Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act, among other things, requires the bureau to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The act is to be repealed by its own provisions on January 1, 2017.

This bill would, until January 1, 2021, exempt institutions that grant doctoral degrees in psychoanalysis from the provisions of the act requiring the imposition of the accreditation requirements if, and as long as, these institutions satisfy specified conditions, including a requirement that all of the institutions students hold masters or doctoral degrees before enrollment in the institution, and a requirement that the institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2018.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act, among other things, requires the bureau to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The act is to be repealed by its own provisions on January 1, 2017.

This bill would exempt institutions that grant doctoral degrees in psychoanalysis from the provisions of the act requiring the imposition of the accreditation requirements if, and as long as, these institutions satisfy specified conditions, including a requirement that all of the institutions students hold masters or doctoral degrees before enrollment in the institution, and a requirement that the institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2017. 2018.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act, among other things, requires the bureau to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The act is to be repealed by its own provisions on January 1, 2017.

This bill would exempt institutions that grant doctoral degrees in psychoanalysis from the provisions of the act requiring the imposition of those minimum operating standards and the accreditation requirements if, and as long as, these institutions satisfy specified conditions, including a requirement that all of the institutions students hold masters or doctoral degrees before enrollment in the institution, and a requirement that the institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2017.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act exempts an institution from its provisions if any of a list of specific criteria are met. act, among other things, requires the bureau to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The act is to be repealed by its own provisions on January 1, 2017.

This bill would exempt institutions that grant doctoral degrees in psychoanalysis from the provisions of the act an institution solely offering terminal professional degrees if: (1) all students hold masters or doctoral degrees before enrolling at the institution, (2) all students, except for certain designated research candidates, hold a valid professional license, and that license remains valid throughout the period of their enrollment at the institution, and (3) the institution does not accept federal student aid. requiring the imposition of those minimum operating standards and accreditation requirements if, and as long as, these institutions satisfy specified conditions, including a requirement that all of the institutions students hold masters or doctoral degrees before enrollment in the institution, and a requirement that the institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2017.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act exempts an institution from its provisions if any of a list of specific criteria are met.

This bill would exempt from the provisions of the act an institution solely offering terminal professional degrees if: (1) all students hold masters or doctoral degrees before enrolling at the institution, (2) all students, except for certain designated research candidates, hold a valid professional license, and that license remains valid throughout the period of their enrollment at the institution, and (3) the institution does not accept federal student aid.

GOVERNOR'S VETO

GV Bill Id:AB 1835

Author:(Holden)

As Enrolled Ver:August 22, 2016

2/3 vote

Original Committee Reference: HIGHER ED.

SUMMARY: Provides an exemption for five years from accreditation requirements for approval by the Bureau for Private Postsecondary Education (BPPE) to institutions that grant doctoral degrees in psychoanalysis, if all of the institution's students hold master's or doctoral degrees before they enroll in the institution and if all of the institution's students, other than research students regulated by the Medical Board of California, hold a valid professional license authorizing the individual to practice psychotherapy.

EXISTING LAW:

1. Establishes the BPPE, under the California Private Postsecondary Education Act (Act), until January 1, 2017; and, provides for the oversight and regulation of private postsecondary educational institutions (institutions) to ensure protection of the public and students.
2. Requires an institution seeking BPPE approval to operate and to offer a degree to either:
   1. Be accredited by an accrediting agency recognized by the United States Department of Education (USDE) to offer the degree(s); or
   2. Have an accreditation plan, approved by BPPE, for the institution to become fully accredited within five years of the BPPE issuance of a provisional approval to operate. An institution in this category must comply with specified student disclosure, visiting committee review and degree limitation requirements.
3. Requires an unaccredited institution that is approved to operate and to offer degree programs by BPPE prior to January 1, 2015, to submit an accreditation plan to BPPE, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements.

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal impact.

COMMENTS: Background. According to BPPE, California is one of few states to continue to allow unaccredited degree granting programs. This issue was raised during the 2013 Sunset Review of the BPPE; according to BPPE, "unaccredited degree-granting postsecondary educational institutions are a global concern. Students often choose unaccredited institutions because they are usually less expensive and frequently provide a degree with less rigorous work on the part of the student. While some students may be aware of the possible issues associated with attending an unaccredited institution and remain complacent throughout the process, other students, often from developing countries, enter unaccredited programs simply because they do not understand the difference between approval and accreditation. Credits and degrees earned at unaccredited institutions are unlikely to be recognized by licensing entities, accredited institutions for purposes of transfer, or many employers. So, while the initial cost of the educational program may be less than that of an accredited institution, the potential that the degree may not provide the consumer the anticipated benefits is high.

"According to BPPE, accreditation is the accepted standard for educational degrees. Accrediting bodies, as pointed out in a 2013 report issued by the Legislative Analyst's Office's, are good at assessing the quality of educational programs and gathering knowledgeable subject matter experts to assess content, rigor, currency, and delivery of educational programs. They have also been good at keeping up with emerging trends in education and incorporating them into their reviews. BPPE specifically noted in its response to the 2013 Sunset Review that "requiring accreditation would provide a much higher level of consumer protection to students in the state and ensure that California students would have the option of applying for federal financial aid. Additionally, by requiring accreditation for approval to operate in California, the state will save money by not forcing the Bureau to act in the place of an accrediting body for unaccredited institutions."

In response to these concerns and as a means of better serving students while aiming to decrease the Bureau's significant workload associated with reviewing unaccredited degree granting institutions, SB 1247 (Lieu), Chapter 840, Statutes of 2014, amended the Act to require that degree granting programs be accredited by an accrediting agency recognized by the United States Department of Education (USDE). Institutions offering a degree that seek BPPE approval are now required to either be accredited by an accrediting agency recognized by the USDE to offer the degree(s) or have an accreditation plan, approved by BPPE, for the institution to become fully accredited within five years of the BPPE issuance of a provisional approval to operate. SB 1247 also outlined a process for institutions that are currently approved by BPPE and offer degrees to submit an accreditation plan to the Bureau by July 1, 2015, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements.

According to BPPE, as of August 1, 2015, there are approximately 107 unaccredited institutions offering degrees that are approved by the Bureau or have applied for approval. These 107 institutions submitted plans to the Bureau outlining how they will achieve accreditation by July 1, 2020. BPPE is currently in the process of training staff to organize site visits to verify that progress is being made toward accreditation.

Purpose of this bill. According to the author, AB 1835 is attempting to assist credible, nonprofit graduate level psychoanalysis programs that were inadvertently caught up in the reforms targeting for-profit, low-quality, degree-granting institutions. AB 1835 will provide a narrow exception to the accreditation requirements contained in SB 1247 for institutions offering qualified students doctoral degrees in psychoanalysis, provided that the institution seeks accreditation from the Accreditation Council for Psychoanalytic Education before July 1, 2018; this exemption would sunset on January 1, 2021.

GOVERNOR'S VETO MESSAGE:

This bill exempts institutions that award doctoral degrees in psychoanalysis from the requirement to be accredited by a U.S. Department of Education-recognized accreditor.

I am not convinced that conferring special treatment on this one subset of professionals is warranted, when other means exist to comply with state law.

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0005088

 THIRD READING  

Bill No: AB 1835

Author:

:

Vote:

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 6/13/16

AYES: Hill, Bates, Block, Gaines, Galgiani, Jackson, Mendoza, Wieckowski

NO VOTE RECORDED: Hernandez

SENATE EDUCATION COMMITTEE: 9-0, 6/29/16

AYES: Liu, Block, Hancock, Huff, Leyva, Mendoza, Monning, Pan, Vidak

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 5/19/16 (Consent) - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill provides an exemption for five years from minimum operating standards and accreditation requirements for approval by the Bureau for Private Postsecondary Education (BPPE), to institutions that grant doctoral degrees in psychoanalysis, if all of the institution’s students hold master’s or doctoral degrees before they enroll in the institution and if all of the institution’s students, other than research students regulated by the Medical Board of California, hold a valid professional license authorizing the individual to practice psychotherapy.

