SB 410: California Private Postsecondary Education Act of 2009.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-09-03
Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary schools in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs.
The act requires an institution to annually report to the bureau specified information regarding completion rates and license examination passage rates, among other things, and to publish that information on its School Performance Fact Sheet. The act defines numerous terms for purposes of this reporting requirement, including defining graduates to mean students who complete a program within 100% of the published program length.
This bill would recharacterize graduates as on-time graduates for purposes of a completion rate calculation, and would redefine the term graduate for other purposes to mean an individual who has been awarded a degree or diploma.
Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary schools in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs.
The act requires an institution to annually report to the bureau specified information regarding completion rates and license examination passage rates, among other things, and to publish that information on its School Performance Fact Sheet. The act defines numerous terms for purposes of this reporting requirement, including defining graduates to mean students who complete a program within 100% of the published program length.
This bill would recharacterize graduates as on-time graduates for purposes of a completion rate calculation, and would redefine the term graduate for other purposes to mean an individual who has been awarded a degree or diploma.
Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary schools in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs.
The act requires an institution to annually report to the bureau specified information regarding completion rates and license examination passage rates, among other things, and to publish that information on its School Performance Fact Sheet. The act defines numerous terms for purposes of this reporting requirement, including defining graduates to mean students who complete a program within 100% of the published program length.
This bill would add the classification of on-time graduates with this same meaning, for purposes of a completion rate calculation, and would redefine the term graduate for these purposes to mean an individual who has been awarded a degree or diploma.
Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary schools in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs.
The act requires an institution to annually report to the bureau specified information regarding completion rates and license examination passage rates, among other things, and to publish that information on its School Performance Fact Sheet. The act defines numerous terms for purposes of this reporting requirement, including defining graduates to mean students who complete a program within 100% of the published program length.
This bill would add the classification of on-time graduates with this same meaning, for purposes of a completion rate calculation, and would redefine the term graduate to mean an individual who has been awarded a degree or diploma.
Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires the bureau to establish, by regulation, a process pursuant to which an institution that is exempt from the act may request and obtain from the bureau verification that the institution is exempt.
This bill would make nonsubstantive changes to the provision requiring the bureau to establish that verification process.
Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act requires the bureau to establish, by regulation, a process pursuant to which an institution that is exempt from the act may request and obtain from the bureau verification that the institution is exempt.
This bill would make nonsubstantive changes to the provision requiring the bureau to establish that verification process.
As used in this article, the following terms have the following meanings:
(a)Cohort population means the number of students that began a program on a cohort start date.
(b)Cohort start date means the first class day after the cancellation period during which a cohort of students attends class for a specific program.
(c)On-time graduates means the number of students who complete a program within 100 percent of the published program length. An institution may separately state completion information for students completing the program within 150 percent of the original contracted time, but that information may not replace completion information for students completing within the original scheduled time. Completion information shall be separately stated for each campus or branch of the institution.
(d)Graduates available for employment means the number of graduates minus the number of graduates unavailable for employment.
(e)(1)Graduates employed in the field means graduates who are gainfully employed in a single position for which the institution represents the program prepares its graduates, beginning within six months after a student completes the applicable educational program. For occupations for which the state requires passing an examination, the period of employment shall begin within six months of the announcement of the examination results for the first examination available after a student completes an applicable educational program.
(2)The bureau shall define by July 1, 2014, specific measures and standards for determining whether a student is gainfully employed in a full-time or part-time position for which the institution represents the program prepares its graduates, including self-employment or conducting freelance work, and may set the standards for the hours per week and duration of employment and utilize any job classification methodology the bureau determines appropriate for this purpose, including, but not limited to, the United States Department of Labors Standard Occupational Classification codes.
(3)This subdivision shall not prohibit the bureau from authorizing an institution to aggregate single positions held by a graduate for purposes of meeting the hours per week standards established by the bureau.
(f)Graduates unavailable for employment means graduates who, after graduation, die, become incarcerated, are called to active military duty, are international students that leave the United States or do not have a visa allowing employment in the United States, or are continuing their education at an accredited or bureau-approved postsecondary institution.
(g)Students available for graduation means the cohort population minus the number of students unavailable for graduation.
(h)Students unavailable for graduation means students who have died, been incarcerated, or called to active military duty.
SEC. 2.Section 94929 of the Education Code is amended to read:94929.(a)An institution shall annually report to the bureau, as part of the annual report, and publish in its School Performance Fact Sheet, the completion rate for each program. Except as provided in subdivision (b), the completion rate shall be calculated by dividing the number of on-time graduates by the number of students available for graduation.
(b)In lieu of calculating graduation data pursuant to subdivision (a), an institution may report graduation data reported to, and calculated by, the Integrated Postsecondary Education Data System of the United States Department of Education.
As used in this article, the following terms have the following meanings:
(a)Cohort population means the number of students that began a program on a cohort start date.
(b)Cohort start date means the first class day after the cancellation period during which a cohort of students attends class for a specific program.
(c)On-time graduates means the number of students who complete a program within 100 percent of the published program length. An institution may separately state completion information for students completing the program within 150 percent of the original contracted time, but that information may not replace completion information for students completing within the original scheduled time. Completion information shall be separately stated for each campus or branch of the institution.
(d)Graduates available for employment means the number of graduates minus the number of graduates unavailable for employment.
(e)(1)Graduates employed in the field means graduates who are gainfully employed in a single position for which the institution represents the program prepares its graduates, beginning within six months after a student completes the applicable educational program. For occupations for which the state requires passing an examination, the period of employment shall begin within six months of the announcement of the examination results for the first examination available after a student completes an applicable educational program.
(2)The bureau shall define by July 1, 2014, specific measures and standards for determining whether a student is gainfully employed in a full-time or part-time position for which the institution represents the program prepares its graduates, including self-employment or conducting freelance work, and may set the standards for the hours per week and duration of employment and utilize any job classification methodology the bureau determines appropriate for this purpose, including, but not limited to, the United States Department of Labors Standard Occupational Classification codes.
(3)This subdivision shall not prohibit the bureau from authorizing an institution to aggregate single positions held by a graduate for purposes of meeting the hours per week standards established by the bureau.
(f)Graduates unavailable for employment means graduates who, after graduation, die, become incarcerated, are called to active military duty, are international students that leave the United States or do not have a visa allowing employment in the United States, or are continuing their education at an accredited or bureau-approved postsecondary institution.
(g)Students available for graduation means the cohort population minus the number of students unavailable for graduation.
(h)Students unavailable for graduation means students who have died, been incarcerated, or called to active military duty.
