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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