ANALYSIS:

Existing law:

1. Establishes the California Private Postsecondary Education Act (Act) and requires BPPE to, among other things, review, investigate and approve private postsecondary institutions, programs and courses of instruction pursuant to the Act and authorizes BPPE to take formal actions against an institution/school to ensure compliance with the Act and even seek closure of an institution/school if determined necessary. The Act also provides for specified disclosures and enrollment agreements for students, requirements for cancellations, withdrawals and refunds, and that BPPE shall administer the Student Tuition Recovery Fund to provide refunds to students affected by the possible closure of an institution/school. (Education Code (EC) § 94800 et seq.)
2. Exempts various institutions from the Act.
3. Requires an institution seeking BPPE approval to operate and to offer a degree to either be accredited by an accrediting agency recognized by United States Department of Education (USDE) to offer the degree(s); or have an accreditation plan, approved by BPPE, for the institution to become fully accredited within five years of the BPPE issuance of a provisional approval to operate. (EC § 94885)
4. Requires an unaccredited institution that is approved to operate and to offer degree programs by BPPE prior to January 1, 2015, to submit an accreditation plan to BPPE, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements. (EC § 94885.1)

This bill provides an exemption for five years from minimum operating standards and accreditation requirements for approval by the BPPE to institutions that grant doctoral degrees in psychoanalysis, if all of the institution’s students hold master’s or doctoral degrees before they enroll in the institution and if all of the institution’s students, other than research students regulated by the Medical Board of California, hold a valid professional license authorizing the individual to practice psychotherapy.

Background

The Act and exemptions. BPPE has oversight of all of the non-exempt, private postsecondary institutions located in California. AB 48 (Portantino, Chapter 310, Statutes of 2009) established the Act and contained numerous exemptions to state-level oversight, the most notable of which is an exemption from BPPE authority and regulation under the Act granted to for-profit and nonprofit regionally accredited institutions.

The Act was amended through SB 1247 (Lieu, Chapter 840, Statutes of 2014) to prohibit an institution, beginning January 1, 2016, from claiming an exemption from the Act if the institution is approved to participate in Title 38 veterans financial aid programs. Legislative police committees at the time were concerned about multiple reports and hearings focused on the experience of veterans at private for-profit institutions, false and predatory advertising to veterans and the potential lack of accountability for the millions of dollars administered by the federal Veterans Administration (VA) and Department of Defense (DOD) spent at private postsecondary education institutions in California if schools are not regulated. Because neither DOD nor VA benefits originate through federal student financial aid, Title IV, money that institutions received through these programs was not counted as federal financial aid, thus not subject to a key federal regulatory requirement governing for-profit schools that no more than 90 percent of revenues come from federal financial aid.

Psychoanalysis institutions, studies and accreditation. According to the Accrediting Council for Psychoanalytic Education (ACPE), “psychoanalysis is a specific form of individual psychotherapy that aims to bring unconscious mental elements and processes into awareness in order to expand an individual’s self-understanding, enhance adaptation in multiple spheres of functioning, alleviate symptoms of mental disorder, and facilitate character change and emotional growth.” According to the author, “beginning in the early 1990's the field of psychoanalysis began to develop within the mental health community. Several non-profit educational institutions were established to provide medical professional post-graduate, continuing education training in the emerging field.”

SB 1247 required institutions offering degrees in California to obtain accreditation from a USDE-recognized accrediting agency. USDE recognition ensures that the accrediting agency meets outlined criteria to ensure educational quality. According to the author, because of the relatively small nature of psychoanalytic training programs, there is no USDE-recognized programmatic accreditation agency. In order to comply with the requirements of SB 1247, institutions would likely need to seek regional accreditation from the Western Association of Schools and Colleges (WASC). According to the author and supporters of this bill, WASC-accreditation is an expensive and lengthy process that is unattainable for these small, narrow nonprofit institutions. ACPE is not a USDE-recognized accrediting agency.

Psychoanalysis institutions serve students who are already licensed as clinical psychologists, licensed clinical social workers, marriage and family therapists, research psychoanalysts, nurses and physicians and surgeons.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/3/16)

Institute of Contemporary Psychoanalysis

Newport Center for Psychoanalytic Studies

Psychoanalytic Center of California

United States House of Representatives Member Ted Lieu

OPPOSITION: (Verified 8/3/16)

None received

ARGUMENTS IN SUPPORT: Supporters of this bill, psychoanalysis institutions that would likely be exempt under the bill’s provisions, believe that this bill is an important response to the BPPE’s regulatory efforts which would force these schools to undergo “the expensive and lengthy accreditation required for large undergraduate research universities”. These institutions note that the Legislature prudently passed legislation to crackdown on so-called diploma mills, for-profit, typically unaccredited institutions that offer undergraduate degrees to young students while leaving graduates saddled with high debt loads and few meaningful job prospects. These institutions note that this narrowly crafted measure provides them with the flexibility to develop innovative curriculum while protecting younger students from costly diploma mills. The institutions note that they offer degree programs to “qualified individuals that prepare them to provide the most sophisticated contemporary mental health treatment for children and adults available today” and state that the articles published by Doctor of Psychoanalysis candidates of these institutions benefit the patient population and the professional sphere through adding to the body of knowledge about the human mind and the ways in which it can be traumatized and then treated successfully.

ASSEMBLY FLOOR: 76-0, 5/19/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Wood, Rendon

NO VOTE RECORDED: Chang, Mathis, McCarty, Williams

Prepared by:

8/3/16 19:22:38

**** END ****

SENATE COMMITTEE ON EDUCATION

Senator Carol Liu, Chair

2015 - 2016 Regular

Bill No:

Subject:

SUMMARY

This bill provides a limited exemption from minimum operating standards and accreditation requirements for approval by the Bureau for Private Postsecondary Education (Bureau), to institutions that grant doctoral degrees in psychoanalysis, provided that these institutions satisfy specified conditions, including a requirement that all of the students hold master’s or doctoral degrees before enrolling in the institution.

BACKGROUND

Existing law:

1. Establishes the California Private Postsecondary Education Act of 2009 (Act) until January 1, 2017, and requires the Bureau within the Department of Consumer Affairs to, among other things, to review, investigate and approve private postsecondary institutions, programs and courses of instruction pursuant to the Act and authorizes the Bureau to take formal actions against an institution/school to ensure compliance with the Act and even seek closure of an institution/school if determined necessary. The Act also provides for specified disclosures and enrollment agreements for students, requirements for cancellations, withdrawals and refunds, and that the Bureau shall administer the Student Tuition Recovery Fund (STRF) to provide refunds to students affected by the possible closure of an institution/school. (Education Code § 94800, et seq.)
2. Provides for numerous exemptions from the Act for specific types of institutions, including, but not limited to, an institution that is accredited by the Accrediting Commission for Senior Colleges (ACSC) and Universities, Western Association of Schools and Colleges (WASC), or the Accrediting Commission for Community and Junior Colleges (ACCJC). (EC § 94874)
3. Defines “accredited” to mean an institution that is accredited by an accrediting agency recognized by the United States Department of Education (USDE).

(EC § 94813)

1. Defines an “accrediting agency” as an agency recognized by the United States Department of Education (USDE). (EC § 94814)
2. Requires the Bureau to adopt by regulation minimum operating standards for an institution to ensure that the program can achieve its objective; the facilities and instructional equipment and material are sufficient to enable the program; the administrators and faculty are qualified; the institution maintain written and relevant standards for student admissions, as well as maintains a withdrawal policy and provides refunds; gives students a document signifying the degree or diploma awarded; maintains records and standard transcripts; and, is accredited by an accrediting agency or is in the process of accreditation. (EC § 94885)
3. Requires an unaccredited institution that is approved to operate and to offer degree programs by the Bureau prior to January 1, 2015, to submit an accreditation plan to the Bureau, to obtain pre-accreditation, by July 1, 2017, to obtain accreditation, by July 1, 2020, and to comply with various student disclosures and review requirements. (EC § 94885.1)
4. Defines “approval to operate” or “approval” to mean the authorization to offer to the public and to provide postsecondary educational programs, as well as the written document issued to an institution signifying its approval to operate.

(EC § 94817)

1. Under the Medical Board of California (MBC), authorizes graduates of the Southern California Psychoanalytic Institute, the Los Angeles Psychoanalytic Society and Institute, the San Francisco Psychoanalytic Institute, the San Diego Psychoanalytic Center or institutes deemed equivalent by the MBC who have completed clinical training in psychoanalysis to engage in psychoanalysis as an adjunct to teaching, training, or research and hold themselves out to the public as psychoanalysts. (Business and Professions Code § 2529)
2. Provides that students in those institutes may engage in psychoanalysis under supervision, if the students and graduates do not hold themselves out to the public by any title or description of services incorporating the words “psychological,” “psychologist,” “psychology,” “psychometrists,” “psychometrics,” or “psychometry,” or that they do not state or imply that they are licensed to practice psychology. Authorizes those students and graduates seeking to engage in psychoanalysis to register with MBC presenting evidence of their student or graduate status. (Business and Professions Code § 2529)

ANALYSIS

1. This bill provides an exemption from minimum operating standards and accreditation requirements for approval by the Bureau for Private Postsecondary Education (Bureau), to institutions that grant doctoral degrees in psychoanalysis if and as long as, it satisfies all of the following conditions;
   1. All of the institution’s students hold master’s or doctoral degrees before

they enroll in the institution.

