BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 410  


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          Date of Hearing:  July 8, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 410  
          (Beall) - As Amended June 16, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill substitutes the existing term "graduates"-for purposes  
          of private postsecondary institutions annually reporting their  
          program completion rates on the School Performance Fact Sheet  
          required pursuant to the Private Postsecondary Education Act  








                                                                     SB 410  


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          (Act)-with the term "on-time graduates", meaning the number of  
          students who complete an educational program within 100% of the  
          published program length.


          FISCAL EFFECT:


          Minor absorbable costs to the Bureau for Private Postsecondary  
          Education, within the Department of Consumer Affairs.


          COMMENTS:


          1)Background. AB 48 (Portantino)/Chapter 310, Statutes of 2009,  
            established the Act, which in part requires non-exempt  
            institutions to provide prospective students a Fact Sheet  
            containing information on graduation, placement, salary and  
            professional license examination passage rates of its  
            students.  AB 2296 (Block)/Chapter 585, Statutes of 2012,  
            revised the Fact Sheet requirements to add information  
            regarding student loan default rates, unaccredited programs,  
            and to require the Bureau to refine the definition of  
            placement to ensure that only those graduates "gainfully  
            employed" were counted for employment rate purposes.     



            The Bureau is currently establishing regulations to implement  
            the provisions of AB 2296.  However, due to a drafting error  
            in the definition of "graduates" in Education Code Section  
            94928, these regulations limit the scope of students included  
            in an institutions placement rate, examination passage rate,  
            and salary and wage data to only those students that graduated  
            within 100% of the published program length.


          2)Purpose. According to the proponents of AB 2296 and this bill,  








                                                                     SB 410  


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            while it is appropriate and useful for prospective students to  
            know how many of an institution's students complete a program  
            within the published program length ("on-time graduates"),  
            using that same definition of graduates for purposes of job  
            placement, salary, and licensing data skews the results,  
            because it does not include the outcomes for all institutional  
            graduates.


            This bill would change the definition to require institutions  
            to publish "on-time graduates" data based on the number of  
            students who completed a program within 100% of the published  
            program length.  The data regarding "graduates employed in the  
            field", "license examination passage rates", and "salary and  
            wage information" would be based on a definition of  
            "graduate", contained in the Act under Education Code Section  
            94842, which includes all individuals awarded a degree or  
            diploma.


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081