BILL ANALYSIS �
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THIRD READING
Bill No: AB 2099
Author: Frazier (D), et al.
Amended: 8/18/14 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 6-0, 6/25/14
AYES: Liu, Wyland, Correa, Hancock, Huff, Monning
NO VOTE RECORDED: Block
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 62-4, 5/29/14 - See last page for vote
SUBJECT : Postsecondary education: Title 38 awards
SOURCE : Author
DIGEST : This bill establishes minimum student outcome
requirements for postsecondary institutions approved by the
California State Approving Agency for Veterans Education
(CSAAVE) in order to participate in federal veterans' education
benefits.
ANALYSIS :
Existing law:
1.Establishes the California Department of Veterans Affairs to
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provide support to veterans living in California by ensuring
that veterans and their families receive the state and federal
benefits and services to which they are entitled. The CSAAVE
operates under contract with the U.S. Department of Veteran
Affairs. Under the authority of federal law, Title 38 US
Code, the CSAAVE operates as part of the government of the
State of California to approve or disapprove veterans'
education and training programs, prevent abuses, and promote
quality veterans' education by evaluating and monitoring
education and training programs.
2.Establishes the Bureau for Private Postsecondary Education
(BPPE) to provide oversight of private postsecondary
educational institutions operating in California. Established
by AB 48 (Portantino, Chapter 310, Statutes of 2009) which
became effective January 1, 2010, made many substantive
changes that created a foundation for oversight and gave the
new BBPE an array of enforcement tools to ensure schools
comply with the law.
This bill establishes minimum student outcome requirements for
postsecondary institutions approved by the CSAAVE to participate
in federal veterans' education benefits. Specifically, this
bill:
1.Establishes the Title 38 Funding Program and establishes
CSAAVE as responsible for approving qualifying institutions
seeking to enroll veterans or others eligible for Title 38
awards in accordance with federal law, the provisions of this
bill, and any other reasonable criteria established by CSAAVE.
2.Requires CSAAVE to do all of the following:
A. Notify initial Title 38 recipients seeking to attend, or
attending, an institution that is ineligible for initial
and renewal Title 38 awards that the institution is
ineligible for initial Title 38 awards for the academic
year for which the student received an initial award.
B. Provide initial and renewal Title 38 recipients seeking
to attend, or attending an institution that is ineligible
with a complete list of all California postsecondary
educational institutions at which the student would be
eligible to receive a Title 38 award.
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1.Defines a qualifying institution to mean an institution that
complies with the following:
A. Provides information on where to access California
license examination passage rates for undergraduates
enrolled in programs for which licensure is required, if
that data is electronically available through the licensure
agency. Requires the institution to certify compliance to
CSAAVE.
B. Provides evidence of accreditation of the institution
and of all degree programs to CSAAVE. The accrediting
agency shall be recognized by the U.S. Department of
Education. An unaccredited institution participating in
Title 38 award programs on January 1, 2015, shall have
until January 1, 2016, to obtain and provide evidence to
CSAAVE of its candidacy or pre-accreditation status with an
accrediting agency recognized by the U.S. Department of
Education in order for the institution to be eligible for
Title 38 awards for the academic year of 2015-16, or
2016-17, or both, and to obtain and provide evidence to
CSAAVE of accreditation from the accrediting agency by
January 1, 2017, to be eligible for Title 38 awards for the
academic year of 2017-18, and each academic year
thereafter.
C. Meets one of the following requirements:
(1) CSAAVE certifies the institution maintains a
three-year Cohort Default Rate (CDR) of less than 15.5%
and a graduation rate of greater than 30%, as specified;
or, the institution maintains a CDR of less than 10% and
a graduation rate of above 20% (eligible until 2018-19),
as specified; or, less than 40% of undergraduate students
borrow federal loans, as specified.
(2) The institution is a private postsecondary
institution issued an approval to operate from the BPPE.
1.Specifies that compliance with provisions of this bill shall
not be construed as satisfying the requirements for
participation in programs authorized by the federal Higher
Education Act, as specified.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, this bill
places new requirements on both public and private entities,
relative to their interaction with Title 38 awards and
institutions that participate in the program.
CSAAVE: Likely minor, but potentially significant workload
for CSAAVE to verify that institutions seeking to participate
in Title 38 awards meet all of the new requirements. Likely
minor costs to provide notifications to Title 38 award
recipients.
BPPE: In 2015-16, approximately $93,000 in net revenue
($200,000 in gross revenue, off-set by 1 personnel year at
$106,000) from application fees ($5,000 per institution) paid
by any private postsecondary institution that is currently
exempt from BPPE oversight, but will now need to seek an
"approval to operate" certification from the BPPE. Ongoing,
this will also require those institutions to pay an annual fee
of 0.75% of their annual revenue, not to exceed $25,000. The
BPPE estimates annual revenue of $1 million from these fees.
SUPPORT : (Verified 8/18/14)
American Legion, Department of California
AMVETS
California Association of County Veterans Service Officers
California Labor Federation
California State Commanders Veterans Council
Children's Advocacy Institute
Military Officers Association of America, California Council of
Chapters
The Center for Public Interest Law
University of California
Veteran's Legal Clinic, University of San Diego
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
ASSEMBLY FLOOR : 62-4, 5/29/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Ch�vez,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
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Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones-Sawyer,
Levine, Lowenthal, Maienschein, Medina, Mullin, Muratsuchi,
Nazarian, Nestande, Pan, Patterson, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski,
Williams, Yamada, Atkins
NOES: Allen, Bigelow, Jones, Olsen
NO VOTE RECORDED: Achadjian, Conway, Dahle, Donnelly, Beth
Gaines, Harkey, Linder, Logue, Mansoor, Melendez, Wagner,
Waldron, Wilk, Vacancy
PQ:e 8/18/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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