BILL ANALYSIS                                                                                                                                                                                                    Ó




           SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

           Bill No:             SB 425             
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           |Author:    |Hernandez                                            |
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           |Version:   |April 6, 2015                               Hearing  |
           |           |Date:     April 8, 2015                              |
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           |Urgency:   |Yes                    |Fiscal:     |Yes             |
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           |Consultant:|Kathleen Chavira                                     |
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           Subject:  Career technical education; state authorization

             SUMMARY
           
           This bill, an urgency measure, authorizes adult schools and  
           evening schools to include postsecondary career technical  
           education programs, and authorizes the Superintendent of  
           Public Instruction to certify by name, a regional occupational  
           center and program, or a county office of education or an  
           adult school or an evening high school, for purposes of  
           participation in Title IV authorized federal student financial  
           assistance programs. 

             BACKGROUND
             
           Existing federal law outlines the requirements for eligibility  
           to participate in Title IV federal financial assistance  
           programs for postsecondary education institutions. Federal  
           regulations define postsecondary vocational institution for  
           this purpose and, among other things, require that an  
           educational institution be:

            A.    Legally authorized by a state to operate educational  
                 programs beyond secondary education. 

            B.    Have a process to review and act appropriately on  
                 complaints concerning postsecondary institutions.   (34  








           SB 425 (Hernandez)             Page 2 of ?
           
           
                 CFR 600.6, 600.9)

           Existing law authorizes school county superintendents to  
           establish Regional Occupational Centers and Programs (ROCPs)  
           that allow students from multiple schools or districts to  
           participate in career technical training programs regardless  
           of the geographical location of their residence in a county or  
           region.  
           (Education Code § 52300 et. seq.)

           Existing law authorizes a school district governing board,  
           with the approval of the California Department of Education,  
           to establish and maintain classes for adults, as specified,  
           and outlines various requirements to be met by these programs.  
            Adult schools and evening high schools are required to  
           consist of classes for adults and authorized to admit minors  
           if specified conditions are met. 
           (Education Code § 52500-52610)  


             ANALYSIS
           
           This bill:

           1.   Declares the Legislature's intent that Regional  
                Occupational Centers and Programs (ROCPs), or a county  
                office of education, serves state and national interests  
                in providing postsecondary career technical education  
                programs.

           2.   Declares the Legislature's recognition that, for purposes  
                of participation in any federal Title IV student  
                financial aid program, the Superintendent of Public  
                Instruction is authorized to certify, by name, a regional  
                occupational center and program or a county office of  
                education. 

           3.   Expands existing authority relative to adult schools and  
                evening high schools.  Specifically it:

                     A.             Authorizes adult schools and evening  
                     high schools to include postsecondary career  
                     technical education programs.









           SB 425 (Hernandez)             Page 3 of ?
           
           
                     B.             Authorizes the Superintendent of  
                     Public Instruction to certify them, by name, for  
                     purposes of participation in any federal Title IV  
                     student financial aid program.

           4.   Makes the bill an urgency measure in order to satisfy  
                federal requirements for participation in federal student  
                aid programs. 

           
           STAFF COMMENTS
                
           1.   Need for the bill.  According to the author, this bill  
                seeks to clarify and update California law by  
                establishing authority and process for ROCPs, county  
                offices of education, adult schools, and evening high  
                schools to be able to participate in federal student  
                financial aid programs. As the result of changes in the  
                federal law, students receiving financial assistance to  
                obtain career technical certification training through  
                these entities may be ineligible for federal financial  
                aid. 

           2.   The Sector.  According to information from providers,  
                ROCPs, County Offices and Adult Schools have been  
                participating in federal financial aid programs, some for  
                as many as 20 years. Recent changes in the federal law  
                regarding state authorization to offer postsecondary  
                education programs puts about 27 of these programs  
                currently approved to offer federal student aid, and the  
                students they serve, at risk of losing eligibility for  
                funds necessary to support students' postsecondary  
                workforce training. According to one provider, about  
                12,000 high school graduates enrolled in post-secondary  
                career preparation programs at ROCPs, County Offices and  
                Adult Schools would no longer be able to access these  
                funds without some change to California law.
           
