BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 573 (Medina) - Higher education: campus closures: Corinthian  
          Colleges.
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: August 18, 2015        |Policy Vote: B., P. & E.D. 7 -  |
          |                                |          0, ED. 7 - 0          |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: Yes                    |Mandate: Yes                    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: August 27, 2015   |Consultant: Jillian Kissee      |
          |                                |                                |
           ----------------------------------------------------------------- 


          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 27, 2015


          Bill  
          Summary:  This bill, an emergency measure, provides various  
          forms of assistance to students impacted by the recent closure  
          of the Heald, Everest and Wyotech campuses owned by Corinthian  
          Colleges Inc. (CCI) and operated in California.


          Fiscal  
          Impact:  
           California Community Colleges: $100,000 for allocation to a  
            community college district to conduct a statewide media  
            campaign targeting students affected by the closure of CCI.   
            Potential cost pressures to backfill the loss of an unknown  
            amount of fee revenue to the extent there is an increase in  
            the statewide proportion of students receiving fee waivers due  
            to this bill.  This bill also allows campuses to determine  







          AB 573 (Medina)                                        Page 1 of  
          ?
          
          
            their own criteria for financial need which qualifies affected  
            CCI students to be exempt from fees.  (Proposition 98)

           Restoration of Financial Aid Award Years: Approximately $9.6  
            million to restore Cal Grant awards for affected students for  
            two years ($7.9 to restore one year and $1.7 to restore the  
            second year).  (General Fund)

           STRF Claims Payout to Affected Students: $8.2 million  
            annually, until fiscal year 2018-19, for a total of $32.7  
            million in Student Tuition Recovery Fund (STRF) to be offset  
            by increases in fees that generate $6.9 million in the 2015-16  
            fiscal year and $9.2 million annually, until the 2018-19  
            fiscal year.  (Special funds)

           STRF Claims Processing: $1.5 million in the 2015-16 fiscal  
            year and $1.3 million annually until the 2018-19 fiscal year  
            to support 15 positions to process approximately 1,800 claims  
            at the Bureau of Private Postsecondary Education. (Special  
            funds)

           Single Point of Contact: Unknown cost pressures to the  
            Department of Justice potentially in the hundreds of thousands  
            to low millions for additional staff to be single point of  
            contact for specified institutions to the extent it is  
            designated as the single point of contact by the Governor.   
            Potential significant additional costs for the entity  
            designated by the Governor to be the single point of contact  
            for all other institutions.  (General Fund)

           Legal Assistance Grants: $1.3 million appropriation from the  
            STRF.  (Special funds)



          Author  
          Amendments:  Remove distance education programs from the bill.   
          Narrow the expansion of those eligible for payment from the STRF  
          to students affected by the closure of the Heald campus.   
          Require the Governor to establish a single point of contact to  
          respond to each closure of an institution, as specified.  Change  
          the funding source of the legal assistance grants to the STRF.










          AB 573 (Medina)                                        Page 2 of  
          ?
          
          
                                      -- END --