BILL ANALYSIS Ķ
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: AB 1996 Hearing Date: June 13,
2016
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|Author: |Gordon |
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|Version: |April 14, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Sarah Mason |
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Subject: Private postsecondary education: exemptions
SUMMARY: Provides an exemption for JobTrain, Inc., from the California
Private Postsecondary Education Act and oversight by the Bureau
for Private Postsecondary Education (BPPE), if it maintains its
status as a nonprofit institution that is accredited by the
Accrediting Commission for Schools, Western Association of
Schools and Colleges (WASC-ACS) and does not award degrees or
diplomas, and only receives state or federal student financial
aid programs for fewer than 20 percent of its students who
receive vocational training.
Existing law:
1)Establishes the California Private Postsecondary Education Act
(Act) January 1, 2017, and requires BPPE 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 BPPE 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 BPPE shall
administer the Student Tuition Recovery Fund (STRF) 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)Exempts the following from oversight by the Bureau: (EC §
94874)
a) An institution that offers solely avocational or
recreational educational programs.
b) An institution offering educational programs sponsored
by a bona fide trade, business, professional, or fraternal
organization, solely for that organization's membership.
c) A bona fide organization, association or council that
offers preapprenticeship training programs on behalf of one
or more Division of Apprenticeship Standards-approved
labor-management or apprenticeship programs that is not on
the Eligible Training Provider List (ETPL) currently but
has met requirements for placement on the list, that is on
the ETPL and that has not been removed from the ETPL for
failure to meet performance standards.
d) A postsecondary educational institution established,
operated, and governed by the federal government or by this
state or its political subdivisions.
e) An institution offering either test preparation for
examinations required for admission to a postsecondary
educational institution or continuing education or license
examination preparation, if the institution or the program
AB 1996 (Gordon) Page 3
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is approved, certified, or sponsored by a government
agency, other than BPPE, that licenses persons in a
particular profession, occupation, trade, or career field,
a state-recognized professional licensing body, such as the
State Bar of California, that licenses persons in a
particular profession, occupation, trade, or career field
or a bona fide trade, business, or professional
organization
f) An institution owned, controlled, and operated and
maintained by a religious organization lawfully operating
as a nonprofit religious corporation whose instruction is
limited to the principles of that religious organization
and the diploma or degree granted is limited to evidence of
completion of that education. The institution is only
eligible to offer degrees and diplomas in the beliefs and
practices of the church, religious denomination, or
religious organization and shall not award degrees in any
area of physical science. Any degree or diploma granted by
an institution owned, controlled, and operated and
maintained by a religious organization lawfully operating
as a nonprofit religious corporation shall contain on its
face, in the written description of the title of the degree
being conferred, a reference to the theological or
religious aspect of the degree's subject area. The degree
must reflect the nature of the degree title, such as
"associate of religious studies," "bachelor of religious
studies," "master of divinity," or "doctor of divinity."
g) An institution that does not award degrees and that
solely provides educational programs for total charges of
two thousand five hundred dollars ($2,500) or less when no
part of the total charges is paid from state or federal
student financial aid programs.
h) A law school that is accredited by the Council of the
Section of Legal Education and Admissions to the Bar of the
American Bar Association or a law school or law study
program that is subject to the approval, regulation, and
oversight of the Committee of Bar Examiners.
i) A nonprofit public benefit corporation that is qualified
under Section 501(c)(3) of the United States Internal
Revenue Code, is organized specifically to provide
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workforce development or rehabilitation services and is
accredited by an accrediting organization for workforce
development or rehabilitation services recognized by the
Department of Rehabilitation.
j) An institution that is accredited by the Accrediting
Commission for Senior Colleges (ACSC) and Universities,
WASC, or the Accrediting Commission for Community and
Junior Colleges (ACCJC).
