BILL ANALYSIS
SB 599
Page 1
Date of Hearing: June 30, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
SB 599 (Negrete McLeod) - As Amended: June 23, 2009
SENATE VOTE : 39-0
SUBJECT : Workforce development.
SUMMARY : Requires the successor agency to the Bureau for
Private Postsecondary and Vocational Education (BPPVE) to
transmit data on school performance to the California
Postsecondary Education Commission (CPEC), extends the
California Dental Corps Loan Repayment Program of 2002 (DCLRP),
and authorizes local workforce investment boards (WIBs) to work
directly with institutions of higher education and other
training providers to design education and training programs for
the purpose of distributing funds provided by the federal
American Recovery and Reinvestment Act of 2009 (ARRA).
Specifically, this bill :
1)States that if AB 48 (Portantino) of 2009 is enacted and
becomes effective on or before January 1, 2010, and a
successor agency to BPPVE is created:
a) The successor agency must transmit any available data
regarding school performance, including attendance and
graduation rates, it receives from any schools under its
jurisdiction to the CPEC; and,
b) WIBs may work directly with institutions of higher
education and other training providers, including
accredited private postsecondary institutions, to quickly
design education and training to fit the needs of the job
seekers and employers they are serving for purposes of
disbursing economic recovery funds made available as part
of ARRA.
2)Requires the Dental Board of California (DBC), on or after
July 1, 2010, to extend the DCLRP and distribute the money
remaining in the account until July 1, 2012. Specifies that
regulations that were adopted by the DBC for the purposes of
the DCLRP shall apply.
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3)Adds an urgency clause because the bill is necessary to
disburse economic recovery funds recently made available by
Congress as part of ARRA to workforce development programs in
the state and to extend the operation of a dental assistance
program as quickly as possible.
EXISTING STATE LAW :
1)Established the Private Postsecondary and Vocational Education
Reform Act of 1989 (Act), which became inoperative on July 1,
2007, which expressed legislative intent to ensure minimum
standards of instructional quality and institutional stability
and required BPPVE to, among other things, review and
investigate all institutions, programs and courses of
instructions approved under the Act.
2)Establishes CPEC to integrate policy and create fiscal and
programmatic analyses about California's postsecondary
education system. Requires CPEC to identify and recommend
policies to meet the state's educational, research and public
service needs.
3)Establishes DBC within the Department of Consumer Affairs for
the purpose of licensing and regulating the practice of
dentistry and requires these activities to be funded from fees
imposed upon licensees.
4)Creates the DCLRP, to be administered by DBC, to provide up to
$105,000 in loan repayments for dental practitioners who serve
in underserved areas and establishes the Dentally Underserved
Account in the State Dentistry Fund and transfers $3 million
from the Dentistry Fund to the Dental Account over three
years, starting July 1, 2003.
5)Specifies that after a Dental Corps participant has completed
one year of service, DBC shall provide up to $25,000 for loan
repayment from the Dental Account. A participant who serves a
second consecutive year shall receive up to an additional
$35,000 and a third consecutive year would earn an additional
$45,000 in loan repayment. Loan repayments from the Dental
Account may not exceed $105,000.
EXISTING FEDERAL LAW :
1)Enacts ARRA, which will provide California with approximate
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$488 million for the Workforce Investment Act (WIA) and other
job training programs.
2)Enacts WIA which provides funding for workforce investment
activities to states for specified activities like job
training, employment investment, work incentive programs and
employment training outreach programs.
3)Specifies that 15% of a state's federally allocated funds can
be retained by the state to develop and coordinate workforce
development activities, establishes local workforce
development boards to develop, implement and coordinate
workforce development programs and specifies that the
remaining 85% of federal funds be allocated to local WIBs for
the purpose of carrying out their workforce development
activities.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office,
"Existing law does not expressly authorize WIA funds to be used
for educational and job training programs at private
postsecondary schools. Under the ARRA, California is expected
to receive $488 million from the federal government for job
training services, 85% of which will be funneled directly to the
local WIBs. Given that private schools often have partnerships
with local industries and can adapt their curriculum to the
changing needs of the economy faster than public schools, this
bill seeks to give the local WIBs the authority to use those
funds to contract with any national, regional, or industry
accredited private postsecondary institution they believe will
help them meet their job training goals.
"When the BPPVE was in existence, there was no requirement for
the BPPVE to transmit information regarding the performance of
the schools' operations under its jurisdiction to the CPEC. As
a result, CPEC did not have access to information needed to
evaluate the efficacy of these schools in educating students and
assisting in the development of California's workforce. By
requiring the successor to the BPPVE to provide this information
to the CPEC, this bill provides CPEC the data necessary to
evaluate the performance of private postsecondary schools for
the purpose of policy analysis and recommendation.
