BILL ANALYSIS
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THIRD READING
Bill No: SB 599
Author: Negrete McLeod (D)
Amended: 5/13/09
Vote: 27 - Urgency
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 10-0, 4/27/09
AYES: Negrete McLeod, Wyland, Aanestad, Corbett, Correa,
Florez, Oropeza, Romero, Walters, Yee
SENATE APPROPRIATIONS COMMITTEE : 12-0, 5/28/09
AYES: Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,
Leno, Oropeza, Runner, Walters, Wyland, Yee
NO VOTE RECORDED: Wolk
SUBJECT : Workforce development
SOURCE : Author
DIGEST : This bill requires the successor agency to the
former Bureau of Private Postsecondary and Vocational
Education, when established, to provide school performance
data it receives from schools under its jurisdiction to the
California Postsecondary Education Commission; provides
workforce investment boards, in distributing economic
recovery funds recently made available as part of the
American Recovery and Reinvestment Act of 2009, may work
directly with institutions of higher education and other
training providers; and authorizes the Dental Board of
California to expend the remaining funds currently in the
Dentally Underserved Account until July 1, 2012, as
CONTINUED
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specified.
ANALYSIS :
Existing law:
1. Established the Private Postsecondary and Vocational
Education Reform Act of 1989, which became inoperative
on July 1, 2007, which expressed legislative intent to
ensure minimum standards of instructional quality and
institutional stability and required the Bureau of
Private Postsecondary and Vocational Education (BPPVE)
to, among other things, review and investigate all
institutions, programs and courses of instructions
approved under the Act.
2. Establishes the California Postsecondary Education
Commission (CPEC) to integrate policy and create fiscal
and programmatic analyses about California's
postsecondary education system. Requires CPEC to
identify and recommend policies to meet the state's
educational, research and public service needs.
3. Federal law enacts the American Recovery and
Reinvestment Act of 2009 (ARRA) which will provide
California with approximate $488 million for the
Workforce Investment Act (WIA) and other job training
programs.
4. Federal law enacts WIA which provides funding for
workforce investment activities to states for specified
activities like job training, employment investment,
work incentive programs and employment training outreach
programs.
5. Federal law, under WIA, specifies that 15 percent of a
state's federally allocated funds can be retained by the
state to develop and coordinate workforce development
activities, establishes local workforce development
boards to develop, implement and coordinate workforce
development programs and specifies that the remaining 85
percent of federal funds be allocated to the local
workforce investment boards (WIBs) for the purpose of
carrying out their workforce development activities.
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6. States it is the duty of local workforce boards to,
among other things, coordinate workforce development
activities in the local area and take specified actions
to promote economic development and job training
programs in the area.
7. Establishes the Dental Board of California (DBC) within
the Department of Consumer Affairs for the purpose of
licensing and regulating the practice of dentistry and
requires these activities to be funded from fees imposed
upon licensees.
8. Creates the Dental Corps Loan Repayment program, to be
administered by DBC, to provide up to $105,000 in loan
repayments for dental practitioners who serve in
underserved areas and establishes the Dentally
Underserved Account in the State Dentistry Fund and
transfers $3 million from the Dentistry Fund to the
Dental Account over three years, starting July 1, 2003.
9. Specifies that after a Dental Corps participant has
completed one year of service, the Dental Board shall
provide up to $25,000 for loan repayment from the Dental
Account. A participant who serves a second consecutive
year shall receive up to an additional $35,000 and a
third consecutive year would earn an additional $45,000
in loan repayment. Loan repayments from the Dental
Account may not exceed $105,000.
This bill:
1. Requires the successor agency to the former BPPVE to
transmit any available data regarding school performance
it receives from schools under its jurisdiction to CPEC.
It specifies that this provision will only become
effective if AB 48 (Portantino), which creates a
successor to the BPPVE, is enacted and becomes effective
on or before January 1, 2010.
2. Requires, on or after July 1, 2010, DBC to extend the
California Dental Corps Loan Repayment Program of 2002
and distribute the money remaining in the account until
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July 1, 2012. Specifies that regulations that were
adopted by DBC for the purposes of the program continue
to apply.