           3.   State authorization.  State authorization regulations  
                were published in the Federal Register on October 29,  
                2010 (75 FR 66832) and schools were initially required to  
                be in compliance with these rules by July 1, 2011.  Since  
                then, the U.S. Department of Education (USDE) has granted  
                several extensions of the implementation date of these  








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                requirements, subject to a demonstration that  
                institutions and states were making progress toward  
                complying with and obtaining state authorization. 

                 In May 2013, the USDE announced that it would extend the  
                deadline for complying with a rule requiring states to  
                authorize colleges within their borders by a year (July  
                1, 2014). In June 2014, the Department further delayed  
                (until July 1, 2015) the implementation date of the state  
                authorization regulations for institutions of  
                postsecondary education whose state authorization does  
                not meet the requirements of these regulations, so long  
                as the State is establishing an acceptable authorization  
                process that is to take effect by the delayed  
                implementation date.

                This bill proposes an urgency measure to address the  
                state authorization requirements for workforce training  
                programs for adults offered by K-12 affiliated entities. 

           4.   Needs more work?  As drafted, this bill declares  
                legislative intent and recognition around Regional  
                Occupational Centers and Programs (ROCPs) and county  
                offices of education relative to postsecondary programs  
                and authorizes the Superintendent of Public Instruction  
                (SPI) to certify specified types of programs by name so  
                that they may offer postsecondary programs for purposes  
                of federal financial aid participation. Staff notes that  
                the federal law was intended to create an enhanced  
                obligation for states to more proactively oversee  
                entities offering postsecondary programs and accessing  
                federal financial aid funds.  It is unclear whether the  
                language currently in the bill is sufficient to satisfy  
                federal agencies that the specific requirements of the  
                federal law have been met. Simply inserting language that  
                declares legislative intent and extends broad authority  
                to the SPI within existing state statutes may be  
                insufficient.  

                The author may wish to consider creation of a new section  
                of law that outlines authority and responsibility for the  
                California Department of Education that more closely  
                mirrors the federal regulations.  The Committee may also  
                wish to consider whether the bill should be advanced  








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                absent a more thorough statutory response to federal  
                requirements. 

           5.   Related legislation.  

                AB 907 (Burke) authorizes the Superintendent of Public  
                Instruction to certify, by name, each regional  
                occupational center or program, county office of  
                education, or adult education program, that provides a  
                program of training to prepare adult students for  
                employment in a recognized occupation, and to "authorize"  
                these entities for purposes of the center, program, or  
                office participating in any student financial assistance  
                program.  The bill also requires these entities to meet  
                specified requirements and authorizes individuals to use  
                the uniform complaint process to allege violation of any  
                state or federal laws. AB 907 is currently awaiting  
                action in the Assembly Education Committee. 

                AB 1181 (Calderon) declares the Legislature's intent that  
                regional occupational centers will serve the state and  
                national interests in providing secondary and  
                postsecondary career technical and technical education to  
                students and authorizes adult schools and evening high  
                schools to include postsecondary career technical  
                education programs.  AB 1181 is currently awaiting action  
                in the Assembly Education Committee. 

             SUPPORT
           
           Alhambra Unified School District
           Baldy View Regional Occupational Program
           Bassett Unified School District
           Butte County Office of Education
           East San Gabriel Valley Regional Occupational Program and  
           Technical Center  
           Gilleland Education & Training Services
           Glendora Unified School District
           Glenn Adult Program
           Glenn County Regional Occupational Program
           Hacienda La Puente Unified School District
           Imperial Valley Regional Occupational Program
           La Puente Valley Regional Occupational Program
           North Orange County Regional Occupational Program








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           Office of Riverside County Superintendent of Schools
           Placer County Office of Education
           San Joaquin County Office of Education
           SoCal ROC

             OPPOSITION
            
            None received. 

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