BILL ANALYSIS
AB 2393
Page 1
Date of Hearing: May 4, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2393 (Ammiano) - As Amended: April 22, 2010
SUBJECT : Private postsecondary educational institutions: fair
business practices.
SUMMARY : Revises the definition of "graduates employed in the
field" in the California Private Postsecondary Education Act of
2009 (Act) to recognize specified aspects of the Division of
Apprenticeship Standards (DAS) certified apprentice programs.
Specifically, this bill :
Amends the term "graduates employed in the field" for purposes
of the following:
1)With respect to an occupation or job for which DAS, under the
Department of Industrial Relations, has approved a certified
apprenticeship program, "graduates employed in the field"
means graduates who are gainfully employed for not less than
60 days within six months of graduation in a position with job
duties meeting all of the criteria of the apprenticeable
occupation or job set forth by DAS; and,
2)With respect to an occupation or job for which the Board of
Registered Nursing (BRN) has established licensure
requirements, "graduates employed in the field" means
graduates who are gainfully employed for not less than 60 days
within six months of graduation in a position with job duties
meeting all of the criteria of the licensed occupation or job
set forth by BRN.
EXISTING LAW :
1)Provides for the regulation of private postsecondary
educational institutions by the Bureau for Private
Postsecondary Education (Bureau), with specified exceptions,
through the Act.
2)Requires private postsecondary educational institutions to
comply with various fair business practices, as specified.
AB 2393
Page 2
3)Requires private postsecondary educational institutions to
annually report to the Bureau, and publish various statistics
including job placement rates.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS :
Purpose of this bill . According to the author's office, "The
Department of Industrial Relations, DAS oversees apprenticeship
programs in the state by establishing minimum standards and
identifying occupations in which apprenticeships may be offered.
These programs combine job training and supplemental classroom
instruction to transition students into fulltime employment.
"AB 48 (Portantino), Chapter 310, Statutes of 2009 regulated
many, though not all, private post-secondary vocational schools,
but does not require these institutions to satisfy DAS
requirements for apprenticeship programs. Private postsecondary
vocational schools can report, utilize, and advertise
'successful job placement' [figures] that may not accurately
reflect the placement, employment, or financial information
regarding an occupation in an apprenticeship program approved by
DAS or licensed by BRN. Existing law utilizes a loose definition
of 'successful job placement,' if a course gave any benefit in
securing a position related to the coursework, even for just a
single day within the six month period?.[This bill] will ensure
that prospective students receive an accurate accounting of the
number of former graduates who gained employment in the actual
jobs for which they were trained."
Background . DAS oversees apprenticeship programs in the state,
which require on the job training and supplemental classroom
instruction. Upon completion, students transition into fulltime
employment. DAS identifies occupations in which apprenticeships
may be offered and also establishes minimum standards for
certified apprenticeship programs. Apprenticeship programs are
certified for a variety of fields, including the building and
culinary trades.
BRN is responsible for testing and licensing new nurses.
Private postsecondary schools may currently advertise
nursing-related programs that do not align with BRN's minimum
standards. Consequently, a school may offer nursing programs,
but gradutates may not be eligible to sit for a state
AB 2393
Page 3
examination. This bill would prohibit schools from advertising
nursing-related coursework unless it meets current statutory and
regulatory requirements.
This bill would specify that for specific apprenticeship and
nursing programs, graduates counted as employed in the field
must be employed in skilled positions meeting criteria set fort
by DAS or BRN, as applicable. This bill will give prospective
students a better understanding of the possible results from
attending a private postsecondary educational program.
This bill would require that graduates counted as employed in
nursing and apprenticeship fields be employed for at least 60
days within six months of graduation.
Arguments in support . The Consumer Federation of California
writes, "Many of these private postsecondary schools advertise
coursework which suggests that graduates have high rates of
successful job placements in building trades occupations, other
apprenticeable trades, and as licensed nurses. However, current
law does not include any truth in advertising standard to limit
the wildly inflated student success claims of some proprietary
institutions. Current law allows a proprietary institution to
count as a successful job placement any existing student who
spent any amount of time enrolled at the school who finds any
work, for as little as one hour or less, in any field, including
a menial minimum wage job entirely unrelated to the training
program in which they enrolled."
Arguments in opposition . California Association of Private
Postsecondary Schools write, "We believe that, given the recent
passage of the Act of 2009, and even more recent implementation
of the new Bureau, the changes proposed in this bill would add
unneeded complexity and confusion to the existing law.
"The Act already measures all employment obtained by a graduate
within six months, which is stricter than any requirement that
is currently applicable to any public higher education
institution in California. Adding a 60 day requirement within
the six monts does not help either the student or the
institution."
Related legislation . AB 1889 (Portantino) of 2010 enacts
several changes to the Act, including redefining "graduates
employed in the field."
AB 2393
Page 4
Previous legislation . AB 48 (Portantino), Chapter 310, Statutes
2009 established the Act and created the Bureau within the
Department of Consumer Affairs, and provided for Bureau
oversight and regulation of specified California private
postsecondary institutions.
REGISTERED SUPPORT / OPPOSITION :
Support
Consumer Federation of California (sponsor)
California Nurses Association
Faculty Association of California Community Colleges
State Building and Construction Trades Council, AFL-CIO
Opposition
The California Coalition of Accredited Career Schools
California Association of Private Postsecondary Schools
Analysis Prepared by : Sarah Weaver / B.,P. & C.P. / (916)
319-3301