• 1. All of the institution’s students, other than research students regulated by

the Medical Board of California, hold a valid professional license authorizing the individual to practice psychotherapy that remains valid during their enrollment and carry current malpractice insurance in their respective fields.

• 1. The institution does not accept federal student aid.
  2. The institution is a nonprofit entity.
  3. The institution has obtained accreditation from, or has submitted a self-

study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2018.

1. Sunsets the exemption July 1, 2021

STAFF COMMENTS

1. Need for the bill. Current law requires the Bureau for Private Postsecondary Education (Bureau) to adopt by regulation minimum operating standards and imposes accreditation requirements for certain institutions. The author notes, “That the 2014 reforms of the Private Postsecondary Education Act (Act) provided certain exemptions for graduate programs primarily aimed at licensed professionals in California. However, several psychoanalysis non-profit professional postgraduate programs received a notice of noncompliance for not meeting the national accreditation requirement. Because of the relatively small nature of the training programs and their states as providers of continuing education, there is no national accreditation body for these programs.” This bill provides a limited exemption only from minimum operating standards and accreditation requirements for approval by the Bureau, specifically to institutions that grant doctoral degrees in psychoanalysis thereby allowing the institutions to continue to operate under the specified conditions.
2. California Private Postsecondary Education Act (Act). The state's program for regulation of private postsecondary and vocational education institutions has historically been plagued with problems. During the late 1980's, California developed a reputation as the "diploma mill capital of the world."

After numerous legislative attempts to remedy the laws and structure governing regulation of private postsecondary institutions, AB 48 (Portantino, Chapter 310, Statutes of 2009) was enacted to establish the California Private Postsecondary Education Act of 2009 (Act), which took effect January 1, 2010. The Act provided the regulatory framework for oversight of private postsecondary educational institutions operating with a physical presence in California.

The Act requires all unaccredited colleges in California to be approved by the Bureau, and all nationally accredited colleges to comply with numerous student protections. It also establishes prohibitions on false advertising and inappropriate recruiting. The Act requires disclosure of critical information to students such as program outlines, graduation and job placement rates, and license examination information, and ensures colleges justify those figures. The Act also guarantees

students can complete their educational objectives if their institution closes its doors while providing the Bureau with enforcement powers necessary to protect consumers.

In 2014, SB 1247 (Lieu, Chapter 840, Statutes of 2014) amended the Act to, among other things address concerns about the ongoing approval by the Bureau of unaccredited institutions offering degrees as these institutions are unlikely to be recognized by accredited institutions for purpose of transfer, or by many employers. The Act now requires degree granting institutions to be accredited by an agency recognized by the United States Department of Education (USDE) or if no programmatic accreditation is available, to seek regional accreditation by the WASC Senior College and University Commission by July 1, 2020.

1. What is accreditation? Accreditation is a baseline measure used to determine academic quality for educational or professional institutions and programs. Accrediting agencies are private organizations that establish operating standards for educational or professional institutions and programs, determine the extent to which the standards are met, and publicly announce their findings. Under federal law, the U.S. Department of Education (USDE) establishes the general standards for accreditation agencies and is required to publish a list of recognized accrediting agencies that are deemed reliable authorities on the quality of education provided by their accredited institutions. There are three basic types of accreditation:
2. Regional Accreditation: There are six USDE-recognized regional accrediting agencies. Each regional accreditor encompasses public, the vast majority of non-profit private (independent), and some for-profit postsecondary educational institutions in the region it serves. California's regional accrediting agency is separated into two commissions: the Accrediting Commission for Community and Junior Colleges (ACCJC) and the Senior College and University Commission (WASC-Sr.).
3. National Accreditation: National accreditation is not based on geography, but more focused to evaluate specific types of schools and programs. National accreditation is designed to allow nontraditional colleges (trade schools, religious schools, certain online schools) to be compared against similarly designed institutions. Different standards and categories are measured, depending on the type of institution.
4. Specialized/Programmatic Accreditation: Offered by accrediting agencies that represent specific fields of study, these agencies do not accredit entire colleges but instead accredit the programs within colleges that prepare students for the specific field or industry. In most cases, specialized accreditation alone does not enable participation in state and federal financial aid programs.

As noted, the Act requires degree granting institutions to be accredited by an agency recognized by the USDE. This bill exempts psychoanalysis non-profit professional postgraduate programs from that requirement for a limited period of time. This bill, instead, requires psychoanalysis institutions to seek accreditation from Accrediting Council for Psychoanalytic Education, by July 1, 2017. Staff notes that the Accrediting Council for Psychoanalytic Education is not a U.S. Department of Education (USDE) accrediting agency and it’s unclear if this entity is seeking recognition by the USDE. Absent the exemption provided by the provisions in this bill psychoanalytic programs will be out of compliance with the Act and would have to close. Additionally, if the Accrediting Council for Psychoanalytic Education does not obtain USDE recognition by the sunset date implemented by this bill, the psychoanalytic programs will be out of compliance with the Act at that time.

1. Bureau Sunset Review. On March 28, 2016, the Business, Professions and Economic Development Committee (BPED Committee) convened a joint hearing that included Senate Education, Assembly Committees on Higher Education and Business, Professions and Consumer Protection. The background paper for the hearing raised various issues, including, among other things, exemptions and the numerous attempts to create additional exemptions for certain institutions or programs. The background paper also notes that many unaccredited degree-granting institutions have contacted the Committees, citing opposition to the requirement to obtain accreditation.
2. Exemption solely applicable to institutions serving post-graduate students. This bill is limited to nonprofit psychoanalysis institutions that enroll students with master’s degrees or doctoral degrees, and students must hold a valid professional license to practice psychotherapy or be a research candidate in psychoanalysis registered with the Medical Board of California. The author asserts that psychoanalysis students are older, savvier students that hold advanced degrees and professional licenses. Staff notes, these students would not qualify for state financial aid programs like Cal Grant because of the post-graduate status. Additionally, in order to claim the exemption provided by the provisions in this bill an institution may not accept federal student aid dollars.
3. Psychoanalytic studies. According the Accrediting Council for Psychoanalytic Education, “psychoanalysis is a specific form of individual psychotherapy that aims to bring unconscious mental elements and processes into awareness in order to expand an individual's self-understanding, enhance adaptation in multiple spheres of functioning, alleviate symptoms of mental disorder, and facilitate character change and emotional growth.” According to the author, "beginning in the early 1990's the field of psychoanalysis began to develop within the mental health community. Several non-profit educational institutions were established to provide medical professional post-graduate, continuing education training in the emerging field.”
4. Double-referral. This bill was double-referred, having been previously heard by the Senate Committee on Business, Professions and Economic Development on June 13, 2016 and approved on a 9-0-1 vote.

SUPPORT

Institute of Contemporary Psychoanalysis

Newport Center for Psychoanalytic Studies

Psychoanalytic Center of California

OPPOSITION

None received.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2015 - 2016 Regular

Bill No: Hearing Date: June 13, 2016

Subject:

SUMMARY:

Provides an exemption for five years from minimum operating standards and accreditation requirements for approval by the Bureau for Private Postsecondary Education (BPPE), to institutions that grant doctoral degrees in psychoanalysis, if all of the institution’s students hold master’s or doctoral degrees before they enroll in the institution and if all of the institution’s students, other than research students regulated by the Medical Board of California, hold a valid professional license authorizing the individual to practice psychotherapy.

