DOCUMENT RESUME ED 312 972 HE 023 034 TITLE State Oversight

DOCUMENT RESUME

ED 312 972 HE 023 034

TITLE State Oversight of Postsecondary Education. Three Reports on California's Licensure of Private Institutions and Reliance on Non-Governmental Accreditation. Commission Report 89-21. INSTITUTION California State Postsecondary Education Commission, Sacramento. PUB DATE Jun 89 NOTE 202p. AVAILABLE FROM Publications Office, California Postsecondary Education Commission, Third Floor, 1020 Twelfth Street, Sacramento, CA 95814-3985 (free). PUB TYPE Reports - Descriptive (141)

EDRS PRICE MF01/PC09 Plus Postage. DESCRIPTORS Academic Standards; *Accreditation (Institutions); *Certification; Educational Planning; Educational Policy; Educational Quality; Higher Education; *Private Colleges; *Public Policy; *Quality Control; State Action; State Legislation; *State Standards; Statewide Planning IDENTIFIERS *California; Diploma Mills

ABSTRACT Three reports on the state's licensure of private institutions and reliance on non-governmental accreditation are presented. They include: (1) Recommendations for Revising the Private Postsecondary Education Act of 1977 (the Private Postsecondary Education enterprise, findings of the California Postsecondary Education Commission's two previous reports, and a policy framework for state oversight of private postsecondary education); (2) The State's Reliance on ?ion- Governmental Accreditation (findings and policy guidelines, impetus for the study, nature and limitations of accreditation, state reliance on accreditation, and state oversight and non-governmental accreditation); and (3) Protecting the Integrity of California Degrees: The Role of California's Postsecondary Education Act of 1977 in Educational Quality Control (findings, origins of today's law, importance of the law, and implementation of the law). Tables are included. Contains 68 references. (SM)

* Reproductions supplied by EDRS are the best that can be made * * from the original document. * CALIFORNIA POSTSECONDARY EDUCATION COMMISSION

THE California Postsecondary Education Commis- Functions of the Commission sion is a citizen board established in 1974 by the Leg- The Commission is charged by the Legislature and islature and Governor to coordinate the efforts of r Governor to "assure the effective utilization of public California's colleges and universities and to provide postsecondary education resources, thereby eliminat- independent, non-partisan policy analysis and recom- ing waste and unnecessary duplication, and to pro- mendations to the Governor and Legislature. mote diversity, innovation, and responsiveness to student and societal needs." Members of the Commission To this end, the Commission conducts independent The Commission consists of 15 members. Nine rep- reviews of matters affecting the 2,600 institutions of resent the general public, with three each appointed postsecondary education in California, including com- for six-year terms by the Governor, the Senate Rules munity colleges, four-year colleges, universities, and Committee, and the Speaker of the Assembly. The professional and occupational schools. other six represent the major segments of postsecondary education in California. As an advisory planning and coordinating body, the Commission does not administer or govern any insti- As of April 1989, the Commissioners representing tutions, nor does it approve, authorize, or accredit the general public are: any of them. Instetd, it cooperates with other State agencies and non-governmental groups that perform Mim Andelson, Los Angeles; these functions, while operating as an independent C. Thomas Dean, Long Beach; board with its own staff and its own specific duties of Henry Der, San Francisco; evaluation, coordination, and planning, Seymour M. Farber, M.D., San Francisco; Helen Z. Hansen, Long Beach, Operation of the Commission Lowell J. Paige, El Macero; Vice Chair; Cruz Reynoso, Los Angeles; The Commission holds regular meetings throughout Sharon N. Skog, Palo Alto. Chair; and the year at which it debates and takes action on staff studies and takes positions on proposed legislation Stephen P. Teale, M.D., Modesto. affecting education beyond the high school in Califor- nia. By law, the Commission's meetings are open to Representatives of the segments are: the public. Requests to speak at a meeting may be Yori Wada, San Francisco; appointed by the Regents made by writing the Commission in advance or by of the University of California; submitting a request prior to the start of the meeting. Theodore J. Saenger, San Francisco; appointed by The Commission's day-to-day work is carried out by the Trustees of the California State University; its staff in Sacramento, under the guidance of its ex- John F. Parkhurst, Folsom; appointed by the Board ecutive director, Kenneth B. O'Brien, who is appoint- of Governors of the California Community Colleges; ed by the Commission. Harry Wugalter, Thousand Oaks; appointed by the The Commission publishes and distributes without Council for Private Postsecondary Educational Insti- charge some 40 to 50 reports each year on major is- tutions ; sues confronting California postsecondary education. Recent reports are listed on the back cover. Francis Laufenberg, Orange; appointed by the Cali- fornia State Board of Education; and Further information about the Commission, its meetings, its staff, and its publications may be obtained James B. Jamieson, San Luis Obispo; appointed by from the Commission cffices at 1020 Twelfth Street, the Governor from nominees proposed by California's Third Floor, Sacramento, CA 98514-3985; telephone independent colleges and universities. (916) 445-7933.

J STATE OVERSIGHT OF POSTSECONDARY EDUCATION

Three Reports on California's Licensure of Private Institutions and Reliance on Non-Governmental Accreditation

POSTSECONDARY

m e Z c C) 0 > Li. -i -J 0 Z CALIFORNIA POSTSECONDARY EDUCATION COMMISSIONt.) Third Floor .1020 Twelfth Street *Sacramento, Caliturnia 95814-3985 0COMMISSION0

4 COMMISSION REPORT 89-21 PUBLISHED JUNE 1989

Reprinting Commission Report 89-13, published March 1989: and Commission Reports 89-17 Ind 89-18. published April 1989. This report, like other publications of the California Postsecondary Education Commission, is not copyrighted.It may be reproduced in the public interest, but proper attribution to Report 89-21 of the California Postsecondary Education Commission is requested Contents

Recommendations for Revising the Private Postsecondary Education Act of 1977

1. The Private Postsecondary Education Enterprise 1

2. Findings of the Commission's Two Previous Reports 7 3. A Policy Framework for State Oversight of Private Postsecondary Education 13

Bibliography 15

The State's Relianceon Non-Governmental Accreditation

1. Findings and Policy Guidelines 1

2. Impetus for the Study 5

3. Nature and Limits of Accreditacion 9

4. State Reliance on Accreditation 25

5. State Oversight and Non-Governmental Accreditation 31

Appendices 41

References 61

Protecting the Integrity of California Degrees

1. Findings i

2. Origins of Today's Law 1

3. Importance of the Law 19

4. Implementation of the Law 37

5. Conclusions 55

Appendices 61

References 99

b RECOMMENDATIONS FOR REVISING THE PRIVATE POSTSECONDARY EDUCATION ACT OF 1977

ORNIA POSTSECONDARY UCATION i°"""i COMMISSION . . .. J 4 0 IJ 2 0 COMMISSION 0

a Executive Summary

This report is the thi,-;.1 in a series of related Commis- sion reports on the subject of California State oversight of privat? postsecondary education. It offers a summary of the previous two reports -- The State's Reliance on Non-Governmental Accreditation, and Protecting the Integrity of California Degrees -- and concludes with a presentation of the goals that Cali- fornia should seek to accomplish in its oversight of private postsecondary education and recommendations about steps to accomplish these goalsIt is organized into three parts as follows: Part One on pages 1-6 provides a brief description of California's private postsecondary educational enterprise and the licensure and oversight process used by the State for it. Part Two on pages 7-12 summarizes the major findings of the two earliuer reports and the fundamental conclusions to be drawn from them. Part Three on pagers 13-14 offers a policy framework for thinking about what the State should seek to accomplish through oversight of private postsecondary education and concludes with eight recommendations to the Governor and the Legis- lature about changes in the law to accomplish these goals, including abolition of the current Council for Private Postsecondary Educational Institutions and its replacement with a regulatory body to provide the leadership, planning, and oversight needed to maintain and develop a strong private sector of California's postsecondary education community The Commission adopted this report at its meeting on April 17, 1989. on recommendation of its Policy Evaluation Committee Additional copies of the report may be obtained from the Library of the Com- mission at (916) 322-8031Questions about the substance of the report ma.be directed to Jane V Wellman, the associate director of the Commission, at (916) 322-8017

3 RECOMMENDATIONS FOR REVISING THE PRIVATE POSTSECONDARY EDUCATION ACT OF 1977

A Report to the Legislature and Governor on Needed Improvements in State Oversight of Privately Supported Postsecondary Education

POSTSECONDARY ( m Z 0 1r n O >

1 Lh. 0 Z CALIFORNIA POSTSECONDARY EDUCATION COMMISSIONU Third Floor1020 Twelfth StreetSacramento, California 95814-3985 0 COMMISSION 0 COMMISSION REPORT 89-18 PUBLISHED APRIL 1989

This report, like other publications of the California Postsecondary Education Commission, is not copyrighted. It may be reproduced in the public interest, but proper attribution to Report 89-18 of the California Postsecondary Education Commission is requested.

10 Contents

1. The Private Postsecondary Education Enterprise 1

The Landscape of Private Postsecondary Education 1

Different Types of Private Postsecondary Education Institutions 1

The State's Licensure and Review Process 4

Funding and Organization of State Review 4

2. Findings of the Commission's Two Previous Reports 7

California's Reliance on Accreditation 7

Protecting the Integrity of California Degrees 8

Conclusions 10

3. A Policy Framework for State Oversight of Private Postsecondary Education 13

State Policy Goals 13

Recommendations 13

Bibliography 15 Displays

1. State Oversight of Postsecondary Education Institutions in California 2

2. Organization of the Private Postsecondary Education Division, July 1988 6

3. Institutional Accrediting Agencies Operating in California and Number of California's Private Institutions Accredited by Them 7

12 The Private Postsecondary Educational Enterprise

THIS report is the last in a series of three related lation from the rest of the postsecondary education- Commission reports on the subject of California al community, as it is the only component of post- State oversight of private postsecondary education. secondary education to remain under the aegis of the State Superintendent of Public Instruction, The previous two reports - The State's Reliance on whereas the other postsecondary education sectors Non-Governmental Accreditation( March 1989), and have their own independent governing and regula- Protecting the Integrity of California Degrees (April tory boaris. 1989), -- were prepared in response to legislation that di -ected the Commission in review and comment on the State's oversight of private postsecon- Size and scope dary education, both in its reliance on non-governmental accreditation and in the administration If It is estimated that approximately 3,000 privately the 1977 Private Postsecondary Education Act. supported institutions of postsecondary education are currently operating in California. This number This third report builds on the findings of the previ- far exceeds that of publicly supported institutions ous two, offers summary conclusions from them, and (of which there are 536, including regional occupa- concludes with a presentation of the goals ths.t Cali- tional centers and adult schools), although larger fornia should seek to accomplish in its over .fight of numbers of students are educated in public institu- private postsecondary education and recommenda- tionsPublic degreegranting institutions enroll tions about steps to accomplish these goals.It is over 1.5 million students alone -- the majority of organized into three parts as follows: them in community colleges.Data on enrollment This part provides a brief description of Califor- in privately supported institutions is scattered and nia's private postsecondary educational enter- incomplete, since California requires only public prise and the licensure and oversight process institutions to report these facts annually; but used by the State for it. nearly a million students probably attend private vocational schools, and a much smaller number at- Part Two summarizes the major findings of the tend degree-granting institutions. This means that two previous reports and the fundamental con- the private postsecondary sector is second only in clusions to be drawn from them. s..e to the community colleges. Part Three offers a policy framework for thinking about what the State should seek to accomplish Diversity of institutions through oversight of private postsecondary education and concludes with eight recommenda- Within the private sector, there is an enormous ditions to the Governor and the Legislature about versity of types of institutions, degrees, and educa- changes in the law to accomplish these goals tional offerings, as well as of students served. The institutions range from regionally accredited degree-granting non-profit institutions such as those in the Association of Independent California Col- The landscape of private leges and Universities Nica:), and accredited non- postsecondary education degree granting vocational institutions that resem- ble the adult vocational education component of the California's private postsecondary educational en- community colleges, to the non-accredited sector terprise is a large, complex, and diverse part of with its extensive range of job-oriented certificate postsecondary education.It is also substantially and dipioma programs. Display 1 on page 2 depicts separate in governance, oversight, and State regu- the )eganization of State oversight of private post-

1._; 1 DISPLAY 1 State Oversight of Postsecondary Education Institutions inCalifornia

PUBLIC INSTITUTIONS PRIVATE INSTITUTIONS ., UNIVERSITY CALIFORNIA CALIFORNIA SUPERINTENDENT DEPARTMENT OF STATE COMMUNITY OF PUBLIC OF CONSUMER CALIFORNIA UNIVERSITY COLLEGES INSTRUCTION AFFAIRS REGENTS TRUSTEES BOARD OF GOVERNORS 330 ADULT BOARD OF 1 1 1 SCHOOLS MEDICAL BOARD OF QUALITY II I 9 19 70 COSMETOLOGY ASSURANCE CAMPUSES CAMPUSES DISTRICTS 70 266 COMMITTEE REGIONAL ON OCCUPATIONAL ACUPUNCTURE 1 CENTERS 18 106 BOARD OF COLLEGES PRIVATE BARBER BOARD OF POSTSECONDARY EXAMINERS VOCATIONAL EDUCAIION 13 NURSE AND HASTINGS CALIFORNIA DIVISION PSYCHIATRIC COLLEGE OF MARITIME TECHNICIAN EXAMINERS THE LAW ACADEMY LICENSED 70 ACCREDITED NON-ACCREDITED r 2,151 I 513 I Institutions Institutions

DEGREE-GRANTING) VOCATIONAL VOCATIONAL I 1 1 I 1 1 1 I 1 1 1

316 E L-1 1,732 239 CAREEI INSTITUTIONS HOSPITALS OTHER APPROVED OUT.OF.STATE EDU- INCALIFORNIA STATE NON. CATION AGENCY DEGREE DEGREE GRANTING LICENSE AND FEDERAL AVIATION AGENCY

APPROVED AUTHORIZED THEOLOGICAL

EXEMPT INSTITUTIONS

NONPROFIT IN-SERVICE AVOCATIONAL FEDERAL EDUCATION AND RECREATIONAL RELIGIOUS INSTITUTIONS FOR BUSINESS INSTITUTIONS EDUCATION FOR MEMBERs MFMRFRS UNKNOWN UNKNOWN ESTIMATED 87 UNKNOWN

Source: Adapted from California Postsecondary Education Commission, March 198F. p 2.

14 2 secondary education and shows the configuration of 3Approved institutions:Under the law, non-ac- institutional types that fall into each category. The credited institutions can have either of two statuses following paragraphs attempt to explain what the -- approvedorauthorized.An institution that is terms in that display mean. approvedby the State has to meet standards for curricula and student achievement that are "comparable" to accreditation. State "approval" is generally considered to be a step toward achieving non- Different types of private governmental accreditation and in fact is a require- postsecondary education institutions ment for institutions seeking accreditation by the Western Association of Schools and Colleges -- Cali- The law governing private postsecondary education fornia's regional accrediting association -- but Cali- in California is complex and its provisions some- fornia does not require that an institution must what confusing -- both within the educational com- evolve from approved to accredited status. The Su- munity and outside of it.Under the Private Post- perintendent of Public Instruction may award ap- secondary Education Act of 1977, all private insti- proval for a maximum of three years. Institutions tutions must be authorized or licensed to operate by that do not meet standards for full approval may re- the State unless they are specifically exempted ceive candidate status for a period not to exceed two from its provisions. (Both the termsauthorizedand years, and they may renew this status only one licenseare used in the law, butlicenseis not de- time. fined.) The State agency responsible for this authorization or licensure in most cases is the Private Since 1984, Postsecondary Education Division in the State De- 4Authorized colleges and universities: by the partment of Education.Unlike some states that colleges and universities that areauthorized merely "register" institutions without ever evalu- State wst meet standards that include all of the ating them, California requires a review and con- following. tinued oversight as a condition of authorization. Institutional objectives; The different forms of review form the basis for six Administrative methods; different categories of degree-granting institutions Curriculum. and four categories of vocational schools, as follows: Instruction; Faculty, including their qualifications; Degree-granting institution.; Physical facilities; Administrative personnel; 1. Accredited in-state institutions:California-based institutions that are accredited by agencies recog- Procedures for keeping educational records: nized by the U.S. Secretary of Education are ac- Tuition, fee and refund schedules; cepted without further review or oversight if they Admissions standards; file with the Private Postsecondary Education Divi- Scholastic and graduation requirements; sion an annual affidavit certifying their accreditation. Degrees offered; and Financial stability.

2.Out-of-state accredited instztutionsCalifornia does not rely on accreditation in lieu of State licen- 5Authorized schools of theologyPrior to 1984, sure review for accredited institutions that operate authorized institutions had to prove only that the in the State but are headquartered out of state. For documents they submitted for review were truthful these institutions, the law requires that the Private and accurate, including a statement that they had Postsecondary Education Division conduct a licen- assets of at least $50,000 available for the purposes sure review that is based on standards employed by of education. Today, only schools of theology may the nation's six regional accrediting associations. be authorized if they meet that standard and if

1 .; 3 The Superintendent of Public Insti uction grants stances when, because of legislation enacted in authorization to colleges, universities, and schools 1988, the Private Postsecondary Education Divi- of theology for five-year periods, and the law allows sion may investigate and, in certain circumstances, institutions to operate with "conditional" authori- lift their license. zation for periods of between one and five years.If the Superintendent finds that an institution fails to 4 Approved institutions Non-accredited vocation- meet a standard for authorization, he must put the al institutions are approved by the Private Postsec- institutirm on probation and identify what its de- ondary Education Division if the institutions com- fects are and what specific steps it needs to take to ply with several minimum criteria, most of which eliminate the problem.Institution:: that fail to are not related to the quality and content of the meet the conditions for removal of probation can educational program. Provisional approval status have their authorization removed. may be granted for one year, and may not be extended beyond that year.If the Division does not 6. Religiously exempt institutions:Institutions act within 30 days of receipt of the institution's ap- may declare themselves to offer instruction exclu- plication, the institution receives provisional ap- sively in areas of religion and thus exempt them- proval automatically selves completely from State licensure upon application to do so.

Private vocational schools The State's licensure and review process The more than 1,800 private non-degree granting When a degree-granting postsecondary institution vocational institutions in California are licensed to wishes to operate in the State of California, it must operate under one of four different categories: determine the aegis under which it chooses to do so: whether it will seek accreditation from a recog- 1. Private teaching hospitals: These hospitals are nized accrediting agency, be licensed to operate by licensed to award diplomas under the provision of the State, or claim a religious exemption.If it the Health and Safety Code, with the State Depart- chooses to submit an application for State licen- ment of Education having no monitoring respon- sure, the application must show whether it is ap- sibilities for them. plying to be authorized or approved and be accompanied by a check covering the costs of the applica- 2. Licensed vocational schools: Approximately 400 tion process. institutions are currently licensed and monitored The State's review processes for approved and au- by governmental agencies other than the State De- thorized degree-granting institutions is similar, al- partment of Education.Selected private schools. though the standards used in the process differ as such as cosmetology and barber colleges. are licen- noted above The pi ocess involves the Private Post- sed by professional boards in the State Department secondary Education Division sending a team to of Consumer Affairs, while flight instruction visit the applicant institution. examine it in light of schools are licensed by the Federal Aviation Ad- those standards, and recommend whether or not it ministration. should be authorized or approved to grant degrees. The director of the Division then reviews the rec- 3. Accredited institutionsAccreditation by ra- ommendation of the visiting team and, in the case tional accrediting associations recognized by the of a unanimous recommendation for or against. U.S. Secretary of Education -- such as the National submits the applicationto the Superintendent of Association of Trade and Technical Schools c NATTS) Public Instruction for final authorization or appro- and the Association of Independent Schools and valIn case of a disagreement among the visiting Colleges (AlsC) -- allows approximately 325 voca- team, the director forwards the materials to the tional schools to operate without State oversight Council for Private Postsecondary Educational and review except in the most extreme circum- Institutions -- an advisory body to the Superinten-

4 1 t) team, the director forwards the materials to the combined to provide a total of $1.9 million in fund- Council for Private Postsecondary Educational ing, of which over $1 million came from the federal Institutions -- an advisory body to the Superinten- government and $894,000 came from institutional dent -- for review and recommendation to the Su- fees. These federal and institutional funds pay for perintendent. 33 authorized positions in the Division, which is organized as shown in Display 2 on page 6 Approved vocational schools are visited and reviewed by a representative of the Division, and if the Division does not take action on the application The Council for Private Postsecondary within 30 days of the visit, the school automatically Educational Institutions receives a full approval. Specialized career-oriented institutions that fall under the jurisdiction of the The Council for Private Postsecondary Educational Department of Consumer Affairs are reviewed for Institutions was created in 1972 to provide "lead- oversight by their respective boards: barber schools ership and direction in the continuing development by the Board of Barber Examiners; schools of cos- of private postsecondary education as an integral metology by the Board of Cosmetology; schOols of and effective element in the structure of postsec- acupuncture by the Board of Medical Quality As- ondary education in California."It has 15 voting surance; and schools training vocational nurses members -- four of them appointed by the Super- and psychiatric technicians by the Board of Voca- intendent of Public Instruction, five by the Senate tional Nurses and Psychiatric Technicians. In all Rules Committee and the Assembly Speaker -- plus of these instances, the standards and conditions for the Superintendent or his designee. The Council institutional review and oversight are set by these also has three non-voting ex-officio membersthe boards. Once they have certified that the insti- directors or their designees of three related State tutions have been satisfactorily reviewed. institu- agencies -- the Departments of Consumer Affairs, tional licenses to operate are issued by the Private Employment Development, and the Postsecondary Postsecondary Education Division. Education Commission. According to the Private Postsecondary Education Act, the Council's work "shall at all ti nes be directed toward maintaining and continuing, to the max- Funding and organization of State review imum extent possible, private control and autonomy in the administration of private postsecondary The Private Postsecondary Education Division schools and colleges in this State " The Council is advisory to the Superintendent in most matters and The Veterans Administration of the federal govern- has statutory authority only over increases in insti- ment supplies funds to the states to review federal- tutional licensure fees ly reimbursable education for members of the Staff for the Council are provided by the Director of armed forces, veterans, and their dependents: and the Division from within the Division: but because California has assigned this oversight task to two of the Division's staffing shortages, the Council has agencies -- the Department of Industrial Relations not always had full-time staff made available to it. for apprenticeships, and the Private Postsecondary Education Division for training courses. The Divi- sion's process of reviewing these courses is essen- Other State agencies tially separate from its process of reviewing institu- State agencies ether than the Division and the tions for licensure. but the licensure process bene- Council are also involved in the process of over- fits from the Division's federal support because the State of California, unlike other states, puts no sight, review, and licensure of private postsecond- Outside of the Department of Con- General Fund support into the oversight or licen- ary education sumer Affairs, which has oversight responsibility sure of private postsecondary education for many of the professions, general policy over- The Division is funded exclusively from its Veter- sight is scattered among many agencies. ans Administration contract and from fees collected from private institutions. In 1988-89, these sources DISPLAY 2Organization of the Private Postsecondary Education Division, July 1988

Private Postsecondary EduenteonVII/ moon OIIICTOf Ewfw rc,I iri

Sow-41 Advisor Stenoot,oner to Advisor ASSISTANT DIREC TOR ASSISTANT DIRECTOR

Secretary to the Assistant Onectur

GECGRAPHIC ZONE COMPLA NTS GECY3RAPHIC ZONE

ADMINISTRATIVE SUPPORT

VIOLATORS STUDENT TUITION RECOVERY FUND' COMPUTER SYSTEMS NEW OCCUPATIONAL SCHOOLS' CAREER RELATED EDUCATION RELIGIOUS EXEMPTIONS CEOGFIAFIIIC ZONE

GE 'O..1 ONE VETERANS AOWTICATION LIAISON

OUT-OF STATE ACCREDITED DEGREES

Source: Adapted from California Postsecondary Education Commission. April 1989, p. 41.

Chief among these agencies is the Postsecondary ty for the State's management of all student aid Education Commission, which participates in the programs, including the federal guaranteed stu- implementation of the law by being obligated to dent loan program as well as to notify the Division name one staff person to participate in each ,,ite of any private institutions that are subject to its ac- visit to authorized institutions and which has stat- tions in limiting or suspenaing, their eligibility utory responsibility to review the effectiveness and under the Guaranteed Student Loan Program. implementation of the law. Finally, the Attorney General's Office is involved The Student Aid Commission also becomes involv- in two ways -- in complaint investigations and in ed in these matt:ars, as it has statutory responsibili- the handling of licensure appeals

6 1u 2Findings of the Commission's Two Previous Reports

IN RECENT months, the Commission has publish- 3. Provide a qualitative filter for individuals apply- ed two reports responding to legislative requests re- ing to take professional licensing examinations. garding California's oversight of private postsec- Nine different accrediting agencies review and ac- ondary education -- The State's Reliance on Non- credit institutions in California and collectively ac- Governmental Accreditation (March 1989) and Pro- credit some 820 institutions (Display 3. below) tecting the Integrity of California Degrees (April 1989). The accreditation process is essentially a process of- peer evaluation, which the Commission has historically found to be deserving of State encouragement California's reliance on accreditation and support. However, while the State has in general been well served by its reliance on accredi- In the first report, the Commission reviewed the tation, total reliance on the process for purposes of State of California's use of accreditation in lieu of institutional authorization weakens the capacity of direct State oversight as a condition of State autho- the State to set and maintain minimum standards rization to offer instructionIt found that the State for accredited institutions. The reason is the con- relies on accreditation to accomplish three basic siderable unevenness among the different accredit- purposes: ing associations in terms of their procedures for re view, frequency of review, definition of standards, 1. Maintain a standard of quality, probity and sta- requirements regarding financial information, and bility among accredited institutions that is at minimum definitions of educational qualityAl. least equivalent to the State's oversight stan- though the rigor and extent of most accrediting re- dards; views seems perfectly adequate, this is not always 2. Determine eligibility for federal and State stu- the case. and the current law makes no allowance dent aid in cooperation with the United States for selective judgments by the State of when the ac- Department of Education; and crediting process meets minimum State standards

DISPLAY 3 Institutional Accrediting Agencies Operating in California and Numberof California's Private Institutions Accredited by Them Degree Non-Degree Accrediting Agency Granting (201,,g Accrediting Commission for Senior Colleges and Universities, WA SC 102 0 Accrediting Commission for Community and Junior Colleges, WASC 23 0 American Association of Bible Colleges( AAFIC)i 6 0 Accrediting Council for Continuing Education and Training (ACCET) 0 160 Association of Independent Schools and Colleges (AICS) 12 45 Council on Chiropractic Education iccE) 5 0 National Accrediting Commission of Cosmetology ',rts and Sciences ( NACCAS) 0 230 National Association of Trade and Technical Schools (NATTs) 20 203 National Home Study Council (NftsC) 2 12

Source: Adapted from Display 10, California Postsecondary Education Commission, March 1989, p. 27

7 or when some additional review would be appropri- agency for this purpose should be subject to ate. periodic evaluation by a responsible agency of the State (1989a, p. 4). For example, three of the nine accrediting agencies operating in California do not require that institutions supply audited financial statements for review prior to initial accreditation. This is of partic- Protecting the integrity ular concern to the State because such reviews give of California degrees some systematic insight into the financial stability of these institutions. Since accredited institutions The second Commission report focused on the effec- are eligible to participate in State and federal stu- tiveness of California's current law regulating pri- dent aid programs, their financial stability is vate colleges and universities the Private Post- important to government student aid officials. secondary Education Act of 1977, as amended -- in Considerable variation also exists among accredit- protecting the integrity of their degrees. This law ing agencies in the definition of what the., require sunsets on January 1, 1992, and the Legislature for a degree and in whether they expect institutions directed the Commission to review its adequacy to meet State standards for authorization or licen- and its implementation in anticipation of that sun- sure. In addition, the State has no mechanism for set. collecting statistical information from accredited In that report, the Commission provided a detailed institutions (for example, on programs and courses chronicle of the origins of the law, including offered, student enrollments, and degrees awarded) amendments made over the past five years that to assist in State planning. This impedes the abili- were designed to strengthen State oversight of pri- ty of State policy makers to know what students are vate postsecondary education by (1) requiring that being served by these institutions, at what cost, and all previously authorized institutions be re- with what results. reviewed to ensure their compliance with new edu- Thus the Commission concluded that the State had cational standards, (2) including language imply- to some extent relinquished its responsibility for ing that "approval" is comparable to accreditation, oversight to the accreditation process, and that and (3) revising the State's review process for out- some reversing of this policy was in orderIn the of-state accredited institutions. The Commission report, it csrovided two guidelines for State policy found that these recent changes in the law have im- with regard to how to accomplish this: proved State oversight considerably. In 1984, there were 209 unaccredited but State-authorized insti- 1. In the oversight of private postsecondary tutions operating in California: but by the end of institutions in California, the State should 1987. this number had dropped to 90. Although it retain the responsibility for ensuring com- is not possible to know definitively what happened pliance with its minimum quality stan- to the remaining 119 because data on them are so dards and consumer protection laws. limited, it appears that at least 48 of them either 2. The State should rely on individual ac- closed or moved out of State because of the crediting agencies for purpcses of protect- strengthened law Of these, 15 were denied reauth- ing the consumer and maintaining the in- orization. The rest either did not apply for reautho- tegrity of degrees and other awards on rization because of the stricter standards, withdrew case-by-case basis as determined by the ap- their applications during the reauthorization proc- propriate State agencySuch reliance ess, moved to "approved" status, or filed as autho- should be found appropriate only when an rized schools of theology. accrediting agency can demonstrate that its Despite this improvement in authorization stan- standards and procedures substantially dards, two weaknesses remain that have prevented cover the standards and consumer protec- the law from accomplishing its goal of protecting tion requirements in the State's licensing the integrity of California's degrees and diplomas: laws and these are rigorously enforced. (1) remaining inadequacies in the law itself, and (2) This decision to rely on an accrediting failures in its implementation.

8 Deficiencies in the law has been exacerbated by the location of the Pri- vate Postsecondary Education Division within Four defects in the law are of particular concern. the Department of Education, away from postsecondary educational peers. The Council for 1. The different categories or layers of institution- Private Postsecondary Education, already al status in the law are confusing to educators weakened because it is a policy rather than a and the public alike.Its distinction between regulatory body, is also structured to maintain "approval" and "authorization" is particularly the isolation from the rest of postsecondary edu- obtuse; its combination of two entirely different cation. Issues such as improving the definition forms of recognition -- one for colleges and uni- and application of quality standards, getting versities and the other for theological schools -- qualified individuals on review teams, and ulti- under the single label of "authorization" is mis- mately improving the articulation of the entire leading; and the meaning of "licensure" in rela- sector into all aspects of postsecondary education to approval and authorization is murky tion will not be solved if this isolation is main- For both approved and authorized institutions. tained no clear distinction exists between their minimum educational standards that can separate 4 The law has inadequate enforcement provisions them unequivocally. The category of "religious- whereby institutions that have failed to meet its ly exempt'' institutions permits self-proclaimed standards may continue to operate almost indef- religious institutions to award degrees unless initely while they appeal. the State challenges them in the courts. And no category exists for new institutions to begin op- Problems in implementing the law eration under "candidate" or "provisional" status. 1. The Private Postsecondary Education Division has been unable to implement the provisions of 2. A second problem with the law is the way it is the law effectively and on time, as evidenced by funded. No State resources at all are committed the fact that the regulations have yet to be to the oversight, licensure, and policy review of adopted implementing the 1984 amendments to private postsecondary education. To enforce the strengthen the authorization process for non- law, the Private Postsecondary Education Divi- accredited institutions and the licensure process sion of the State Department of Education must for out-of-state accredited institutions. Its focus rely exclusively on fees from the application and on the in-state authorization and approval proc- renewal process for approved and authorized iness has also meant delays in implementing the stitutions, supplemented with federal funds for new standards for licensing out-of-state accredits course approval activities on behalf of the ited institutions. Veterans Administration. While some problems in implementing the law are not causally linked 2. The standards for authorization and approval to inadequate resources, there can be no doubt have been applied unevenly by individual staff that additional staff resources to do the job of the Division. caused in part because of inade- would be of considerable help. quate staff training and also by very high workload requirements attributable to inadequate 3. The law contains a structural problem restrict- funding for staff resources The size of the Divi- ing the oversight and regulation of private post- sion's staff is probably too small to do the job secondary education by confining its community well under any circumstance, but this problem of interest to those individuals affiliated with has been exacerbated by the fact that most staff private institutionsand for the most part. pro- do not have background or adequate training in prietary or profit-making ones The sole excep- the field of postsecondary management or qual- tion to this policy has beer the involvement of ity control the regionally accredited, degree-granting nonprofit sector in State policy and planning for 3Because of its reliance on institutional fees, the postsecondary education. This isolation of the Division has faced problems in regulating insti- rest of the "industry" -- as it has labeled itself -- tutions while simultaneously providing techni-

9 cal assistance to them. Implementation of the Conclusions 1984 amendments has forced the staff to spend a great deal of time on the process of re-authoriz- In its two previous reports, the Commission has ing institutions, and because of the newness of found evidence of a rich variety of private postsec- the law and the lack of regulations, much of this ondary Educational institutions in California. time has been spent in helping institutions get With the demands that exist among the population through the application processQuestions ex- of so large a state for all kinds of postsecondary edu- ist as to whether it is appropriate for the same cation, the legitimate educational needs of Califor- staff who are providing this consultation to also nians will never be able to be met through the pub- be in the position of reviewing and making judg- lic sector alone. Some components of the private ments about the quality of these institutions' sector have missions similar to those of public insti- applications. tutions, but the majority of them offer programs that differ in intended scope and depth from those 4. The Division lacks time or staff to collate statis- available in the public sector. As the State moves tical information from institutions into ade- to the year 2000, the enrollment demands that will quate trend reports on their number, type, and be put on the entire postsecondary educational ap- size; their enrollments and graduates by pro- paratus will be such that all of the resources avail- gram area; and their instructional and adminis- able -- public and private -- will have to be efficient- trative staff. As a result, State policy makers ly and effectively utilized. lack information about the private postsecondary enterprise with which to draw definitive The private sector also provides an avenue for ir.sti- conclusions and make informed planning and tutional and curriculum innovation that enriches policy judgments affecting it. the educe'.Lonal opportunities of California's students. Although the Private Postsecondary Educa- 3.Finally, the Council for Private Postsecondary tion Act has succeeded in encouraging innovation Educational Institutions has had a mixed his- and experimentation through private postsecond- tory of helping implement the law First created ary education, it is not clear that it has achieved its as a policy body in 1972, the Council has evolved goal of protecting the quality of education offered to from initially being a promoter of the private students throughout the private set.tor. The insti- postsecondary educational industry to having a tutions that maintain the highest standards of edu- majority of members interested in strengthen- cational quality appear to be those that are ing its regulation. Whether the same body can regionally accredited and largely non-profit.The simultaneously promote and regulate any busi- State can lay no claim for responsibility for the ness or industry remains an open question, but quality of these institutions, since their standards the chief dilemma of the Council seems to be are developed and enforced through a non-govern- that -- regardless of its direction or focus -- it re- mental peer process rather than through State mains merely advisory to the Superintendent of regulation or oversight.It is less clear that all of Public Instruction. The only area where it has the institutions that are licensed by the State meet decision-making responsibility is in the area of reasonable standards of quality Some non-accred- approving licensure feesIn 1986, it disap- ited degree-granting institutions remain a partic- proved the Division's request to increase fees in ular concern to the State, andproblems exist order to hire more staff, although it has recently among some accredited vocational schools -- raising approved a fee increase to hire one half-time at- questions about the wisdom of the State's total re- torney to help reduce the legal backlog of the Di- liance on accreditation in lieu of direct review and vision Overall, the work of the Division has not regulation. been helped by the Council, which has not participated as it could have in the larger post- This excessive reliance on accreditation can he secondary educational community with respect solved by giving the State the ability to be selective to policy, planning, and oversight. in when to rely on accreditation. But more extensive change will be needed to overcome the inadequacies of the law and its implementation in pro-

10 tecting the quality of California education. These institutions, an additional issue is the acceptance inadequacies have perpetuated California's reputa- by the State of degrees from unqualified institution as being a haven for low-quality private insti- tions as a condition of licensure, thus exposing the tutions, despite recent improvements in the law public to ill-prepared professionals. and despite the number of excellent private insti- The problems of perception are equally as bad, giv- tutions operating in the State. en the widespread and persistent sense that neither This issue of reputation involves both fact and per- State regulation nor the peer review process of ception. The factual problems are evidenced by the some accrediting agencies protects quality among number of school closures, high student loan de- all privately supported institutions.So long as fault rates, inadequate or nonexistent student these negative perceptions persist -- regardless of counseling, poor job placement records, the inabil- their fundamental accuracy -- it is the students and ity of students to get courses accepted for credit out- the quality institutions serving them who will be side of the institutions, and completely inadequate shortchanged. institutional record keeping. For degree-granting

1 1 A Policy Framework for State Oversight 3 of Private Postsecondary Education

MUCH has been accomplished by the State of Cali- ment of students' achievement prior to, during, fornia in the past five years to improve its oversight and at the end of their program. of private postsecondary education. Much more remains to be done, however. In this final section of 4. The law should recognize and support non-gov- the report, the Commission offers five State policy ernmental accreditation, while not ceding to goals and eight recommendations to the Legisla- that or any other non-governmental process all- ture as a framework for improving State oversight responsibility for State oversight for purposes of of private postsecondary education. licensure if the accreditation process fails to protect minimum standards of quality As a result, California should not seek to obtain recognition by the United States Secretary of Education of its State licensure process as comparable to ac- State policy goals creditation. The following policy goals emanate from the find- 5. The law should be administered by individuals ings and conclusions of the Commission's recent re- who are part of the postsecondary educational ports on State oversight of private institutions and community, supported by and building on a peer form the basis for its subsequent recommendations review process that integrates experience and on changes in the Private Postsecondary Education perspective from public as well as private post- Act. secondary education. 1. State law should be as simply written and clear as possible, both to aid in its enforcement and for the benefit of students, employers, and the public. Recommendations

2. State law should be clear about the purpose of Because of the complexity of the problems and be- State oversight of private postsecondary educa- cause human and financial resources are not going tion. The major goal of oversight should be to to be available in the quantity that could simulta- ensure minimum standards of instructional neously solve all of them, the Commission believes quality and institutional stability for all stu- that amendments to the law should focus on these dents in all types of institutionsA secondary eight areas of priority concern: goal should be to ensure integration of the private postsecondary educational community into 1. The Council for Private Postsecondary Ed- all aspects of State policy and planning for post- ucational Institutions should be abolished secondary education. and replaced with a policy body that is regulatory rather than advisory and is struc- 3. State law should be clear about the meaning of tured to include members of the entire post- licensure. A license should mean that the State secondary educational community.This has determined and certifies that an institution body should be charged with the responsi- meets at least minimum standards of integrity, bility of developing policies and procedures financial stability, and educational quality -- infor the oversight and licensure of private cluding the offering of bona fide instruction by postsecondary education, including the qualified faculty and the appropriate assess- responsibility for managing a broadly con-

1 3 strued policy and planning process that 5. The categories of "approved" and "autho- seeks to improve State accountability for rized" institutions should be abolished and private postsecondary education as well as replaced with a single category of "licens- to improve the articulation of private post- ed" institution. A candidacy period for new secondary education with the general post- schools should be established, and the new secondary educational community. This board should be given the responsibility for new body should provide the leadership writing the minimum standards for meeting and planning needed to maintain awl devel- this initial status.Institutions should be op a strong private sector of this commani- allowed to remain on probationary status ty. for no more than two years, by which time they either should be fully licensed or 2. The Private Postsecondary Education Divi- closed. sion within the State Department of Educa- tion should be eliminated. Its oversight and 6. The State licensure process should be suf- licensure functions should he carried out ficiently rigorous. detailed, and frequent to instead by postsecondary educational spe- achieve the Legislature's intention to pro- cialists who are familiar with postsecond- tect the integrity of degrees and diplomas ary educational management and quality by private institutions. Language in the law control as well as with both academic and implying the "comparability" of State ap- vocational and non-profit and proprietary proval to accreditation should be elimi- educe ion. nated, and the law should contain minimum standards of quality, including evidence of 3. The law should be amended to giva the new bona fide instruction through student-fac- regulatory body the capacity to make selec- ulty interaction, as well as a definition of tive judgments about the basis on which ac- what constitutes a degree. creditation will be used for state licensure review. 7. The new regulatory board should have adequate legal and administrative staff to expe- 4. The law should initially focus the State's re- dite the development and promulgation of view and oversight functions on accredited regulations as well as the handling of stu- vocational schools and on degree-granting dent and institutional appeals. The law non-accredited institutions. The law should should include language clearly delineating specifically exempt non-profit regionally the basis on which appeals will be accepted accredited degree-granting institutions to ensure reasonable institutional access to from the provisions of State review. How- redress grievances while expediting the ap- ever, the new regulatory board should pre- peals process and discouraging dilatory ac- pare a review of the integrity of the regional tion. accreditation processes as compared to the effectiveness of the State licensure process, 8. State resources necessary to support the with recommendations to the Governor and operation of the Board and its staff should Legislature on the appropriateness of this be provided as a supplement to institutional exemption. This should be prepared by De- fees and Veterans Administration funds. cember 1997 to coincide with the recommended five-year sunset for the law.

2o 14 . Bibliography

Note: This bibliography lists all of the Commis- Commission Report 83-6.Sacramento: The Com- sion's reports that deal with State oversight of pri- mission, January 1983. vately supported postsecondary education.

--Public Policy. Accreditation. and State Approval in California. State Reliance on .Von-Governmental Accrediting Agencies and on State Recognition of California Postsecondary Education Commission Postsecondary Institutions to Serve the Public Inter- The Role of the State in Private Postsecondary Ed- est. Commission Report 84-28. Sacramento The ucation: Recommendations for Change. Commis- Commission, July 1984. sion Report 76-7. Sacramento: The Commission, July 1976. -- The State's Role in Promoting Quality in Private Postsecondary Education A Staff Prospectus for he --.Review and Evaluation of the Private Postsec- Commission's Review of the Private Postsecondary ondary Education Act of 1977. Commission Report Education Act of 1977, as Amended. Commission 81-1C.Sacramento: The Commission, January Report 87-44. Sacramento: The Commission, De- 1981. cember 1987.

--. The Challenges Ahead: A Planning Agenda for --. The State's Reliance on Non-Governmental Ac- California Postsecondary Education, 1982.1987. creditation: A Report to the Legislature in Response Commission Report 81-25. Sacramento: The Com- to Assembly Concurrent Resolution 78 (Resolution mission, November 1981. Chapter 22, 1988). Commission Report 89-13. Sac- ramento: The Commission, March 1989.

--. Commission Comments on Proposed Standards for Authorization of Private Postsecondary Educa- -- Protecting the Integrity of California Degrees: tional Institutions A Review for the Legislature of The Role of California's Private Postsecondary Edu- the Report of the Special Committee of the Council cation Act of 1977 in Educational Quality Control. for Private Postsecondary Educational Institutions Commission Report 89-17 Sacramento The Com- Pursuant to Section 94304 5 of the Education Code. mission. April 1989

15 THE STATE'S RELIANCE ON NON-GOVERNMENTAL ACCREDITATION

Accrediting Commission Accrediting Commission for Community and Junior Colleges, for Senior Colleges andUniversities) Western Association of Schools Western Association of Schools and Colleges and College Association of Independent Schools and Colleges American Association Council of Bible Colleges on Chiropractic Education National Accrediting Commission of Cosmetology Arts and Sciences National Accrediting Council Home Study for Continuing Education Council and Training National Association of Trade and Technical Schools

CALIFORNIA POSTSECONDARY EDUCATION:roststc"fl;Y COMMISSION 0

7g 0COMMISSION Summary

Since 1958, California has relied on non-governmental accrediting agencies to maintain standards of quality and integrity in its accredited private colleges, universities, and vocational schools. In doing so, the State has exempted these institutions from review by its own licensing agency -- the Pri- vate Postsecondary Education Division of the State Depart- ment of Education. Through Assembly Concurrent Resolution 78 (Hughes, 1988), the Legislature directed the California Postsecondary Educa- tion Commission to review this policy and to consider whether any or all of the responsibilities currently delegated to accrediting agencies should be assumed by the State. In carrying out this request, the Commission reviewed the operation, procedures, and standards of nine nationally recognized accrediting commissions that accredit approximately 95 percent of all accredited postsecondary institutions in the State. This , :port contains the findings of that review. Part One on pages 1-4 contains a summary of findings and recommended policy guidelines regarding California's reliance on accreditation.Part Two on pages 5-8 then explains the origins and methods of the study. Part Three on pages 9-24 focuses on the nature and limits of accreditation at large.Part Four on pages 25-30 discusses the three basic purposes for which the State relies on accreditir g agencies. Part Five on pages 31-40 gives Specific examples of the State's overreliance on these agencies along with a sot of seven premises 'or establishing a coherent policy for State oversight of private postsecondary institutions. As the first report in a series of three Commission reports on California's oversight of private postsecondary institutions, this report does not contain detailed recommendations for changes in State oversight or its reliance on accrediting agencies. Instead, it seeks to provide the basis for such recommendations in the third of the series, Recommendattons for Re- Lnsing the Private Postsecondary Educatton Act of 1977 (April 1989). The Commission adopted this report at its meeting on March 21, 1989, on recommendation of its Policy Evaluation Com- mittee. Additional copies of the report may be obtained from the Library of the Commission at (916) 322 -8031. Questions about the substance of the report may be directed to William K. Haldeman of the Commission staff at (916) 322-7991.

