BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2609


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          Date of Hearing:  May 18, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2609 (Chau) - As Amended May 10, 2016


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          |Policy       |Privacy and Consumer           |Vote:|9 - 0        |
          |Committee:   |Protection                     |     |             |
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          |-------------+-------------------------------+-----+-------------|
          |             |Education                      |     |7 - 0        |
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          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.    








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          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  








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            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  








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            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  








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            educational travel organizations (ETOs).



            


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081