aa) An institution that has been accredited, for at least 10
years, by an accrediting agency that is: recognized by the
USDE; has operated continuously in this state for at least
25 years and has not filed for bankruptcy protection
pursuant to Title 11 of the United States Code during its
existence; has a cohort default rate on guaranteed student
loans does not exceed 10 percent for the most recent three
years, as published by the USDE; maintains a composite
score of 1.5 or greater on its equity, primary reserve, and
net income ratios, as provided under Section 668.172 of
Title 34 of the Code of Federal Regulations; provides a pro
rata refund of unearned institutional charges to students
who complete 75 percent or less of the period of
attendance; provides to all students the right to cancel
the enrollment agreement and obtain a refund of charges
paid through attendance at the second class session, or the
14th day after enrollment, whichever is later; submits to
the BPPE copies of its most recent IRS Form 990, the
institution's Integrated Postsecondary Education Data
System Report of the USDE, and its accumulated default
rate; and is incorporated and lawfully operates as a
nonprofit public benefit corporation and is not managed or
administered by an entity for profit.
bb) Flight instruction providers or programs that provide
flight instruction pursuant to Federal Aviation
Administration (FAA) regulations and do not require
students to enter into written or oral contracts of
indebtedness and do not require or accept prepayment of
instruction-related costs in excess of $2,500.
1)Also provides an exemption from the Act and oversight by BPPE
for an institution that is accredited by the ACSC and WASC, or
ACCJC that has been accredited by a USDE recognized
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accrediting agency for at least 10 years and has not been
placed on probation or on monitoring or sanctioned; is
headquartered in California and has operated continuously for
at least 25 years; is privately held and was previously
granted an approval to operate by the BPPE or the former
Bureau and has not changed ownership since its last approval;
has not filed for bankruptcy protection; maintains an equity
ratio composite score of at least 1.5; derives at least 12.5
percent of its revenues from sources other than state or
federal student assistance like Title 38 and CalGrant monies;
does not have a cohort default rate over 13 percent for the
most recent 3 years; has a graduation rate that exceeds 60
percent; has not been subject to any legal or regulatory
actions by a state AG that resulted in monetary settlement,
fines or other documented violations; provides a pro rata
refund of unearned institutional charges to students who
complete 75 percent or less of the period of attendance;
complies with other reasonable criteria established by the
California State Approving Agency for Veterans Education
(CSAAVE); and verifies its exemption with BPPE. (EC § 94947)
This bill provides an exemption for JobTrain, Inc., from the Act
and oversight by BPPE if it maintains its status as a nonprofit
institution that is WASC-ACS accredited and does not award
degrees or diplomas, and only receives state or federal student
financial aid programs for fewer than 20 percent of its students
who receive vocational training.
FISCAL
EFFECT: This bill is keyed "fiscal" by Legislative Counsel.
According to the Assembly Committee on Appropriations analysis
dated May 4, 2016, the bill will have negligible fiscal impact.
COMMENTS:
1. Purpose. The Author is the sponsor of this bill. According
to the Author, JobTrain had been listed on the state's
Eligible Training Providers List (ETPL, which lists qualified
employment training providers for purposes of public
employment monies) since 2001 and had been exempt from BPPE
oversight until JobTrain was informed that their exemption
expired on December 31, 2015. JobTrain asserts that it lost
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its exemption due to the sunset date of that exemption, and
not because of any issue BPPE or any other body has with
JobTrain's vocational training program.
According to the Author, the loss of eligibility for an
exemption from BPPE means that JobTrain cannot be on the
ETPL. The Author asserts that this, in effect, means that
individuals who receive funding WIOA cannot be referred to
JobTrain and cannot take advantage of their successful
vocational training programs. According to the Author,
individuals who are eligible for Individual Training Accounts
(ITAs) through WIOA are most in need and have barriers to
employment. The Author states that over the past three
years, JobTrain has served a range of individuals who had ITA
funding, from 27 to 57 participants annually, "a significant
population that would most benefit from job training."
According to the Author, an exemption is necessary and
required for JobTrain to again be on the ETPL and serve those
most in need of vocational training.
The Author believes that "AB 1996 would allow those most in
need to access and take advantage of JobTrain's proven
vocational training programs and calls the exemption
justifiable since:
appropriate oversight is being provided by other
entities and there is minimal financial risk to public
funds and to the students:
JobTrain does not offer degrees or diplomas.
JobTrain's programs and operations are reviewed by
an established and reputable regional accrediting
agency, Accrediting Commission for Schools, Western
Association of Schools and Colleges (ACS WASC) and
JobTrain has been in good standing with ACS WASC for
many years.
