BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 907


                                                                    Page  1





          Date of Hearing:  April 28, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 907  
          (Burke) - As Amended March 26, 2015


           [Note:  This bill is doubled referred.  On April 8, 2015, this  
            bill was heard and approved by a vote of 7-0 in the Assembly  
                              Committee on Education.]


          SUBJECT:  Career training:  adult students


          


          SUMMARY:  Authorizes the Superintendent of Public Instruction  
          (SPI) to provide "state authorization" and a complaint process  
          for adult education programs; this authority is necessary for  
          adult education programs to meet eligibility requirements in  
          order to continue to participate in federal student financial  
          aid.  Specifically, this bill:  





          1)Establishes the following findings and declarations:










                                                                     AB 907


                                                                    Page  2







             a)   Career training for adults is an important part of  
               workforce and economic development in California;



             b)   Many of California's neediest adult students require  
               financial aid to support their career training;



             c)   Historically, those adult students have had access to  
               federal financial aid under Title IV of the federal  
               Elementary and Secondary Education Act (20 U.S.C. Sec. 6301  
               et seq.);



             d)   Recent revisions in federal regulations governing Title  
               IV of the federal Elementary and Secondary Education Act  
               (20 U.S.C. Sec. 6301 et seq.) have eliminated the  
               eligibility for financial aid for adult students in many of  
               California's career training programs operated by local  
               educational agencies, even though adults in those programs  
               have been historically eligible.



             e)   The Legislature supports:



               i)     Adult students' access to career training programs  
                 that will improve or expand their job skills and  
                 employability.










                                                                     AB 907


                                                                    Page  3







               ii)    Adult students' access to federal financial aid that  
                 may be used for career training programs and services.



               iii)   Providers of career training programs for adult  
                 students, as those providers work to satisfy federal  
                 requirements necessary to establish federal financial aid  
                 eligibility for those adult students.



          2)Authorizes the SPI to certify, by name, any regional  
            occupational center or program, county office of education, or  
            adult education program, that provides a program of training  
            to prepare adult students for gainful employment in a  
            recognized occupation or that leads to a degree or  
            certificate, for purposes of participation in student  
            financial assistance authorized by Title IV of the Higher  
            Education Act of 1965, as amended.



          3)Requires a regional occupational center or program, county  
            office of education, or adult education program applying for  
            certification to comply with both of the following:



             a)   Satisfy all applicable eligibility requirements  
               specified in federal rulemaking pursuant to Sections 600.6,  
               600.7, and 600.9 of Title 34 of the Code of Federal  
               Regulations; and,











                                                                     AB 907


                                                                    Page  4






             b)   Apply in writing to the Superintendent, as an individual  
               center, program, or office, to be considered for  
               certification.



          4)Provides that any person may file a complaint under the  
            Uniform Complaint Procedures, as set forth in Title 5 of the  
            California Code of Regulations, regarding an alleged violation  
            by a local agency of federal or state law or regulations  
            governing adult education programs or regional occupational  
            centers and programs, including allegations of unlawful  
            discrimination, harassment, intimidation, or bullying.



          5)Requires the SPI to adopt regulations that authorize any  
            person to file a complaint under the Uniform Complaint  
            Procedures, as set forth in Title 5 of the California Code of  
            Regulations, regarding an alleged violation by a county office  
            of education of federal or state law or regulations governing  
            that county office's participation in any student financial  
            assistance program authorized by Title IV of the Higher  
            Education Act of 1965, as amended, including allegations of  
            unlawful discrimination, harassment, intimidation, or  
            bullying. 



          EXISTING LAW:  Title IV of the Federal Higher Education Act of  
          1965, as amended, establishes the federal student aid program,  
          administered by the United States Department of Education (USDE)  
          to provide grants, loans and work-study funds from the federal  
          government to eligible students enrolled in eligible colleges or  
          career schools. 










                                                                     AB 907


                                                                    Page  5









          FISCAL EFFECT:  Unknown.





          COMMENTS:  Background.  On October 29, 2010, the United States  
          Department of Education (USDE) issued regulations to improve the  
          integrity of programs authorized to receive federal student  
          financial aid funding under Title IV of the Higher Education Act  
          of 1965, as amended.   Among numerous other requirements,  
          largely directed at for-profit and career colleges, the  
          regulations required institutions to be (1) "authorized" by the  
          state in which they operate, and (2) to ensure a state-level  
          student complaint process.  Initially slated to take effect by  
          July 1, 2013, concerns over the lack of state-level processes  
          for institutions to address compliance, implementation of these  
          regulations has been delayed until July 1, 2015.  





          In California, the University of California (UC), the California  
          State University (CSU), and the California Community Colleges  
          (CCC) appear to meet the Title IV requirements through the  
          "state authorization" provided through their explicit  
          recognition in statute and the oversight/complaint process  
          established by their segmental offices (UC Office of the  
          President, CSU Chancellor, and CCC Chancellor).  Private  
          postsecondary educational institutions can meet the Title IV  
          rules through regulation and oversight provided by the Bureau  
          for Private Postsecondary Education, under a voluntary pathway  









                                                                     AB 907


                                                                    Page  6





          established in the 2013-14 Budget Act.





          Purpose of this bill.  According to the author, following the  
          passage of the federal program integrity regulations, three  
          states across the country (California, Texas and Florida) found  
          that their state agency providing oversight of K-12 entities  
          offering career training for needy adults did not have the  
          statutory authority to properly "state authorize" these  
          providers.  This bill seeks to establish a process, through the  
          SPI, to allow numerous K-12 county offices of education, adult  
          education programs, and regional occupational centers and  
          programs, which have historically provided career training to  
          needy students over the age of 18, to continue eligibility for  
          students to receive federal financial aid under Title IV of the  
          Higher Education Act.





          Corrective amendments suggested.  Committee staff recommends  
          correcting the following findings and declarations to  
          appropriately reflect federal law and its requirements:





            (c) Historically, those adult students have had access to  
            federal financial aid under Title IV of the federal  
             Elementary and Secondary   Higher  Education Act  of 1965, as  
            amended,  (  U.S.C. Sec. 6301 et seq  .).










                                                                     AB 907


                                                                    Page  7





            (d) Recent revisions in federal regulations  to improve  
            integrity of the programs authorized under   governing  Title  
            IV of the federal Elementary and Secondary Education Act (20  
            U.S.C. Sec. 6301 et seq.)   Higher Education Act (34 CFR  
            600.9)   have eliminated the   established new institutional  
             eligibility  requirements  for financial aid for adult  
            students in many of California's career training programs  
            operated by local educational agencies  , even though adults  
            in those programs have been historically eligible  .

          Urgency statute.  As previously noted, the federal deadline for  
          meeting state authorization requirements is July 1, 2015.  In  
          order to ensure these programs do not lose Title IV financial  
          aid program eligibility, the author is proposing to add an  
          urgency statute to this bill.  

          REGISTERED SUPPORT / OPPOSITION:


          


          Support


          


          Association of California School Administrators


          Baldy View Regional Occupational Program


          Butte County Regional Occupational Program











                                                                     AB 907


                                                                    Page  8





          California Federation of Teachers


          California Manufacturers and Technology Association


          Colton Redlands Yucaipa Regional Occupational Program


          Compton Unified School District


          East San Gabriel Valley Regional Occupational Program


          Los Angeles County Office of Education


          Metropolitan Education District


          North Orange County Regional Occupational Program


          Riverside County Superintendent of Schools


          San Joaquin County Office of Education


          Southern California Regional Occupational Center


          


          Opposition









                                                                     AB 907


                                                                    Page  9







          


          None on File


          





          Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960