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 ****