BILL ANALYSIS Ó SB 410 Page 1 Date of Hearing: July 8, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 410 (Beall) - As Amended June 16, 2015 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|12 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 (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 Page 3 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