BILL ANALYSIS Ó
AB 1996
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1996 (Gordon) - As Amended April 14, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill provides an exemption from the California Private
Postsecondary Education Act (Act) for JobTrain, Inc. to an
institution, if it maintains its status as a nonprofit
institution accredited by the Accrediting Commission for
Schools, Western Association of Schools and Colleges (WASC-ACS),
does not award degrees or diplomas, and is paid from state or
federal student financial aid programs for fewer than 20% of
its students who receive vocational training.
AB 1996
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FISCAL EFFECT:
Negligible fiscal impact.
COMMENTS:
1)Background. The Bureau for Private Postsecondary Education
(BPPE), through the Act, established by AB 48 (Portantino),
Chapter 310, Statutes of 2009, is responsible for oversight of
private postsecondary educational institutions operating with
a physical presence in California. AB 48 contained numerous
exemptions to state-level oversight, including for avocational
or recreational programs, preapprenticeship programs offered
by specific types of organizations, religious institutions,
low-cost programs that do not receive public funds,
WASC-accredited institutions, and flight schools. An exempt
institution is not regulated by the BPPE. Students enrolled
in exempt institutions are not protected by the Act, including
the Student Tuition Recovery Fund (STRF), which provides
reimbursement to students for BPPE-regulated institutions that
violate the law or close abruptly.
2)Purpose . According to the author, JobTrain is a 50-year old
nonprofit training and career development support center
serving low income individuals in the Bay Area. JobTrain
offers middle income job pathways for people who are often
working two to three minimum wage jobs and who cannot afford
to personally pay for college or other training. JobTrain had
been previously granted an exemption from oversight by BPPE
based on its accreditation from (WASC). JobTrain was notified
by BPPE that its exemption expired on December 31, 2015.
According to the author, in order to remain eligible to
receive public funding under the Workforce Investment and
AB 1996
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Opportunity Act (WIOA), the institution must remain on the
Eligible Training Provider List (ETPL). To be placed on the
ETPL, an institution must either have an exemption or approval
from the BPPE.
The author is seeking to maintain JobTrain's exemption, noting
that the school would otherwise need to stop serving a
significant number of students who could not pass a required
ability-to-benefit test, but "have been among the most
successful in obtaining higher wage jobs through JobTrain's
program." The author also notes that financial aid is a small
portion of JobTrain's revenues, thus reducing the risk of
misuse of public educational funds.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081