BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 519|
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                                 THIRD READING


          Bill No:  AB 519
          Author:   Mendoza (D)
          Amended:  9/7/07 in Assembly
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT 


          SUBJECT  :    Private postsecondary education

           SOURCE  :     Author


           DIGEST  :    This bill extends limited state oversight of  
          private postsecondary schools from February 1, 2008 to July  
          1, 2008.

           ANALYSIS  :    Existing law expresses the intent of the  
          Legislature to provide for the protection of the interests  
          of students who, and institutions which, have pending  
          matters before the former Private Postsecondary and  
          Vocational Education Reform Act of 1989.

          This bill extends, from February 1, 2008, until July 1,  
          2008, limited state oversight of private postsecondary  
          schools by the Department of Consumer Affairs (DCA),  
          primarily by extending the provisions of AB 1515 (Cook),  
          Chapter 67, Statutes of 2007.

          This bill:

          1.Extends, for six months, the provisions of AB 1525, which  
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            include a continuation of matters pending before the  
            Bureau of Private Postsecondary and Vocational Education  
            (BPPVE) as of June 30, 2007, authorization for schools to  
            enter into voluntary agreements to comply with the law as  
            it existed on June 30, 2007, preservation of rights of  
            action for students, and continuation of the Student  
            Tuition Recovery Fund (STRF) under the administration of  
            DCA.

          2.Extends, for 11 months, retention of institutional  
            approvals necessary to preserve student ability to sit  
            for licensing exams.

          3.Creates, within DCA, the Bureau of Private Postsecondary  
            Education (BPPE) and the position of bureau chief, which  
            shall commence operations when legislation creating a new  
            California Private Postsecondary Act is chaptered.

          4.Provides an opportunity for new institutions to begin to  
            operate by voluntarily agreeing to comply with the law as  
            it existed on June 30, 2007.

          5.Authorizes any accredited institution to modify a degree,  
            diploma, or certificate program, to add or change a  
            location, to change the institution's name, or undergo a  
            change of ownership, provided the institution documents  
            approval of such action by its accrediting agency.

          6.Authorizes the Board of Barbering and Cosmetology (BBC)  
            to approve a school that was not licensed by the former  
            BPPVE if the school meets specified conditions, in order  
            for BBC to continue to meet its existing statutory  
            obligations.

           Comments

           Due to a failure to reach a consensus on a new regulatory  
          structure as proposed in SB 823 (Perata), this bill  
          continues the provisions of AB 1525 for an additional six  
          months.

          This bill creates the new BPPE and sets forth its duties  
          and responsibilities rather than waiting to place those  
          provisions in SB 823 because that bill must be adopted as  







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          an urgency measure to allow a new private postsecondary act  
          to take effect prior to the expiration of student  
          protections and institutional provisions in this bill.  It  
          is unconstitutional to create a new bureau in an urgency  
          measure.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Assembly Appropriations Committee, DCA  
          estimates costs of approximately $300,000 for five  
          positions to oversee the voluntary contracts, pay STRF  
          claims, and respond to phone calls from consumers.


          NC:cm  9/10/07   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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