BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1889
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          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1889 (Portantino) - As Amended:  March 17, 2010

          Policy Committee:                              Higher  
          EducationVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill enacts several changes to the Private Postsecondary  
          Education Act of 2009, including:

          1)Prohibiting an unaccredited institution from offering doctoral  
            degrees.

          2)Eliminating from the definition of "graduates employed in the  
            field"-for purposes of institutional reports-the inclusion of  
            graduates employed in positions where the training they  
            received provided a significant advantage in obtaining the  
            position.

          3)Clarifying that the education specialist and senior specialist  
            positions established within the re-established Bureau for  
            Private Postsecondary Education are full-time, permanent  
            positions based in the Sacramento office of the Bureau.

           FISCAL EFFECT  

          Ongoing special fund costs of around $200,000 in travel expenses  
          for the Sacramento-based specialist positions.  (The Department  
          of Consumer Affairs (DCA) indicates that, because most of the  
          schools to be regulated by the new bureau are located in  
          southern California, four of the five specialist positions would  
          spend the majority of their time in that region.  Therefore,  
          mandating these positions be based in Sacramento will result in  
          weekly travel-related costs.)

           COMMENTS  









                                                                  AB 1889
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           1)Background  .  AB 48 (Portantino)/ Chapter 310 of 2009  
            re-established state regulation of private postsecondary  
            educational institutions in California by a bureau within DCA.  
             This bill enacts several changes to the Act, including the  
            following significant changes:

              a)   Requires institutions offering doctoral degrees to be  
               accredited.   Accreditation is a voluntary, non-governmental  
               peer review process utilized for the purpose of determining  
               academic quality of higher education institutions and  
               programs.  The author notes that, while often cheaper for  
               the student, unaccredited degrees can limit a student's  
               career options.  Some career fields and employers require  
               degrees from accredited colleges, especially in professions  
               like education and health care, where certification or  
               licensure is a pre-requisite for employment. The author  
               believes that requiring doctoral degree programs to be  
               accredited will ensure an adequate level of educational  
               quality of doctoral degrees issued by private postsecondary  
               institutions operating in California.

               In opposition to this provision, the California Association  
               of Private Postsecondary Schools (CAPPS) argues that  
               prohibiting unaccredited schools from offering doctoral  
               level degrees would negatively impact California  
               unaccredited schools and their students.
                
               CAPPS believes this provision will put a number of schools  
               out of business and destroy many students' efforts to  
               graduate and practice in their chosen profession. CAPPS  
               argues that, while accreditation is an excellent option for  
               schools, there are a number of areas of study such as  
               oriental medicine, energy medicine, psychology and other  
               areas where the only available accreditation option would  
               not allow for accreditation of smaller schools. 

              b)   Alters the definition of "graduates employed in the  
               field  ."  The Act requires that institutions report the  
               number of graduates gainfully employed in the field within  
               six months of graduation and allows for the inclusion of  
               graduates who are employed in positions where the training  
               they received from the institution provided a "significant  
               advantage" to the graduate in obtaining the position.   
               According to the author, concerns were raised by  
               legislative colleagues, during the vote to Concur in Senate  








                                                                  AB 1889
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               Amendments on AB 48, that this latter provision might allow  
               institutions to inappropriately inflate job placements. The  
               author agreed at the time to delete this provision in  
               clean-up legislation, thus the Act would require that the  
               skills obtained through the private postsecondary education  
               or training be required for the position obtained in order  
               for the job to be counted as a graduate placement. 

               In opposition to this statutory change, Kaplan Inc. argues  
               that it breeches the agreement made last year in AB 48 and  
               is unduly restrictive, as it does not allow institutions to  
               include graduates that start in entry-level positions.   
               Kaplan Inc. believes that the revised reported requirement  
               sets an unrealistic standard that does not accurately  
               reflect the nature of employment in the private sector.

              c)   Revises language regarding Bureau Education Specialists  
               positions  .  The Act appropriated $580,000 to the Bureau to  
               fund five postsecondary education specialist and senior  
               specialist positions and required these positions be  
               included in the annual budget for the Bureau.  The author  
               contends this language was intended to ensure employees of  
               the former Bureau, with expertise in regulation and  
               oversight of private institutions, would have the  
               opportunity to be placed within the new Bureau.  The author  
               indicates, however, that the Administration has established  
               these as limited-term positions located outside of the  
               Sacramento area.  AB 1889 clarifies that these positions  
               are to be full-time, permanent positions housed in the  
               Sacramento office of the Bureau. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081