Existing law:

1. Establishes the Act January 1, 2017, and requires BPPE within the Department of Consumer Affairs to, among other things, to review, investigate and approve private postsecondary institutions, programs and courses of instruction pursuant to the Act and authorizes BPPE to take formal actions against an institution/school to ensure compliance with the Act and even seek closure of an institution/school if determined necessary. The Act also provides for specified disclosures and enrollment agreements for students, requirements for cancellations, withdrawals and refunds, and that BPPE shall administer the Student Tuition Recovery Fund (STRF) to provide refunds to students affected by the possible closure of an institution/school. (Education Code (EC) § 94800 et seq.)
2. Exempts the following from oversight by the Bureau:
3. An institution that offers solely avocational or recreational educational programs.
4. An institution offering educational programs sponsored by a bona fide trade, business, professional, or fraternal organization, solely for that organization's membership.
5. A bona fide organization, association or council that offers preapprenticeship training programs on behalf of one or more Division of Apprenticeship Standards-approved labor-management or apprenticeship programs that is not on the Eligible Training Provider List (ETPL) currently but has met requirements for placement on the list, that is on the ETPL and that has not been removed from the ETPL for failure to meet performance standards.
6. A postsecondary educational institution established, operated, and governed by the federal government or by this state or its political subdivisions.
7. An institution offering either test preparation for examinations required for admission to a postsecondary educational institution or continuing education or license examination preparation, if the institution or the program is approved, certified, or sponsored by a government agency, other than BPPE, that licenses persons in a particular profession, occupation, trade, or career field, a state-recognized professional licensing body, such as the State Bar of California, that licenses persons in a particular profession, occupation, trade, or career field or a bona fide trade, business, or professional organization
8. An institution owned, controlled, and operated and maintained by a religious organization lawfully operating as a nonprofit religious corporation whose instruction is limited to the principles of that religious organization and the diploma or degree granted is limited to evidence of completion of that education. The institution is only eligible to offer degrees and diplomas in the beliefs and practices of the church, religious denomination, or religious organization and shall not award degrees in any area of physical science. Any degree or diploma granted by an institution owned, controlled, and operated and maintained by a religious organization lawfully operating as a nonprofit religious corporation shall contain on its face, in the written description of the title of the degree being conferred, a reference to the theological or religious aspect of the degree's subject area. The degree must reflect the nature of the degree title, such as "associate of religious studies," "bachelor of religious studies," "master of divinity," or "doctor of divinity."
9. An institution that does not award degrees and that solely provides educational programs for total charges of two thousand five hundred dollars ($2,500) or less when no part of the total charges is paid from state or federal student financial aid programs.
10. A law school that is accredited by the Council of the Section of Legal Education and Admissions to the Bar of the American Bar Association or a law school or law study program that is subject to the approval, regulation, and oversight of the Committee of Bar Examiners.
11. A nonprofit public benefit corporation that is qualified under Section 501(c)(3) of the United States Internal Revenue Code, is organized specifically to provide workforce development or rehabilitation services and is accredited by an accrediting organization for workforce development or rehabilitation services recognized by the Department of Rehabilitation.
12. An institution that is accredited by the Accrediting Commission for Senior Colleges (ACSC) and Universities, Western Association of Schools and Colleges (WASC), or the Accrediting Commission for Community and Junior Colleges (ACCJC).
13. An institution that has been accredited, for at least 10 years, by an accrediting agency that is: recognized by the United States Department of Education (USDE); has operated continuously in this state for at least 25 years and has not filed for bankruptcy protection pursuant to Title 11 of the United States Code during its existence; has a cohort default rate on guaranteed student loans does not exceed 10 percent for the most recent three years, as published by the USDE; maintains a composite score of 1.5 or greater on its equity, primary reserve, and net income ratios, as provided under Section 668.172 of Title 34 of the Code of Federal Regulations; provides a pro rata refund of unearned institutional charges to students who complete 75 percent or less of the period of attendance; provides to all students the right to cancel the enrollment agreement and obtain a refund of charges paid through attendance at the second class session, or the 14th day after enrollment, whichever is later; submits to the BPPE copies of its most recent IRS Form 990, the institution's Integrated Postsecondary Education Data System Report of the USDE, and its accumulated default rate; and is incorporated and lawfully operates as a nonprofit public benefit corporation and is not managed or administered by an entity for profit.
14. Flight instruction providers or programs that provide flight instruction pursuant to Federal Aviation Administration (FAA) regulations and do not require students to enter into written or oral contracts of indebtedness and do not require or accept prepayment of instruction-related costs in excess of $2,500. (EC § 94874)
15. Also provides an exemption from the Act and oversight by BPPE for an institution that is accredited by the ACSC and WASC, or ACCJC that has been accredited by a USDE recognized accrediting agency for at least 10 years and has not been placed on probation or on monitoring or sanctioned; is headquartered in California and has operated continuously for at least 25 years; is privately held and was previously granted an approval to operate by the BPPE or the former Bureau and has not changed ownership since its last approval; has not filed for bankruptcy protection; maintains an equity ratio composite score of at least 1.5; derives at least 12.5 percent of its revenues from sources other than state or federal student assistance like Title 38 and CalGrant monies; does not have a cohort default rate over 13 percent for the most recent 3 years; has a graduation rate that exceeds 60 percent; has not been subject to any legal or regulatory actions by a state AG that resulted in monetary settlement, fines or other documented violations; provides a pro rata refund of unearned institutional charges to students who complete 75 percent or less of the period of attendance; complies with other reasonable criteria established by the California State Approving Agency for Veterans Education (CSAAVE); and verifies its exemption with BPPE. (EC § 94947)
16. Requires an institution seeking BPPE approval to operate and to offer a degree to either:
17. Be accredited by an accrediting agency recognized by USDE to offer the degree(s); or
18. Have an accreditation plan, approved by BPPE, for the institution to become fully accredited within five years of the BPPE issuance of a provisional approval to operate. An institution in this category must comply with specified student disclosure, visiting committee review and degree limitation requirements.
    (EC § 94885)
19. Requires an unaccredited institution that is approved to operate and to offer degree programs by BPPE prior to January 1, 2015, to submit an accreditation plan to BPPE, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements. (EC § 94885.1)
20. Under the Medical Board of California (MBC) authorizes graduates of the Southern California Psychoanalytic Institute, the Los Angeles Psychoanalytic Society and Institute, the San Francisco Psychoanalytic Institute, the San Diego Psychoanalytic Center or institutes deemed equivalent by MBC who have completed clinical training in psychoanalysis to engage in psychoanalysis as an adjunct to teaching, training, or research and hold themselves out to the public as psychoanalysts. Provides that students in those institutes may engage in psychoanalysis under supervision, if the students and graduates do not hold themselves out to the public by any title or description of services incorporating the words “psychological,” “psychologist,” “psychology,” “psychometrists,” “psychometrics,” or “psychometry,” or that they do not state or imply that they are licensed to practice psychology. Authorizes those students and graduates seeking to engage in psychoanalysis to register with MBC presenting evidence of their student or graduate status. (Business and Professions Code § 2529)

This bill:

1. Provides an exemption for five years from minimum operating standards and accreditation requirements for approval by the BPPE, to institutions that grant doctoral degrees in psychoanalysis, if all of the institution’s students hold master’s or doctoral degrees before they enroll in the institution and if all of the institution’s students, other than research students regulated by the Medical Board of California, hold a valid professional license authorizing the individual to practice psychotherapy.
2. Requires the institution’s students to hold a professional license throughout the period of enrollment at the institution and carry malpractice insurance in their respective fields.
3. Specifies that an institution can be exempt so long as the institution does not accept federal student aid, is a nonprofit entity and has obtained accreditation from, or has submitted a self-study application to the Accreditation Council for Psychoanalytic Education on or before July 1, 2018.

FISCAL EFFECT:

This bill is keyed “fiscal” by Legislative Counsel. According to the Assembly Committee on Appropriations analysis dated May 11, 2016, the bill will have negligible fiscal impact.

COMMENTS:

1. Purpose. The Author is the sponsor of this bill. According to the Author, the bill is an attempt to assist credible, nonprofit graduate level psychoanalysis programs that were inadvertently caught up in prior Legislative reforms targeting for-profit, low-quality, degree-granting institutions by providing a narrow exception to the accreditation requirements contained in SB 1247 for institutions offering qualified students doctoral degrees in psychoanalysis, provided that the institution seeks accreditation from the Accreditation Council for Psychoanalytic Education before July 1, 2018.
2. Background.
3. The Act and BPPE. The Bureau for Private Postsecondary Education (BPPE or Bureau) is responsible for oversight of private postsecondary educational institutions operating with a physical presence in California. Established by
   AB 48 (Portantino, Chapter 310, Statutes of 2009) after numerous legislative attempts to remedy the laws and structure governing regulation of private postsecondary institutions, the bill took effect January 1, 2010, to make many substantive changes that created a foundation for oversight and gave the BPPE enforcement tools to ensure schools comply with the law.

