BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 19, 2016


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                  Rudy Salas, Chair


          AB 1835  
          (Holden) - As Amended April 6, 2016


          NOTE: This bill is double-referred, having been previously heard  
          by the Assembly Committee on Higher Education on April 5, 2016  
          and approved on a 13-0 vote.


          SUBJECT:  California Private Postsecondary Education Act of  
          2009:  minimum operating standards:  exemptions.


          SUMMARY:  Exempts institutions who are approved by the Bureau of  
          Private Postsecondary Education (BPPE), and who grant doctoral  
          degrees in psychoanalysis, from accreditation by an accrediting  
          agency recognized by the United States Department of Education  
          (USDE).


          EXISTING LAW:


          1)Establishes the BPPE with the Department of Consumer Affairs  
            (DCA) to oversee and regulate private postsecondary  
            educational institutions.  (Education Code (EDC) Section  
            94800, et seq.)
          2)Defines "accredited" to mean an institution that is accredited  
            by an accrediting agency recognized by the USDE.  (EDC Section  
            94813)








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          3)Defines an "accrediting agency" as an agency recognized by the  
            USDE.  (EDC Section 94814).


          4)Defines "approval to operate" or "approval" to mean the  
            authorization to offer to the public and to provide  
            postsecondary educational programs, as well as the written  
            document issued to an institution signifying its approval to  
            operate.  (EDC Section 94817)


          5)Requires the BPPE to adopt by regulation minimum operating  
            standards for an institution to ensure that the program can  
            achieve its objective; the facilities and instructional  
            equipment and material are sufficient to enable the program;  
            the administrators and faculty are qualified;  the institution  
            maintain written and relevant standards for student  
            admissions, as well as maintains a withdrawal policy and  
            provides refunds; gives students a document signifying the  
            degree or diploma awarded; maintains records and standard  
            transcripts; and, is accredited by an accrediting agency or is  
            in the process of accreditation  (EDC Section 94885)


          6)Requires an unaccredited institution that is approved by the  
            BPPE, prior to January 1, 2015, to operate and offer degree  
            programs to submit an accreditation plan to the BPPE, to  
            obtain pre-accreditation by July 1, 2017, to obtain  
            accreditation by July 1, 2020, and to comply with various  
            student disclosure and visiting committee review requirements.  
             (EDC Section 94885.1)


          7)Provides that an institution that has not been accredited by  
            an accrediting agency that seeks to offer one or more degree  
            programs must submit an accreditation plan to the BPPE  
            including documentation the BPPE deems necessary to determine  








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            potential for accreditation, as specified.  (EDC Section  
            94885.5)


          8)Provides for specified exemptions from the Private  
            Postsecondary Education Act of 2009 (Act) for specific types  
            of institutions, including, but not limited to, those where  
            oversight is already provided by other entities; among those  
            exemptions is an institution owned, controlled, and operated  
            and maintained by a religious organization lawfully operating  
            as a nonprofit religious corporation, as specified, whose  
            degrees granted must reflect the nature of the degree title.   
            (EDC Section 94874).


          9)Provides that institutions deemed equivalent by the Medical  
            Board of California (MBC) who have completed clinical training  
            in psychoanalysis may engage in psychoanalysis as an adjunct  
            to teaching, training, or research and hold themselves out to  
            the public as psychoanalysts; students in those institutes may  
            engage in psychoanalysis under supervision, if the students  
            and graduates do not hold themselves out to the public by any  
            title or description of services incorporating the words  
            "psychological," "psychologist," "psychology,"  
            "psychometrists," "psychometrics," or "psychometry," or state  
            or imply that they are licensed to practice psychology;  
            requires theses students and graduates to register with the  
            MBC and present evidence of student or graduate status;  
            provides that the MBC may suspend or revoke the exemption of  
            those persons for unprofessional conduct, as defined.   
            (Business and Professions Code Section 2529)


          THIS BILL:


          1)Exempts institutions that grant doctoral degrees in  
            psychoanalysis from the provision of the Act that require  
            accreditation requirements if the institution satisfies all  








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            the following requirements:


             a)   The institution's students hold master's or doctoral  
               degrees before enrolling in the institution;
             b)   All of the institution's students, except as specified,  
               hold a professional license to practice psychotherapy that  
               remains valid throughout enrollment at the institution and  
               carry current malpractice insurance in their respective  
               fields;


             c)   The institution does not accept federal student aid;


             d)   The institution is a nonprofit entity; and,


             e)   The institution is accredited by the Accreditation  
               Council for Psychoanalytic Education (ACPE), or has  
               submitted a self-study to the ACPE, on or before July 1,  
               2017.


          2)Provides that the exemption in number one above sunsets on  
            January 1, 2021 unless extended.
          FISCAL EFFECT:  Unknown. This bill is keyed fiscal by the  
          Legislative Counsel.  


