CAPPS Legislative Update – Senate Bills

SB 1192 (Hill D) Private postsecondary education: California Private Postsecondary Education Act of 2009.
Status: 9/24/2016-Chaptered by Secretary of State - Chapter 593, Statutes of 2016.
See SB 1192
Location: 9/24/2016-S. CHAPTERED
Summary: The California Private Postsecondary Education Act of 2009, provides, among other things,
Page 3/5 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 exempts an institution from its provisions if any of a list of specific criteria are met. This bill would recast and revise various provisions of the act. The bill would increase the amount of a fine that may be issued to a person for operating an institution without proper approval to operate from $50,000 to $100,000.

SB 1059 (Monning D) Postsecondary education: Title 38 awards.
Status: 9/21/2016-Chaptered by Secretary of State - Chapter 428, Statutes of 2016.
See SB 1059
Location: 9/21/2016-S. CHAPTERED
Summary: Current law requires an institution headquartered or operating in California desiring to enroll students eligible for federal Title 38 awards in accredited courses to make application for
approval of these courses to the California State Approving Agency for Veterans Education, commonly known as CSAAVE, and authorizes CSAAVE to approve the application of the school when the school and its accredited courses satisfy the specified criteria and any additional reasonable criteria established by CSAAVE. This bill would include as a qualifying institution for federal Title 38
awards, an institution that has been accredited by the Committee of Bar Examiners, if the institution complies with specified disclosure and compliance requirements.

SB 1281 (Block D) Law schools: unaccredited law school disclosures.
Status: 7/22/2016-Chaptered by Secretary of State - Chapter 87, Statutes of 2016.
See SB 1281
Location: 7/22/2016-S. CHAPTERED
Summary: Would require a law school that is not accredited by the American Bar Association (ABA) to publicly disclose on its Internet Web site, specified information, including tuition costs, class
sizes, number of faculty, bar passage data, and employment outcomes for graduates. The bill would define terms for these purposes. The bill would also authorize the State Bar to develop a standard information reporting template. The bill would require specific disclosure information be distributed by the school to all applicants being offered conditional scholarships at the time the
scholarship offer is extended.

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CAPPS Legislative Update – Assembly Bills

AB 509, Perea. California Private Postsecondary Education Act of 2009: exemptions.
Status: 10/7/2015 - Chaptered by Secretary of State - Chapter 558, Statutes of 2015
See AB 509
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 exempts an institution from its provisions, if any of a list of specific criteria are met.
This bill would exempt from the provisions of the act a bona fide organization, association, or council that offers preapprenticeship training programs on behalf of one or more labor-management apprenticeship programs that are approved by the Division of Apprenticeship Standards if the organization, association, or council satisfies specified requirements.

AB 573, Medina. Higher education: campus closures: Corinthian Colleges.
Status: 10/8/2015 Vetoed by the Governor
See AB 573
(1) The California Private Postsecondary Education Act of 2009 provides for the regulation of private postsecondary educational institutions by the Bureau for Private Postsecondary Education in the Department of Consumer Affairs. The act also establishes the Student Tuition Recovery Fund and requires the bureau to adopt regulations governing the administration and maintenance of the fund, including requirements relating to assessments on students and student claims against the fund, and establishes that the moneys in this fund are continuously appropriated to the bureau for specified purposes. The act caps the amount that may be in the fund at any time at $25,000,000.
This bill would raise the cap for the fund to $30,000,000.

AB 721, Medina. Student financial aid: private student loans.
Status: 10/8/2015 - Chaptered by Secretary of State - Chapter 632, Statutes of 2015
See AB 721
Existing law requires a public, private, or independent postsecondary educational institution, except the California Community Colleges, to make specified disclosures related to private student loans in financial aid material and private loan applications provided or made available by the institution, to distinguish private loans from federal loans in individual financial aid awards, and, if the institution provides a private loan lender list, to provide general information about the loans available through the lender and disclose the basis for each lender's inclusion on the list.
This bill would require the public, private, or independent institution, except the California Community Colleges, to make available to the public upon request and in a prominent location on its Internet Web site within 12 months of a completed academic year, as defined, specified student loan debt statistics on graduates. The bill would require all public, private, and independent postsecondary institutions to provide students information concerning unused state and federal financial assistance including unused federal student loan moneys available to them before certifying their eligibility for private student loans and, if the institution does not participate in federal student loan programs, to inform students that they may be eligible for federal student loans at participating institutions and provide them information regarding Cal Grants and federal student aid. The bill would make nonsubstantive and conforming changes.

AB 968, Williams. Postsecondary education: transcripts.
Status: 10/9/2015 Vetoed by the Governor
See AB 968
Under existing law, the Donahoe Higher Education Act, the segments of postsecondary education in this state include the University of California, the California State University, the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions. A provision of the act applies to the University of California only to the extent that the Regents of the University of California, by appropriate resolution, act to make the provision applicable.
This bill would amend the act to require the governing board of each community college district, the Trustees of the California State University, the Regents of the University of California, the governing body of each independent institution of higher education, and the governing body of each private postsecondary educational institution to indicate on a student's transcript when the student is ineligible to reenroll due to suspension or expulsion for the period of time the student is ineligible to reenroll. For community college districts only, the bill would delay the implementation of this requirement until July 1, 2016. The bill would find and declare that the disclosure of student suspensions and expulsions on student transcripts ensures the integrity and transparency of student transcripts and the safety and security of California campuses. By requiring community college districts to provide for the notation of transcripts, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