SEC. 2.Section 94929 of the Education Code is amended to read:94929.(a)An institution shall annually report to the bureau, as part of the annual report, and publish in its School Performance Fact Sheet, the completion rate for each program. Except as provided in subdivision (b), the completion rate shall be calculated by dividing the number of on-time graduates by the number of students available for graduation.
(b)In lieu of calculating graduation data pursuant to subdivision (a), an institution may report graduation data reported to, and calculated by, the Integrated Postsecondary Education Data System of the United States Department of Education.
As used in this article, the following terms have the following meanings:
(a)Cohort population means the number of students that began a program on a cohort start date.
(b)Cohort start date means the first class day after the cancellation period during which a cohort of students attends class for a specific program.
(c)On-time graduates means the number of students who complete a program within 100 percent of the published program length. An institution may separately state completion information for students completing the program within 150 percent of the original contracted time, but that information may not replace completion information for students completing within the original scheduled time. Completion information shall be separately stated for each campus or branch of the institution.
(d)Graduates available for employment means the number of graduates minus the number of graduates unavailable for employment.
(e)(1)Graduates employed in the field means graduates who are gainfully employed in a single position for which the institution represents the program prepares its graduates, beginning within six months after a student completes the applicable educational program. For occupations for which the state requires passing an examination, the period of employment shall begin within six months of the announcement of the examination results for the first examination available after a student completes an applicable educational program.
(2)The bureau shall define by July 1, 2014, specific measures and standards for determining whether a student is gainfully employed in a full-time or part-time position for which the institution represents the program prepares its graduates, including self-employment or conducting freelance work, and may set the standards for the hours per week and duration of employment and utilize any job classification methodology the bureau determines appropriate for this purpose, including, but not limited to, the United States Department of Labors Standard Occupational Classification codes.
(3)This subdivision does shall not prohibit the bureau from authorizing an institution to aggregate single positions held by a graduate for purposes of meeting the hours per week standards established by the bureau.
(f)Graduates unavailable for employment means graduates who, after graduation, die, become incarcerated, are called to active military duty, are international students that leave the United States or do not have a visa allowing employment in the United States, or are continuing their education at an accredited or bureau-approved postsecondary institution.
(g)Students available for graduation means the cohort population minus the number of students unavailable for graduation.
(h)Students unavailable for graduation means students who have died, been incarcerated, or called to active military duty.
SEC. 2.Section 94929 of the Education Code is amended to read:94929.(a)An institution shall annually report to the bureau, as part of the annual report, and publish in its School Performance Fact Sheet, the completion rate for each program. Except as provided in subdivision (b), the completion rate shall be calculated by dividing the number of on-time graduates by the number of students available for graduation.
(b)In lieu of calculating graduation data pursuant to subdivision (a), an institution may report graduation data reported to, and calculated by, the Integrated Postsecondary Education Data System of the United States Department of Education.
As used in this article, the following terms have the following meanings:
(a)Cohort population means the number of students that began a program on a cohort start date.
(b)Cohort start date means the first class day after the cancellation period during which a cohort of students attends class for a specific program.
(c)Graduates On-time graduates means the number of students who complete a program within 100 percent of the published program length. An institution may separately state completion information for students completing the program within 150 percent of the original contracted time, but that information may not replace completion information for students completing within the original scheduled time. Completion information shall be separately stated for each campus or branch of the institution.
(d)Graduates available for employment means the number of graduates minus the number of graduates unavailable for employment.
(e)(1)Graduates employed in the field means graduates who are gainfully employed in a single position for which the institution represents the program prepares its graduates, beginning within six months after a student completes the applicable educational program. For occupations for which the state requires passing an examination, the period of employment shall begin within six months of the announcement of the examination results for the first examination available after a student completes an applicable educational program.
(2)The bureau shall define by July 1, 2014, specific measures and standards for determining whether a student is gainfully employed in a full-time or part-time position for which the institution represents the program prepares its graduates, including self-employment or conducting freelance work, and may set the standards for the hours per week and duration of employment and utilize any job classification methodology the bureau determines appropriate for this purpose, including, but not limited to, the United States Department of Labors Standard Occupational Classification codes.
(3)This subdivision does not prohibit the bureau from authorizing an institution to aggregate single positions held by a graduate for purposes of meeting the hours per week standards established by the bureau.
(f)Graduates unavailable for employment means graduates who, after graduation, die, become incarcerated, are called to active military duty, are international students that leave the United States or do not have a visa allowing employment in the United States, or are continuing their education at an accredited or bureau-approved postsecondary institution.
(g)Students available for graduation means the cohort population minus the number of students unavailable for graduation.
(h)Students unavailable for graduation means students who have died, been incarcerated, or called to active military duty.
SEC. 2.Section 94929 of the Education Code is amended to read:94929.(a)An institution shall annually report to the bureau, as part of the annual report, and publish in its School Performance Fact Sheet, the completion rate for each program. Except as provided in subdivision (b), the completion rate shall be calculated by dividing the number of on-time graduates by the number of students available for graduation.
(b)In lieu of calculating graduation data pursuant to subdivision (a), an institution may report graduation data reported to, and calculated by, the Integrated Postsecondary Education Data System of the United States Department of Education.
SECTION 1.Section 94874.7 of the Education Code is amended to read:94874.7.The bureau shall establish, by regulation, a process pursuant to which an institution that is exempt from this chapter may request and obtain from the bureau verification that the institution is exempt. The bureau shall establish a reasonable fee to reimburse the bureaus costs associated with the implementation of this section.
The bureau shall establish, by regulation, a process pursuant to which an institution that is exempt from this chapter may request, and obtain, from the bureau verification that the institution is exempt. The bureau shall establish a reasonable fee to reimburse the bureaus costs associated with the implementation of this section.
