BILL ANALYSIS
SB 599
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Date of Hearing: July 7, 2009
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Anthony Portantino, Chair
SB 599 (Negrete McLeod) - As Amended: May 13, 2009
SENATE VOTE : 39-0
SUBJECT : Workforce development.
SUMMARY : Enacts provisions relative to the oversight of private
postsecondary educational institutions, the loan repayment
program for dental practitioners, and eligible workforce
training programs. Specifically, this bill :
1)Requires the successor agency to the former Bureau for Private
Postsecondary and Vocational Education (BPPVE) to transmit any
available data regarding school performance to the California
Postsecondary Education Commission (CPEC). Provides that this
provision is contingent upon the enactment of AB 48
(Portantino), which establishes the successor to the BPPVE
(New Bureau).
2)Provides the Dental Board of California (DBC) with the
authority to expend the remaining funds currently in the
Dentally Underserved Account until July 1, 2011.
3)Allows local workforce investment boards (WIBs), when
disbursing federal Workforce Investment Act (WIA) funds to
workforce development programs, to work directly with
institutions of higher education and other training providers,
including accredited private postsecondary institutions.
Provides that this provision is contingent upon the enactment
of AB 48.
EXISTING LAW :
1)Existing law relating to the regulation of private
postsecondary education is inoperative. Recently inoperative
statute expressed the intent of the Legislature to provide for
the protection and interests of students and institutions that
have matters pending under the BPPVE, which became inoperative
on July 1, 2007; provided for the continuation of all matters
pending before the BPPVE on July 1, 2007, until July 1, 2008;
and allowed, until July 1, 2008, limited state oversight of
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private postsecondary institutions by the Department of
Consumer Affairs (DCA). The statutes became inoperative on
July 1, 2008.
2)Establishes 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)States that it is the duty of WIBs 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.
4)Establishes the DBC within the DCA to license and regulate the
practice of dentistry and creates the Dental Corps Loan
Repayment program to provide loan repayments for dental
practitioners who serve in underserved areas.
FISCAL EFFECT : 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
*Absent this extension, the funds remaining in the Dentally
Underserved Account would be returned to the State Dentistry
Fund.
COMMENTS : Second committee of reference: This bill was heard
and approved by the Assembly Business and Professions Committee
on June 30, 2009. This analysis focuses on the higher education
policies in this bill. Policy issues relative to such things as
the DBC and the operation of the WIBs fall within the
jurisdiction of the Assembly Business and Professions Committee
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and are not addressed in this analysis.
Purpose of this bill : According to the author, the purpose of
this bill is to enact findings from an information hearing held
by the Senate Business, Professions and Economic Development
Committee earlier this year on workforce development. The
hearing examined the ability of private postsecondary
institutions to fill the career preparation needs of
California's workforce and evaluate policy options that allow
them to expand their workforce development programs with the
requisite amount of oversight required to protect students. The
hearing highlighted two of the policy issues addressed by this
bill:
1)When the BPPVE was in existence, there was no requirement for
the BPPVE to transmit information regarding the performance of
institutions under its jurisdiction to CPEC. As a result,
CPEC did not have access to information needed to evaluate the
efficacy of these institutions in educating students and
assisting in the development of California's workforce. The
author believes that by requiring the New Bureau to provide
this information to CPEC, this bill will ensure CPEC has the
data necessary to evaluate the performance of private
postsecondary institutions for the purpose of policy analysis
and recommendation.
2)Existing law does not expressly authorize WIA funds to be used
for educational and job training programs at private
postsecondary institutions. The author argues that private
institutions often have partnerships with local industries and
can adapt their curriculum to the changing needs of the
economy faster than public institutions; therefore, they
should be eligible to receive WIA funds through local WIBs.
Related Legislation: AB 48 (Portantino), pending in the Senate
Business and Professions Committee, renames the BPPVE as the
Bureau for Private Postsecondary Education within the DCA and
provides for oversight and regulation of private postsecondary
institutions operating in California.
Suggested Amendments : To ensure that private postsecondary
institutions that are currently qualified to receive federal
financial aid funds through Title IV of the Higher Education Act
of 1965 will also be eligible to receive WIA funds through local
WIBs should AB 48 not be enacted, committee staff suggests the
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following amendments:
1) Page 4, lines 27 through 34 should be amended to read:
14206.1. For purposes of disbursing economic recovery funds
made available as part of the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) to workforce
development programs, local workforce investment boards may
work directly with public institutions of higher education
and other training providers, including accredited private
postsecondary institutions that participate in the federal
student financial aid programs under Title IV of the Higher
Education Act of 1965 and comply with applicable regulations
pursuant to the federal act, to quickly design education and
training to fit the needs of the job seekers and employers
they are serving.
2) Page 4, lines 35 through 39 should be amended to read:
SEC. 4. Sections 1 and 3 of this act shall only become
operative if Assembly Bill 48 is also enacted and becomes
effective on or before January 1, 2010, and that bill
creates a successor agency to the former Bureau for Private
Postsecondary and Vocational Education.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960