, 4 u THE STATE'S RELIANCE ON NON-GOVERNMENTAL ACCREDITATION

A Report to the Legislature in Response to Assembly Concurrent Resolution 78 (Resolution Chapter 22, 1988)

POSTSECON DAR Y

< P1 Z 0 X C 0 n la. > J -I < 0 U z CALIFORNIA POSTSECONDARY EDUCATION COMMISSION Third Floor1020 Twelfth StreetSacramento, California 95814-39850 COMMISSION0

-0 COMMISSION REPORT 89-13 PUBLISHED MARCH 1989

This report, like other publications of the California Postsecondary Education Commission, is not copyrighted. It may be reproduced in the public interest, but proper attribution to Report 89-13 of the California Postsecondary Education Commission is requested. Contents

L Findings and Policy Guidelines 1

Findings 1

2. Impetus for the Study 5 Methods of the Study 6 Acknowledgements 6

3. Nature and Limits of Accreditation 9 Nature of Accreditation 9 The Purposes of Accreditation 10 Peer Acceptance as the Basis of Accreditation's Authority 11 Elements of Acci zditation Accrediting Bodies Show Important Variations in Composition, Size, and Workload 11 Variety of Institutions Accommodated 12

Size and ¶3cope of Accrediting Agencies 15

Variations in Critical Accreditation Standards and Procedures 18 Stability of the Institution 18 Tne Integrity of Institutional Programs and Administration 22 Probity of an Institution's Dealing with Students 22 Wide Variation in Educational Standards 23 Summary 23

4. State Relianceon Accreditation 25 Exemption from State Oversight Standards 25 Determining Eligibility for Federal and State Funding 27 Indicating Quality for Purposes of Professional Licensure 28 Accreditation and the Board of Cosmetology 29 Accreditation and the Commission on Teacher Credentialing 29 5. State Oversight and Non-Governmental Accreditation 31 California's Overreliance on Accreditation for Oversight 31 Other Types of State OVersight 32 Licensure of Accredited Out-of-State Institutions 33 California's Data Collection Efforts for Postsecondary Education 33 Institutional Licensing Through the Private Postsecondary Education Division 36 Institutional Licensure Through Other State Agencies 36 Compliance Audits 36 State Program Approval 37 Lessons for the Future 38

Appendices 41

A. Recommendations of the California Postsecondary Education Commission Regarding Non-Governmental Accreditation and State Approval, 1984 41

B. Assembly Concurrent Resolution 78 (1988, Hughes) 43

C. Federal Criteria and Procedures for Recognition of Nationally Recognized Accrediting Agencies and Associations 45

D. Statements of Purpose by Non-Governmental Accrediting Agencies 49

E. Origins and History of State Licensure of Private Postsecondary Education Institutions in California From 1850 to 1977 53

References 61 Displays

1.Number of Accredited Postsecondary Institutions in California by Level, Type, and Accreditation, 1988 13

2.Accrediting Associations Recognized by the Federal Department of Education That Accredit Postsecondary Institutions Based and Operating in California 14

3.Types and Number of Institutions A "credited 16

4.Number of Institutions and Students Served by Each Accrediting Association, Total Region and California 17

5.Accrediting Commission Staff, Workload, and Budget 18

6.Accrediting Commissions' Length of Meetings, Compared With The Number of Actions 19

7.Adverse Actions Taken During the Most Recent Year (Fall 1988) 20

8.Accrediting Association Requirements Regarding Audited Financial Statements 21

9.Standards on General Education of the Accrediting Commission for Senior Colleges and Universities (WASC) and the National Home Study Council 24

10.Number of Accredited Private Postsecondary Institutions in California Exempted from State Regulations 27

11.Non-Governmental Accreditation Compared with Six Types of State Review of Private Postsecondary Education Institutions 34-35

12.Student Enrollments. Expenditure of Public Funds, and Level of Available Information For Public and Private Postsecondary Institutions 36

13.Differences Between Non-Governmental Accreditation and California State Licensure 38

5 ; 1 Findings and Policy Guidelines

Findings mental nature that depends heavily upon peer pressure to achieve its ends. In 1984, the Com- 1. Extent of accreditation: Some 900 institutions of mission recommended that California should postsecondary education in California are cur- "protect and preserve" non-governmental ac- rently accredited by one or another of nine fed- creditation; and that the State should not at- erally recognized accrediting agencies: tempt to replace or duplicate non-governmental The Accrediting Commission for Community accreditation in "its role in promoting educa, and Junior Colleges of the Western Association tienal quality." The Commission hereby reaf- of Schools and Colleges (wASC) firms that recommendation. The Accrediting Commission for Senior 3. State reliance on accreditation: Once an institu- Colleges and Universities of WASC tion is accredited by an accrediting agency, Cali- The Accrediting Council for Continuing fornia relies on its accredited status and the con- E. ;ucation and Training tinuing monitoring of the accrediting agency in The American Association of Bible Colleges three ways: (1) to stand in lieu of the standards and the monitoring of its own oversight agency The Association of Independent Colleges and -- the Private Postsecondary Education Division Schools of the State Department of Education -- in en- The G. until on Chiropractic Education suring consumer protection and the integrity of degrees;(2) to establish an institution's eligi- The Na .ional Accrediting Commission bility to participate in State and federal student of Cosmetology Arts and S.'iscnces aid programs; and (3) to certify institutional The National Association of Trade and quality as a basis for admitting the graduates of Technical Schools these institutions to professional licensure examinations.In effect, the State accepts the The National Home Study Council judgments of all federally recognized accredit- Theo° 900 institutions include all of the State's ing commissions regarding the quality. integ- 136 publicly-supported colleges and universi- rity and stability of institutions and their pro- ties, plus 764 private degree-granting and non- grams on the assumption that the judgments of degree-granting institutions. The distribution all these agencies ensure institutional compli- of the resp.nsibilities for the oversight of these ance with the State's minimum standards for institutions in the State is illustrated by the consumer protection.In the judgment of the diagram on the following page. Commission, this is a most serious relinquishing of responsibility on the part of the State. 2. Importance of accreditation: The non-governmental accreditation of postsecondary institu- 4Evidence of overreliance on accreditationProb- tions is a socially important process that war- lems arise from this nearly total dependence on rants State encouragement and support. It is es- non-governmental associations because accred- sentially a process of peer evaluation. Its partic- itation and State oversight differ fundamentally ipants define standards of quality and seek to in (1) their bases of authority, (2) their purposes, improve their educational programs and institu- (3) their standards, and (4) their procedures. tions through a self-regulatory means that in- Accreditation focuses on the voluntary improve- volves both internal and external evaluation ment of educational institutions by means of components. Both its strengths and its weak- peer review, Ind the enforcing of state and fed- nesses emanate from its voluntary non-govern- eral statutes 'nhibits this process.In contrast,

1 State Oversight of Postsecondary Education lnstttutions in Califorilia

PUBLIC INSTITU PIONS PRI VA"! E INS 1 L I IONS

SUPERINTENDENT DF l'A RIAU VI L'C CSU CCC nl OF PUBLIC REGENTS TRUSTEES TRUSTEES CONK WAR INSTRUCTION %Ft AIRS

70 BOARD BAN A 9 OF COTEtAINII DISTRICTS COSME PRIVATE TOLOGY CAMPUSES ACI. Pl. M. POSTSECONDARY 266 Tl Kt EDLCATIO\ 18 DIVISION 19 106 CAMPUSES COLLEGES BOARD BOARD OP BARFBER ACK Al If), AL CA EXAM P N11111411, T1R I C TECHNICIAN MARITIME 13 ACADEMY LICENSED, 70 NON. ACCREDITED ACCREDITED HASTINGS r COLLEGE 513 2,151 OF THL I Institutions Institutions LAW

DEGREE GRANTING/ VOCATIONAL VOCATIONAL 1

197 1,732 239

OTHER APPROA ED (AHI I H OUT.OF.STATEINSTITUTIONS HOSPITALS STATE NON L INCALIFORNIA . AGENCY DEGREE LICENSE DEGREE GRANTING & F A.A

APPROVED THEOLOGICAL AUTHORIZED

EXEMPT INSTITUTIONS

AVOCATIONAL & HELIGOUS. 'N ON I\SEttvici. [FEDERAL PROFIT EDI CATION 101( RECREATIONAL EinTATioN INSTITUTIONS FOR NO.MBERS BUSINESS' INSTI1 UTIONS N1EMI11. HS UNKNOWN LINIAN0AA N ESTIMA FED 87 UNKNONN

Source: California Postsecond.ry Education Commission staff analysis.

2 3u State oversight seeks to ensure the maintenance crediting associations outside of California were of minimum educational standards and of essen- not providing adequate review of their Califor- tial consumer protection-- and enforcing com- nia branches. The State's licensing agency was pliance with these requirements. This function given the responsibility through Senate Bill should not be delegated without restriction to 1036 (1985, Montoya) to conduct licensing re- all recognized accrediting agencies.Moreover, views of the operations "whenever possible in these agencies vary significantly in their poli- conjunction with institutional reviews by the re- cies and procedures, their standards, and the gional accrediting association." rigor of their operations. Some have particular problems with institutions closing abruptly 7Minimal collaboration between State licensing without making proper arrangements for their agency and accrediting agencies: State licensure students and institutions with high default and institutional accreditation share some simi- rates on State and federal loans. lar concerns relating to the integrity and stability of institutions.Both functions can become 5. Need for flexible State reliance on accreditation: stronger and more effective when the agencies These variations in accrediting agency problems involved collaborate. Because the Private Post- and practices require a more flexible State pol- secondary Education Division has little author- icy on accreditation than has been maintained ity over accredited institutions, there are few oc- during the past several decades. The Legisla- casions for collaboration to be exercised. The ture has established in statute a blanket policy Division is further handicapped by not having of full reliance upon federally-recogniz.:/3 ac- the resources to mount an effective cooperative crediting agencies for consumer protection pro- effort with accrediting agencies because of the visions, but the State can be assured about the Division's inability to collect licensing fees from relative effectiveness of these accrediting agen- accredited institutions. cies only if the agencies can demonstrate that their standards and procedures substantially A number of different types of working relation- cover the standards and consumer protection re- ships are possible. These include joint visits to quirements f the State's licensing laws. an institution during which both licensure and accreditation concerns are covered, the inclu- The State should hold all private institutions ac- sion of a State staff participant or observer on an countable for meeting its licensing laws, but it accreditation visit, or the routine exchange be- should provide some relief from a duplicative in- tween agencies of pertinent institutional infor- stitutional assessment by its licensing agency mation. Examples of such cooperation found in for those institutions that have successfullyun- other states show that collaboration is both pos- dergone a review by an accrediting agency the sible and desirable. There are compelling rea- standards and procedures of which are judged to sons for promoting cooperation between the adequately cover the State's laws. agencies which implement the complementary functions of State licensure and non-govern- 6. Licensure of out-of-state accredited institutions: mental accreditation. The lack of cooperation The State's review and licensure of branches of can lead to misunderstandings about the scope out-of-state accredited institutions operating in of review being undertaken, or it can lead to du- California (Education Code 94310 1b) isan ex- plicative and perhaps unnecessary reviews ception to the policy of general reliance upon ac- Close cooperation, on the other hand, can pro- creditation. This part of the licensing statutes vide mutual support and can increase ..he bene- provides an example of how State licensure and fits of both types of institutional reviews. accreditation might work together with regard to other types of accredited institutions. 8 Gaps in the State's postsecondary institution data base: The California Postsecondary Educa- The addition of this Section of the Code requir- tion Commission annually collects statistical ing the licensure of branches of out-of-state in- data from about one-fo.trth of the approximately stitutions was made at a time when regional ac- 2,600 postsecondary institutions in the State.

3 The Commission is able to secure only scattered In the oversight of private postsecondary in- 1 information about the education of an estimated stitutions in California, the State should re- 500,000 students each year, 200,000 of whom tain the responsibility for ensuring compli- attend accredited vocational schools. The Com- ance with its minimum quality standards mission seeks to collect information from voca- and consumer protection laws. tional schools that offer programs of two or more years in length; but it does not survey voca- The State should rely upon individual ac- tional schools offering less than a two-year pro- crediting agencies for purposes of protect- gram because their response rate has been too ing the consumer and maintaining the integ- low to justify the expense. The Commission con- rity of degrees and other awards on an agen- cludes from this experience that the provision of cy-by.-agency basis as determined by the ap- institutional data to the State's Postsecondary propriate State agency.Such reliance Education Data Base should probably be a stat- should be found appropriate only when an utory requirement for operating a private post- accrediting agency can demonstrate that its secondary institution in the State, since volun- standards and procedures substantially tary participation in supplying institutional cover the standards and consumer protec- data has led to significant and critical gaps in tion requirements in the State's licensing the information State policy makers have re- laws and that these are rigorously enforced. garding educational services in the State. This decision to rely on an accrediting agency for this purpose should be subject to peri- These findings lead to the following two guidelines odic evaluation by a responsible agency of for State policy: the State.

3 .1; 4 2 Impetus for the Study

IN 1984, the Commission examined California's 94310 1 (degree-granting institutions) or subdivi- nolicy of exempting accredited institutions from sion (c) of Section 94311 of the Education Code." State oversight in its report, Public Policy, Accred- As a result, in this report the Commission has ex- itation, and State Approval. At issue in that study amined in more detail than the earlier report had were such questions as the extent of the State's de- done the purposes and operations of accrediting as- pendence upon a non-governmental process as an sociations that accredit postsecondary institutions indicator of quality for the State's professional li- in the State These include the national accrediting censure processes and the dispensing of student fi- commissions such as the Association of Indepen- nancial aid; the increase in the number of special- dent Colleges and Schools and the National Associ- ized accrediting agencies and the resultant ination of Trade and Technical Schools which were crease in costs and external pressures that these not reviewed in 1984. additional accrediting requirements imposed on both private and public institutions; the efficacy of A number of important problems have motivated a accreditation in the protection of students as con- return to this policy arena. sumers of education; and the necessity for greater Accreditation continues to be used as the basis cooperation between the State's postsecondary for directing the student aid funds provided by oversight agency and the accrediting ,,gencies in the federal and state governments to qualifying the review of out -of -state accredited institutions op- institutions. The increasing competition among erating off-campus centers in California. institutions for these funds and the continuing The Commission's 1984 report contained 14 recom- concern with high default rates among the grad- --naidations relating to these issues (reproduced in uates of certain types of institutions suggest Appendix A), among which were recommendations that we should evaluate whether the current that the State should continue its reliance upon process of determining institutional account- non-governmental accreditation while encouraging ability for these funds is working satisfactorily. improves. -ants in both the accreditation and State New branches of institutions of all types multi- licensure standards and procedures.Since then, ply throughout the State, increasing access to the State amended its statutes to provide State li- postsecondary opportunities, but also increasing censure of out-of-state accredited institutions oper- interinstitutional competition and multiplying ating in California, a revised State institutional the difficulties associated with monitoring qual- approval process, and authority to the Superin- ityA review of the procedures used by the ac- tendent of Public Instruction to rescind the license crediting commissions for evaluating the off- of an accredited vocational institution if the insti- campus centers of their member institutions tution is not in compliance with the standards of its may aid State agencies in deciding what, if any, accrediting association. But the State's policy of re- additional oversight is necessary lying on non-governmental accrediting associations for overseeing the operations of their member The recent abrupt closures of accredited propri- institutions has remained unchanged. etary institutions which resulted in serious loss of time and money to students and to the State The present report continues the discussion of this and federal rvernments raise questions about issue. Through Assembly Concurrent Resolution 78 the quality of communication and cooperation (Hughes, 1988; reproduced in Appendix B), the Leg- betwee'l the State's licensing arm, the Private islature directed the Commission to "conduct a Postsecondary Education Division, and the vari- study of the operations and procedures of accredit- ous accrediting agencies responsible for accred- ing associations which accredit postsecondary insti- iting California's institutions tutions operating pursuant to either Section

r 5 The growing recognition of the public benefits of 2.It is recognized by the federal Department of non-governmental accreditation and the quasi- Education; and public nature of the accrediting associations' 3.It provides the sole institutional accreditation work prompt a continuing concern for their ca- for five or more postsecondary institutions in Cal- pacity to act in the public interest. The composi- ifornia. tion of the association boards, and the procedures used to nominate and select commission A questionnaire was sent to the executive director members all influence this capacity. The State of each of the nine accrediting commissions. The maintains an interest in the extent to which ac- questionnaire asked for information about the oper- crediting commissions which accredit institu- ations and procedures of the commission and about tions in California are able to act in the public its membership. interest. Data were also collected from a number of State Over the past decade, the State has made an agencies having some type of oversight over accred- effort to raise the standards it employs for licen- ited private postsecondary institutions. These agen- sing nonaccredited postsecondary institutions. cies included the Private Postsecondary Education Yet the relationship between these standards Division of the State's Department of Education, and procedures for State licensure and the stan- the California Student Aid Commission, the Com- dards and procedures used in non-governmental mission on Teacher Credentialing, and the Depart- accreditation remains unclear. The Legisla- ment of Consumer Affairs (including a number of ture's intent of protecting "the integrity of de- its licensing boards). In connection with the Com- grees" through licensure and accreditation, as mission's current study of the Private Postsecond- expressed in the Private Postsecondary Educa- ary Education Act under the direction of JB Heifer- tion Act of 1977, is explicit: the implementation lin, information was also sought from other states of this intent is still subject to intense debate regarding their reliance on non-governmental ac- over such issues as levels of quality and defini- creditation. tions of degrees. Concurrent with this review of accreditation, the Commission is also conducting a review and evaluation of the administration of the entire Private Postsecondary Education Act of 1977 and the effec- Acknowledgements tiveness of the Act's provisions for approving and authorizing nonaccredited institutions to award de- To help with the study, the Commission appointed grees. Both the conclusions and recommendations a technical advisory committee consisting of the of the present report and those of this parallel Com- following members: mission evaluation of the Private Postsecondary Richard Baiz, Deputy Director Education Act will provide the basis for Commis- California Department of Consumer Affairs sion advice on possible amendments and reinstate- ment of the Act upon its sunsetting on June 30, Joseph Barankin, Director 1991. Pat Brown (Alternate) Private Postsecondary Education Division California State Department of Education Garnet Birch, Dean Methods of the study Curriculum and Standards National University, San Diego The accrediting associations selected for review were chosen if they met the following criteria: Jonathan Brown, Vice President Association of Independent California Colleges 1. The association is a non-governmental, volun- and Universities tary organization.

6 tj j Sally L. Casanova, Dean Denise D. Ostton, Executive Officer Academic Affairs Jeff Weir, Program Analyst (Alternate) The California State University Board of Cosmetology Larry K. Dodds, President John C. Petersen, Executive Director Accrediting Council for Continuing Education Accrediting Commission for Community and and Training Junior Colleges Richmond, Virginia Western Association of Schools and Colleges William A. Fowler, Executive Secretary Bob Salley, Administrator Michael P. Lambert Program Evaluation Associate Director, (Alternate) Commission on Teache.. Credentialing National Home Study Council Catherine Sizemore Washington, D.C. Legislative Representative Coleman Furr, Chairman of the Board California Association of Private Coleman College, La Mesa (representing the Postsecondary Schools Association of Independent Colleges and Stephen J. Sn'ith Schools) Government Relations Manager Greg Gollihur, Deputy Director California State Employees Association Dana Callihan (Alternate) (representing the Council for Private California Stuci::mt Aid Commission Postsecondary Educational Institutions) Mark Gross, President Ralph A. Wolff, Associate Executive Director National Accrediting Commission of Accrediting Commission for Senior Colleges Cosmetology Arts and Sciences, Ontario and Universities Gus Guichard Western Association of Schools and Colleges Senior Vice Chancellor for Planning and Richard Zaiden, President Special Projects Technician Training School, McKees Rocks, California Community Colleges Pennsylvania (representing the National Karen Merritt, Director Association of Trade and Technical Schools) Planning and Program Review The Commission wishes to thank them for their Ur); v( rsity of California, Berkeley assistance in the study, together with the officials John Murphy, Vice President, Public Affairs of the nine accrediting agencies discussed in this University of Phoenix, San Jose report.

'i J 7 3 Nature and Limits of Accreditation

WESTLAND College, enrolling 1,200 students on Nature of accreditation its two campuses in Sacramento and Clovis (near Fresno), opened in 1981 and was accredited in 1983 As noted in Part One, the accreditation of postsec- by the Association of Independent Schools and Col- ondary institutions is essentially a process of peer leges -- a non-governmental accrediting association evaluation.Its participants define standards of headquartered in Washington, D. C. In 1985. West- quality and seek to improve their educational pro- land was audited by the California Student Aid grams and institutions through a self-regulatory- Commission and the U S. Department of Educa means that involves both internal and external tion, during which more than $500,000 in liabili- evaluation componentsRoth its strengths and its ties were disclosed, and in late 1985 it was fined weaknesses emanate from its voluntary, non-gov- $50,000 by the Department of Education. On or ernmental nature which depends heavily upon peer about February 11, 1986, the Private Postsecond- pressure to achieve its ends. ary Education Division of California's State De- Accreditation is uniquely an American phenom- partment of Education was informed of the sale of enon. While other countries haw centralized edu- Westland's assets to Sierra College of Business and cational systems that define the purposes, stan- authorized the institution to continue operation dards and limits of its various educational institu- About February 19, 1986, the Association of Inde- tions, our federal government is given no direct pendent Schools and Colleges extended the institu- powers over education. These powers devolve to the tion's accreditation under the new owner. On May states as a result of the Tenth Amendment of th-N 1 of that year, the institution closed, leaving a lia- Constitution. The states express these powers by bility of some $600,000 in unpaid student tuition establishing publicly supported educational insti- refunds and unau.norized federal funds. tutions and by chartering or licensing private insti- During the past three years, 44 of California's ac- tutions. credited private postsecondary institution: ,sed. The decentralization of responsibilities for setting Fifteen of them were accredited by the Association educational standards left the nation without a of Independent Colleges and Universities, and 12 means for attaining a consensus on such matters by the National Association of Trade and Technical Prior to the beginning of the twentieth century, the Schools. One chain of eight kICS schools in Califor- United States had no established method for main- nia closed abruptly, leaving hundreds of students taining an educational currency of credits and de- stranded with incomplete programs that were not grees that would he understood throughout the transferable to other colleges and with federal stu- country The a1Nence of national standards for both dent loans they could not afford to pay secondary and postsecondary institutions led to Institutional closures create one of several types of wide variations in standards from state to state. In problems that prompt the questions raised by ACR 1895, the first voluntary associations of these insti- 78. In brief, these questions can be reduced to two tutions formed for the purposes of defining the high (1) Should the State continue to rely on non-govern- school and college and developing quality guide- mentai accreditation to fulfill any of the State's lines and procedures of peer review oversight responsibilities? and (2) If so, what is the Out of this need for national standards, two basic appropriate relationship between the responsibil- types of accrediting bodies developedinstitutional ities of the accrediting agencies and State over- and programmatic or professional. sight? To answer these questions requires an understanding of the nature of accreditation and of ac- Institutional accrediting bodies review the en- crediting agencies. tire institution including its educational offerings, student personnel services, financial condi-

9 Lion and administrative strength. These bodies ditions under which their achievement can are either regional or national in scope. reasonably be expected, appears in fact to Programmatic accrediting bodies, as a rule, re- be accomplishing them substantially. and view a specialized part of an institutionThese can be expected to continue to do so. bodies are generally associated with an occupa- 4. To provide counsel and assistance to estab- tion or profession and are concerned with those lished and developing institutions and pro- parts of an institution which contribute to the grams. training for that occupation. 5. To encourage the diversity of American The two basic types of accreditation developed al- postsecondary education and allow institu- most contemporaneously during the last decade of tions to achieve their particular objectives the nineteenth century and the first decade of the and goals. twentieth. The first institutional associations the North Central and the Southern regional asso- 6. To endeavor to protect institutions a-ainst ciations -- were organized in 1895. the first pro- encroachments that might jeopardize their grammatic associations-- the American Associa- educational effectiveness or academic free- tion of Law Schools, the Society of American For- dom. esters, and the Committee on Education of the Although these purposes include the development American Osteopathic Association-- were organ- of criteria and guidelines fc..,- assessing educational ized in 1900,1900, and 1901, respectively effectiveness," the establishing of quality thresh- The Postsecondary Education Commission exam- olds or minimum standards is a practice that most ined the development of both types of accreditation institutional accrediting associations tend to avoid in some depth in its 1984 report. As a result, the As Kenneth Young puts it, "accreditation as a present report omits some elements of general whole is more accurately characterized as an elab- background about them.Additional details on orate process that involves many people making their evolution can be found in the earlier docu- subjective judgments, individually and collectively" (ibid.). ment. The Commission's obligations in this report, In a statement on "The Role and Value however, require that it review at least three facets of Accreditation" adopted by the Board of the Coun- of accreditation -- its purposes, its basis of author- cil on Postsecondary Accreditation in 1982, accred- ity, and its chief elements. itation is represented as having two fundamental purposes: "to assure the quality of the institution or program, and to assist in the improvement of the The purposes of accreditation institution or program." "The ultimate test of institutional accreditation," Young states,is whether The Council on Postsecondary Accreditation (COPA) the accredited institution is acceptable to other a national association of accrediting commissions, accredited institutions" (p. 24) describes the purposes of accreditation in six major goals (Young, 1983, pp. 22-23): The COPA statement of the purposes of accreditation generally represented a national cons,- Isus in 1. To foster excellence in postsecondary edu- the early 1980s, but that consensus may be break- cation through the development of criteria ing down. For example., a representative of the Se- and guidelines for assessing educational nior Commission of the Western Association of effectiveness. Schools and Colleges c wAsc } states that the COP; 2 To encourage improvement of institutions purposes do not fully reflect the purposes of WASC and programs through continuous self "These statements [purposes' are incomplete to the study and planning. extent that they do not reflect one of our major goals, indeed the first major goal. which is to deter- sTo assure other organizations and agen- mine if institutions are in compliance with our cies, the education community, and the standards." Few other associations are as clear as general public that an institution or a par- wASC is about the accrediting association's respon- ticular program has both clearly defined sibility to provide rigorous external standards for and appropriate objectives, maintains con- the accrediting process.

10 42 Peer acceptance as the basis commission regarding initial or continuing ac- of accreditation's authority creditation; and

Postsecondary accreditation evolved as a voluntary 5. A decision by the accrediting commission to ac- enterprise in which an institution could choose or credit or not to accredit the institution. not choose to seek an evaluation by its peers. At Every element of this process is critical to the over- some point early in the lives of institutions, many all success of accreditati. as a measureof institu- choose this association because it lends credibility tional quality, but accrediting agencies vary great- to their programs. Once accredited, an institution ly in the degree of rigor with which these elements can then attract a better quality of students and a are implemented. Only when all these elements higher level of financial support.Its regard :n the are effectively administered can the State consider educational community and with the public at that its reliance upon accreditation is conceivably large is heightened. The authority of the accredited appropriatePotential difficulties exist with each institution in this type of voluntary environment is step in the process: based on the colleltive credibility of the institutions with which it has associated. 1 The standards may not be explicit enough nor comprehensive enough to provide a firm basis for Today accreditation can no longer be considered en- evaluation of institut tonal effectiveness. tirely voluntary. Eligibility for federal funds and, more often than not, professional licensure at the 2. Institutional self-studies may be incomplete or State level require that an institution be accredit- may lack objective data about the institution's effectiveness. ed. This governmental reliance upon accreditation, though readily accepted by the accrediting bodies, 3. The visiting team may be untrained, may not be has nevertheless increased governmental expecta- fully expert on all aspects of the institution un- tions of accrediting commissions to a point which der evaluation, or may spend too brief a period of may require a substantial change in the purposes of time on site reviewing the institution. accreditation. To understand how these expecta- 4. The visiting team's report may not cite impor- tions might affect accreditation, we must first re- tant deficiencies at the institution or may lack view the general elements of the accreditation proc- specific support for deficiencies cited. ess. 5. The accrediting commission may not be repre- Elements of accreditation sentative of the community of interest (especially the general public) or may have too heavy an Certain ingredients are common to all non-govern- agenda to be able to give careful consideration to mental accrediting entities: each case. 1. A fostering association which develops and publishes a set of standards and procedures; 2. An institutional self-study, based on the associa- Accrediting bodies show important tion's guidelines, which examines the institu- variations in composition, size, and workload tion's effectiveness in attaining its own mission and objectives: While most accrediting bodies exhibit the common 3 An evaluation of the institution by a team ofex- characteristics and purposes discussed above, they perts from outside the institution which spends also differ in crucial ways This section and the one time at the institution reviewing the institution to follow Ipage 181 discusses these differences by in light of the association's standards and the in- first examining the physical features of accrediting stitution's mission: associations and then reviewing their standards 4. A written team report which contains both com- and procedures. mendations and recommendations to the institu- Tne purpose of this discussion is to underscore the tion and a recommendation to the accrediting fact that what appears to be a simple, consistent State policy of relying on accreditation turns out to

11 be a State policy of substantial irregularity in the accommodation of institutional differences.The treatment of private institutions. In the course of criticism may be apt where associations have in- analyzing the differences among the accrediting sisted on familiar patterns of educational resources bodies, we do not attempt to rank or grade them. and processes as evidence of quality, but this prac- Most have strong points worthy of emulation, and tice is changing and, thus, the criticism is less per all have weak points that need strengthening. The tinent today. The range of types of accrediting as- objective of presenting the data in Displays 1 sociations and the range of differences accommo- through 8 and the discussion of workload charac- dated within accrediting associations is rapidly ex- teristics and differential standards is to demon- panding. Today there are more than 80 institution- strate that the diversity among accrediting associa- al and professional accrediting associations recog- tions is too great for the State inflexibility to rely nized by the federal Department of Education. on. The range of types of institutions accommodated by Clearly, a primary reason for the variation among the nine associations covered in this report includes the nine associations we reviewed lies in the make- traditional residential colleges and universities. up of the associations' constituent institutions commuter colleges, external dpgree :nstitutions, a Practices, standards, procedures tend to vary be- free-standing (i.e., single-purpose) graduate insti- cause of differences (1) in the basis of control (pub- tution, a free-standing law school serving predom- lic, private/non-pr,fit, or privatedor-profit) and (2) inantly minority and older adult students, a college in the academic or vocational objectives of its pro- requiring study in the Third World, the only insti- grams. Analyzed along these dimensions, the Cali- tution in the Western World whose mission it is to fornia institutions accredited by these associations serve the Armenian community, a nontraditional fall into the categories displayed in Display 1. institution offering doctoral degrees integrating Descriptions of these accrediting commissions are Eastern philosophy with Western psychology, a col- stated in Display 2 in terms of the types of institu- lege founded on the basis of supporting the study of tions they accredit. A more complete statement of scientific creationism, an institution offering mas- their purposes is contained in Appendix D ter's degrees in computer science through satellite telecommunications, and an institution offering A selective comparison of the differences in pro- doctoral uegrees in public policy studies as part of cedures and standards among these nine commis the operations of the Rand Corporation. sions is the subject of the discussion that followsI n some cases, the differences are rather obvious and In actuality, this range of institutions is accredited need little exposition:for example, it is clear that by just one of the nine commissions -- the Senior associations composed of not-for-profit, degree- Commission of WASC. With the exception of the granting institutions differ in important ways from first two topes in this list, these institutions are not associations composed totally of for-profit, vocation- what the layperson would call "mainline" institu- al schools.Similarly, it may be easily apparent, tions, even though they have been assessed against but still noteworthy, that some associations com- the substantial standards this Association uses for posed entirely of single-purpose instiutions (in accrediting the more traditional institutions. particular the American Association of 3ible Col- Taken together, the other eight accrediting com- leges, the Council on chiropractic Education, and missions accredit an even wider range of institu- the National Accrediting Commission of Cosmetol- tions including two-% ear degree and non-degree in- ogy Arts and Sciences), have quite homogeneous stitutions, home study -choolsboth degree and constituencies while others (especially the Nation- non-degree types). busines,i schools ;both degree al Home Study Council and, to some extent, the Se- and non-degree types'. trade and technical schools nior Commission of wAsc), have a much more di- (both degree and non-degree types), bible colleges, verse set of member institutions. chiropractic colleges, cosmetology schools, continuing education and training programs in foreign lan- Variety of institutions accommodated guages, public speaking, hypnosis, truck driving, financial planning, massage, child birth education. From time to time, accrediting commissions have and banking been criticized for too much sameness, and too little

12 4 4 DISPLAY 1 Number of Accredited Postsecondary Institutions in California by Leue,Type, and Accreditation, 1988 Public Private, Non-Profit Private, Fr-Profit

Baccalaureate 30 Senior Commission, 99 Senior Commission, 3 Senior Commission, degrees and WASC WASC W kSC above 5 Council on Chiropractic 1 National Home Education Study Council 6 American Association 7 National Association of Bible Colleges of Trade and Technical Schools

Awards of less 106 Junior Commission, 20 Junior Commission, 3 Junior Commission, than four years WASC WASC WASC but at least 13 National Association two years of Trade and Technical School 10 Association of Independent Colleges and Schools 1 National Home Study Council

Awards of less 7 Junior Commission, 2 National home 230 National Accreditin than two years WASC Study Council Commission of 1 American Association Cosmetology Arts and of Bible Colleges Sciences 10 Accrediting Council 203 National Association for Continuing of Trade and Education and Training Technical Schools 150 Accrediting Council for Continuing Education and Training 45 Association of Independent Colleges and Schools 10 National Home Study Council

Source'California Postsecondary Education Commission

The variety of accrediting associations allows for WASC, sr accredits only institutions that grint the some degree of specializing. The National Associa- baccalaureate and higher degrees. The process tion of Trade and Technical Schools accredits only these associations must go through in order to be proprietary schoolsThe National Home Study recognized by the natior..11 Council on Postsecond- Council accredits only correspondence schools, and ary Accreditation or the United States Department

13 DISPLAY 2 Accrediting Associations Recognized by the Federal Department of Education That Accredit Postsecondary Institutions Based and Operating in California

ACCREDITING COMMISSION FOR COMMUNI'IY AND ASSOCIATION OF INDEPENDENT COLLEGES AND JUNIOR COLLEGES, WASC: The Western Associa- SCHOOLS (AICS): The Accrediting Commission of tion of Schools and Colleges is one of six r-lional AICS operates within the corporate structure of the accrediting associations covering the United States, Association.AICS is a national, non-profit educa- whose purpose is continual improvement of edu- tional association comprised of institutions accred- cation and cooperation among educational insti- ited by the Commission. The Commission accredits tutions. WASC accredits institutions in California, eligible institutions in the United States and its Hawaii, the Federated States of Micronesia, the territories which offer programs that prepare stu- Commonwealth of the Northern Marianas, the dents for careers in business or business-related Marshall Islands, the Republic of Palau, Guam, professions.It also accredits schools outside the American Samoa and other areas of the Pacific Ba- United States if their organizational structure and sin. WASC is composed of three separate accrediting program of instruction are comparable to those in commissions -- the two cited here and the Accred- this country iting Commission for Schools, which is responsible for accrediting secondary and some elementary COUNCIL ON CHIROPRACTIC EDUCATION ICCE): schools. CCE is a national organization advocating high standards of quality in chiropractic education, es- The Accrediting Commission for Community and tablishing criteria of institutional excellence for Junior Colleges of WASC provides accreditation ser- educating primary health care chiropractic physi- vices for one and two-year postsecondary education- cians, inspecting and accrediting colleges through al institutions in the region described above. The its Commission on Accreditation, and publishing Commission evaluates institutions; specialized pro- lists of those institutions which conform to its stan- gram accreditation is furnished through other dards and policies. agencies. NATIONAL ACCREDITING COMMISSION OF COS- ACCREDITING COMMISSION FOR SENIOR COLLEGES METOLOGY ARTS AND SCIENCES (NACCAS): NACCAS AND UNIVERSITIES, WASC: WASC's "Senior Corn - accredits private postsecondary schools and depart- mission" accredits degree-granting institutions and ments of cosmetology arts and sciences located the baccalaureate and graduate levels throughout within the United States jurisdiction. the WASC region described above. NATIONAL ASSOCIATION OF TRADE AND TECH- NICAL SCHOOLS I NATTS): N ATTS is a voluntary as- ACCREDITING COUNCIL FOR CONTINUING EDUCA sociation of private schools The primary purpose of TION AND TRAINING (ACCET): Formerly named the the Accrediting Commission is to establish and Council for Noncollegiate Continuing Education, maintain high educational standards and ethical the Council is a voluntary group of educational or- business practices in its field. Only private postsec- ganizations established in 1974 to assess the qual- ondary residential schools with trade or technical ity of continuing education programs in the noncol- educational objectives are eligible for accreditation legiate, noncredit field.

NATIONAL HOME STUDY COUNCIL(NI-1SC) The tMERICAN ASSOCIATION OF BIBLE COLLEGES Accrediting Commission of the NHSC establishes (AABC): AABC is an autonomous league of colleges educational, -"- ical, and business standards: it ex- seeking to enhance Christ-centered, biblically- amines and evaluates home study schools in terms based higher education in North America. AABC of these standards, and accredits those that qualify accredits private, non-profit institutions at the bac- The Commission is recognized to accredit private calaureate level: its authority does not extend to and non-private correspondence institutions at the accrediting institutions at the graduate level. degree and non-degree level.

Source:California Postsecondary Education Commission.