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Date
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Status
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|---|---|
| May 18, 2015 | Read third time. Passed. (Ayes 36. Noes 0.) Ordered to the Assembly. |
| Sep 3, 2015 | Chaptered by Secretary of State. Chapter 258, Statutes of 2015. |
| Sep 3, 2015 | Approved by the Governor. |
| Aug 26, 2015 | Enrolled and presented to the Governor at 4:30 p.m. |
| Aug 20, 2015 | Assembly amendments concurred in. (Ayes 38. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 19, 2015 | Ordered to special consent calendar. |
| Jul 16, 2015 | Read third time. Passed. (Ayes 79. Noes 0. Page 2433.) Ordered to the Senate. |
| Jul 16, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jul 16, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Jul 9, 2015 | Read second time. Ordered to consent calendar. |
| Jul 8, 2015 | From committee: Do pass. Ordered to consent calendar. (Ayes 14. Noes 0.) (July 8). |
| Jun 24, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 23). Re-referred to Com. on APPR. |
| Jun 16, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HIGHER ED. |
| May 28, 2015 | Referred to Com. on HIGHER ED. |
| Feb 25, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 18, 2015 | Read third time. Passed. (Ayes 36. Noes 0. Page 1028.) Ordered to the Assembly. |
| May 18, 2015 | In Assembly. Read first time. Held at Desk. |
| May 12, 2015 | Read second time. Ordered to consent calendar. |
| May 11, 2015 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| May 1, 2015 | Set for hearing May 11. |
| Apr 28, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 9. Noes 0. Page 793.) (April 27). Re-referred to Com. on APPR. |
| Apr 23, 2015 | Set for hearing April 27. |
| Apr 22, 2015 | From committee: Do pass and re-refer to Com. on B., P. & E.D. with recommendation: To consent calendar. (Ayes 9. Noes 0. Page 722.) (April 22). Re-referred to Com. on B., P. & E.D. |
| Apr 10, 2015 | Set for hearing April 22. |
| Apr 9, 2015 | Re-referred to Coms. on ED. and B., P. & E.D. |
| Apr 6, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 5, 2015 | Referred to Com. on RLS. |
| Feb 26, 2015 | From printer. May be acted upon on or after March 28. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Aug 20, 2015 | Special Consent #6 SB410 Beall | Senate Floor |
Passed |
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| Jul 16, 2015 | SB 410 Beall Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
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| Jul 8, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
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| Jun 23, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Higher Education |
Passed |
|
| May 18, 2015 | Consent Calendar 2nd SB410 Beall | Senate Floor |
Passed |
|
| Apr 27, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
|
| Apr 22, 2015 | Do pass, but first be re-referred to the Committee on [Business, Professions and Economic Development] with the recommendation: To Consent Calendar | Senate Standing Committee on Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
SB 410
Page 5
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 410
Amended: 6/16/15
SENATE EDUCATION COMMITTEE: 9-0, 4/22/15
AYES: Liu, Runner, Block, Hancock, Leyva, Mendoza, Monning, Pan, Vidak
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 4/27/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski
SENATE FLOOR: 36-0, 5/18/15
AYES: Allen, Anderson, Bates, Beall, Block, Cannella, De León, Fuller, Gaines, Galgiani, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Berryhill, Hall, Pavley
ASSEMBLY FLOOR: 79-0, 7/16/15 (Consent) - See last page for vote
SUBJECT: California Private Postsecondary Education Act of 2009
DIGEST: This bill defines “on-time graduates” to mean students who graduate within 100% of the program length in lieu of classifying this group as “graduates.”
Assembly Amendments are technical and include the addition of one principal co-author.
Existing law:
Establishes, until January 1, 2017, the California Private Postsecondary Education Act (Act) of 2009, which provides for the approval, regulation, and enforcement of private postsecondary educational institutions by the Bureau for Private Postsecondary Education (Bureau) within the Department of Consumer Affairs (DCA). (Education Code § 94800-94950)
Requires a regulated institution to provide a prospective student with a School Performance Fact Sheet containing information on completion rates, placement rates, license examination passage rates, salary or wage information, the most recent three-year cohort default rate and the percentage of enrolled students receiving federal student loans (if the institution participates in federal financial programs) and other specified information. The Act defines numerous terms for purposes of reporting this requirement, including adding a second definition for graduates to mean “students who complete a program within 100% of the published program length.” (EC § 94910)
Defines graduate to mean an individual who has been awarded a degree or diploma and unless the context requires otherwise this definition governs the construction of the chapter. (EC § 94810 and 94842)
This bill:
Defines “on-time graduates” to mean students who complete 100% of the published program length in lieu of classifying this group as “graduates” for the purpose of making a distinction between those who graduate on-time and all other graduates as defined in Section 94842 of the Education Code.
Requires an institution to use “on-time graduates” in lieu of “graduates,” for calculating completion rates for each program.
Makes another technical amendment.
Comments
Need for the bill. Prior legislation, AB 2296 (Block, Chapter 585, Statutes of 2012) required institutions regulated by the Bureau to expand existing disclosures requirements, including completion and job placement rates, to prospective students. The measure also added a second definition of “graduates” as those who graduate within 100% of the originally scheduled completion date. According to the author, although it is appropriate and useful to know how many students graduate within that time frame, its application to job placement, salary and licensing data skews the results because it includes only those graduates who graduated within 100% of the scheduled time period, not all graduates.
This bill seeks to address this issue by using the term "on-time graduates" to tell how many students graduated on-time during a given reporting year and “graduate” to mean an individual who has been awarded a degree or diploma to report job placement, salaries and license passage for all graduates during the given reporting year.
Relevant calculations. Current law requires an institution regulated by the Bureau to provide a prospective student with a School Performance Fact Sheet containing information on completion rates, placement rates, license examination passage rates and salary or wage information, among other things. Each rate is based on a formula outlined in statute:
Job placement rate is calculated by dividing the number of graduates employed in the field by the number of graduates available for employment for each program.
The Children Advocacy Institute and the Center for Public Interest Law explains how the job placement rate can be very different based on the existing definition:
“In a reporting year in which 200 students are scheduled to graduate from a particular program that year, 80 graduated within 100% of the time originally scheduled. During that same reporting year, however, a total of 150 graduated from that program. Eighty-five of the graduates that year obtained employment. Of those who obtained employment, 70 had graduated on time during the reporting year.”
Completion rate is calculated by dividing the number of graduates by the number of students available for graduation. Instead this bill requires an institution to use “on-time graduates” in lieu of “graduates,” for calculating completion rates for each program.
License examination passage rates for the immediately preceding two years is calculated by dividing the number of graduates who pass the exam by the number of graduates who take the licensing exam the first time after completing the education program.
Salary and wage information, consisting of the total number of graduates employed in the field and the annual wages or salaries of those graduates.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Appropriations Committee, this bill imposes minor absorbable costs to the Bureau for Private Postsecondary Education, within the Department of Consumer Affairs.
Center for Employment Training
Center for Public Interest Law
Central Valley Opportunity Center
Children’s Advocacy Institute
La Cooperative
Proteus, Inc.
