BILL ANALYSIS �
AB 2534
Page 1
Date of Hearing: April 17, 2012
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 2534 (Block) - As Amended: March 29, 2012
SUBJECT : California Private Postsecondary Education Act of
2009.
SUMMARY : Extends the sunset date on the California Private
Postsecondary Education Act from January 1, 2015 to January 1,
2016.
EXISTING LAW establishes the Private Postsecondary Education Act
which, among its provisions, requires numerous program
performance and student outcome data disclosures and prohibits
certain conduct on the part of private postsecondary education
institutions. The Act establishes the Bureau for Private
Postsecondary Education (Bureau) within the Department of
Consumer Affairs to provide oversight and regulation of private
postsecondary institutions.
FISCAL EFFECT : Unknown
COMMENTS : Background . California has a long and arduous
history of attempted oversight of the private postsecondary
education sector. During the late 1980s regulation of the
industry was carried out by a division within the State
Department of Education. During that time the state developed a
reputation as the "diploma-mill capital of the world." As a
result of concerns over the integrity and value of the degrees
issued by private institutions, the state's regulatory program
was overhauled and oversight responsibility for private colleges
was transferred to a 20-member Council (SB 190, Morgan, Chapter
1307, Statutes of 1989). Concurrently, the Maxine Waters School
Reform and Student Protection Act was adopted (AB 1402, Waters,
Chapter 1239, Statutes of 1989) and provided somewhat different
requirements and standards for private institutions. The law
governing the Council was merged with the Waters Act, creating a
fragmented structural framework with numerous duplicative and
conflicting statutory provisions. On January 1, 2007, the law
authorizing the regulation of the private postsecondary
education sector in California was allowed to sunset. Between
2007 and 2009 there were several failed attempts to establish a
new regulatory structure. In 2009, the Legislature and the
AB 2534
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Governor reached agreement on AB 48 (Portantino, Chapter 310,
Statutes of 2009) to establish a new Bureau to enforce the
provisions of the new Act. The provisions of AB 48 are
scheduled to sunset on January 1, 2015.
Purpose of this bill . On February 14, 2012 the Assembly
Committee on Higher Education and the Senate Committee on
Business, Professions, and Economic Development held a joint
hearing to discuss the issue of private postsecondary oversight
in California. According to the author, the results of that
hearing made clear that the Bureau is both effective and
important, but has been hindered by a slower than expected
funding stream and staff hiring. According to the author, this
bill seeks to extend the Bureau's sunset by one year so that,
given the longer than expected timeframe to begin full Bureau
operations, it may have enough time to become fully operational.
REGISTERED SUPPORT / OPPOSITION :
Support
None on File
Opposition
None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960