14 4i j of Education requires that they demonstrate a need preciably in the proportion of their institutional for their services that is not being served by some membership that is comprised of California institu- other agency: tions.Information in Display 4 on page 17 indi- Duplication of accrediting in the same general cates, for example, that the two regional commis- area is to be avoided since it invites inconsis- sions in WASC have a very large California repre- tent and contradictory standards and accredit sentation while AABC and AICS, both national coming actions and thus leads to confusion on the missions, have only 7 percent and 5 percent, respec- part of students, institutions, and the public tively, of their institutions in this State. (Council on Postsecondary Accreditation, An accrediting agency discharges its oversight re- 1982). sponsibilities most directly when it takes a formal

.it is unlikely that more than one association action regarding an institution under its purview or agency will qualify for recognition 111 in a When a commission takes an action to accredit, re- defined geographical area of jurisdiction or (2) new an accreditation, place an institution on proba- in a defined field of program specialization tion, or revoke its accreditation, the full comple- within secondary or postsecondary education ment of its resources (team visit, staff analysis, con- (United States Department of Education, ferring with the leaders of the institution. delibera- 1988). (A complete set of the federal Criteria tion by the commission) are usually brought into and Procedures is reproduced in Appendix C.) the decision-making process. Thus, the amount of attention paid to its member institutions is indi- Variety of institutional membership among accred- cated by the number of formal actions a commission iting associations as well as within individual asso- takes. ciations is not the only important difference to note. Associations differ in size of membership, composi- The size of staff and the size of a commission's oper- tion of the decision-making body (commission, ational budget are also indicative of the level of council), size of staff and workload, and the rigor of oversight an accrediting organization is able to pro- association standards and accrediting procedures. vide. Display 5 on page 18 reduces the information As their membership and purview are limited in about the size of staff and number of visits to two scope, so these other factors sometimes limit an as- coefficients in order to simplify the comparison of sociation's perspective. These limitations then may different sized accrediting associations. affect an association's effectiveness in areas of re- The first (Staffing Level) indicates the amount of sponsibility the State has expected the accrediting staff attention available to prepare each decision body to discharge. as indicated by the number of available staff divided by the number of actions taken. Size and scope of accrediting agencies The second (Monitoring Level) indicates a level of attention individual institutions received from The size and scope of an accrediting agency in their accrediting commission as measured by the terms of the number and types of institutions it number of official actions taken by the commis- covers can affect the quality of oversight it provides sion divided by the number of institutionsTo these institutiors. Some agencies have relatively help provide some context for understanding the few institutions to assess These institutions are significance of this number, it is useful to com- homogeneous and the number of institutions per pare it with the coefficient produced by a com- staff member is relatively low The latter factor es- mission that averages an official review of an in- pecially (a low number of institutions per staff stitution every five years (i.e., 0.2) or every ten member) would tend to aid effective assessment years (i.e., 0.1). and ongoing monitoring of the institutions. In each case, the higher the coefficient is. the more Display 3 on page 16 shows the degree of variation positive the indicator if one assumes that more ex- in the total size of membership, and the type of internal evaluation is a good practice stitutions involved. As in decisions regarding the licensure of an insti- The accrediting associations, which include both tution to operate in a state, so also in decisions re- regional and national associations, also vary ap- 4, 15 DISPLAY 3 Types and Number of In,titutions Accredited

Association Degree Public Private Total

Nation Al Accrediting Commission Degree 0 0 0 of Cosmetology Arts and Sciences Non-Degree 0 1,802 1,802 Total 0 1,802 1,802

National Association of Trade Degree 0 210 210 and Technical Schools Non- Degree 0 1,042 1,042 Total 0 1,252 1,252

Association of Independent Colleges Degree 0 381 381 and Schools Non-Degree 0 759 759 Total 0 1,140 1,140

Accrediting Council for Continuing Degree o 0 0 Education and Training Non-Degree 0 1,367 1,367 Total 0 1,367 1,367

Accrediting Commission for Degree 117 24 141 Community and Junior Colleges, Non-Degree 7 0 7 WASC Total 124 24 148

Accrediting Commission for Degree 36 104 140 Senior Colleges and Universities, Non-Degree 0 0 0 WASC Total 36 104 140

American Association of Degree 0 86 86 Bible Colleges N on- Degree 0 1 1 Total 0 87 87

National Home Study Council Degree 0 7 7 Non-Degree 4 59 63 Total 4 66 70

Council on Chiropractic Education Degree 0 15 15 Non-Degree 0 0 0 Total 0 15 15

Source:California Postsecondary Education Commission.

garding the accreditation of an institution, complex can be viewed as some indicator of the depth to issues of quality and institutional integrity are at which an association goes to protect both its institu- stake. In the case of licensure, the very existence of tions and the educational consumer the institution may be at risk: in the case of accred- Display 6 on page 19 shows the number of meetings itation, the reputation of the institution, its status they hold each year, the length of these meetings, and its access to federal funds all may be affected. and the number of actions taken at themWhile The amount of time an accreditation commission such meetings nearly always include association has available to deliberate such weighty matters business other than accreditation actions, the aver-

16 46 DISPLAY 4 Number of Institutions and StudentsServed by Each .-1' crediting Association, Total Region and California

Number of Number of Area Institutions Students

National Accrediting Commission Nation 1,802 135,715 of Cosmetology Arts and Sciences California 230 17,300

National Association of Trade and Nation 1,252 590,000 Technical Schools California 223 est 104.000

Association of Independent Colleges Nation 1,140 667,445 and Schools California 57 63,631

Accrediting Council for Continuing Nation 1,367 1,000,000 Education and Training California 160 est. 100,000

Accrediting Commission for Community Region 148 1,284,282 and Junior Colleges, WASC California 136 1,261,329

Accrediting Commission for Senior Region 140 >565,000 fte Colleges and Universities, wASC California 132 >535,000 fte

American Association of Bible Colleges Nation 87 29,575 California 6 2,026

National Home Study Council Nation 70 1,306,000 California 14 29,000

Council on Chiropractic Education Nation 15 9,881 California 5 2,558

Source:California Postsecondary Education Commission.

age number of actions per meeting compared to the the Western Association of Schools and Colleges length of these meetings provides an approxima- has an average of only 12 accreditation reviews per tion of the range found in the depth of review en- day; the National Home Study Council has eight: gaged in by the decision-making body prior to its and the Council for Chiropractic Lineation has an action regarding the accreditation status of its in- average of less than 1 per day stitutio ns. Display 7 on page 20 shows the number of adverse The variation among accrediting agencies is con- actions taken by the nine agencies during the last siderable. The National Accrediting Commission year throughout its region and solely in California. of Cosmetology Arts and Sciences, for example, An adverse action such as placing an institution on which meets for seven days at a time three timesa probation. or show cause, demonstrates a firmness year, must consider and vote upon 41 accreditation in a commission's maintenance of its standards reviews per dayThe Accrediting Commission of While there appears to be no basis for assuming the National Association of Trade and Technical that any particular level of adverse actions should Schools is required to consider 23 actionsper day be achieved by an association that is firmly uphold- In contrast, the agenda of the Senior Commission of ing its standards, a comparatively low rate of ad

17 4 DISPLAY 5 Accrediting Commission Staff, Workload, and Budget

Number of Number of Staffing Number of Monitoring Annual Association Institutions Staff Level Actions/Year Level Budget National Accrediting Commission of Cosmetology Arts and Sciences 1,802 27 03 864 47 $2,750,000 National Association of Trade and Technical Schools 1,252 20 .05 405 32 1,300.000 Association of Independent Colleges and Schools 1,140 15 .03 450 39 400,000* Accrediting Council for Continuing Education and Training 1,367 19 .01 150 11 1,500,000 Accrediting Commission for Community and Junior Colleges, WASC 148 2.5 08 30 20 325,331 Accrediting Commission for Senior Colleges and Universities, WASC 140 4.5 05 90 64 449,793 American Association of Bible Colleges 87 4 .08 50 .57 265,000 National Home Study Council 70 3 12 26 .37 610,000 Council on Chiropractic Education 15 4.5 1 13 4 .27 225,000

'AICS annual budget excludes staff sa lanes. Source: California Postsecondary Education Commission.

verse actions might be cause for questioning the ferences regarding the stability of the institution, diligence of an accrediting organization. the integrity of its programs and administration, and the probity of its dealings with potential and enrolled students strongly call into question Cali- fornia's policy of total exemption from direct State Variations in critical accreditation oversight of the 764 private institutions that are standards and procedures currently accredited by these agencies Stability of the institution The foregoing information on differences in composition, size, and workload of the nine accrediting Of the 44 accredited private postsecondary institu- commissions aids in understanding why variations tions that ceased operating in California during the in the oversight of accredited institutions occur A past year, 15 were accredited by the Association of further examination of a different aspect of these Independent Schools and Colleges, as noted earlier, commissions -- the variation in accreditation stan- and 12 were accredited by the National Association dards and practices -- reveals more fundamental of Trade and Technical Schools.By comparison, elfferences that bear directly upon California'scon- each of the two postsecondary commissions of the cern for the integrity of postsecondary institutions Western Association of Schools and Colleges had and the protection of educational consumers.Dif- only one closure during this time, although corn-

18 DISPLAY 6Accrediting Commissions' Length of Meetings, Compared With the Number of Actions Number of Length of Number of Ac- Association Meet ngs/Year Meetings National Accrediting Commission of Cosmetology Arts and Sciences 3 7 days 288 National Association of Trade and Technical Schools 3 6 days 135 Association of Independent Colleges and Schools 3 5 days 150 Accrediting Council for Continuing Education and '- 'raining 3 3-4 days 50 Accrediting Commission for Community and Junior Colleges, WASC 2 2 days 15 Accrediting Commission for Senior Colleges and Universities, WASC 3 2.5 days 30

American Association of Bible Colleges 1 3 days 19 National Home Study Council 2 3 days 23 Council on Chiropractic Education 2 4 days 2

Source:Califorr.ia Postsecondary Edw. tion Commission.

bined they accredit more than twice the number of tion is adequately monitoring the financial health California private institutions accredited by the of its institutions. A combination of at least three Association of Independent Schools and Colleges, elements in the area of financial accounting and re- and they accredit slightly more than half the pri- porting is necessary to provide responsible over- vate institutions accredited by the National Associ- sight of this aspect of institutional life: ation of Trade and Technical Schools. 1. An audited financial statement at the time of A number of the nine agencies have standards for initial accreditation and at each renewal as well assessing the financial health of their institutions. as at regular intervals (not less often than bien- Several have fairly demanding financial reporting nially) between accreditation visits. requirements, but some have neither standards nor a demanding reporting procedure. The Postsecond- 2. Published criteria for judging the financial ary Education Commission asked the agencies if health of an institution; and they routinely require an audited financial report 3. A procedure for more closely monitoring and of their institutions at times of initial accredita- working with a financially weak institution tion, renewal of accreditation, for annual reports to To a large extent, the American Association of the commission, and/or at other times the commis- Bible Colleges exemplifies these characteristics. It sion may designate.The responses varied, as requires audited financial statements (except for shown in Display 8 on page 21 its annual reports), it includes general criteria on The requirement of an audited finr ncial report in financial health among its guidelines, and it has a itself may be a strong indication, buy. _ertainly nota published procedure for monitoring marginal insti- sufficient guarantee, that an accrediting associa- tutions. In its Manual on Procedures, Crtterta, and

t_ 19 DISPLAY 7Adverse Actions Taken ,-,,ring the Most Recent Year (Fall 1988)

In the Nation or Region In California Number of Total Adverse Number of Total Number Total ;Adverse Institutions per California Actions in Institutions per Association of Institutions Act ons Adverse ActionInstitutions California Adverse Action National Accrediting Commission of Cosmetology Arts and Sciences 1,802 15 120 230 5 46 National Association of Trade anti Technical Schools 1,252 38 33 223 10 22 Association of Independent Colleges and Schools 1,140 16 71 57 2 9 Accrediting Council for Continuing Education and Training 1,367 10 137 160 0 160* Accrediting Commission for Commu- nity and Junior Colleges, WASC 148 4 37 136 3 45 Accrediting Commission for Senior Colleges and Universities, WASC 140 11 12 132 9 15

American Association of Bible Colleges 87 7 12 6 0 6*

National Home Study Council 70 13 31 14 4 4

Council on Chiropractic Education 15 1 15 5 1 5

Average number of institutions Average number of institutions per adverse action region wide = 41 per adverse action in California = 26

* These numbers are provides only for comparative purposes. They would be orrect if the Commissions had each taken one adverse action during the year. Source:California Postsecondary Education Commission

Policies, the association provides detailed guide- the following procedure for monitoring a marginal lines on business and financial administration that institution. cover ten topics such as the organization of business Institutions which evidence weakness in one functions, internal control, fund accounting, man- or more areas of financial stability will receive agement of investments, and budget (including six letters of concern from the AABC. A written re- types of budget data that should be provided to the sponse declaring the institution's financial association). These financial health criteria are progress or regression is to be submitted to the part of 11 criteria that the association uses for gath- Review Committee prior to its next meeting. ering evidence on the stability of the accredited in- Deteriorating conditions after the initial let- stitutions. They are used to examine 'stability in ter of concern and institutional response could financial resources and management practices," lead to any or all of the following actions. and "budget patterns" (1988, p. 11). 1. A request for a detailed recovei y plan and Under a section of its manual titled "Maintaining progress report, Membership Standards," the association provides

20 DISPLAY 8 Accrediting Association Requirements Regarding Audited Financial Statements

Initial Renewal of Association Accreditation Accreditation Annual Report Other National Accrediting Commission of Cosmetology Arts and Sciences No No No No National Association of Trade and Technical Schools No No No Yes Association of Independent Colleges and Schools Yes Yes No Yes Accrediting Council for Continuing Education and Training No No No Yes Accrediting Commission for Community and Junior Colleges, WASC Yes Yes Yes No Accrediting Commission for Senior Colleges and Universities, WASC Yes Yes No Yes American Association of Bible Colleges Yes Yes No Yes National Home Study Council Yes No No Yes Council on Chiropractic Education Yes Yes Yes Yes

Source:California Postsecondary Education Commission.

2 The assignment of an AABC approved re- single most complete indicator of institutional sta- source person(s) for on-site counsel, at the bility. A deteriorating financial report nearly al- institution's expense; and ways precedes abrupt school closures Many of the 3. The visit of a supplementary evaluation negative consequences of this type of closure can be team by the Association. measurably diminished but only if there is positive intervention by the accrediting -ommission or by The procedures and standards of the Accrediting the State licensing agency.This intervention Council for Continuing Education and Training would have to occur some time prior to the point and of the National Association of Trade and Tech- that students are put out on the streets with thou- nical Schools offer approaches that contrast sharply sands of dollars in federal and State loan obliga- with those of the American Association of Bible tions and only a partially complete educational pro- Colleges. These commissions require no audited re- gram. ports either as a part of the institutions' accreditation process or as a part of a periodic monitoring re- Monitoring the financial conditions of private insti- quirement, have no published criteria for judging tutions is difficult to do under the best of conditions: financial health. and no procedure in their guide- detecting a struggling institution on the serge of lines for monitoring weak institutions. collapse is even less likely to occur for accrediting associations which have no financial heaith crite- the reason that the State has been and should con- ria,'d have inadequate guidelines for ti.eir tinue to be interested in the financial condition of tutions and evaluators. private institutions is that a financial report is the

21 The integrity of institutional "branch campus" of a midwestern college accredit- programs and administration ed by the National Association of Trade and Tech- nical Schools. At the time the California branch Institutional integrity has many dimensions.It is was being established, the college, which operates a characteristic the lack of which is often easier to 24 hours a day, was being sued by its students for observe than its presence is to measure. In the sim- providing alleged inadequate educational services plest of definitions it is made up of three compo- at the home campus. Nevertheless, the National nents: Association of Trade and Technical Schools allowed 1. The institution demonstrates a clarity and pre- the college to open the "branch campus" and five eminence of educational mission in the opera- auxiliary classrooms in California in locations as tions of the institution; distant as 100 miles Am each other with only a preview visit to three of the six locations by a single 2. The institution represents itself accurately and representative of the association. Thus the school's honestly to its clienteles: and eligibility for federal and State aid was available 3. The institution operates its programs ethically from the first day of operation (In contrast, new in- and is accountable for every aspect of its pro- stitutions are required to operate a minimum of two grams. years before qualifying to participate in future student aid programs.)Its tuition for an eight weeks The integrity of an institution's programs and ad- course is $3,390, and students borrow up to $4,500 ministration can bc. compromised when it expands in order to complete the five weeks residence por- too quickly. For example, between 1980 and 1986, tion of the course if they come from the San Joaquin Ade 1phi Institute, accredited by the Association of Valley. Approved for student aid in July 1988, the Independent Schools and Colleges, opened 20 cam- school already had an outstanding loan total of ap- puses in six states. Eight of these campuses were proximately $3,000,000 in less than four months of opened in California within a period of four years operation. (1982-1985).All were accredited immediately "Jubilee" came to the attention of the Postsecond- Ade 1phi filed for bankrupi,cy in 1987, leaving an ary Education Commission as the result of a stu- estimated $5 million in unpaid tuition refunds dent complaint. The Commission's subsequent in- owed to students. Yet Adelphi's expansion was ac- quiry determined that a number of dissatisfied stu- complished within the procedures and guidelines of dents could not find employment, despite the fact the Association of Independent Schools and Col- that an official school representative had informed ,es, which require a staff verification visit "prior one telephone inquirer that their placement rate to interim inclusion of a branch within the scope of was 99 percent. The school's accrediting commis- an institution's grant of accreditation" and a full sion places a high value ,)n the integrity of the in- on-site evaluation within six months of the date of formation, data, and statements provided by an in- its interim inclusion. stitution in its accreditation process: and it maintains this same standard for information provided Probity of an institution's dealings kith students to students in the recruiting process"No overt or implied claim or guarantee of ,ndi idual employ- The probity of an institution's dealings with poten- ment is made at any time " Although a claim of "99 tial and enrolled students is a critical factor in the percent placement" is not exactly a guarantee of integrity of an institution. This aspect of an insti- employment, it must call into question the integri- tution's operations is especially important for voca- ty of the institution tional schools. The policy of an accrediting body like the National Integrity is compromised when an institution Association of Trade and Technical Schools allow- makes promises on which it cannot deliverFor ex- ing distant "branch campuses" to begin operation ample, "Jubilee" Truck Driving School (fictitious without a full re''w but with the benefit of accred- name) operates a school with five "auxiliary class- itation and the eligibility to participate in federal rooms" in Southern California. Licensed to operate student aid encourages (or at least permits) the pro- by the California Department of Motor Vehicles, liferation of marginal schools and the exploitation the Southern California site is technically a

22 of students. The maintenance of a certain level of abstracted from a longer list of items, but care was probity among accredited institutions depends on given in the effort to extract all each association the thoroughness of an accreditation agency's pro- had to say on this limited topic. cedures, the clarity of its criteria, and the level of The section from the WASC standard is clearly more monitoring of institutional activity an accrediting comprehensive, more specific, and provides a ra- commission is able to conduct. Additionally, a well - tionale for the requirement of general education publicized and efficient student complaint pro- within a particular level of degree -- the bachelor's cedure allows responsible agencies to detect serious degree. (The senior commission does not accredit breeches of institutional integrity. Such does not institutions offering the two-year undergraduate clearly exist at present but could be more effective- degree ) ly promoted by improved collaboration between accrediting associations and the State's licensing The NHSC guideline essentially instructs an institu- agency. tion to "identify and describe" what is "necessary to meet the requirement for each degree" without re- Wide variation in educational standards quiring any particular amount or rationale for its inclusion in the degree program. Apparently any In io division of the guidelines, -riteria or stan- amount of core curriculum at any level would be ac- dards used by accrediting associations is the wide ceptable. range of quality more apparent than in the area of educational programs and degrees. As we discuss Summary later in Part 5, some associations vhich accredit degree-granting institutions rely almost entirel:r on The variations among accrediting association stan- the state's licensing agency to set the standards and dards and procedures cited here are only a sample monitor the quality of those degree programs. of the areas of important differences.Additional examples could be provided in the areas of gover- Among those associations that do provide degree nance, graduation requirements, evidence of qual- program standards, the variation is extreme. One ity in curriculum, and faculty qualificationsThe assc..iation -- the WASC senior commission-- pro- point to be drawn is that in the State's full reliance vide, extensive details regarding the objectives, on accreditation it is depending on a group of non- structure and content of degrees at both the under- governmental agencies with a wide range of stan- graduate and graduate levels, while the Accredit- dards and various levels of reliability to carry out ing Commission of the Home Study Council pro- State constitutional responsibilities.There is no vides general guidelines applicable to both under- single point of accountability. At times these re- graduate and graduate programs. sponsibilities are conducted with great care and ef- Display 9 on page 24 compares just one of several fectiveness: at other times serious problems have subsections of the educational program require- arisen When accrediting agencies are lax in their ments, the general education or core curriculum re- oversight, tremendous harm can occur bect.use so quirement. For both accrediting associations, the much responsibility has been delegated to them portion of the standard on educational program is

23 DISPLAY 9 Standards on General Education of the Accrediting Commission for Senior Colleges and Universities (wASC) and the National Home Study Council

Accrediting Commission for Senior Colleges and Universities, wAsc National Home Study Council Standard 4.BUndergraduate Programs IV. Program Requirements The undergraduate program is designed to give students a substantial, coherent, and articulated exposure to the major, broad domains of higher education. 2.Core Curriculum Institu' ions must identify With a few exceptions, Bachelor's degree programs have a tripartite and describe the analytical. structure: the General Education segment requires students to master communications, and enabling skills for autonomous learning and to develop an understanding quantitative skills and of the fundamental areas of knowledge; the Major segment requires Levels of achievement students to achieve depth in a specific area. and the Electives segment necessary to meet the provides the opportunity for students to select diverse exposure to other requirements for each areas of interest. .. . degree program. Adequate performance 4.B.2 undergraduate studies ensure, among other outcomes la) measures of student competence in written and oral communication: (6 quantitative skills; mastery of these skills and (c) the habit of critical analysis of data and argument. In addition must exist and students to these basic abilities and habits of mind, goals also include an must successfully appreciation of cultural diversity.... demonstrate mastery of them as a requirement 4.B.4 The general education segment of the undergraduate program for earning a degree. is based on a rationale that is clearly articulated, informs the design of all courses, and provides the criteria by which the appropriateness of each course to the general education segment is evaluated. 4.B.5In setting the pattern for general education, an institution specifies the minimum number of general education units to be required for all undergraduate students working toward any Bachelor's degree. Where exceptions are provided to special groups of students (e.g,through double counting), they are clearly stated and justified. 4 B.6 General education is integrated with the entire undergraduate program and includes offerings at the upper-division level. 4.B 7 he general education program ensures adequate breadth for all students pursuing the Bachelor's degree. Offerings are included that focus on the subject matters and methodologies of the humanities, the natural sciences (including mathematics), and the social sciences: the program may also include courses that focus on the interrelationships between subject matters in these three major di: ciplinary 4.B.8 i le institution has clearly articulated policiesor the transfer of credit to ensure that students who transfer in with general education course credits meet its own standards for the completion of the general education requirement. Where patterns of transfer from specific community and junior colleges are established. efforts are undertaken to formulate articulation agreements regarding genera! education 4.B.9The equivalent of two years of study toward the baccalaureate degree will be in general education and unrestricted electiveseven if this extends the basic program. Instit itions which offer programs that do not meet this standard bear the burden: of proof that the tripartite goals of the baccalaureate are otherwise met.

Source: Accrediting Commission for Senior Colleges and Unit ersittes I W ASC ) and the National Home Study Council

24 5U 4 State RelianceonAccreditation

CALIFORNIA relies on accreditation to accomplish The rationale for this exemption has never been three basic State purposes: made explicit, but it seems reasonable to assume that at the time this exemption was first introduced 1 Maintaining a standard of quality, probity and stability among the accredited institutions that in 1958, the rather comprehensive list of accredita- is at least equivalent to the State's oversight tion standards more than adequately covered the minimal State licensing requirements then in exis- standards, tence. As State consumer protection laws have de: 2. Determining eligibility for federal and State veloped in the past decade or so and new accredit- student aid in cooperation with the United ing bodies have begun operating, this apparent ra- States Department of Education, and tionale has required closer examination. 3. Providing a qualitative filter for individuals ap- The State Education Code exempts both accredited plying to take professional licensing examina- degree-granting institutions and non-degree-grant- tions. ing vvcct.:- nal schools from most statutory require- As a rule, the first two of these purposes rely on in- ments made of nondl-credited institutionsSection stitutional accreditation and are most directly rele- 94310 1 provides a means whereby degree-granting vant to this study of the State's reliance on institu- institutions "accredited by a national accrediting tional accreditation. Professional licensure, with a agency recognized by the United States Depart- few exceptions, generally relies upon programmat- ment of Education, the Western Association of ic accreditation, and that type of accreditation lies Schools and Colleges, or by the Committee of Bar outside the scope of the present investigation. Examiners of the State of California" are authorized to operate in California without further evaluation of their standards or their compliance with State consumer protection standards. In much the same way, Sections 94311c and 94312 (letter 1) exempt vocational schools from similar standards, Exemption from State oversight standards and Section 94315 provides the same exemption for continuing education entities. California relies upon accreditation to fulfill its licensing responsibilities by exempting accredited The significance of these exemptions can best be institutions from detailed oversight by the State understood by reviewing the scope and purpose of Superintendent of Public Instruction and the Su- State licensure of postsecondary institutions In perintendent's delegated licensing agency -- the California. this -cope and purpose have changed Private Postsecondary Education Division in the over time, as Appendi. E notes One of the first ac- State Department of Education. tions taken by California's Legislature when it was first formed in 1850 ,A as to establish a means for Accreditation by a national or applicable re- chartering collegesthe Act of 1850, as that land- gional accrediting agency recognized by the mark statute has become known. required institu- United States Department of Education shall tional stability and competent governance and be accepted by the superintendent as evidence grantedthe trustees of institutions chartered un- of compliance with the minimum standards der this Act the right to grant degrees. established by the accrediting or licensing agency and therefore as evidence of compli- Any College may be incorporated in this ance with the minimum standards -Reified in State, according to the provisions of this Act, the provision, of this section (Education Code by the Supreme Court of the State, upon appli- Section 94312, letter 1). cation.

25 tion, to waive the licensure process for accredited In case the Court shall be satisfied that the California institutions. proposed College within this State has an en- For the purpose of Lhis subdivision, the Super- dowment of twenty thousand dollars, and that intendent of Public Instruction may rely on the proposed trustees are capable men, then the findings of an accrediting agency general- the Court shall, by an instrument under its ly accepted by the class of institution con- seal, declare the College incorporated,.. cerned .. (1958 Amendments to the Educa- tion Code, Section 24206M)

Every diploma granted by such trustees shall The Education Code was further amended in 1963 entitle the possessor to all the immunities to remove entirely the discretionary licensure of ac- which by usage or statute, are allowed topos- credited private institutions from the Superinten- sessors of similar diplomas, granted by any dent and replace it with categories for accredited University, College, or Seminary of learning degree-granting (Section 94310 1 i and accredited in the United States (California Statutes. Act vocational institutions (Section 943116 which ex- of 1850). empted them from all State licensing standards. Currently this law removes about 590 private insti- By the second half of the 1900s, this limitedpur. tutions from State licensing review. As shown in view of the State had grown to require fiscal ac- Display 10 on the opposite page, these private insti- countability, consumer protection, and institution- tutions are accredited by eight of the accrediting al quality standards but only for nonaccredited in- associations discussed in Part Three of this report. stitutions. As pointed out earlier, the apparentas- (The 230 accredited cosmetology schools accredited sumption was that accrediting bodies would pro- by the National Accrediting Commission of Cosme- mote these standards among their constituencies. tology Arts and Sciences are not included here be- The expansion of postsecondary education opportu- cause the policy of the State Board of Cosmetology nities after the Second World War had been fueled does not exempt them from State review.) by a series of G.I. Bills. The veterans' financial aid programs were successful beyond anyone's expecta- What is the result of this exclusion from State re- tions. Twenty times the expected number of veter- view? It means th. State Ls unable directly to ans actually took advantage of their educational exercise its responsibilities inherent in the pur- benefits and new institutions (especially technical poses of State licensure. The purposes of State li- schools) flourished (Chambers, 1983, p. 239) censure are to provide consumer protection to the many clients of education by As the federal government took the lead in providing financial aid to returning veterans, so it also Certifying the integrity of the institution's lead- took the lead in determining at which institutions ership. it would be acceptable for veterans to spend their 2 Determining that the institution is stable; federal aid. The Veterans Administration was first given the authority to approve these institutions 3 Ensuring the integrity of academic degrees and other t:ducational certification; In 1952 this VA approval process was assignedto each state and the federal Office of Education was 4Mai n ia n ng, complete and accurate information asked to publish a list of -recognized" accrediting abouthe educational institutions operating agencies and associations that the Commissioner of within its borders. Education deemed to be -reliehle" authorities of quality This list became the primary basis for de- 5Guaranteeing an expeditious response to student complaints. termining institutional eligibility for federal funds from that time to the presentCalifornia licensing 6 Providing for equitable ttion refunds: laws appear to have been influenced by these 7 Providing for the maintenance of academic events at the federal level. In 1958 a provision was records in case of school closure. and added to the State's statutes which allowed the Superintendent of Public Instruction, at his discre- 8 Protecting students against loss of time and money due to institutional fraud or bankruptcy.

5 (3 26 DISPLAY 10 Number of Accredited Private Postsecondary Institutions in California Exempted from State Regulations Degree Non Degree Accrediting Agency Granting Granting

Accrediting Commission for Senior Colleges and Universities, WASC 102 0 Accrediting Commission for Community and Junior Colleges, WASC 23 0 American Association of Bible Colleges (AABC)) 6 0 Accrediting Council for Continuing Education and Training (ACCET) 0 160 Association of Independent Colleges and Schools (AICS) 12 45 Council on Chiropractic Education (CCE) 5 0 National Association of Trade and Technical Schools ( N A rTS) 20 203 National Home Study Council ( misC) 2 12

Source.California Postsecondary Education Commission.

Exemption rniiii State licensure makes sense only Student financial aid is big business in California. when the State can be assured that these purposes Over the past five years the amount of public funds- are being adequately carried out. Our examination directed to students through federal and State fi- of nine accrediting associations reconfirmed what nancial programs has increased from $596 million the literature on accreditation has often stated -- per year in 1979-80 to $1.5 billion in 1987-88.In that voluntary accrediting associations, for the most addition to making it possible for independent part, incorporate within their standards the con- students with little in the way of financial re- cerns reflected in- these State licensure objectives, sources to attend college, the easy access to public but they neither accept the role of a compliance funds has enabled some profit making institutions, agency in enforcing the standards or statutes re- with more attention to profit than to educational lated to these objectives nor do they accept the re- integrity, to expand rapidly, as illustrated in Part sponsibility for communicating with enforcement Three by Adelphi Institute and "-Jubilee" Truck agencies any noncompliance they may obse e dur- Driving School ing their institutional assessment processes During the period in which California was moving to total reliance upon accreditation for State licen- Determining eligibility for federal sure and studei.t aid eligibility purposes, some ad- and State funding ministrators at the federal level expressed serious doubts about the abilities of the federally-recog- California relies on accreditation in an indirect nized accrediting associations to protect the inter- manner to determine an institution's eligibility to ests of the public and especially the student con- apply for State student aid funds.The State re- sumer Problems created by the explosi..e growth quires an institution to participate in at least two of new institutions during the 1950s, '60s, and '70s campus-based federal aid programs (e g,the Per- came to the attention of federal legislators, the kins Loan Program any' the College Work-Study Office of Education, the Federal Trade Commis- Program) for which accr iditation is required by the sion, and the General Accounting Office of the U S. federal government. If i- n institution meets this re- Compti oiler General. quirement, then it may also be eligible for its students to receive Cal Grants or California Guaran- In a 1979 report to Congress titled, What Assurance teed Student Loans. Does Office of Education's Eligibility Process Pro- vide?, the General Accounting Office summarized

27 the problems it found in reviewing accredited insti- they relate to student retention and performance-- tutions participating in federal programs (p. 14): one of the most powerful predictors of successful re- Questionable admission and grading policies; payment on student loans" (1988a, p. 60). False or misleading advertisements; The strong relationship between institutional integrity, educational quality and student acnieve- Failure to provide promised services; ment is generally acceptedThe high correlation Failure to offer listed courses; between deficiencies in these institutional characteristics and student loan defaulters is becoming Use of refund policies resulting in little or no increasingly clear, although information on this tuition and dormitory refunds, correlation is difficult to obtain. The chief reason Use of inadequately trained teachers, and for this difficulty is the minimal level of information sharing among the agt ncies that have relevant Lack of infoi.mation to students on attrition or data 'the accrediting commissions, the Student Aid graduation rates. Commission, and the U S. Department of Educa- In recent years, the number one problem has been tion) and the fact that the State licensing agency the dramatic rise in the default rates on Guaran- has only a minimal role in the oversight of accred- teed Student Loans. Some institutions have default ited institutions and collects al most no data on rates as high as 50 to 60 percent.In California, these accredited institutions. from 1986 through 1988, the total amount of student loans in default rose from $393 million to $612 Indicating quality for purposes million, an increase of more than 28 percent per of professional licensure year (California Student Aid Commission, 1988b) Currently, the sector of postsecondary education The third way in which the State relies on accredi- experiencing the highest default rate-- the accredtation is related to the State's practice of licensing ited, profit-making vocational schools-- is one over certain professionals such as medical doctors, which the State has relinquished its licensing re- nurses, teachers, and attorneys, as well as other oc- sponsibilities. In 1987, the average student default cupations where the health and safety of the State's rate for this group of schools was 33.5 percent with citizens are concerned (e g,barbers and cosmetolo- individual schools reaching default rates as high as gists; marriage, family and child counselors: and 81 percent. These schools, which enroll 10 percent opticians).In the Commission's 1984 report on of the students eligible to receive financial aid,ac- Public Poiicy, Accreditation, and State Approval in count for 35 percent of the total dollars in default in California, the Commission cites 22 occupations California.During the 1987-88 school year, stu- that list education at an accredited institution as a dents in these schools received $462 million in pub- requisite (or an alternative requisite) for State li- lic financial aid fundsIncluded in this total was censure (pp 56-58). $104 million in Pell Grants, an amount which rep- In general, this requirement is made by the State resents 38 percent of the total Pell Grant awards 'icensing board for the occupation concerned. The given in the State and 66 percent greater than the type of accreditation required t institutional or pro - $65 million in grants awarded community college t'essicnal) varies among the licensing boardsFor students in the same year example, although the American Association of The causes of high student default rates have been Psychology accredits psychology programs the exhaustively studied. The chief group of student State's Board of Behavioral Science Examiners re- defaulters is comprised of those that have taken out quires regional accreditation in the licensing of its only one loan and have subsequently dropped out of educational psychologistsFor professional licen- school.In a recent report, the California Student sure in medicine, optometry, podiatry, and pharma- Aid Commission concluded that "institutional ad- cy, the State licensing boards require that appli- missions policies, instructional practices andper- cants must have attended an institution which has formance, the level of support services, and student professional (or programmatic) accreditation. financial aid packages should all be examinedas Professional accreditation involves in two ways the 66 28 concern about the Stat. !'s reliance on institutional among the licensed occupations and professions. accreditation that is the focus if Assembly Concur- The usual arrangement involves (1) a licensing rent Resolution 78. board that reviews the institution or program, (2) an accreditation agency, and (3) a licensing exam- First, in multi-purpose institutions, professional ination for an individualeducated in the accredited accreditation usually relies on prior institution- institution or program Two brief examples will il- al accreditation.In this way it is as much de- lustrate variations from this normal pattern -- li- pendent as the State on an effective institution- censure for the occupation of cosmetology and cer- al accrediting process. A strong professional pro- tification for teaching in the public schools. gram needs the firm grounding of a strong institution, but it is generally beyond the scope of professional accrediting associations ,o inquire Accreditation and the Board of Cosmetology into the administration and financial health of the institution as a whole. The California State Board of Cosmetology does not rely on accreditation at all.Its approval authority Second, professional accreditation becomes in- of private cosmetology schools and its licensing of stitution-wide accreditation when it is the only cosmetologists are both completely independent of accreditation a single-purpose institution has the accreditation provided by the National Accred- The American Association of Bible Colleg?s, the iting Commission of Cosmetology Arts and Sci- National Accrediting Commission of Cosmetol- ences (NACI AS). ogy Arts and Sciences, and The Council on Chiropractic Education are all examples Jf pro- The school licensing portion of the Cosmetology Act grammatic accred"ing agencies activf, in Cali- (Chapter 10, Division 3 of the California Business fornia which are the sole accrediting adthority and Professions Code) specifies various State re- for some single purpose institutionsOur requirements for operating a school of cosmetology view of these agencies focuses in large part on including, 1,r example. minimum student enroll- the question of their expertise in assessing insti- ment, school advertising limitations, the length of tutions. the cosmetologist course, school equipment, staff, and fhancial abilityThis statute also cross-refer- The professional licensing of individuals always in- ences private school standards contained in the volves a State licensing board and, for that reason, Education Code, Section 94312. the concerns about the State's reliance on professional accreditation are both somewhat less ger- The Board of Cosmetology currently licenses 266 mane on the one hand yet quite complex and rele- private schools of cosmetology, of which 230 are also vant on the other The concern about the effective- accredited by NACCAS. Before a school is licensed, ness of the assessment carried out by an accrediting the Board conducts inspections to ensure the readi- body may be partially ameliorated by the fact that ness of the school to train cosmetology students professional licensure ultimately results in an ex- This inspection is conducted by a single staff mem- amination of individuals the objecti..e of which is to ber of the Board and reported to the Board for ap- determine their !fitness to practice their occupation. proval. Such inspections are conducted twice a year The accreditations of an institution and its pro- to check for adherence to the laws and regulations grams are mere:,, one kind of several assessments governing the operation of these schools made on the route to the finishing of a pract:,, professional But for some of the occupational areas Accreditation and the Commission the relation hips of licensing boards and accredit- on Teacher Credentialing ing associations give the appearance of adequate The California Commission on Teacher Crede.itial- (or even redundant) institutional review when, in ing (CTC) relies on regional accreditation of higher fact, the ,um of the institutional reviews by the education institutions as a dreliminary indiction various boards and accrediting agencies may not of quality in its process of program approvalThis cover critical aspects of institutional operations reliance is explicit and, although opened for re-ex- The relationship between institutional accredita- amination in recent years, this policy has repeated- tion and professional licensure varies considerably ly been solidly affirmed by the CTC's members

( 29

- . The CTC's procedures of approving teacher educa- institutional self-study, and a visit by a team of tion programs at accredited institutions will cer- experts, which results in a team report and recom- tainly change as a result of recent legislation. Sen- mendation to the Commission for (or against) ac- ate Bill 148,, 1988 requires that CTC adopt "an accreditation. creditation framework...which shall set forth the In the past, these team visits to private as well as policies of the commission regarding the accredita- public institutions have been funded by the teach- tion of preparation programs for teachers and other ers' credentialing fees. Section 44374 of SB 148 al- certificated educators." The language of the legis- lows the Commissionto collect fees from accred- lation clearly expresses the intent that CTC'spro- ited postsecondary education institutions to recover gram approval process, which specifies in ,orne de- any additional costs resulting from the replace- tail curriculum requirements and expected outcomes should be replaced with broader standards ment of program approval with program accreditation " The current lack of institutional fees to that concentrate "on the overall quality of academic support this function is an outstanding exception to and professional preparation. and that holds professional elementary, secondary and postsecondi -y the otherwise universal (hut often criticized) practice of basing program review and accreditation on educators responsible for the quality of preparation." the collection of fees from the institutions involved. Critics of funding accreditation through the assess- The process, which may come to be best described ment of institutional fees believe that the fees cre- as State professional (program) accreditation, will ate a conflict of interest for the accreditor and thus likely be conducted by an in-State accrediting body results in a less rigorous evaluation (Dumke, 1986, yet Lo be selected in much the same way in which p. 104). most accrediting processes are conducted, using an

30 State Oversight and 5 Non-Governmental Accreditation

California's overreliance of Independent Colleges and Schools loulis to on accreditation for oversight state licensing for oversight of degrees

The State of California's short history of relying en- The Commission takes the position that au tirely on accrediting agencies for the oversight of thority for Istitutions to award degrees re the private institutions within their membership sides with the individual stares inasmuch mistakenly casts the issue of oversight as an eith- as the Commission does not accredit de. er/or question: either the State is responsible or the grees or separate degree programs. It ac accrediting body. It is one of the ironies of this cur- credits institutions as a whole. Therefore, rent policy that many of the accrediting agencies if an institution is authorized to award a de- rely explicitly on the State to monitor their institu- gree, the entire institution and all of its tions' compliance with State laws while California other programs must, to a large extent, sup. holds the accrediting agencies responsible for port and feed into that degree. mai-taining standards that are at least equivalent Both associations are quite clear that they regard to these laws. the states as the appropriate source for legal guide- As a general rule, accrediting commissions require lines for degrees. But California's law is deficient that their member institutions continue to comply in this regard. In its Private Postsecondary Educa- with State licensure laws after they are accredited tion Act of 1977, the Legislature expressed its in- This approach is based on the observation that in tent to "protect the integrity of degrees and diplo- matters subject to State licensure, states differ mas," yet it relied on the standards of the various Certain associations tend to treat State licensure accrediting associations to do so, while many of and accreditation as complementary functions them in turn rely on the State Among the associations studied for this report, this In several other sectors of institutionai operation, tends to be more true of the national associations accrediting associations make similar references to than of the two regional commissions, perhaps be- state requirements: cause the range of variation is eater for the na- Accrediting Council for Continuing Education tion as a whole than it is for the several states with- and Training Cancellation and refund policies in the region covered by the Western Association of Schools and Colleges comply with applicable Federal and State laws and regulations Two examples illustrate this point Association of Independent Colleges and Schools. The American Association of Bible Colleges regarding recruitment"An institution shall looks to the states for legal guidelines in the def- conform to the laws and regulations of each of inition of degrees Its manua' states, "Due to the the states in which it operates, and be sure that variations in the legal requirements of states each of its representatives is properly licensed or and differences in regional practices, consider- registered as required by the laws of that state " able latitude is allowed in this matter" and goes National Accrediting Commission of Cosmetol- on to indicate that while the association is not in- ogy Arts and Sciences. "Ownership and manage- different .o the matter of degree titles and con- ment personnel are in compliance with appli- tent, it is guided by the laws of the region cable federal, state, and local laws and regula- Like the American Association of Bible Colleges, tions which apply to all cosmAolog) schools un the Acccrediting Commission of the Association der ownership."

6., 31 National Association of Trade and Technical laws, the State will likely remain unaware of the Schools, regarding change of ownership: "Docu- violation mentation from the state on the status of the As noted in Part Four, accredited cosmetology school after the change of ownership ." schools are not exempt from State licensure. In this These four examples and the discussion about state regard, they are an exception to the rule. The State degree guidelines that preceded them illustrate Board of Cosmetology has a fairly detailed licens- how accrediting associations build the compliance ing process that entails four different phases for with state licensing standards into their acredita- initial licensure Once licensure is granted and the tion standards and procedures. But the determina- schools subsequently achieve accreditation, the tion of whether institutions actually comply with board continues to conduct inspections semiannual- state or federal laws is less easily dealt with. Two ly. In this case, the board is in much closer contact problems exist in this regard: with the schu 's than is the accrediting agency, and the issue of whether the accrediting agency relays First, accrediting agencies do not accept the role State noncompliance matters to the licensing board of enforcing compliance with these lawsWhile accrediting teams are asked to verify an institu- is moot. tion's compliance with state licensing standards, In fields other than cosmetology, however, the this compliance is often simply assumed to occur State unrealistically relies on accrediting agencies in the absence of readily available evidence to to carry out its own responsibilities.Accrediting the contrary. agencies are not uniform in their standards and Second, if evidence of significant noncompliance procedures. Some of them on which the State relies is turned up during the course of a campus visit, in turn rely on the State for certain standards and the breach of law may become material for an ad- guidelines, which currently do not exist, and they verse accreditation action involving the institu- expect the State to be responsible for monitoring in- tion, but it is not reported to relevant state or stitutional compliance with its own standards federal authorities. For example, a Postsecond- Moreover, their ,,..,:y of confidentiality prohibits ary Education Commission staff member ob- accrediting commissions from relaying information served an accrediting commission's discussion in to State oversight officials regarding compliance vi- closed session of a member institution's breach of olations when such violations are discovered. federal lawThe institution appeared to have misrepresented a new off-campus program in order to qualify its students for federal financial aid.Although the accrediting commission was Other types of State oversight continuing to monitor this development closely and seek additional information, it has no policy While California's reliance on accreditation is to alert the federal authorities to the existence of nearly absolute for degree-granting institutions, the noncompliance. This policy of ccnfidentiality for a scattering of accredited institutions the State maintained by accrediting agencies prohibits the does maintain some statutory oversight The activ- release of such information to public authorities ities of these agencies do not cover the uno, erne of In some states, court sanctions have reinforced private accredited institutions nearly as compre- the confidential nature of theinstitution's self- hensively as the accrediting commissions do, but study for accreditation and the visiting team's they involve elements that could contribute to a report (Bender, 1983, pp. 80-81) better licensing system for those institutions They include (1) the State's licensing of California In states like Pennsylvania and Maryland, where branches of out-of-state, accredited degree .granting the state licensing agency is responsible for monit- institutions: (2) the State's data collection efforts oring accredited institutions for their compliance for postsecondary education. (3) institutional licen- with state laws, the policy of confidentiality is less sure as conducted by the Private Postsecondary of a problem. But for the State of California, the re- Education Division of the Department of Educa- sult of this policy is that where an accrediting agen- tion. (4) institutional licensure as conducted by cy may find noncompliance with State or federal other licensing boards. (5) compliance audits. and

32 6,.1 (6) program approval.Display 11 on pages 34-35 In addition to the 600 accredited institutions from summarizes these six types of oversight. which the State collects little information, even less data on student enrollments or degrees award- Licensure of accredited out-of-state institutions ed are collected from the 1,850 nonaccredited institutions (of which about 350 are degree-granting in- Under Section 94310.1b of the EducationCode,the stitutions). State conducts a full review (evaluation team visit) The State's current policy is fairly clear. Informa- of branches of out-of-state accredited colleges and tion is sought from those institutions in which the universities operating in California.This recent large majority of students is enrolled and which re- departure from the State's full reliance on accredit- ceive the largest amount of public funds. The ex- ing agencies for such oversight occurred in 1985 be- ception to this is, as Display 12 on page 36 suggests, cause regional accrediting agencies were, at that that little information is available on the accred- time, giving less than their full attention to "for- ited, non-degree-granting schools through which eign" branches of the institutions they accredited. $356 million in public funds flow.(Estimates of "21e standards and the process the State uses to re- student enrollment:, in these latter schools were ob- view the dozen branches operating in California tainable only from the nine accrediting associa- (five have been reviewed so far) tend to blend ele- tions that cooperated in this study.) ments of both State licensure and non-governmen- Either of two existing State agencies could serve as tal accreditation The State's experience with this ti,'nformation collection agency for these sectors new procedure is limited athis point and there are of postsecondary about which the State now has complaints from a couple of the institutions about little information -- the Postsecondary Education the perceived unnecessary duplication of the review Commission or the Private Postsecondary Educa- of their branch operations. The process, neverthe- tion Division of the State Department of Education. less, represents the State's strongest, mos, thorough assessment process and promises to provide a The Postsecondary Education Commission is di- useful precedent for extending the State's oversight rected by statute to collect information from pub- to its own accredited private institutions. lic postsecondary institutions (EducationCode, Section 66902), to collect, conduct and dissem- inate studies of manpower supply and demand California's data collection efforts (Section 66903[101), and to "develop a compre- for postsecondary education hensive data base insuring comparability of data from diverse sources" (Section 66903(141). In its The State needs information about the number of role of information clearinghouse, the Commis- students enrolled in postsecondary education and sion collects and processes the annual federal the number and types of degrees and other awards survey of institutions known as the Integrated granted by postsecondary institutions in order to Postsecondary Education Data System (IPEDS) make informed public policy decisions about the Data forms are collected from degree-granting adequacy of services at this level of education institutions only (Sectors I and III in Display 12) Such information gathering is the most basic and at State expense. The Commission receives no benign form of State monitoring of private institu- federal support for collecting and processing the tions, yet with more than 2,600 private postsecond- information that it sends to the federal Depart- ary institutions of all types within its borders, Cali- ment of Education. fornia routinely collects information from only about 6 percent of these private institutions. Conceivably, the Private Postsecondary Educa- tion Division, in its role as the State's oversight Of the approximately 764 accredited private post- agency for private postsecondary institutions, secondary institutions in California, the State peri- could collect data from those institutions not in- odically collects institutional information (enroll- cluded in the Postsecondary Education Commis- ments, degrees and other awards granted, tuition) sion's data base. These would include the 500 ac- from only 164 (or about 20 percent) of these institu- credited non-degree-granting institutions whose tions. 200,000 students are currently receiving $356

33 DISPLAY 11Non-Governmental Accreditation Compared with Six Types of State Review ofPrivate Organizational and Nongovernmental 1. Out- of-State Institution 2. Postsecondary 3. Institutional Procedural Elements Accreditation Licensure ( PPED) Data Collection Licensure (PPED)

State Agency Private Postseconde ry California Private Postsecondary Education Division (PPED), Postsecondary Education DivisionI PPED). State Departme it Education State Department of Education Commission of Education

Source of Various Education Code Education Code Section Education Code Mandate voluntary Section 94310.1(b) 66903; private institutionsSections 94300 ff associations participate voluntarily

Responsible Appointed by None; Superintendent Appointed by Governor, None:Superintendent Board each association; of Public Instruction is Legislature, and the of Public Instruction is self-perpetuating responsible, advised by educational segments responsible. advised by advisory council advisory council

Institutional Degree and non- Out-of-State degree-grant-Public degree-granting Private, non-accredited Types degree granting, ing public and private institutions required, degree and non-degree public and private regionally accredited private ioats. requested granting institutions

Relationship to Must be accredited Both accredited and Accredited institutions Accreditation by regional accrediting nonaccredited sought. are exempt from most association to operate but tew non accredited requirements of the inCalifornia institutions participate statute

Standards Standards adopted Regulations to be Federal Information Regulations being or Criteria by association developed by the survey forms items) developed for Superintendent of are used for degree-granting Public Instruction private institutions institutions

Institutional Institutional Institution's most Datarequested on Institutions' disclosure Report self-study recent self-study, plus institutional report required for report additional data on characteristics all types of its California (see list below) non-accredited operations institutions

Site Visit Yes; team report Yes; staff report No Yes; staff report and Report

Site Team of peer Staff; team not Team appointed by Visitors evaluators required Superintendent of Public Instruction

Scope of Entire institution, Entire institution, Inns components: Entire institution Institutional emphases vary financ al resources, Institutional data Review b; association faculty, curriculum Enrollments facilities, educational Completions outcomes Faculty Finances Libraries

Term Longest for most Maximum of Annual institution data. Three to five years Between associations is lice years completions. enrollment. Reviews live years an t finances, biennial. ethnicity. faculty

Adverse Denial Denial None Denial Actions Probation Termination Probation Termination Termination

Source Institutional fees Institutional fees State General Fund Institutional fees of Funds Availability Generally confidential Available to public Available to public Available to public of Report but may be released on Institution by institution itself

Source: California F,)secondary Education Commission

34 Postsecondary Education Institutions 4. Institutional Other than Private Postsecondary Education 5 Compliance 6. Program Approc al Motor V. Ma Acupuncture Audits or "Accreditation"

Department Department t,f Consumer Affairs; Department of California Student Commission on of Motor Board of Medical Quality Consumer Affairs Aid Commission Teacher Credentialing Vehicles Assurance; Acupuncture Board of Examining Committee Cosmetology

Vehicle Code Business and Business and AdministrativeCode Education Code Sections320, Professions Code Professions Code Section 30116 Section 44300 1670, and 1671 Section4929 Section 7300 (34CFR682410c2)

None Committee appointed by Board appointed by Appointed by Gu% ernor Appointed by Governor 3vernor (nine members), Governor (five members). Senate Rules (one member), Senate Rules (one member), and Assembly Speaker one and Assembly Speaker (one)

Private, non- Private degree and non- Private, non-degree Public and private degree- Public and private four- degree; most degree institutions first granting institutions and non degree zranting year degree-granting are accredited licensed by PPED accredited institutions regionally accredited insts.

