BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 425| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 425 Page 2 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 SB 425 Page 3 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 SB 425 Page 4 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 SB 425 Page 5 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 **** END ****