Financial aid is a small portion of JobTrain's
revenues, further reducing the risk of misuse of public
educational funds. Aside from WIOA ITAs, JobTrain
student tuition is funded by donations, grants, and fee
for service contracts, but not by student financial aid.
These ITA funds can only be paid for training programs
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approved by the Local Workforce Development Board (NOVA)
and meeting performance requirements set by EDD, which
currently requires a 70 percent job placement rate.
BPPE's regulations would pose an undue constraint
on JobTrain pursuing its mission of charitable
education, particularly because dozens of ATB students,
high school dropouts, would fail to qualify. Current
law requires that they must pass a standard test, but
JobTrain has found that most who fail the test are still
able to pass the school's courses and become gainfully
employed in their desired occupations. These are some
of the students who are most important to serve."
1. Background.
a) The Act and BPPE. The Bureau for Private Postsecondary
Education (BPPE or Bureau) is responsible for oversight of
private postsecondary educational institutions operating
with a physical presence in California. Established by
AB 48 (Portantino, Chapter 310, Statutes of 2009) after
numerous legislative attempts to remedy the laws and
structure governing regulation of private postsecondary
institutions, the bill took effect January 1, 2010, to make
many substantive changes that created a foundation for
oversight and gave the BPPE enforcement tools to ensure
schools comply with the law.
AB 48 established BPPE's authority to regulate private
postsecondary institutions and enforce the provisions of the new
California Private Postsecondary Education Act (Act) and to
respond to the major problems with the former laws governing the
industry in California. The Act provides for 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 information, and ensures colleges justify those
figures. The Act also provides 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;
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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; and,
Ensure that all stakeholders have a voice and
are heard in the operations and rulemaking process of
BPPE.
BPPE is also tasked with actively investigating and
combatting unlicensed activity, administering STRF and
conducting outreach and education activities for students
and private postsecondary educational institutions within
the state.
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
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. BPPE is also authorized to
publish a list of eligible examinations if the USDE does not
have a relevant examination.
b) Exemptions in the Act. The Bureau has oversight of all
of the non-exempt, private postsecondary institutions
located in California. AB 48 contained numerous exemptions
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to state-level oversight, the most notable of which is an
exemption from BPPE authority and regulation under the Act
granted to for-profit and nonprofit regionally accredited
institutions.
The Act was amended through SB 1247 (Lieu, Chapter 840, Statutes
of 2014) to prohibit an institution, beginning January 1, 2016,
from claiming an exemption from the Act if the institution is
approved to participate in Title 38 veterans financial aid
programs. The Committees were concerned about multiple reports
and hearings focused on the experience of veterans at private
for-profit institutions, false and predatory advertising to
veterans and the potential lack of accountability for the
millions of dollars administered by the federal Veterans
Administration (VA) and Department of Defense (DOD) spent at
private postsecondary education institutions in California if
schools are not regulated. Because neither DOD nor VA benefits
originate through federal student financial aid, Title IV, money
that institutions received through these programs was not
counted as federal financial aid, thus not subject to a key
federal regulatory requirement governing for-profit schools that
no more than 90 percent of revenues come from federal financial
aid.
The Bureau has verified exemptions for 617 institutions, denied
exemptions for 363 institutions and is in the process of
reviewing almost 90 more exemption requests. However, in order
to remain eligible to continue receiving Title IV monies, a
number of institutions previously verified as exempt under the
Act have now sought voluntary approval by BPPE.
The Act, as created by AB 48, attempted to correct many of the
prior laws' structural problems, most especially the former
acts' different standards and requirements for different
categories of institutions that created complexities. The Act
has one single category of institution and establishes the same
standards and requirements for all of the institutions under the
Bureau's oversight. Yet many of the institutions supportive of
exemptions were exempt under the prior Bureau regulatory
framework and seek to continue operating as they always have:
subject to oversight by accreditors and state and federal
oversight agencies responsible for approving the expenditure of
public monies, but not the BPPE.
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An exempt institution is not regulated by the BPPE.