Institutional Institutional licensure Institutional licensure Accreditation is required Regional accreditation is licensure bears no (known ar.. "school approval")bears no relationship by the federal Department a prerequisite under relationship to bears no relationship to accreditation status of Education Education Code accreditation statusto accreditation status Section 44225

Various Standards adopted by Standards adopted by Must maintain Standards adopted by application Committee; placed in Board and placed in federal eligibility the Commission forms regulation.California regulation, California requirements, (generally not in Code of Regulations, Administrative Code including accreditation formal regulations) Section 1399.436b Title 16, Chapter 9

Various applicationVarious application Various application None Program report forms, owner's forms forms background. Equipment Surety Bond of $2,000

Yes; staff report Yes; team completes Yes; inspection checklist Yes: staff report Yes; team report various forms with staff comments

One staff Team of one staff and three One staff member Usually one staff member. Team of peer evaluators member subcommittee members occasional Joint visit ( professors. school teachers. with cooperating agency and adminstrators)

Equipment, Administrative files, Equipment. facilities. Financial aid records Program components: classrooms. student files, faculty, curriculum, textbooks. Student files Program de% elopment advertising, financial condition, financial condition Consumer information and coherence student records curriculum Admission requirements Institutional resouices Student assessment Faculty Curriculum

License renewed Approved status is Institutions must renem, 0,1P to fl%P years. Five to six years annually; no perpetual; institution is their license annually depends on volume renewal visit required to report new Staff makes two site of aid, defau!t rate. programs and faculty inspections annually complaints

Denial Denial Limitation Denial Revocation Termination Suspension Conditional appro% al Termination Probation Fines termination

Institutional Occupational licensing fees, Occupational and institu- Federal administrati% e Teacher credential tees fees institution approval fees tional licensing fees funds from Loan Reser% e

Available Available to public Available to public Available to public Available to public to public (except financial report) 30 days after mailing to institution

35 DISPLAY 12 Student Enrollments, Expenditure of Public Funds, and Level of Available Information for Public and P -ivate Postsecondary Institutions

Number of Sector Institutions Enrollments Public Funds (000s) Information Level 1. Accredited degree-granting 313 1,750,000 $3,068,119* High 1,340,639** 2. Accredited non-degree-granting 451 200,000 356,483** Very low 3. Non-accredited degree-granting 350 est. 175,000 0 Low 4. Non-accredited non-degree-granting 1,500 est 150,000 0 Very low

*General Fund. "Student Aid Fund

Source:California Postsecondary Education Commission.

million in financial aid. These accredited institu- Non-governmental accrediting agencies require tions are among those exempted from the Divi- that institutions applying to become candidates for sion's oversight, however, and thus the Division accreditation (the first step in the accreditation pro- currently has neither the resources nor the au- cess) first obtain a State license (authorization, ap- thority to collect this information. proval) to operate and operate continuously for a minimum of two years or until they have graduated In view of the considerable investment of public their first class, whichever is the longer period of funds in Sector II of Display 12, it is reasonable to time. assume that the collection of data about these institutions would serve an important public policy func- The institutional licensing process for degree-grant- tion by enabling the Legislature and Governor to be ing institutions bears some apparent similarities to knowledgeable about the productivity of the insti- the process used by non-governmental accrediting tutions and to better utilize their resources.At bodies in such procedural elements as the use of present, neither agency has the resources to add standards (termed "regulations" in State statutt this task to its workload. an institutional report. a site visit, and a report on the assessment of the institution based on the Institutional licensing through the team's visit. These appearances are deceptive Private Postsecondary Education Division The differences between non-governmental accreditation and the State's I icensure of degree-granting The third type of State oversight listed in Display institutions are profound, and It is a serious error to 11 is the institutional licensing function conducted confuse one with the otherTile comparisons in by the Private Postsecondary Education Division Display 13 on page 38 illustrate the number and de- All new private postsecondary institutions not spe- gree of dissimilarities between the two institution- cically exempted by the Education Code are real assessment processes quired to secure State authorization or approval from the Division before they begin offering in- Institutional licensure through struction.The Education Code permits a wide other State agencies range of nonaccredited degree-granting and nondegree-granting institutions to operate under this The fourth type of State oversight -- institutional li- statutory provision subject to periodic review by the censure by State agencies other than the Private Division. Currently, some 160 degree-granting col- Postsecondary Education Division -- is carried out leges and universities and 1,700 vocational schools by several of the occupational licensing boards. come under its direct review,

36 DISPLAY 13 Differences Between Non-Governmental Accreditation and California State Licensure

NonGovernmental Accreditation State Licensure 1 Primary purpose is to maintain and improve Primary purpose is to ensure a base level of institutional quality. institutional integrity and consumer protection

Accredited status is v, ntary, although it is a Licensure is mandated by statute in order for an necessary preconditio.. for an institution to institution to operate. become eligible for federal student aid funds.

Decisions are made by a private commission Decisions are made by an individual executive with some public members staff member accountable to the State Superintendent of Public Instruction.

The external evaluation team is composed of An external e'. a Illation team is composed of a peer evaluators from other accredited institu- Division staff member t who chairs the team) tions. and several peer evaluators (approval) or one peer evaluator and a staff member of the California Postsecondary Education Commission (authorization)

Site visit reports are written by the team Site visit reports are written by the Division members. staff member who chairs the team.

Source: California Postsecondary Education Commission.

The relevance this information holds for the issues regular basis, except that institutions that fall raised by ACR 78, is that, unlike the relationship of within the top 10 percent of loan volume are reaccreditation to the licensure administered by the viewed every two years" (California Student Aid Division, the oversight of these licensing boards is Commission). The on-site "organizati nal evalua- not relinquished when institutions under t:ieir pur- tion" conducted by a single Student A. rl'ommis- view become accredited. The Board of Cosmetology sion staff auditor includes an exam' )n and was cited as an example of this relationship in Part analysis of the organization and management of Four. The Board of Barbering, the Board of Voca- academic activity, financial aid administration, ac- tional Nursead Psychiatric Technician Examin- counting and financial disbursem .nt systems, and ers, the Acupuncture Examining Committee and placement activity for a school by the review of the the Department of Motor Vehicles !through Decem- following I with respect to financial aid administra- ber 1988) are additional examples of State licensing tion only) boards that inspect, license. and monitor schools in Student financial aid files. which their occupational skills are taught regard- Admission tile-, less of whether the schools are accredited Attendance records,

Transcripts. i e.grades, units completed, Compliance audits and units enrolled, The California Student Aid Commission -- the Student ledger accounts/tuition cards. State's guarantee agent) for federal and State stu- School catalog, consumer information. dent financial aid -- is an example of the fifth type Brochure, of oversight.Its enforcement responsibilities re- Placement records and statistics, quire it to audit 771 accredited postsecondary insti- Satisfactory progress policies: tutions (635 of which are private institutions) "on a Previous audit report.

1,.; 37 Profit and loss statement; needs: in one case, the Postsecondary Education Transaction dates; Commission's informion collection process pro- Needs analysis calculatio.,s: and vides information for public policy decisions; in oth- Accreditation reports. er cases, the Board of Cosmetology licensing helps to ensure the public's health and safetyThe Stu- State program approval dent Aid Commission's compliance audit promotes institutional accountability in the use of public The program approval responsibilities (soon to be- funds. come program "accreditation") of the California Commission on Teacher Credentialing illustrates The information in Display 11 also shows that the sixth type of State oversight detailed in Display there are various relationships to non-governmen- 11. Recently modified in Senate Bill 148, this proc- tal accreditation: Program approval by the Com- ess will become even more like non-governmental mission on Teacher Credentialing has institutional program accreditation than it is now. While this accreditation as a prerequisite: compliance audits function is not an institutional evaluation process, by the Student Aid Commission deal only with it is included here in Display 11 in order to compare accredited institutions because of a federal require- a number of its elements with those of State insti- ment: the licensing boards' procedures in acupunc- tutional licensure and voluntary accreditation.In ture and cosmetology are independent of accredita- many respects, the CTC's process, as it currently tion. and the information gathering efforts of the operates, parallels the non-governmental pr ;ram Postsecondary Education Commission cover only accreditation process and is more akin to non-gov- some accredited institutions -- those that award de- ernmental professional accreditation than to State grees licensure. It differs from non-governmental accred- Most important, each of these agency processes itation chiefly in the fact that it is based upon State exists to provide information for public policy pur- statutes rather than upon the authorityf a volun- poses; in some cases, to ensur? the public's health tary ass.iation.Its scope is limited to an assess- and safety; and to see that public funds are respon- ment of teacher preparation programs rather than sibly spent.Clearly, the direction in which state the entire institution.Institutional accreditation oversight of private institutions has been evolving by the senior commission of wASC is a prerequisite elsewhere in the nation has been toward increasing for applying for review by the Commission on regulation for these purposes. The increase in Cali- Teacher Credentialing, and this characteristic is fornia's regulation of nonaccredited institutions also similar to most non-governmental professional has resulted in part from this national regulatory accreditation. environment, but California's laws regarding accredited institutions have not been similarly affected What is now needed is a more coherent philosophy of State oversight of private postsecondary Lessons for the future education institutions - both accredited and nonaccredited What can be learned from this comparison of types To provide a basis for this philosophy. at least seven of State agency oversight of private institutions' premises can be derived from the State's experience Even a cursory glance at Display 11 shows that in relying on accreditation to fulfill its oversight re- there are many ways in which State oversight is iponsibilities implementedLess apparent is the fact that there are several levels of rigor or thoroughness (al- 1 The licensing of private postsecondary institu- though this might be partially inferred from infor- tions is an appropriate expression of the consti- mation such as whether or not there ;s use of a vis- tutional goal and of the authority of the State iting team or periodic revisits by representatives of an agency) 2. The State has a responsibility for determining These levels or types of oversight reflect different whether postsecondary institutions have a gov- purposes and different public (or public policy) ernance structure that will ensure reasonable

38 review of educational policies and outcomes and State's general authority; promoting quality im- will provide for continuity of the institution. provement in private institutions as a primary organizational function is more appropriately 3Ensuring the integrity of degrees, diplomas and left to a voluntary, non-governmental associa- certificates is a State responsibility which ought tion. to involve the voluntary participation of relevant professional and vocational peer groups 7. Providing comprehensive information to the State about the purposes, programs, students 4. Within its role in licensing an institution, the and degrees or diplorm3s awarded ought to be a State has the authority to determine whether an requirement that accompanies the granting of a institution is financially .table both at the time license to operate an institution of its initial licensing and on an ongoing basis

5 The protection of students. rights as consumers The Commission expects to use these premises in of education is a fundamental responsibility of its continuing analyses of the relation of non-gov- the State. ernmental accreditation to State oversight and in developing specific recommendations for Califor- 6.Licensing institutions on the basis of minimum nia's future reliance on accrediting agencies. standards of qualityis consonant with the

.,. 39 Recommendations of the Ca4ornia Postsecondary Education Commission Regarding Appendix A Accreditation and State Approval, 1984

RECOMMENDATION 1: Because non-governmen- ation with all available evidence and request the tal accreditation serves important functions that association to provide a written response to the spe- should be protected and preserved, accreditation cific issues raises oy the State.As a last resort. should remain a non-governmental activity, and however, if the issues still remain unresolved after the State should not initiate activities designed to the accrediting association has had a reasonable, replace or inhibit its role in promoting educational period of time to work with the institution, the quality. State should have the authority. after exhausting all administrative procedures necessary to insure RECOMMENDATION 2: California should contin- the involved institution due process of law, to re- ue to utilize the two separate processes of non-gov- scind the license of an accredited institution which ernmental accreditation and State approval for in- is not in compliance with State standards. dependent and private institutions as they perform different yet complementarfunctions.Efforts RECOMMENDATION 6. The Senior and Commu- should be made to strengthen both processes wher- nity College Commissions of the Western Associa- ever possible. tionofSchools and Colleges should review their current guidelines for tuition refund as well as the RECOMMENDATION 3: The State - approval "Policy Guidelines for Refund of Student Charges" process for degree-granting institutions should con- drafted by the National Association of College and tinue to be programmatic approval, but it should be University Business Officers, to determine if more revised to stipulate that an institution cannot ad- specific guidelines on this issue should be imple- vertise itself as having State approval status until mented by the two commissions all of its degree programs have been qualitatively reviewed and approved by the State's oversight RECOMMENDATION 7.The State criteria uti- agency. lized to determine institutional eligibility for participation in State-funded undergraduate and grad- To provide an opportu- RECOMMENDATION 4: uate student assistance programs should be exam- nity for an institution with institution-wide pro- ined by the Student Aid Commission during the grammatic approval to add a new program on a ten- next year. This examination should consider the tative basis, after operating with approval status impact of modifying the criteria regarding institu- for at least two years, it should be eligible to offer a tional eligibility sc that institutions qualitatively maximum of one unapproved program for a period reviewed and approved by non-governmental ac- of no longer than three years.% fter that period, the crediting associations or having institution-wide program should be expected to achieve State ap- programmatic approval from the State oversight proval or be eliminated. agency (as provided in Recommendation 3 abo% e) RECOMMENDATION 5 The State should contin- are eligible for participation in the State programs ue to rely on accrediting associations to exercise if they meet all other State requirementsIn pre- primary responsibility for the oversight of accredit- paring this review, the Student Aid Commission ed independent ant' private institutions. Nonethe- should include an analysis of the total cost for any less, when available evidence suggests a reasonable changes in institutional eligibility for participation probability of non-compliance by an accredited in- in State financial aid programs, with this informa- stitution with State standards for approval, the tion submitted to the Legislature as appropriate State oversight agency should work with the ac- RECOMMENDATION 8The expertise of special- crediting association to correct the situation. The ized accrediting associations should continue to he State agency should provide the accrediting associ- used in the health professions as a means of screen-

4 1 ing out potential practitioners who have not met and in.olement an appeals process for institutions specific predetermined standards. In all other pro- similar to that maintained by the American Bar fessions, graduation from an institution with region- Association. al accreditation or institution-wide programmatic RECOMMENDATION 12: The Senior Commission approval by the State (as proposed in Recommenda- of WASC should continue to review its current proc- tion 3) should continue to be required as a means of ess for the selection of commissioners and examine identifying individuals who have potentially met the processes used by other regional accrediting as- the requirements for licensure. sociations to determine if there is a method of more RECOMMENDATION 9:The Behavioral Science directly involving the member institutions and the Examiners Board and the Geologist/Geophysicists various constituencies of accreditation in the selec- Board should review their current practices that re- tion of commissioners. quire graduation from a regionally accredited insti- RECOMMENDATION 13: The systemwide offices tution as a requirement for individuals to sit for li- of the three public segments should review their censure examinations in educational psychology policies regarding the role of accreditation, with and geology, respectively. Consideration should be special attention to those specialized accrediting as- given to the utilization of institution-wide pro- sociations with standards and criteria for member- grammatic approval by the State as an additional ship that are so specific and intrusive as to limit means to identify institutions with adequate educa- campus authority over curriculum and resource al- tional programs. location. Campuses should be encouraged to take RECOMMENDATION 10 Two important princi- the lead within specialized accrediting associations ples of the current WASC procedures for the review to modify those standards and practices which are of California-based operations of out-of-state ac- particularly intrusive into campus authority.If credited institutions should be continued:(1) the these efforts are unsuccessful, campuses should con- utilization of WASC standards as the basis for ac- sider terminating their membership in these asso- creditation, with (2) the final accreditation decision ciations until such standards are modified, and stu- made by the Senior Commission of WASC. These in- dents and the public should be informed about the stitutions should also continue to have the option reasons for this voluntary termination. for either authorization or approval by the State RECOMMENDATION 14: The systemwide offices oversight agency as an alternative for WASC accreditation. and the campuses of the three public segments should give special attention to the need for cam- RECOMMENDATION 11 The Committee of Bar puswide coordination of accrediting activities to fa- Examiners should establish a separate committee cilitate cooperation, communication, and common with the responsibility for accrediting law schools, planning for phased or joint valuations by institu- with the composition of this committee similar to tional and specialized accrediting associations in that of the American Bar Association, including harmony with the institutions' own planning and significant representation from accredited institu- evaluation cycles. tions. In addition, the Committee should develop

42 Assembly Concurrent Resolution 78 Appendix B (1988, Hughes)

RESOLUTION CHAPTER 22 Assembly Concurrent Resolution No. 78Relative to nongovernmental associations for accreditation of postsecondary educational institutions.

(Filed with Secretary of State April 6, 19881

LEGISLATIVE COUNSELS DIGEST ACR 78, Hughes.Private educational accrediting associations. This measure would request that the California Postsecondary Education Commission conduct a study of the operations and procedures of accrediting associations which accredit postsecondary educational institutions, as specified. This measure would also request that the Executive Director of the CaliforniaPostsecondary Education Commissionestablishan advisory committee, as specified, to assist in tae identification of issues to be included in the study, and would prc vide that the results of the study be transmitted to the education and budget committees of each house of the Legislature by February 15, 1989. WHEREAS, The California state government has increasingly turned to nongovernmental accrediting associations for assistance in assunng and increasing the quality of educational programs offered by public, independent, and private postsecondary institutions; and WHEREAS, Nongovernmental accrediting associations have been given increasing responsibility to monitor independent and private institutions to asse their compliance with minunum standards for consumer protection, educational quality, and financial stability; and WHEREAS, California relies upon accrediting associations to identify institutions eligible to participate in state and federally funded student assistance programs; and WHEREAS, California policy relies upon accrediting associations to identify both (1) institutions which offer professional training programs of sufficient quality that they can be relied on inthe licensure of practitioners and (2) teacher education programs which are considered to be of sufficient quality to merit reviewby the State Commission on Teacher Credentialing; and V,'HERE.tS, Accrediting associations are expectedtoadopt policies and practices which are responsive to the public interest and consistent with public policy; now, therefore, be it Resolved by the Assembly of the State of California, the Senate thereof concurring, That the California Postsecondary Education Commission is requested to conduct a study of the operations and procedures of accrediting associations which accredit postsecondary instuutionsoperatingpursuanttoeitherSectioii94310.1or

1.1

43 DRAFT

Res. Ch. 22 0

subdivision (c) of Section 94311 of the Education Code. Thisstudy shall consider, but not be limited to, the following issues: 11) What are the purposes of nongovernmental accreditation,as stated by each accrediting association. (2) What are the state's responsibilities in the licensure and oversight of postsecondary institutions which operate in California? Which, if any, of these responsibilities has been delegatedto nongovernmental accreditationassociations? Should the state assume any or all of the responsibilities currently delegated to nongovernmental accrediting associations? (3) What criteria should be used by the state toassess the capacity of the accrediting associations to act in the publicinterest and consistent with public policy? (4) Is the current level of state monitoring of nongovernmental accrediting associations effective, and if not, how should the monitoring be strengthened? (5) What is the process by which members of theaccreing commission are selected? Does this process providea mechanism for theinvolvement of faculty, administrators,andpublic representatives in the selection of accreditation commissioners? (6) How are the operations of each accreditingassociation funded? (7) What issues are considered during the publicsessions of the meetings of eachaccreditationassociation? What issues are considered during the executive sessions of these meetings? To what extent is the public business of the accrediting association conducted in public; and be it further Resolved,ThattheExecutiveDirectoroftheCalifornia Postsecondary Education Commission, in thepreparation of this study, shall establish an advisory committee composed of,but not necessarily limitedto, representatives of California institutions accredited by the National Home Study Council, by the National Association of Trade and Technical Schools, by the Association of Independent Schools and Colleges, and by the WesternAssociation of Schools and Colleges The advisor) committee shallassist in the identification of issues tc be included in this study and shallhave the opportunity to review and comment on a preliminary draft of the commission's report; and be it further Resolved. That theCaliforniaPostsecondaryEducation Commission shall complete the study pnor to February 15, 1969, and transmit the resultsto the education policy committee of the Assembly and of the Senate and the budgetcommittee of the Assembly and of the Senate. and be it further Resolved. That the Chief Clerk of the Assemblytransmit a copy of t:%resolution to theCaliforniaPostsecondaryEducation Coninitbsion

r 44 l ,..) Federal Criteria and Procedures for Recognition of Nationally Recognized Appendix C Accrediting Agencies and Associations

The criteria and procedures for recognizing accrediting criteria established by the Secretary and set forth in §603 6 bodies were published in Tale 34 of the Code of Federal of this part. Regulations on August 20, 1974, as follows: (20 U.S.C. 1141(a))

Part 603- Secretary's Recognition Pro- §603.2 Definitions cedures for National Accrediting Bodies Accrediting" means the process whereby anagencyor and State Agencies association grants public recognition to a school. institute. college. university. or specialized program ofstudy which meets certain established qualifications and educa- Subpart A - Criteria for Nationally Recog- tional sandards. as determined through initial and nized Accrediting Agencies and Associa- periodic evaluations. The essential purpose of the actions cieditation process is to provide a professional judgment Sec. as to the quality of the educational institution or pro- 603.1 Scope. gram( s) offered. and to encourage continual improvement 603.2 Definitions thereof: 603.3 Publication of list. Adverse accrediting action" means denial of accredita- 603.4 Inclusion on list. lion or maccreditation status or the withdrawal of 603.5 Initial recognition: renewal of recognition. accreditation or preaccreditation status: 603.6 Criteria. Agency or association" means a corporation. association. or other legal entity or unit thereof which has the Authority: (20 U.S.C. 682(b). 1058(2 Xiv). 1061(2Xiv), principal responsibility for carrying out the accrediting 1085(b). 1085(c). 1085(f). 1088(aX2). 1088(bX4). 1088(c). function: 1141(a).1401(11)(E). 2002(4), 3207(2XE). 2461(21). "Institutional accreditation applies to the total institu- 3381(e)): (12 U.S.C. 1749c(b)): (42 U.S.C. 293a(b)( n. tion and signifies that the institution as a whole is 294j(2). 294s(a). 294z(a). 295-(2)(c). 295c(a)(2), achieving it educational objectives satisfactorily: 295c(bX21. 295(bXl) and (2). 295-01-2(b). :95g-8(gX2), "Regional" means the conduct of institutional ac- 295(c X2 KB). 295h-4(2 XD). 297-1. 908(dX2)- 3791(17)): (8 creditation in three or more States: U.S.C. 1101(0(15XF). 1182(aX32). 11820X1)): (10 U.S.0 "Representatives of the public" means representatives 213(d)). (25 U.S.C. 1801(51): (38 U.S.C. 1652(g), 1701(11), who are laymen in the tens, that they are not educators in. 1775(a). 5073(b)( I XD)): (15 U.S.0 1352(c)); (44 U.S.0 or members of. the profession for which the students are 1916). being prepared. nor in any way are directly related to the institutions or programs being evaluated. Subpart A - Criteria for Nationally Recog- (20 U.S.C. 1141(a)) nized Accrediting Agencies and Associa- tions 603.3 Publication of list. §603.1 Scope Periodically the U.S. Secretary of Education will publish a listin the FEDERAL REGISTER of the Accreditation of institutions or programs of institu- accrediting agencies and associations which 11e deter- tions b agencies or associations nationally recognized by mines to be reliable authorities as to the quality of training the U.S. Secreta* of Education is a prerequisite to the offered by educational institutions or programs either in a eligibility for Federal financial assistance of institutions geographical area or in a specialized field. The general and of the students attend:ng such institutions under a scope of the recognition granted to each of the listed wide vanety of federally supported programs. The recog- accrediting bodies will also be listed. nition of such agencies is reflected in lists published by the (20 U.S.C. 1141(a)) Secretary in the FEDERAL REGISTER. Inclusion on such list is dependent upon the Secretary's finding that §603.4 Inclusion on list. any such recognized agency or association is a reliable authonty as to the quality of training offered. The Any accrediting arncy or association ...Lich desires to Secretary'becognition is granted and the agency or be listed by the Secretary as tt eeting the criteria set forth association is included on the list only when it meets toe in §603.6 should apply in writing to the Chief. Agent"

45 Evaluation Staff. Higher Education Management Serv- (iii) The agency's or association's fees. if any. for ices Office of Postsecondary Education. Department of the accreditation process o not exceed the Education. Washington. DC 20202. reasonable cost of sustaining and improving 120 U.S.0 1141(a)) the process. (is) The agency or association uses competent §603.5 Initial recognition and renewal of recognition. and knowledgeable persons. qualified by (a) For initial recognition and for renewal of recogni- experience and training. and selects such tion, the accrediting agency or association will furnish personsinaccordance withnon- information establishing its compliance with the cnteria discriminatory practices: set forth in §603.6. This information may be supple- (A) to participate on visiting evaluation mented by personal interviews or by rev iew of the agency's teams: facilities records personnel qualifications and admin- (B) to engage in consultative services for the istrative management. Each agency listed will be reevalu- evaluation and accreditation process: and ated by the Secretary at his discretion. but at least once (C) to serve on policy and decision- making. every four years. No adverse decision will become final bodies. without affording opportunity for a hearing. (.. ) The agency or association includes on each (b) In view of the criteria set forth in §603.6. it is unlikely visiting evaluation team at least one person that more than one association or agency will qualify for who is not a member of its policy or decision- recognition (I) in a defined geographical area of jurisdic- making body or its administrative staff. tion or (2) in a defined field of program specialization (3) Its procedures: within secondary or postsecondary education. if twoor (I) The agency or association maintains clear more separate organizations in a defined field do seek definitions of each level of accredtation recognition. they will both be expected to demonstrate status and has clearly wntten procedures for need for their activities and show that they collaborate grantingdenying. reaffirming. revoking. closely so' that their accrediting activities do not unduly and reinstating such accredited statuses. disrupt the affected institution or program. (ii) The agency or association, if it has developed (20 U.S.C. I I41(a)) a preaccreditation status. provides for the §603.6 Criteria. application of cnteria and procedures that are related in an appropriate manner to those In requesting designation by the U.S. Secretary of employed for accreditation. Education as a nationally recognized accrediting agency (iii) The agency or association requires. as an or association. an accrediting agency or association must integral part of its accrediting process in- show : stitutional or program self-analysis and an (a) Functional aspects. Its functional aspects will be on-site review by a visiting team. demonstrated by: (A) The self-analysis shall be a qualitative assessment of the strengths and limita- (1) Its scope of operations: tions of the institution or program. (i) The agency or association is national or including the achievement of institu- regional in its scope of operations tional or program objectives, and Ili) The agency or association clearly defines in should involve a representative portion its charter. by-laws or accreditirg standards of the institution's administrative staff. the scope of its activities including the teaching faculty, students. governing geographical area and the types and levels of body. and other appropnate constituen- institutions or programs covered. cies (B) The agency or association provides wntten and consultative guidance to the (2) Its organization: institution or program and to the visit- (i) The agency or association has the admin- ing team. istrative personnel and procedures to carry out its operations in a timely and effec.ve (b) Responsibility.Itsresponsibility will be demon- manner. strated by the way in which (ii) The agency or association defines its fiscal ( 1 ) needs. manages its expenditures. and has Its accreditation in the field in which it operates serves clearly identified needs as foilows: adequate financial resources to carry out its operations. as shown by an externally au- (ii The agency's or association's accreditation dited financial statement. program takes into account the nghts re- 46 7 sponsibilities. and interests of students. the executive officer of the institution applies for general public. the academic. professional. or accreditation of the institution or any of its occupational fields invoked. and institu- programs: tions. (ii) Pros iding for adequate discussion duringan (ii) The agency's or association's purposes and on-site visit between the visiting team and obtectkes are clearly defined in its charter. the faculty, administrative staff. students. by-laws. or accrediting standards. and other appropriate persons: (iii) Furnishing, as a result ofan evaluation visit. a written report to the institution or program (2)It is responsive to the public interest, in that: commenting on areas of strengths.areas (1) The agency or association includes repre- needing improvement, and when appropri- sentatives of the public in its policy and ate. suggesting means of improvement and decision-making bodies. or in an advisory or iaciuding specific areas. if any. where the consultative capacity that assures attention institution or program may not be incom- by the policy and decision-making bodies. pliance with the agency's standards: ( ii) The agency or association publishes or other- (iv) .Providing the chief executive officer of the wise makes publicly available: institution or program with an opportunity (A) The standards by which institutions or to comment upon the written report and to programs are evaluated: file supplemental materials pertinentto the (B) The procedures utilized in arriving at facts and conclusions in the writtenreport of decisions regarding the accreditation the visiting team before the accrediting statt,3 of an institution or program: agency or association takes action on the IC) The current accreditation status of in- report: stitutions or programs and the date of (v) Evaluating. when appropriate. thereport of the next currently scheduled review or the visiting team in the presence ofa member reconsideration of accreditation: of the team. preferably the chairman: (D) The names and affiliations of members (vi) Providing for the withdrawal ofaccredita- of its policy and decision-making tion only for cause. after review.or when the bodies. and the name(s) of its principal institution or program doesnot permit administrative personnel: reevaluation. after due notice: t E) A description of the ownership. control (vii) Providing the chief executive officer ofthe and type of legal organization of the institution with a specific statement ofrea- agency or association. sons for any adverse accrediting action, and (iii) The agency or association provides advance notice of the right to appeal suchaction: notice of propose{ or revised standards to all (viii) Establishing and implementingpublished persons. institutions. and organizations sig- rules of procedure regarding appeals which nificantly affected by its accrediting process. will provide for: and pros ides such persons. institutions and (A) No change in the accreditation status of organizations adequate opportunity to com- the institution or program pending dis- ment on such standards prior to their adop- position of an appeal: tion. (B) Right to a hearing before the appeal (1% ) The agency or association has written pro- body: cedures for the review of complaints pertain- (C) Supplying the chief executive officer of ing to institutional or program quality, as the institution with a written decision of these relate to the agency's standards. and the appeal body. including a statement demonstrates that st..h procedures are ade- of specifics. quate to provide timely treatment of such complaints in a manner that is fair and (4) It has demonstrated capability and willingnessto equitable to he complainant and to the foster ethical practices among the institutionsor institution or program. programs which it accredits. including equitable student tuition refunds and nondiscriminatory practices in admissions and employment. (3) It assures due process in its accrediting procedures. as demonstrated in part by: (5) It maintains a program of evaluation ofits (i) Affording initial evaluation of the institu- educat mai standards designed to assess their tions or programs only when the chief :, validity and reliability, 1 .., 47 (6) It secures sufficient qualitative information re- ( 1 ) Acceptance throughout the United States of its garding the institution or program which shows policies evaluation methods. and decisions by an on-going program of evaluation of outputs educators. educational institutions licensing consistent with the educational goals of the bodies practitioners. and employers: institution or program. (2) Regular review of its standards policies and procedures. in order that the evaluative process (7) It encourages experimental and innovative pro- shall support constructive analysis emphasize grams to the extent that these are conceived and factors of critical importance. and reflect the implemented in a manner which ensures the educational and training needs of the student: quality and integrity of the institution or program. (3) Not less than two years experience as an accrediting agency or association: (8) It accredits only those institutions or programs which meet its published standards and demon- (4) Reflection in the composition of its policy and strates that its standards policies and.procedures decision-making bodies of the community of are fairly applied .and that its evaluations are interests directly affected by the scope of its accreditation. conducted and decisions rendered under conditions that assure an impartial and objective judgment. (d) Autonomous. Its autonomy is demonstrated by evidence that (9) It reevaluates at reasonable intervals institutions or programs which it has accredited. (1) It performs no function that would be inconsistent with the formation of an independent judgment of the quality of an educational program or (10) It requires that anyreference to its accreditation institution: of accredited institutions and programs dearly specifies the areas and levels for which accredita- (2) It provides in its operating procedures against tion has been received. conflict of interest in the rendering of its judgments and decisions (c) Reliability. Its reliability is demonstrated by (20 U.S.0 1141(a))

48 MY.

Statements of Purpose Appendix D by Non-Governmental Accrediting Agencies

One of the questions in Assembly Concurrent Reso- which might jeopardize their educational effec- lution 78 asked, "What are the purposes ofnongov- tiveness or academic freedom. ernmental accreditation, as stated 13.,, each accredi.- ing association?" The following statements have Accreditation is attained through a process of eval- been abstracted from the accrediting materials of uation and periodic review of total institutions con- each of the commissions in the rlmmission's study. ducted by regional commissions in accord withna- As might be expected, each con. nission treats the tional policies and procedures subject somewhat differently.One commission -- the National Accrediting Commission of Cosmetol- ogy Arts and Sciences -- does not treat the topic at all. The eight abstracts follow in alphabeticalor- Accrediting Commission for Senior der Colleges and Universities, Western Association of Schools and Colleges

In order to assist institutions in determining their Accrediting Commission for Junior educational effectiveness, the Commission hesrec- and Community Colleges, Western ognized four major purposes of accreditation: Association of Schools and Colleges 1. To assure the educational community, the general public, ancrother organizations and agencies Institutional accreditation at the postsecondary lev- that an institution has clearly defined objectives el is a means used by regional accrediting commis- appropriate to higher education and that it sions for purposes of: meets Commission standards: 1. Fostering excellence in postsecondary education z. To encourage institutional development and im- through ti. e development of criteria and guide- provement through self-study and periodic eval- lines for a: Jessing educational effectiveness uation by qualified peer professionals. 2. Encouraging institutional improvement of edu- 3 To develop and use standards to assess and en- cational endeavors through continuous self-study hance educational quality and institutional per- and evaluation formance, and to validate these standards by 3. Assuring the educational community, thegen- ongoing research. and eral public, and other agencies or organizations 4. To promote interchange of ideasamong public that an institution has clearly defined appropri- and independent institutions through peer re- ate educational objectives, has established condi- view tions under which their achievementcan reasonably be expected "ppears in fact to beaccom- plishing them substantially, and isso organized, staffed, and supported that it can be expected to continue to do so American Association 4. Providing counsel and assistance to established of Bible Colleges and developing institutions Since one of the principal value,- of accreditation is 5. Protecting institutions against encroachments the stimulus and growth that cc,ilegesexperience in

.) 49 the accrediting process, the spirit of accreditation censing, authority to award educational creden- should be one of constructive evaluation and help- tials, and eligibility to administer student financial fulness. Accordingly, examiners are looked uponas assistance.... consultants rather than police inspectors checking up on conformity to arbitrary standards. 1 -1 -101.Business and Related Emphasis The Commission evaluates for initial and continuing Acceptance of a college is based upon its overall accreditation those otherwise eligible institutions strength. Strict conformity in every detail is not in- that offer educational programs through which stu- sisted upon, for excellence in majorareas may well dents gain knowledge and skills that equip them to compensate for minor deficiencies. Then, too, the seek and acquire gainful employment innumerous final test of an institution's strength is whether it is career fields. Historically, the career fields empha- achieving its objectives in preparing students for sized in programs of Commission-accredited insti- effective Christian living and service tutions have been in business or business-related professions. The Commission feels that it is important to the institutions that it accredits for, them to maintain that emphasis.

Accrediting Council for Continuing Education and Training

ACCET (a) promotes high quality in continuing edu- Council on Chiropractic Education cati. programs, (b) verifies such quality, and (c) publicly Retests to it.ACCET achieves its purpose The Council on Chiropractic Education isa nation- primarily through established standards of quality, al organization advocating high standards of qual- on-site examinations, related consultations, publi- ity in chiropractic education, establishing criteria cations, and conferences. of institutional excellence for primary healthcare Accreditation is intended to: chiropractic physicians, inspecting and accrediting colleges through its Commission on Accreditation, Help good continuing education programs be and publishing lists of those institutions whichcon- come better. form to its standards and policies. Verify the quality of continuing educationpro- grams. Assure licensing authorities, certifying bodies, registration agencies, governmental offices,employers, potential enrollees, and the public of the National Association of Trade anTechnical Schools quality of specific continuing educationpro- grams. The National Association of Trade and Technical Schools is a voluntary association of private schools. A primary purpose is to establish and maintain high educational standards and ethical business practices in its field. Association of Independent Colleges and Schools Accreditation, as herein outlined, is intended to be a means of assisting good private trade and techni- Accreditation is an independent appraisal ofan in- cal schools to become better schools by setting stan- stitution during which its overall educational qual- dards to which all priv.:.trade and technical ity (including outcomes), its professionalstatus schools can aspire. among similar institutions, and its operational eth- ics are judged by peersAccreditation is a voluntary activity separate and distinct from business li-

50 8i National Home Study Council foster excellence in education through the development of standards for assessing educational ef- Simply stated, home study school accreditation is fectiveness; certification by a recognized body that a school has voluntarily undergone a comprehensive study and encourage improvement throtigli continuous examination which has demonstrated that the self-evaluation and planning; and school does in fact perform the functions that it assure the educational community, the general claims: that the school has set ;ilucational goals for public, and other agencies or organizations that students who enroll, awl furnishes materials and an institution has both clearly defined and ap- services that enable students to meet these stated propriate objectives, maintains conditions under criteria.... which their achievements can be reasonably ex- Historically and currently, accreditation may be pected, appears in fact to be accomplishing them, said to: and can be expected to continue to do so.