          COMMENTS:


          Purpose.  This bill exempts from institutions who are approved  
          by the BPPE and who grant doctoral degrees in psychoanalysis  
          from accreditation by an accrediting agency recognized by the  
          USDE.  This bill is sponsored by  The Institute of Contemporary  
          Psychoanalysis  .  According to the author,  "[This bill] provides  
          graduate programs in psychoanalysis an exemption to the [Act] as  








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          there is currently no national accrediting body for the  
          psychoanalyst field. The original author of SB 1247, Ted Lieu,  
          has written a letter to clarify that the intent of his  
          legislation never meant to affect small not-for-profit  
          institutions offering extensive education in the discipline of  
          psychoanalysis."


          Background.  The BPPE is responsible for oversight of private  
          postsecondary educational institutions operating with a physical  
          presence in California.  After numerous legislative attempts to  
          remedy the laws and structure governing regulation of private  
          postsecondary institutions, AB 48 (Portantino), Chapter 310,  
          Statutes of 2009, made many substantive changes that created a  
          new, solid foundation for oversight and gave the new BPPE an  
          array of enforcement tools to ensure schools comply with the  
          law.


          The Act requires all unaccredited colleges in California to be  
          approved by BPPE, and all nationally accredited colleges to  
          comply with numerous student protections.  The Act requires  
          disclosure of critical information to students such as program  
          outlines, graduation and job placement rates, and license  
          examination information, and ensures colleges justify those  
          figures. AB 48 contained numerous exemptions to state-level  
          oversight, the most notable of which is an exemption from BPPE  
          authority and regulation under the Act granted to for-profit and  
          nonprofit regionally accredited institutions.  Students  
          attending institutions that are accredited by a regional  
          accrediting agency other than the Western Association of Schools  
          and Colleges (WASC), which is one of the six regional  
          accrediting bodies recognized by the USDE, are currently  
          eligible for very limited tuition recovery assistance in the  
          event of a school closure, but are not eligible for any other  
          consumer protections provided under the Act.


          Requiring Accreditation.  The BPPE noted in its response to the  








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          2013 Sunset Review Background Paper prepared by the Senate  
          Committee on Business, Professions and Economic Development  
          staff that "requiring accreditation would provide a much higher  
          level of consumer protection to students in the state and ensure  
          that California students would have the option of applying for  
          federal financial aid.  Additionally, by requiring accreditation  
          for approval to operate in California, the state will save money  
          by not forcing the [BPPE] to act in the place of an accrediting  
          body for unaccredited institutions."


          At the time of the 2013 Sunset Review Hearings, the BPPE  
          highlighted that California is one of few states to continue to  
          allow unaccredited degree granting programs, with approximately  
          140 approved institutions offering unaccredited degrees.  The  
          BPPE noted that it was working to evaluate the approvals granted  
          to unaccredited schools offering degrees and that the end result  
          of the BPPE's analysis often leads to denial upon renewal or  
          approval revocation.  The BPPE stated in 2014 that "requiring  
          accreditation for approval to operate would allow the BPPE to  
          focus on its mandate of consumer protection, while relying on  
          academic experts approved by USDE to evaluate academic  
          programs."


          In response to these concerns, and as a means of better serving  
          students while aiming to decrease the BPPE's significant  
          workload associated with reviewing unaccredited degree granting  
          institutions, SB 1247 (Lieu), Chapter 840, Statutes of 2014  
          amended the Act to require that all degree granting programs be  
          accredited, unless they meet at least one of the specified  
          exemptions in the EDC.


          According to a letter to the BPPE from former Senator, and now  
          Congressman, Ted Lieu, who authored SB 1247, "the purpose and  
          design [of SB 1247] was never intended to apply to an  
          institution such as the Institute of Contemporary Psychoanalysis  
          (ICP)."  The letter goes on to say "ICP's standards for training  








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          far exceed the usual organizations accredited by the BPPE. ? In  
          contrast [to conventional educational settings], ICP's admission  
          requirements differ markedly - it requires proof of a terminal  
          degree in the particular setting (e.g. Ph.D., Psy.D, MFT, LCSW,  
          MD), including official school transcripts, and licensure prior  
          to admission, something that distinguishes programs at ICP from  
          many other degree granting institutions."


          Psychoanalytic studies.  According to the ACPE, "psychoanalysis  
          is a specific form of individual psychotherapy that aims to  
          bring unconscious mental elements and processes into awareness  
          in order to expand an individual's self-understanding, enhance  
          adaptation in multiple spheres of functioning, alleviate  
          symptoms of mental disorders and facilitate character change and  
          emotional growth."


          According to the author, "Beginning in the 1990s, the field of  
          psychoanalysis began to develop within the mental health  
          community.  Several non-profit educational institutions were  
          established to provide medical professional post-graduate,  
          continuing education training in the emerging field.  Because of  
          the relatively small nature of the training programs and their  
          status as providers of continuing education, there is no  
          national accreditation body for these programs."


          In 1991, both the BPPE and the MBC approved psychoanalysis  
          training programs as valid postsecondary, graduate training  
          programs for licensed professionals in mental health services.  
          According to the author, these accreditations have never been  
          contested and remained valid until the 2014 reforms enacted by  
          SB 1247.