Students enrolled in exempt institutions are not protected
by the Act, including STRF which provides reimbursement to
students for BPPE-regulated institutions that violate the
law or close abruptly. For example, Heald College, which
was owned by Corinthian Colleges, Inc. (CCI), enjoyed an
exemption from BPPE oversight due to its
WASC-accreditation. When initially granted exemption,
Heald College was a non-profit institution. It was
subsequently purchased by CCI, and the accreditation-based
exemption was not affected by the change in ownership.
When Heald closed abruptly and filed bankruptcy in 2015,
students enrolled in the institution were not eligible to
make tuition recovery claims against the STRF.
1. Workforce Innovation and Opportunity Act (WIOA) and
California's Eligible Training Provider List (ETPL). The
federal Workforce Innovation and Opportunity Act (WIOA),
formerly known as the federal Workforce Investment Act (WIA)
of 1998, provides for workforce investment activities,
including activities in which states may participate and also
contains various programs for job and employment investment,
including work incentive programs, as specified. WIOA was
signed into law in 2014 and generally takes effect July of
this year. WIOA supersedes WIA and also authorizes the Job
Corps, YouthBuild, Indian and Native Americans, and Migrant
Seasonal Farmworker programs, in addition to the core
programs. The new federal WIOA aims to modernize our
workforce development system bringing together and enhancing
several key employment, education and training programs.
WIOA also seeks to make the workforce system more
comprehensive in its approach to service delivery and more
responsive to the demands of our economy.
Following passage of the federal WIA in 1998, the state
established the California Workforce Investment Board, now
the California Workforce Development Board, (Board) and
charged the Board with the responsibility for developing a
unified, strategic planning process to coordinate various
education, training, and employment programs into an
integrated workforce development system that supports
economic development. Local chief elected officials in a
local workforce development area were required to form,
pursuant to specified guidelines, a Local Workforce
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Investment Board (Local WIB) to plan and oversee the
workforce investment system at the local level. Under WIA,
funds were distributed to the states based on formulas that
consider unemployment rates and other economic and
demographic factors. WIA required that 85 percent of federal
funds go to the Local WIBs, with the remainder allocated for
state discretionary purposes. Local WIBs created one or more
One-Stop Centers in the local workforce area, which provide
access to career information, counseling, funding for
education, training and supportive services. Job training
programs include classroom training, customized training, and
on-the-job training (also known as incumbent worker
training). Training funds are often distributed through
vouchers to job seekers to enroll in eligible training
programs. Local WIBs determine which training programs are
eligible to receive the vouchers.
California's ETPL was established in compliance with WIA for
the purpose of providing customer-focused employment training
for adults and dislocated workers. Training providers who are
eligible to receive ITAs are listed on the ETPL. EDD is
responsible for accepting information on training providers
from local boards, compiling a single statewide list of
eligible training providers and disseminating the statewide
ETPL to local boards for distribution to their One-Stop
Career Centers, effectively directing training resources into
programs intended to lead to employment in high-demand,
high-priority jobs and occupations that provide economic
security, particularly those facing a shortage of skilled
workers. The subsequent eligibility criteria is required to
use performance and outcome measures to determine whether a
provider is qualified to remain on the list.
Initial and subsequent eligibility criteria for placement on
the ETPL shall consider:
The relevance of the training program to the
workforce needs of the state
Needs to plug skills gasps and skills shortages at
the state, local and regional levels
The likelihood that the training program will lead
to job placement in a job providing economic security or
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job placement in an entry-level job that has a
well-articulated career pathway or career ladder to a
job providing economic security
The need for basic skills and bridge training
programs that provides access to occupational skills
training for individuals with barriers to employment and
those who would otherwise be unable to enter
occupational skills training
To the extent feasible, utilize criteria that
measure training and education provider performance,
including, but not limited to measures of skills or
competency attainment and program completion; measures
of employment placement and retention; measures for
continued training or education and for those that have
entered the labor market, measures of income.
The Local WIBs are responsible for reviewing and verifying
applications submitted by training providers, determining if
the applicant meets the criteria for initial eligibility and
forwarding the information to EDD for training providers and
programs that meet the criteria. The EDD also has the
authority to remove training providers for nonperformance.
