California 2017 2017-2018 Regular Session

California Assembly Bill AB1619 Introduced / Bill

Filed 02/17/2017

                    CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1619Introduced by Assembly Member BermanFebruary 17, 2017 An act to add Section 94885.6 to the Education Code, relating to private postsecondary education.LEGISLATIVE COUNSEL'S DIGESTAB 1619, as introduced, Berman. Private postsecondary education.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 adopt by regulation minimum operating standards for institutions that are subject to the acts provisions. Under existing federal law, in order to be eligible for funding under the federal Higher Education Act Title IV student assistance programs, an educational program must lead to a degree at a nonprofit or public institution or it must prepare students for gainful employment in a recognized occupation. Existing federal law establishes debt-to-earnings rates to determine whether a gainful employment program prepares students for gainful employment in a recognized occupation.This bill, as of January 1, 2019, would prohibit the bureau from granting an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates, as they read on January 1, 2017. The bill would, as of January 1, 2019, automatically suspend the approval to operate of an institution that is offering a gainful employment program that does not meet federal debt-to-earnings rates, as they read on January 1, 2017, as specified.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 94885.6 is added to the Education Code, to read:94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.(c) The bureau shall adopt regulations as necessary to implement this section.

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1619Introduced by Assembly Member BermanFebruary 17, 2017 An act to add Section 94885.6 to the Education Code, relating to private postsecondary education.LEGISLATIVE COUNSEL'S DIGESTAB 1619, as introduced, Berman. Private postsecondary education.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 adopt by regulation minimum operating standards for institutions that are subject to the acts provisions. Under existing federal law, in order to be eligible for funding under the federal Higher Education Act Title IV student assistance programs, an educational program must lead to a degree at a nonprofit or public institution or it must prepare students for gainful employment in a recognized occupation. Existing federal law establishes debt-to-earnings rates to determine whether a gainful employment program prepares students for gainful employment in a recognized occupation.This bill, as of January 1, 2019, would prohibit the bureau from granting an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates, as they read on January 1, 2017. The bill would, as of January 1, 2019, automatically suspend the approval to operate of an institution that is offering a gainful employment program that does not meet federal debt-to-earnings rates, as they read on January 1, 2017, as specified.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 





 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 1619

Introduced by Assembly Member BermanFebruary 17, 2017

Introduced by Assembly Member Berman
February 17, 2017

 An act to add Section 94885.6 to the Education Code, relating to private postsecondary education.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1619, as introduced, Berman. Private postsecondary education.

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 adopt by regulation minimum operating standards for institutions that are subject to the acts provisions. Under existing federal law, in order to be eligible for funding under the federal Higher Education Act Title IV student assistance programs, an educational program must lead to a degree at a nonprofit or public institution or it must prepare students for gainful employment in a recognized occupation. Existing federal law establishes debt-to-earnings rates to determine whether a gainful employment program prepares students for gainful employment in a recognized occupation.This bill, as of January 1, 2019, would prohibit the bureau from granting an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates, as they read on January 1, 2017. The bill would, as of January 1, 2019, automatically suspend the approval to operate of an institution that is offering a gainful employment program that does not meet federal debt-to-earnings rates, as they read on January 1, 2017, as specified.

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 adopt by regulation minimum operating standards for institutions that are subject to the acts provisions. Under existing federal law, in order to be eligible for funding under the federal Higher Education Act Title IV student assistance programs, an educational program must lead to a degree at a nonprofit or public institution or it must prepare students for gainful employment in a recognized occupation. Existing federal law establishes debt-to-earnings rates to determine whether a gainful employment program prepares students for gainful employment in a recognized occupation.

This bill, as of January 1, 2019, would prohibit the bureau from granting an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates, as they read on January 1, 2017. The bill would, as of January 1, 2019, automatically suspend the approval to operate of an institution that is offering a gainful employment program that does not meet federal debt-to-earnings rates, as they read on January 1, 2017, as specified.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 94885.6 is added to the Education Code, to read:94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.(c) The bureau shall adopt regulations as necessary to implement this section.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 94885.6 is added to the Education Code, to read:94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.(c) The bureau shall adopt regulations as necessary to implement this section.

SECTION 1. Section 94885.6 is added to the Education Code, to read:

### SECTION 1.

94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.(c) The bureau shall adopt regulations as necessary to implement this section.

94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.(c) The bureau shall adopt regulations as necessary to implement this section.

94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.(c) The bureau shall adopt regulations as necessary to implement this section.



94885.6. (a) As of January 1, 2019, the bureau shall not grant an approval to operate to an institution that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017.

(b) An institution with an approval to operate as of January 1, 2019, that is offering a gainful employment program that does not meet the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017, shall have its approval to operate automatically suspended. The bureau shall issue an order suspending the institution and that suspension shall not be lifted until the institutions gainful employment program is no longer offered or meets the federal debt-to-earnings rates established in Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations, as it read on January 1, 2017. A suspended institution shall not enroll new students in any of its degree programs, and shall execute a teach-out plan for its enrolled students.

(c) The bureau shall adopt regulations as necessary to implement this section.