BILL ANALYSIS                                                                                                                                                                                                    


         AB 1889
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        CONCURRENCE IN SENATE AMENDMENTS
        AB 1889 (Portantino)
        As Amended  August 20, 2010
        Majority vote
         
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        |ASSEMBLY:  |50-24|(June 1, 2010)  |SENATE: |23-13|(August 24,    |
        |           |     |                |        |     |2010)          |
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         Original Committee Reference:    HIGHER ED.  

         SUMMARY  :   Enacts several changes to the Private Postsecondary  
        Education Act of 2009 (Act).  Specifically,  this bill  :

        1)Prohibits the Bureau for Private Postsecondary Education (Bureau)  
          from enforcing the rules of the Act from July 1, 2010, until July  
          1, 2011, against institutions certified to offer programs in  
          flight instruction and aircraft maintenance by the Federal  
          Aviation Administration (FAA-approved schools), and requires these  
          institutions to notify the Bureau if the institution operates  
          during the period of July 1, 2010, to July 1, 2011.

        2)Prohibits an unaccredited institution from offering doctoral  
          degrees without disclosing to the prospective student that the  
          degree program is unaccredited, and any known limitations of the  
          unaccredited degree including whether the degree is recognized for  
          licensure or certification in other states. 

        3)Allows the 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  
          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 or  
          utilized to perform the purpose or objective of the position or  
          major responsibilities of the position.








        AB 1889
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        6)Clarifies that the education specialist and senior specialist  
          positions established within the Bureau are full-time, permanent  
          positions to perform work in conformity with the classification  
          specifications as directed by the bureau chief.

         The Senate amendments  :

        1)Exempt FAA-approved schools from Bureau oversight from July 1,  
          2010, until July 1, 2011, and require the institutions to notify  
          the Bureau of operations during this time frame.

        2)Require unaccredited institutions that offer doctoral degrees to  
          disclose specified information to prospective students. 

        3)Alter the definition of "graduates employed in the field."

        4)Remove provisions that would have ensured legal remedies are  
          available to students filing legal claims after June 30, 2007, for  
          violations that occurred during the time that the former Private  
          Postsecondary and Vocational Education Act (Former Act) was in  
          place.

         AS PASSED BY THE ASSEMBLY  , this bill proposed several changes to the  
        Private Postsecondary Education Act of 2009 (Act).  

         FISCAL EFFECT  :  According to the Senate Appropriations Committee,  
        the Department of Consumer Affairs (DCA) contends that locating  
        Educational Specialists positions in Sacramento will result in  
        additional costs of approximately $200,000 related to travel.  

         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.  The major changes  
        to the Act contained in this bill are as follows: 

        Temporary Exemption for FAA-Approved Schools:  Under the Former Act,  
        flight schools were approved and monitored, with certain exemptions  
        from law, under a memorandum of understanding with the FAA.  With  
        the expiration of the prior Act, the MOU also expired.  The new Act  
        does not provide exception to the Act for flight schools.  The  
        decision to regulate flight schools in the new Act was largely in  
        response to recent cases of abrupt flight school closures and lack  
        of appropriate disclosures to students by flight schools in  
        California.  This bill provides a one-year exemption for  







         AB 1889
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        FAA-approved schools from the requirements of the new Act, and  
        requires exempt institutions to notify the Bureau of operations  
        during this period.  

        Unaccredited Doctoral Degrees:  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.   
        This bill would require institutions offering unaccredited doctoral  
        degrees to make disclosures about potential degree limitations to  
        prospective students. 

        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  
        or utilized in 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 appropriated $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 to perform work in conformity with the classification  
        specifications as directed by the bureau chief. 
         
        Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916) 319-3960  
        FN: 0006605