A private postsecondary education institution must either
have approval from BPPE or be exempt from the Act in order to
be placed on the ETPL.
1. Arguments in Support. Supporters of this measure cite the
need for job training access for low income individuals.
They argue that JobTrain is one of the few organizations in
the area offering training programs for high demand careers
accessible to people with barriers to employment. Supporters
state that the bill is necessary so that JobTrain can remain
on the ETPL for eligible courses offered. Students who
receive ITA support under WIOA will then be referred to
JobTrain. Without this, the options for low income
individuals to access vocational training will be even more
limited.
2. Letters of Concern. Student advocates concerned about this
bill state that any exemption from state oversight weakens
the regulatory structure and risks harm to the students
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enrolled in the program. Loopholes such as the one in this
bill, they argue, create opportunities for unscrupulous
institutions to exploit loopholes and harm students. These
organizations argue that individual school exemptions place
the Legislature in the position of a fact-finding regulator,
judging which and how much each school should be regulated.
3. Related Legislation This Year. SB 1059 (Monning) exempts law
schools accredited by the State Bar of California Committee
on Bar Examiners from requirements that they be accredited by
an accrediting agency recognized USDE in order to receive
Title 38 veteran benefits if the institution complies with
specified disclosure and compliance requirements. ( Status:
The bill is pending in the Assembly Committee on Higher
Education.)
SB 1192 (Hill) is the sunset bill for BPPE and makes various
changes to the Act intended to improve the effectiveness of
BPPE and opportunities for student success. ( Status: The
bill is pending in the Assembly Committee on Higher
Education.)
AB 1835 (Holden) provides an exemption for five years from
minimum operating standards and accreditation requirements
for approval by the Bureau for Private Postsecondary
Education (BPPE), to institutions that grant doctoral degrees
in psychoanalysis, if all of the institution's students hold
master's or doctoral degrees before they enroll in the
institution and if all of the institution's students, other
than research students regulated by the Medical Board of
California, hold a valid professional license authorizing the
individual to practice psychotherapy. ( Status: The bill is
also pending before this committee on June 13, 2016.)
4. Prior Legislation. SB 410 (Beall, Chapter 258, Statutes of
2015) changed the definition of graduates for purposes of
reporting student information as required under the Act.
AB 509 (Perea, Chapter 558, Statutes of 2015) provided an
exemption from the Act and BPPE oversight for a bona fide
organization, association, or council that offers
pre-apprenticeship training programs on behalf of one or more
Division of Apprenticeship Standards -approved
labor-management apprenticeship programs, provided that the
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entity meets the requirements for the ETPL and has not been
removed from the ETPL for failure to meet performance
standards.
AB 752 (Salas, Chapter 560, Statutes of 2015) required BPPE
by July 1, 2016, to review the list of examinations
prescribed USDE and if BPPE determines there is no
examination appropriate for ATB students with limited English
proficiency, to approve an alternative examination for these
students.
SB 1247 (Lieu, Chapter 840, Statutes of 2014) extended the
operation of the Bureau until January 1, 2017; and, among
other changes, set forth requirements for accreditation for
institutions offering degrees.
SB 71 (Committee on Budget and Fiscal Review, Chapter 28,
Statutes of 2013) enacted various budget-related items,
including a provision allowing exempt institutions to
voluntarily seek operating approval from the Bureau. The
bill provided a temporary delay in those institutions
reporting certain information on the Student Performance Fact
Sheet.
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.)
SB 619 (Fuller, Chapter 309, Statutes of 2011) exempted
flight instructors and flight schools that do not require
students to enter into contracts of indebtedness and do not
require prepayment of fees in excess of $2,500 from
regulation by the Act and BPPE.
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.
AB 1889 (Portantino) of 2010 contained similar provisions
related to an ATB as AB 1013 above, as well as provisions
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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).