Public Advocates
University of San Diego School of Law
Veterans Legal Clinic
OPPOSITION: (Verified 7/21/15)
None received
ASSEMBLY FLOOR: 79-0, 7/16/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Gordon
Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
8/13/15 13:20:44
**** END ****
Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 410
(Beall) – As Amended June 16, 2015
Policy Committee: |
Higher Education |
Vote: |
12 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill substitutes the existing term "graduates"—for purposes of private postsecondary institutions annually reporting their program completion rates on the School Performance Fact Sheet required pursuant to the Private Postsecondary Education Act (Act)—with the term "on-time graduates", meaning the number of students who complete an educational program within 100% of the published program length.
FISCAL EFFECT:
Minor absorbable costs to the Bureau for Private Postsecondary Education, within the Department of Consumer Affairs.
COMMENTS:
Background. AB 48 (Portantino)/Chapter 310, Statutes of 2009, established the Act, which in part requires non-exempt institutions to provide prospective students a Fact Sheet containing information on graduation, placement, salary and professional license examination passage rates of its students. AB 2296 (Block)/Chapter 585, Statutes of 2012, revised the Fact Sheet requirements to add information regarding student loan default rates, unaccredited programs, and to require the Bureau to refine the definition of placement to ensure that only those graduates "gainfully employed" were counted for employment rate purposes.
The Bureau is currently establishing regulations to implement the provisions of AB 2296. However, due to a drafting error in the definition of "graduates" in Education Code Section 94928, these regulations limit the scope of students included in an institutions placement rate, examination passage rate, and salary and wage data to only those students that graduated within 100% of the published program length.
Purpose. According to the proponents of AB 2296 and this bill, while it is appropriate and useful for prospective students to know how many of an institution's students complete a program within the published program length ("on-time graduates"), using that same definition of graduates for purposes of job placement, salary, and licensing data skews the results, because it does not include the outcomes for all institutional graduates.
This bill would change the definition to require institutions to publish "on-time graduates" data based on the number of students who completed a program within 100% of the published program length. The data regarding "graduates employed in the field", "license examination passage rates", and "salary and wage information" would be based on a definition of "graduate", contained in the Act under Education Code Section 94842, which includes all individuals awarded a degree or diploma.
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
SB 410
Page 2
Date of Hearing: June 23, 2015
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
SB 410
(Beall) – As Amended June 16, 2015
SENATE VOTE: 36-0
SUBJECT: California Private Postsecondary Education Act of 2009.
SUMMARY: Redefines "graduates" for purposes of private postsecondary educational institutions (institutions) calculating the employment rates of graduates. Specifically, this bill:
Defines "on-time graduates" to mean the number of students who complete an educational program within 100 percent of the published program length.
Requires "graduates employed in the field” (placement) to include all graduates who have been awarded a degree or diploma, that are gainfully employed in a single position for which the institution represents the program prepares its graduates, beginning within six months after a student completes the applicable educational program.
Requires "license examination passage rates" to be based on the number of graduates who have been awarded a degree or diploma who take and pass the required examination within specified time frames.
Requires "salary and wage information" to be based on the placement rate calculated pursuant to (2).
EXISTING LAW: provides for, until January 1, 2017, student protections and regulatory oversight of institutions in the state pursuant to the Private Postsecondary Education Act (Act). The Act is enforced by the Bureau for Private Postsecondary Education (Bureau) within the Department of Consumer Affairs (DCA). (Education Code Section 94800 et seq.)
FISCAL EFFECT: Unknown. Negligible fiscal impact, as determined by the Senate Appropriations Committee, pursuant to Senate Rule 28.8.
COMMENTS: Background. In 2009, AB 48 (Portantino), Chapter 310, established the Act, and required, among numerous other provisions, non-exempt institutions to provide prospective students a Fact Sheet containing information on graduation, placement, salary and professional license examination passage rates of its students. In 2012, AB 2296 (Block), Chapter 585, revised the Fact Sheet requirements to add information regarding student loan default rates, unaccredited programs, and to require the Bureau to refine the definition of placement to ensure that only those graduates "gainfully employed" were counted for employment rate purposes.
The Bureau is currently in the process of establishing regulations to implement the provisions of AB 2296. However, due to what Committee staff understands was an inadvertent error in the definition of "graduates" in the drafting of AB 48 and AB 2296, these regulations limit the scope of students included in an institutions placement rate, examination passage rate, and salary and wage data to only those students that graduated within 100% of the published program length.
According to the proponents of AB 2296 and this bill, while it is appropriate and useful for prospective students to know how many students complete a program within the published program length ("on-time graduates"), using that same definition of graduates for purposes of job placement, salary, and licensing data skews the results because it does not include the outcomes for all institutional graduates.
This bill would change the definition to require institutions to publish "on-time graduates" data based on the number of students who completed within 100% of the published program length. The data regarding "graduates employed in the field", "license examination passage rates", and "salary and wage information" would be based on a definition of graduate, contained in Education Code Section 94842, that includes all individuals awarded a degree or diploma.
Purpose of this bill. According to the author, this bill will address a placement rate miscalculation that is impacting vocational training programs. Vocational training programs must meet placement criteria from the Employment Development Department (EDD) to be listed on the Eligible Training Provider List (ETPL) and receive Workforce Investment Act funding. The EDD relies on the Bureau's Fact Sheet calculations for placement rates.
According to the author, the Center for Employment Training (CET) has struggled to obtain ETPL eligibility because of the Fact Sheet miscalculation. According to the author, if CET is able to count all graduating students in a reporting year, the placement rate numbers will meet the ETPL requirements. According to the author, a majority of CET students experience barriers such as poverty, English language learners, lack of access to childcare and disabilities, and therefore often take longer to graduate.
REGISTERED SUPPORT / OPPOSITION:
Support
Center for Employment Training
Children's Advocacy Institute
La Cooperativa Campensina de California
Public Advocates
Proteus, Inc.
Opposition
None on File
Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960
SB 410
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
CONSENT
Bill No: SB 410
Amended: 4/6/15
SENATE EDUCATION COMMITTEE: 9-0, 4/22/15
AYES: Liu, Runner, Block, Hancock, Leyva, Mendoza, Monning, Pan, Vidak
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 4/27/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: California Private Postsecondary Education Act of 2009
DIGEST: This bill defines “on-time graduates” to mean students who graduate within 100% of the program length in lieu of classifying this group as “graduates.”