          SB 1247 required institutions to seek accreditation from a  
          USDE-recognized accrediting agency, or if no programmatic  
          accreditation is available, to seek regional accreditation by  








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          the WASC Senior College and University Commission, which is a  
          lengthy and costly process that exceeds the resources of these  
          small, non-profit psychoanalysis programs.  This bill, instead,  
          requires institutions to seek accreditation from ACPE by July 1,  
          2017. It should be noted that ACPE is not a USDE recognized  
          accrediting agency, nor is it clear if ACPE is seeking  
          recognition by the USDE.  If these psychoanalytic programs are  
          not exempted as a result of this bill, or ACPE does not obtain  
          USDE recognition by the sunset date implemented by this bill,  
          the psychoanalytic programs will have to close.


          BPPE Sunset Review. The issue of unaccredited degree granting  
          programs is raised in the BPPE 2015 Sunset Review Report,  
          prepared by the Senate Committee on Business, Professions and  
          Economic Development and the Assembly Committee on Business and  
          Professions (Committees). The report notes that many  
          unaccredited degree-granting institutions have contacted the  
          Committees, citing opposition to the requirement to obtain  
          accreditation. The author may wish to raise this issue through  
          the 2016 Sunset Review process.


          Current Related Legislation. SB 1192 (Hill) of the current  
          legislative session addresses several issues, including the  
          effects of SB 1247 on institutions under the jurisdiction of the  
          BPPE, raised during the sunset hearing for BPPE on March 28,  
          2016. NOTE: This bill is pending in the Senate Committee on  
          Education.


          Prior Related Legislation. SB 1247 (Lieu), Chapter 840, Statutes  
          of 2014 amended the Act by requiring accreditation for  
          degree-granting institutions and changing statutory eligibility  
          requirements for the Student Tuition Recovery Fund (Fund), among  
          other things.


          ARGUMENTS IN SUPPORT: 








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          The  Institute of Contemporary Psychoanalysis  writes in support,  
          "Without [this bill], ICP would be unable to confer the degree  
          of Doctor of Psychoanalysis, which we have been doing at the  
          behest of the California Department of Education in the course  
          of their site visit at our inception in 1991.  Our candidates  
          are requires, in order to graduate, to write a thesis that makes  
          a significant contribution to the field of psychoanalysis.   
          These articles are often published in national and international  
          journals.  They benefit the patient population and the  
          professional sphere through adding to the body of knowledge  
          about the human mind and in the ways in which it can be  
          traumatized and then treated successfully."


          The  Psychoanalytic Center of California  writes in support,  
          "[This bill] address the [BPPE]'s decision to broadly apply  
          regulatory and target institutions outside the scope of the 2014  
          reforms to the [Act] by providing a narrow exception for  
          graduate institutions that exclusively provide education to  
          licensed professionals, already holding a masters or doctoral  
          degree, and that accept no federal student aid.  This narrowly  
          crafted measure provides these institutions the flexibility to  
          develop curriculum while protecting younger students from costly  
          diploma mills."


          The  Newport Center for Psychoanalytic Studies (NPI)  writes in  
          support, "Institutions like NPI face a fundamentally impossible  
          task in obtaining [USDE] sanctioned accreditation, despite the  
          unquestioned legitimacy of the education we provide.  All of our  
          candidate students are already licensed practitioners, and the  
          do not have a vocational outcome.  Because NPI offers graduate  
          degrees at the doctoral level, they are also beyond the scope of  
          the national accreditors.  The regional accreditors also do not  
          offer a practically available route to accreditations.  Tiny  
          non-profit institutions like NPI cannot afford or implement the  
          large, expensive bureaucratic structures and processes required  








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          to prosecute let alone obtain regional accreditation.  
          Additionally, our student cohorts are too small for regional  
          accreditation consideration."


          The  Los Angeles Institute and Society for Psychoanalytic Studies  
          (LAISPS)  writes in support, "[As the BPPE] adopted regulations  
          to implement the 2014 reforms, the [BPPE] has broadly applied  
          [SB 1247] to specialized graduate programs for professionals,  
          requiring these programs to undergo the expensive and lengthy  
          accreditation required for large undergraduate research  
          universities. ? Although LAISPS has already applied for and  
          received an Exemption from the BPPE, we strongly support [this  
          bill]."


          ARGUMENTS IN OPPOSITION:


          None on file.


          IMPLEMENTATION ISSUES:


          The process of obtaining accreditation from the ACPE may require  
          more time than the six months this bill allocates.  The author  
          should amend the bill to allow these psychoanalysis programs  
          more time to become accredited.


          AMENDMENTS:


          To address the implementation consideration above, the author  
          should amend the bill as follows:


            (5) The institution has obtained accreditation from,  








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            or has submitted a self-study application to, the  
            Accreditation Council for Psychoanalytic Education  
            on or before July 1,  2017.   2018.  


          REGISTERED SUPPORT:  


          Institute of Contemporary Psychoanalysis (sponsor)


          Psychoanalytic Center of California


          The Newport Center for Psychoanalytic Studies


          The Los Angeles Institute and Society for Psychoanalytic Studies


          REGISTERED OPPOSITION:  


          None on file.




          Analysis Prepared by:Gabby Nepomuceno / B. & P. / (916) 319-3301


















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