51 Origins and History of State Licensure of Private Postsecondary Education Appendix E Institutions in California from 1850 to 1977

The State: Locus of responsibility force organized by tae American Council of Educa- tion to examine tl'ie use of educational credentials The rc3ts of the State's responsibility for the over- identified six principles that should govern the ap- sight of private postsecondary institutions reach propriate use of the credentialing function. While back to colonial times when, Zither through a char- these relate primarily to the licensing of qualified ter obtained from the General Court of the colony individuals, they are also pertinent to the public (as in the case of Harvard and Vale ) or directly from policy at issue in this study and illustrate the inter- the crown (William any Tary), our nation's earliest est of the State in the chartering of private institu- collegiate institutions were established (Herbst, tions as well. 1974, p. 7).As a result of the nation's indepen- dence, the powers of government formerly exercised Principle:. of Credentialing by the crown devolved to the people and were exercised through the state government when not ex- 1. Credentiaiing should minimize risks to the pub- pressly provided for in the Constitution of the Unit- lic health, safety, and welfare by identifying the ed States. qualified. Thus enabled by the Tenth Amendment of the na- 2. Credentialing that recognizes and encour_ zes tion's Constitution, the authors of the California pride in accomplishment and the mastery of State Constitution included among its many provi- knowledge and skills is in the public interest. sions a section on education (Article IX) which con- 3. Mandatory credentialing snould be exercised tains this statement of legislative policy: only where there is demonstrable relationship Section 1.A general diffusion of knowledge to the public health, safety, and welfare. and intelligence being essential to the preser- 4. Credentialing is substantially interlinkal with vation of the rights and liberties of the people, economic and social rewards in the societyIn the Legislature shall encourage by all suitable order to assure social equity, then, all creden- means the promotion of intellectual, scientific, tialing systems should recognize reOisite com- moral, and agricultural improvement petencies and learning for a given credential re- The "suitable means" employed by the Legislature irdless of how or where they are achieved. in implementing this goal have included establish- 5C. Alen' ialing activities of agencies and institu- ing public institutions and licensing primate insti- tions, NA hether controlled by agencies of govern- tutions. The credentials ( i e.degrees. diplomas) is- ment or sponsored by voluntary occupational sued by a State college or university carry the au- and professional organizations. substantially in- thority of the government directly. the act of licens- tersect the public interestThe policy-making ing a private institution transmits a similar legal and governing boards of such agencies should status to the credentials awarded by the licensed therefore be representative of broad social inter- institution. ests 6 The credentialing process in fields closely re- Authoritative credentials lated to the public health, safety, and welfare should include provision that the credentialed The authority to issue credentials of eompet,:nce is be required periodically to prove that they still a critical matter in a technological ::: %cif .y. A task possess tt e requisites for acceptable practice

53 and have kept pace with advances in the field. later became the University of California, Berke- (Miller and Mils, 1978, pp. 10-11). ley, 1855. One of the California Legislature's first major acts The specified endowment of $20,000 was, however, in the State's first year of statehood -- 1850 -- was to in 1850, not a substantial requirement for the provide for the establishing of collegiate institu- founding of a collegiate institution. Although ad- tions.In this landmark statute, the Act of 1850, mittedly few in number, endowment gifts during and in the multitude of amendments that followed, the mid-1800s even to noncollegiate educational the State conferred its authority to she colleges it enterprises were to be found in the range of chartered to award the appropriate credential of $250,000 to $400,000 (Rudolph, 1962. p 180) and in college graduation, i.e., the aiploma or degree. The 1906 in the State of New York, an institution had to Act of 1850 stated in part, have "a productive endowment of not less than $200,000" to be ranked as a college by the Regents Every diploma granted by such trustees shall entitle the possessor to all the immunities Board of the State of New fork (Carnegie Founda- tion for the Advancement of Teaching. 1906, pp. which by usage or statute, are allowed to possessors of similar diplomas, granted by any 66, 79). University, College, or Seminary of learning This modest financial requirement of $20,000 re- in the United States. mained in Statute for about 30 years and then was deleted from the law by the Amendments of 1885. In 1927 it was reinstated in the form of a require-

ment of $50,000 in "real and personal property .. . Permanent, well-governed institutions used exclusively for the purposes of education." The State continued into the 1980s to use this re- The State's first collegiate institutions were private quirement as the sole financial criterion for State institutions chartered under this ActThe impri- authorization, making California's licensing laws matur of the State was important to their alumni. the subject of ridicule throughout the country. By Only slightly more than a century later, in 1958, 1980, inflation had long since reduced the value of the Legislature affirmed its continuing commit- the amount to less than $12,000 (in 1927 dollars). ment to private higher education by adding to the This minimal financial requirement continues to end of some extensive amendments to theEduca- survive in current statutes as a condition of author- tion Codethis statement of legislative intent: ization for institutions awarding "degrees in theol- It is the intent of the Legislature to foster pri- ogy and other areas of religious studies"(Education vately supported education and protect the in- Code Section 94310.4). tegrity of diplomas conferred by privately sup- The State's concern for institutional stability was ported as well as publicly supported education- more substantially expressed in the requirement al institutions that collegiate institutions had to be incorporated !nstitutiona I permanence and competentover in order to offer academic or professional degrees. nance were the first considerations reflected in the This stipulation, which occurred as a condition of li- Act of 1850. At that time, the statute required that censure in the Act of 1850, was reinforced by a 1927 (1) an application be made to the State Supreme amendment prohibiting any other form of colle- Court for incorporation as a college, (2) the corpora- giate entity tion have an endo,..ment of twenty thousand dol. No person, firm, association or corporation, other lars," and that (3) the proposed trustees be capable than a corporation incorporated under the provi- men. A list of trustee powers appropriate to a col- sions of this title, shall have the power to confer lege Board of Trustees was also specified. During academic or professional degrees(California Cwd the first few years under this Act, some of the Code.Section 651a 427) St te's most renowned institutions were chartered. University of the Pacific, 1851. University of Santa The merits of corporate status for an educational Clara, 1851; University of San Francisco, 1855. and institution were expressed pointedly in the Su- the College of California ( a private college) which preme Court's decision in the Dartmouth case

54 (1819) about which the framers of the 1850 Act training of students for a particular occupation, were undoubtedly well informed: have never been under this requirement in Califor- niaScdae of these institutions, such as Woodbury A corporation is an artificial being, invisible, University, Heald College, and Golden Gate Uni- intangible, and existing only in contemplation versity, began as business schools founded by indi- of law. Being the mere creature of law, it pos- viduals (Golden Gate University began as a law sesses only those properties which the charter program sponsored by the San Francisco YMCA) and of its creation confers upon it, either expressly, later became incorporated in order to qualify to or as incidental to its very existence. These award degrees. are such are supposed best calculated to effect the object for which it was created Among the most important are immortality, and,if the expression may be allowed, individuality; Proprietary institutions properties by which a perpetual succession of many persons are considered as the same, and In 1958, the requirement that degree-granting in- may act as a single individual They enable a stitutions must be incorporated was deleted in a corporation to manage its own affairs, and to major revision of the State's statutes governing the hold property without the perplexing intri- licensing o: private institutions. The decade of the cacies, the hazardous and endless necessity of 1950s was a dynamic era of growing enrollments of perpetual conveyances, for the purpose of veterans returning to school on the "G. I. Bills" of transmitting it from hand to hand. It is chief: 1944 and 1952. Poor quality educational programs for the purpose of clothing bodies of men, n nre being reported among tne proprietary schools, succession, with these qualities and cap icities and a State approval process required by federal that corporations were invented, and are in code (Title 38) was established to mitigate the use. By these means a perpetual succession of abuses of these programs (Chambers, 1983, p. 243) individuals are capable of acting for the promotion of the particular object, like one mortal Because of the great popularity of proprietary voca- being (The Trustees of Dartmouth College v tional schools among the veterans, these schools Woodward, 4 Wheat (U S.) 518 (1819) were instrumental in securing a place in both federal and State statutes which would continue to In addition to the virtue of -perpetual succession," qualify them to serve veterans.But in granting the corporate form also has the merit of placing the these institutions this legal status, the California ultimate authority for the educational enterprise in Legislature blurred the distinctions between voca- the hands of a deliberative, democratic body of indi- tional schools and degree-granting institutions. viduals (the Act of 1850 specified 12 to 24 -capable This merging of these types of institutions occurred men") rather than one individual as may occur by defining "diploma" to include all types of creden- presently in "sore proprietorship universities" in tials or certificates including academic degrees as California. Standard 3A of the senior commission well as vocational certificate and then treating all of the Western Association of Schools and Colleges diploma-granting institutions under similar provi- identifies the role of the governing board in the fol- sions of the statutes.In this process, it was politi- lowing manner cally infeasible to require all proprietary schools to The governing board is ultimately responsible adopt a corporate structure: consequently, the man- for the quality and integrity of the institution. dation was removed from the law ..The board protects the institution from external pressures antithetical to academic freedom, to institutional autonomy, or to integrity. (Accrediting Commission for Seor Colleges Fiscal accountability, consumer protection, and Universities, Western Association of and institutional quality Schools and Colleges, 1988, p..19.) In many respects. California's 1958 statute affect- Institutions that do not grant degrees, namely ing private postsecondary education was

55 pressed in statutory law. Through the first half of 1. A definition of the term diploma. the twentieth century, state policies were basedon the expectation that institutions would regulate 2. The inclusion of proprietary institutions in the themselves; California, like other states in the na- Education Code. (These institutions were strict- tion, tended to avoid a regulatory posture (Accred.. ly vocational schools up to t ime and were covered in the Business and Professions Code). ... Bender, 1983, p. 20). But by the latter 1950s, the active role of the federal government in postsec- The revision allowed proprietary degree-granting institutions to operate under the law for the ondary education began to affect state policyIs- sues of fiscal accountability, consumer protection, first time in the State. and institutional quality came to the fore in the 3. The provision allowing the Superintendent of 1970s, propelled by federal concerns for the proper Public Instruction to "rely on an accredi :.ng and productive use of public funds. The federalgov- agency generally accepted by the class of insti- ernment led the way; California grudgingly fol- tutions concerned ...." lowed. 4. The provision to empower the Superintendent of The early events that were influential in the State's Public Instruction to "make such investigations first major legislation affecting private postsecond- as are necessary to determine whether or not ary institutions during this period were there has been compliance ." In addition, the 1. The resurgence of veterans attending college Sta.''s adjudicatory hearing process was made under The Serviceman's Readjustment Act of "applicable to any determination of the superin- 1944 and The Veterans Readjustment Assis- tendent pursuant to this subdivision." (In so far tance Act of 1952 (after some decline in the as earlier compliance language is concerned, a early 1950s); and the particular aspects of the penalty for violating this Section of the Code 'attn. Act affecting the selection of institutions was first introduced in 1927 [a violation was a serving these students: misdemeanor in 1927; this was upgraded to a felony in 1958], and the Attorney General was a. The state approval process required by the enjoined to take steps to dissolve the noncomply- Act; ing corporation, restrain fraudulent practices b. The publication by the federal Commissioner and punish any person guilty of fraudulent prac- of Education of "a list of nationally recog- tices [also in 1927].) nized accrediting agencies and associations 5. The Legislature provided General Fund support which he determines to be reliable authori- for the administration of this law ($25,665 for ties of quality ..." FY 1958 -`'9. 2. The large increase in proprietary institutions 6.Legislative intent language was added to the springing up, some of dubious quality, to serve end of Section 24220 expressing support for fos- the veterans (Chambers, p `,t39). tering private education and protecting the in- These developments resulted in the passage of the tegrity of the degreeIt was during this period State's Amendments of 1958, strongly supported, if of planning for the rapid growth of higher edu- not actually sponsored, by the private institutions cation enrollments that the Master Plan Com- The codification of statutory language from federal mittee had projected a nearly 300 percent in- legislation from the State's Health and Safety crease in college enrollments during the years Code, the Business and Professions Code. the Gov- 1960-1975.In point of fact, their best projec- ernmen. Code, reflected an effort to make this tions seriously underestimated enrollments in legislative product a comprehensive svaternent of 1975 and had not even taken into account the current State concerns regarding its responsibili- proprietary sector.It was this environment ties for the oversight of private postsecondary edu- vhich produced the statement of legislative in- cation. tent which is still continued in the Education Code: The outcome WLS a lengthy statute covering these new or expanded policy areas: In the present period the need for educational services for the youth (emphasis added) is so

56 6 6 great that it cannot be met by tax - supported taken pursuant to Business and Professions institutions alone.The contribution of pri- Code, Section 29,11.5 by students of any appli- vately supported educational institutions to cant. (This section of the Business and Profes- the preservation of our liberties is essential. sions Code governed the administration of ju- These can best be served by protecting the in- nior examinations, listed qualifications, and tegrity of diplomas issued by such institutions. scope of examination.) Six categories of State licensure of institutions As an expression of State concerns in the oversight were created or codified in this 1958 StatuteSec- of private postsecondary education, the 1958 Act tion 24206 of the Education Code contained the lan- was a curious piece of legislation. It was clearly in- guage which stated that "except as otherwise pro- clusionary; that is to say, every effort appears to vided by law, no'person, firm, association, partner- have been made to include every category of licen- ship or corporation may issue or confer a diploma or sure (including state accreditation) in the State in honorary diploma unless such person, firm, associa- the six categories of institutional qualification in- tion, partnership or corporation meets the require- the Education Code. One result was that the terms ments of one of the following subdivisions " authorization, approval, and accreditation were all used without either an explicit or implied hierar- a.A corporation which has filed an affidavit. chical structure. The 1958 Act also reflected an ef- stating that it owns an interest in real of per- fort to strengthen the compliance authority of the sonal property used exclusively for educational Superintendent by providing a basis for prosecut- purposes, of a value of not less than $50,000 ing the fraudulent issuance of diplomas, but at the b.A hospital licensed under the Health and Safe- same time it did liftle for ensuring the integrity of ty Code diplomas wi nin the universe of State licensed institutions. The Statute expressed the intent but did c.A person, firm, partnership or corporation which is approved by a licensing beard under not come fully to grips with the means for carrying the Department of Professional and 'rocational out that intent. Standards d.Any educational institution accredited by the State Board of Education for offering training Significant deletions of State polity for teacher credentialing purposes The new statutes of 1958 omitted some significant e.Any institution approved by the Bureau of Re- requirements from earlier law (1) the requirement adjustment Education of the Department of Ed- that degree-granting institutions be incorporated ucation and, thus, have corporate (governing) boards f. A person, firm, association, partnership or cor- (required since 1850); 12) the restriction against poration authorized by the Superintendent of distributing profits of profit-making educational Public Instruction to issue specified diplomas corporations (degree-granting) except upon dissolu- Such authorization was available to the institution of the corpora n ' required since 1927); and (3) tion if it could demonstrate "that the courses of the requirement (since 1927) that degree-granting instruction, and the faculty or requirements of institutions submit an annual report to the Super- such applicants will afford students or require intendent containing ',.he number of students of the of students a course of education comparable to corporation, together with the names and addresses that being furnished by persons, firms, associa- of the students, the courses of study offered by the tions, partnerships and corporations offering corporation, the names and addresses of the teach- similar instruction and complying with o. "ler ers employed by the corporation, the subjects subdivisions hereof."For the purpose of this taught by them, the degrees, diplomas, or certifi- subdivision, the Superintendent of Public In- cates, if any. granted by the corporation, and to struction may rely on the findings oi an accred- whom granted, the curricula upon which the de- iting agency generally accepted by the class of grees, diplomas, or certificates were granted, and institution concerned (emphasis added) and any other information concerning the educational shall consider the results of the examination work or activities of the corporation that may be re-

57 quired by the Superintendent of Public Instruction vate Postsecondary Education Act of 1977 made au- (1943Education Code,Section 24213) thorization site visits mandatory. While the 1958 Statute brought together in one Section of theEducation Codea number of licensing procedures that had existed in a variety of Reform begins in the 1970s Codes and actually added one which for the first time allowed the State to rely upon non-govern- Throughout the 1960s and the early 1970s, the mental accreditation, it did more to confuse State State's licensing statutes were gradually amended licensure responsibilities than to improve them to provide (1) a differentiation in levels of quality in By placing the six licensure categories in juxtaposi- the State's li.ensing process. (2) more consumer tion without any apparent sense of relationship or protection, and (3) more on-site review of institu- qualitative ranking, the State inadvertently gave tions. The first two of these three major changes the impression that there were no useful distinc- were the results of developnit.:-...s at the national tions to be made between the "state-accredited" level which compelled the State to upgrade its stat- teacher education institutions, the "state-ap- utes; the latter change resulted largely from a Corn- proved" institutions(approvedfor veterans' bene- mis,:ion recommendation amended into the Private fits), and a "state-authorized" institution author- secondary Education Act of 1977.* ized by the Superintendent on the basis of its accreditation or on the basis of having $50,000 in net assets. Each of the licensing processes and criteria were ery different and had been developed by dif- The assessment of institutional quality and ferent agencies for very different purposes. State recognition Several negative by-pnducts developed from the 1958 amendments. As a result of this new Statute, The currentEducation Codehas three levels of the State made it feasible for a single individual State recognition for collegiate Institutions which (without incorporating) to operate a profit-making require descending degrees of qualitative standards "university" under Section 24206 (f).A Section and rigor in their evaluation procedures. These 24206 (a) corporation could operate even if its three levels are accreditation by a non-government- $50,000 in personal assets were maintained out-of- al accrediting agency, State approval, and State au- (Education Code state (34 Ops. Att Gen.98).All private institu- thorization Sections 94310.1a,b, tions were given equal status under the law, al- 94310 2, and 94310.3/94310 4, respectively). Prior though only accredited institutions and, to a lesser to the adoption of the State's 1958 licensing law, degree, institutions approved for veterans' benefits, references to qualitative standards for institutions had on-site reviews that were not required of the did not exist. As a matter of fact, unless one holds $50,000 schools.Because the annual reporting that the requirements that an institution's board process had been deleted, the $50,000 schools also members be "capabia men" or that the minimal fi- had no requirement to report any instructional or nancial requirement of $50.000 in net assets are degree-granting activitiesThe law did require qualitative standards, one could argue that the that records of students he maintained for three State of California did not consider institutionai years, but a site visit by State representatives to ex- quality to be a matter of governmental concern un- amine the records or any other aspect of the institu- til after the federal government (in 1952) had found un's operations was not a standard operating pro- it necessary to rely upon certain "accreditation cedure. It was not until 20 years later that the Pri- agencies as reliable authorities as to the quality of training offered by an educational institution. " The Commission's 1976 report,The Role of the State cn (P L 82-550, Section 1775) Private Pestsecondary Education: Recommertdattons for Change.e

r. the federal Office of Education) were able to main- appropriate established accredited institutions tain their licensed status merely by submitting an .." (1986 amendments) annual affidavit stating that the institution was ac- A discussion of the implementation of these proc- credited.If the question of whether the State esses is a topic more appropriately reserved for the should require an assessment of institutions be- Commission's review of the entire Private Postsec- yond that required for accreditation as a part of its ondary Education Act of 1977, Protecting the Integ- licensing process was an issue, on this issue the rity of California Degrees. The relg.tionship of the State deferred. The CPEC cautioned in 1976 that State's concern with the quality of an institution's non-governmental accreditation was not a foolproof programs to questions of compliance with mini- process of institutional assessment, that the State mum standards is a topic which deserves more at- had given up its responsibility forON-rgight of ac- tention than can be given here.It is perhaps suffi- credited institutions in the licensing law (Educa- cient at this point to observe that the State has tion Code Section 29023 (a)(1)), and that such abdi- made a commitment to assess the quality of certain- cation "is not only unwise, but may subject the institutions under its purview and is currently in- State to civil liability" (OPEC, 76 -7iThis wholesale volved in carrying out this task relinquishing of authority was recently remedied in part by SB 1884 of 1988. This law empowers the Superintendent of Public Instruction to remove an accredited institution's license to operate in the consumer protection State if the institution is not in compliance witn its own accreditation agency's standards and the ac- The student has been the object of concern in the crediting association has not addressed the institu- discussions of consumer protection from at least the tion's lack of such non-compliance. 1960s to the present. There is another group of con- If the evolution of California's licensing law is any sumers the persons, groups, or agencies benefit- indica( .on, there seems to have emerged within the ting from or using the judgments of the credential- last decade a growing consensus that it is an appro- ing authority" (Miiler and Mills, p. 9). These con- priate function of the State to be concerned ,ith the sumers -- the employers of students once they have quality of the private postsecondary institutions graduated -- also have rights that should be pro- that operate within its boundaries. Such a judg- tected, however the interests of this consumer cli- ment seems justified on the basis of two relatively entele are usually considered in discussions relat- recent developments: ing to the ensuring of institutional quality and the integrity of the degree rather in discussions of "con- State licenst.we of out-of-state accredited insti- sumer protection." tutions: Education Code Section 94310 lb provides a process for the State to review the Cali- Certain protecion was afforded students through fornia branches of accredited institutions from amendments introduced into the State's licensure other regions of the nation.The standards law as early as 1963 when a number of prohibitions adopted by the Private Postsecondary Educa- relating to false advertising were added (Statutes of tion Division for use in this process reflect th,.! 1963, Education Code Section 29008). The major qualitative standards of the regional accredit- effort to address the problems students were experi- ing associations which have accredited the encing came in the 1970s The Federal Trade Com- main campuses of these institutions 1986 mission held extensive hearings on private postsec- amendment) ondary institutions to determine the extent of the lack of student protectionThe CPEC report cited State approval by means of a qualitative review above (76-7, pp. 87-102), drew from the results of and assessment of an institution.Education this process in listing seen problem areas ranging Code Section 94310 2 provides for a qualita- from tuition refund problems, to abrupt school clo- tive review and assessment of each program of sures, and the lack of an effective procedure for an institution seeking State approval, includ- handling student complaintsIn each case, an ap- ing a determination that "the curriculum is propriate remedy through State law was recom- consistent in quality with curricula offered by mended and many of these recommendations subse-

59 quently were adopted in the Private Postsecondary As an expression of the State's responsibility for the Education Act of 1977. oversight of private institutions, the increases in the number of campus visits by State review teams may seem to be of secondary importance. Specific goals of the State's oversight -- maintaining the in- Increase in team site visits in the licensing tegrity of degrees, determining the financial stabil- process ity of institutions, or ensuring that student protection provisions are working -- seem to be more cen- In 1982, only the approval process for licensing tral to the questions of the State's responsibilities degree-granting institutions (Education Code Sec- regarding the operation of private institutions and tion 94310.2) required a campus review by a team of its reliance upon accreditation. composed of peer evaluators and State personnel. Since that time, institutional review teams have The changes in statute which brought about the in- been instituted for out-of-state accredited institu- crease in on-site reviews by State evaluation teams tions operating in California and for authorized in- does not signify a change in State goals in the over- stitutions operating under both Education Code sight of private postsecondary education, but it does Sections 94310.3 and 94310.4. The number of State indicate an important change in the administrative evaluation visits to these institutions has risen attitude toward the pursuit of these goals: a change from only a few institutions per year in 1982 to from a distant, laissez fare posture to a more ac- about 50 during 1987. tive, involved oversight

5t.;

60 References

Accrediting Commission for Senior Colleges and Chambers, Charles M "Federal Government and Universities, Western Associatrion of Schools and Accreditation," in Young and others, eds., Under- Colleges. Handbook of Accreditation. Oakland: The standing Accreditation Contemporary Perspective Commission, January 1988. on Issues and Practices in Evaluating Educational Quality. San Francisco Jossey-Bass, 1983, pp. 233- American Association of Bible CollegesManual 269. on Procedures, Criteria, and Policies Fayetteville, Arkansas: The Association, 1988 Comptroller General of the United states. Report to the Congress of the I'm!, d States What Assurance Bender, Louis W "Accreditation Misuses and Mis- Does Office of Education's Eligibility Process Pro- conceptions," in Kenneth E Young and others, eds. vide? Washington, D CI nited States General Ac- Understanding Accreditation Contemporary Per- counting Office, 1979. p 14 spective on Issues and Practices in Evaluating Edu- cational Quality. San Francisco: Jossey-Bass,1983, Council an Postsecondary Accreditation. A Guide to pp. 71-86. COPA Recognized Accrediting Bodies, 1986-1988. Washington, D C The Council, no date. California Postsecondary Education Commission. The Role of the State in Private Postsecondary Edu- --. Policies and Guidelines Handbook. Washington, cation: Recommendations for Change. Commission D C.: The Council, March 1984. Report 76-7. Sacramento: The Commission, 1976. Dumke, Glenn. "Accrediting: The Weak Link in --. Put lic Policy, Accreditation, and State Approval: Education Reform," The Chru-le of Higher Edu Seat,: Reliance on Non-Governmental Accrediting cati in, January 15, 1986, 104. Agencies and on State Recognition ofPostsecondary Institutions to Serve the Public InterestCommis- Miller, Jerry W., and Mills, Olive, eds. Credential- sion Report 84-28. Sacramento The Commission, tng Education Accomplishment. Washington, D C.. July 1984 American Council on Education, 1978.

--.Protecting the Integrity of California Degrees: Rudolph, Frederick. The A mericanCollege and Uni- The Role of California's Private Postsecondary Edu- versity A History New York Vintage Books, 1962 catioon Act of 1977 in Educational Quality Control. Commission Report 89-17Sacramento. The Com- United States Depai tment of Education. National- mission, April 1989 ly Recognized Accreditin4 Agencies and Associa- tions: Criteria ana Procedures for I fisting by the California Student kid Commission California Ed- U.S. Secretary of Education and Current Ltst ucational Loan Programs Default Report for all In- Washington, DC CS Department of Education. state Schools. Sacramento The Commission, May January 1988 1988. Young, Kenneth E "Accreditation Complex Eval- Student Borrowing in California. Sacramento uation Tool," in Kenneth E. Young and others, eds California Student Aid Commission, March 1988 Understanding Accreditation Contemporary Per- spective on Issues and Practices in Evaluating Edu- Carnegie Foundation for the Advancement of Teach- cational Quality. San Francisco Jossey-Bass, 1983, ing. Annual Report. New York. The Foundation, pp. 19-35. 1906.

61 PROTECTING THE INTEGRITY OF CALIFORNIA DEGREES

Witiv Ati F2....

"No kidding? Are you really getting college credit for thi,?"

CALIFORNIA POSTSECONDARY EDUCATION i°5 ""°"""i COMMISSION .

J 0 2 1.0 0 COMM12210/1 0 Summary

California's law regulating privately supported postsecondary education -- the Private Postsecondary Education Act of 1977will sunset on January 1, 1992, unless the Legislature extends or repeals its termination date.In anticipation of that decision, the Legislature directed the Commission to report by September 1, 1989, on the effectiveness of certain portions of the law in "protecting the integrity of degrees and diplomas mailed by private postsecondary educational institutions" as well as on the implementation of the law by the Cal- ifornia State Department of Education. In this report, the Commission responds to the Legislature'srequest. Part One of the report briefly describes the scope of California's private postsecondary education enterprise and offers 21 findings about its regulation by the State. Part Two traces the origins and development of today's law; Part Three assesses the eff"ctiveness of the law in achieving its goals; Part Four evaluates tne adequacy of its implementation by the Department of Education; and Part Fivesumma- rizes the problems that stem from the law's defects and its inadequate implementation. Eight years ago, in the Commission's five-year plan for California postsecondary education from 1982 to 1987, the Commission identified as one of its nine priorities for action the protection of the integrity of California's degrees and other credentials. Over that half-ae- cade, California has made more progress in assuring a basic level of consumer protection regarding its degrees than in the previous 20. Yet this report concludes that still more progress is needed, both in strengthening the law itself and its implementation, in order to bring California to the minimum level of consumer protection offered by other major industrial states of the nation.Otherwise "California will retain its reputation throughout the country and the world for tolerating questionable credits and discount diplomas, and it willcon- tinue to be unable to ensure the integrity of its degrees and thepro- tection of its citizens who depend on that integrity" (p 60). The Commission adopted this document, along witha related report, Recommendations for Revising the Private Postsecondary Education Act of 1977, at its meeting on April 17, 1989 Additional copies of both reports may be obtained from the Library of the Commission at (916) 322-8031. Questions about the substance of this reportmay be directed to JB Hefferlin of the Commission staff at (916) 322-8021

Cover drawing courtesy Harley L. Schwadron of Ann Arbor, Michigan, and Phi Delta Kappan. PROTECTING THE INTEGRITY OF CALIFORNIA DEGREES

The Role of California's Private Postsecondary Education Act of 1977 in Educational Quality Control

POSTSECONDARY < z tr 0 U.

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CALIFORNIA POSTSECONDARY EDUCATION COMMISSIONti Third Floor1020 Twelfth StreetSacramento, California 95814-3985 0.COMM I S S I ON CI . t0 u iI''I 0 CO* INIPOI11 13 COMMISSION REPORT 89-17 PUBLISHED APRIL 1989

This report, like other publicationsof the California Postsecondary Education Commission, is not copyrighted.It may be reproduced in the public interest, butproper attribution to Report 89-17 of the California Postsecondary EducationCommission is requested.

5J Contents

1. Findings 1

Scope of the Private Postsecondary Enterprise 1 Size and Role of Private zducation 3 Imprrtanle of the Law 3 Adequacy of the Law 3 Adequacy of Implementation 4 Summary 5

2. Origins of Today's Law 7 Amendments of 1927 7 Amendments of 1958 8 Changes in the 1960s and '70s 10 The 1977 Acr, and Its Amendments 12 Origins of the Present Study 14

3. Importance of the Law 19 Importance of Meaningful Degrees 19 Maintenance of Integrity 21 Success of the Law 23 Strengths of the Law 27 Weaknesses of the Law 29 Enforcement Provisions 33 Conclusion 35

4. Implementation of the Law 37 Role of the Superintendent 37 Role of the Council for Private Postsecondary Educational Institutions 38 Role of the Private Postsecondary Education Division 40 Implementation of the 1977 Act 45 Enforcement of the Law 52 Conclusions 53 ::)._, 5. Conclusions 55 "How to Earn An American University Degree Without Ever Going to America" 55 Impact of Nontraditional Education 57 Consequence of Inaction 59

Appendices 61

A.Private Postsecondary Education Act of 1977, as Amended 61

B. Prohibited Activities 89

C. Enrollments and Degrees Awarded 91

References 99

5 Displays

1. The Scope of California Postsecondary Education as of November 1988 2

2. An Act to Provide for the Incorporation of Colleges, Passed April 20, 1850 7

3. Recommendations of the California Postsecondary Education Commission Regarding Oversight of Private Institutions, 1976 13

4. Letter from Terry Suzuki, Director of External Program, Union University, to Representative Claude Pepper, November 23, 1985 18

5. Number of Degree-Granting Institutions Operating in California, by Type, 1980-1988 24

6. Organization Chart of the California State Department of Education, 1988, Emphasizing the Location of the Private Postsecondary Education Division 36

7. Organization and Staff of the Private Postsecondary Education Division, July 1988 41

8. Expenditures by the Private Postsecondary Education Division, Fiscal Years 1982-1987, by Source of Funds (Dollars in Thousands) 43

9. Geographic Areas Staffed by Division Staff Consultants, 1988 46

10. Primary Evidence of Comparability with Accredited Institutions Submitted to the Private Postsecondary Education Division by 29 Institutions Applying for Institutional Approval or Reapproval 50

11. Advertisements for Pacific Southern University Appearing in the Hong Kong Economic Journal, Summer 1988 54

12. Statement in Pacific Southern University Booklet, Off Campus Alternatives to Higher Education 56

C' 4, ij 1 Findings

THE California Legislature has charged the Califor- State authorized: California uses the term author- nia Postsecondary Education Commission to review ization to refer to its minimum license for private the Private Postsecondary Education Act of 1977 -- postsecondary institutions. Unless a degree-grant- the State's primary law regulating all privately sup- ing institution is exempted from the provisions of ported education beyond the high school, which is the law for religious reasons, it must obtain auth- reproduced on pages 61-88 below. The Commission orization from the Superintendent of Public In- is to report to the Legislature by next September on struction to operate and grant degrees. Vie Su-_ two topics: (1) the implementation of the law by the perintendent grants authorization for up to five State Department of Education, and (2) the effec- years to colleges and universities on the basis of a tiveness of three sections of the law in protecting comprehensive on-site review, or for up to three the integrity of degrees and diplomas issued by pri- years to schools of theology on the basis of the ac- vate postsecondary educational institutions" (Edu- curacy of their documents and $50,000 of net education Code Section 94345). cation assets. Some institutions prefer to remain authorized rather than move to State-approved This document responds to the Legislature's charge. status or seek accreditation: and according to the After tracing the origins of today's law in Part Two, Private Postsecondary Education Division in the it assesses the effectiveness of the law in Part Three State Department of Education, 78 of them were and then discusses its implementation by the De- authorized as colleges or universities and 12 were partment of Education in Part Four. As an introduc- authorized as schools of theology as of November tion, this first section presents an overview of private- 1988. ly supported postsecondary education in California and summarizes the Commission's findings about the State approved- Authorized institutions may de impact and operation of the law. cide to earn State approval if they wish, but they are not required to do so. State-approved institutions have had all of their degree programs approved by the Superintendent on the basis of an Scope of the private institutional self-study and a comprehensive on- postsecondary enterprise site evaluation of the quality of these programs. Historically, approval has been considered as the Postsecondary education in California consists of a State's highest level of review. Moreover, only wide variety of institutions -- public and private, de- State-approved institutions are eligible to be ac- gree grantii.; and non-degree granting -- as Display credited by the region's recognized accrediting 1 on page 2 shows. agency -- the Western Association of Schools and The public sector consists of some 536 institutions Colleges. Currently 70 are approved by the Su- arid campuses of multi-campus systems -- California's perintendent, who grants approval for periods of State-supported community colleges and universi- up to three years. ties as well as 330 adult schools and 70 regional oc- Accredited: The State permits California-based ac- cupational centers. credited institutions to award degrees based on an Its privately supported sector consists of a far larger annual affidavit of their accreditation by the Corn- and more complex assortment of institutions, includ- mitteh of Bar Examiners for the State of Califor- ing State authorized, State-approved, accredited, nia or an accrediting agency recognized by the and religiously exempt.Its over 450 degree-grant- United States Secretary of Education. Currently ing institutions are grouped into these major cate- 197 are operating under this section of the Educa- gories under the 1977 act: tion Code.

1 DISPLAY 1 The Scope of California Postsecondary Education as of November 1988

Publicly Supported Privately Supported Degree Granting Degree Granting University of California 197 accredited California-based colleges and universities (9 campuses) 12 branches of accredited out-of-state colleges and universities The California State 70 State approved institutions University (19 campuses) 78 State-authorized colleges aria universities 106 Community Colleges 12 State-authorized schools of theology California Maritime Academy Approximately 87 institutions operating with religious exemptions Hastings College of the Law Unknown number of institutions operating without exemptions

Non-Degree Granting Non-Degree Granting 316 accredited schools, institutes, and other institutions 330 Adult Schools 1,762 approved non-degree granting institutions 70 Regional Occupational Centers 391 licensed schools and hospitals

Sources: California Postsecondary Education Commission and Private Postsecondary Education Division, November 19886.

Accredited out-of-state: The State allows branches related are those that offer flight training, business of out-of-state accredited institutions to operate in training, preparation for real estate salesperson li- California by licensing than. Currently a dozen censes, and cosmetology. They may be categorized are operating here, although some are not licens- as follows: ed as accredited out-of-state but as authorized. Accredited: Currently 316 offer programs accredit- Religiously exempt: The State exempts programs ed by one or another nationally recognized ac- of nonprofit religious institutions from the provi- crediting agency, based on submitting an annual sions of the law if they are restricted solely to the affidavit of their accreditation. principles of a church or denomination, but it does State-approved: Some 1,762 are approved by the not recognize, license, or approve them or their Superintendent for one-Year periods as meeting degrees. The Superintendent has exempted some nine specific criteria of quality. 87 in recent years, but an unknown number operate without having applied for exemption. State-authorized: Three-hundred and ninety-one are licensed by state boards or agencies or the Beyond these privately supported degree-granting Federal Aviation Administration -- 18 of them institutions, nearly 2,500 others prepare students in hospitals that offer non-degree programs in the specific skills or for specific careers but offer diplo- health sciences. mas or certificates of attainment rather than academic degrees. The most numerous of these career-

2 Size and role of private education acceptance of their degrees by public institutions as well as help protect the integrity of these degrees. Although California's privately supported institutions outnumber its State-supported ones by a ratio 2. California has an interest in ensuring the mean- of over five to one -- ne..-.rly 3,000 compared to 536, ing of all educational certificates, diplomas, and de- the public sector enrolls more studentsIts degree- grees, since its citizens, corporations, and agencies granting institutions enroll aver 1.5 million alone increasingly use these credentials for making major a million of them in community colleges.Data on personal and occupational decisions.Rather than the number of students in privately supported in- confusing or weakening the meaning of degrees and stitutions is scattered and incomplete, since Califor- contributing to public cynicism and distt ust of them, nia requires only its public institutions to supply the State wisely seeks to ensure their meaning and these facts annually. Thus State policymakers have their proper use. little reliable information on which to base their decisions affecting the private sector. But the Pri- 3. California's changing demographics are increas- vate Postsecondary Education Division of the De- ing its need for consumer protection regarding aca- partment of Education estimates that nearly a mil- demic degrees. While some native-born Californians lion students attend non-degree granting private are likely to buy degrees that prove worthless in schools with H & R Block and Century 21 enrolling their careers, many of California's growing ni.. lber hundreds of thousands of them. From data available of immigrants may be vulnerable to doing so because to the Commission and reproduced in Appendix C to they are less knowledgeable about differences in the this report, the Commission estimates that a consid- utility of various degrees. erably smaller number attend degree-granting institutions and that, of these, more attend accredited than non-accredited institutions. Adequacy of the law Despite their average small size, private institutions play an important role in California education. Per- 4. Under the 1977 act, privately supported postsec- haps most important is their innovative function: ondary education has flourished. California has the They enter new fields, pioneer new programs, and offer new forms of education that are only later widest array of excellent private institutions of any state in the nation, including many good non-accred- adopted by public institutions. California at large, ited ones. But others are inadequate, and they have as well as California education, is stronger because worldwide repercussions in throwing suspicion on the of them. reputation of the rest. Through the Private Postsecondary Education Act of 1977, California seeks to promote privately support- 5. The Private Postsecondary Education Act regu- ed education beyond the hi ,h school.It aims to en- lates both non-degree granting and degree-granting courage recognition of the degrees and diplomas is- institutions, and California needs to ensure better sued by pri% ate institutions, and it tries to protect regulation of both types of institution. the integrity of these credentials. Based on the Com- mission's analysis of the law and its implementa- 6. Over the past five years, through amendments to tion, the Commission has come to the following 21 the act, California has made more progress in ensur- conclusions about its effectiveness: ing a basic level of consumer protection regarding diplomas and degrees than in the previous 20. Still more progress is needed, however, to bring Califor- nia to the minimum level of protection offered by Importance of the law other major industrial states of the nation.

1. The intent of the Private Postsecondary Educa- 7. The law has not succeeded in protecting the in- tion Act is sound: California benefits from non-pub- tegrity of degrees, integrating non-accredited pri- lic higher education, and it should continue to en- vate higher education into the mainstream of Cali- courage privately supported institutions and the fornia higher education, ensuring respect and credi-

1 0_ 3 bility for the entire private sector or achieving recog- to meet its existing law, it would enhance respect for nition of degrees from non-accredited institutions. these credentials significantly.

8. The law's sections that regulate private degree- 14. California may expect too much leadership in granting education have several strengths -- in par- this area from its Superintendents of Public Instruc- ticular, its new standards for all State-authorized tion, who are charged with implementation. Neither colleges and universities, including the requirement of the State's recent Superintendents have succeeded that they offer instruction, and its expectation that in obtaining adequate funds for implementing the the California operations of all out-of-state accred- law. ited institutions meet commonly accepted standards of quality. 15 The Council for Private Postsecondary Educa- tional Institutions, which exists to advise the Super- 9.The greatest weakness of the law in ensuring intendent regarding the law, has taken the lead in the meaning of California degrees is its exemption of strengthening the State's minimum standards for presumably religious institutions from Lts require- degree-granting institutions but until last year hin ments and standards, which allows any seemingly dered implementation of the law by its veto of pro- ecclesiastical organization to grant degrees for years posed increases in institutional fees. until it is finally prohibited from doing so by the At- torney General. 16. The Division of Private Postsecondary Educa- tion in the Department of Education is unable to en- 10. A second failure is the law's specification that sure the integrity of degrees and diplomas because the curriculum of State-approved institutions is con- its first obligation is to fulfill its Veterans Adminis- sistent in quality with those of accredited institu- tration contract as California's "state approval agen- tions and that the academic achievement of their cy" for courses taken by veterans, military person- graduates are also comparable, leading to confusion nel, and their dependents. about the integrity of the degrees of both accredited and approved institutions. 17. The Division is unable to regulate adequately the number of institutions it oversees and exempts 11. A third weakness is its two categories of "auth- because of funding limits imposed by the Depart- orization" with wit ely different standards for col- ment of Finance, the Legislature, and -- until last leges and universities on the one hand and schools of year -- the Council for Private Postsecondary Educa- theology on the other. tional Institutions.

12. The other major problem of the law is its en- 18. The Division has been ineffective in enforcing forcemen sections, which lack adequate first-of- the standards of the law because of the failure of fence penalties, sufficient "padlock" provisions to some staff members to require approved and auth- halt the operation of substandard authorized insti- orized institutions to meet these standards, includ- tutions, continuing jurisdiction of proprietors, and ing (1) adequate achievement of the graduates of ap- statutory language governing nolo contendere con- proved institutions and (2) systematic, rigorous eval- victions of proprietors or agents. uations for awarding credit by authorized institutions.

19. California's dependence on institutional fees to Adequacy of implementation cover the costs of regulation causes Division staff to place their advisory and consultative roles to insti- 13. More problems in ensuring the integrity of de- tutions ahead of their regulatory duties, thereby ser- grees and diplomas stem from inadequate imple- iously weakening enforcement of the law mentation of the law than from inadequacies of the law itself. If California simply required institutions 20. The Division's past operating practices may prevent the Office of the Attorney General from arguing successfully cases that stem from the Division's de- schools) into California's postsecondary education nial of reauthorization or reapproval. system; provide an appropriate regulatory agency that is responsive to the needs of both the producer and consumer of private education; and foster and improve the educational programs anservices of Summary private institutions while protecting the citizens of California from fraudulent or substandard opera- 21. In 19'76, the Commission recommended that the tions" (p. 118). The Private Postsecondary Educa- Legislature undertake a complete revision of the ex- tion Act of 19'77 was the result.Despite improve- isting statute regulating private postsecondary edu- ments both in the law and its implementation since cation in order to "promote the integration of private then, these goals of the Commission ccntinue to institutions (particularlyvocational / technical elude attainment.

11k..,..) 5 Chap. 117.

AN ACT to provide for the Incorporation of Colleges. Passed April 20, 1850.

The People of the State of California. &presented in Senate and Assembly, do enact as follows:

11. Any College may be incorporated in this State, according to the provisions of this Act, by the&mmocourt may inc orporate Supreme Court of the state, upon application. wanes. 2. The founders or contributors of any proposed College within this State shall make to theApplication for incornorauon of Supreme Court application writing, under their hands. requesting that - (1)11ege may becollages. incorporated. specifying the tirst trustees. and the name by which the corporation is to be called. 3. In case the Court shall be satisfied that the proposed Collett?, has an endowment of twenty,vairt,:cazie. thousand dollars. and that the proposed trustees are capable men, then the Court shall, by an instrument(DeafPOrtUld under its seal. declare the College incorporated. under the provisions of this Act, by the name specified in the application ; and the application. together with the declaration of the Caixt, shall be recorded inApplication and decturauon to be the office of the Secretary of State. recorded. 4. Immediately after recording the same, the property and funds of sucb College shall be vested in of the trustees so nominated, for the use and benefit of the College. Codes' to vest in

§ 5. The trustees of every such College shall not be more than twenty-four, nor less than twelveshunter of truswei. in number ; and seven trustees of any college shall constitute a quorum for the transaction of business. Quorum. § 6. The trustees of every such College shall be a corporation, known by the name and style of the Style of escort poratio. President and Board of Trustees of- College ; and by that name they and their successors shall be known in law, have perpetual succession, sue, and be sued, in all Courts and in all actions whatsoever. § 7. The trustees shall have power, 1. To elect by ballot, annually, one of their number as PresidentPowers or of the Board :2. Upon the death, removal out of the State, or other vacancy in the office of any trustee, to elect another in his place: 3. To elect additional trustees, provided the whole number elected shall never exceed twenty-four at any one time : 4. To declare vacant the seat of any trustee who shall absent himself from eight succeeding meetings of the Board :5. To receive and hold, by purchase, gift, or grant, any real or perscnal property; Provided, that the yearly income of the College shall not exceed its necessary yearly e7.penses ten thousand dollars ;6. To sell, mortgage, lease, and others Ise use and dispose or such property, in such manner as they shall deem most conducive to the prosperity of the College: 7. To direct and prescribe the course of study and discipline to be observed in the

College : 8. To appoint a President of the College, who shall hold his office during good behavior: 0. To appoint such Professors, Tutors, and other officers as they shall deemnecessary, who, unless employed under a special contract, /Shall hold their offices during the pleasure of the trustees:10. lo remove from office the President, and every Professor, Tutor, or other officer employed, upon a complaint in writing, by any member of Board of Trustees, stating the misbehavior inoffice, incapacity, immoral conduct of the person or persons sought to be removed, andupon due examination and proof of such complaint :11. To grant such literary honors as are usually granted by any University, College, or Seminary of learning in the United States, and in testimony thereof, togive suitable diplomas under their seal, and the signature of such officers of the Collegeas they shall deem expedient : 12. To fix the salaries of the President, Professors, and other officers of the college:13. To make all by-laws and ordinances necessary and proper to carry into effect the precedingpowers, and necessary to advance the interests of the College ; Provided, that no by-laws or ordinance shall conflict with the Constitution or laws of the United States or of this State. § 8. Every diploma granted by such trustees shall entitle thepossessor to all the immunities which, by usfige or statute, are allowed to possessors of similar diplomas, granted byany University, College, diploma.Effe ct of or Seminary of learning in the United States.