Existing law:
Establishes, until January 1, 2017, the California Private Postsecondary Education Act (Act) of 2009, which provides for the approval, regulation, and enforcement of private postsecondary educational institutions by the Bureau for Private Postsecondary Education (Bureau) within the Department of Consumer Affairs (DCA). (Education Code § 94800-94950)
Requires a regulated institution to provide a prospective student with a School Performance Fact Sheet containing information on completion rates, placement rates, license examination passage rates, salary or wage information, the most recent three-year cohort default rate and the percentage of enrolled students receiving federal student loans (if the institution participates in federal financial programs) and other specified information. The Act defines numerous terms for purposes of reporting this requirement, including adding a second definition for graduates to mean “students who complete a program within 100% of the published program length.” (EC § 94910)
Defines graduate to mean an individual who has been awarded a degree or diploma and unless the context requires otherwise this definition governs the construction of the chapter. (EC § 94810 and 94842)
This bill:
Defines “on-time graduates” to mean students who complete 100% of the published program length in lieu of classifying this group as “graduates” for the purpose of making a distinction between those who graduate on-time and all other graduates as defined in Section 94842 of the Education Code.
Requires an institution to use “on-time graduates” in lieu of “graduates,” for calculating completion rates for each program.
Makes another technical amendment.
Comments
Need for the bill. Prior legislation, AB 2296 (Block, Chapter 585, Statutes of 2012) required institutions regulated by the Bureau to expand existing disclosures requirements, including completion and job placement rates, to prospective students. The measure also added a second definition of “graduates” as those who graduate within 100% of the originally scheduled completion date. According to the author, although it is appropriate and useful to know how many students graduate within that time frame, its application to job placement, salary and licensing data skews the results because it includes only those graduates who graduated within 100% of the scheduled time period, not all graduates.
This bill seeks to address this issue by using the term "on-time graduates" to tell how many students graduated on-time during a given reporting year and “graduate” to mean an individual who has been awarded a degree or diploma to report job placement, salaries and license passage for all graduates during the given reporting year.
Relevant calculations. Current law requires an institution regulated by the Bureau to provide a prospective student with a School Performance Fact Sheet containing information on completion rates, placement rates, license examination passage rates and salary or wage information, among other things. Each rate is based on a formula outlined in statute:
Job placement rate is calculated by dividing the number of graduates employed in the field by the number of graduates available for employment for each program.
The Children Advocacy Institute and the Center for Public Interest Law explains how the job placement rate can be very different based on the existing definition:
“In a reporting year in which 200 students are scheduled to graduate from a particular program that year, 80 graduated within 100% of the time originally scheduled. During that same reporting year, however, a total of 150 graduated from that program. Eighty-five of the graduates that year obtained employment. Of those who obtained employment, 70 had graduated on time during the reporting year.”
Completion rate is calculated by dividing the number of graduates by the number of students available for graduation. Instead this bill requires an institution to use “on-time graduates” in lieu of “graduates,” for calculating completion rates for each program.
License examination passage rates for the immediately preceding two years is calculated by dividing the number of graduates who pass the exam by the number of graduates who take the licensing exam the first time after completing the education program.
Salary and wage information, consisting of the total number of graduates employed in the field and the annual wages or salaries of those graduates.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
Center for Employment Training
Center for Public Interest Law
Children’s Advocacy Institute
La Cooperative
Proteus, Inc.
Public Advocates
University of San Diego School of Law
Veterans Legal Clinic
OPPOSITION: (Verified 5/11/15)
None received
Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
5/14/15 8:33:02
**** END ****
SB 410 (Beall) Page 9 of 9
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 410 Hearing Date: April 27, 2015
Author: |
Beall |
||
Version: |
April 6, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Sarah Mason |
||
Subject: California Private Postsecondary Education Act of 2009.
SUMMARY: Changes the definition of graduates for purposes of reporting student information as required under the California Private Postsecondary Education Act.
NOTE: This bill was referred to the Senate Committee on Education, first, and was passed out of that Committee on April 22, 2015 by a vote of 9-0.
Existing law:
Establishes the California Private Postsecondary Education Act (Act) of 2009 until January 1, 2015, and requires the Bureau of Private Postsecondary Education (Bureau) within the Department of Consumer Affairs (DCA) to, among other things, to review, investigate and approve private postsecondary institutions, programs and courses of instruction pursuant to the Act and authorizes the Bureau to take formal actions against an institution/school to ensure compliance with the Act and even seek closure of an institution/school if determined necessary. The Act also provides for specified disclosures and enrollment agreements for students, requirements for cancellations, withdrawals and refunds, and that the Bureau shall administer the Student Tuition Recovery Fund (STRF) to provide refunds to students affected by the possible closure of an institution/school. (Education Code (EC) § 94800 et seq.)
Defines “graduate” as an individual who has been awarded a degree or diploma. (EC § 94842)
Requires the Bureau to institute training to ensure that the staff are equipped to review and verify the accuracy of the data contained in consumer disclosures required by schools under the Bureau’s oversight, including, but not limited to, the School Performance Fact Sheet. (EC § 94877 (c))
Specifies requirements regarding enrollment agreements and disclosures including that a student enroll solely by executing an enrollment agreement and that prospective students be provided with a school catalog and a School Performance Fact Sheet (Fact Sheet). The Act establishes minimum requirements and disclosures to be made in these documents. (EC §§ 94902-94912)
Specifies various disclosure and reporting requirements around completion, placement, licensure and salary of students/graduates and establishes various definitions for this purpose. Requires that the information used to substantiate the reported job placement, license passage, and completion rates be documented and maintained by the institution for five years from the date of the publication of the rates and authorizes this information to be retained by the institution in an electronic format. Requires institutions to submit an annual report to the Bureau that includes specified information. (EC §§ 94928-94929.9)
For purposes of calculating completion, placement, licensure, and salary disclosure requirements, defines “Graduates” as the number of students who complete a program within 100 percent of the published program length. An institution may separately state completion information for students completing the program within 150 percent of the original contracted time, but that information may not replace completion information for students completing within the original scheduled time. Completion information shall be separately stated for each campus or branch of the institution. (EC § 94928 (c))
For purposes of calculating completion, placement, licensure, and salary disclosure requirements, defines “Graduates employed in the field” as graduates who are gainfully employed in a single position for which the institution represents the program prepares its graduates within six months after a student completes the applicable educational program. For occupations for which the state requires passing an examination, the period of employment shall begin within six months of the announcement of the examination results for the first examination available after a student completes an applicable educational program. (EC § 94928 (e)(1))
Requires an institution to annually report to the Bureau, as part of the annual report, and publish in its Fact Sheet, the completion rate for each program. Authorizes an institution to report graduation data reported to, and calculated by, the Integrated Postsecondary Education Data System of the United States Department of Education in lieu of calculating the completion rate. Also requires reporting of an institution’s job placement rate, license examination passage rates for the immediately preceding two years for programs leading to employment for which passage of a state licensing examination is required, salary and wage information, if applicable, the most recent official three-year cohort default rate reported by the United States Department of Education for the institution and the percentage of enrolled students receiving federal student loans. States that the Bureau is not limited from being authorized to collect information from an institution to ensure that the information is useful to students, useful to policymakers, based upon the most credible and verifiable data available and that does not impose undue compliance burdens on an institution. (EC §§ 94929 and 94929.5)
Requires information used to substantiate the rates and information calculated above to be documented and maintained by the institution for five years from the date of the publication of the rates and information and be retained in an electronic format and made available to the bureau upon request. (EC § 94929.7)
Requires the Bureau to consider the graduate salary and other outcome data and reporting requirements that are utilized by the United States Department of Education, the Student Aid Commission, accrediting agencies, and student advocate associations. Requires the Bureau to consider the reporting requirements of public postsecondary institutions in California to evaluate the feasibility of adopting these reporting requirements for private postsecondary institutions and to make recommendations to the Legislature, on or before December 31, 2016, on how reporting requirements under this Act should be altered to ensure accurate, useful, and consistent reporting by private postsecondary institutions to the Bureau and students. (EC § 94929.9)
This
bill:
Replaces “Graduates” with “On-time graduates” in the definition above for the number of students who complete a program within 100 percent of the published program length in lieu of classifying this group as “graduates” for the purpose of making a distinction between those who graduate on-time and all other graduates as defined in EC § 94842 in #2 above.
