BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 634
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 634 (Gomez) - As Amended:  April 1, 2013 

          Policy Committee:                              Higher  
          EducationVote:11-0
                        B&P                                   12-0    

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Bureau for Private Postsecondary  
          Education (BPPE) to promulgate regulations to clarify the  
          definition of avocational education for purposes of the  
          California Private Postsecondary Act of 2009.

           FISCAL EFFECT  

          Minor absorbable costs for the bureau to promulgate the  
          clarifying regulations.

           COMMENTS  


           1)Background  . The BPPE is responsible for the implementation and  
            enforcement of the Private Postsecondary Act.  The BPPE  
            currently regulates about 1,900 non-public institutions, many  
            of which are vocational institutions offering skills training  
            or entry-level positions in a variety of industries and  
            trades, while others offer degree programs that are academic  
            in nature, such as psychology, computer science, and business.  
            The Act provides numerous exemptions from BPPE oversight,  
            including for institutions that offer solely avocational or  
            recreational educational programs.



           2)Purpose  . The author and sponsors-a  coalition of institutions  
            that provide non-academic, recreational English language  
            services-have been working with the BPPE to clarify that  








                                                                  AB 634
                                                                  Page  2

            English training programs used by international tourists for  
            recreational purposes are considered avocational and therefore  
            exempt from the Act and BPPE oversight. According to the  
            author,"? as a result of confusing regulatory language, some  
            of these schools believe they are regulated by the BPPE, while  
            others do not. These schools do not provide degrees, do not  
            promise employment, and do not receive any [federal student  
            aid] funding, and thus, none of the traditional consumer  
            protection issues apply to these schools." AB 634 is intended  
            to clarify that such schools fall within the definition of  
            avocational education and therefore are exempt from the Act.



            It is staff's understanding that this bill is a vehicle to be  
            used only in the event that sponsors and the BPPE reach a  
            conclusion  that a statutory solution is necessary to address  
            this issue.

          Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081