BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1835             
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          |Author:    |Holden                                               |
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          |Version:   |April 25, 2016                             Hearing   |
          |           |Date:   June 29, 2016                                |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Olgalilia Ramirez                                    |
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          Subject:  California Private Postsecondary Education Act of  
          2009:  minimum operating standards:  exemptions


            SUMMARY
          
          This bill provides a limited exemption from minimum operating  
          standards and accreditation requirements for approval by the  
          Bureau for Private Postsecondary Education (Bureau), to  
          institutions that grant doctoral degrees in psychoanalysis,  
          provided that these  institutions satisfy specified conditions,  
          including a requirement that all of the students hold master's  
          or doctoral degrees before enrolling in the institution.

            BACKGROUND
          
          Existing law:

             1)   Establishes the California Private Postsecondary  
               Education Act of 2009 (Act) until January 1, 2017, and  
               requires the Bureau within the Department of Consumer  
               Affairs to, among other things, to review, investigate and  
               approve private postsecondary institutions, programs and  
               courses of instruction pursuant to the Act and authorizes  
               the Bureau to take formal actions against an  
               institution/school to ensure compliance with the Act and  
               even seek closure of an institution/school if determined  
               necessary.  The Act also provides for specified disclosures  
               and enrollment agreements for students, requirements for  
               cancellations, withdrawals and refunds, and that the Bureau  







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               shall administer the Student Tuition Recovery Fund (STRF)  
               to provide refunds to students affected by the possible  
               closure of an institution/school.   (Education Code §  
               94800, et seq.)

             2)   Provides for numerous exemptions from the Act for  
               specific types of institutions, including, but not limited  
               to, an institution that is accredited by the Accrediting  
               Commission for Senior Colleges (ACSC) and Universities,  
               Western Association of Schools and Colleges (WASC), or the  
               Accrediting Commission for Community and Junior Colleges  
               (ACCJC).  (EC § 94874) 

             3)   Defines "accredited" to mean an institution that is  
               accredited by an accrediting agency recognized by the  
               United States Department of Education (USDE).  
               (EC § 94813)

             4)   Defines an "accrediting agency" as an agency recognized  
               by the United States Department of Education (USDE).  (EC §  
               94814)

             5)   Requires the Bureau 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.  (EC § 94885)

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

             7)   Defines "approval to operate" or "approval" to mean the  








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               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.  
               (EC § 94817)

             8)   Under the Medical Board of California (MBC), authorizes  
               graduates of the Southern California Psychoanalytic  
               Institute, the Los Angeles Psychoanalytic Society and  
               Institute, the San Francisco Psychoanalytic Institute, the  
               San Diego Psychoanalytic Center or institutes deemed  
               equivalent by the MBC who have completed clinical training  
               in psychoanalysis to engage in psychoanalysis as an adjunct  
               to teaching, training, or research and hold themselves out  
               to the public as psychoanalysts.  (Business and Professions  
               Code § 2529)

             9)   Provides that 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  
               that they do not state or imply that they are licensed to  
               practice psychology.  Authorizes those students and  
               graduates seeking to engage in psychoanalysis to register  
               with MBC presenting evidence of their student or graduate  
               status.  (Business and Professions Code § 2529)

            ANALYSIS
          
          1)   This bill provides an exemption from minimum operating  
               standards and accreditation requirements for approval by  
               the Bureau for Private Postsecondary Education (Bureau), to  
               institutions that grant doctoral degrees in psychoanalysis  
               if and as long as, it satisfies all of the following  
               conditions;

               a)        All of the institution's students hold master's  
               or doctoral degrees before 
                    they enroll in the institution.

               b)        All of the institution's students, other than  
               research students regulated by 








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                    the Medical Board of California, hold a valid  
                    professional license authorizing the individual to  
                    practice psychotherapy that remains valid during their  
                    enrollment 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.

               e)        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, 2018.

          2)   Sunsets the exemption July 1, 2021

          STAFF COMMENTS
          
          1)   Need for the bill.  Current law requires the Bureau for  
               Private Postsecondary Education (Bureau) to adopt by  
               regulation minimum operating standards and imposes  
               accreditation requirements for certain institutions. The  
               author notes, "That the 2014 reforms of the Private  
               Postsecondary Education Act (Act) provided certain  
               exemptions for graduate programs primarily aimed at  
               licensed professionals in California. However, several  
               psychoanalysis non-profit professional postgraduate  
               programs received a notice of noncompliance for not meeting  
               the national accreditation requirement. Because of the  
               relatively small nature of the training programs and their  
               states as providers of continuing education, there is no  
               national accreditation body for these programs." This bill  
               provides a limited exemption only from minimum operating  
               standards and accreditation requirements for approval by  
               the Bureau, specifically to institutions that grant  
               doctoral degrees in psychoanalysis thereby allowing the  
               institutions to continue to operate under the specified  
               conditions.  

          2)   California Private Postsecondary Education Act (Act).  The  
               state's program for regulation of private postsecondary and  
               vocational education institutions has historically been  








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               plagued with problems.  During the late 1980's, California  
               developed a reputation as the "diploma mill capital of the  
               world."

               After numerous legislative attempts to remedy the laws and  
               structure governing regulation of private postsecondary  
               institutions, AB 48 (Portantino, Chapter 310, Statutes of  
               2009) was enacted to establish the California Private  
               Postsecondary Education Act of 2009 (Act), which took  
               effect January 1, 2010. The Act provided the regulatory  
               framework for oversight of private postsecondary  
               educational institutions operating with a physical presence  
               in California.  

