Amended in Assembly March 28, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1835


Introduced by Assembly Member Holden

February 9, 2016


An act tobegin delete amend Section 94874end deletebegin insert add and repeal Section 94885.2end insert of the Education Code, relating to private postsecondary education.

LEGISLATIVE COUNSEL’S DIGEST

AB 1835, as amended, Holden. California Private Postsecondary Education Act of 2009:begin insert minimum operating standards:end insert exemptions.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. Thebegin delete act exempts an institution from its provisions if any of a list of specific criteria are met.end deletebegin insert act, among other things, requires the bureau to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The act is to be repealed by its own provisions on January 1, 2017.end insert

This bill would exemptbegin insert institutions that grant doctoral degrees in psychoanalysisend insert from the provisions of the actbegin delete an institution solely offering terminal professional degrees if: (1) all students hold master’s or doctoral degrees before enrolling at the institution, (2) all students, except for certain designated research candidates, hold a valid professional license, and that license remains valid throughout the period of their enrollment at the institution, and (3) the institution does not accept federal student aid.end deletebegin insert requiring the imposition of those minimum operating standards and accreditation requirements if, and as long as, these institutions satisfy specified conditions, including a requirement that all of the institution’s students hold master’s or doctoral degrees before enrollment in the institution, and a requirement that the institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2017.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 94885.2 is added to the end insertbegin insertEducation Codeend insertbegin insert,
2to read:end insert

begin insert
3

begin insert94885.2.end insert  

(a) Notwithstanding any other law, an institution
4that grants doctoral degrees in psychoanalysis shall not be subject
5to Section 94885 or 94885.1 if, and as long as, it satisfies all of
6the following conditions:

7
(1) All of the institution’s students hold master’s or doctoral
8degrees before they enroll in the institution.

9
(2) All of the institution’s students, with the exception of
10research candidates governed by subdivision (a) of Section 2529
11of the Business and Professions Code and regulated by the Medical
12Board of California, hold a professional license to practice
13psychotherapy that remains valid throughout the period of their
14enrollment at the institution and carry current malpractice
15insurance in their respective fields.

16
(3) The institution does not accept federal student aid.

17
(4) The institution is a nonprofit entity.

18
(5) The institution has obtained accreditation from, or has
19submitted a self-study application to, the Accreditation Council
20for Psychoanalytic Education on or before July 1, 2017.

21
(b) This section shall remain in effect only until January 1, 2021,
22and as of that date is repealed, unless a later enacted statute, that
23is enacted before January 1, 2021, deletes or extends that date.

end insert
begin delete
24

SECTION 1.  

Section 94874 of the Education Code is amended
25to read:

26

94874.  

Except as provided in Section 94874.2, the following
27are exempt from this chapter:

P3    1(a) An institution that offers solely avocational or recreational
2educational programs.

3(b) (1) An institution offering educational programs sponsored
4by a bona fide trade, business, professional, or fraternal
5organization, solely for that organization’s membership.

6(2) (A) Except as provided in subparagraph (B), a bona fide
7organization, association, or council that offers preapprenticeship
8training programs, on behalf of one or more Division of
9Apprenticeship Standards-approved labor-management
10apprenticeship programs that satisfies one of the following
11conditions:

12(i) It is not on the Eligible Training Provider List established
13and maintained by the California Workforce Investment Board
14but has met the requirements for placement on the list.

15(ii) It is on the Eligible Training Provider List established and
16maintained by the California Workforce Investment Board and
17meets the requirements for continued listing.

18(B) If an organization, association, or council has been removed
19from the Eligible Training Provider List established and maintained
20by the California Workforce Investment Board for failure to meet
21performance standards, it is not exempt until it meets all applicable
22performance standards.

23(c) A postsecondary educational institution established, operated,
24and governed by the federal government or by this state or its
25political subdivisions.

26(d) An institution solely offering any of the following:

27(1) Test preparation for examinations required for admission to
28a postsecondary educational institution.

29(2) Continuing education or license examination preparation,
30if the institution or the program is approved, certified, or sponsored
31by any of the following:

32(A) A government agency, other than the bureau, that licenses
33persons in a particular profession, occupation, trade, or career field.

34(B) A state-recognized professional licensing body, such as the
35State Bar of California, that licenses persons in a particular
36profession, occupation, trade, or career field.

37(C) A bona fide trade, business, or professional organization.

38(3) Terminal professional degrees, as long as all of the following
39conditions are met:

P4    1(A) All students hold master’s or doctoral degrees before
2enrolling at the institution.