DISPLAY 2

6 Origins of Today's Law

CALIFORNIA'S Constitution instructs the Legisla- Amendments of 1927 ture to "encourage by all suitable means the promotion of intellectual, scientific, moral, and agricul- The 1927 Amendments reinforced the 1850 require- tural improvement." The "suitable means" employ ment that collegiate institutions had to he incorpor- ed by the Legislature to implement this goal in- ated by clearly prohibiting individuals from grant- clude establishing public institutions and licensing ing degrees by themselves: "No person, firm, asso- private institutions. Thus one of the Legislature's ciation or corporation, other than a corporation :n-- first major acts in the State's first year of statehood corporated under the provisions of this title. shall -- 1850 -- was toprovide for the establishing of col- have the power to confer academic or professional legiate institutions. The "Act of 1850," re2roduced degrees" (California Civil Code, Section 651a, 1927). on the opposite page, required that. This requirement remained in effect for another 30 years, until the Legislature abandoned it in 1958. 1. An application be made to the State Supreme Court for incorporation as a college; The modest financial requirement of $20,000 endowment in the Act of 1850 was deleted from the 2. The corporation have an endowment of twenty law by the Amendments of 1885 but then reinstated thousand dollars"; and in 1927 in the form of a requirement of $50,000 in 3. The proposed trustees be capable men. "real and personal property .used exclusively for the purposes of education "Until the 1980s, the Under this act, which also specified the powers ap- State continued to use this requirement as the sole propriate to a college board, the first of California's financial criterion for State authorization, making excellent higher education institutions were creat- California's licensing laws the subject of ridicule ed -- beginning with the University of the Pacific throughout the country. By 1980, inflation had re- and Santa Clara University the very next year. duced the value of the amount to less than $12,000 The act's two reqi :rements of incorporation as a in 1927 dollars, but this minimal financial require- college and an endowment of $20,000 may seem to ment survives as one of two conditions expected of be somewhat minimal requirements -- but they institutions awarding degrees in theology and re- have long since gone by the board. Today's law reg- ligion. ulating the integrity of California's degrees is in The 1927 amendments added three other provisions some ways stronger than that of 1850 -- but in other to the law: ways is weaker. 1. A restriction against distributing the profits of It is stronger in that it requires periodic review degree-granting profit-making educational cor- and relicensure of degree-granting institutions. porations except upon dissolution of the corpora- But it is weaker in that it no longer requires in- tion; corporation; it allows some institutions to oper- 2. A requirement that all degree-granting inst ate with less than $1,000 in 1850 dollars; and it tutions submit an annual report to the Superin- permits allegedly religious institutions to grant tendent of Public Instruction "containing the degrees simply on their claim of exemption from number of students of the corporation, together the law. with the names and addresses of the students, The following pages trace these changes, which the courses of study offered by the corporation, took place primarily in 1927, 1958, and 1977, in the names and addresses of the teachers employ- order to show the origins of today's law. ed by the corporation, the subjects taught by them, the degrees, diplomas, or certificates, if

1 ),J 7 any, granted by the corporation, and to whom behalf of both state and federal governments es granted, the curricula upon which the degrees, the major deterrent to unscrupulous individuals diplomas, or t.ertificates were granted, and any and institutions who desire to exploit the student other information concerning the educational for financial gain rather than assisting them to ac- work or activities of the corporation that may be quire the promised education assistance" (Dickin- required by the Superintendent ..." (Section son, 1987, p. 4). 24213, 1943 Education Code). Between 1944 and 1949, the number of proprietary 3. A misdemeanor penalty for violating this sec- or profit-making trade schools jumped from some tion of the Code, with the Attorney General en- 1,900 to 5,600 nationally. Poor quality educational joined to take steps to dissolve the non-comply- programs were reported among some of them, and ing corporation, restrain fraudulent practices, because of obvious exploitation by at least a few of and punish any person guilty of fraudulent prac- them, Congress passed increasingly detailed legis- tices. lation in 1946, 1947, 1950, and two years later through the second "GI Bill"the Veterans Read- For the next several decades, no major changes oc- justment Assistance Act of 1952d I. the time of the curred in the law, and California continued to op- Korean War. That act directed the United States erate on the expectation that educational institu- Commissioner of Education to publish ''a list of na- tions would adequately regulate themselves. But tionally recognized accrediting agencies and associ- World War II brought significant alterations, and ations which he determines to be reliable authori- the regulatory needs of the federal government be ties of the quality of training offered by an edu- gan to affect State policy. cational institution" (Section 1775, PL 82-550), and At the end of the war, the federal government need- it added accreditation by such agencies as a way ed some way to see that educational institutions besides state approval for institutions to obtain were offering courses to veterans worthy of Veter- federal support.It set the pattern for the federal ans Administration reimbursement. Under the Vet- government's continuing reliance on accreditation erans' Readjustment Act of 1944, governors of the as an indicator of educational quality, and it had states had a choice of either assigning this over- major impact on subsequent state laws, including sight task to a state agency or allowing the Veter- California's Amendments of 1958. ans' Administration to inspect the institutions itself.California's Governor Earl Warren assigned this inspection task to two agencies -- the Depart- ment of Industrial Relations, which created the Ap- Amendments of 1958 prenticeship Standards Division to approve on-the- job training and apprenticeships: and the Depart- For California, 1958 was the turning point in State ment of Education, which created the Division of laws affecting private postsecondary education. Readjustment Education to approve school courses. The Amendments of that year were strongly sup- That Division became California's regulator of the ported, if not actually sponsored, by the State's pri- degrees of pi.vate colleges and universities(Its vate institutions. They brought together statutory name was changed in 1958 to "Bureau of Readjust- language from federal legislation. the State's ment Education," in 1969 to "Bureau of School Health and Safety Code, its Business and Profes- Approvals," in the mid-1970s, to "Office of Private 4ions Code. and its Government Code into a compre Postsecondary Education," and in 1965 to the cur- hensive statement of policy regarding State over- rent "Private Postsecondary Education Division.") sight of private postsecondary education. State approval agencies like the Apprenticeship Under the 1958 Amendments, which were codified Standards Division and the Private Postsecondary as Division 21 of the Education Code as then organ- Education Division have become responsible for ized, Section 24206 identified or created six cate- monitoring and approving training programs not gories of State licensure of institutions: only for veterans, but also, under more recent federal legislation, their dependents, active duty ser- a. A corporation which has filed an affidavit vice personnel, and reservists. They seek to act on . .stating that it owns an interest in real or

8 1 0 6 personal property used exclusively for educa- Their inclusion blurred the former distinction tional purposes, of a value of not less than between vocational schools and degree-granting $50,000 institutions.Because it was politically infeasible to require all proprietary schools to adopt a b. A hospital licensed under the Health and corporate structure, the Legislature dipped the Safety Code 1850 requirement that degree-granting institu- c. A person, firm, partnership or corporation tions be incorporated. This made it feasible for a which is approved b) a licensing board under single individual, without incorporating, to op- the Department of Professional and Vocation- erate a profit-making"university" under Section al Standards 24206 (f).the Code. d. Any educational institution accredited by 3. The Superintendent of Public Instruction was the State Board of Education for offering train- not only allowed to rely on accreditation but was ing for teacher credentialing purposes empowered to "make such investigations as are e. Any institution approved by the Bureau of necessary to determine whether or not there has Readjustment Education of the Department of been compliance.. " Prior to this, California Education law made no references to qualitative standards -- unless its 1850 requirements that an institu- f.A person, firm, association, partnership or tion's board members be "capable men" and that corporation authorized by the Superintendent it have $20,000 in endowment could be consid- of Public Instruction to issue specified diplo- ered indicators of institutional quality mas. 4. The State's adjudicatory hearing process was All of these institutions could issue diplomas and made "applicable to any determination of the degrees if they could demonstrate: superintendent pursuant to this subdivision." that the courses of instruction, and the faculty 5. The misdemeanor penalty of 1927 was upgraded or requirements of such applicants will afford to a felony. students or require of students a course cf education comparable to that being furnished by 6. All institutions were required to maintain their persons, firms, associations, partnerships and records for three years -- until then a require- corporations offering similar instruction and ment only of thoie seeking approval for veter- complying with other subdivisions hereof. ans' educational support. The law specified that for the purpose of that par- 7. Finally, the Legislature added intent language ticular subdivision,the Superintendent of Public to the end of Section 24220 expressing support Instruction may rely on the findings of an accredit- for fostering private education and protecting ing agency generally accepted by the class of insti- the integrity of degrees. tution concerned" and could consider the results of At the time of the 1958 Amendments, the State was State examinations taken by students of these in- beginning to plan for rapid expansion of college en- stitutions. rollments. Two years later, the Master Plan Com- Among the significant changes in the statute were mittee would project a nearly 300 percent increase these new or expanded policies: in these enrollments between 1960 and 1975 --a projection that seriously underestimated enroll- I. The term diploma was defined to include all ments in 1975, even without taking ir: o account types of credentials, including academic degrees the proprietary sector. It was this environment that as well as vocational certificates. produced the statement of legislative intent, which continues in the Education Code to this day except 2. Proprietary institutions were included i.the Education Code for the first time -- hav ing pre- for the two italicized words referring to youth: viously been included in the Business and Pro- In the present period the need for educational fessions Code because of their profit-making na- services for youth is so great that it cannot be ture -- and they were allowed to grant degrees. met by tax-supported institutions alone. The

9 1 6, contribution of privately supported educa- ties than to improve them. Each of the six licens- tional institutions to the preservation of our ing categories was very different and had been liberties is essential. These can best be served developed by different agencies for very different by protecting the integrity of diplomas issued purposes. By placing them in juxtaposition with- by such institutions. out any apparent sense of relationship or qualitative ranking, it gave them equal status under As an expression of State concern for the oversight the law -- and the impnssion that no distinc- of private postsecondary education, the 1958 act tions were useful between ''state-accredited" was a curious piece of legislation: teacher education institutions, institutions "state It was clearly inclusionary, in that every effort approved" for veterans' benefits, and institutions was made to include every category of licensure "state-authorized" by the Superintendent either (including "State accreditation") in the six cate- on the basis of their accreditation or on the basis gories of institutional qualification. One result of having $50,000 in net assets. was that the terms authorization, approval, and California was not out of line nationally with its accreditation were all used without either an 1958 Amendments. At the time, state regulation explicit or implied hierarchical structure. had relatively little influence on controlling the It reflected an effort to strengthen the compli- quality of private education except in a few region- ance authority of the Superintendent by provid- "It cannot be said that most states exercise even the ing a basis for prosecuting the fraudulent issu- minimum degree of control for the maintenance of ance of diplomas, but at the same time it did lit educational quality among degree granting insti- tle to ensure their integrit,It sought to elimi- tutions," Robert Reid concluded in his 1959 analy- nate the sale and misuse )f college degrees, but it sis for the American Council on Education. "State did not provide the means for carrying out that laws chartering institutions of higher education are intent. not uniform and are actually quite lax in control- It omitted not only the 1850 requirement that ling educational malpractice" (1959, pp. 62, 8).A degree-granting institutions be incorporated and majority of the 50 states extended the privilege of thus have corporate governing boards but also degree-granting to institutions simply on incorpor- the 1927 restriction against distributing profits ation, with filing fees as low as one dollar; and only of profit-making degree-granting corporations a minority, including California, required incorpor- except upon their dissolution and the 1927 re- ated institutions to be approved by a state agency such as their state department of education in order quirement that degree-granting institutions submit annual statistical reports to the Superin- to grant degrees. tendent. It required on-site reviews to examine the records or any other aspect of institutional opera- Changes in the 1960s and '70s tions only of accredited institutions and those approved for veterans' benefits. Not until 20 years Throughout the 1960s and early '70s, California later did the Private Postsecondary Education gradually amended its licensing statutes Act of 1977 make such visits mandatory for all In 1963, tin Legislature added a number of pro- authorized institutions. hibitions relating to false advertising in order to It permitted institutions to operate under Section protect student consumers ( Education Code Sec- 24206(a) even if their $50,000 in personal assets tion 29008); it allowed institutions accredited by were maintained out-of-state (34 Ops. Att. Gen. a recognized accrediting agency to maintain 98). their licensed status merely by submitting an annual affidavit stating that they were accredited. Finally, by bringing together fn Division 21 of and, in order to make California's law identical the Education Code a number of licensing pro- with federal law, it expanded Division 21 to in- cedures that had existed in a variety of codes, it clude courses for adults related to education, vo- did more to confuse State licensure responsibili- cational, and professional objectives -- thus mak-

10 ing all institutions meeting State requirements powering a state agency to grant approval to ineligible for federal approval for veterans' train- stitutions for no more than two years, issue cease ing. and desist orders against detrimental practices, and, if necessary, revoke the authority of an in- In 1969, the Legislature passed Senator Albert stitution to operate. This model legislation pro- Rodda's Senate Bill 1244, which (1) directed the posed that the state agency should be authorized Board of School Approvals to publish an annual to hear complaints against individuals for violat- directory of licensed private schools, and (2) re- ing its regulations, award restitution where war- quired authorized degree-granting institutions ranted, and seize and preserve students' academ- to file "full-disclosure" statements as well as ic records from any institution that closed or was have $50,000 of assets. forced to close. In 1971, Senator Rodda and then Assemblyman Another series of scandals involving overpay- Bill Greene sought through Senate Bill 1574 to ments to veterans was arising from the Vietnam estaidlish an independent "Council on Private War, with overpayments increasing from some 3 Postsecondary Educational Institutions" to ad- percent of total benefits in 1972 to 16 percent in minister Division 21, but the bill was vetoed by 1976, and with public institutions -- particularly Governor Reagan. The following year. through two-year colleges -- involved along with private Assembly Bill 2265, Rodda and Greene got the ones. A House Appropriations Committee re- Council established as an advisory body to the ported that "the VA left it up to the veterans and Superintendent, but with no administrative re- the institutions to report changes and termina- sponsibility or direct staff support. tions; but it was not in the interest3 of either to In 1974, three bills made minor changes in the do so" (Orlans and others, 1979, 29-30).The law requiring permits of agents regulating pri- federal government led the way in requiring re- vate school advertising in "help wanted" col- form, and California grudgingly followed. umns, and specifying the language of contracts Issues of consumer protection as well as fiscal ac- between private institutions and their students. countability and institutional quality came to In addition, Senate Bill 355 (Biddle) directed the the fore, propelled by federal concerns for the newly created California Postsecondary Educa- proper and productive use of public funds. The tion Commission to develop a complete listing of all institutions operating in the State; provide Federal Trade Commission held extensive hearings on private postsecondary institutions to de- information about the numbers of students being termine the extent of student protection in terms served, the programs offered, the fees charged, of tuition refunds: and the federal Office of Edu- and the rates of student attrition; and assess the cation raised questions about the ability of ac- operation and effectiveness of the Education crediting agencies to serve the interests of stu- Code sections relating to private postsecondary dents as well as institutions -- and whether other education in terms of protecting consumer; and means were needed for student protection providing a strong private sector for California citizens. The Commission drew on these developments in its As the Postsecondary Education Commission begs n 1976 report, The Role of the State in Private Post- its study of the Education Code in response to that secondary Education: Recommendations for Change. mandate, several related events impinged on it: In that report, it examined three major issues11) the lack of consumer-protection provisions in State In 1973, the Education Commission of the States statutes; (2) the ineffective enforcement of compli- had drafted model state legislation for approving ance with these statutes: and (3) the problems in- academic institutions.It recommended ;hat ev- herent in the State's reliance on accreditation as a ery state (1) protect against "substandard, tran- measure of institutional quality and probityIt sient, unethical, deceptive, or fraudulent institu- studied tuition refund problems, abrupt school clo- tions," (2) prohibit the granting of "false or mis- sures, and the lack of effective procedure for hand- leading educational credentials," and (3) restrict ling student complaints: and it concluded that: the use of the labels college and university by em-

11 California's laws relating to private postsecond- Bill 911 of 1977 -- the "Private Postsecondary Edu- ary education were among the oldest in the na- cation Act of 1977," which was authored by Assem- tion and lacked a number of consumer protection blyman Dixon Arnett and supported by some of the provisions. major leaders of private postsecondary education. California was unique among the states in funding the operation of its State oversight agency solely through school licensure fees and federal The 1977 Act and its amendments Veterans Administration money Compared to the model legislation developed by Assembly Bill 911 continued from the 1958 Amend- the Education Commission of the StateQ. Califor- ments the division between "accredited," "approv- nia lacked any comprehensive efforts to provide ed," and "authorized" institutions, but it increased consumer protection, particularly in regard to standards of practice for authorized institutions, schools that closed in mid-term, while students added a list of 14 categories of information to he had already paid their tuition for the year, and in included in institutions' affidavits of full disclosure, regard to inequitable refund policy among and required "verification visits" to ensure the ac- schools. curacy of this information. Loopholes existed in the "$50,000" provision of It also created a series of minimum advertising Education Code Section 94210 that permitted and consumer protection standards applicable to unscrupulous school owners to operate. Califor- all private institutions, although it deemed ac- nia's "open door" concept of State oversight per- credited institutions to be in compliance with mitted educational innovation, but it was wide them. open for owners interested in making money It gave the Superintendent of Public Instruction rather than in providing quality education. more authority to refer complaints about accre- The Bureau of School Approvals in the Depart- dited institutions to their accrediting agencies. ment of Education suffered mejor deficiencies in It increased the requirement for establishing an administering the law because of its limited bud- authorized institution, providing that the dedica- get and its secondary role within the Department tion of assets for an educational iratitution must of Education. It was not responsive to the needs be bound to the institution and its valuation of students or school administrators, and it must be independently verified (Brown, 1987, p. lacked aggressive enforcement of existing i.egu- 343). lations and centralized responsibility for the licensure and oversight of private institutions. As introduced, AB 911 proposed moving the oversight responsibility for private postsecondary edu- As a result, the Commission recommended that the cation from the Department of Education to an in- Legislature "undertake a complete revision of both dependent governing board that woultl have been Division 21 and the process by which it is im- equivalent in status to the Board of Governors of plemented and administered" in order to "promote the California Community Colleges and adequately the integration of private institutions (particularly staffed to license and oversee private postsecondary vocational/technical schools) into California's post- institutions.Superintendent of Public Instruction secondary education system; provide an appropri- Wilson Riles objected to this part of the bill. how- ate regulatory agency that is responsive to the ever, and to the Commission's report that proposed needs of both the producer and consumer of private it: "The report's pervasive rationale for change is a education; and foster and improve the educational series of assertions that the Department of Educa- programs and services of private institutions while tion is not adequately administering private post- protecting the citizens of California from fraudu- secondary education. In this respect the report fails lent or substandard operations" ( p 118). to meet the standards of objectivity and profes- The five specific revisions in Division 21 that the sionalism which the Legislature has come to expect Commission proposed are reproduced in Display 3 from its advisory committees and commissions." on the opposite page. They were cast into Assembly He recommended "that the administration of this

12 DISPLAY 3 Recommendations of the California Postsecondary Education Commission Regarding Oversight of Private !restitutions, 1976.

1. The current responsibilities of the Bureau financial statement certified by a Certified of School Approvals should be transferred to Public Accountant with the initial applica- the Council for Private Postsecondary Edu- tion, and ever, three years thereafter This cational InstitutionsThe t " uncil should $50,000 in assets should be maintained in become an administrative agency directly California for as long as the school is licens- responsible to the Legislature and the Liu-- ed to opf I ate in the State. ernor. Members on the Council shield be 4. Several important conmer protection pro- appointed by the Legislature and the Gov- ernor, with a predominance of public mem- visions .hou'd be added to the Education Code, including (a) the development of a bers over representations from the private institutions. The Council should be com- statewide student tuition indemnification pletely independent of the Department of plan; (b) a tuition refund schedule directly Education. The Council should meet as of- proportionate to the amount of the course ten as it deems necessary to carry out its du- completed, until the student has completed 50 percent of the course, (c) a six-day cool- ties and responsibilities. The Council should ing-off period following the initial visit to a appoint and may remove a director, and the campus by a student who has signed a con- director should appoint persons to such staff tract and began tuition payments prior to positions as the Council maNauthorize. visiting the campus; (d) a central age:icy for 2. The activities of the agency responsible for handling student complaint. (e) permanent administering Division 21 should be funded maintenance of student records: and in com- through the State's General Fund as well as plete disclosure of information to students through reimbursements from I icensure by all private postsecon'ary institutions 5. While the State may use accreditation as 3. The "A-3" provision for degree granting in- evidence of compliance with its minimum stitutions should be revised so that: (a) The educational standards, the State should not "full disclosure" requirement is considered abrogate its responsibility by using accredi- the major element in each institution's ap- tation as a substitute for independent re- plication for authorization to operate. This view and action.Accordingly, the Educa- provision should be revised so that the State tion Code should be revised to clearly in- can verify the accuracy of the "full disclo- dicate that, while the State may accept ac- sure" statement prior to the opening of the creditation by a recognized national or reg- institution, and every three years there- ional agency as evidence of the institution's after.(b) The loopholes in the $50,000 re- conformance to the minimum standards as quirement should be eliminated. An insti- set forth by the State agency, the use of this tution should be required to maintain accredited status is permissive, not manda- $50,000 in total net worth, to be used exclu- tory, and the State agency may require sively for legitimate educational purposes. additional evidence or may undertake its Each institution should be required to file a own investigation if it so desires.

Source: California Postsecondary Education Commission. 1976. pp. 119-120.

lli 13 Division remain in the Department, as the most postsecondary institutions."In November 1982, feasible and expeditious way of achieving necessary the special committee issued its report; in January legislative, policy and administrative changes de- 1983, the Commission endorsed its standards: and sired (1976, p. 1). in 1984, Senator Watson's SB 2151 placed these standards in Education Code Section 94304.5 and The Assembly Ways and Means Committee agreed moved the sunset date of the 1977 law to 1992, with It sub. with Riles and deleted the proposed move. the Commission to study its adequacy and its im- stituted a sunset date for the law of June 30, 1982, plementation. and charged the Commission and the Legislative Budget Committee to undertake a review of its op- That same year, Senator Carpenter's SB 1923 shift- eration. Superintendent Riles promised to work ed State approval from "programmatic" to "insti- with the Legislature and all other interested par- tutional" by requiring that the total institution ties to develop legislation and prepare budget ac- meet standards of approval rather than merely se- tions "tc obtain general funding in support of-Bur- lected programs. It also added language from exist- eau activities" as well as "broaden the responsibil- ing regulations regarding the comparability of ac- ities, provide for broader public involvement, and credited and State approved institutions. improve the functioning of Council for Private Post- In 1985, Senator Montoya's SB 1036 added new secondary Education Institutions" and "strengthen provisions for licensing out-of-state accredited in- the activities and administeation of the Bureau to stitutions by December 31, 1987. the benefit of both consumers and the industry." But neither Superintendent Riles nor his successor In 1986, Assemblyman Farr's Assembly Bill 4251 has succeeded in obtaining the promised general implemented recommendations stemming from Sen- funding for the Bureau's activities. ator Montoya's SB 1036. As required by the Legislature, in 1981 the Com- In 1988, Teresa Hughes' Assembly Concurrent Re- mission reviewed the effectiveness of the 1977 act. solution 78 directed the Commission to study the It concluded that the law was not yet strong enough operations and procedures of accrediting associa- to ensure that the Legislature's objectives of quality tions that accredit California's postsecondary insti- and integrity would be sought by all of the State's tutions as well as the State's reliance on these asso- authorized institutions: "The integrity of academic ciations. Her Assembly Bill 4378 extended authori- degrees is being threatened by the educational pro- zation requirements to recruitment agencies and gram offered by some of `he authorized institutions required authorized or approved institutions to

...which award degrees based either primarily or cease recruitment activitiect if the Superintendent solely upon life experiences, with little or no in- takes action to revoke or deny their authorization. struction offered" (p. 11). The Commission stated Senator Morgan's SB 1884 gave the Superintendent that "those institutions which award degrees with- the authority to revoke the license of an accredited out offering instruction are not functioning as edu- institution if it did nct comply with minimum State cational institutions," and it proposed that instruc standards and if its accrediting agency did nothing tion be required as a part of each degree program-- about its non-compliance (Section 9431211)And thereby preventing institutions from granting de- Assemblyman Frizzelle's AB 3844 turned the licen- grees solely on life experience or credit for prior sure of driving schools that train truckdrivers from learning.It also suggested that all authorized in- the Department of Motor Vehicles to the State De- stitutions, within five years of gaining authoriza- partment of Education. tion, be required to apply for and gain status as State-approved institutions. Opposition to this second recommendation led to Origins of the present study compromise legislation (Senate Bill 612, 1981, Sier- oty) that directed the Council for Private Postsec- According to the Private Postsecondary Education ondary Educational Institutions to impanel a spe- Act, by September 1, 1989, the Postsecondary Edu- cial committee to "develop explicit standards to be cation Commission must "review and evaluate" the used in the review and authorization of private implementation of the entire act by the Department

14 of Education as well as the effectiveness of the Act's an entity separate from the State Department approval and authorization provisions "in protect- of Education; and restructure the membership ing the integrity of degrees and diplomas issued by of the Council for Private Postsecondary Edu- private postsecondary educational institutions" cational Institutions to provide a majority of (Education Code Section 943451. Unless the Legis- lay citizens without current or prior employ- lature extends or repeals the sunset provisions of ment or business connections to private post- the act, the act will become inoperative on June 30, secondary institutions that fall under the Coun- 1991 and will automatically be repealed on Janu- cil's jurisdiction. ary 1, 1992. In December 1987, staff of the Commission drafted During 1987, the Postsecondary Education Com- a prospectus for the review of the 1977 act under mission began work on its required study of the the title, The State's Role in Promoting Quality in law. The year before, the Commission for the Re- Private Postsecondary Education.In that prospec- view of the Master Plan for Higher Education had tus, the staff identified the following nine questions - asked Jonathan Brown, vice president of the Asso- as among those to be answered during the study: ciation of Independent California Colleges and Uni- 1.Are California's licensure standards under the versities, to prepare a paper on State licensure and Act for degree and non-degree grantir in- accreditation. In that paper, he suggested that the stitutions sufficiently rigorous to protecthe Master Plan Review Commission consider recom- integrity of degrees and diplomas issued by mending various amendments of the 1977 act to the private institutions? Legislature or, as an alternative, recommend that the California Postsecondary Commission consider 2. Are the oversight procedures currently used them in its review of the act. In its final report, The by the Department of Education sufficiently Master Plan Renewed, the Master Plan Review Com- detailed, rigorous, and frequent to achieve mission adapted his second recommendation into this legislative intent? these words (1987, pp. B-1, B-21: 3.Does California need five different processes The California Postsecondary Education Com- for the licensure of degree-granting institu- mission should begin its statutorily mandated tions and four different irocesses for vocation- review of existing standards and the appro- al schools? priate administrative structure for state super- 4. Should several State agencies continue to vision of private postsecondary institutions by share the responsibility for licensing private no later than 1988. vocational schools? In convening its review, CPEC should specifi- 5. Should the State licensure process for degree- cally consider consolidation of the "approved" granting institutions continue to be restricted and "authorized" categories of licensure for to the in-state operations of these institu- non-accredited degree-granting institutions; tions? prohibition of non-accredited institutions from operating in the state. establishment of a 6.Does the State interest in promoting quality single process of licensure for all private in- in private postsecondary education warrant stitutions; modification of existing statutory the allocation of some State funding to sup- language to delete references to comparability port the oversight activities of the agency re- between approved and accredited institutions. sponsible for licensing these institutions? prohibition of non-accredited institutions from 7.Is I l-,e State Superirtendent of Public Instruc- granting degrees beyond the baccalaureate: tion the proper entity for primary responsi- establishment of a hierarchy of licensure in bility in licensing private colleges and univer- which institutions would be required to move sities and promoting quality in private post- to accredited status within a stipulated period secondary education? of time; establish the Council for Private Post- secondary Educational Institutions and the 8. What is the distinction oetween accreditation Private Postsecondary Education Division as and State approval, and how can the differ-

15 ences be clarified for members of the public Accrediting Commission for Senior Colleges who are selecting institutions in which to en- and Universities, Western Association roll? of Schools and Colleges Ralph A. Wolff, As niate Executive Director 9. What is the appropriate relationship between the State's oversight agency and non-govern- California Association of Private mental accrediting associations in the delega- Postsecondary Schools tion of responsibility for the review and moni- Catherine Sizemore, Legislative Representative toring of accredited colleges, universities, and California Association of State vocational schools? Approved Colleges and Universities The Commission decided to answer Questions 8 and Alvin P. Ross, President 9 regarding accreditation as part of its study of the State's reliance on institutional accreditation that The Commission's it was conducting pursuant to ACR 78 (Hughes, Statutory Advisory Committee 1987) and to incorporate the findings of that study Association of Independent California into its final report on State oversight of private post- Colleges and Universities secondary education, Recommendations for Revis- Jonathan Brown, Vice President ing the Private Postsecondary Education Act of 1977, which it plans to issue this next June. California Community Colleges Gus Guichard, Senior Vice Chancellor To assist in its review of the act, the Commission for Planning and Special Projects appointed a technical advisory committee consisting of the following representatives of these groups: California State Department of Education Joseph P. Barar.kin, Assistant Superintendent Institutions of Public Instruction and Director, Private Postsecondary Education Division State-approved institutions Rosemary Lukton, California Institute The California State University for Clinical Social Work, Berkeley David E. Leveil le, Director of Institutional Thomas A. Neal, President Emeritus, Relations, Office of the Chancellor California Coast University, Santa Ana University of California State-authorized institutions Karen Merritt, D:rector, Planning and Program Philip Forte, President, Pacific Western Review, Office of the President University, Los Angeles Council for Private Postsecondary Ronald Isles, President, Southern California Educational Institutions College of Law, Brea Roseanne M. Martinez, Sacramento Accredited nondegree-granting institutions Kristin Kleppe, President, Banking Institute, Other knowledgeable individuals Los Angeles Richard Baiz, Deputy Director, Executive Office, Aaron Cohen, President, United Education & California Department of Consumer Affairs, Software, Encino Sacramento Accredited degree-granting institutions John D. Murphy, Senior Vice President, J. Robert Evans, President and Director, Institutional Affairs, University of Phoenix, Kelsey-Jenney Business College, San Diego San Francisco, California Robert White, Vice President, National Associations University, San Diego

Accrediting Commission for Junior and These individuals and the staff of the Private Post- Community Colleges, Western Association secondary Education Division of the State Depart- of Schools and Colleges ment of Education have provided much assistance John C. Petersen, Executive Director to the Commission staff in the preparation of this

16 report. Even though some of them disagree with help shape the Commission's ultimate recommen- some of its conclusions in the following pages, they dations regarding the future of the law. have improved its quality; and their advice will

1-:-i .,) 17 Qliavercta, ler A;p4i. .4.441 9001)

November 23, 1985

Mr. C.D. Pepper 9509 Burke Lake Road. Burke, VA 22015

Dear Mr. Pepper,

The Graduation Committee is pleased to approve your degree and graduation status. Your oral defense of your subject, as you may know, was successful. Congratulations! Upon receiving your "Candidate Checklist," I find that all requirements have been completed and your tuition isPaid n full Therefore, it gives Union University and myself personally great pleasure to inform you that you are approved tobe awarded the degree of Doctor of Philosophy in

p.vehnili . We shall, of course, follow your wishes regarding participation in the Commencement Ceremony. You may accept your diploma at that time, ask that it be sent to you now, or arrange to come to the university to personally accept it.

Once again, it is my distinct honor to advise you of your successinachieving your earned degree. Union University is proud of graduates such as yourself and wishes you every success with your future. We look forward to your sugges- tions and support of our Alumni Association during the up- coming year.

Hardiest Congratulations,

Dr. Terry Suzuki Director of External Program Union University

DISPLAY 4 Source: Stewart and Spine. 1988. p. 77.

18 11 th Importance of the Law

IN 1985, Representative Claude Pepper (D- Florida) and all the other technological advances on -- the 85-year-old chairman of the Subcommittee on which they rely. Health and Long-Term Care of the House Select They hope that in the courts of law, "expert" wit- Committee on Aging -- received a Ph D. from Union nesses about professions, planes, cars, bridges. University in Los Angeles, one of California's State- technology and every other subject really are authorized institutions that has since gone out of expert. business. For the degree, his staff had sent Union $1,810, a list of 44 books read, and four book reports That is why California seeks to "protect the integ- -- on Mental Health and the Elderly; Too Old, Too rity" of California degrees and diplomas -- to protect Sick, Too Bad; Plain Speaking; and The Power of their honesty and soundness against deceit or fraud. Positive Thinking. In accepting his degree, Chair- It is why the State has md it illegal for anyone to man Pepper confessed, "I have always wanted to be print, sell, or use fraudulent, c9unterfeit, or materi- Dr. Pepper" (Stewart and Spille, p. 76). ally altered degreesappendix B, pages 89-90). And it is why nearly every other state in the nation Union University no longer exists -- at least in Cali- seeks to do the same. fornia -- thanks to changes in California's law since 1984. The following pages explain why it closed, in As America at large and California in particular explaining the importance of meaningful degrees become more populous, more urban, and more tech- and then assessing the strengths and weaknesses of nological, individuals must increasingly rely on the present law. academic degrees as documents that certify at least minimal academic or professional attainment. When they need skilled assistancewhether from therapists, nutritionists, or even "holistic health Importance of meaningful degrees scientists" -- they often do not have the opportunity to check personal references or call mutual ac- quaintances. They must depend instead on the va- Most Americans expect a college degree to mean lidity of educational and professional certificates something.Despite their increasing cynicism of All too often, they cannot depend on these docu- many social institutions, they want a degree or dip- ments.For example, according to Congressional loma to indicate intellectual competence and skill -- and at a level beyond that of writing four 000k testimony, in the early 1980s as many as 10,000 American medical doctors, or one in every 50, were reports. practicing with questionable or fraudulent creden- They expect their own educational efforts and tials (Stewart and Spille, 1988, pp. 13-14). achievement to be honestly recognized. In California, a major social problem exists with They want the educational attainment of other unskilled practitioners of personal counseling and people to be equally rewarded. therapy. Rosemary Lukton, the former dean of Ber- They hope that doctors, nurses, and other people keley's California Institute for Clinical Social Work who treat them will be knowledgeable and that -- a State-approved institution -- says thatIn my the diplomas hanging in professional offices will field, people can claim they are therapists with a truthfully signify this knowledge. Ph.D. from anywhere in anything. You can't say that you are a "psychologist," a "psychotherapist," They hope that engineers know what they're or a "marriage, family, and child counselor" -- but doing in designing and building the planes they you can call yourself a "therapist." So patients get fly, the cars they drive, the bridges they cross, taken by Ph.D.s, along with employers " Yet when

11, '19 California's Beard of Behavioral Science Exami- informed her that she had "deactiviated" Ms. ners asked another of the State's approvedinsti- Howell's file "from our student roster." LaSalle tutions about some of its graduates' coursework kept her money and has since closed its Chats- that State law requires them to take in order to ap- worth office. ply for the Board's licensing examination, the In 1983, Art Boehm of Sacramento responded to university Pot only refused to provide the docu- an advertisement for a State-approveduniversi- ments but hired a lobbyist to get the Legislature to ty and enrolled in its bachelor's program. Over cut the Board's budget and delay appointment of its the next five years, he spent $4,000 in working members. Nonetheless, the Board is continuing to with a local faculty member on his bachelor's de- require the prescribed coursework. gree, another $4,000 on his master's degreein Despite the concern of some social critics about psychology, and $8,500 on his Ph.D. Since then, "credentialism" and an "overcredentialed" society, he has been unable to get the university to send California cannot reverse history and try to avoid him a transcript of his Ph.D. work. and his ad- reliance on academic credentials.Its citizens will visor delayed so long in starting him on the 3,000 make use of academic degrees and diplomas regard- hours of supervised counseling needed for ali- less of State policy. Employers will continue to use cense in marriage, family, and child counseLing them in determining initial employment, promo- that Boehm doubts he will ever get his license -- tion, and salary increments -- even if all too often since he has had to return to construction work to they use them unnecessarily. And employees will repay his student loans and retain his credit need them to be considered for jobs and gain ad- rating. vances in their careers. Increasingly, a bachelor's Felix Robb, the former executive director of the degree will open doors that used to be opened with a Southern Association of Schools and Colleges, has high school diploma. said that many people like Howell and Boehm "are College degrees clearly have value. During this de- trapped financially familywise and otherwise -- cade, for instance, an MBA has been worth $8,700 by the inability to take time off for residence re- mare in starting salaries than a baccalaureate in quirements in traditional programs of established business. As a result, demand for degrees will con- universities. They are looking for a shortcut, but tinue. Educators will not be immune from encour- they don't know how short the cut can be between aging this demand, and a few entrepreneurs will something honorable and legitimate and something seek to meet the demand with discount degrees. that lacks integrity." And American students may not be the most numerous victims. Ellsworth Mil- Reflecting on his creation of "Greenbriar College" ler says that degrees advertised in English lan- in California over 20 years ago, steamfitter An- guage newspapers prove "a real pitfall forambi- thony James Gange explained "there seems to be a tious third-world youth looking for a chance to bet- crying need. People just wanted to get fleeced, and I ter themselves," based on his experience on the wanted to take advantage of the market while it staff of the American Embassy in Saudi Arabia was hot." Some people may want a degree just for (Stewart and Spille, 1988, p. 177). the fun of it, but others have no wish to be fleeced. Consumer protection regarding academic degrees For example, in 1987, Candace L. Howell, who is has long been a problem both in the United States stationed with the Armed Forces in Munich, and abroad. But California's problem of consumer West Germany, enrolled in a combined bache- protection has been especially exacerbated because lor's-master's degree program of "LaSalle Uni- of its wave of immigration from Mexico and Asia versity" -- a nationally known degree mill that during the 1980s. As of 1980, 15 percent of Califor- was operating an office at Suite 102, 9410 Topan- nians were foreign born. This percentage has grown ga Canyon Boulevard in Chatsworth. She paid since then.Between 1980 and 1986, some four LaSalle over $2,500 for tuition, fees, and books, million foreign-born persons were admitted as legal only to receive the wrong books. After she com- residents to the United States, and many more plained from Europe, received no new books, and came as undocumented ali,:ns -- a large numberof finally asked for a refund, Jean Christensen of them settling in California. As a concomitant, the LaSalle's Student Services office in Chatsworth

20 State's percentage of residents who do not use Eng- But because of this demographic fact of immigra- lish in the home or speak it well has also increased tion alone, if not for the protection of California's beyond the 5 percent level recorded in the 1980 educational reputation throughout the rest of the Census. country and the world, as well as the protection of its best non-accredited institutions, the State has a California's immigrants want to succeed in Ameri- responsibility to see that its mechanisms of educa- can society, but like immigrants at any time in any tional quality control actually ensure a minimum society, they are more susceptible to being taken level of quality -- and that its means of student con- than long-term residents. Those who seek academ- sumer protection actually protect students. ic degrees as a means of success may not realize that some degrees are worth more than others in gaining advancement and that others may be worthless. For example, they are less likely than Maintenance of integrity most Californians to know the difference between "accredited," "State-approved," and "State-autho- Like quality assurance in any enterprise, the main- rized" colleges and universities, or between these tenance of integrity or honesty of California's de- recognized institutions and illegitimate ones. They grees involves three essential elements: also may not be aware that some employers differ- entiate among these institutions. 1. Standards to be maintained -- whether termed goals, aims, objectives, intentions, criteria, or reg- They probably are unaware that if they want to ulations; become teachers, they will not be eligible to receive a teaching credential if they graduate 2. Monitoring of performance -- whether calleu as - from an unaccredited institution. sessment, evaluation, review, examination, study, or critique; and If they want to join the federal civil service, they will need a degree from an accredited institution. 3. Controls to assure achievement -- whether labeled oversight, decisions, actions, closure, enforce- If they want to be lawyers, they may not be able ment, or withdrawal of recognition. to practice law in another state if they attend a California law school accredited only by Califor- Until this past decade, California suffered weak- nia's Committee of Bar Examiners rather than nesses in all three of these elements in regulating by the American Bar Association. its degree-granting institutions. If they want to become psychologists or counse- It employed inadequate standards for authori- lors, they will not be eligible to take the profes- zation. sional licensing examinations of California's Except for veterans' education course approvals, Psychological Examining Committee or its Board it conducted insufficient monitoring, with on-site of Behavioral Science Examiners unless they visits restricted to verifying the accuracy of insti- graduate from an accredited institution or a State- tutional statements. approved institution that offers a recognized psychology program. And it enforced few controls in terms of denying or removing licenses of inadequate institutions. And if they need financial aid to attend college, they may not know that both the federal and For instance, it required that institutions have only California state governments restrict their stu- $50,000 in net educational assets -- compared to dent aid to students of accredited institutions. $500,000 of permanent endowment, as Pennsylva- nia demands: and it relied exclusively on accredit- If California's foreign-born population were nct ing agencies for checking the quality of off -campus growing and were less vulnerable to educational degree programs offered in the State by out-of-state abuse than it is, California might conceivably take accredited institutions. Obviously no state can rely the libertarian view that its citizens should not be on accreditation alone to protect the value of aca- prohibited from making fools of themselves by demic degrees.Accreditation is voluntary, and buying whatever diplomas and degrees they desire. thus non-accredited institutions will always exist.

11, 21 Even those states that expect all of their institu- The Veterans Administration conducts annual tions to become accredited -- including Colorado, field reviews of postsecondary proprietary voca- North Dakota, and Texas -- grant provisional tional schools in collaboration with state appro- licenses to new institutions while they prepare for val agencies but does not itself undertake insti- candidacy. Thus government regulation at both the tutional evaluation. federal and state level is a necessary means of The most directly involved is the Federal Avia- protecting the value of degrees. tion Agency, which "certificates" aviation main- Government regulation differs significantly from tenance technician schools as part of its function other quality control measures for higher education of maintaining minimum safety and operational such as accreditation, comparative ratings of insti- standards in the civilian aviation industry. tutions, admissions standards of graduate and professional schools, and entrance requirements for Much of this federal effort involves restrictions on the professions and employment in general, in that fraudulent trade practices and the regulation of it sets minimal standards for institutional conduct commercial transactions such as truth in advertis- by specifying an elemental level of quality beneath ing, due process, and adequate tuition refund poli- which educational endeavors are deemed detrimen- cies, rather than with the maintenance of high edu- tal to the citizenry and thus illegal. In contrast, ac- cational standards. Nonetheless, the federal role in creditation, admission prerequisites, employment the regulation of academic institutions is limited, requirements, and other quality control standards and the federal government relies on the states for set the going rate for institutions that seek stan- leadership in regulating these institutions. Thus dards above the minimum level. last summer Secretary of Education William Ben- nett wrote to the governors of all 50 states, saying "I In the federal government, several agencies are in- urge you to undertake a thorough review andeval- volved in educational regulation: uation of all your State's laws and regulations gov- The Postal Inspection Service of the Postal Ser- erning proprietary school licensing and operations. vice and the Criminal Investigative Division of See if they need amendment, strengthening, or the FBI investigate allegations of mail fraud and more rigorous enforcement." Similarly, theCenter bring suit in federal courts against proprietors of for Adult Learning and Educational Credentials of fraudulent institutions doing business through the American Council on Education has recom- the mails whenever aggrieved students lodge mended that all states "review their laws pertain- complaints. For instance, the FBI organized its ing to authorization or approval of educational in- "Dipscam" operation in the 1980s, which brought stitutions" and then strengthen and enforce them indictments and, finally, guilty verdicts, against (Stewart and Spille, 1988, p. 187). Norman Bradley Fowler and others, who oper- Some states have virtually no laws regulating priated degree mills and fictional accrediting agen- vate higher education -- among them, Hawaii, Ida- cies out of Los Angeles and Chicago. ho, Louisiana, Nebraska, and Wyoming. Some of The Federal Trade Commission investigates de- them merely require annual "registration" of insti- ceptive trade practices in correspondence educa- tutions without any assessment of institutional option and proprietary schools, and it issues cease erations, and consequently are likely havens for and desist orders against institutions that divert fraudulent institutions.(For instance, Louisiana substantial trade unfairly from competing schools officials report that following the strengthening of through misrepresentation of status, programs, California's law in 1984, some California institu- facilities, fees, or the employment opportunities tions moved there.)Unlike these unprotected and earnings of their graduates. states, California has long had laws regulating private colleges and universities -- the major one being The Department of Education plays an indirect its Private Postsecondary Education Act of 1977 but significant role in regulating educational in- The following pages assess the adequacy and imple- stitutions through its recognition of voluntary mentation of this law not only in light of Secretary accrediting agencies and state approval agencies. Bennett's request and the American Council on Ed-

22 1Zu ucation's recommendation but in light of the law's Educational Institutions and the Legislature to pending termination on January 1, 1992. discourage assessment and credentialing agencies from pretending to be educational institutions.In 1984, the Legislature adopted the council's recommended standards for authori- Success of the law zation that have done more to encourage education in the private sector than any other Although strengthened greatly during the past de- statutory change of the past 30 years. Suggested cade, the Private Postsecondary Education Act of by leaders of private postsecondary education 1977 contains serious weaknesses as California's themselves, the most important of these stan- primary means of quality control and consumer dards sought to encourage actual education rath- protection in higher education. er than mere credentialing, and it led to the The act has three major purposes: closing of a number of credentialing agencies,- like Union University, that offered little if any "to encourage privately supported education," instruction for their fees "protect the interity of degrees and diplomas As a result of the law, California has a multitude of conferred by privately supported as well as pub- highly regarded private colleges and universities-- licly supported educational institutions," and both accredited and unaccredited. Among those "encourage the recognition by tax supported in- that are not accredited are the following: stitutions of work completed and degrees and di- Dharma Realm Buddhist University in Talmage plomas issued by privately supported institu- -- several miles east of Ukiah -- offers academic tions to the end that students may have equal programs in Buddhist thought and culture at the opportunities for equal accomplishment and abil- bachelor's, master's, and doctoral levels. It occu- ity" (Section 94301). pies the site and buildings of a former State In the following paragraphs, the Commission hospital, from which it operates a resettlement assesses the act's effectiveness in fulfilling all three program for refugees from southeast Asian coun- of these goals. tries, runs an elementary school and a medical and dental clinic, and has its students and fac- Encouraging privately supported education ulty translate Buddhist texts from Chinese into English for publication by the Buddhist Text The law has succeeded most fully in fulfilling the Translation Society. It expects its student appli- first of its three goals-- that of encouraging private cants tc undertake a year's apprenticeship before education. As Display 5 on the next page shows, entering its program and to learn Chinese ade- several sectors of private education have expanded quately within two years after admission in or- over this decade, while the number of public in- der to assist in its translation work. Rather than stitutions haeremained constant. awarding the Ph.D. as its highest degree, it grants the more appropriate Doctor in Trans- The number of accredited institutions has grown lation of Buddhist Texts and the Doctor in Bud- from 157 to 197. dhist Study and Practice. State-approved colleges and universities have LaJolla Academy of Advertising Arts, founded increased in number from 49 to 70, despite the by Gary and Tracy Cantor in 1981, offers a com- fact that some formerly approved institutions prehensive communications program in advertis- have joined the accredited ranks. ing, graphic design, marketing, and public re- And the number of State authorized institutions lations. It awards a two-year Associate in Adver- grew from 158 in 1980 to 203 in 1983, although tising Arts and a three-year Bachelor in Adver- their number has dropped sharply to 78 since tising Arts based on courses meeting four hoursa then. This drop stemmed not from the law's dis- day five days a week, for 44 weeks a year It uses couragement of private education but from the practicing professionals as its faculty, employs decision of the Council for Private Postsecondary field studies as well as classroom training for its

23 DISPLAY 6 Number of Degree-Granting Institutions Operating in California, by type, 1980-1988

224 1 i 1 1 1 I I L State Authorized 200

180r

160 Private Accredited S.

140 is Public (all accredited) 120

100 4 `... 11111N1 80 State Approved r sue_ 60

40r

20 Il

I I I I I

1980 1981 1982 !983 1984 1985 1986 1987 198S

Note: State-authorized institutions are those privately supported that meet the State's basic standards for operation as degree- granting institutions. State-approved are those authorized institutions that have chosen to be evaluated at a second level. Private accredited institutions are those degree-granting colleges and universities that are accredtied by nationally recognized accrediting agencies. Public institutions are the California Community Colleges, the California State University. the University of California. the California Maritime Academy. and Hastings College of the Law -- all of which are accredited. Source: Private Postsecondary Education Division. California State Department of Education.

