BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 573 (Medina) - Higher education: campus closures: Corinthian
Colleges.
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|Version: August 18, 2015 |Policy Vote: B., P. & E.D. 7 - |
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|Urgency: Yes |Mandate: Yes |
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|Hearing Date: August 27, 2015 |Consultant: Jillian Kissee |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill
Summary: This bill, an emergency measure, provides various
forms of assistance to students impacted by the recent closure
of the Heald, Everest and Wyotech campuses owned by Corinthian
Colleges Inc. (CCI) and operated in California.
Fiscal
Impact:
California Community Colleges: $100,000 for allocation to a
community college district to conduct a statewide media
campaign targeting students affected by the closure of CCI.
Potential cost pressures to backfill the loss of an unknown
amount of fee revenue to the extent there is an increase in
the statewide proportion of students receiving fee waivers due
to this bill. This bill also allows campuses to determine
AB 573 (Medina) Page 1 of
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their own criteria for financial need which qualifies affected
CCI students to be exempt from fees. (Proposition 98)
Restoration of Financial Aid Award Years: Approximately $9.6
million to restore Cal Grant awards for affected students for
two years ($7.9 to restore one year and $1.7 to restore the
second year). (General Fund)
STRF Claims Payout to Affected Students: $8.2 million
annually, until fiscal year 2018-19, for a total of $32.7
million in Student Tuition Recovery Fund (STRF) to be offset
by increases in fees that generate $6.9 million in the 2015-16
fiscal year and $9.2 million annually, until the 2018-19
fiscal year. (Special funds)
STRF Claims Processing: $1.5 million in the 2015-16 fiscal
year and $1.3 million annually until the 2018-19 fiscal year
to support 15 positions to process approximately 1,800 claims
at the Bureau of Private Postsecondary Education. (Special
funds)
Single Point of Contact: Unknown cost pressures to the
Department of Justice potentially in the hundreds of thousands
to low millions for additional staff to be single point of
contact for specified institutions to the extent it is
designated as the single point of contact by the Governor.
Potential significant additional costs for the entity
designated by the Governor to be the single point of contact
for all other institutions. (General Fund)
Legal Assistance Grants: $1.3 million appropriation from the
STRF. (Special funds)
Author
Amendments: Remove distance education programs from the bill.
Narrow the expansion of those eligible for payment from the STRF
to students affected by the closure of the Heald campus.
Require the Governor to establish a single point of contact to
respond to each closure of an institution, as specified. Change
the funding source of the legal assistance grants to the STRF.
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