3. Provides, for purposes of disbursing economic recovery
funds recently made available as part of the American
Recovery and Reinvestment Act of 2009 to workforce
development programs, that local WIBs may work directly
with institutions of higher education and other training
providers, including accredited private postsecondary
institutions, to quickly design education and training
to fit the needs of the job seekers and employers they
are serving.
Background
Role of the WIBs in the Administration of ARRA . In
addition to their community leadership role, WIBs will
provide stewardship of ARRA funds coming to California for
workforce development. WIA funding in ARRA allocated to
California is $488 million. WIBs have oversight of WIA
funds and will ensure that they are quickly and effectively
put to use, while at the same time ensuring accountability
and transparency. They will also continue in their role of
resource alignment by building relationships and
cross-agency collaboration. WIBs will be particularly
focused on other systems receiving stimulus funding, in
order to maximize the outcomes of the stimulus by
leveraging resources. There are millions of dollars
targeted for job training in transportation, energy,
weatherization, health care and other government programs
and WIBs are currently identifying where these funds will
be allocated in their communities and working to leverage
and coordinate these with WIA funding.
California Postsecondary Education Commission (CPEC) . CPEC
was established in 1974 as the state's planning and
coordinating body for higher education and consists of the
following 16 members: nine members of the general public,
one member from each of California's major education
systems (the California Community Colleges, California
State University, University of California, independent
colleges and universities and the State Board of Education)
and two student representatives.
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One of CPEC's primary statutory purposes is to identify and
recommend policies to meet the state's educational,
research and public service needs. Its external affairs
staff interacts on a daily basis with legislators and their
staff, administrative offices, governmental officials and
media representatives. Its research staff prepares
analyses, briefs and numerous CPEC publications. CPEC also
engages in various continuing activities such as reviewing
proposed academic programs, new campuses or centers,
conducting data analysis of student flow and responding to
requests of the Legislature and Governor.
To date, CPEC has completed very little examination of the
state's private postsecondary industry. While CPEC's
website concedes that "The private sector is a vital part
of meeting the postsecondary educational needs of the State
and should be a major component of the State's efforts to
provide high quality education and address future
enrollment needs", CPEC lacks an active role in the review
and development of this sector.
California's Unemployment Rate . California currently has
an 11.2 percent unemployment rate. This is the highest
rate since April 1983, providing evidence that California's
labor market has clearly deteriorated. According to the
household employment series, civilian employment fell
46,400 in February, while unemployment rose 79,000.
Because of the rise in unemployment, local WIBs report
significant increases in their client base.
Dental Corps Loan Repayment Program . The Program was
created in 2002 [AB 982 (Firebaugh), Chapter 1131, Statutes
of 2002] to increase the number of primary care physicians
and dentists who practice in historically underserved areas
by providing grants to help pay for the high cost of
attending medical or dental school. The bill created three
programs: the Dental Corps Program, the Physician Corps
Program and the Student Loan Repayment Program. The Dental
and Physician Corps Programs are aimed primarily at
existing licensees and were funded by this bill.
A variety of studies and reports in recent years, most
notably the Oral Health Needs Assessment sponsored jointly
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by the Dental Health Foundation and the Department of
Health Services, have documented the significant unmet need
for comprehensive dental care services in California,
especially in underserved areas. The California Dental
Association notes that efforts to encourage dental school
graduates to practice in these areas are made difficult by
the significant student loan debt which most new dentists
face when they graduate and begin practicing often
exceeding $150,000.
DBC selects participants to practice in underserved areas,
in practice settings with a majority of underserved
patients, and gives priority consideration to applicants
who are best suited to the cultural and linguistic needs of
those populations and meet other related criteria. After
each consecutive year of service completed, participants
will receive money for loan repayment ($25,000 for the
first year, $35,000 for the second year, and $45,000 for
the third year) for up to three years. The law states each
participant may receive no more than $105,000 over three
years.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Dental Corps Loan $1,400 through
6/30/2012 Special*
Repayment Program
extension
Data sharing Minors costs ongoing
Special*
* Absent this extension, the funds remaining in the
Dentally Underserved Account would be returned to the
State Dentistry Fund
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** Unknown, contingent upon future legislation
JJA:mw 5/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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