BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 425|
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                                   THIRD READING 


          Bill No:  SB 425
          Author:   Hernandez (D), et al.
          Amended:  4/21/15  
          Vote:     27 - Urgency

           SENATE EDUCATION COMMITTEE:  7-0, 4/29/15
           AYES:  Liu, Block, Hancock, Leyva, Mendoza, Monning, Pan
           NO VOTE RECORDED:  Runner, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Career training:  adult students


          SOURCE:    Author


          DIGEST:  This bill, an urgency measure, authorizes the  
          Superintendent of Public Instruction (SPI), for purposes of  
          participation in Title IV authorized federal student financial  
          assistance programs, to:  (1) certify by name, a regional  
          occupational center and program, or a county office of education  
          or an adult school; (2) adopt regulations that authorize a  
          complaint process under the Uniform Complaint Procedures (UCPs)  
          outlined in specified regulations; and (3) decertify any program  
          no longer in compliance with specified federal regulations. 


          ANALYSIS:   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  








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          for this purpose and, among other things, require that an  
          educational institution be:


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

          2)Have a process to review and act appropriately on complaints  
            concerning postsecondary institutions.   (34 Code of Federal  
            Regulations § 600.6, § 600.9)

          Existing state law:

          1)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.)

          2)Authorizes a school district governing board, with the  
            approval of the California Department of Education (CDE), 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)   


          This bill, an urgency measure, authorizes the Superintendent of  
          Public Instruction (SPI) to certify specified career training  
          programs for the purpose of participating in Title IV authorized  
          federal student financial assistance programs.  More  
          specifically it:

          1)Authorizes the SPI to certify by name, any ROCP, county office  
            of education, or adult education program, that provides a  
            program of training to prepare adult students for gainful  
            employment in a recognized occupation to legally authorize the  
            center, program, or office to provide an educational program  
            beyond secondary education, including an education program  
            that leads to a degree or certificate.

          2)Extends the authority in #1 exclusively for the purpose of  







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            participation in Title IV authorized federal student financial  
            assistance programs.

          3)Requires a ROCP, county office of education, or adult  
            education program applying for certification to comply with  
            both of the following:

             a)   Satisfy all applicable eligibility requirements  
               specified in federal rulemaking pursuant to specified  
               federal regulations.

             b)   Apply in writing to the SPI as an individual entity to  
               be considered for certification.

          1)Authorizes any person to file a complaint under the UCPs  
            regarding an alleged violation by a local agency of federal or  
            state law governing adult education programs or ROCPs,  
            including allegations of unlawful discrimination, harassment,  
            intimidation, or bullying, and requires the SPI to adopt  
            regulations to implement this authorization. 

          2)Authorizes the SPI to decertify a ROCP, county office of  
            education, or adult education program, for purposes of  
            participation in Title IV authorized federal student financial  
            assistance programs, upon a determination that the entity is  
            no longer in compliance with the specified federal  
            regulations. 

          3)Makes related findings and declarations.

          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, and adult  
            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  







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            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 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 USDE 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. 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

           This bill will create new one-time costs to CDE workload of  
            $60,000 to $100,000, and ongoing workload of about $55,000  







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            General Fund per year to create and maintain a certification  
            process for adult education programs for the purpose of  
            participation in Title IV authorized federal student financial  
            assistance programs.  

           This bill also requires the CDE to adopt regulations  
            authorizing complaints to be made through the UCP process  
            which will create additional, potentially significant new  
            workload, depending on how many complaints are received. These  
            costs are unknown, but a recent law authorizing complaints to  
            be filed for noncompliance with student fees, required  
            additional staffing at CDE.


          SUPPORT:   (Verified5/28/15)


          East San Gabriel Valley Regional Occupational Program and  
          Technical Center
          La Puente Valley Regional Occupational Program
          Los Angeles County Office of Education
          Riverside County Superintendent of Schools
          ROP North Orange County


          OPPOSITION:   (Verified5/28/15)


          None received



          Prepared by:Kathleen Chavira / ED. / (916) 651-4105
          5/31/15 12:04:52


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