5. Policy Concerns and Suggested Amendments. The Author
provided information about the difficulty for JobTrain,Inc.
to comply with requirements in the Act related to the
ATB-test as well as the high amount of the BPPE's annual
fees. Previous policy committees suggested that perhaps
JobTrain,Inc. could be exempt from the ATB requirement in the
Act, but it is not clear if that narrow exemption to one
provision in the Act would assist JobTrain,Inc. in fulfilling
The exemptions in the Act, and attempts to create additional
exemptions, have been an ongoing source of consideration for
the Legislature. It was not until a hearing in the Senate
that AB 48 was amended to include a "good schools" exemption,
as institutions pushing for this exemption (based on criteria
like length of operation under one owner and nonprofit
status) argued that a similar recognition had been included
in all legislation related to private postsecondary
institution regulation since 1991 and should be continued.
During the discussion surrounding SB 1247 in 2014, the Author
submitted a letter to the Senate Journal requesting that the
Legislature strike the exemption outlined above for WASC
accredited institutions to remain exempt and asked that all
exemptions provided for in the Act be thoroughly examined by
the Legislature to determine the merits of their
continuation. Current pending legislation seeks to clarify
that law schools approved by the Committee on Bar Examiners,
which were exempt from the Act, but would now have to receive
Bureau approval in order to receive Title 38 monies, can
still receive these monies without BPPE approval. Law
schools in particular have been the source of scrutiny based
on high rates of student debt, misleading employment figures
and low state bar passage rates.
Licensing requirements exist to protect the public from
potentially harmful services rendered by unqualified
businesses and individuals. The intent of licensure is not
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to punish good actors, nor to impose punitive requirements on
businesses and individuals, but rather to establish a
baseline measure of quality and competency and corresponding
enforcement provisions for consequences of violating the
regulatory framework. Exemptions in the Act may serve as an
artificial measure of quality and in some cases, while the
intention may have been to ensure that the BPPE's workload is
focused on those schools that require attention, it may not
benefit the public and provide accountability for public
monies utilized at these institutions.
Institutions on the ETPL receive public monies. As the
Author asserts above, "JobTrain has served a range of
individuals who had ITA funding, from 27 to 57 participants
annually." Many other training providers on the ETPL also
serving individuals with ITA funding are approved by BPPE.
This bill sets a precedent that may be followed by other
training providers throughout the state to also seek an
exemption from the minimum operating standards set forth in
Act and enforced through BPPE oversight, with the unintended
consequence of lower standards for student protections and a
void of information about the performance of these
institutions.
Given that students attending JobTrain would not be subject
to the important protections contained within the Act and
would not benefit from important information reported to the
BPPE in an institution's annual report (including specific
data on programs, completion and job placement rates, as well
as other important data aimed at helping potential students
make informed decisions about enrollment in an institution),
the bill should be amended to ensure accountability for a
training provider receiving public monies, conforming to
accountability inherent in the Act for other private
postsecondary training institutions. Specifically, if
JobTrain,Inc. remains on the ETPL as a result of being able
to claim an exemption from the Act, EDD, as the agency
responsible for maintaining the integrity of the ETPL, and
the Board which oversees the criteria for placement and
subsequent WIOA eligibility, should be included in evaluating
the policy of exempting one particular school.
Language should be included in this measure to require EDD,
in conjunction with the Board, to annually collect
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information from JobTrain,Inc. and provide a report to the
BPPE on the following:
The number of students enrolled and the number
that have completed their respective training program;
The number of students attaining training from
JobTrain,Inc. using WIOA funds;
Skills or competency attained through their
respective program and subsequent employment placement
and retention information, including income.
EDD should also make the report available on the searchable
CalJOBS wesbite, through the training and education providers
link to JobTrain,Inc.
NOTE : Double-referral to Senate Committee on Education, second.
SUPPORT AND OPPOSITION:
Support:
Acrobat Outsourcing
California State Council of Laborers
Caņada College
Community Legal Services in East Palo Alto
East Palo Alto City Councilmember Ruben Abrica
J&J Air Conditioning
JobTrain, Inc.
NOVA Workforce Board
San Mateo County Board of Supervisors President Warren Slocum
Sequoia Adult School
11 Individuals
Concerns:
Public Advocates
University of San Diego Center for Public Interest Law
University of San Diego Children's Advocacy Institute
University of San Diego Veterans Legal Clinic
Opposition:
AB 1996 (Gordon) Page 18
of ?
None on file as of June 7, 2016.
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