               The Act requires all unaccredited colleges in California to  
               be approved by the Bureau, and all nationally accredited  
               colleges to comply with numerous student protections. It  
               also establishes prohibitions on false advertising and  
               inappropriate recruiting. 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.  
               The Act also guarantees 
               students can complete their educational objectives if their  
               institution closes its doors while providing the Bureau  
               with enforcement powers necessary to protect consumers. 

               In 2014, SB 1247 (Lieu, Chapter 840, Statutes of 2014)  
               amended the Act to, among other things address concerns  
               about the ongoing approval by the Bureau of unaccredited  
               institutions offering degrees as these institutions are  
               unlikely to be recognized by accredited institutions for  
               purpose of transfer, or by many employers.  The Act now  
               requires degree granting institutions to be accredited by  
               an agency recognized by the United States Department of  
               Education (USDE) or if no programmatic accreditation is  
               available, to seek regional accreditation by the WASC  
               Senior College and University Commission by July 1, 2020.
                 
          3)   What is accreditation? Accreditation is a baseline measure  
               used to determine academic quality for educational or  
               professional institutions and programs. Accrediting  
               agencies are private organizations that establish operating  
               standards for educational or professional institutions and  








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               programs, determine the extent to which the standards are  
               met, and publicly announce their findings.  Under federal  
               law, the U.S. Department of Education (USDE) establishes  
               the general standards for accreditation agencies and is  
               required to publish a list of recognized accrediting  
               agencies that are deemed reliable authorities on the  
               quality of education provided by their accredited  
               institutions.  There are three basic types of  
               accreditation:
               
                  a)        Regional Accreditation: There are six  
                    USDE-recognized regional accrediting agencies. Each  
                    regional accreditor encompasses public, the vast  
                    majority of non-profit private (independent), and some  
                    for-profit postsecondary educational institutions in  
                    the region it serves. California's regional  
                    accrediting agency is separated into two commissions:  
                    the Accrediting Commission for Community and Junior  
                    Colleges (ACCJC) and the Senior College and University  
                    Commission (WASC-Sr.). 

                  b)        National Accreditation: National accreditation  
                    is not based on geography, but more focused to  
                    evaluate specific types of schools and programs.  
                    National accreditation is designed to allow  
                    nontraditional colleges (trade schools, religious  
                    schools, certain online schools) to be compared  
                    against similarly designed institutions.  Different  
                    standards and categories are measured, depending on  
                    the type of institution.  

                  c)        Specialized/Programmatic Accreditation:   
                    Offered by accrediting agencies that represent  
                    specific fields of study, these agencies do not  
                    accredit entire colleges but instead accredit the  
                    programs within colleges that prepare students for the  
                    specific field or industry.  In most cases,  
                    specialized accreditation alone does not enable  
                    participation in state and federal financial aid  
                    programs.

               As noted, the Act requires degree granting institutions to  
               be accredited by an agency recognized by the USDE. This  
               bill exempts psychoanalysis non-profit professional  








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               postgraduate programs from that requirement for a limited  
               period of time. This bill, instead, requires psychoanalysis  
               institutions to seek accreditation from Accrediting Council  
               for Psychoanalytic Education, by July 1, 2017. Staff notes  
               that the Accrediting Council for Psychoanalytic Education  
               is not a U.S. Department of Education (USDE) accrediting  
               agency and it's unclear if this entity is seeking  
               recognition by the USDE. Absent the exemption provided by  
               the provisions in this bill psychoanalytic programs will be  
               out of compliance with the Act and would have to close.  
               Additionally, if the Accrediting Council for Psychoanalytic  
               Education does not obtain USDE recognition by the sunset  
               date implemented by this bill, the psychoanalytic programs  
               will be out of compliance with the Act at that time. 

          1)   Bureau Sunset Review. On March 28, 2016, the Business,  
               Professions and Economic Development Committee (BPED  
               Committee) convened a joint hearing that included Senate  
               Education, Assembly Committees on Higher Education and  
               Business, Professions and Consumer Protection. The  
               background paper for the hearing raised various issues,  
               including, among other things, exemptions and the numerous  
               attempts to create additional exemptions for certain  
               institutions or programs. The background paper also notes  
               that many unaccredited degree-granting institutions have  
               contacted the Committees, citing opposition to the  
               requirement to obtain accreditation. 

          2)   Exemption solely applicable to institutions serving  
               post-graduate students. This bill is limited to nonprofit  
               psychoanalysis institutions that enroll students with  
               master's degrees or doctoral degrees, and students must  
               hold a valid professional license to practice psychotherapy  
               or be a research candidate in psychoanalysis registered  
               with the Medical Board of California.  The author asserts  
               that psychoanalysis students are older, savvier students  
               that hold advanced degrees and professional licenses. Staff  
               notes, these students would not qualify for state financial  
               aid programs like Cal Grant because of the post-graduate  
               status. Additionally, in order to claim the exemption  
               provided by the provisions in this bill an institution may  
               not accept federal student aid dollars. 

          3)   Psychoanalytic studies. According the Accrediting Council  








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               for Psychoanalytic Education, "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 disorder, and facilitate character  
               change and emotional growth." According to the author,  
               "beginning in the early 1990's 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."

          4)   Double-referral. This bill was double-referred, having been  
               previously heard by the Senate Committee on Business,  
               Professions and Economic Development on June 13, 2016 and  
               approved on a 9-0-1 vote.

            SUPPORT
          
          Institute of Contemporary Psychoanalysis
          Newport Center for Psychoanalytic Studies
          Psychoanalytic Center of California 

            OPPOSITION
           
           None received. 

                                      -- END --