BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 619|
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THIRD READING
Bill No: SB 619
Author: Fuller (R)
Amended: 4/13/11
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 9-0,
4/25/11
AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete
McLeod, Vargas, Walters, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : California Private Postsecondary Education Act
of 2009: exemptions
SOURCE : National Air Transportation Association
DIGEST : This bill exempts flight instructors or flight
schools that do not require the upfront payment of tuition
or fees, and do not require students to enter into a
contract of indebtedness in order to receive training, from
regulation by the Bureau of Private Postsecondary Education
(BPPE).
ANALYSIS :
Existing law:
1. Establishes the BPPE within the Department of Consumer
Affairs and provides for BPPE oversight and regulation
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of California private postsecondary institutions.
2. Exempts the following from oversight by the BPPE:
A. An institution that offers solely avocational or
recreational educational programs.
B. An institution offering educational programs
sponsored by a bona fide trade, business,
professional, or fraternal organization, solely for
that organization's membership.
C. A postsecondary educational institution
established, operated, and governed by the federal
government or by this state or its political
subdivisions.
D. An institution offering test preparation for
examinations required for admission to a
postsecondary educational institution or continuing
education or license examination preparation, if the
institution or the program is approved, certified, or
sponsored by:
A government agency, other than the BPPE,
that licenses persons in a particular profession,
occupation, trade, or career field.
A state-recognized professional licensing
body, such as the State Bar of California, that
licenses persons in a particular profession,
occupation, trade, or career field.
A bona fide trade, business, or
professional organization.
3. Specifies that the BPPE shall not enforce the Private
Postsecondary Education Act (Act) against an institution
that offers flight instruction or an institution that
offers Federal Aviation Administration (FAA) certified
educational programs in aircraft maintenance until July
1, 2010. Requires an institution described above to
notify the BPPE of operation.
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4. Establishes numerous fair business practices for
institutions covered by the Act, including prohibiting
an institution from promising employment or otherwise
overstating the availability of jobs or making untrue or
misleading statements regarding student completion,
placement or expected salary rates.
5. Sets forth certain disclosure requirements pertaining to
completion, placement, licensure, and salary. Provides
that, for the purposes of determining placement rates,
"graduates employed in the field" means graduates who
are gainfully employed within six months of graduation
in a position for which the skills obtained through the
education and training provided by the institution are
required or provided a significant advantage to the
graduate in obtaining the position.
6. 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 charges, less a reasonable deposit or
application fee not to exceed $250, if notice of
cancellation is made through attendance at the first
class session, or the seventh class day after
enrollment, whichever is later.
7. Requires the Legislative Analyst's Office, by October 1,
2013, to report to the Legislature and the Governor on
the appropriateness of the exemptions provided by the
bill. Requires the BPPE to contract with the Bureau of
State Audits (BSA), by August 1, 2013, to conduct a
performance audit to evaluate the effectiveness and
efficiency of the BPPE operations. Specifies that BSA
is required to report the results of the audit to the
Legislature and the Governor.
This bill adds flight instructors or flight schools that
provide flight instruction pursuant to FAA certification
and meet the following requirements to the list of entities
exempt from the Act and BPPE oversight:
1. The flight instructor or flight school does not require
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students to enter into written or oral contracts of
indebtedness.
2. The flight instructor or flight school does not require
prepayment of tuition or fees and does not accept
payment of tuition or fees in excess of $2,500.
Background
The FAA regulates most aspects of flight instruction.
However, federal law does not regulate the business
practices of many of these flight schools, including the
types of student protections provided by Bureau. The FAA
regulates flight schools based on certain designations
attained by an individual or institution:
1. Part 61 of Title 14 of the Code of Federal Regulations
contains the provisions related to the certification of
pilots, flight instructors, and ground instructors.
Subpart H of this part, beginning with Section161.181,
lays out minimum competency requirements needed to be
certified as a flight instructor, as well as basic rules
and requirements that these flight instructors must
follow.
2. Part 141 of Title 14 of the Code of Federal Regulations
is a more intensive set of standards for pilot training.
The FAA regulations refer to institutions certified
under Part 141 as "pilot schools." Institutions with
Part 141 certification are subject to more intensive
regulation than Part 61 instructors. The additional
requirements include: greater qualifications for chief
and assistant instructors; minimum record keeping and
office-base requirements; submission to inspection by
the FAA; more intensive requirements including
instruction syllabus; and a requirement that its
graduates recommended for pilot licensure maintain an 80
percent first-time passage rate on a practical or
knowledge test required for pilot licensure.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/10/11)
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National Air Transportation Association (source)
Aircraft Owners and Pilots Association
Association of California Airports
California Airports Council
California Pilots Association
National Air Transportation Association
Southwest Chapter of the American Association of Airports
ARGUMENTS IN SUPPORT : According to the Aircraft Owners
and Pilots Association (AOPA), a 2003 economic impact study
determined that nine percent of the state gross product and
nine percent of the jobs in California are attributable to
aviation. AOPA believes that the provisions contained in
this bill reflect a thoughtful and reasonable solution to
the problem of impact of regulation on small operators and
independent, certified flight instructors.
California Airports Council (CAC) supports this measure.
The CAC "recognizes the need to protect students in the
private postsecondary sector," but also argues that if the
same types of regulations are imposed on flight schools
they may "result in harmful impacts to the California
flight school industry." They emphasize that "unlike other
types of private postsecondary schools, flight schools are
sometimes characterized by single instructors and limited
school facility infrastructure. The group supports this
bill as an "effective yet manageable regulatory structure
for California flight schools."
JJA:kc 5/10/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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