Bill Text: CA AB330 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Student financial aid: information.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2014-08-19 - Ordered to inactive file at the request of Senator Lieu. [AB330 Detail]

Download: California-2013-AB330-Amended.html

---

BILL NUMBER: AB 330	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 23, 2014
	AMENDED IN ASSEMBLY  JANUARY 9, 2014

INTRODUCED BY   Assembly Member Chau

                        FEBRUARY 13, 2013

   An act to amend Sections 69433.2, 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.
   (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 license examination passage rates, the
institution's latest 3-year cohort default rate, the institution's
percentage of undergraduate student borrowers, and certain other
student loan debt information concerning  graduates 
 full-time, first-time degree- or certificate-seeking
undergraduate students  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.
   (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Act of 2009, which is repealed pursuant to its own provisions on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 certain student loan debt information concerning 
graduates   full-time, first-time degree- or
certificate-seeking undergraduate students  of the institution
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
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) License examination passage rates, as  required
  reported to the commission  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   certified by the commission 
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.
   (6) (A) Student loan debt information concerning 
graduates   full-time, first-time degree- or
certificate-seeking undergraduate students  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  final  annual financial aid reports, as
completed pursuant to Section 66021.1, and providing a copy of the
report to the commission. 
   (C) Campuses of the California Community Colleges are exempt from
complying with this paragraph. 
   (b) Commencing the year after the commission begins to receive
reports pursuant to subdivision (a), the commission shall provide
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) 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   Undergraduate student 
loan debt information concerning  graduates of  
student borrowers who received a certificate, associate's degree, or
bachelor's degree from  a Cal Grant participating institution
shall be calculated and reported as follows:
   (1) The institution shall calculate the number of students who
started as  full-time,  first-time  postsecondary
  degree or certificate-seeking undergraduate 
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,  private loans that were certified by the
institution,  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  ,   and parental 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  of student borrowers  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 
Cal Grant participating  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  and loans where
a person other than the student is the principal borrower  .
  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 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) 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."
   (f) All of the following:
   (1) A description of the manner in which the figures described in
subdivisions (a) to (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 (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).
   (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)."
   (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, 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) 
 (A)  designed, or advertised, to lead to a particular
career, or  (2)   (B)  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, 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   full-time, first-time degree- or
certificate-seeking undergraduate students  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  full-time, 
first-time  postsecondary   degree- or
certificate-seeking undergraduate  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  and loans where a person other
than the student is the principal   borrower  .
   (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).