3(B) All students, except for research candidates whose practice
4is regulated by the Medical Board of California pursuant to Section
52529 of the Business and Professions Code, hold a valid
6professional license, and that license remains valid throughout
7their tenures at the institution.

8(C) The institution does not accept federal student aid.

9(e) (1) An institution owned, controlled, and operated and
10maintained by a religious organization lawfully operating as a
11nonprofit religious corporation pursuant to Part 4 (commencing
12with Section 9110) of Division 2 of Title 1 of the Corporations
13Code, that meets all of the following requirements:

14(A) The instruction is limited to the principles of that religious
15organization, or to courses offered pursuant to Section 2789 of
16Business and Professions Code.

17(B) The diploma or degree is limited to evidence of completion
18of that education.

19(2) An institution operating under this subdivision shall offer
20degrees and diplomas only in the beliefs and practices of the
21church, religious denomination, or religious organization.

22(3) An institution operating under this subdivision shall not
23award degrees in any area of physical science.

24(4) Any degree or diploma granted under this subdivision shall
25contain on its face, in the written description of the title of the
26degree being conferred, a reference to the theological or religious
27aspect of the degree’s subject area.

28(5) A degree awarded under this subdivision shall reflect the
29nature of the degree title, such as “associate of religious studies,”
30“bachelor of religious studies,” “master of divinity,” or “doctor of
31divinity.”

32(f) An institution that does not award degrees and that solely
33provides educational programs for total charges of two thousand
34five hundred dollars ($2,500) or less when no part of the total
35charges is paid from state or federal student financial aid programs.
36The bureau may adjust this cost threshold based upon the California
37Consumer Price Index and post notification of the adjusted cost
38threshold on its Internet Web site, as the bureau determines,
39through the promulgation of regulations, that the adjustment is
40consistent with the intent of this chapter.

P5    1(g) A law school that is accredited by the Council of the Section
2of Legal Education and Admissions to the Bar of the American
3Bar Association or a law school or law study program that is
4subject to the approval, regulation, and oversight of the Committee
5of Bar Examiners, pursuant to Sections 6046.7 and 6060.7 of the
6Business and Professions Code.

7(h) A nonprofit public benefit corporation that satisfies all of
8the following criteria:

9(1) Is qualified under Section 501(c)(3) of the United States
10Internal Revenue Code.

11(2) Is organized specifically to provide workforce development
12or rehabilitation services.

13(3) Is accredited by an accrediting organization for workforce
14development or rehabilitation services recognized by the
15Department of Rehabilitation.

16(i) An institution that is accredited by the Accrediting
17Commission for Senior Colleges and Universities, Western
18Association of Schools and Colleges, or the Accrediting
19Commission for Community and Junior Colleges, Western
20Association of Schools and Colleges.

21(j) An institution that satisfies all of the following criteria:

22(1) The institution has been accredited, for at least 10 years, by
23an accrediting agency that is recognized by the United States
24Department of Education.

25(2) The institution has operated continuously in this state for at
26least 25 years.

27(3) During its existence, the institution has not filed for
28 bankruptcy protection pursuant to Title 11 of the United States
29Code.

30(4) The institution’s cohort default rate on guaranteed student
31loans does not exceed 10 percent for the most recent three years,
32as published by the United States Department of Education.

33(5) The institution maintains a composite score of 1.5 or greater
34on its equity, primary reserve, and net income ratios, as provided
35under Section 668.172 of Title 34 of the Code of Federal
36Regulations.

37(6) The institution provides a pro rata refund of unearned
38institutional charges to students who complete 75 percent or less
39of the period of attendance.

P6    1(7) The institution provides to all students the right to cancel
2the enrollment agreement and obtain a refund of charges paid
3through attendance at the second class session, or the 14th day
4after enrollment, whichever is later.

5(8) The institution submits to the bureau copies of its most recent
6IRS Form 990, the institution’s Integrated Postsecondary Education
7Data System Report of the United States Department of Education,
8and its accumulated default rate.

9(9) The institution is incorporated and lawfully operates as a
10nonprofit public benefit corporation pursuant to Part 2
11(commencing with Section 5110) of Division 2 of Title 1 of the
12Corporations Code and is not managed or administered by an entity
13for profit.

14(k) Flight instruction providers or programs that provide flight
15instruction pursuant to Federal Aviation Administration regulations
16and meet both of the following criteria:

17(1) The flight instruction provider or program does not require
18students to enter into written or oral contracts of indebtedness.

19(2) The flight instruction provider or program does not require
20or accept prepayment of instruction-related costs in excess of two
21thousand five hundred dollars ($2,500).

end delete


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