BILL ANALYSIS                                                                                                                                                                                                    Ó




           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 2609|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                       CONSENT


          Bill No:  AB 2609
          Author:   Chau (D)
          Amended:  5/10/16 in Assembly
          Vote:     21  

           SENATE BUS., PROF. & ECON. DEV. COMMITTEE:  9-0, 6/13/16
           AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski

           SENATE JUDICIARY COMMITTEE:  7-0, 6/28/16
           AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning,  
            Wieckowski

          SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           ASSEMBLY FLOOR:  67-0, 5/27/16 (Consent) - See last page for  
            vote

           SUBJECT:   Advertising:  educational conferences


          SOURCE:    Author
          
          DIGEST:   This bill requires for-profit educational conference  
          organizations, as defined, that provide solicitation materials  
          directly to a school for purposes of distribution to a student,  
          to include specified disclosures in those materials and to  
          provide the materials in a sealed envelope addressed to the  
          parent or guardian of the student and to provide the disclosures  
          on separate documents addressed to the school and to any  
          employee thereof who is asked to distribute materials to a  
          student.    


          ANALYSIS:  








                                                                    AB 2609  
                                                                    Page  2




          Existing law:

          1)Protects, pursuant to the federal Family Educational Rights  
            and Privacy Act (FERPA), the privacy of student education  
            records and specifies that it applies to all schools that  
            receive funds under an applicable program of the U.S.  
            Department of Education.  FERPA requires that schools, with  
            certain exceptions, obtain a parent or guardian's written  
            consent prior to the disclosure of personally identifiable  
            information from a child's education records.  


          (20 U.S.C. § 1232g; 34 CFR Part 99) 
          2)Defines an "educational travel organization" (ETO) as a  
            person, partnership, corporation, or other entity who offers  
            educational travel programs for students residing, in the  
            State of California, and included an educational program as a  
            component, and defines a "student traveler" as a person who is  
            enrolled in K-12 at a time an educational travel program is  
            arranged with an ETO.  (Business and Professions Code (BPC) §  
            17552)


           3) Prohibits, pursuant to the Student Online Personal  
             Information Protection Act, an operator of a website, online  
             service, online application, or mobile application from  
             knowingly engaging in targeted advertising to students or  
             their parents or legal guardians, using covered information  
             to amass a profile about a K-12 student, selling a student's  
             information, or disclosing covered information, unless  
             otherwise specified.  (BPC § 22584(b)) 


          This bill:


          1)Defines an "educational conference" to mean a conference,  
            forum, camp, or other similar event, intended to develop the  
            leadership, career or college readiness of a student, or  
            provide some other form of educational benefit, when 









                                                                    AB 2609  
                                                                    Page  3




          participation in the event is represented as being limited to  
            students receiving an award, invitation or nomination to  
            participate in the event.  Defines an "educational conference  
            organization" (ECO) to mean a person, partnership,  
            corporation, or other entity that operates in a for-profit  
            manner and that plans and advertises educational conferences  
            to students residing in California.

          2)Requires an ECO that provides materials related to an  
            educational conference directly to a school or employee for  
            purposes of distribution to a student to comply with all of  
            the following:



             a)   Provide materials in a sealed envelope or other  
               packaging addressed to the parent or legal guardian of the  
               student.



             b)   Include with the materials all of the following  
               disclosures, in clear and conspicuous language:



                 i)       That the materials constitute a solicitation for  
                   the sale of a product.



              ii)      The legal form of the organization making the  
                   solicitation, including the for-profit status of the  
                   organization.



              iii)     The legal owner, if any, of the organization making  
                   the solicitation.










                                                                    AB 2609  
                                                                    Page  4




              iv)      The specific eligibility criteria required for  
                   participation in the solicited educational conference  
                   or conferences, if any.



              v)       An itemized list of the costs to participate in the  
                   educational conference and the total price of  
                   participating in the educational conference, including  
                   estimated expenses not included in the price of the  
                   educational conference.



              vi)      That attendance at an educational conference may  
                   not affect a student's chances of being admitted to  
                   college, and that a parent or guardian should contact  
                   the student's school counselor for more information.



              vii)     Whether or not a nomination from a teacher or  
                   school administrator is required to participate in the  
                   educational conference, or if an individual may be  
                   self-nominated or nominated by a parent or guardian.



              viii)    The total amount, if any, of funding or other  
                   support, including employment or grants for school  
                   supplies, the organization has provided to the  
                   student's school or the school's employees during the  
                   last three years before the date of the solicitation.



              ix)      A phone number, email address, or website that a  
                   parent or guardian may use to contact a relevant  
                   government agency for purposes of filing a complaint  
                   related to the solicitation or the educational  
                   conference itself.








