BILL ANALYSIS                                                                                                                                                                                                    Ó






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                             2011-12 Regular Session
                                         

          BILL NO:       AB 611
          AUTHOR:        Gordon
          AMENDED:       March 22, 2011
          FISCAL COMM:   Yes            HEARING DATE:  June 15, 2011
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Private postsecondary education:  unaccredited 
          doctoral programs.
          
           SUMMARY  

          This bill prohibits an institution from offering an 
          unaccredited doctoral degree program without making certain 
          disclosures to students, as specified.  

           BACKGROUND  

          Existing law, the Private Postsecondary Education Act (Act), 
          provides, among other things, for student protections and 
          regulatory oversight of private postsecondary schools in the 
          state and prohibits private postsecondary education 
          institutions from certain conduct, including conduct related 
          to false advertising and inappropriate student recruitment 
          activities.  The Act establishes the Bureau for Private 
          Postsecondary Education (BPPE) within the Department of 
          Consumer Affairs (DCA) to oversee and regulate specified 
          private postsecondary institutions and to enforce the 
          provisions of the Act.  (Business and Professions Code § 27 
          et. seq. and Education Code § 94897)  

           ANALYSIS  

           This bill  prohibits a private postsecondary educational 
          institution from offering an unaccredited doctoral degree 
          program without disclosing to prospective students prior to 
          enrollment, that the degree program is unaccredited, whether 
          the degree issued is in a field that requires licensure in 
          California, and any known limitation of the degree, 
          including, but not limited to, whether the degree is 
          recognized for licensure or certification in California and 
          other states.  




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           STAFF COMMENTS  

           1)   History  :  The Private Postsecondary and Vocational 
               Education Reform Act of 1989 established the Bureau for 
               Private Postsecondary and Vocational Education (BPPVE) 
               in the Department of Consumer Affairs for the purpose of 
               approving and regulating private postsecondary and 
               vocational educational institutions in California.  The 
               provisions governing the operation and administration of 
               the BPPVE and the approval and regulation of the private 
               postsecondary and vocational institutions became 
               inoperative on July 1, 2007, and were repealed as of 
               January 1, 2008.  AB 1525 (Cook, Chapter 67, 2007) 
               declared legislative intent to protect students, allowed 
               for the continuation of matters pending before Bureau 
               for Private Postsecondary and Vocational Education 
               (BPPVE), and provided for minimal oversight of 
               institutions by Department of Consumer Affairs (DCA) 
               until February 1, 2008.  SB 45 (Perata, Chapter 635, 
               2007) extended limited DCA oversight of private 
               postsecondary schools from February 1, 2008 to July 1, 
               2008.  AB 48 (Portantino, Chapter 310, 2009) 
               re-established the state regulation of private 
               postsecondary educational institutions in California by 
               a bureau within the DCA.

           2)   Purpose  .  According to the author's office, ensuring 
               unaccredited doctoral degree programs disclose certain 
               information, including any known limitations of the 
               unaccredited degree and whether the degree is recognized 
               for licensure or certification in other states will 
               further protect consumers who decide to participate in 
               these programs.  Currently, unaccredited doctoral 
               programs are not required to disclose their 
               accreditation status and related limitations in 
               California or in other states.  The purpose of this bill 
               is to improve access to information for potential 
               students before they make investments in their 
               education.  

          According to the Senate Business, Professions and Economic 
               Development Committee analysis, recent reports and 
               hearings on the abuses and pitfalls in the for-profit 
               postsecondary education industry provides a rationale 
               for greater transparency.  According to information 
               provided by the author, from 1998 to 2008, enrollment in 
               for-profit schools jumped 236%, far outpacing growth in 



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               public and nonprofit private schools, which grew by 
               approximately 20%.  On average, only 22% of students at 
               for-profit schools will earn degrees from those 
               institutions within six years, compared to 55% and 65% 
               at public and private nonprofit colleges and 
               universities, respectively.  The author also notes that 
               a quarter of borrowers who attend for-profit colleges 
               and entered repayment on their loans in 2008 defaulted 
               within three years; a higher rate than any other sector 
               in postsecondary education.  To the extent that 
               potential students will have more information about the 
               degree programs to which they apply, this bill could 
               help consumers make fully informed decisions about their 
               investment before entering into costly loan agreements 
               for programs that may not lead to employment in the 
               intended field.  

           3)   Role of accreditation  .  Accreditation is a voluntary, 
               non-governmental peer review process utilized for the 
               purpose of determining academic quality of higher 
               education institutions and degree programs.  The Western 
               Association of Schools and Colleges (WASC) is one of six 
               regional accrediting bodies recognized by the United 
               States Department of Education and the Council for 
               Higher Education Accreditation.  Generally speaking, 
               professions that require certification or licensure as a 
               prerequisite for employment (such as education, health 
               care, or counseling), require degrees from an accredited 
               institution of higher education.  This bill seeks to 
               increase transparency and student protections by 
               ensuring that students enrolling in unaccredited 
               doctoral degree programs at private postsecondary 
               institutions are aware of the limitations imposed by a 
               degree program that is unaccredited.  


           4)   Related and prior legislation  .  

          AB 1889 (Portantino, 2010) included similar provisions to AB 
               611, was vetoed by Governor Schwarzenegger due to 
               concerns over unrelated provisions in the bill regarding 
               bureau employment requirements.  

          AB 48 (Portantino, Chapter 310, 2009) re-established the 
               state regulation of private postsecondary educational 
               institutions in California by a bureau within the DCA.  




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           SUPPORT
           
          California Psychological Association

           OPPOSITION
           
          None received.