AB 1165, as introduced, Ridley-Thomas. Vocational nursing: secondary and post-secondary education.
Status: 1/15/2016 - Failed Deadline pursuant to Rule 61(b)(1). Last location was 2 Year of 5/1/2015.
See AB 1165
Existing law, the Vocational Nursing Practice Act, establishes the Board of Vocational Nursing and Psychiatric Technicians and sets forth the qualification requirements and duties of members of the board. These duties include, protection of the public, the evaluation of applicants for licensing as a vocational nurse, and the issuing of licenses to practice as a vocational nurse. Existing law requires the board to prepare and maintain a list of approved schools of vocational nursing in the state.
This bill would state that the board has the sole responsibility to assess and recommend approval for schools of vocational nursing and psychiatric technician education programs in the state. The bill would require the board to enter into a memorandum of understanding with the Bureau for Private Postsecondary Education to delineate the powers of the board to review and approve schools of vocational nursing and psychiatric technicians and the powers of the bureau to protect the interest of students attending institutions governed by the California Private Postsecondary Education Act of 2009. The bill would subject all approved schools of vocational nursing to specified fees for deposit into the Vocational Nursing and Psychiatric Technicians Fund. The bill would specify that only a nursing school approved by the board may accept applications to its vocational nursing and psychiatric technician program and would make is unlawful for anyone to conduct a school of vocational nursing and psychiatric technicians unless the school has been approved by the board. The bill would also deem it "unprofessional conduct" for a registered nurse, vocational nurse, or psychiatric technician to violate or attempt to violate, either directly or indirectly, or to assist or abet the violation of these provisions.

AB 1835, Holden. California Private Postsecondary Education Act of 2009: minimum operating standards: exemptions.
Status: 9/28/2016 - Vetoed by the Governor
See AB 1835
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, among other things, requires the bureau to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The act is to be repealed by its own provisions on January 1, 2017.
This bill would, until January 1, 2021, exempt institutions that grant doctoral degrees in psychoanalysis from the provisions of the act requiring the imposition of the accreditation requirements if, and as long as, these institutions satisfy specified conditions, including a requirement that all of the institution's students hold master's or doctoral degrees before enrollment in the institution, and a requirement that the institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2018.

AB 1916 (Irwin D) Private postsecondary education: school closure bonds.
Status: 5/27/2016-Failed Deadline pursuant to Joint Rule 61(b)(8). (Last location was APPR. on 4/19/2016)
See AB 1916
Location: 5/27/2016-A. DEAD
Summary: The California Private Postsecondary Education Act establishes the Student Tuition Recovery Fund and requires the bureau to adopt regulations governing the administration and
maintenance of the fund, including requirements relating to assessments on students and student claims against the fund, and establishes that the moneys in this fund are continuously appropriated to the bureau for specified purposes. This bill would require a private postsecondary institution, as defined, to file a surety bond before January 1, 2019, with the Department of Consumer Affairs in the amount equal to a reasonable estimate of the maximum amount of tuition and fees imposed on students of the institution for a period of attendance of greatest expense during the applicable academic year.

AB 1996 (Gordon D) Private postsecondary education: exemptions.
Status: 9/28/2016-Vetoed by the Governor
See AB 1996
Location: 9/28/2016-A. VETOED
Summary: Would exempt, until January 1, 2022, an institution from the California Private Postsecondary Education Act of 2009 if it maintains its status as a nonprofit institution that is accredited by the Accrediting Commission for Schools, Western Association of Schools and Colleges, has operated continuously in California for at least 50 years as a nonprofit entity, as specified, does not award degrees or diplomas, is paid from state or federal student financial aid programs for fewer than 20% of its students who receive vocational training, and previously had an exemption
from the bureau and did not utilize a specified pathway under the act.

AB 2251 (Stone, Mark D) Student loan servicers: licensing and regulation: Student Loan Servicing Act.
Status: 9/29/2016-Chaptered by Secretary of State - Chapter 824, Statutes of 2016.
See AB 2251
Location: 9/29/2016-A. CHAPTERED
Summary: Would enact the Student Loan Servicing Act providing for the licensure, regulation, and oversight of student loan servicers by the Commissioner of Business Oversight and would define terms for its purposes. The bill would prohibit a person from engaging in the business of servicing a student loan in this state, directly or indirectly, without a license, unless exempt from the licensing requirement, and would require a licensee to provide specific services to a student loan borrower and comply with reporting, auditing, and other oversight by the commissioner.

AB 2581 (Medina D) Higher education: campus closures: Corinthian Colleges, Inc.
Status: 8/31/2016-Failed Deadline pursuant to Joint Rule 61(b)(17). (Last location was B., P. & E.D. on 6/9/2016)
See AB 2581
Location: 8/31/2016-S. DEAD
Summary: Would appropriate the sum of $1,300,000 from the Student Tuition Recovery Fund to the Attorney General for the purposes of providing grants to eligible nonprofit community service organizations to assist eligible students affected by the closure of Corinthian Colleges, Inc., as defined, with loan discharge and other student loan-related requests and tuition recovery-related claims, and to pay an amount not to exceed $150,000 for the reasonable administrative costs of the Attorney General's office related to these grants, as specified.

AB 2652 (Eggman D) California Private Postsecondary Education Act of 2009: applicability.
Status: 7/1/2016-Failed Deadline pursuant to Joint Rule 61(b)(13). (Last location was B., P. & E.D. on 6/9/2016)
See AB 2652
Location: 7/1/2016-S. DEAD
Summary: 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. This bill would, to the extent authorized by federal law, require a private
entity with no physical presence in California, that would be subject to the requirements of this act if the entity was located in this state, to register with the bureau and participate in the
act's Student Tuition Recovery Fund for its California students.

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