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 ----------------------------------------------------------------- |Author: |Salas | |----------+------------------------------------------------------| |Version: |April 23, 2015 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Sarah Mason | |: | | ----------------------------------------------------------------- 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.) AB 752 (Salas) Page 2 of ? 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. AB 752 (Salas) Page 3 of ? 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 AB 752 (Salas) Page 4 of ? 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 AB 752 (Salas) Page 5 of ? 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. -- END -- AB 752 (Salas) Page 6 of ?