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"In an attempt to ensure California's private postsecondary
schools are given an opportunity to assist in the state's
workforce development activities, this bill gives the local WIBs
explicit authority to utilize the job training services of
accredited schools. Additionally, it provides that when state
oversight of those institutions is re-established in DCA, data
on school performance is shared with CPEC for further review and
in-depth policy analysis."
Background .
Role of the WIBs in the Administration of ARRA . California's 49
Local Workforce Investment Areas (LWIAs) are designated by the
Governor based on population and commonality of labor market.
Each LWIA is administered by a local WIB certified by the state
in partnership with local elected officials. The WIBs are
comprised of representatives from private sector businesses,
organized labor, community-based organizations, local government
agencies, and local education agencies. WIBs provide policy
guidance, designate operators for their areas, One-Stop Career
Centers, and oversee the job training activities within their
local areas.
In addition to their community leadership role, WIBs will
provide stewardship of ARRA funds coming to California for
workforce development. WIA funding in ARRA allocated to
California is $488 million. WIBs have oversight of WIA funds
and will ensure that they are quickly and effectively put to
use, while at the same time ensuring accountability and
transparency. They will also continue in their role of resource
alignment by building relationships and cross-agency
collaboration. WIBs will be particularly focused on other
systems receiving stimulus funding, in order to maximize the
outcomes of the stimulus by leveraging resources. There are
millions of dollars targeted for job training in transportation,
energy, weatherization, health care and other government
programs and WIBs are currently identifying where these funds
will be allocated in their communities and working to leverage
and coordinate these with WIA funding.
California Postsecondary Education Commission (CPEC) . CPEC was
established in 1974 as the state's planning and coordinating
body for higher education and consists of the following 16
members: nine members of the general public, one member from
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each of California's major education systems (the California
Community Colleges, California State University, University of
California, independent colleges and universities and the State
Board of Education) and two student representatives.
One of CPEC's primary statutory purposes is to identify and
recommend policies to meet the state's educational, research and
public service needs. Its external affairs staff interacts on a
daily basis with legislators and their staff, administrative
offices, governmental officials and media representatives. Its
research staff prepares analyses, briefs and numerous CPEC
publications. CPEC also engages in various continuing
activities such as reviewing proposed academic programs, new
campuses or centers, conducting data analysis of student flow
and responding to requests of the Legislature and Governor.
To date, CPEC has completed very little examination of the
state's private postsecondary industry. While CPEC's website
concedes that "The private sector is a vital part of meeting the
postsecondary educational needs of the State and should be a
major component of the State's efforts to provide high quality
education and address future enrollment needs", CPEC lacks an
active role in the review and development of this sector.
Dental Corps Loan Repayment Program . DCLRP was created in 2002
[AB 982 (Firebaugh), Chapter 1131, Statutes of 2002] to increase
the number of primary care physicians and dentists who practice
in historically underserved areas by providing grants to help
pay for the high cost of attending medical or dental school.
The bill created three programs: the Dental Corps Program, the
Physician Corps Program and the Student Loan Repayment Program.
The Dental and Physician Corps Programs are aimed primarily at
existing licensees and were funded by this bill.
A variety of studies and reports in recent years, most notably
the Oral Health Needs Assessment sponsored jointly by the Dental
Health Foundation and the Department of Health Services, have
documented the significant unmet need for comprehensive dental
care services in California, especially in underserved areas.
The California Dental Association notes that efforts to
encourage dental school graduates to practice in these areas are
made difficult by the significant student loan debt which most
new dentists face when they graduate and begin practicing often
exceeding $150,000.
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DBC selects participants to practice in underserved areas, in
practice settings with a majority of underserved patients, and
gives priority consideration to applicants who are best suited
to the cultural and linguistic needs of those populations and
meet other related criteria. After each consecutive year of
service completed, participants will receive money for loan
repayment ($25,000 for the first year, $35,000 for the second
year, and $45,000 for the third year) for up to three years.
The law states each participant may receive no more than
$105,000 over three years.
Related legislation : AB 48 (Portantino) of 2009 renames the
Bureau for Private Postsecondary and Vocational Education
(Former Bureau) as the Bureau for Private Postsecondary
Education (Bureau) within the Department of Consumer Affairs
(DCA) and provides for Bureau oversight and regulation of
private postsecondary institutions operating in California.
This bill is pending in the Senate Business, Professions, and
Economic Development Committee.
Double referred : This bill is double-referred to Assembly
Higher Education Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Sarah Huchel / B. & P. / (916) 319-3301