Requires an institution to use “on-time graduates” for calculating completion rates for each program.
Makes one technical change.
FISCAL EFFECT: Unknown. This bill is keyed “fiscal” by Legislative Counsel.
COMMENTS:
Purpose. This bill is sponsored by the Center for Employment Training (CET) and Children’s Advocacy Institute. According to the Author, this bill aims to capture the total number of students who graduated in a reporting year, for purposes of reporting to the Bureau. The Author states that currently there is a distinction between disclosure requirements and placement rate calculation and this bill is addressing a placement rate miscalculation that is impacting vocational training programs. According to the Author, this change will not interfere with disclosure requirements.
The Author notes that “besides meeting disclosure requirements, vocational training programs also must meet certain criteria from the Employment Development Department (EDD) to be listed on the Eligible Training Provider List (ETPL).” The Center for Employment Training (CET) in the Author’s district has been struggling in obtaining EDD referrals because of the calculation. According to the Author, if CET is able to count all their graduating students in a reporting year, their placement rate numbers will be accurately calculated. The Author notes that currently, only students that graduate in the 100% program length are accounted for, but not those that graduate past the 100% which includes students who need more time in their coursework. According to the Author, the majority of these students who are not captured experience barriers such as poverty, limited English proficiency, a lack of access to childcare and disabilities which mean they then graduate at a much later pace. According to the Author, vocational training programs that are eligible to be listed for referral on the ETPL are able to receive funds through the federal Workforce Investment Act. The Author states that these WIA funds are used to pay for tuition, coursework materials, instructors and improvement of facilities, among other items. According to the Author, CET has been losing out on between two and three hundred thousand dollars in federal funding as a result of not being able to meet the EDD requirements.
Background.
The California Private Postsecondary Education Act and Bureau for Private Postsecondary Education. After numerous legislative attempts to remedy the laws and structure governing regulation of private postsecondary institutions in California, AB 48 (Portantino, Chapter 310, Statutes of 2009), established the Act and created the Bureau within DCA for the purpose of regulating private postsecondary educational institutions that provide educational services in California. The Act made many substantive changes that both created a new, solid foundation for oversight and responded to the major problems with the Former Act. The Act requires all unaccredited colleges in California to be approved by the Bureau, sets timelines by which unaccredited schools offering degrees shall become accredited, and requires all nationally accredited colleges to comply with numerous student protections. It is important to note that not all private institutions are covered by the provisions of the Act; full and partial exemptions are provided for low-cost programs, recreational schools, schools accredited by regional accrediting agencies, among other types of institutions. The Act establishes prohibitions on false advertising and inappropriate recruiting and requires disclosure of critical information to students such as program outlines, graduation and job placement rates, and license examination information, and ensures colleges justify those figures. The Act also guarantees students can complete their educational objectives if their institution closes its doors while providing BPPE with enforcement powers necessary to protect consumers. The Act directs BPPE to:
Create a structure that provides an appropriate level of oversight, including approval of private postsecondary educational institutions and programs;
Establish minimum operating standards for California private postsecondary educational institutions to ensure quality education for students;
Provide students a meaningful opportunity to have their complaints resolved;
Ensure that private postsecondary educational institutions offer accurate information to prospective students on school and student performance, thereby promoting competition between institutions that rewards educational quality and employment success; and,
Ensure that all stakeholders have a voice and are heard in the operations and rulemaking process of BPPE.
The Bureau is required to actively investigate and combat unlicensed activity, administer the STRF, and conduct outreach and education activities for private postsecondary educational institutions and students within the state. The Act establishes processes for penalties for non-compliance, providing the Bureau authority to perform site visits and investigations, order fines and student tuition refunds, and ultimately suspend or revoke an institution's approval to operate.
Disclosures. As noted above, the Act requires a number of disclosures aimed at providing students with the information and tools to make an informed decision about their education. Job placement numbers, license exam passage rates, salary information and cohort default rates are some of the items institutions are required to provide to students as they evaluate whether or not to attend a particular school. (CDR is the percentage of a school's borrowers who enter repayment on federal loans during a particular fiscal year and default or meet other specified conditions prior to the end of the next fiscal year and provided to USDE in draft form, offering schools two appeals before the information becomes “official”.) The Act also requires a series of disclosures about unaccredited programs offering degrees, such as whether the degree is issued in a field that requires licensure in California, whether or not a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states, information acknowledging that a degree from an unaccredited institution is not recognized for some employment positions and a statement that students attending an unaccredited institution are ineligible for federal financial aid programs.
The Act also specifies requirements regarding enrollment agreements and requirements that students be provided a school catalog and a School Performance Fact Sheet (Fact Sheet), including minimum requirements and disclosures required in these documents such as information about program completion, placement, licensure and salary of students/graduates. The Act outlines formulas for calculating rates reported on the Fact Sheet, including a job placement rate (calculated by dividing the number of graduates employed in the field by the number of graduates available for employment in each program), completion rate (calculated by dividing the number of graduates by the number of students available for graduation, the very rate this bill seeks to change by requiring an institution to use “on-time” graduates rather than “graduates”), license examination passage rate (calculated for the immediately preceding two years by dividing the number of graduates who pass an exam by the number of graduates who take an licensing exam the first time after completing an educational program and salary and wage information (consisting of the total number of graduates employed in the field and the annual wages or salaries of those graduates).
