BILL ANALYSIS Ó AB 2609 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2609 (Chau) - As Amended May 10, 2016 ----------------------------------------------------------------- |Policy |Privacy and Consumer |Vote:|9 - 0 | |Committee: |Protection | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Education | |7 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill requires for-profit educational conference organizations (ECOs) that provide solicitation materials directly to a school for purposes of distribution to a student to include specified disclosures with the materials, to provide those disclosures to the school and specified school employees, and to provide the materials in a sealed envelope addressed to the parent or guardian of the student. AB 2609 Page 2 FISCAL EFFECT: Minor, non-reimbursable local costs due to the creation of a misdemeanor, offset to some extent by potential fine revenue. COMMENTS: 1)Purpose. This bill is intended to better protect students from questionable marketing practices for educational conferences by prohibiting for-profit ECOs from distributing solicitation materials for educational conferences directly to students at school, and by requiring certain disclosures to be included with the solicitation. According to the author, "While some for-profit youth leadership camps may provide a worthwhile enrichment experience for children who participate, the misleading and manipulative nature of a solicitation that appears to be an honor, and the fact that the pitch is directly and publicly aimed at the student and communicated through a teacher, raises serious questions of student privacy and consumer protection. Young students are particularly vulnerable to manipulative solicitations that appear to be a competitive award or honor because of their perceived value in applying for college, because a respected teacher delivered the materials, or perhaps because the 'nomination' was announced publicly before the student's peers." 2)Background. Educational conferences go by a variety of different names: youth leadership camps, experiential learning programs, and prestige conferences, but they all seek school-aged children who are seeking extra-curricular AB 2609 Page 3 activities for personal enrichment, civic engagement or even an advantage with future college admissions. However, these programs vary widely from one another in their marketing, admissions criteria, selection processes, and costs to participate. Two well-known examples of education conference providers are the American Legion and Rotary programs which are organized as non-profits. These programs select their participants based on recommended guidelines and in most cases, individual expenses are paid by sponsoring posts or local clubs or businesses. However, there are also programs offered by for-profit companies, such as the Junior National Young Leaders Conference, the National Youth Leadership Forum, or the Global Young Leaders Conference. These programs solicit their participants through a "nomination" process that relies on teachers to identify potential participants from among their own students, and can cost hundreds or even thousands of dollars to participate. 3)Consumer protection concerns about the "nomination" process. According to a 2009 New York Times article, ("Congratulations! You are Nominated. It's an Honor [It's a Sales Pitch]" New York Times, April 13, 2009) students are receiving conference solicitations that "looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal . . .[it] promised a 'lifetime advantage' and 'valuable addition' to her resume. It used words like 'elite,' distinguished,' 'select.'" Students who receive these offers may be led to believe that attendance at these conferences is a highly selective honor because of statements in the solicitation materials that call AB 2609 Page 4 nominees "the nation's most highly acclaimed students" and "most promising young leaders of tomorrow." However, according to the article, "there are no hard and fast criteria for nominators. . . .The nomination form asks for nothing beyond the student's name, address, school year and sex." Eligibility criteria may also be vague, or even non-existent. For example, the website of one ECO (Envision EMI) suggests that educators nominate students who "show special academic promise, aspirations, and leadership potential, can meet the challenges of the program's rigorous curriculum, and will be mature and confident contributors to group and program activities." However, no quantifiable criteria, such as grade point average, are provided, and the nomination process (requiring the student's name and address) can be completed online. Once a nomination is made, marketing materials designed to look like award letters will be delivered to the student's school, addressed directly to the student, or to the address provided in the nomination. In order to better protect students from potentially misleading advertising, this bill would require ECO's to address sealed solicitations to the parents or guardians of the student instead of the student and include key disclosures with those materials to make clear that it is a solicitation and not an award. By allowing parents to see the materials first, with the added context provided by the new disclosures, this bill attempts to put parents in a better position to understand and explain the nature of the solicitation to the student, thereby allowing the family to make a more informed decision as to whether or not to participate. 4)Prior Legislation. SB 142 (Boatwright), Chapter 772, Statutes of 1995, established consumer protection guidelines for AB 2609 Page 5 educational travel organizations (ETOs). Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081