BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
                              Senator Jerry Hill, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 752          Hearing Date:    June 22,  
          2015
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          |Author:   |Salas                                                 |
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          |Version:  |April 23, 2015                                        |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sarah Mason                                           |
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            Subject:  Private postsecondary education: California Private  
                        Postsecondary Education Act of 2009.


          SUMMARY:  Requires the Bureau for Private Postsecondary  
          Education, by July 1, 2016, to review the list of examinations  
          prescribed by the U.S. Department of Education and if the Bureau  
          determines there is no examination appropriate for  
          ability-to-benefit students with limited English proficiency, to  
          approve an alternative examination for these students.    

          Existing law:
          
          1)Establishes the California Private Postsecondary Education Act  
            (Act) of 2009 until January 1, 2015, and requires the Bureau  
            of Private Postsecondary Education (Bureau) within the  
            Department of Consumer Affairs to, among other things, to  
            review, investigate and approve private postsecondary  
            institutions, programs and courses of instruction pursuant to  
            the Act and authorizes the Bureau to take formal actions  
            against an institution/school to ensure compliance with the  
            Act and even seek closure of an institution/school if  
            determined necessary.  The Act also provides for specified  
            disclosures and enrollment agreements for students,  
            requirements for cancellations, withdrawals and refunds, and  
            that the Bureau shall administer the Student Tuition Recovery  
            Fund to provide refunds to students affected by the possible  
            closure of an institution/school.   (Education Code (EC) §  
            94800 et seq.)







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          2) Defines "Ability-to-benefit student" (ATB) as a student who  
             does not have a certificate of graduation from a school  
             providing secondary education, or a recognized equivalent of  
             that certificate.  Provides that before an ATB student may  
             execute an enrollment agreement, the institution shall have  
             the student take an independently administered examination  
             from the list of examinations prescribed by the United States  
             Department of Education (USDE).  Specifies that the student  
             may not enroll unless he or she achieves a score, as  
             specified by USDE, demonstrating that the student may benefit  
             from the education and training being offered.   Authorizes  
             the Bureau, if USDE does not have a list of relevant  
             examinations that pertain to the intended occupational  
             training, to publish its own list of acceptable examinations  
             and required passing scores.  (EC § 94811 and EC § 94904)

          3) Specifies that an enrollment agreement shall be written in  
             language that is easily understood and that if English is not  
             the student's primary language, and the student is unable to  
             understand the terms and conditions of the enrollment  
             agreement, the student shall have the right to obtain a clear  
             explanation of the terms and conditions and all cancellation  
             and refund policies in his or her primary language.  Also  
             specifies that if the recruitment leading to enrollment was  
             conducted in a language other than English, the enrollment  
             agreement, disclosures, and statements shall be in that  
             language.  (EC § 94906)

          This bill:  Requires the Bureau, on or before July 1, 2016, to  
          review the list of examinations prescribed by USDE and if the  
          bureau determines there is no examination on the list  
          appropriate for ATB students with limited English proficiency,  
          requires the Bureau to approve an alternative examination for  
          these students.  Authorizes the Bureau, when approving the  
          alternative examination, to consider the Comprehensive Adult  
          Student Assessment System (CASAS) examination.

          
          FISCAL EFFECT:  This bill is keyed "fiscal" by Legislative  
          Counsel.  According to the Assembly Committee on Appropriations  
          analysis dated May 6, 2015, this bill will result in minor and  
          absorbable costs to the Bureau.   









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          COMMENTS:
          
          1. Purpose.  The  Author  is the  Sponsor  of this bill.  According  
             to the Author, in 2012, out of concerns that existing  
             USDE-approved ATB examinations were not appropriate for  
             English as a second language students, the Act was amended to  
             authorize the Bureau to publish a list of alternative  
             examinations if the USDE does not have a relevant  
             examination.  The Author states that the BPPE has yet to  
             publish its own list and many working adults that do not have  
             high school diplomas are seeking to enroll in job and skills  
             training programs, but are having difficulty passing the  
             USDE-approved ATB examinations.  According to the Author,  
             this problem is disproportionality affecting those with  
             limited English proficiency and low income communities.  

