regulates private postsecondary institutions, provides oversight, and enforces the provisions of the CPPE Act. The BPPE also investigates unlicensed activity, and administers the Student Tuition Recovery Fund. Without a sunset extension, the BPPE's authority will sunset with the CPPE Act, and the fees it collects to fund itself will ceas The Governor's proposed 2014-15 budget would appropriate approximately $11 million in state operations funding to the BPPE (Special Fund). This proposal increases BPPE funding by $1.6 million (for 11 new PYs) above the 2013-14 level; the 2013-14 Budget Act appropriation was approximately $1.4 million more than the previous year.