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. AB 611 Page 2 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and regulation of the private postsecondary and vocational institutions became inoperative on July 1, 2007, and were repealed as of January 1, 2008.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 AB 611 Page 3 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. AB 611 Page 4 SUPPORT California Psychological Association OPPOSITION None received.