BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1247 (Lieu) - California Private Postsecondary Education Act
          
          Amended: As introduced          Policy Vote: Education 9-0,  
          BP&ED 8-1
          Urgency: No                     Mandate: No
          Hearing Date: May 12, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 1247 extends the California Private  
          Postsecondary Education Act of 2009, which governs the  
          regulation of private postsecondary educational institutions and  
          the operation of the Bureau for Private Postsecondary Education  
          (BPPE), until January 1, 2019.

          Fiscal Impact: Approximately $11 million (Special Fund)  
          annually, to fund the BPPE at the level proposed in the  
          Governor's 2014-15 Budget. The BPPE is funded by fees collected  
          from institutions it regulates, as well as certain student fees  
          (for the Student Tuition Recovery Fund it administers).

          Background: Existing law establishes the California Private  
          Postsecondary Education Act (CPPE Act) of 2009, which provides  
          for the approval, regulation, and enforcement of certain types  
          of private postsecondary educational institutions by the BPPE  
          within the Department of Consumer Affairs (DCA), until January  
          1, 2015.  (Education Code � 94800-94950) 

          Proposed Law: SB 1247 extends the California Private  
          Postsecondary Education Act of 2009, which governs the  
          regulation of private postsecondary educational institutions and  
          the operation of the Bureau for Private Postsecondary Education  
          (BPPE), until January 1, 2019.

          Related Legislation: SB 1069 (Torres) requires the BPPE to adopt  
          regulations to make students who utilize a Cal Grant, a Pell  
          Grant, or both, eligible to apply for payment from the Student  
          Tuition Recovery Fund to those grant programs. That bill will  
          also be heard din the Committee on May 12, 2014.









          SB 1247 (Lieu)
          Page 1


          SB 498 (Liu) 2011 would have abolished the BPPE and transferred  
          its powers and duties under the CPPE Act to the California  
          Postsecondary Education Commission.  SB 498 was held in the  
          Senate Committee on Business, Professions and Economic  
          Development.

          AB 48 (Portantino) Ch. 310/2009 was established the CPPE Act of  
          2009, which took effect January 1, 2010. It established the  
          current regulatory structure for oversight of private  
          postsecondary educational institutions operating with a physical  
          presence in California, and the BPPE.

          Staff Comments: The BPPE regulates private postsecondary  
          institutions, provides oversight, and enforces the provisions of  
          the CPPE Act. The BPPE also investigates unlicensed activity,  
          and administers the Student Tuition Recovery Fund. Without a  
          sunset extension, the BPPE's authority will sunset with the CPPE  
          Act, and the fees it collects to fund itself will ceas

          The Governor's proposed 2014-15 budget would appropriate  
          approximately $11 million in state operations funding to the  
          BPPE (Special Fund). This proposal increases BPPE funding by  
          $1.6 million (for 11 new PYs) above the 2013-14 level; the  
          2013-14 Budget Act appropriation was approximately $1.4 million  
          more than the previous year.