Under the Act, institutions are also required to submit the most recent three-year cohort default rate reported by the United States Department of Education for the institution and the percentage of enrolled students receiving federal student loans. The Bureau is also authorized to ensure that information is useful to students, useful to policymakers, based on the most credible and verifiable data available but also does not impose undue compliance burdens on an institution.
Workforce Innovation and Opportunity Act (WIOA). The federal Workforce Innovation and Opportunity Act (WIOA), formerly known as the federal Workforce Investment Act (WIA) of 1998, provides for workforce investment activities, including activities in which states may participate and also contains various programs for job and employment investment, including work incentive programs, as specified. WIOA was signed into law in 2014 and generally takes effect July of this year. WIOA supersedes WIA and also authorizes the Job Corps, YouthBuild, Indian and Native Americans, and Migrant Seasonal Farmworker programs, in addition to the core programs. The new federal WIOA aims to modernize our workforce development system bringing together and enhancing several key employment, education, and training programs. WIOA also seeks to make the workforce system more comprehensive in its approach to service delivery and more responsive to the demands of our economy.
Following passage of the federal WIA in 1998, the state established the California Workforce Investment Board (CWIB) and charged the board with the responsibility of developing a unified, strategic planning process to coordinate various education, training, and employment programs into an integrated workforce development system that supports economic development. Local chief elected officials in a local workforce development area were required to form, pursuant to specified guidelines, a Local Workforce Investment Board (Local WIB) to plan and oversee the workforce investment system at the local level. Under WIA, funds were distributed to the states based on formulas that consider unemployment rates and other economic and demographic factors. WIA required that 85 percent of federal funds go to the Local WIBs, with the remainder allocated for state discretionary purposes. Local WIBs created one or more One-Stop Centers in the local workforce area, which provide access to career information, counseling, funding for education, training and supportive services. Job training programs include classroom training, customized training, and on-the-job training (also known as incumbent worker training). Training funds are often distributed through vouchers to job seekers to enroll in eligible training programs. Local WIBs determine which training programs are eligible to receive the vouchers.
California’s ETPL was established in compliance with WIA for the purpose of providing customer-focused employment training for adults and dislocated workers. Training providers who are eligible to receive Individual Training Accounts (ITAs) through WIA Title I-B funds are listed on the ETPL. EDD is responsible for accepting information on training providers from local boards, compiling a single statewide list of eligible training providers and disseminating the statewide ETPL to local boards for distribution to their One-Stop Career Centers. Programs are required to be periodically determined as eligible to continue on the ETPL. This determination is to be made within 18 to 24 months of their initial listing and annually thereafter.
EDD's policy and procedure document on the ETPL provides additional background and sets out requirements for approval that includes, among other things, the following:
In order to be listed on the ETPL, training providers must submit an application to the local board in any Local Workforce Investment Area in which the training provider desires to offer programs and services.
It is important to note that initial eligibility is determined based on criteria that relates to a provider/program’s approval authority and/or authorization to operate. Performance is not considered in making initial eligibility determinations. Providers are encouraged to submit information on performance outcomes to facilitate customer choice but this is not a requirement and the information provided cannot be used to determine their initial eligibility for listing.
Local boards are responsible for reviewing and verifying applications submitted by training providers, determining if the applicant meets the State’s criteria for initial eligibility and forwarding the information to EDD for those training providers and programs that meet the criteria.
EDD will accept applications for the ETPL from local boards on any working day of the year. Approved applications will appear on the list within 30 days of their submission by the local board to the State. The local boards are responsible for submitting changes to EDD for programs or training providers already listed on the statewide ETPL to ensure that the information remains current.
Related Legislation This Year. SB 634 (Block) authorizes DCA to enter into a regional state authorization reciprocity agreement with other states through a compact on behalf of this state. The compact would provide that an entity regulated in one member state would be able to provide distance education in other member states. The bill would require the Bureau, before entering into a compact, to establish a process to ensure that certain educational institutions that are exempt from the Act may participate in the state authorization reciprocity agreement without impacting their exempt status. The bill would require the Bureau to enter into a memorandum of understanding with certain educational officials for the purpose of establishing and implementing the state authorization reciprocity agreement, as specified. The bill would authorize the Bureau to establish a reasonable fee to be paid to the Department of Consumer Affairs by a participating postsecondary institution, as specified. (Status: The bill is currently pending in the Senate Committee on Education.)
AB 752 (Salas) requires, if the Bureau publishes a list of relevant occupational ability-to-benefit examinations and passing scores, the list shall include the Comprehensive Adult Student Assessment System examination. (Status: The bill is currently pending in the Assembly Committee on Higher Education.)
AB 509 (Perea) exempts from the Act and related oversight by the Bureau a bona fide organization, association, or council that offers pre-apprenticeship training programs, on behalf of one or more Division of Apprenticeship Standards approved apprenticeship programs. (Status: The bill is currently pending in the Assembly Committee on Higher Education.)
Prior Related Legislation. SB 1247 (Lieu, Chapter 840, Statutes of 2014) extended the operation of the Bureau until January 1, 2017; and, provided statutory changes to the protections provided to students and the requirements placed on private postsecondary educational institutions under the Act.
AB 2296 (Block, Chapter 585, Statutes of 2012) expanded the disclosure requirements for institutions under the Bureau related to unaccredited programs; expanded disclosure requirements for all regulated institutions; established more stringent criteria for determining gainful employment and calculating job placement rates; and increased institutional documentation and reporting requirements around completion rates, job placement/license exam passage rates, and salary/wage information for graduates.
AB 611 (Gordon, Chapter 103, Statutes of 2011) set forth certain disclosure requirements pertaining to accreditation status, licensure, and related limitations for unaccredited doctoral programs.
AB 1889 (Portantino) of 2010 contained provisions regarding doctoral degrees offered by unaccredited institutions, the calculation of placement rates, and Bureau employment requirements. (Status: The bill was vetoed by the Governor due to concerns over Bureau employment requirements.)
AB 2393 (Ammiano) of 2010 would have altered the definition of “graduates employed in the field” for apprenticeship and nursing programs. (Status: The bill was vetoed by the Governor, who indicated that it put the state on the same path to overly confusing statutes and guidelines that existed prior to the new Act.)
