BILL ANALYSIS �
AB 611
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Date of Hearing: March 29, 2011
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 611 (Gordon) - As Amended: March 22, 2011
SUBJECT : Private postsecondary education: unaccredited
doctoral degree program.
SUMMARY : Prohibits an unaccredited institution from offering
doctoral degrees without disclosing to the prospective student
that the degree program is unaccredited, whether the degree is
issued in a field that requires licensure in California, and any
known limitations of the unaccredited degree including whether
the degree is recognized for licensure or certification in other
states.
EXISTING LAW establishes the Private Postsecondary Education Act
(Act) which, among its numerous provisions, prohibits certain
conduct on the part of private postsecondary education
institutions including prohibiting conduct related to false
advertising and inappropriate student recruitment activities.
The Act establishes the Bureau for Private Postsecondary
Education (Bureau) within the Department of Consumer Affairs
(DCA) to provide oversight and regulation of specified private
postsecondary institutions and to enforce the provisions of the
Act.
FISCAL EFFECT : Unknown
COMMENTS : Double-referral : This bill has been double-referred
to the Business, Professions and Consumer Protection Committee.
Background : In the late 1980s California developed a reputation
as the "diploma mill capital of the world." In response, the
Private Postsecondary and Vocational Education Act (Former Act)
was adopted to overhaul the state's regulatory program.
Concurrently, the Maxine Waters School Reform and Student
Protection Act (Waters Act) was passed. The regulatory
framework established by the merging of the Waters Act and the
Former Act led to duplicative and conflicting statutory
provisions, plaguing California's oversight of these
institutions with problems that continued through the sunset of
the laws on January 1, 2007. After several years of negotiation
on a new regulatory structure, AB 48 (Portantino), Chapter 310,
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Statutes of 2009, established the Act and the Bureau within DCA
to regulate private postsecondary institutions.
Current regulation of the private postsecondary sector : The Act
includes numerous provisions that together establish a
regulatory structure for private postsecondary institutions. It
is important to note that not all private institutions are
covered by the provisions of the Act; full and partial
exemptions are provided for low-cost programs, recreational
schools, schools accredited by regional accrediting agencies,
among other types of institutions. For those institutions that
are covered by the Act, they are required to follow a Bureau
evaluation and approval process, required to abide by numerous
"fair business practices" aimed at protecting students, required
to disclose information to students in enrollment agreements and
catalogs, required to participate in a Student Tuition Recovery
Fund, and required to pay application and annual fees to the
Bureau to support the oversight structure. The Act also
establishes processes for penalties for non-compliance,
providing the Bureau authority to perform site visits and
investigations, order fines and student tuition refunds, and
ultimately suspend or revoke an institution's approval to
operate. Finally, the Act requires evaluation and reporting
from the Legislative Analyst's Office and the Bureau of State
Audits.
Accreditation : Accreditation is a voluntary, non-governmental
peer review process utilized for the purpose of determining
academic quality of higher education institutions and programs.
Under federal law, USDE is required to publish a list of
recognized accrediting agencies deemed reliable authorities on
the quality of education or training provided by their
accredited institutions. Only those institutions accredited by
a USDE-recognized accrediting organization are eligible to
participate in the federal student financial assistance
programs. Unaccredited degrees can limit a student's career
options. Some career fields and employers require degrees from
accredited colleges; this is especially true in professions like
education and health care, where certification or licensure is a
pre-requisite for employment. While California licensure
requirements in the health care field vary, physicians,
dentists, clinical social workers, optometrists, and
chiropractors must obtain their required degrees from accredited
institutions or institutions approved by their respective
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licensing boards.
Purpose of this bill : According to the author, recent reports
and hearings on the abuses and pitfalls in the for-profit
postsecondary education industry reflects a need for greater
transparency in order to protect the consumer. The author notes
that, on average, only 22% of students at for-profit
institutions will earn a degree within six years, compared to
55% and 65% at public and private nonprofit institutions,
respectively. Finally, the author notes that a quarter of
student borrowers at for-profit institutions defaulted on their
loans, a higher rate than any other postsecondary education
sector. This bill seeks to increase transparency and student
protections by ensuring that students enrolling in unaccredited
doctoral programs at private postsecondary institutions are
aware of the limitations imposed on their future by the
accreditation status of their degree program.
Related Legislation : AB 1013 (Committee on Higher Education)
would enact non-controversial technical changes to the Act.
This bill is set for hearing in this Committee on March 29,
2011.
Prior Legislation : AB 1889 (Portantino) of 2010 contained a
provision similar to that contained in this bill. In addition,
AB 1889 contained changes to the calculation of placement rates,
and Bureau employment requirements. AB 1889 was vetoed by the
Governor due to concerns over the Bureau employment provisions.
REGISTERED SUPPORT / OPPOSITION :
Support
None on File
Opposition
None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960
AB 611
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