BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1889
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          ASSEMBLY THIRD READING
          AB 1889 (Portantino)
          As Amended  May 6, 2010
          Majority vote 

           HIGHER EDUCATION    6-3         APPROPRIATIONS      12-5        
           
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          |Ayes:|Block, Chesbro, Fong,     |Ayes:|Fuentes, Ammiano,         |
          |     |Galgiani, Portantino,     |     |Bradford,                 |
          |     |Ruskin                    |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis, Monning, Ruskin,   |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Norby, Adams, Fuller      |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
           ----------------------------------------------------------------- 
           
          SUMMARY  :   Enacts several changes to the Private Postsecondary  
          Education Act of 2009 (Act).  Specifically,  this bill  :

          1)Clarifies that remedies available under the former Private  
            Postsecondary and Vocational Education Reform Act (Former Act)  
            are available to students filing legal claims after June 30,  
            2007, for violations that occurred while the Former Act was in  
            place.

          2)Prohibits an unaccredited institution from offering doctoral  
            degrees.

          3)Allows the Bureau for Private Postsecondary Education (Bureau)  
            to publish a list of eligible examinations for  
            ability-to-benefit (ATB) students, if the United States  
            Department of Education (USDE) does not have an approved  
            examination relevant to the specific occupational training  
            program.

          4)Ensures students are provided until the first class day or the  
            seventh day after enrollment, whichever is later, to cancel a  
            program and receive a refund.

          5)Alters the definition of "graduates employed in the field" to  








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            require that graduates be gainfully employed within six months  
            of graduation in a position for which the skills obtained  
            through the education and training provided by the institution  
            are required.

          6)Clarifies that the education specialist and senior specialist  
            positions established within the Bureau are full-time,  
            permanent positions based in the Sacramento office of the  
            Bureau.

           FISCAL EFFECT :  According to the Assembly Appropriations  
          Committee, ongoing special fund, fee-supported 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 48 (Portantino), Chapter 310, Statutes of 2009,  
          establishes the Act and creates the Bureau within DCA for the  
          purpose of regulating private postsecondary educational  
          institutions that provide educational services in California.   
          This bill would enact the following changes to the Act:

          Legal remedies:  The Act extended the time period for students  
          to file legal claims against institutions that violated the  
          Former Act, allowing legal claims to continue to be filed  
          through a normal statute of limitations.  This bill would ensure  
          that the legal remedies provided under the Former Act are also  
          available to these students.  

          Doctoral degrees:  This bill would require 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; this is especially  
          true in professions like education and health care, where  
          certification or licensure is a pre-requisite for employment.   
          Opponents argue that prohibiting unaccredited schools from  








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          offering doctoral level degrees would negatively impact  
          unaccredited schools and their students, putting a number of  
          schools out of business and undermining many students' education  
          efforts to graduate and practice in their chosen profession.  

          ATB tests:  ATB tests are designed to measure whether students  
          have the basic skills needed to benefit from higher education  
          and succeed in the institution.  Tests are approved by the USDE  
          and administered by an independent party.  The Act required  
          institutions to administer ATB tests to students who have not  
          obtained secondary education and required students to pass the  
          ATB test before enrolling.  According to the author, some  
          non-English based training programs do not have relevant  
          USDE-approved tests.  This bill would allow the Bureau to  
          publish a list of eligible examinations if the USDE does not  
          have a relevant examination.

          Employment statistics:  The Act requires institutions to report  
          the number of graduates who are 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.  This bill would  
          require that the skills obtained through the education or  
          training provided be required for the position in order for the  
          job to be counted as a graduate placement.  The author argues  
          that this change is necessary to ensure accurate job placement  
          reporting. 

          Bureau staffing:  AB 48 appropriates $580,000 to the Bureau for  
          the purpose of funding five postsecondary education specialist  
          and senior specialist positions and required that those  
          specialist positions be included in the annual budget for the  
          Bureau.  The author contends that the intent of this language  
          was to ensure that 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.   
          However, the author notes that the Administration has  
          established these positions as limited-term positions located  
          outside of the Sacramento area.  This bill would clarify that  
          the education specialist and senior specialist positions  
          described in AB 48 are to be full-time, permanent positions  
          housed in the Sacramento office of the Bureau.
           








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          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960 

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