BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 599
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          SENATE THIRD READING
          SB 599 (Negrete McLeod)
          As Amended August 31, 2009
          2/3 vote.  Urgency  

           SENATE VOTE  :39-0  
           
           BUSINESS & PROFESSIONS    10-0  HIGHER EDUCATION    9-0         
           
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          |Ayes:|Hayashi, Emmerson,        |Ayes:|Portantino, Conway,       |
          |     |Conway, Eng,              |     |Block, Cook,              |
          |     |Hernandez, Nava, Niello,  |     |Fong, Galgiani, Huber,    |
          |     |John A. Perez, Ruskin,    |     |Ma, Ruskin                |
          |     |Smyth                     |     |                          |
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           APPROPRIATIONS      17-0                                        
           
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          |Ayes:|De Leon, Conway, Ammiano, |     |                          |
          |     |                          |     |                          |
          |     |Charles Calderon, Coto,   |     |                          |
          |     |Davis,                    |     |                          |
          |     |Fuentes, Hall, Harkey,    |     |                          |
          |     |Miller,                   |     |                          |
          |     |Nielsen, John A. Perez,   |     |                          |
          |     |Skinner,                  |     |                          |
          |     |Solorio, Audra            |     |                          |
          |     |Strickland, Torlakson,    |     |                          |
          |     |Hill                      |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Requires the successor agency to the Bureau for  
          Private Postsecondary and Vocational Education (BPPVE) to  
          transmit data on school performance to the California  
          Postsecondary Education Commission (CPEC), extends the  
          California Dental Corps Loan Repayment Program of 2002 (DCLRP),  
          and authorizes local workforce investment boards (WIBs) to work  
          directly with institutions of higher education and other  
          training providers to design education and training programs for  
          the purpose of distributing funds provided by the federal  
          American Recovery and Reinvestment Act of 2009 (ARRA).   
          Specifically,  this bill  :   








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          1)States that if AB 48 (Portantino) of 2009 is enacted and  
            becomes effective on or before January 1, 2010, and a  
            successor agency to BPPVE is created, the successor agency  
            must transmit any available data regarding school performance,  
            including attendance and graduation rates, it receives from  
            any schools under its jurisdiction to the CPEC.

          2)Permits WIBs to work directly with institutions of higher  
            education and other training providers, including 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 for purposes of disbursing economic recovery  
            funds made available as part of ARRA.  

          3)States that for the purposes of this bill, any laws governing  
            workforce development programs provided for under ARRA,  
            entrance into a registered apprenticeship program shall be  
            considered placement into a job. 

          4)Requires the Dental Board of California (DBC), on or after  
            July 1, 2010, to extend the DCLRP and distribute the money  
            remaining in the account until July 1, 2012.  Specifies that  
            regulations that were adopted by the DBC for the purposes of  
            the DCLRP shall apply.  

          5)Adds an urgency clause because the bill is necessary to  
            disburse economic recovery funds recently made available by  
            Congress as part of ARRA to workforce development programs in  
            the state and to extend the operation of a dental assistance  
            program as quickly as possible.

           FISCAL EFFECT  :  According to Assembly Appropriations Committee:

          1)Extending the Dental Corps Loan Repayment program will allow  
            expenditure of $1.4 million remaining in the Dentally  
            Underserved Account within the State Dental Fund.

          2)Cost for the new private postsecondary bureau to share data  
            with CPEC would be minor and absorbable.









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           COMMENTS  :  Role of the WIBs in the Administration of ARRA:   
          California's 49 Local Workforce Investment Areas (LWIAs) are  
          designated by the Governor based on population and commonality  
          of labor market. Each LWIA is administered by a local WIB  
          certified by the state in partnership with local elected  
          officials.  The WIBs are comprised of representatives from  
          private sector businesses, organized labor, community-based  
          organizations, local government agencies, and local education  
          agencies.  WIBs provide policy guidance, designate operators for  
          their areas, One-Stop Career Centers, and oversee the job  
          training activities within their local areas.

          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.

          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  








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          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. 

          Dental Corps Loan Repayment Program:  DCLRP 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 by the Dental  
          Health Foundation and the Department of Health Services, have  
          documented the significant unmet need for comprehensive dental  
          care services in California, and 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.








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           Analysis Prepared by  :    Sarah Huchel / B. & P. / (916) 319-3301  



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