          2. Background.  
          
             a)   The California Private Postsecondary Education Act and  
               Bureau for Private Postsecondary Education.  After numerous  
               legislative attempts to remedy the laws and structure  
               governing regulation of private postsecondary institutions  
               in California, AB 48 (Portantino, Chapter 310, Statutes of  
               2009), established the Act and created the Bureau within  
               DCA for the purpose of regulating private postsecondary  
               educational institutions that provide educational services  
               in California.  The Act made many substantive changes that  
               both created a new, solid foundation for oversight and  
               responded to the major problems with the Former Act.  The  
               Act requires all unaccredited colleges in California to be  
               approved by the Bureau, sets timelines by which  
               unaccredited schools offering degrees shall become  
               accredited, and requires all nationally accredited colleges  
               to comply with numerous student protections.  It is  
               important to note that not all private institutions are  
               covered by the provisions of the Act; full and partial  
               exemptions are provided for low-cost programs, recreational  
               schools, schools accredited by regional accrediting  
               agencies, among other types of institutions.  The Act  
               establishes prohibitions on false advertising and  
               inappropriate recruiting and requires disclosure of  
               critical information to students such as program outlines,  
               graduation and job placement rates, and license examination  








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               information, and ensures colleges justify those figures.   
               The Act also guarantees students can complete their  
               educational objectives if their institution closes its  
               doors while providing BPPE with enforcement powers  
               necessary to protect consumers.  The Act directs BPPE to:

                     Create a structure that provides an appropriate  
                 level of oversight, including approval of private  
                 postsecondary educational institutions and programs;

                     Establish minimum operating standards for California  
                 private postsecondary educational institutions to ensure  
                 quality education for students;

                     Provide students a meaningful opportunity to have  
                 their complaints resolved;

                     Ensure that private postsecondary educational  
                 institutions offer accurate information to prospective  
                 students on school and student performance, thereby  
                 promoting competition between institutions that rewards  
                 educational quality and employment success; and,

                     Ensure that all stakeholders have a voice and are  
                 heard in the operations and rulemaking process of BPPE. 

               The Bureau is required to actively investigate and combat  
               unlicensed activity, administer the STRF, and conduct  
               outreach and education activities for private postsecondary  
               educational institutions and students within the state.   
               The Act establishes processes for penalties for  
               non-compliance, providing the Bureau authority to perform  
               site visits and investigations, order fines and student  
               tuition refunds, and ultimately suspend or revoke an  
               institution's approval to operate.

             a)   ATB Tests.  Under Federal law, students without a high  
               school diploma or General Educational Development (GED) can  
               qualify for federal Title IV loans, grants, and  
               campus-based aid if they pass an independently administered  
               test of their basic math and English skills, called an ATB  
               test.  The intent of the test is to measure whether  
               students have the basic skills needed to benefit from  
               higher education and succeed in the institution.  Tests are  








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               approved by the USDE and administered by an independent  
               party.  Under Title IV, students must pass an ATB before  
               receiving any federal funds.
          
          The Act requires all institutions covered by the Act to  
          administer ATB tests to students who have not obtained secondary  
          education.  Students must pass a USDE-approved ATB test before  
          enrolling in the institution.  The Bureau is also authorized to  
          publish a list of eligible examinations if the USDE does not  
          have a relevant examination.  

          1. Prior Related Legislation.   AB 1013  (Committee on Higher  
             Education, Chapter 167, Statutes of 2011) authorized the  
             Bureau to publish its own list of acceptable  
             ability-to-benefit examinations if the USDE does not have a  
             list of relevant examinations that pertain to the intended  
             occupational training.  

              SB 675  (Wright) of 2011 required private postsecondary  
             institutions subject to the Act to administer a test of  
             English language proficiency to a nonnative speaker of  
             English, as defined, prior to enrolling the student.   
             (  Status:   The bill failed passage in this Committee.)

              AB 1889  (Portantino) of 2010 contained similar provisions  
             related to an ATB as AB 1013 above, as well as provisions  
             regarding doctoral degrees offered by unaccredited  
             institutions, the calculation of placement rates, and Bureau  
             employment requirements.  (  Status  :  The bill was vetoed by  
             Governor Schwarzenegger due to concerns over Bureau  
             employment requirements).
          

           NOTE  :  Double-referral to Senate Committee on Education, second.
          

          SUPPORT AND OPPOSITION:
          
           Support:   None on file as of June 16, 2015.

           Opposition:   None on file as of June 16, 2015.


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