BILL ANALYSIS �
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|Hearing Date:June 6, 2011 |Bill No:AB |
| |1013 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: AB 1013Author:Higher Education Committee
As Introduced: February 18, 2011 Fiscal:Yes
SUBJECT: Private postsecondary education.
SUMMARY: Clarifies provisions of the California Private Postsecondary
Education Act and the related oversight provided by the Bureau for
Private Postsecondary Education.
Existing law:
1)Establishes the Bureau of Private Postsecondary Education (Bureau)
within the Department of Consumer Affairs (DCA) and provides for
Bureau oversight and regulation of California private postsecondary
institutions under the California Private Postsecondary Education
Act of 2009 (Act). (Business and Professions Code (BPC) � 101 and
Education Code (EC) � 94820)
2)Defines "Ability-to-benefit student" (ATB) as a student who does not
have a certificate of graduation from a school providing secondary
education, or a recognized equivalent of that certificate. Provides
that before an ATB student may execute an enrollment agreement, the
institution shall have the student take an independently
administered examination from the list of examinations prescribed by
the United States Department of Education (USDE). Specifies that
the student may not enroll unless he or she achieves a score
demonstrating that the student may benefit from the education and
training being offered. (EC �� 94811, 94904)
3)Specifies certain requirements pertaining to cancellations, refunds
and withdrawals for an institution that does not participate in the
federal student financial aid programs, including one that provides
for a refund of 100 percent of the amount paid for institutional
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charges, less a reasonable deposit or application fee not to exceed
two hundred fifty dollars ($250), if notice of cancellation is made
through attendance at the first class session, or the seventh class
day after enrollment, whichever is later. (EC � 94920)
This bill:
1)Allows the Bureau to publish a list of eligible examinations for ATB
students, if the USDE does not have an approved examination relevant
to the specific occupational training program.
2)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.
FISCAL EFFECT: According to the Assembly Committee on Appropriations
analysis dated April 13, 2011, this bill has negligible fiscal impact.
COMMENTS:
1. Purpose. This bill is sponsored by the Author . According to the
Author, the bill is intended to make necessary, technical changes
to the Act established in AB 48 (Portantino, Chapter 310, Statutes
of 2009). The Author provides rationale for these changes as
follows:
a. ATB tests: According to the Author, some non-English based
training programs do not have relevant USDE-approved tests so
this clarification will allow the Bureau to publish a list of
eligible examinations if the USDE does not have a relevant
examination.
Under Federal law, students without a high school diploma or
General Educational Development (GED) can qualify for federal
Title IV loans, grants, and campus-based aid if they pass an
independently administered test of their basic math and English
skills, called an ATB test. The intent of the test is to measure
whether students have the basic skills needed to benefit from
higher education and succeed in the institution. Tests are
approved by the USDE and administered by an independent party.
Under Title IV, students must pass an ATB before receiving any
federal funds.
The Act requires all institutions covered by the Act to
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administer ATB tests to students who have not obtained secondary
education. Students must pass a USDE-approved ATB test before
enrolling in the institution. This bill allows the Bureau to
publish a list of eligible examinations if the USDE does not have
a relevant examination .
b. Cancellation policies: The Author notes that this bill
corrects a technical error regarding refund calculations.
The intent of AB 48 was to allow students to cancel a program and
receive a 100% refund, less a deposit not to exceed $250, until
the first class day or the seventh day after enrollment,
whichever is later. However, one section referencing this refund
policy inadvertently reads that students shall have until the
first class day or the seventh class day after enrollment to
cancel a program. This bill corrects this error and conflict .
2. Background. After numerous legislative attempts to remedy the laws
and structure governing regulation of private postsecondary
institutions, AB 48 (Portantino, Chapter 310, Statutes of 2009),
established the Act and created the Bureau within DCA for the
purpose of regulating private postsecondary educational
institutions that provide educational services in California. The
Act made many substantive changes that both created a new, solid
foundation for oversight and responded to the major problems with
the Former Act. The Act as created by AB 48 requires all
unaccredited colleges in California to be approved by the new
Bureau, and all nationally accredited colleges to comply with
numerous student protections. It also establishes prohibitions on
false advertising and inappropriate recruiting. The Act requires
disclosure of critical information to students such as program
outlines, graduation and job placement rates, and license
examination information, and ensures colleges justify those
figures. The Act also guarantees students can complete their
educational objectives if their institution closes its doors, and,
most importantly, it gives the Bureau an array of enforcement tools
to ensure colleges comply with the law.
3. Similar and Related Legislation. This bill contains the same
technical provisions as AB 1889 (Portantino, 2010). In addition,
AB 1889 contained provisions regarding doctoral degrees offered by
unaccredited institutions, the calculation of placement rates, and
Bureau employment requirements. AB 1889 was vetoed by Governor
Schwarzenegger due to concerns over Bureau employment requirements.
AB 611 (Gordon) of 2011 sets forth certain disclosure requirements
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pertaining to accreditation status, licensure, and related
limitations for unaccredited doctoral programs. This bill is set
for hearing in this Committee on June 6, 2011.
SB 498 (Liu) of 2011 abolishes the Bureau and transfers the
Bureau's powers and duties under the Act to the California
Postsecondary Education Commission. The bill is a two-year bill
pending hearing in this Committee.
SB 619 (Fuller) of 2011 exempts flight instructors or flight
schools that do not require the upfront payment of tuition or fees,
and that do not require students to enter into a contract of
indebtedness in order to receive training, from Bureau regulation.
The bill is pending in the Assembly.
SB 675 (Wright) of 2011 requires that private postsecondary
institutions subject to the Act administer a test of English
language proficiency to a nonnative speaker of English, as defined,
prior to enrolling the student. The bill failed passage in this
Committee.
AB 797 (Conway) of 2011 exempts schools of cosmetology, as defined,
from the Act. The bill has not been set for hearing in the
Assembly Committee on Higher Education.
AB 2393 (Ammiano, 2010) altered the definition of "graduates
employed in the field" for apprenticeship and nursing programs.
The bill was vetoed by the Governor.
SUPPORT AND OPPOSITION:
Support:
None on file as of May 31, 2011
Opposition:
None on file as of May 31, 2011
Consultant:Sarah Mason
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