students, and offers them lifetime career place- years of operation, it hopes its first graduating ment assistance. class will pass the bar examination at a rate at Southern California Institute of Law, organized least 10 percent above the statewide rate. in 1986, offers day and evening legal training at National Hispanic University in Oakland, estab- an affordable price in Santa Barbara and Ventu- lished in 1981, provides high quality higher edu- ra.It emphasizes the examination of major is- cation programs in education and health care to sues of social policy from a legal perspective. students whose profession may require a mul- Thus it includes as part of its required curricu- ticultural or multilingual knowledge, expertise, lum courses in jurisprudence, the lawyering pro- arid perspective.It seeks to meet the particular cess, alternative dispute resolution, and interna- needs of Hispanic students, but it seeks students tional law; and it seeks to offer electives on immi- from all ethnic and racial groups.It has de- gration law, law and medicine, and the president veloped partnerships with corporate and public and executive power. At the end of its first four agencies for placement of its graduates, Having

24 12,, obtained State approval, it has been granted In contrast, E. Anne Kb.ley, Manager of Programs eligibility for candidacy for accreditation by the for the Minnesota Higher Education Coordinating Senior Commission of the Western Association of Board, says that in her experience of approving Schools and Colleges and is proceeding toward California institutions to grant degrees to Minne- candidacy. sotans, "California would be better off without any law at all than the present law." And David A. California Pacific University in San Diego was Young, her counterpart in Oregon's Office of the established in 1976 to train professional man- Governor, says that he hopes for agers who are capable of exercising leadership in a variety of settings -- public as well as private, a time when we no longer have to advise Ore- who are skilled in the theoretical, analytical, and gon organizations mostly to discount academic human resources areas of management, and who degrees from "approved" California schools respect the dignity and worth of the individuals and altogether to disregard those from "au- with whom they work. It offers bachelor's, mas- thorized" schools.I can hope, for example, ter's, and doctor's degrees only in its particular that Oregonians will no longer oe able to get area of expertise -- business and management -- by mail a baccalaureate in April an' a Ph.D. rather than trying to cover a wide variety of in October of the same year...Most Califor- fields, as do some other State-approved univer- nia unaccredited schools approved by your De- sities. partment of Education evidently could not operate legally in Oregon, and many would have Some of California's best non-accredited insti.u- similar troubles in Washington (1987, p. 1). tions may eventually achieve accreditation. Other equally good ones may not want to do so or may Questions also remain within California's Depart- never be accreditable because of the specialized na- ment of Education itself about the meaning of de- ture of their undergraduate program or their lack of grees offered by some State-authorized and ap- a core full-time faculty, and California's law en- proved institutionsFor example, the Superinten- ables them to succeed without accreditation. dent of Public Instruction himself has so far re- jected a request from the Council for Private Post- Protecting the integrity of degrees and diplomas secondary Educational Institutions that he seek federal recognition of California's institutional ap- The Private Postsecondary Education Act of 1977 proval process as comparable to accreditation be- has been far less successful in its second goal of pro- cause "existing regulations don't ensure the high tecting the integrity of degrees and diplomas. pri- standards of quality that approved schools should marily because its new authorization standards are exemplify -- and which most do" (1988, p 1). only five years old.Unfortunately, for years to come the integrity of degrees from all of California'z Encouraging the recognition of credits non-accredited institutions will remain suspect and degrees awarded by privately because of the thousands issued by a few institu- supported institutions tions authorized before 1984. So far, the law has not succeeded in its third goal -- Opinions vary, of course, on the success of the law that of encouraging the recognition by public col- in achieving this goal of protection. For instance, leges and universities of the credits and degrees Frank G. Dickey -- the former executive director of and diplomas of all private supported institutions the NationLi Commission on\ :crediting and a Its improvements have been so receii., that admis- consultant during 1987 to the Lepartment of Edu- sions officers on campuses of the California State cation -- has concluded that "the California Legis- University and the University of California contin- lature is to be commended on its actions which ue to follow the policy of rejecting for transfer any place California among the leaders in the nation in terms of attention given to maintaining the credits earned at non-accredited institutions, whether State-approved or State-authorized. At integrity of postsecondary education for degree- the graduate-school level, they ordinarily send granting programs" (p. 3). applications to individual departments for review,

4- .,) 25 and if a department wants to admit a graduate of an first professional degree programs in engineer- unaccredited institution, it must explain its reasons ing. In contrast to those three, Northrop makes to a special graduate school committee, which then its decision on a case-by-case basis, researching decides on admission of the graduate on a case-by- every degree and program and looking partic- case basis. ularly closely at credit awarded for life experience, whether by accredited or ticI-accredited The law has been somewhat more successful in en- institutions. couraging the recognition of non-accredited college degrees by employers, but not much. At the request ln-service. aucation: Four of the six corporations of the Private Postsecondary Education Division, reimburse employees for courses taken only at the State Personnel Board agreed on April 7, 1987, accredited institutions. The fifth -- Security Pa- to regard degrees from State-approved institutions cificreimburses employees for work toward a as equivalent to those from accredited institutions degree only at accredited institutionF btal. will when the minimum requirements for State employ- pay the costs of one or two non-degree-oriented ment include a degree. Maw private employers al- cow oes at a State-approved or authorized insti- so recognize degrees from California's non-accredit- tution.Northrop decides reimbursement on a ed institutions for employment and promotion pur- case-by-case basis and reimburses employees poses. But California's largest corporations do not. only 50 percent of their fees, even at accredited institutions, if it believes that those institutions In order to assess the acceptance of State-approved do not provide sufficient student-faculty contact. and authorized degrees by those firms, the Commis- sion surveyed the use of degrees by the State's six This lack of recognition of non-accredited degrees largest private employers -- Bank of America. Hew- among private employers probably accounts in lett-Packard, Lockheed Corporation, Northrop Cor- large part for the apparent small size of non-ac- poration, Pacific Telesis, and Security Pacific Bank. credited institutions. Data on privately supported Of the six, those with any formal policy tend to institutions are incomplete, since the State does prefer degrees from accredited rather than State- not require these institutions to supply annual sta- approved or authorized institutions. tistical information to any State agency as a condi- The six differ, naturally, in the emphasis they put tion of licensure -- and some profit-making institu- on a college degree: Some weigh candidates' exper- tions consider these data to be proprietary infor- ience as far more important than their educational mation. But based on the information summarized credentials, while -- at the opposite extrme -- oth- in Appendix C, non-accredited private colleges and ers require all applicants for specific positions to be universities for which the Commission has these graduates of accredited institutions. But for initial facts enrolled an average of less than 200 students employment, the three with general policies prefer each in Fall 1987, compared to an average of some degrees from accredited rather than State-approved 1,600 at accredited institutions.Similarly, the or authorized institutions -- and four of the five average non-accredited institution granted less with policies of reimbursing employees for in-ser- than 50 degrees in 1986-87, compared to over 350 vice education will pay only for enrollment at ac- at accredited ones. credited institutions: Limited recognition of the degrees of non-accred- lnttial employment: The three firms with poli- ited institutions and the ineligibility of their stu- cies regarding the educational background of dents for government-backed financial aid also af- candidates for initial employment -- Hewlett - fects the total size of the non-accredited enterprise. Packard, Lockheed, and (for managerial po- Although generalizations are difficult to make be- sitions) Pacific Telesis -- either prefer or require cause of limited data, California's accredited insti- that the degree be from an accredited institutions probably enroll and graduate between six tution. Lockheed, for example, hires new engi- or seven times the number of students as its non- neers only from institutions whose engineering accredited institutions. But because more accred- programs are accredited by the Accreditation ited institutions emphasize undergraduate study Board for Engineering and Technology, Inc. -- than do non-accredited institutions, their hegemo- the nationally recognized accrediting agency for ny of graduate degrees is not as great. They prob-

26 ably grant only up to two times as many doctorates Steven Kase, President, Pacific State University, as non-accredited institutions, and only between Los Angeles; four and six times as many first-professional de- James Kirk, President, Southland University, grees. Pasadena; Richard McKee, Director, Music and Arts In sum, while California's non-accredited institu- Institute, San Francisco; tions outnumber both its public and accredited pri- Melanie Moran, Director, Los Angeles vate institutions, the limited recognition of their Psychosocial Center, Los Angeles; and degrees significantly limits their size. Al Ross, President, Ryokan College, Los Angeles.

The Council for Private Postsecondary Education Strengths of the law also deserves recognition for supporting the committee's 12 standards, which relate to institutional ob- From the Commission's perspective, several parts administrative methods, curriculum, in-n- of the current law appear far more effective in struction, faculty, physical facilities, administrative protecting the integrity of California's degrees personnel, educational record keeping, admissions than others. Its two most effective parts -- and its standards, scholastic regulations, graduation re- two newest parts -- involve (1) the authorization of quirements, degrees offered, financial stability, and colleges and universities and (2) the licensure of tuition, fee, and refund schedules. out-of-state accredited institutions that operate in Under this 1984 revision of the law, the Superin- California. tendent of Public Instruction may not authorize a college or university to operate and grant degrees State authorization of colleges and universities unless he determines, by use of a three-member visiting committee, that it complies with 105 objec- No change in the law over the past 30 years has had tives that uphold these dozen standards.Prior to more beneficial impact on ensuring the meaning of 1984, the Superintendent had to authorize institu- California's degrees than Senate Bill 2151 (Watson, tions if he determined that the materials it submit- 1984), which -- as noted earlier -- implemented stan- ted were truthful and accurate -- including a state- dards for authorization that were developed in 1982 ment that it had assets of at least $50,000 a by a special committee impaneled by the Council minimal requirement that is still true for autho- for Private Postsecondary Educational Institutions. rized theological schools, as will be discussed below. The members of that committee deserve recognition Senate Bill 2151 not only instituted these new for their efforts: criteria, it required that already-authorized institutions be revisited ender the new criteria if they Glen Balch, President, Newport University, sought to be authorized as colleges and universities, Newport Beach: which precipitated the large drop in their numbers Suzanne Berard, President, LaJolla 1. niversity, shown aoove in Display 5. As of last fall, 61 insti- LaJolla; tutions had been authorized under these criteria, 15 John Coker, Dean, Lincoln University Law had been denied, 8 were automatically terminated. School, San Francisco; and 16 had applications in various stages of review Richard Crews, President, Columbia Pacific -- but at least 60 moreincluding Claude Pepper's University, Mill Valley, Chair; alma mater Union University -- either did not ap- N. C. Dalton, President, California Pacific ply for reauthorization or withdrew their applica- University, San Diego; tions during the reauthorization process. Severai of Phillip Forte, President, Pacific Western the 15 that were denied have appealed their denial, University, Encino; but as of yet none of them has had an administra- William K. Haldeman, Postsecondary Education tive hearing.Until decisions are reached from Administrator II, California Postsecondary those hearing, those institutions are free to contin- Education Commission; ue to operate and grant degrees. Yet already the John Humphreys, President, Humphreys College, Stockton;

140 27 law has succeeded in improving the integrity of Sally Loyd, Associate Dean, Educational California's degrees. Programs and Resources, Office of the Chancellor, The California State University; Licensure of accredited out-of-state institutions Donald Macintyre, President, John F. Kennedy University, Orinda; The second strength of the law is its new regulation J. William May, Consultant, Division of Private of the California operations of accredited out-of- Postsecondary Education, California State state institutions. The law has never allowed non- Department of Education; accredited institutions from other states to open Robert C. Miles, Director of Corporate-State branches in California, but until this decade it per- Relations, Nova University, Fort Lauderdale, mitted accredited institutions to do so.Until the Florida; 1970s, the nation's six regional accrediting associa- John D. Murphy, Senior Vice President, tions had not agreed on ways to evaluate off-Cnm- Institutional Relations, University of Phoenix, pus branches in each other's regions, but they have San Francisco, California, and Chairperson, been improving their oversight of these centers Accredited Out-of-State Colleges and since then. Over the past eight years, the Califor- Universities in California; nia Legislature has taken its own initiative regard- James H. Nelson, Chancellor's Office, California ing oversight -- most recently through Senate Bill Community Colleges; 1036 (1985, Montoya) -- to ensure that those centers John H. Peterson, then Chief, Division of Pri 'ate locatea in California operate on standards at least Postsecondary Education, California State as high as those expected of California's own insti- Department of Education; and tutions. John Wilkinson, Office of Military Programs, Southern Illinois University at Carbondale, Under Senate Bill 1036, another special committee Carbondale, Illinois. developed these standards. It consisted of: The seven standards developed by this committee Dan Andersen, Associate Dean, College of cover all aspects of institutional operation from Educati,n, Brigham Young University, Provo, governance through physical plant. Based on these Utah; standards, staff of the Private Postsecondary Edu- Daniel Austin, Dean, College of St. Francis, cation Division has developed its November 1988 Joliet, Illinois; Handbook and Application for Licensure for these Carol Barnes, California State University, branch centers and has begun site visits to the 12 Fullerton; currently operating in California. So far, the Su- Ralph Bohn, Senior Dean of Continuing perintendent has licensed five of the 12 based on Education, San Jose State University; these standards, while the other seven continue to Charles Brydon, Dean, Antioch University West, operate under the "authorized" classification of San Francisco; Section 94310.3. Edith Conn, Instructor, Ventura Community College, Ventura; Kathy Dinaburg, Associate Dean, Union of Reasons for the strengths Experimenting Colleges and Universities, Los In both of these casesauthorization of California Angeles; institutions, and licensure of out-of-State institu- William Duggan, Dean of M A. Programs, tions operating in Californiaimprovement in the Webster University, St. Louis, Missouri; law has involved (1) setting qualitative standards Mary Jane Fehr, Director of Accreditation, De Vry, Inc., Evanston, Illinois; that are (2) assessed by on-site visits by teams of educators and State agency personnel.In 1982, Janet M. Hansen, Embry-Riddle Aeronautical neither of these requirements existed. Only those University, Castle Air Force Base, Merced; institutions that sought State approval for one or Morris Krear, Consultant, Division of Private more of their programs were required to be visited Postsecondary Education, California State in order to ensure they met State standards. Now, Department of Education; visits are required for all degree-granting institu-

28 tions operating in California apart from those that ent laws regarding religious exemption and claim religious exemption. The number of visits by strengthen them where necessary. Division staff has risen from only a few in 1982 to California's relevant law is codified as Section several score per year now. 94303(b) of the Education Code, which exempts As an expression of the State's responsibility for the from the provisions of the Private Postsecondary oversight of private institutions, this increase in Education Act: the number of campus visits may seem of secondary A nonprofit institution owned, controlled, and importance. Yet combined with the application of operated and maintained by a bona fide new standards for education, it indicates an impor- church or religious denomination if the educa- tant change in California's attitude toward quality tion is limited to instructions in the principles assurance in higher educationa change from a la- of that church or denomination, or to (nursing] issez -faire orientation to active, involved oversight. courses offered pursuant to Section 2789 of the Business and Professions Code, and the diploma or degree is limited to evidence of com- Weaknesses of the law pletion of that education, and the meritorious recognition upon which any honorary degree Despite this clear progress, problems remain with is conferred is limited to the principles of that the law's oversight of three other categories of in- church or denomination. stitution -- (1) religiously exempt, (2) approved, and Lacking further statutory guidance, the State (3) authorized schools of theology. Department of Education interprets this exemption as automatic upon an institution's application for Exemption for presumably religious offerings exemption, unless it disapproves the application: "A completed application for exemption that is true Four of America's 50 states -- Illinois, Massachu- and accurate on its face will be accepted as prima setts, Michigan, and West Virginia -- regulate all of facie evidence of exemption" (Private Postsecon- their degree-granting institutions and grant no ex- dary Education Division, November 1980, p. 2) An emptions to religious ones. But how to safeguard institution can thereby claim exemption by the fact the free exercise of religion while at the same time of its el:ieltence, without any requirement for safeguarding the meaning of academic degrees pre- obtaining the concurrence of the Superintendent of sents problems for most other states, including Cal- Public Instruction (Unger, 1985, p. 2). ifornia. Probably no more well-known example has During the 1970s, the Church of the Harley David- occurred anywhere than in Modesto, where the pas- son claimed an automatic exemption under the law tor of the Universal Life Church, Dr. Kirby J. Hens- because riding a motorcycle was a religious experi- ley, has ordained more than three million other ence. It worshipped motorcycles and had as a tenet ministers since 1962 and has granted untold doctor of its faith the belief that each of its members of divinity degrees for "suggested free-will offer- possessed intricate knowledge about its "deity" to ings" of $20. warrant the teaching of motorcycle mechanics un- To most Americans, the promotion of academic der the exemption. Eventually, however, the Office trappings by ecclesiastical organizations is harm- of the Attorney General was able to reject its claim. less enough that it raises few questions and only an In 1984 the Attorney General was able, after years occasional wry eyebrow.But now and then prob- of complaints, to enjoin Clayton Theological Insti- lems arise, as when unlicensed institutions offer tute from selling degrees in theology for $20 and of- programs in "pastoral counseling," with untoward fering to provide transcripts to its degree recipients results for parishioners. In such cases, the laws of for additional sums of money.Yet at least as re- most states allow "legal loopholes through which cently as 1985, the University of Metaphysics and unscrupulous operators may slide," according to the Harvest International Bible Institute and The- James R. Mingle, the executive director of the State ological Seminary were selling degrees: and to this Higher Education Executive Officers (1988, p. 3). day, Joseph M. Kadans is issuing degrees from Mingle advocates that all states review their pres-

12 29 "Bernadean University" of his Church of Universol- yer for the Private Postsecondary EducationDivi- ogy, Inc., while he and the Attorney General await sion -- wrote in her September 1987 opinion on the the outcome of a related church university case in topic, which defines religiously exempt programs federal court. (Kadans unsuccessfully sought State and indicates what institutions should do to claim authorization for Bernadean in 1981 and was de- exemption. nied in 1982. Then operating the University out of The Department is taking no action on Feather an empty motel in Van Nuys, he claimed his motor River's claim of exemption, however, because of the home, which was parked outside, as part of Berna- press of more urgent issues. The former assistant dean's $50,000 net assets because he used it as the director of the Division explained the reason for University's admissions office. The State's visiting seldom challenging such claims of exemption in team was unable to verify this claim, however, be- these words: "When we nave legal reasons to ques- cause Mrs. Kadans was sleeping in it.) tion and investigate, the materials submitted -- if Most recently, Feather River University at Post Of- any are submitted voluntarily -- generallyrequire fice Box 1900, Paradise, California 95969, has our legal office to examine them and advise us, a deemed itself religiously exempt and claims that it very costly and time-consuming act, one, which is, is registered as such by the Department of Educa- we might add, of the lowest priority with our legal tion, although the Department disputes the claim. office and the Attorney General" (Unger, 1985, pp. Barry W. Creighton, a southern California physici- 1, 2). an, directs Feather River from 5463 Scottwood Why institutions do not submit materials voluntar- Road in Paradise. The I rniversity offers bachelor of ily has been stated most pointedly by G. Merle arts, master of arts, and doctor of philosophy de- Bergman of Los Angeles, when he dared the State grees in the martial arts through correspondence Department of Education and the State of Califor- study and transfer of credits. It "seeks to advance nia in general to try to question his Society of the study and practice of, and achievement of recog- Fellowship's Institute of World Studies about its nition in, the martial arts" -- including judo, karate, degrees (1984, pp. 5, 6): kung fu, and aikido.Its bachelor's, master's, and doctoral theses may consist of a vEritten paper or au- The only degrees whose integrity you are en- diovisual presentation. As of 1986, it was charging titled to secure are those which you authorize, Americans $20 and foreign students $100 to apply, approve, or otherwise accredit, and you cannot but it was accepting checks, VISA, or MasterCard for do that by regulating others. Any other de- its $1,500 tuition in its bachelor's program and its grees are none of your business, and our edu- $1,000 tuition in its master's or doctoral programs. cational efforts and degrees are not authorized, approved, or accredited by you, nor do we Feather River University does not consider itself a seek to have them so, nor do we claim that "church" because it "does not conduct 'services' or they are, and your attempt to compel us to anything akin to this strictly Western concept." In- seek your authorization, approval, or accredi- stead, it classifies itself as a "religious denomina- tation, or regulate Ls in any way is a gross tion," since practitioners of the martial arts under- violation of liberty.. . go spiritual as well as physical training. Among the apparently religious courses that it was offering If you believe that the Institute is not within in 1986 were Legal Issues in the Practice of Martial its constitutional rights or if you have any evi- Arts, Small Business Management Principles for dence that the Institute has represented to the Privately Owned Dojo (i.e., a martial arts-relat- anyone that it has your imprimatur, by all ed enterprise), Word Processing, and Data Process- means take the matter to court. We welcome ing. the opportunity to obtain a decisive statement from a court that you are exceeding your au- Feather River has received tax exemption status as thority, as you most assuredly are. The notion a religious organization from the California Fran- that you can deny freedom of speech, associ- chise Tax Board. Yet it does not seem to meet the ation, and religion to protect some mythical requirements for religious exemption that Margar- "integrity" of degrees is absurd. et Tan -- the State Department of Education's law-

30 Clearly, California should not and cannot prohibit and since 1972 the Western Association of Schools the free exercise of religion by the Society of Fellow- and Colleges (wASC) has required that its appli- ship or anyone else.It obviously cannot intrude in cants for membership be State-approved rather the decision of a religious institution about what it than simply State-authorized. But the lack of gen- wants to teach.But when a religious institution eral education in the undergraduate curriculum of wants to bestow academic degrees, it chooses to some approved undergraduate institutions and the take part in a long-established academic approach lack of a core of full-time faculty members at others to human knowledge and -- whatever its special be- makes them ineligible for WASC accreditation, and lief system -- chooses to submit to the same disci- their ineligibility has led to pressure for the State pline and conventions shared by other participants to equate its approval with non-governmental ac- in the academic community. The granting of aca- creditation. demic degrees is clearly not a natural right but a Prior to 1977, institutions that sought State appro- privilege in American society -- and a privilege or- val for one or another of their degree programs were - dinarily restricted by California's Legislature to required by statute to ensure only that the cur- qualified academic institutions. California's law is riculum of the program was "consistent in quality deficient in automatically granting this privilege to with curricula offered by established institutions" any group that claims that it is a bona fide church (italics added). Since then, accreditation has been or religious denomination, particularly when this added to this statutory requirement. Currently, un- privilege leads to others, such as recruiting stu- der Section 94310.2(a)(2) of the Education Code, ap- dents from overseas under federal immigration reg- proved institutions must demonstrate to the Super- ulations on student visas. intendent of Public Instruction that "the curricu- Continued exemption of Feather River University lum is consistent in quality with curricula offered by seems particularly unfortunate because it may in- appropriate establishedaccredited institutions which creasingly threaten the integrity and acceptance of are recognized by the United States Department of the degrees of a similarly named neighboring in- Education or the Committee of Bar Examiners for stitution -- Feather River College in Quincy: the re- the State of California" and the courses of study for gion's two-year community college. Joseph Bren- which they grant the degree must achieve their nan, the president of the college, says that the simi- "professed or claimed academic objective for higher larity of names and the proximity of the two insti- education, with verifiable evidence of academic tutions "has already caused inquiries and misin- achievement comparable to that required of other formation as to the mission, goals, and validity of recognized schools accredited by an appropriate ac- the educational program offered by Feather River crediting commission r ?cognized by the United College" (1989, pp. 1-2).Throughout the United States Department of Education or the Committee States, potential employers of Feather River Col- of Bar Examiners for the State of California." More- lege graduates may mistakenly assume that they over, the Superintendent of Public Instruction have majored exclusively in the martial arts. "shall not approve an institution to issue degrees until he or she has conducted a qualitative review and assessment of, and has approved, each program

Equation of State approval offered by the institution..." (italics added). with non-governmental accreditation More confusion over the integrity of California de- California's 70 colleges and universities that are grees has been caused by these italicized words State-approved but unaccredited vary widely in than any others. Clearly in terms of the "verifiable scope. Two-thirds of them are single-purpose insti- evidence of academic achievement" comparabi- to tutions that offer degrees in only one field, such as that "required of other recognized schools accredi- psychology, theology, or law.About 15 percent ted by an appropriate accrediting commission," offer several degrees in closely related areas of some State-approved institutions are clearly com- study, while the rest offer degrees in a wide variety parable to some accredited ones. But others are just of subject areas. Some of them clearly rival accred- as clearly not.Basing State approval on the com- ited institutions in their educational attainments, parability of curricula and academic achievement between non-accredited and accredited institutions

31 raises as many questions about the quality of Cali- member of the Council for Private Postsecondary fornia's accredited institutions as it does about its Educational Institutions and former dean of the approved institutions. Moreover, the visitation and State-approved California Institute for Clinical So- decision-making processes of accrediting agencies cial Work -- argues that authorization should be a and the State Department of Education are so "temporary way-station on the way to approval" different as to themselves be non-comparable. (1988, p. 1).Under this approach,"approval" would become the State's minimum standard of California is the only state in the nation that "ap- common educational quality, preceded by a tempo- proves" some institutions in this way, above ant' be- rary or provisional licensure status for fledglingin- yond authorizing them to grant degrees. Under stitutions. John H. Peterson -- the former director of the Pri- vate Postsecondary Education Division -- the Divi- sion sought to portray State approval as equivalent Lack of educational standards to accreditation; and, as noted earlier, the Dbiision for authorized schools of theology has succeeded in convincing the State Personnel Board of their comparability. Similarly, the Coun- When the Legislature strengthened the minimum cil for Private Postsecondary Educational Institu- standards for California's authorized colleges and tions has urged Superintendent Honig to convince universities in 1984, it allowed unaccredited insti- the United States Secretary of Education of their tutions that award degrees "primarily in theology comparability, so that the federal government will and other areas of religious study" to continue to recognize California's approval process as compar- operate under the previous standards. California's ale to accreditation, thereby allowing California's best-known theological schools are nationally and approved institutions to become eligible for federal regionally accredited, but to avoid questions of student financial aid -- and thus for State student State control of unaccredited ones, the Legislature aid as well. created for them a new category of institutional recognition -- Section 94310.4 of the Education Code -- For several reasons, however, this equation of State and required only that (1) the documents that they approval with accreditation seems ill-advised. Be- submit for review are accurate, including a state- yond thn confusion it caaaes both within California ment of institutional assets of at least $50,000; (2) and throughout the world, it undercuts desirable their education is directly related to theology or State policy cf encouraging non-governmental ac- ministry, and (3) the titles of their degrees identify creditation.It also blurs the desirable distinction them as in theology or ministry. between State licensurc on the one hand as an essential means of minimal education quality control Thirteen institutions have been authorized by the and accreditation on the other as a beneficial means Superintendent to operate as schools of theology of quality improvement. under this new section of the Code. The Superin- tendent grants authorization to these schools for a California would be on more defensible ground if it three-year period by having a three-member vis- moved away from this pretense and based the iting team determine the truthfulness and accuracy meaning of approval on criteria other than the com- of their documents. Only if the team finds the affi- parability of curricula and the academic achieve- davits to be inaccurate may the Superintendent ment of graduates.For example, it could require deny them authorization to grant degrees. approved institutions to demonstrate that they achieve their educational purposes successfully or The Commission has no reason to believe that make a demonstrable difference in the academic these institutions are not serious academic insti- achievement of their graduates. tutions. Nonetheless, the law governing them has three weaknesses -- confusion, inadequacy, and Some observers have suggested an even more redundE ncy. radical change involving approval: that it become mandatory rather than optional. They suggest that Confusion: Institutions authorized under this California expect all authorized institutions to section of the iaw are prohibited from repre- achieve approval within a certain number of years. senting "by any means whatsoever" that State Among them, Rosemary Lukton -- until recently a has made "any evaluation, recognition, accredi-

32 tation, approval, or endorsement of the course lose nothing by being exempted rather than be- of study or degree." But because the law does ing authorized. Section 94310.4 could thereby not require the schools to state this fact in their be eliminated entirely from the Education Code. publicity, most people would ordinarily assume that the State has evaluated, recognized, and endorsed them by authorizing them to grant degrees. To a prospective student, no great dif- Enforcement provisions ference might be obvious in an institution's statement that it is authorized to grant degrees The Private Postsecondary Education Act has at under Section 94310.4 rather than 94304.3 of least four weaknesses in its enforcement provisions. the Education Code. Yet the difference is not simply academic.State authorization means Inadequate first-offense penalties entirely different things under these two sections of the Code. Thus the Commission agrees First, the act imposes a fine of no more than $500 or' with the Division's former assistant director: imprisonment in the county jail, or both, for a first "The school-of-theology statute, if it needs to offense of willful violation of its provisions, and a exist at all, needs to be revised to include cri- fine of at least $1,000 and felony imprisonment in teria for authorization that clearly relate to the State prison, or both, for a second or subsequent such institutions" (Unger, 1985. p. 2). offense (Section 34336). Its first-offense penalty is unlikely to deter potential violators. Inadequacy: Permitting a degree-granting institution to operate with no more than $50,000 Oregon, in contrast, has solved this problem by fin- of net assets devoted to education has long been ing first offenders up to $25,000 -- but then giving an inadequate requirement, as evidenced by them the alternative of signing a court statement of the jewelry, condominiums, and recreational voluntary compliance, after which another violation vehicles that institutions have claimed over the automatically puts them in contempt of court and years as their educational assets. It consists of can lead to the maximum fine. less than $1,000 in 1850 dollars -- the year California first imposed an endowment re- Insufficient "padlock" provisions quirement. Some observers believe that, at a minimum, the Legislature should increase this Second, the act does not give the Superintendent of requirement to $150,000; and some advocate Public Instruction the power to halt the operation of that California should emulate Pennsylvania's authorized institutions that are not meeting their requirement of $500,000 in clear endowment obligations. In 1981, the law was strengthened by principal, exclusive of any buildings, equip- the addition of its "padlock" provision -- Section ment, or indebtedness. The Commission be- 94305.5 -- that allows the Superintendent to seek lieves a more equitable requirement for all in- injunctions by local courts or law enforcement agen- stitutions is to expect them to have adequate cies to halt the operation of unauthorized or unap- financing to ensure programmatic stability. proved institutions until the courts can determine Thus an institution offering only one-year pro- that their authorization or approval is unnecessary. grams would need fewer resources to ensure But this provision fails to apply to already licensed that its students are able to complete their pro- institutions. Revocation of an institution's license gram than would an institution offering a involves a number of steps, estimated by the Office three- or four-year program. Assets of $50,000 of the Legislative Analyst to cover a minimum of 16 are unlikely to provide this assurance. to 26 months (1980, p. 29)

Redundancy:Religious exemption under the Procedure Months involved law seems a more valid status than authorization for those religiously oriented institutions Preparation of case by Division staff. 4-5 that du not want authorization as colleges and Hearing before the Council for Private universities. If California retains some form of Postsecondary Educational Institutions. 2-4 this exemption, religious institutions would

33 Division forwards the case file to Legal Office its authority to institute or continue a proceed- and Attorney General who drafts accusation. 6-12 ing against the applicant for the denial of the license or a special permit upon any ground Advisory administrative hearing. 3-4 provided by law or to enter an order denying Final decision by Superintendent. 1 the license or special permit upon any such ground. Possible court action by institution. The suspension, expiration. or forfeiture by Official revocation (injunction by operation of law of a license or a special permit Attorney General, if necessary) issued by the state department, or its suspen- Total elapsed months 16-261- sion, forfeiture, or cancellation by order of the state department or by order of a court of law, Noncomplying institutions can continue to operate or its surrender without the written consentof and award degrees during this time. To shorten the state department, shall not deprive the this process, the Legislative Analyst has suggested state department of its authority to institute or that the statute be changed to grant the Division continue a disciplinary proceeding against the the authority to revoke or deny authorization upon licensee or holder of a special permit upon any direction by the Council (1980, p. 31). ground provided by law or to enter an order suspending or revoking the license or special Lack of continuing jurisdiction permit or otherwise taking disciplinary action against the licensee or holder of a special per- Third, the Superintendent has no jurisdiction over mit on any such ground. the proprietors of institutions if they withdraw The Superintendent of Public Instruction lacks sim- their application for authorization or close an insti- ilar continuing jurisdiction. tution that has been denied authorization and then open it again under a different name. The reason is that the Superintendent can only revoke a license Conviction of officers or agents to operate -- and these individuals have no license Fourth and finally, the Superintendent must rely to be revoked. on Sections 18825 and 18826 of Title 5Regulations What is needed is a statute that allows for the filing to deny or suspend institutional authorization or ap- and pursuing of disciplinary action after the expi- proval, or an institutional officer's or agent's per- ration of a license -- in effect saying, The fact that mit, if the holder pleads guilty or nob contendere or you aren't authorized to grant degrees doesn't pre- is found guilty of criminal acts other than minor vent the State from seeking to protect the public traffic offenses. The Attorney General's Office deems against your activities." these regulations to be unenforceable if the individ- The Office of the Attorney General offers an exam- ual is convicted on a plea of nolo contendere, since ple of such language that provides for continuing these regulations do not stem directly from statute jurisdiction which appears in the following itali- Courts have prohibited use of nolo contendere pleas cized portion of Section 1297 of California s Health without specific statutory authority in Birnbaum v and Safety Code: Lackner (1978) 82 Cal, App. 3d 284, and Cartwright v. Board of Chiropractic Examiners 11976) 16Cal, 1297.Effect of withdrawal of 3d 762. Thus the Attorney General recommends application, suspension, expiration or the addition of the following language to statute forfeiture on authority of state from Sections 18825(e) and 18825(e) of the regu- department. lations: The withdrawal of an application for a license The superintendent may suspend, deny or re- or a special permit after it has been filed with voke an approval, or authorization, or Certifi- the state department shall not, unless the cation of Authorization for Service, whichever state department consents in writing to such action is timely and appropriate, on the follow- withdrawal, deprive the state department of ing grounds, appropriate ..

34 1 The owner or any of the owners, member of the fare of its students, or to the operation of pri- board of directors, officers, administrators, or vate postsecondary institutions generally. instructors has pled guilty to or has been found guilty of any crime other than minor traffic offenses or has entered a plea of nolo Conclusion contendere to a charge thereof, or has committed unscrupulous acts, made material misrep- Despite the major improvements in several sections resentations, committed fraud, or is otherwise of the Private Postsecondary Education Law during unfit to engage in the business of private post- this decade, those sections that deal with enforce- secondary education, unless evidence of reha- ment are unnecessarily weak, and several other sec- bility or mitigation satisfactory to the superin- tions fail to safeguard the integrity of California de- tendent is presented. grees. The two that deal with religious exemptions Any crime, act, or omission alleged as grounds and authorized schools of theology fail with respect for denial, suspension or revocation under this to the degrees of these institutions, while the one on subsection must relate to the educational ser- approved institutions fails with respect to both ap- vices of the particular institution or to the wel- proved and accredited institutions.

35 Superintendent of Public Instruction and Director State Board of Education Division of Libraries J of Education Executive Deputy Superintendent of Public Affirmative Action Office Instruction

Legal Specialized Curriculum & & Field Department and Programs Instructional Governmental Services Management Audits Branch Leadership Policy Branch Services Branch Branch Branch Branch

Youth, Adult, Legal & Alternative Categorical Child Adminis- Support Public Development trative Office Educational Relations Programs Division Services Services Office Division Division Division

Audit Special Curriculum, Child Nutrition & Management Education Instruction, & External Budget Food & Review Division Assessment Affairs Office Distribution Office Division Office Division

Fiscal State Special Instructional Executive Federal Oversight & Schools & Support Management Planning & Services Services Liaison Analysis Office Assistance Division Division Division Office

Compliance & Consolidated Career- Inter- Fiscal Policy Information Program Vocational segmental ,Governmental Planning & Systems & Management Preparation Relations Affairs Analysis Services Division Division Division Office Division Division

Office of Ap- Private Program portionments, Personnel Postsecondary Evaluation Grants. & Management Education &Research Fiscal Division Division Division Assistance

Resource School Services Facilities Division Planning Division

DISPLAY 6 Source: Honig, 1988, Section 1000.

36 Implementation of the Law

CALIFORNIA'S Superintendent of Public Instruc- support of activities of the State Department tion faces a nearly impossible task: implementing of Education pursuant to this article the Private Postsecondary Education Act of 1977 consult with the council prior to instituting without adequate resources to do so. As a result, a any action to deny, suspend, or withdraw ap harried staff in the Private Postsecondary Educa- proval or authorization of courses or schools tion Division has had to try to implement the law as pursuant to this article .... best it can, using whatever funds it could fir' in order to do so. take into consideration the advice of the council on all matters where the council is author- Thomas A. Neal, the president emeritus of Califor- izeci to communicate advice to the director .. .. nia Coast University, places the blame for this situation not on the law but on the Superintendent: negotiate and enter into interstate reciprocity "The legislation that we have now is a deterrent to agreements with similar agencies in other a diploma mill coming to California because it's just states if. in the judgment of the superinten- too much trouble.If the schools in California are dent, such agreements are, or will be, helpful not measuring up, it's the Superintendent's respon- in effectuating the purposes of this chapter .... sibility to make sure they do. It's that simple." establish and maintain a Private Postsecon- Yet California may expetoo much of its Superin- dary Education Administration Fund .. .. tendents in wanting then. o protect the integrity of California's two most recent Superintendents have its degrees when, of social necessity as well as polit- fulfilled most of these stated responsibilities. But ical reality, its Superintendents must give priority for various reasons, they have avoided three of to solving the problems of California's elementary them -- to "meet with the council at least twice per and secondary schools. year" (Section 94305(e), "publish annually for pub- In this part of the report, the Commission examines lic distribution a directory of all institutions ap- the implementation of the Private Postsecondary proved or auidorized to operate in this state under Education Act by the Superintendent and its two provisions of this chapter" (Section 94305(g), and other major participants -- the Council for Private "adopt regulations" governing the licensure and Postsecondary Educational Institutions, and the authorization process (Section 94305(b). Private Postsecondary Education Division, which During his tenure, California's most recent Su- operates as a unit of the Specialized Programs perintendent met once with the Council, but .he Branch in the Department of Education ( Display 6, current Superintendent has yet to do so He has opposite). designated Joseph Symkowick, General Counsel of the Department, as his representative on it. Symkowick, who reports directly to the Superin- Role of the Superintendent tendent, is one of the Council's 15 voting :members, but the Superintendent has not used his The Private Postsecondary Education Act specifies own personal presence or the influence of his office at least 13 responsibilities for the Superintendent, to persuade the Council to approve an adequate including to budget for the Division or support adequate regulation of the industry in its long-run interests. establish policy for the administration of this chapter.... Rather than publishing an annual directory of institutions, which the Department used to do prepare annually a proposed budget for the when its budget permitted, the Private Postsec-

1( ::',._) 37 ondary Education Division now supplies comput- tegral and effective element in the structure of post- erized printouts of schools that offer particular secondary education in California" and "maintain- programs to anyone who requests such a list. ing and continuing, to the maximum degree per- William Noble, assistant director of the Division, missible, private control and autonomy, in the ad- explains that the old directory "wasn't worth the ministration of the private postsecondary schools paper it was printed on because by the time we and colleges in this state" (Section 94304). would get it printed, it would be several months The Council has 15 voting members -- four of them out of date. When you consider that we open a appointed by the Superintendent, five by the Sen- new school every day and we close one about ev- ate Rules committee, and five by the Speaker of the ery other day, six months out of date is very far Assembly -- plus the Superintendent or his designee. out of date. We now give students information Seven of the appointees must be public members current within about a week, so the computerized and seven administrators of private institutions. list more than meets the need as specified in the The Council has three additional non-voting ex-offi- law." The Division deserves commendation for cio members: the directors or their designees of supplying these computerized lists in respiinNe lo three related State agencies -- the Departments of requests -- yet such individually prepared lists Consumer Affairs and Employment Development, are unlikely to meet the need of California's high and the Postsecondary Education Commission.It school guidance counselors, youth officers, a n d has no official relation with the State Board of Edu- public libraries for basic facts about postsecond- cation. Its current chair is Stephen Smith, a public ary opportunities in the State. appointee of the Senate Rules Committee The Superintendent has sought to develop reg- The Council has sought to fulfill its responsibilities ulations that would implement the new stan- quoted above -- at least as far as non-accredited in- dards established by the Legislature in recent stitutions are concerned. As noted earlier, its 1982 years for authorized colleges and universities and special committee on authorization standards made for accredited out-of-state institutions -- but he a major contribution to the improvement of private missed the Legislature's deadlines for doing so and postsecondary education by adopting standards has yet to submit enforceable regulations to the that emphasized education rather than credential- Office of Administrative Law for adoption. ing. Last September, the Council approved a new Given the total responsibilities of the Superinten- protocol to improve its review of visiting committee dent of Public Instruction as a publicly elected State reports; and it has now adopted a "Statement of constitutional officer;These few omissions may seem Principles, Role, and Leadership" to guide its pri- miniscule. But combined with the last two Superin- orities in the future. tendents' inability to find adequate support for the But the Council has seemed to limit its leadership Private Postsecondary Education Division, they to non-accredited institutions rather than both ac- have compounded the Division's problems in trying credited and non-accredited, and its role is primar- to implement the law and they are allowing ques- ily only advisory to the Superintendent. Its advice tionable non-accredited institutions to operate with can be ignored except in ooe area -- finance. Section inadequate regulation or threat of closure. 94331 of the Education Co do gives the Council veto power over increases in the :'es that the Division charges institutions for their authorization or approval.In 1985, the Council re'ected the Depart- Role of the Council for Private ment's request for a fee increase to finance the new PeAsecondary Educational Institutions site-visits to authorized institutions (Lawrence, 1985; ai,..1 Gaylor, 19851. As a result, the Postsec- The Council for Private Postsecondary Educational ondary Education Commission had to seek an At- Institutions was created in 1972 as an advisory torney General's judgment against the Council to body to the Superintendent in order to "provide be assured of reimbursement for its participation in leadership and direction in the continuing develop- the visits.In 1986, the acting director of the Divi- ment of private postsecondary education as an in- sion asked the Council to approve fee increases to

38 1 af, enable it to hire needed staff -- calculated by him at and a half-time stenographer assigned to it for the two consultants, two analysts, and four support first time since 1986-87. Yet the Council does not staff -- or fully one-fourth of the Division's staff at control its staff: instead, it relies on the Director c f the time. Yet the Council refused to permit the in- the Division to select and assign them. creases that year, claiming that the Division would Now that staffing has been restored, the structure use the increases for other purposes than institu- and function of the Council warrant review as the tional authorization or approval. Legislature considers changes in the Private Post - Under Department of Education policy, the Div' secondary Education Act. sion has been limited to only one-fifth of one law. One possibility would be to orient the Council far yer's time in the Department's legal office : A it, more completely and exclusively in the direction backlog of legal work has led the Division to a4:th of "encouraging" privately supported education Council for a fee increase to fund a full-time attui rather than "regulating" it for example, by . ney. The Council has approved an increase to per. having its staff and members advise and counsel mit $29,000 more for legal support dui ink 1990. yet struggling institutions about how 1 ri become or because of no matching funds from the State the remain authorized or appro en ...I me that the other staff shortages remain. staff of the Division now perthrm but that con- Like any governmental advisory board regarding flicts with their regulatory chit ies any industry, the Council has fluctuated in its con- An opposite option would be to assign the Coun- cern for protecting the short-term versus long-term cil far more regulatory responsibility beyond interest of its industry. It has sought to "encourage that of merely making 'recommendations to the privately supported education" -- one intent of the Superintendent" about institutional licensure, law -- by maintaining openness to innovation and appeals, and complaints.Properly structured experimentation, and it has recognized that in the and staffed, it could become the appellate body -- long run some restraints on innovation are neces- the court of last resort -- for decisions by the Divi- sary to achieve the other intent of the law -- "recog- sion and the Superintendent. This option would nition of work completed and degrees and diplomas solve one of the present weaknesses in the autho- issued by privately supported institutions "Until rization process: that of having the final step in recently, it was reluctant to support many re- the process prior to litigation be made by an indi- straints. vidual -- the Superintendent -- rather than by a Some observers contend that it is ,....realistic to ex- group. pect any such board to promote as well as regulate Probably the most common principle of Ameri- its industry adequately. They cite as one example can governance, whether in civil, academic, pro- the federal Atomic Energy Commission's promotion fessional, or corporate government, concerns the of the atomic energy industry to the neglect of its three basic governmental functions of legislation. regulation. Clearly the Council has alternated be- adjudication, and administration: Groups leg:s- tween its promotional and regulatory emphases. late and adjudicate, while individuals admints According to one of its members, earlier in the deter. That is, the most important policy- making cade "it was pretty much a rubber stamp of the Di- and judicial decisions are best made by group:, vision, and the Division was a rubber stamp of the be they legislatures, supreme courts. academic industry. . Now two-thirds to three-fourths of the senates. or boards of directors -- while Arnim; members take their oversight role seriously and trative decisions are best made by individuals. believe it is more urgent than their promotional role.The industry used to see the Council as its California's current licensure process for private baby, but now it has mixed feelings about it." postsecondary institutions turns this tradition on its head: it designates the Council as only an Beyond this tension of goals, the Council has suffer- advisory body co the Superintendent rather than ed a structural problem in its lack of staff.This as a policy-setting body and as an 3djudicatory past fiscal year, the Division left the Council's staff board for resolving disputed administrative de- consultant position vacant for financial reasons. As cisions. of January 1989, it had a full-time staff consultant

39 Role of the Private Barankin taught English and psychology at San Postsecondary Education Division Francisco State before going into private consulting and working for the Legislative Analyst, after which The Private Postsecondary Education Division in he was hired by the Department of Education in its the Department of Education implements the law child development unit. He then reorganizedfi- on behalf of the Superintendent. Increasingly the nancial reporting in its special education unit be- Division has been an anomaly within the Depart- fore assuming directorship of the Division.He ment. When it was first organized as the Division states the task of the Division and his own priori- of Readjustment Education" of the Department at ties this way: the end of World War II to administer provisions of the first GI Bill, the Department had other higher We have no other interest in anything other education duties. It was responsible for the gover- than that California institutions deliver to the nance of California's state colleges and statewide consumer what they purport to deliver. We oversight of its two-year junior colleges.But in have no other purpose for being. 1960 its control of state colleges was assigned to the In any field, there are people who have a com- Trustees of the new California State College Sys- mitment to what they are doing-- who have a tem -- now The California State University; and in commitment to doing it well, and who have 1972 its two-year college functions were assumed their priorities straight from the point of view by the new Board of Governors of the California of the consumer. I will do whatever it takes to Community Colleges. defend and protect those folks and to en- Since then, the Division has been the only unit of courage them to continue doing what it is they the Department that oversees any degree-granting do, whether in the public or the private sector. institutions. The Department remains involved in At the same time, there are those whose inter- non-degree postsecondary education through its ests are different. They are more concerned work with adult schools and regional occupational with other things, whether it's eliminating centers, and it continues to oversee federally sup- competition or making a buck at improper ported vocational education in the community col- cost, or whatever. We need to do what needs to leges, but like the Superintendent of Public In- be done about those folks as well, both in the struction, it has increasingly devoted the rest of its public and the private sector. attention to elementary and secondary education. Barankin has made major efforts at trying to solve the Division's long-standing problems, beginning Division organization and staff with staff development. He has organized staff training sessions and regular staff meetings-- com- The Division has had three directors over its past pared to only two all-staff meetings held during the four decades: Herbert Summers for the first three, entire decade prior to his appointment. An internal John Ii. Peterson for a fourth-- from 1976 to 1986 -- audit conducted by the Department's Audit Man- and Joseph P. Barankin since July 13, 1987. Wil- agement and Review Office indi ated some of the liam Unger and William Noble have served as act- problems that Barankin has faced, noting the Divi- ing administrators during the 1980s. sion staff had: The Division has two assistant directors-- William Granted an accredited status to an unlicensed in- Noble and Roy Steeves -- who manage its two offices stitution without receiving written documenta- in Sacramento and Los Angeles, respectively. The tion from the accrediting agency and without Los Angeles office is being phased out by attrition questioning a condition for accreditation: but it still consists of five staff, plus Steeves. The Sacramento office has 25 staff positions in addition Retained the institution's status despite a change to Barankin and Noble, but five of these positions of ownership, on the assumption that the accred- were vacant as of last summer ( Display 7). Now all iting agency would know of the ownership change have been filled. but without written documentation to this effect.

