BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2534
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          ASSEMBLY THIRD READING
          AB 2534 (Block)
          As Amended  March 29, 2012
          Majority vote 

           HIGHER EDUCATION    9-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Block, Olsen, Achadjian,  |Ayes:|Fuentes, Harkey,          |
          |     |Brownley, Fong, Galgiani, |     |Blumenfield, Bradford,    |
          |     |Lara, Miller, Portantino  |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Ammiano, Hill, Lara,      |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :   Extends the sunset date on the California Private 
          Postsecondary Education Act from January 1, 2015, to January 1, 
          2016.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, requires funding the Bureau for Private Postsecondary 
          Education (Bureau) for one additional year.  For 2012-13, the 
          Governor's budget proposes special fund expenditures of $8.3 
          million, and 57 positions, to operate the Bureau.  �Private 
          Postsecondary Education Administration Fund]

           COMMENTS  :  California has a long and arduous history of 
          attempted oversight of the private postsecondary education 
          sector.  On January 1, 2007, the former law authorizing the 
          regulation of the private postsecondary education sector was 
          allowed to sunset.  Between 2007 and 2009, several attempts to 
          establish a new regulatory structure failed.  In 2009, AB 48 
          (Portantino), Chapter 310, Statutes of 2009, established a new 
          Bureau within the Department of Consumer Affairs to enforce the 
          provisions of the new Act, which are scheduled to sunset on 
          January 1, 2015.

          A February 2012 joint hearing of the Assembly Higher Education 
          Committee and the Senate Business, Professions, and Economic 
          Development Committee focused on private postsecondary 
          oversight.  According to the author, the results of that hearing 








                                                                  AB 2534
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          made clear that the Bureau is both effective and important but 
          has been hindered by a slower than expected funding stream and 
          staff hiring.  (The Bureau is only expected to become 
          fully-staffed in the current fiscal year.)  This bill extends 
          the Bureau's sunset by one year so that it may become fully 
          operational.


           Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 
          319-3960


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