AB 48 established BPPE’s authority to regulate private postsecondary institutions and enforce the provisions of the new California Private Postsecondary Education Act (Act) and to respond to the major problems with the former laws governing the industry in California. The Act provides for prohibitions on false advertising and inappropriate recruiting and requires disclosure of critical information to students such as program outlines, graduation and job placement rates, and license examination information, and ensures colleges justify those figures. The Act also provides BPPE with enforcement powers necessary to protect consumers. The Act directs BPPE to:

• Create a structure that provides an appropriate level of oversight, including approval of private postsecondary educational institutions and programs;
• Establish minimum operating standards for California private postsecondary educational institutions to ensure quality education for students;
• Provide students a meaningful opportunity to have their complaints resolved;
• Ensure that private postsecondary educational institutions offer accurate information to prospective students on school and student performance; and,
• Ensure that all stakeholders have a voice and are heard in the operations and rulemaking process of BPPE.

BPPE is also tasked with actively investigating and combatting unlicensed activity, administering STRF and conducting outreach and education activities for students and private postsecondary educational institutions within the state.

1. Exemptions in the Act. The Bureau has oversight of all of the non-exempt, private postsecondary institutions located in California. AB 48 contained numerous exemptions to state-level oversight, the most notable of which is an exemption from BPPE authority and regulation under the Act granted to for-profit and nonprofit regionally accredited institutions.

The Act was amended through SB 1247 (Lieu, Chapter 840, Statutes of 2014) to prohibit an institution, beginning January 1, 2016, from claiming an exemption from the Act if the institution is approved to participate in Title 38 veterans financial aid programs. The Committees were concerned about multiple reports and hearings focused on the experience of veterans at private for-profit institutions, false and predatory advertising to veterans and the potential lack of accountability for the millions of dollars administered by the federal Veterans Administration (VA) and Department of Defense (DOD) spent at private postsecondary education institutions in California if schools are not regulated. Because neither DOD nor VA benefits originate through federal student financial aid, Title IV, money that institutions received through these programs was not counted as federal financial aid, thus not subject to a key federal regulatory requirement governing for-profit schools that no more than 90 percent of revenues come from federal financial aid.

The Bureau has verified exemptions for 617 institutions, denied exemptions for 363 institutions and is in the process of reviewing almost 90 more exemption requests. However, in order to remain eligible to continue receiving Title IV monies, a number of institutions previously verified as exempt under the Act have now sought voluntary approval by BPPE.

The exemptions in the Act, and attempts to create additional exemptions, have been an ongoing source of consideration for the Legislature. It was not until a hearing in the Senate that AB 48 was amended to include a “good schools” exemption, as institutions pushing for this exemption (based on criteria like length of operation under one owner and nonprofit status) argued that a similar recognition had been included in all legislation related to private postsecondary institution regulation since 1991 and should be continued. During the discussion surrounding SB 1247 in 2014, the Author submitted a letter to the Senate Journal requesting that the Legislature strike the exemption outlined above for WASC accredited institutions to remain exempt and asked that all exemptions provided for in the Act be thoroughly examined by the Legislature to determine the merits of their continuation. Current pending legislation seeks to clarify that law schools approved by the Committee on Bar Examiners, which were exempt from the Act but would now have to receive Bureau approval in order to receive Title 38 monies, can still receive these monies without BPPE approval. Law schools in particular have been the source of scrutiny based on high rates of student debt, misleading employment figures and low state bar passage rates.

The Act, as created by AB 48, attempted to correct many of the prior laws’ structural problems, most especially the former acts’ different standards and requirements for different categories of institutions that created complexities. The Act has one single category of institution and establishes the same standards and requirements for all of the institutions under the Bureau’s oversight. Yet many of the institutions supportive of exemptions were exempt under the prior Bureau regulatory framework and seek to continue operating as they always have: subject to oversight by accreditors and state and federal oversight agencies responsible for approving the expenditure of public monies but not the BPPE.

Licensing laws exist to protect the public from potentially harmful services rendered by unqualified businesses and individuals.  The intent of licensure is not to punish good actors or impose punitive requirements on businesses and individuals but rather to establish a baseline of licensee quality and competency and corresponding enforcement provisions for consequences of violating the regulatory framework. Professionals and businesses required to be licensed are not able to justify a lack of disciplinary action or sanctions to then skirt their licensure requirement. Exemptions in the Act may serve as an artificial measure of quality and in some cases, while the intention may have been to ensure that the Bureau’s workload is focused on those schools that require attention, may not benefit the public and provide accountability for public monies utilized at these institutions.

1. Psychoanalysis Institutions, Studies and Accreditation. According to the Accrediting Council for Psychoanalytic Education (ACPE), “psychoanalysis is a specific form of individual psychotherapy that aims to bring unconscious mental elements and processes into awareness in order to expand an individual’s self-understanding, enhance adaptation in multiple spheres of functioning, alleviate symptoms of mental disorder, and facilitate character change and emotional growth.” According to the Author, “beginning in the early 1990's the field of psychoanalysis began to develop within the mental health community. Several non-profit educational institutions were established to provide medical professional post-graduate, continuing education training in the emerging field.”

SB 1247 required institutions offering degrees in California to obtain accreditation from a USDE-recognized accrediting agency. USDE recognition ensures that the accrediting agency meets outlined criteria to ensure educational quality. According to the Author, because of the relatively small nature of psychoanalytic training programs, there is no USDE-recognized programmatic accreditation agency. In order to comply with the requirements of SB 1247, institutions would likely need to seek regional accreditation from WASC. According to the Author and supporters of this measure, WASC-accreditation is an expensive and lengthy process that is unattainable for these small, narrow nonprofit institutions. ACPE is not a USDE-recognized accrediting agency.

Psychoanalysis institutions serve students who are already licensed as clinical psychologists, licensed clinical social workers, marriage and family therapists, research psychoanalysts, nurses and physicians and surgeons.

1. Arguments in Support. Supporters of this bill, psychoanalysis institutions that would likely be exempt under the measure’s provisions, believe that this bill is an important response to the BPPE’s regulatory efforts which would force these schools to undergo “the expensive and lengthy accreditation required for large undergraduate research universities”. These institutions note that the Legislature prudently passed legislation to crackdown on so-called diploma mills, for-profit, typically unaccredited institutions that offer undergraduate degrees to young students while leaving graduates saddled with high debt loads and few meaningful job prospects. These institutions note that this narrowly crafted measure provides them with the flexibility to develop innovative curriculum while protecting younger students from costly diploma mills. The institutions note that they offer degree programs to “qualified individuals that prepare them to provide the most sophisticated contemporary mental health treatment for children and adults available today” and state that the articles published by Doctor of Psychoanalysis candidates of these institutions benefit the patient population and the professional sphere through adding to the body of knowledge about the human mind and the ways in which it can be traumatized and then treated successfully.
2. Related Legislation This Year. SB 1059 (Monning) exempts law schools accredited by the State Bar of California Committee on Bar Examiners from requirements that they be accredited by an accrediting agency recognized USDE in order to receive Title 38 veteran benefits if the institution complies with specified disclosure and compliance requirements. (Status: The bill is pending in the Assembly Committee on Higher Education.)

SB 1192 (Hill) is the sunset bill for BPPE and makes various changes to the Act intended to improve the effectiveness of BPPE and opportunities for student success, including authority for BPPE to give extensions on the timeline for unaccredited degree granting institutions to become accredited according to certain evidence provided by the institution. (Status: The bill is pending in the Assembly Committee on Higher Education.)

SB 1194 (Hill) is the sunset bill for the Board of Psychology (Board) and makes various changes to the Psychology Act and Board operations, including requiring that applicants for licensure after January 1, 2020 graduate from a college or institution of higher education that is accredited by a regional accrediting agency recognized by USDE and authorizes the Board until January 1, 2020, to accept an applicant who possesses a doctorate degree from an institution that is not accredited by an accrediting agency recognized by USDE but is approved to operate by BPPE. (Status: The bill is pending in the Assembly.)

AB 1996 (Gordon) exempts JobTrain, Inc., from the Act and BPPE oversight if it maintains its status as a nonprofit institution that is WASC accredited and does not award degrees or diplomas, and is paid from state or federal student financial aid programs for fewer than 20 percent of its students who receive vocational training. (Status: The bill is also pending before this committee on June 13, 2016.)

1. Prior Related Legislation. SB 410 (Beall, Chapter 258, Statutes of 2015) changed the definition of graduates for purposes of reporting student information as required under the Act.