Arguments in Support. Supporters like the Center for Employment Training (CET) (Co-Sponsor), Central Valley Opportunity Center, Inc., La Cooperativa, and Proteus, Inc., recognize barriers faced by students in “hard to serve populations” in being able to graduate within 100% of the scheduled training time. The organizations note that these individuals face challenges like “limited English language, disabilities, legal issues, lack of resources for child care, transportation, housing, medical and others.” They believe that under this bill, these “special population students would not be excluded from the count of graduates during a reporting period” and training programs would continue their open door policies of providing quality training to hard-to-serve populations in low income communities.
The Children’s Advocacy Institute, Center for Public Interest Law and Veterans Legal Clinic at the University of California San Diego Law School (Co-Sponsors) note that the current definition of graduate as one who graduates within 100% of the originally scheduled completion time of a program, when applied for job placement, salary and licensing data, skews the results because it only includes those graduates who graduated within 100% of the scheduled time period, not all graduates. According to these organizations, the simple change proposed in this bill corrects this issue by using the term “on-time” graduates to tell how many graduated on time during a given reporting year but “graduates” to report job placement, salaries and license passage for all graduates during the given reporting year.
According to Public Advocates, current law does not give a full and complete picture of the success of for-profit and other private institutions. Public Advocates notes that application of the current definition results in misleading job placement rates, salary and licensing data, as well as less accurate and confusing information for students.
SUPPORT AND OPPOSITION:
Support:
Center for Employment Training (CET) (Co-Sponsor)
Central Valley Opportunity Center, Inc.
Center for Public Interest Law (Co-Sponsor)
Children’s Advocacy Institute (Co-Sponsor)
La Cooperativa
Proteus, Inc.
Public Advocates
Veterans Legal Clinic at the University of San Diego School of Law (Co-Sponsor)
Opposition:
None on file as of April 22, 2015.
-- END --
SB 410 (Beall) Page 3 of 3
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: SB 410
Author: |
Beall |
||
Version: |
April 6, 2015 Hearing Date: April 22, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Olgalilia Ramirez |
||
NOTE: This bill has been referred to the Committees on Education and Business, ……….. Professions, and Economic Development. A “do pass” motion should include ……….. referral to the Business, Professions, and Economic Development Committee.
Subject: California Private Postsecondary Education Act of 2009
SUMMARY
This bill defines “on-time graduates” to mean students who graduate within 100% of the program length in lieu of classifying this group as “graduates.”
BACKGROUND
Existing law, until January 1, 2017, establishes the California Private Postsecondary Education Act (Act) of 2009, which provides for the approval, regulation, and enforcement of private postsecondary educational institutions by the Bureau for Private Postsecondary Education (Bureau) within the Department of Consumer Affairs (DCA). (Education Code § 94800-94950)
Existing law requires a regulated institution to provide a prospective student with a School Performance Fact Sheet containing information on completion rates, placement rates, license examination passage rates, salary or wage information, the most recent three-year cohort default rate and the percentage of enrolled students receiving federal student loans (if the institution participates in federal financial programs) and other specified information. The act defines numerous terms for purposes of reporting this requirement, including adding a second definition for graduates to mean “students who complete a program within 100% of the published program length.” (EC § 94910)
Exiting law also defines graduate to mean an individual who has been awarded a degree or diploma and unless the context requires otherwise this definition governs the construction of the chapter. (EC § 94810 and 94842)
ANALYSIS
This bill:
Defines “on-time graduates” to mean students who complete 100% of the published program length in lieu of classifying this group as “graduates” for the purpose of making a distinction between those who graduate on-time and all other graduates as defined in section 94842 of the Education Code.
Requires an institution to use “on-time graduates” in lieu of “graduates,” for calculating completion rates for each program.
Makes another technical amendment.
STAFF
COMMENTS
Need for the bill. Prior legislation, AB 2296 (Block, CH. 585, 2012) required institutions regulated by the Bureau to expand existing disclosures requirements, including completion and job placement rates, to prospective students. The measure also added a second definition of “graduates” as those who graduate within 100% of the originally scheduled completion date. According to the author, although it is appropriate and useful to know how many students graduate within that time frame, its application to job placement, salary and licensing data skews the results because it includes only those graduates who graduated within 100% of the scheduled time period, not all graduates.
This bill seeks to address this issue by using the term "on-time graduates" to tell how many students graduated on-time during a given reporting year and “graduate” to mean an individual who has been awarded a degree or diploma to report job placement, salaries and license passage for all graduates during the given reporting year.
Relevant calculations. Current law requires an institution regulated by the Bureau for Private Postsecondary Education (Bureau) to provide a prospective student with a School Performance Fact Sheet containing information on completion rates, placement rates, license examination passage rates and salary or wage information, among other things. Each rate is based on a formula outlined in statute:
Job placement rate is calculated by dividing the number of graduates employed in the field by the number of graduates available for employment for each program.
The Children Advocacy Institute and the Center for Public Interest Law explains how the job placement rate can be very different based on the existing definition:
“In a reporting year in which 200 students are scheduled to graduate from a particular program that year, 80 graduated within 100% of the time originally scheduled. During that same reporting year, however, a total of 150 graduated from that program. Eighty-five of the graduates that year obtained employment. Of those who obtained employment, 70 had graduated on time during the reporting year.”
Completion rate is calculated by dividing the number of graduates by the number of students available for graduation. Instead this bill requires an institution to use “on-time graduates” in lieu of “graduates,” for calculating completion rates for each program.
License examination passage rates for the immediately preceding two years is calculated by dividing the number of graduates who pass the exam by the number of graduates who take the licensing exam the first time after completing the education program.
Salary and Wage information, consisting of the total number of graduates employed in the field and the annual wages or salaries of those graduates.
Related and prior legislation.
AB 2296 (Block, CH 585, 2012) required institutions regulated by the Bureau for Private Postsecondary Education (Bureau) to provide additional disclosures to prospective students by among other things; establishing more stringent criteria for determining gainful employment and calculating job placement rates; and increasing institutional documentation and reporting requirements around completion rates, job placement/license exam passage rates for graduates. AB 2296 defined graduates to mean those who graduated with 100% of a program length.
SUPPORT
Center for Employment Training
Center for Public Interest Law
Children’s Advocacy Institute
La Cooperative
Proteus, Inc.
Public Advocates
University of San Diego School of Law
Veterans Legal Clinic
OPPOSITION
None received.
-- END --
Bill Author
Bill Co-Author(s):
