California Assembly Bill AB330 Amended / Bill

 BILL NUMBER: AB 330AMENDED BILL TEXT AMENDED IN ASSEMBLY JANUARY 9, 2014 INTRODUCED BY Assembly Member Chau FEBRUARY 13, 2013 An act to amend Sections 69433.2  and 94910   , 94910, and 94929.5  of the Education Code, relating to student financial aid. LEGISLATIVE COUNSEL'S DIGEST AB 330, as amended, Chau. Student financial aid: disclosures.  Existing   (1)     Existing  law establishes the Cal Grant Program under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under the program for participating students attending qualifying institutions. As a condition for participation in the program, existing law requires each Cal Grant participating institution to annually report specified information to the commission, which the commission is required to provide on its Internet Web site in a searchable database. This bill would include  the institution's net price calculator   license examination passage rates, the institution's latest 3-year cohort default rate, the institution's percentage of undergraduate student borrowers,  and  the average   certain other  student loan debt  of   information concerning  graduates of the institution in the information that a participating institution is required to report and the commission is required to provide on its Internet Web site.  The bill would also require the commission to include a glossary explaining the meanings of various financial aid terms on its Internet Web site.   Existing   (2)     Existing  law, the California Private Postsecondary Education Act of 2009,  which is repealed pursuant to its own provisions on January 1, 2015,  provides, among other things, for student protections and regulatory oversight of private postsecondary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 exempts specified institutions from all, or a portion of, its provisions. The act requires an institution to provide a prospective student prior to enrollment with a School Performance Fact Sheet, which is required to contain specified information relating to the educational program. This bill would require the School Performance Fact Sheet to also include  the institution's net price calculator and the average   certain  student loan debt  of   information concerning  graduates of the institution  if the institution receives specified federal funding   who have entered into student loans,   as specified, while attending the institution  .  These provisions concerning the School Performance Fact Sheet would become operative only if an act that becomes operative on or before January 1, 2015, delays or eliminates the January 1, 2015, repeal date of the California Private Postsecondary Education Act of 2009.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69433.2 of the Education Code is amended to read: 69433.2. (a) As a condition for its voluntary participation in the Cal Grant Program, each Cal Grant participating institution shall  , beginning in 2012,  annually report to the commission, and as further specified in the institutional participation agreement, all of the following for its undergraduate programs: (1) Enrollment, persistence, and graduation data for all students, including aggregate information on Cal Grant recipients. (2) The job placement rate and salary and wage information for each program that is either designed or advertised to lead to a particular type of job or advertised or promoted with a claim regarding job placement.  (3) The institution's net price calculator required pursuant to Section 1015a(h)(3) of Title 20 of the United States Code.   (3) License examination passage rates, as required pursuant to subparagraph (A) of paragraph (2) of subdivision (l) of Section 69432.7.   (4) The institution's latest three-year cohort default rate, as required pursuant to subparagraph (A) of paragraph (3) of subdivision (l) of Section 69432.7.   (5) The institution's percentage of undergraduate student borrowers as reported pursuant to subparagraph (H) of paragraph (3) of subdivision (l) of Section 69432.7.   (4) The average student   (6)     (A)     Student  loan debt  of   information concerning  graduates of the institution  , as calculated pursuant to subdivision (c)  .  (B) The University of California and the California State University may comply with this paragraph by including student loan debt information, as calculated pursuant to subdivision (c), in their respective annual financial aid reports, as completed pursuant to Section 66021.1, and providing a copy of the report to the commission.  (b) Commencing the year after the commission begins to receive reports pursuant to subdivision (a), the commission shall provide  all   both of the following on its Internet Web site: (1) The information submitted by a Cal Grant participating institution pursuant to subdivision (a), which shall be made available in a searchable database.  (2) A glossary explaining the meanings of various financial aid terms, including, but not limited to, all of the following:   (A) Private student loan.   (B) Federal direct loan.   (C) Grant.   (D) Scholarship.   (3)   (2)  Other information and links that are useful to students and parents who are in the process of selecting a college or university. This information may include, but not be limited to, local occupational profiles available through the Employment Development Department's Labor Market Information Data Library.  (c) Student loan debt information concerning graduates of a Cal Grant participating institution shall be calculated and reported as follows:   (1) The institution shall calculate the number of students who started as first-time postsecondary students at the institution, and who received a certificate, associate's degree, or bachelor's degree during that academic year.   (2) (A) The institution shall calculate the number and percentage of the students identified pursuant to paragraph (1) who borrowed at any time while enrolled at the institution through any student loan program, including, but not necessarily limited to, institutional loans, state loans, federal Perkins loans, federal Stafford subsidized and unsubsidized loans, and private loans that were certified by the institution, including both federal direct student loans and federal family education loans.   (B) The institution shall calculate the total principal borrowed in those loans described in subparagraph (A).   (3) (A) The institution shall calculate the number and percentage of the students identified pursuant to paragraph (1) who borrowed at any time while enrolled at the institution through a federal student loan program, including, but not necessarily limited to, federal Perkins loans, federal Stafford subsidized and unsubsidized loans, federal direct student loans, and federal family education loans, but excluding institutional loans, state loans, and private loans.   (B) The institution shall calculate the total principal borrowed in those loans described in subparagraph (A).   (4) The institution shall report both of the following to the commission:   (A) The percentages calculated pursuant to paragraphs (2) and (3).   (B) The average certificate- or degree-seeking student cumulative principal borrowed by those students counted pursuant to paragraphs (2) and (3), calculated by dividing the sum identified in subparagraph (B) of each of those paragraphs by the number of students receiving the loans described in the respective paragraphs. The institution shall report average loan debt information for certificate, associate's degree, and bachelor's degree programs separately.   (5) For purposes of this subdivision, "loans" shall include cosigned loans that financed a student's own enrollment or attendance, but shall not include parental loans.  SEC. 2. Section 94910 of the Education Code is amended to read: 94910. Prior to enrollment, an institution shall provide a prospective student with a School Performance Fact Sheet containing, at a minimum, the following  information,   information  as it relates to the educational program: (a) Completion rates, as calculated pursuant to Article 16 (commencing with Section 94928). (b) Placement rates for each educational program, as calculated pursuant to Article 16 (commencing with Section 94928), if the educational program is designed to lead to, or the institution makes any express or implied claim related to preparing students for, a recognized career, occupation, vocation, job, or job title. (c) License examination passage rates for programs leading to employment for which passage of a state licensing examination is required, as calculated pursuant to Article 16 (commencing with Section 94928). (d) Salary or wage information, as calculated pursuant to Article 16 (commencing with Section 94928).  (e) The institution's net price calculator if the institution is required to provide one pursuant to Section 1015a(h)(3) of Title 20 of the United States Code.   (f) The average student loan debt of graduates of the institution, if the institution receives funding pursuant to Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).   (g)   (e)  If a program is too new to provide data for any of the categories listed in this subdivision, the institution shall state on its fact sheet: "This program is new. Therefore, the number of students who graduate, the number of students who are placed, or the starting salary you can earn after finishing the educational program are unknown at this time. Information regarding general salary and placement statistics may be available from government sources or from the institution, but is not equivalent to actual performance data."  (h)   (f)  All of the following: (1) A description of the manner in which the figures described in subdivisions (a) to  (f)   (d)  , inclusive, are calculated or a statement informing the reader of where he or she may obtain a description of the manner in which the figures described in subdivisions (a) to  (f)   (d)  , inclusive, are calculated. (2) A statement informing the reader of where he or she may obtain from the institution a list of the employment positions determined to be within the field for which a student received education and training for the calculation of job placement rates as required by subdivision (b). (3) A statement informing the reader of where he or she may obtain from the institution a list of the objective sources of information used to substantiate the salary disclosure as required by subdivision (d).  (i)   (g)  The following statements: (1) "This fact sheet is filed with the Bureau for Private Postsecondary Education. Regardless of any information you may have relating to completion rates, placement rates, starting salaries, or license exam passage rates, this fact sheet contains the information as calculated pursuant to state law." (2) "Any questions a student may have regarding this fact sheet that have not been satisfactorily answered by the institution may be directed to the Bureau for Private Postsecondary Education at (address), Sacramento, CA (ZIP Code), (Internet Web site address), (telephone and fax numbers)."  (j)   (h)  If the institution participates in federal financial aid programs, the most recent three-year cohort default rate reported by the United States Department of Education for the  institution and   institution,  the percentage of enrolled students receiving federal student loans  , and the average student loan debt of graduates of the institution calculated pursuant to Article 16 (commencing with Section 94928)  .  SEC. 3.   Section 94929.5 of the   Education Code   is amended to read:  94929.5. (a) An institution shall annually report to the bureau, as part of the annual report, and shall publish in its School Performance Fact Sheet, all of the following: (1) The job placement rate, calculated by dividing the number of graduates employed in the field by the number of graduates available for employment for each program that is either (1) designed, or advertised, to lead to a particular career, or (2) advertised or promoted with any claim regarding job placement. (2) The 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, calculated by dividing the number of graduates who pass the examination by the number of graduates who take the licensing examination the first time that the examination is available after completion of the educational program. The institution shall use state agency licensing data to calculate license examination passage rates. If those data are unavailable, the institution shall calculate the license examination passage rate in a manner consistent with regulations adopted by the bureau. (3) Salary and wage information, consisting of the total number of graduates employed in the field and the annual wages or salaries of those graduates stated in increments of five thousand dollars ($5,000). (4)  (A)    If applicable, the most recent official three-year cohort default rate reported by the United States Department of Education for the  institution and   institution,  the percentage of enrolled students receiving federal student loans  , and the average student loan debt of graduates of the institution  .  (B) The student loan debt information concerning graduates of the institution shall be calculated and reported as follows:   (i) The institution shall calculate the number of students receiving student loans who started as first-time postsecondary students at the institution, and who received a certificate, associate's degree, or bachelor's degree during that academic year.   (ii) (I) The institution shall calculate the number and percentage of the students identified pursuant to clause (i) who borrowed at any time while enrolled at the institution through any student loan program, including, but not necessarily limited to, institutional loans, state loans, federal Perkins loans, federal Stafford subsidized and unsubsidized loans, and private loans that were certified or known by the institution, including both federal direct student loans and federal family education loans.   (II) The institution shall calculate the total principal borrowed in those loans described in subclause (I).   (iii) (I) The institution shall calculate the number and percentage of the students identified pursuant to clause (i) who borrowed at any time while enrolled at the institution through a federal student loan program, including, but not necessarily limited to, federal Perkins loans, federal Stafford subsidized and unsubsidized loans, federal direct student loans, and federal family education loans, but excluding institutional loans, state loans, and private loans.   (II) The institution shall calculate the total principal borrowed in those loans described in subclause (I).   (iv) The institution shall report to the bureau and on the School Performance Fact Sheet both of the following:   (I) The percentages calculated pursuant to clauses (ii) and (iii).   (II) The average per-undergraduate cumulative principal borrowed by those students counted pursuant to clauses (ii) and (iii), calculated by dividing the sum identified in subclause (II) of each of those clauses by the number of students receiving the loans described in the respective clause. The institution shall report average loan debt information for certificate, associate degree, and baccalaureate degree programs separately.   (v) For purposes of this paragraph, "loans" shall include cosigned loans that financed the student's own enrollment or attendance, but shall not include parental loans.  (b) Nothing in this section shall limit the bureau's authority to collect information from an institution to comply with this section and ensure, by regulation and other lawful means, that the information required by this section, and the manner in which it is collected and reported, is all of the following: (1) Useful to students. (2) Useful to policymakers. (3) Based upon the most credible and verifiable data available. (4) Does not impose undue compliance burdens on an institution.  SEC. 4.   Sections 2 and 3 of this act shall become operative only if an act that becomes operative on or before January 1, 2015, amends or repeals Section 94950 of the Education Code to delay or eliminate the January 1, 2015, repeal date of the California Private Postsecondary Education Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10 of Title 3 of the Education Code).