AB 509 (Perea, Chapter 558, Statutes of 2015) provided an exemption from the Act and BPPE oversight for a bona fide organization, association, or council that offers preapprenticeship training programs on behalf of one or more Division of Apprenticeship Standards -approved labor-management apprenticeship programs, provided that the entity meets the requirements for the ETPL and has not been removed from the ETPL for failure to meet performance standards.

SB 1247 (Lieu, Chapter 840, Statutes of 2014) extended the operation of the Bureau until January 1, 2017; and, among other changes, set forth requirements for accreditation for institutions offering degrees.

SB 71 (Committee on Budget and Fiscal Review, Chapter 28, Statutes of 2013) enacted various budget-related items, including a provision allowing exempt institutions to voluntarily seek operating approval from the Bureau. The bill provided a temporary delay in those institutions reporting certain information on the Student Performance Fact Sheet.

SB 619 (Fuller, Chapter 309, Statutes of 2011) exempted flight instructors and flight schools that do not require students to enter into contracts of indebtedness and do not require prepayment of fees in excess of $2,500 from regulation by the Act and BPPE.

NOTE:

Double-referral to Senate Committee on Education, second.

SUPPORT AND OPPOSITION:

Support:

Institute of Contemporary Psychoanalysis

Newport Center for Psychoanalytic Studies

Psychoanalytic Center of California

United States House of Representatives Member Ted Lieu

Opposition:

None on file as of June 7, 2016.

-- END --

Date of Hearing: May 11, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1835

Author:(Holden) – As Amended Ver:April 25, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill, until January 1, 2021, exempts any institution approved by the Bureau of Private Postsecondary Education (BPPE) and that grants doctoral degrees in psychoanalysis from the requirement to be accredited by an accrediting agency recognized by the United States Department of Education (USDE), if the institution meets all of the following:

1. All students hold master’s or doctoral degrees before enrolling in the institution.
2. All students, except as specified, hold a professional license to practice psychotherapy that remains valid throughout enrollment at the institution and carry current malpractice insurance in their respective fields.
3. Does not accept federal student aid.
4. Is a nonprofit entity.
5. Has obtained accreditation by the Accreditation Council for Psychoanalytic Education (ACPE), or has submitted a self-study application to the ACPE, on or before July 1, 2018.

FISCAL EFFECT:

Negligible fiscal impact.

COMMENTS:

1. Background. The BPPE is responsible for oversight of private postsecondary educational institutions operating with a physical presence in California, pursuant to AB 48 (Portantino), Chapter 310, Statutes of 2009—the California Private Postsecondary Act of 2009. The Act requires all unaccredited colleges in California to be approved by BPPE, and all nationally accredited colleges to comply with numerous student protections.

At the time of the 2013 Sunset Review Hearings, the BPPE highlighted that California is one of few states to continue to allow unaccredited degree granting programs. The BPPE stated in 2014 that “requiring accreditation for approval to operate would allow the BPPE to focus on its mandate of consumer protection, while relying on academic experts approved by USDE to evaluate academic programs.” In response to these concerns, SB 1247 (Lieu), Chapter 840, Statutes of 2014, amended the Act to require that all degree granting programs be accredited, unless they meet at least one of the specified exemptions.

1. Purpose. This bill, sponsored by the Institute of Contemporary Psychoanalysis, exempts institutions who are approved by the BPPE and who grant doctoral degrees in psychoanalysis from accreditation by an accrediting agency recognized by the USDE. According to the author, “[This bill] provides graduate programs in psychoanalysis an exemption to the [Act] as there is currently no national accrediting body for the psychoanalyst field."

According to a letter to the BPPE from former Senator, and now Congressman, Ted Lieu, who authored SB 1247, “the purpose and design [of SB 1247] was never intended to apply to an institution such as the Institute of Contemporary Psychoanalysis (ICP).” The letter goes on to say “ICP’s standards for training far exceed the usual organizations accredited by the BPPE. … In contrast [to conventional educational settings], ICP’s admission requirements differ markedly - it requires proof of a terminal degree in the particular setting (e.g. Ph.D., Psy.D, MFT, LCSW, MD), including official school transcripts, and licensure prior to admission, something that distinguishes programs at ICP from many other degree granting institutions.”

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing:

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Rudy Salas, Chair

ABPCA Bill Id:AB 1835

Author:(Holden) – As Amended Ver:April 6, 2016

NOTE: This bill is double-referred, having been previously heard by the Assembly Committee on Higher Education on April 5, 2016 and approved on a 13-0 vote.

SUBJECT: California Private Postsecondary Education Act of 2009: minimum operating standards: exemptions.

SUMMARY: Exempts institutions who are approved by the Bureau of Private Postsecondary Education (BPPE), and who grant doctoral degrees in psychoanalysis, from accreditation by an accrediting agency recognized by the United States Department of Education (USDE).

EXISTING LAW:

1. Establishes the BPPE with the Department of Consumer Affairs (DCA) to oversee and regulate private postsecondary educational institutions. (Education Code (EDC) Section 94800, et seq.)
2. Defines “accredited” to mean an institution that is accredited by an accrediting agency recognized by the USDE. (EDC Section 94813)
3. Defines an “accrediting agency” as an agency recognized by the USDE. (EDC Section 94814).
4. Defines “approval to operate” or “approval” to mean the authorization to offer to the public and to provide postsecondary educational programs, as well as the written document issued to an institution signifying its approval to operate. (EDC Section 94817)
5. Requires the BPPE to adopt by regulation minimum operating standards for an institution to ensure that the program can achieve its objective; the facilities and instructional equipment and material are sufficient to enable the program; the administrators and faculty are qualified; the institution maintain written and relevant standards for student admissions, as well as maintains a withdrawal policy and provides refunds; gives students a document signifying the degree or diploma awarded; maintains records and standard transcripts; and, is accredited by an accrediting agency or is in the process of accreditation (EDC Section 94885)
6. Requires an unaccredited institution that is approved by the BPPE, prior to January 1, 2015, to operate and offer degree programs to submit an accreditation plan to the BPPE, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements. (EDC Section 94885.1)
7. Provides that an institution that has not been accredited by an accrediting agency that seeks to offer one or more degree programs must submit an accreditation plan to the BPPE including documentation the BPPE deems necessary to determine potential for accreditation, as specified. (EDC Section 94885.5)
8. Provides for specified exemptions from the Private Postsecondary Education Act of 2009 (Act) for specific types of institutions, including, but not limited to, those where oversight is already provided by other entities; among those exemptions is an institution owned, controlled, and operated and maintained by a religious organization lawfully operating as a nonprofit religious corporation, as specified, whose degrees granted must reflect the nature of the degree title. (EDC Section 94874).
9. Provides that institutions deemed equivalent by the Medical Board of California (MBC) who have completed clinical training in psychoanalysis may engage in psychoanalysis as an adjunct to teaching, training, or research and hold themselves out to the public as psychoanalysts; students in those institutes may engage in psychoanalysis under supervision, if the students and graduates do not hold themselves out to the public by any title or description of services incorporating the words “psychological,” “psychologist,” “psychology,” “psychometrists,” “psychometrics,” or “psychometry,” or state or imply that they are licensed to practice psychology; requires theses students and graduates to register with the MBC and present evidence of student or graduate status; provides that the MBC may suspend or revoke the exemption of those persons for unprofessional conduct, as defined. (Business and Professions Code Section 2529)

THIS BILL:

1. Exempts institutions that grant doctoral degrees in psychoanalysis from the provision of the Act that require accreditation requirements if the institution satisfies all the following requirements:
   1. The institution’s students hold master’s or doctoral degrees before enrolling in the institution;
   2. All of the institution’s students, except as specified, hold a professional license to practice psychotherapy that remains valid throughout enrollment at the institution and carry current malpractice insurance in their respective fields;
   3. The institution does not accept federal student aid;
   4. The institution is a nonprofit entity; and,
   5. The institution is accredited by the Accreditation Council for Psychoanalytic Education (ACPE), or has submitted a self-study to the ACPE, on or before July 1, 2017.
2. Provides that the exemption in number one above sunsets on January 1, 2021 unless extended.

FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel.

COMMENTS:

Purpose. This bill exempts from institutions who are approved by the BPPE and who grant doctoral degrees in psychoanalysis from accreditation by an accrediting agency recognized by the USDE. This bill is sponsored by The Institute of Contemporary Psychoanalysis. According to the author, “[This bill] provides graduate programs in psychoanalysis an exemption to the [Act] as there is currently no national accrediting body for the psychoanalyst field. The original author of SB 1247, Ted Lieu, has written a letter to clarify that the intent of his legislation never meant to affect small not-for-profit institutions offering extensive education in the discipline of psychoanalysis.”