                                                                    AB 2609  
                                                                    Page  5






          1)Requires the ECO to provide the disclosures described above on  
            separate documents addressed to the school and to any employee  
            thereof who is asked to distribute materials to a student.





          2)Makes legislative findings and declarations pertaining to the  
            importance of protecting students from false or misleading  
            advertising, promoting high-quality educational conference  
            experiences, and encouraging public confidence in youth  
            leadership conferences by establishing appropriate marketing  
            restrictions and disclosure requirements on for-profit  
            educational conference solicitations. 




          Background

          The Educational Conference Industry.  Educational conferences go  
          by a variety of different names: youth leadership camps,  
          experiential learning programs, and prestige conferences, but  
          what they all have in common is that they provide school-aged  
          children who are seeking extra-curricular 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.



          Perhaps the most well-known example of an educational conference  
          provider is the American Legion's Boys and Girls State, which  
          was founded in 1935 to allow students to study the operation of  
          local, county and state government by participating in  
          activities such as legislative sessions or court proceedings  
          during their annual conferences.  Legion Posts select high  








                                                                    AB 2609  
                                                                    Page  6



          school juniors based on recommended guidelines that include  
          interviews to evaluate merit and ability in 
          order to attend their program.  In most cases, individual  
          expenses are paid by a sponsoring post, a local business or  
          another community-based organization.

          Rotary International also offers several programs for youth such  
          as the Rotary Youth Leadership Awards, which is a leadership  
          development program that hosts events that include  
          presentations, activities, and workshops that cover a variety of  
          topics.  Participants are nominated by their local Rotary clubs,  
          which often cover all expenses.  Both the American Legion and  
          Rotary programs are organized as non-profits. 

          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. 

          Consumer Protection Concerns about ECOs and their Nomination  
          Process.  According to a New York Times article in April of  
          2009, "Congratulations! You are Nominated. It's an Honor (It's a  
          Sales Pitch)", 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  
          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  








                                                                    AB 2609  
                                                                    Page  7



          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.  


          The cost of for-profit conferences is also raised as an issue.   
          The Times article describes one program (Envision EMI's  
          week-long Congressional Youth Leadership Council (CYLC)) that  
          can costs upwards of $2,200, with airfare and meals not  
          included, which students are encouraged to pay for through  
          community fundraising: "Needy students are typically sent a  
          brochure with fund-raising ideas and success stories of other  
          students who have tapped friends, family and community to help  
          pay their way...."  In 2006, 1.7% of the revenues for Envision's  
          CYLC program went to grants and scholarships.



          FERPA and Access to Directory Information.  Although there are  
          several federal and state laws in place designed to protect  
          student privacy, certain exceptions exist that allow a student's  
          information to be released to outside organizations.  For  
          instance, FERPA permits schools to disclose "directory  
          information," defined as information that is generally not  
          considered  harmful or an invasion of privacy if released,  
          without written consent to a third party, which can include  
          companies that manufacture class rings or publish yearbooks.

          Because ECOs are only accessing directory information when  
          asking teachers to nominate students, a FERPA violation does not  
          arise.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified8/3/16)








                                                                    AB 2609  
                                                                    Page  8





          California Teachers Association
          Common Sense Kids Action


          OPPOSITION:   (Verified8/3/16)


          None received


          ARGUMENTS IN SUPPORT:  Supporters indicate that currently, some  
          for-profit event planning companies are delivering their  
          marketing materials for expensive conferences directly through  
          public schools.  By their own description, these solicitations  
          may appear to be an exclusive nomination to attend a prestigious  
          youth leadership conference, when in fact they are simply a  
          sales pitch for a conference that can cost thousands of dollars.  
           These solicitations are delivered by a trusted source; the  
          student's teacher. Supporters believe this bill will clear up  
          any confusion for the teacher about whether the student is  
          receiving a competitive honor or whether it is in fact a  
          solicitation for a commercial purpose.




           ASSEMBLY FLOOR:  67-0, 5/27/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bonilla, Bonta, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Eggman,  
            Frazier, Beth Gaines, Gallagher, Cristina Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder,  
            Lopez, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin,  
            Nazarian, Obernolte, Olsen, Patterson, Quirk, Ridley-Thomas,  
            Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
           NO VOTE RECORDED: Bloom, Brough, Brown, Chiu, Dodd, Eduardo  
            Garcia, Grove, Hadley, Jones-Sawyer, Low, Melendez, O'Donnell,  
            Ting








                                                                    AB 2609  
                                                                    Page  9






          Prepared by:  Bill Gage / B., P. & E.D. / (916) 651-4104
          8/3/16 18:05:06


                                   ****  END  ****