BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1247|
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THIRD READING
Bill No: SB 1247
Author: Lieu (D), et al.
Amended: As introduced
Vote: 21
SENATE BUSINESS, PROF. & ECONOMIC DEVELOP. COMM. : 8-1, 4/28/14
AYES: Lieu, Berryhill, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla
NOES: Wyland
SENATE EDUCATION COMMITTEE : 8-0, 4/30/14
AYES: Liu, Block, Correa, Galgiani, Hancock, Hueso, Huff,
Monning
NO VOTE RECORDED: Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Private postsecondary education: California Private
Postsecondary
Education Act of 2009
SOURCE : Author
DIGEST : This bill extends the operation of the Bureau for
Private Postsecondary Education (BPPE) until January 1, 2019.
ANALYSIS : Existing law establishes the California Private
Postsecondary Education Act of 2009 (Act).
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This bill extends the operation of BPPE until January 1, 2019.
Background
This bill is one of six "sunset bills" authored by the Chair of
the Senate Business, Professions and Economic Development
Committee.
In 2014, the Senate Business, Professions and Economic
Development Committee and the Assembly Business, Professions and
Consumer Protection conducted joint oversight hearings to review
nine regulatory entities: Bureau of Automotive Repair; Bureau
of Home Furnishings and Thermal Insulation; BPPE; California
Massage Therapy Certification program; California Board of
Acupuncture; California Tax Preparer program; Dental Hygiene
Committee of California; Professional Fiduciaries Bureau; and
the Structural Pest Control Board.
The Committees began their review of the aforementioned
licensing agencies in March and conducted two days of hearings
and then more recently held a hearing on the BPPE. This bill,
and the accompanying sunset bills, are intended to implement
legislative changes as recommended in the Committee's Background
Papers prepared for each agency and program reviewed by the
Committees for this year.
Extension of the Sunset Date for BPPE . At a time when
California's public institutions have reduced enrollments due to
major budget cuts, private postsecondary education institutions
are in a position to play a role in providing access and
education for otherwise underserved students. As the number of
students served by private postsecondary institutions has
increased, so has the focus on fraudulent practices and low
academic standards. There have been numerous high-profile
federal investigations into the practices of for-profit
institutions in recent years. Among the most notable are the
United States Government Accountability Office series of
investigations raising concerns regarding the amount of federal
student aid dollars directed to for-profit institutions, the
misleading and deceptive recruitment practices at certain
institutions, and substandard academic performance expectations
in some for-profit programs. The challenge for the Legislature
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is to ensure the continuance of an oversight structure that
supports innovative programs while also preventing predatory
practices, which this bill aims to do by extending the operative
date for the Act.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, 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).
SUPPORT : (Verified 5/23/14)
American Career College/West Coast University
California Association of Private Postsecondary Schools
ARGUMENTS IN SUPPORT : According to the author's office, this
bill is necessary to extend the sunset date of BPPE in order to
ensure continued oversight of private postsecondary institutions
that supports quality, innovative programs which are approved in
a timely manner, while also making sure a robust government
structure prevents predatory practices and promotes student
success.
MW:nk 5/23/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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