Background. The BPPE is responsible for oversight of private postsecondary educational institutions operating with a physical presence in California. After numerous legislative attempts to remedy the laws and structure governing regulation of private postsecondary institutions, AB 48 (Portantino), Chapter 310, Statutes of 2009, made many substantive changes that created a new, solid foundation for oversight and gave the new BPPE an array of enforcement tools to ensure schools comply with the law.

The Act requires all unaccredited colleges in California to be approved by BPPE, and all nationally accredited colleges to comply with numerous student protections. The Act requires disclosure of critical information to students such as program outlines, graduation and job placement rates, and license examination information, and ensures colleges justify those figures. AB 48 contained numerous exemptions to state-level oversight, the most notable of which is an exemption from BPPE authority and regulation under the Act granted to for-profit and nonprofit regionally accredited institutions. Students attending institutions that are accredited by a regional accrediting agency other than the Western Association of Schools and Colleges (WASC), which is one of the six regional accrediting bodies recognized by the USDE, are currently eligible for very limited tuition recovery assistance in the event of a school closure, but are not eligible for any other consumer protections provided under the Act.

Requiring Accreditation. The BPPE noted in its response to the 2013 Sunset Review Background Paper prepared by the Senate Committee on Business, Professions and Economic Development staff that “requiring accreditation would provide a much higher level of consumer protection to students in the state and ensure that California students would have the option of applying for federal financial aid. Additionally, by requiring accreditation for approval to operate in California, the state will save money by not forcing the [BPPE] to act in the place of an accrediting body for unaccredited institutions.”

At the time of the 2013 Sunset Review Hearings, the BPPE highlighted that California is one of few states to continue to allow unaccredited degree granting programs, with approximately 140 approved institutions offering unaccredited degrees. The BPPE noted that it was working to evaluate the approvals granted to unaccredited schools offering degrees and that the end result of the BPPE’s analysis often leads to denial upon renewal or approval revocation. The BPPE stated in 2014 that “requiring accreditation for approval to operate would allow the BPPE to focus on its mandate of consumer protection, while relying on academic experts approved by USDE to evaluate academic programs.”

In response to these concerns, and as a means of better serving students while aiming to decrease the BPPE’s significant workload associated with reviewing unaccredited degree granting institutions, SB 1247 (Lieu), Chapter 840, Statutes of 2014 amended the Act to require that all degree granting programs be accredited, unless they meet at least one of the specified exemptions in the EDC.

According to a letter to the BPPE from former Senator, and now Congressman, Ted Lieu, who authored SB 1247, “the purpose and design [of SB 1247] was never intended to apply to an institution such as the Institute of Contemporary Psychoanalysis (ICP).” The letter goes on to say “ICP’s standards for training far exceed the usual organizations accredited by the BPPE. … In contrast [to conventional educational settings], ICP’s admission requirements differ markedly - it requires proof of a terminal degree in the particular setting (e.g. Ph.D., Psy.D, MFT, LCSW, MD), including official school transcripts, and licensure prior to admission, something that distinguishes programs at ICP from many other degree granting institutions.”

Psychoanalytic studies. According to the ACPE, “psychoanalysis is a specific form of individual psychotherapy that aims to bring unconscious mental elements and processes into awareness in order to expand an individual’s self-understanding, enhance adaptation in multiple spheres of functioning, alleviate symptoms of mental disorders and facilitate character change and emotional growth.”

According to the author, “Beginning in the 1990s, the field of psychoanalysis began to develop within the mental health community. Several non-profit educational institutions were established to provide medical professional post-graduate, continuing education training in the emerging field. Because of the relatively small nature of the training programs and their status as providers of continuing education, there is no national accreditation body for these programs.”

In 1991, both the BPPE and the MBC approved psychoanalysis training programs as valid postsecondary, graduate training programs for licensed professionals in mental health services. According to the author, these accreditations have never been contested and remained valid until the 2014 reforms enacted by SB 1247.

SB 1247 required institutions to seek accreditation from a USDE-recognized accrediting agency, or if no programmatic accreditation is available, to seek regional accreditation by the WASC Senior College and University Commission, which is a lengthy and costly process that exceeds the resources of these small, non-profit psychoanalysis programs. This bill, instead, requires institutions to seek accreditation from ACPE by July 1, 2017. It should be noted that ACPE is not a USDE recognized accrediting agency, nor is it clear if ACPE is seeking recognition by the USDE. If these psychoanalytic programs are not exempted as a result of this bill, or ACPE does not obtain USDE recognition by the sunset date implemented by this bill, the psychoanalytic programs will have to close.

BPPE Sunset Review. The issue of unaccredited degree granting programs is raised in the BPPE 2015 Sunset Review Report, prepared by the Senate Committee on Business, Professions and Economic Development and the Assembly Committee on Business and Professions (Committees). The report notes that many unaccredited degree-granting institutions have contacted the Committees, citing opposition to the requirement to obtain accreditation. The author may wish to raise this issue through the 2016 Sunset Review process.

Current Related Legislation. SB 1192 (Hill) of the current legislative session addresses several issues, including the effects of SB 1247 on institutions under the jurisdiction of the BPPE, raised during the sunset hearing for BPPE on March 28, 2016. NOTE: This bill is pending in the Senate Committee on Education.

Prior Related Legislation. SB 1247 (Lieu), Chapter 840, Statutes of 2014 amended the Act by requiring accreditation for degree-granting institutions and changing statutory eligibility requirements for the Student Tuition Recovery Fund (Fund), among other things.

ARGUMENTS IN SUPPORT:

The Institute of Contemporary Psychoanalysis writes in support, “Without [this bill], ICP would be unable to confer the degree of Doctor of Psychoanalysis, which we have been doing at the behest of the California Department of Education in the course of their site visit at our inception in 1991. Our candidates are requires, in order to graduate, to write a thesis that makes a significant contribution to the field of psychoanalysis. These articles are often published in national and international journals. They benefit the patient population and the professional sphere through adding to the body of knowledge about the human mind and in the ways in which it can be traumatized and then treated successfully.”

The Psychoanalytic Center of California writes in support, “[This bill] address the [BPPE]’s decision to broadly apply regulatory and target institutions outside the scope of the 2014 reforms to the [Act] by providing a narrow exception for graduate institutions that exclusively provide education to licensed professionals, already holding a masters or doctoral degree, and that accept no federal student aid. This narrowly crafted measure provides these institutions the flexibility to develop curriculum while protecting younger students from costly diploma mills.”

The Newport Center for Psychoanalytic Studies (NPI) writes in support, “Institutions like NPI face a fundamentally impossible task in obtaining [USDE] sanctioned accreditation, despite the unquestioned legitimacy of the education we provide. All of our candidate students are already licensed practitioners, and the do not have a vocational outcome. Because NPI offers graduate degrees at the doctoral level, they are also beyond the scope of the national accreditors. The regional accreditors also do not offer a practically available route to accreditations. Tiny non-profit institutions like NPI cannot afford or implement the large, expensive bureaucratic structures and processes required to prosecute let alone obtain regional accreditation. Additionally, our student cohorts are too small for regional accreditation consideration.”

The Los Angeles Institute and Society for Psychoanalytic Studies (LAISPS) writes in support, “[As the BPPE] adopted regulations to implement the 2014 reforms, the [BPPE] has broadly applied [SB 1247] to specialized graduate programs for professionals, requiring these programs to undergo the expensive and lengthy accreditation required for large undergraduate research universities. … Although LAISPS has already applied for and received an Exemption from the BPPE, we strongly support [this bill].”

ARGUMENTS IN OPPOSITION:

None on file.

IMPLEMENTATION ISSUES:

The process of obtaining accreditation from the ACPE may require more time than the six months this bill allocates. The author should amend the bill to allow these psychoanalysis programs more time to become accredited.

AMENDMENTS:

To address the implementation consideration above, the author should amend the bill as follows:

(5) The institution has obtained accreditation from, or has submitted a self-study application to, the Accreditation Council for Psychoanalytic Education on or before July 1, 2017.2018.

REGISTERED SUPPORT:

Institute of Contemporary Psychoanalysis (sponsor)

Psychoanalytic Center of California

The Newport Center for Psychoanalytic Studies

The Los Angeles Institute and Society for Psychoanalytic Studies

REGISTERED OPPOSITION:

None on file.

Analysis Prepared by: Gabby Nepomuceno / B. & P. / (916) 319-3301

Date of Hearing: April 5, 2016

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 1835 (

Author:Holden) – As Amended Ver:March 28, 2016

[Note: This bill is double referred to the Assembly Business and Professions Committee and will be heard as it relates to issues under its jurisdiction.]

SUBJECT: California Private Postsecondary Education Act of 2009: exemptions

SUMMARY: Provides an exemption to the requirement for minimum operating standards and accreditation for an institution approved by the Bureau for Private Postsecondary Education (BPPE) to offer psychoanalysis doctoral degrees. Specifically, this bill:

1. Provides an exemption for institutions granting doctoral degrees in psychoanalysis  from existing law that requires minimum operating standards and accreditation of degree-granting programs; provided:
   1. The institution enrolls only students holding a masters degrees or higher;
   2. The institution enrolls only students holding a valid professional license to practice psychotherapy and that license remains valid throughout their tenures at the institution and they carry current malpractice insurance in their field;
   3. The institution does not accept federal student aid;
   4. The institution is a nonprofit entity; and,
   5. The institution has obtained accreditation from or has submitted the self-study application to the Accreditation Council for Psychoanalytic Education on or before July 1, 2018.
2. Sunsets the provisions of this bill on January 1, 2021.

EXISTING LAW:

1. Establishes the BPPE, under the California Private Postsecondary Education Act (Act), until January 1, 2017; and, provides for the oversight and regulation of private postsecondary educational institutions (institutions) to ensure protection of the public and students.
2. Requires an institution seeking BPPE approval to operate and to offer a degree to either:
   1. Be accredited by an accrediting agency recognized by the United States Department of Education (USDE) to offer the degree(s); or
   2. Have an accreditation plan, approved by BPPE, for the institution to become fully accredited within five years of the BPPE issuance of a provisional approval to operate. An institution in this category must comply with specified student disclosure, visiting committee review and degree limitation requirements.
3. Requires an unaccredited institution that is approved to operate and to offer degree programs by BPPE prior to January 1, 2015, to submit an accreditation plan to BPPE, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements.

FISCAL EFFECT: Unknown.

COMMENTS: Committee amendment. The author has agreed to accept the following amendment, consistent with the author's stated intent, to provide that these institutions are exempt only from the accreditation requirements of the minimum operating standards. The scope of the analysis relates to the bill as it will be amended, and institutions would be required to meet all other minimum operating standards.

94885.2. (a) Notwithstanding any other law, an institution that grants doctoral degrees in psychoanalysis shall not be subject to Section 94885(b) or 94885.1 if, and as long as, it satisfies all of the following conditions:

Background. According to BPPE, California is one of few states to continue to allow unaccredited degree granting programs. This issue was raised during the 2013 Sunset Review of the BPPE; according to BPPE, “unaccredited degree-granting postsecondary educational institutions are a global concern. Students often choose unaccredited institutions because they are usually less expensive and frequently provide a degree with less rigorous work on the part of the student. While some students may be aware of the possible issues associated with attending an unaccredited institution and remain complacent throughout the process, other students, often from developing countries, enter unaccredited programs simply because they do not understand the difference between approval and accreditation. Credits and degrees earned at unaccredited institutions are unlikely to be recognized by licensing entities, accredited institutions for purposes of transfer, or many employers. So, while the initial cost of the educational program may be less than that of an accredited institution, the potential that the degree may not provide the consumer the anticipated benefits is high.”

According to BPPE, accreditation is the accepted standard for educational degrees. Accrediting bodies, as pointed out in a 2013 report issued by the Legislative Analyst’s Office’s, are good at assessing the quality of educational programs and gathering knowledgeable subject matter experts to assess content, rigor, currency, and delivery of educational programs. They have also been good at keeping up with emerging trends in education and incorporating them into their reviews. BPPE specifically noted in its response to the 2013 Sunset Review that “requiring accreditation would provide a much higher level of consumer protection to students in the state and ensure that California students would have the option of applying for federal financial aid. Additionally, by requiring accreditation for approval to operate in California, the state will save money by not forcing the Bureau to act in the place of an accrediting body for unaccredited institutions.”

In response to these concerns and as a means of better serving students while aiming to decrease the Bureau’s significant workload associated with reviewing unaccredited degree granting institutions, SB 1247 (Lieu), Chapter 840, Statutes of 2014, amended the Act to require that degree granting programs be accredited by an accrediting agency recognized by the United States Department of Education (USDE). Institutions offering a degree that seek BPPE approval are now required to either be accredited by an accrediting agency recognized by the USDE to offer the degree(s) or have an accreditation plan, approved by BPPE, for the institution to become fully accredited within five years of the BPPE issuance of a provisional approval to operate. SB 1247 also outlined a process for institutions that are currently approved by BPPE and offer degrees to submit an accreditation plan to the Bureau by July 1, 2015, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements.

According to BPPE, as of August 1, 2015, there are approximately 107 unaccredited institutions offering degrees that are approved by the Bureau or have applied for approval. These 107 institutions submitted plans to the Bureau outlining how they will achieve accreditation by July 1, 2020. BPPE is currently in the process of training staff to organize site visits to verify that progress is being made toward accreditation.

Purpose of this bill. According to the author, AB 1835 is attempting to assist credible, nonprofit graduate level psychoanalysis programs that were inadvertently caught up in the reforms targeting for-profit, low-quality, degree-granting institutions. AB 1835 will provide a narrow exception to the accreditation requirements contained in SB 1247 for institutions offering qualified students doctoral degrees in psychoanalysis, provided that the institution seeks accreditation from the Accreditation Council for Psychoanalytic Education before July 1, 2018; this exemption would sunset on January 1, 2021.

Background on psychoanalytic studies. This bill is limited to nonprofit institutions granting doctoral degrees in psychoanalysis.  According to the Accrediting Council for Psychoanalytic Education (ACPE), "psychoanalysis is a specific form of individual psychotherapy that aims to bring unconscious mental elements and processes into awareness in order to expand an individual’s self-understanding, enhance adaptation in multiple spheres of functioning, alleviate symptoms of mental disorder, and facilitate character change and emotional growth." According to the author, "beginning in the early 1990's the field of psychoanalysis began to develop within the mental health community. Several non-profit educational institutions were established to provide medical professional post-graduate, continuing education training in the emerging field."

Eligible students. This bill is limited to nonprofit psychoanalysis institutions that enroll students with masters degrees or higher, and students must hold a valid professional license to practice psychotherapy. The term "valid professional license" is not explicitly defined in the bill. Further, committee staff understands that the practice of psychotherapy is not explicitly regulated in California. According to information provided by the author, psychoanalysis institutions serve students licensed as Clinical Psychologists, Licensed Clinical Social Workers, Marriage and Family Therapists, Research Psychoanalysts, Medical Doctors, and nurses. The author may wish to clarify that students must hold a professional license in one of these fields of licensure.

Background on psychoanalytic accreditation. This bill would require institutions to seek accreditation from the ACPE by July 1, 2018. SB 1247 required institutions offering degrees in California to obtain accreditation from a USDE-recognized accrediting agency. USDE recognition ensures that the accrediting agency meets outlined criteria to ensure educational quality. According to the author, because of the relatively small nature of psychoanalytic training programs, there is no USDE-recognized programmatic accreditation agency. In order to comply with the requirements of SB 1247, institutions would likely need to seek regional accreditation by the WASC-Senior College and University Commission. According to the author and supporters of this measure, WASC-accreditation is an expensive and lengthy process that is unattainable for these small, narrow nonprofit institutions. ACPE is not a USDE-recognized accrediting agency; Committee staff was unable to determine if ACPE is seeking USDE-recognition. If ACPE does not gain USDE-recognition by the sunset date contained in this bill, additional legislative action may be necessary.

BPPE Sunset Review. BPPE is currently undergoing the Sunset Review process. The issue of unaccredited degree granting programs is raised in the BPPE Sunset Review report, prepared by committee staff. The report notes that many unaccredited degree-granting institutions have contacted the Committees, citing opposition to the requirement to obtain accreditation. The author and committee may wish to raise this issue through the 2016 Sunset Review process.

REGISTERED SUPPORT / OPPOSITION:

Support

Institute of Contemporary Psychoanalysis

Los Angeles Institute and Society for Psychoanalytic Studies

Newport Center for Psychoanalytic Studies

Psychoanalytic Center of California

Opposition

None on File

Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960