40 DISPLAY 7Organization and Staff of the Private Postsecondary Education Division, July 1988

Private Peelmicon1m9 Eidgalion Division J06241 P Brant* Direelor Executive Secretary Assistant Superintendent Veronica Pennington 0146 0147 322-1852

Vacant. Special Advisor Stenoaraoher to Advisor ASSISI ANT DIRECTOR ASSISTANT DIRECTOR Consultant Dim* Russel (0 5 ) Waliarn K Noble Rev W Steens Ed Admin I 0148 323 6571 0141 323-6643 Ed Admit, I Sacramento Los Anfiel :422 3013 Gera Ciochanote Dace Tech . 445-3427 0520 4%5 0146, 0147 VgrInt 011ee Tech ,445.14,7 0145.0'47 Manha Emote, Steno, 3224651 Vacant Ratalind Douglas OA IL 445-3427 Secretary to the Ann 0411 OS I Leiria Grey, OA 6 445442? Alsol4n1 Director Voronvz &P. :v:8 OA 11 445-3427 Sid Macende, OA II, tG) 4451427 Joan Harman, St Steno 5:14/57 Vacant, OA 11 8 540 4257 .1146.0147 01 V. 014- Vacant, OA II 0146, 0147 0145.9,47

GEOGTIAPIIIC ZONE Prove G Strotn, Consuetnt COMPLAINTS iCt IF 445 71085 Rick Mepa. AGPA Robert Buckenmover Comtuaarit Won H Hood Consultant J 322.105S 445-3427 8-670 4'h9 Charles A manning. Consultant 01440147 322-1081 ADMINISTRATIVE SUPPORT Karl E WART, ed,UltXrt Kethn Motet Consultant 8 515 4111 322-14S0 Kimberly Cowed, SSA at Pithead W Peterson Consultant 322'1451 322 0.711 0141.0147 VIOTATCH" Leg H Stntlings consident STUDENT TUITION RECOVERY FUND( Irvine A Ptirdy Cc-suit-pit 0146 0147 a Irk COMPUTER SYSTEMS 8-570-4'43 NEW OCCUPATIONAL SCHOOLS( Lorraine Tripp. SSA 0147 CAREER RELATED EDt 'CATION 0145 323-4189 Jenne L Gookon,SSA RELIGIOUS EsTMPIKYISI 0,46. 0147 322-11181 GEOGRAPHIIC, Zme,w G Charles 5 Williams Consultant 620 4340 VETERAN:NSW:7ENLIAISON 14 A Game Blue, Consultant 116.0147 322-1160 Nom Alt consultants on this Division are clessthed as 14 of Acipnweb Consuaares" OUT-OE STATE ACCREDITED DEGREES Morns L Knew Consultant 3234188 nE7RFFcoonnemmoe 1 'line And.-e, ,,c A 0146 fill 3V191',)

Source: Homg,1988,Section1100.

Authorized an institution to award degrees on schools each year that are reviewed by other State the basis of a visit to it under its previous owners; agencies, handling over 200 career-related education filings a year, approving some 20 changes of Maintained more than one file on institutions: ownership or location a month, approving between Failed to date stamp all documents on receipt; and 100 and 200 personnel applications a month, re- Signed the Director's name on correspondence in- sponding to over a hundred inquiries a month about stead of their own (Aspling, 1987, pp 1-4) opening new institutions, providing up to 50 course inventory printout:. a month, receiving between 20 and 30 consumer complaints a month, issuing school Orientation of the Division violator notifications, paying out Student Tuition Despite the Division's best intentions, protecting Recovery Fund claims, staffing the Council for Pri- the "integrity of degrees" cannot be its first priori- vate Postsecondary Educational Institutions, and ty.Degree-granting institutions constitute only a maintaining liaison with at least 32 different State small fraction of the more than 2,500 private post- and federal agencies on matters of institutional li- secondary institutions that the Division must over- censure. see; and its activities range far beyond this over- Of all these tasks, the Division's largest is to work sight -- among them, officially licensing some 380 with the Veterans Administration as a "state ap-

41 proval agency" to approve courses so that veterans Division without any expertise in higher education and others can receive VA reimbursement for com- other than having been a student. Few have first- pleting them. Only three other states in the nation hand experience with the process of earning a doc- -- Nevada, Tennessee,and Wisconsin -- expect that torate. Barankin, Roy Steeves, and three staff con- their state approval agencies for veterans' reim- sultants are the only members of the Division who bursement will also license their degree-granting have been faculty :nembers. Staff hired from other institutions. From the Commission's perspective, units of the Department may have particular ex- California's combination of these two duties in the pertise in school administration or adult education Division without supporting the latter of them -- in- -- but not in degree-level programs.The Division stitutional licensing -- seriously weakens its licen- seeks new consultants with knowledge of degree - sure function and the integrity of California's de- granting institutions, but few candidates apply grees and diplomas. with that expertise, so its staff is unlikely to change in that direction dramatically. As part of the Division's VA approval function, it evaluates courses of all educational institutions in The Legislative Analyst recommended in 1980 (p. California that seek approval of these courses for iii) that the State abandon the "state approval veterans' eligibility, including nearly 400 public in- agency" functions of the Department, since these stitutions that range from community colleges and veterans' education duties seemed ineffective in as- universities to adult schools and hospitals, as well sessing pr_ogram quality, inefficient in terms of tra- as over 800 accredited and non-accredited private vel time involved, and largely unnecessary because trade and technical schools, colleges, and universi- they seemed to duplicate annual visits by VA staff. ties. The Analyst proposed instead that the Legislature direct the Division to concentrate on handling ini- For each institution, the Division's staff consul- tial institutional reviews, closures, complaints, and tants complete a 'Tide 38 Administrative Report," in-depth assistance to problem institutions. So far, checking 51 items such as these: the Legislature has not agreed. Charges to VA beneficiaries for tuition and fees were the same or less than the charges to Funding of the Division other similarly circumstanced students. Yes 0 No 0 The orientation of the Division is evident from its The facility maintains accurate current and funding. The Division operates completely on VA complete records of progress or grades. Yes 0 funds and on the fees it charges institutions and No 0 individuals -- and it pays overhead to the Depart- Display 8 shows the Is the school catalog routinely distributed to ment from its VA contract. amount of its two sources of funds in recent years, elrollees? during ,;:hich time VA funds comprised 54 percent If facilities were toured, do facilities, equip- of the total. The Division received $1.116 million ment, and utilization appear satisfactory? from the VA during fiscal year 1987-88 and If classroom instruction was observed, was it $1,212,400 for this year, but the Department judged generally educationally adequate? charges overhead of 30 percent on this amount, while the federal government pays overhead of only Staff consultants visit accredited as well as non-ac- 15 percentso the Division had had to make up the credited institutions for such approvals, and be- other 15 percent by other means. cause at least once a year they must visit each insti- The source of the Division's funds ' -termines the tution in which a veteran is enrolled in an approved proportion of time that its staff can devote to issues course, they spend the largest block of their time on of institutional licensure.It explains to applicants veterans' eligibility reviews. for its staff consultant positions that 40 percent of In addition, because most of the courses they review their time will be devoted to VA work, compared to are at vocational d,1 technical levels and do not 10 percent for institutional evaluations for State lead to degrees, most staff consultants come to the authorization or approval. And because the VA dis-

.1(.4.1...1 DISPLAY 8 Expenditures b, he Private Postsecondary Education Division, Fiscal Years 1982-1987, by S9urce of Funds (Dollars in Thousands)

Source of Funds

Veterans Administration Institutional and Individual Fees Total Fiscal Year Amount Percent Amount Percent Amount Percent

1982 $1,402 82% $ 299 18% $1,701 100% 1983 940 57 715 43 1,655 100 1984 991 56 763 44 1,754 100 1985 1,035 53 936 47 1,971 100 1986 882 38 1,463 62 2,345 100 1987 1.028 46 1.189 54 2,217 100 Total $6,278 $5,365 $11,643 Average $1,046 54% $ 894 46% $1,941 100%

Source:Private Postsecondary Education Division. California State Department of Education.

penses its funds on a "time and costs reimburse- President Reagan signed the "New GI Bill" as a ment" basis, the Division must justify its clams for three-year test program that became permanent in reimbursement by its actual services rendered. 1987. Under this law, members of the armed services on active duty as well as reservists and Na- In the past, the Division unsuccessfully tried to pig- tional Guard members may receive benefits. Thus gy-back some of the costs of its institutional auth- the Division's funding from the Veterans Adminis- orization duties onto its federal contract, claiming tration seems safe :.definitely. that the VA benefited from its authorization work. The VA disagreed, and in 1980, it withheld A greater problem for the Division sterns from the $328,128 from the Department's existing contracts, other major source of its funds: institutional fees. claiming that it had paid the Division $115,878 too Because the Division lacks any State General Fund much out of its $697,618 contract during fiscal year support, it must charge high fees in order to support 1977 for staff time not directly related to course ap- all of its non-veterans activities. In fact, its fees are provals and $212,250 too much out of its $890,000 the highest of any state regulatory agency for high- contract during 1978. The Division and Depart- er education in the countryIt charges institutions ment appealed the decision and sought to recover applying for authorization $3,968, compared to an some $100,000 of that amount. After seven years i f average of $228 among the other states that charge periodic negotiation, in July 1987 the VA agreed to any fee at all.Its annual renewal fee tnereafter is reimburse the Department a total of $61,000 of the $1,904, compared to $139 among those other states original $328,128 -- and the Department accepted (In comparison, for an evaluation visit every five this compromise (Wolfertz, 1981, and Veterans Ad- -s, two-year institutions accredited by the Ac- ministration, 19871. crediting Commission for Community and Junior Colleges of the Western Association of Schools and Early in the 1980s, the possibility existed of severe Colleges pay WASC $3,500 if they have fewer than funding cuts for the Division from its Veterans Ad- 2,000 students, $4,200 if they have between 2,000 ministration contract, since veterans were expected and 10 000 students, and $4,900 if they enroll more to use their entitlement under the GI Bill by the than 10,000. They also pay annual dues of either end of 1989. In 1984, however, Congress passed and

1 4 L 43 $1,500, $2,010, or $2,500 depending on their enroll- San Francisco State, San Jose State, and California ment.) State University, Hayward. Some non-accredited institutions would be willing The Office of the Attorney General claims that such to pay the Division even higher fees to ensure an activities of the Division's staff cause problems for adequate job, but others object to the current fees, it when it must help the Department of Education which place the staff of the Division in a continu- defend the Superintendent in cases of denied auth- ally awkward and sometimes conflicted position orization. The Office has difficulty building a case with these institutions -- on the one hand, feeling against an institution when the Division's staff that they should advise and counsel them about members have initially played the role of institu- how to achieve authorization or approval, and, at tional advisor, helper, and friend -- and only later the same time, judging their adequacy in meeting become the institution's accuser and main Attorney authorization and approval standards. General witness. It may be too much to expect California's regulatory Conflict of roles agency to emphasize regulation when it is the on., one in the entire nation that receives no State tax Although the Private Postsecondary Education Act dollars to do so. But how to ensure regulation re- of 1977 has the dual purpose of promoting private mains the State's greatest dilemma in trying to education as well as regulating it, the law has nev- maintain the integrity of its private postsecondary er assigned the task of promoting private education education enterprise. to the Division, the Department, or the Superinten- dent. Instead, it assigns that priority to the Council Consequences of underfunding for Private Postsecondary Educational Institutions, directing it to "provide leadership and direction in Lack of State funding not only compromises the the continuing development of private postsecond- staff of the Division in their regulatory role, it frus- ary education." But because the State has required trates their efforts at regulation. Among the com- the Division to fund its regulatory activities on the ments of current and former staff members are basis of fees alone, the Division has been obligated these:The pressure from various audiences is so to play a role of encouragement and promotion, great, you're in a continual state of paranoia.It with unfortunate results to its responsibility of reg- takes three years to learn the job." "The job is im- ulation. possible to get on top of.""I feel out on a limb. The staff of the Division provide extensive consulta- What do I have in order to back me up in a negative tive services to institutions in order to help them decision?" The Division needs a full-time attorney meet the requirements of the law.They spend and at least twice the staff." much of their time helping institutional officials Each staff consultant has between 200 to 300 insti- bring their operation up to minimum standards, tutions to oversee -- among the highest load of any placing emphasis on servicing applicants for auth- major postsecondary oversight agency in the coun- orization and preparing them for the site-team vis- try.According to a Commission survey of the 50 it.Some of them not only advise administrators states, the Division has a higher institution-to-staff about how to write statements of institutional pur- ratio than any large state with the exception of pose and educational philosophy -- but actually Illinois, and all the other major industrialized states write these statements themselves for the institu- ay ge half of the Division's load.Nonetheless, tions. As an example, one of the Division's most seer tarial support for the division's staff consul- experienced staff consultants spent months off and tants iti limited, and consultants are able to spend on during the mid-1990s helping Columbia Pacific only between seven and ten days a month in the University reorganize itself into three main field, due to budget limitations.With minimum divisions, refine its student application materials, visits taking one-half day each, they can average rethink its curriculum, rewrite its catalog, create a only 14 to 20 visits a month. faculty handbook, and compare its courses with such accredited institutions as Berkeley, Stanford,

44 .1..";*A 1".., In the past year, the staff's workload has been com- concurrence of the other members of the visiting pounded by a inaior reorganization that Barankin team, and administrative reversal of staff actions. instituted to make the Division's decisions more consistent. In 1977, with the passage of the Private Postsecondary Education Act, his predecessor John Peterson had established a "degree team" of four Implementation of the 1977 Act Sacramento-based staff consultants -- Pat Brown, Morris Krear, Charles Manning, and Richard Pe- Problems that the Division faces in implementing terson -- plus a full-time analyst to oversee degree- the Private Postsecondary Education Act are evi- granting institutions throughout the whole State, dent in its approach to each major category of rec- while the rest of the Sacramento and Los Angeles ognition of degree-granting institutions -- religious- staffdealt only with non-degree institutions. Peter- ly exempt, accredited, approved, and authorized. son's rationale was that three-fourths of the staff lacked experience evaluating colleges and univer- Religious exemptions under Section 94303(b) sities, and the nature of most degree-granting institutions was so much more complex than that of The Division receives approximately two requests a non-degree-granting schools that they required month to acknowledge religious exemptionsthose special expertise. licenses to award degrees without State authoriza- In November 1987, to overcome persistent com- tion or approval -- but its staff has no Idea how plaints of inconsistency among the staff consul- many institutions award degrees in California with- tants, Barankin assigned all but two consultants a out making such requests. A staff consultant in the geographic region for which they are totally re- Division's Los Angeles office is the Division's staff sponsible, including acting on complaints and viola- member assigned to decide on these exemptions, tor follow-ups (Display 9, page 4C). (The two other but he must do so in what little time he has free consultants are (1) serving as staff for the Council from overseeing the authorization and approval of for Private Postsecondary Education Institutions some 200 licensed institutions in the Los Angeles and (2) implementing licensure of out-of-state basin. accredited institutions.)So far the plan has had This consultant can only guess at the number of in- mixed results; with some administrators claiming stitutions that are issuing diplomas in the State that it has merely shifted inconsistent evaluations without an exemption.If he hears about an insti- from among types of institutions to geographic re- tution operating without authorization, he writes it gions. Thus Catherine Sizemore, the legislative a letter asking for information and advising its ex- representative of the California Association of Pri- ecutive of its responsibility to apply for authoriza- vate Schools, has stated, "Depending on where you tion or exemption.If the institution is a church live in the State and who your consultant is, you that seems only to be offering certificates to its Sun- will either have an easy time, a difficult time, or an day School teachers, he is less worried than if it impossible time in getting through your process. So seems to be training nurses or other professionals -- sufficient funds are needed for adequate training of in which case he sends it a second letter. asking it to the consultants." apply for exemption.If it still fails to respond, he Barankin's plan may eventually result in much im- writes a third letter, explaining that the Depart- proved operation of the Division, but the reassign- ment of Education may refer the matter to the At- ment and retraining of staff that it has required torney General for appropriate action. If he doesn't have at least temporarily increased their workload hear back, he alerts either of the assistant directors and job stress.Combined with the increased as- of the Division to determine if the case should be signments that the Legislature has imposed on the sent to the Department's Legal Office. Division, it has led to a series of questionable de- [fan institution applies for religious exemption for cisions based on insufficient planning of campus it programs, the censultant has it submit its arti- visits, inadequate staff leadership during visits, cles of incorporation, the bylaws of the church, an unilateral staff actions without the authorization or explanation of its membership, its schedule of regu-

45 DISPLAY 9 Geographic Areas Staffed by Division Staff Consultants, 1988

GEOGRAPHICAL. ASSIGNMENT ZONES Zone A Zone B Zone C Del Norte Siakiyou Yuba Contra Coa.a Humboldt Trinity Sitter Alameda Mendocina Madan Placer San Mateo

4IShrh)u Lake Shasta Yolo Sonoma Lassen El Dorado Zone Tehama Sacramento Napa Sant. Cruz Maria Plumas Aaador Santa Clara Glenn Alpine Solana San Benito San FranciscoButte Calaveras Monteeity Sierra San Joaquin San Luis Ob. Coluaa Santa Barbers Zone E Zone H Ventura n Wm% West L.A. Orange Zone J Zone P Zone I Tuolumne East L.A. Riverside Stanislaus San Diego Mariposa Zone G Imperial Merced Southern L.A. Nona Madera Fresno (kW King* Ulf.".WAM11%..1 MO'lO Taare WAN Inyo $AN NM= Kern San Bernardino UM* SINMa 110 CLO4

$iNtA CPU' Soh PISMO NNW

IUhG:

siN ups man

SAN 11(INJtolk0 SA'sta IOWA F N ES

Zone A-Kay Miller Zone B-Rick Mejia Zone C-George Blue one D-Lee Stallings Z:ne E-Milt Hood Zone F-Pat Brown Zone G-Charles Williams PAPUA Zone H-Dick Peterson ZoneI-Karl Kramer PM MCA Zcle J-Chuck Manning

Source: Private Postsecondary Education Division, California State Department of Education. 1988.

46 14 lar meetings, its statement of religious purpose, an that offer programs in hypnosis, hypnotherapy, outline of the courses it offers for degrees or certifi- pastoral counseling, and religious education. cates, and an explanation of how these courses are Of the 87 institutions that have applied for exemp- part of its religious principles. He explains that tion of their certificates or degrees in recent years when it submits its application, it can consider its (not counting Feather River or Bernadean), the Di- programs and degrees to be exempt unless it hears vision has recognized 75 as exempt. Seven of the to the contrary. other 12 are not currently operating. But the fol- Feather River University claims in its catalog that lowing five continue to operate without written de- it is "registered with the California State Depart- termination of exemption, on the theory of auto- ment of Education as a degree-granting institution matic exemption: under California Education Code Section 94303(b)." Logos Bible College and Graduate School, San The Division's consultant has written Feather Riv- Diego; er's attorney that it should state only that it is an Mount Hermon Baptist Church, Santa Monica: exempt institution, since "an entity operating un- Samaritan College, Los Angeles; der the fact of this provision may not state or infer by any means whatsoever that there exists any San Diego Bible College and Seminary, San Diego; and recognition of the education or documents awarded Truth Bible College, Oakland. by the state or any agency or agent thereof" (Pri- vate Postsecondary Education Division, 1980) The And these exempted institutions are offering "arts," Division has not heard back from Feather River "education," and "counseling" degrees: and has sent its `.:a to the Department's Legal Of- fice for review, but in the meantime Feather River Alliance College and Seminary of the World continues to grant degrees and claim registration Missionary & Evangelistic Association, with the Department. Norwalk: Bachelor of Arts in Theology and Bachelor of Arts in Christian Education (not The Division tries to exempt the courses of any legi- Bachelor of Theology and Bachelor of Christian timate religious institution that limits its educa- Education); tional offerings "to instruction in the principles of Auburn Bible College, Auburn: Bachelor of Arts that church or denomination" (Education Code Sec- in Bible (not Bachelor of Bible); tion 94303(b), but it questions the claims of other Citadel Baptist Theological Seminary, institutions, such as those whose bylaws limit mem- Sacramento: Bachelor of Elementary bership in their church only to their board of direc- Education; tors, and those that appear to be liberal arts col- Concord Christian College, Concord: Bachelor of leges that simply don't want to bother with authori- Counseling/Psychology; and zation. For example, it tries to make sure that the Southern California Graduate School of Theology: titles of their degree are limited to theology or re- Master of Arts in Biblical Studies, (not Master ligion -- "Bachelor of Theology" rather than "Bache- of Biblical Studies). lor of Arts in Theology," since any "bachelor of arts" implies a general liberal arts education, with its emphasis on breadth of knowledge and develop- Accredited institutions 'oerating ment of wide-ranging theoretical and other concept- under Section 94310.1 ual skills.And it acknowledges an institution's exemption if its courses consist primarily' of reli- Accredited colleges and universities headquartered gious subjects such as "History of the Christian in California cause the least work for the Division Church" rather than standard history or sociology of any type of institution, despite the fact that a few or physical education offerings.The institutions periodically forget to send in their annual affidavits that present most problems are those that claim of accreditation -- the one dt,,y that the State re- their orientation is "metaphysics," that all human quires of them under Section 94310.1(a) of the Edu- knowledge is part of their religious principles, or cation Code.(Unlike other institutions, they are not required to contribute financially to the support

14:i 47 of the Division.) But since 1985, the Division's task in which the Western Association participated, as under Section 94310.1(b) to license accredited in- well as a separate State visit. stitutions that operate in California but are head- Fulfilling the Legislature's intent of coordinated re- quartered elsewhere has increased its workload view will require more flexibility in the future by greatly. the Division and accrediting agencies than they A Sacramento-based staff consultant has been been have demonstrated thus far. assigned the task of overseeing the licensure of these out-of-state institutions. He has led visiting Institutions approved under Section 94310.2 teams to five of the 12 in order to verify that they meet the standards developed as a result of Senate The importance of adequate implementation of Bill 1036 (1985, Montoya). He hopes to review the California's standards for approved colleges and remaining seven at k rate of two per month through universities has been highlighted by two recent April of this year, but he has been able to review developments mentioned earlier -- (1) the 1987 de- the first five at a rate of only one a month. He is al- cision of the State Personnel Board to accept de- so responsible for writing regulations based on grees from State-approved institutions as compar- these standards -- regulations that the law directed able to these from accredited institutions in allow- the Superintendent of Public Instruction to develop ing candidates to be eligible for State civil-service by March 1, 1987 -- but so far, they have not been examinations, and (2) the 1988 request of the Coun- completed. cil for Private Postsecondary Educational Insti- A second issue in implementing the law with re- tutions that the Superintendent of Public Instruc- spect to out-of-state accredited institutions con- tion apply for federal recognition of the State-ap- cerns redundancy:the Division's ability to meet proval process as comparable to accreditation, the Legislature's intention that licensure be "con- thereby opening access of these institutions to fed- ducted whenever possible in concert with the insti- eral and State student aid. tutional review conducted by the regional associa- In his review of the State-approval process for the tion." So far, for a variety of reasons this coordi- Council, Frank Dickey -- former executive of the nated approach has seldom been possible. Accord- National Commission on Accrediting -- stated that ing to the Division, no reaccreditation visits were representatives of three accredited institutions had scheduled during the period the new law was to be told him "that the major problems with the ap- implemented, and only one association agreed to proved school process are the 'suspicion that the vis- participate in a State-organized visit -- the rest re- iting committees are not sufficiently rigorous in fusing because they wished to remain outside of gov- their review,' and that the standards relative to ernment influence. As a result, institutions have faculty qualifications are not strict enough" (p. 5). had to prepare separate self-study reports and Dickey subsequently recommended that Superin- schedule separate visits: tendent Honig seek federal recognition of the ap- Kenneth Smith, provost of Antioch University, proval process, but because staff of the Postsecond- Los Angeles, states that the North Central Asso- ary Education Commission had also heard of simi- ciation visited Antioch's San Francisco and Los lar problems, the Commission has studied this proc- Angeles operations in January 1988, but the ess with particular attention. State scheduled its visit for this past November At the center of thf. problem is the requirement in and required extensive revision of Antioch's ex- Section 94310.2 of the Education Code that the cur- isting self-study report. riculum and academic achievement of &ate-ap- William Civitello, executive vice president of City proved institutions be comparable to those of ac- University in Santa Clara -- a branch of City credited institutions. To ensure this comparability, University headquartered in Bellevue, Washing- the law requires that the visiting committees to in- ton -- reports that his institution has had three stitutions applying for State approval "be composed visits by the Northwest Association of Schools of educators from both accredited and state ap- and Colleges in the last five years, including one proved institutions."

48 This requirement would seem to mean that the content of their courses or degree programs with members of these visiting committees should be those at accredited institutions -- California Coast educators employed by accredited and approved in- University, Center Graduate School, Center for stitutions, since they must be knowledgeable about Psychological Studies, International School of the curricula offered by accredited institutions and Theology, and Simon Greenleaf School of Law. the achievement expected of their graduates by But the visiting committees were forced to base these institutions.But some visiting committees their recommendations about the other 21 institu- have included voting members from other types of tions on other evidence than that provided by those institutions and agencies.Questioned about this institutions, since their evidence did not involve fact, staff of the Division report that they have in- comparisons with accredited institutions.In fact, terpreted this requirement of the law to mean that eight of the applicants -- California Christian Insti- committee members must only be graduates of ac- tute, California Graduate School, California Theo- credited institutions or have at one time taught in logical Seminary, Newport University, Professional This an accredited or State-approved institution. School of Psychology, Rosebridge Institute, West- staff interpretation of the law is not Division policy, ern Institute for Social Research, and World Uni- according to Barankin. versity of America (Ojai) -- appeared to offer no evi- Another problem exists with the "verifiable evidence other than the grades students received at dence" that institutions provide these visiting com- the institution or the type of projects they committees about their graduates' academic achieve- pleted. The committee that visited one of them -on- ment compared to that required of graduates of cluded that it did not offer educational services c, m- other recognized accredited institutions. The Dil. parable in scope and sequence to minimum stan- sion has revised its application form to collect this dards of comparable degree programs in accredited information, and it has held workshops with insti- institutions -- and yet following receipt of more fi- tutional administrators to ensure that they under- nancial information and revision of a degree pro- stand the new form, but institutional response has gram into a certificate program, the Division ap- been spotty. Because of the importance of this evi- proved it on behalf of the Superintendent. dence in ensuring the comparability of approved Alvin Ross, the president of Ryokan College and re- and accredited institutions, the Commission has cent executive director of the California Association reviewed the applications of the 29 approved insti- of State Approved Colleges and Universities, has tutions on file at the Sacramento offices of the Di- said: vision. Display 10 on page 50 indicates the type of data that the staff found in those forms. Those of us who are operating degree-granting institutions and who consider ourselves seri- Of the 29 institutions, only a few appeared to sub- ous educators operating legitimate learning mit the type of data required by the law. As a re- centers are constantly having to fight the per- sult, the visiting committees had to rely on other ception that we are dip( ma mills because we evidence gathered during their visits in order to ap- are non-accredited. The reason is that there prove the institution as comparable. has not been a history of good enforcement Two of the 29 institutions provided survey evi- coming out of a Department that is under- dence comparing their graduates with those of funded to clear out the diploma mills, so we accredited institutions -- the New College for Ad- are all tarred with the same brush. As a re- vai.ced Christian Studies (Berkeley), and the Hu- sult, public institutions and accredited inde- man Relations Institute (Santa Barbara); pendent institutions seldom accept our degrees and credits. One -- the California Institute for Clinical Social Work (Berkeley) -- had professors at accredited Ross' frustration can be explained in large part by institutions review students' dissertations and the procedures followed by the Division in imple- approve them as meeting the research standards menting Section 94310 2 of the Education Code. of other recognized academic institutions; Besides those questionable procedures noted above, it has approved some institutions without making And five reported tit they had compared the sure that they meet its minimum standards of au-

49 1 4 5 DISPLAY 10 Primary Eviaence of Comparability with Accredited Institutions Submitted to the Private Postsecondary Education Division by 29 Institutions Applying for Institutional Approval or Reapproval

Type of Evidence Submitted Number Comparison of the institution's courses with those of accredited institutions. 5 Surveys of the job placement of the institution's graduates. 4 Percentage of graduates who pass professional licensure examinations. 3 Surveys of the satisfaction of the institution's graduates with their training or degree. 3 Comparative surveys of the institution's graduates and those of accredited institutions. 2

Review of student's work by professors at accredited institutions and other professionals. 1

Award of credit by accredited universities to graduates of the institution. 1

Subsequent satisfactory grade-point-averages of students who transfer to accredited institutions. 1

Unclear or unknown evidence. 1 No evidence submitted. 8 Total 29

Source: California Postsecondary Education Commission staff analysis.

thorization, such as offering instruction or having orized colleges and universities enacted in 1984 be- equitable tuition refund policies.Its visits are cause of inconsistencies among its staff regarding mostly two days in length. Its visiting team mem- the importance of these standards. Some consul- bers receive no training before their visit.TiieFe tants have sought to implement all of them faith- teams are small -- for example, a six-member tea..1 fully, while others have neglected some -- particu- to review a university that offers bachelor's and ad- larly the most important that separa out creden- vanced degrees in business administration, educa- tialing enterprises from actual educational institution, engineering, human behavior, law, psycholo- tions, such as Developmental Guidelines 12B and gy, and religion. And the Superintendent has yet to 12D, which require that "25 percent of each stu- adopt enforceable regulations for their use. dent's total degree program shall be instruction exclusively and directly provided from the institu- California's Department of Education has support- tion's curriculum by the institution's faculty," and ed unsuccessful legislation that would extend the The institution shall detail explicit rationale for approval period of institutions from three to five the awarding of credit and a systematic and rigor- years -- most recently in Assembly Bill 384 (1988, ous method for evaluating it" (Private Postsecond- Peace). The Department may seek similar legis- ary Education Division, March 1985, p. 8).These lation during this biennium. Given the weaknesses standards have been stated in Title 5 of the Cali- of its approval process, such an extension seems un- fornia Administrative Code as follows. warranted. An institution shall not grant diplomas or degrees solely on the basis of education taken at, Colleges and universities or credit transferred from, another institution 'uthorized under Section 94310.3 or institutions, or solely on noninstructional learning experiences.Diplomas and degrees The Division has had a major problem in trying to may be granted on the basis of a combination implement the important new standards for auth- of instructional and noninstructional learning

50 experiences for which the institution details reviewed 54 of those that sought reauthorization. explicit rationale for the awarding of credit According to Barankin, of the 54: and systematic and vigorous methods for eval- Forty-two have been granted authorization; uating it (Section 18803(b). Five were denied authorization, of which two Why some staff members have seemingly ignored were referred to the Attorney General and two to these requirements is unknown. They may not have the legal office of the Department, and one 's ap- been aware that at !east two nationally accepted pealing its denial to the Council fo,- Private Post- means of systematic evaluation of prior learning secondary Educational Institutions. are available to institutions -- materials from the Council for the Advancement of Experiential Learn- Seven are still in process, either because the Di- ing, and the College-Level Examination Program. vision has not yet made a decision or the institu- Whatever the reason, at least until recently some tion is seeking to take corrective action in re- have overlooked the requirements. sponse to the visiting team's report -- a process that may involve many months, including a re- For instance, one large institution was unable to visit before the team submits its final recommen- provide the Division's staff consultant and the other dation to the Superintendent. members of its visiting team with any records of faculty members' teaching assignments or of stu- An additional 13 have not yet been reviewed under dents assigned to instructors, any stated policies re- the provisions of Section 94310.3, 12 of them be- garding the award of transfer credits, any evidence cause they are changing their classification to out- of relation between previous work and the waiver of of-state accredited under Section 94310.1(b) or to a requirements, or any indication of systematic aca- school of theology under Section 94310.4, and one demic record-keeping in the form of transcripts. because it has changed its name and location. One of the visitors-- the dean of students and assis- The major unfinished business regareing the new tant provost of a Los Angeles institution noted its authorization standards is final Office of Adminis- lack of traditional transcripts: trative Law approval of the enforceable regulations 's method of preparing transcripts -- hand- that the Division is supposed to use in authorizing written records previous to graduation, official institutions to operate. The Division held a hearin g transcript prepared after graduation -- seems on a second draft of these regulations this past De- to defeat the whole point of the transcript, i.e., cember, and the Division expects the Office to ap- an official record of ever., thing the student prove them soon. The Commission hopes that insti- does while enrolled at an institution, while it tutions denied reauthorization will not be able to is happening. The implication seems to be challenge successfully their denial on the basis -..si that no transcript would be prepared for stu- the lack of these regulations. dents who do not manage to graduate (Gold- man, 1986, p. 2). Schools of theology authorized The Division's staff consultant agreed with the oth- under Section 94310.4 er members of the visiting team that the institution met only half of the 111 standards required of it, Apart from the issues of confusion, Inadequacy, and yet he voted to reauthorize the institution -- as he redundancy that this section of the law causes, the did similar institutions throughout his tenure in major issue concerning its implementation is wheth- the Division until his recent retirement. er the Division limits authorization to institutions that award degrees "primarily in theology and oth- The Division's second problem with the new autho- er areas of religious study," as required in thestat- rization standards has been meeting the law's dead- uteor restrict their education "primarily to courses line of June 1987 for reviewing all previously auth- or curriculum in theology or ministry," as specified orized institutions. It was unable to meet that dead- in Section 18800 (g) of Title 5 of the California Ad- line, in part because of delays occasioned by o ministrative Code. Clearly, most of the 12 that the need to involve staff of the Postsecondary Educa- Division ha.: authorized thus far do so, but one of tion Commission Pilly in the process; but it has now them -- Ambassador College in Pasadena -- seems

51 14:., less a school of theology than a Christian liberal other, and meanwhile offering degrees all the arts college. Ambassador awards "associate of arts while." in theology" and "associate of science in theology" This problem seems to the Commission particularly degrees, rather than "associates of theology."It severe because the Division has been operating on grants a "bachelor of arts in theology" rather than a "standards" and "guidelines" that have not been "bachelor of theology." It offers minors in business approved by the Office of Administrative Law and administration, elementary education, English, are therefore likely to be ruled unenforceable. Sec- French, German, home economics, mass communi- tion 11347.5 of California's Government Code pro- cation, modern Hebrew, and Spanish. And in all of vides that no State agency can enforce any "guide- these programs, its arts and science courses equal if line" which is used by the agency as a regulation not surpass in number those in theology. unless that agency promulgates that guideline as a No one familiar with Ambassador would question regulation under Section 11342 of the Code (Hol- its commitment to the liberal arts and to a well- land, 1986, p. 2). rounded, balanced education. No one could ques- As noted earlier, the wheels of justice regarding the tion its aim "to provide job entry training in se- Private Postsecondary Education Act grind exceed- lected vocational and technical areas" such as bus- ingly slow. By the time a staff consultant can doc- iness and computers and to provide foundational ument to the satisfaction of the Legal Office of the coursework for further education in professional DepRrtment or the Office of the Attorney General and technical disciplines" as well as to provide pas- that an institution is operating illegally or has not tors and a God-cal: Id ministry for the Worldwide accomplished the corrective measures needed for Church of God. But questions may be raised about reauthorization, and the case then comes to a hear- its authorization as a "school of theology" rather ing, the consultant may have retired or died. More than "college" in light of its degree programs -- even often, consultants lack time to gather enough docu- if not in light of its name of "Ambassador College" mentation to permit the Legal Office and the At- rather than "Ambassador School of Theology." torney General to make a strong enough case with As other colleges and universities seek to shift their which to proceed. classification from college or university to school of According to the Office of the Attorney General, the theology, and thereby avoid meeting the education- Division's past procedures in handling renewals of al standards of State-authorized colleges and uni- authorization and approval may allow successful versities, the Commission believes that the Divi- challenges to these denials. Until recently, the Di- sion should ensure that they award degree, "pri- vision allowed institutions that it judged were not marily in theology and other areas of religious in compliance with the law to continue to operate study." without renewed licenses.Yet by treating noncomplying institutions like licensees and allowing them co continue to operate without a license rather than renewing their license temporarily with quali- Enforcement of the law fication, it has opened itself to charges that it is allowing unlicensed operation by some institutions "There's so much profit to be made from selling de. while seeking to remove the licenses of others. grees that the risks are worth taking," says a staff Unfortunately, the courts will generally not enjoin member of the Division who has run one of its major the operation of unlicensed institutions if their op- regulatory programs. And a member of the Council erators can show that an agency like the Division for Private Postsecondary Educational Institutions has routinely permitted unlicensed operation by agrees:"If an institution is engaged in criminal other institutions. To prevent this possibility, the activity, the State can shut it down -- snap!-- like Division should have renewed institutions' authori- that. But if it's not living up to what it promises, it zation by attaching some such statement as this: is usually very profitable and can hire attorneys to keep it open for years through one appeal after an- Renewal of this license does not constitute a waiver of any deficiencies of which the licen-

...1..../ see has received notice and does not constitute Conclusion a finding that the licensee is currently in compliance with licensing requirements. Existing The State of California does not pay to implement loncompliance may lead to license revocation the Private Postsecondary Education Act of 1977, action. which accounts in part for its inadequate implementation. Such conditional renewals prevent the Division from The State expects private institutions to fund im- allowing unlicensed institutions to operate and plementation at rates far higher than those im- thereby preserve its power to insist that any insti- posed by other states, without weighing the cost of tution that is unlicensed under other circumstances this policy in weakened regulation. must cease operation immediately. These renewals also prevent an institution from claiming that it It expects staff in the Private Postsecondary Edu- was in full compliance with the Division's regula- cat.on Division to regulate these institutions while tions at the time of renewal. In addition, they dem- serving as consultants to them. onstrate that the Division is complying with the It unrealistically expects leadership from the Coun- Education Code, since the Division renews such a cil for Private Postsecondary Educational Institu- license only to allow a p. per determination of the tions and its Superintendents of Public Instruction licensee's status. in solving its self-imposed difficulties. The Division has assured the Commission that it is In addition it has permitted confusion over the com- now reauthorizing and r.approving institutions on parability of accredited and State-approved institu- this basis. Nonetheless, ...e integrity of California's tions by inadequate review of approved institutions. degrees will be subject to question for years to come if the Division's past renewal methods prevent suc- As a consequence, the State has compounded the cessful enforcement of present denials. weaknesses of the act itself and raised questions about the meaning of California's academic degrees that may not be laid to rest until the next century.

lo_ 53 BEST COPY AVAILABLE

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"How to Earn an American University box. Both stopped operating there several years Degree Without Ever Going to America" ago. Despite its membership in the supposed Asso- The advertisements reproduced on the opposite ciation, Pacific Southern is not "approved" by the page from Summer 1988 issues of the Hong Kong Superintendent of Public Instruction. Instead it Economic Journal depict Pacific Southern Univer- is merely authorized to grant degrees. sity -- a California university that awards bachelor's and masters' degrees in business administra- These facts might raise some question about the tion and engineering.Pacific Southern conducts a meaning of a Pacific Southern degree, if a prospec- worldwide program of independent directed study. tive student were aware of them. Its twelve-month Hong Kong program that leads to They might also raise questions about how Pacific the Bachelor of Business Administration is "de- Southern could operate 30 different degree pro- signed specifically to serve the unique needs of bus- grams out of its one suite of offices -- programs as iness executives in Hong Kong," who pay fees of diverse as telecommunications management, eco- approximately $3,800.Its eighteen-month Master nomics, computer science, school administration, of Business Administration program costs Hong general engineering, literature, health care facility Kong executives about $5,125. management, journalism and mass communica- Pacific Southern has been authorized throughout tions, occupational safety and health, psychology, the 1980s to award degrees by California's Superin- public administration, and business administration tendent of Public Instruction on the assurance that with emphases in accounting, marketing, finance, its statements about itself are accurate. and industrial management. Pacific Southern terms the five-story building These and other facts also raise questions about the pictured in its advertisements the "Home of Pac- meaning of California's authorization process. ific Southern University." The University at one If you call the Private Postsecondary Education time rented a suite in that building. For the past Division to ask about Pacific Southern's status, three years, however, it has operated out of three you will be told that Pacific Southern is autho- rooms on the second floor of a three-story build- rized. ing at 9581 West Pico Boulevard. But if you study the Division's list of authoriza- Pacific Southern implies in its advertisements tion actions, you will find that Pacific Southern's and its admission application booklet, Off Cam- authorization :ias been automatically termi- pus Alternatives to Higher Education, that it is nated. accredited. Under the heading "Authorization and Accreditation" ( Display 12, p. 56), it states The Division's file on Pacific Southern falls to that it is "recognized as a legitimate degree clarify this discrepancy.It contains a copy of a granting institution by the National Association November 9, 1987, letter informing the president of State Approved Colleges and Universities" of Pacific Southern that the institution's auth- and "The American Council fur University Plan- orization had been terminated.It also shows ning and Academic Excellence." Neither of these that four weeks later, on December 4, 198", Pa- organizations, if they still exist, was ever a recog- cific Southern's president and attorney met with nized accrediting agency. Both were created by the director and a staff member of the Division M. de la Croix de Lafaye e, who operated the As- and the legislative representative of the Califor- sociation out of the former Icelandic embassy in nia Association of Private Postsecondary Schools Washington and the Council out of a post office to discuss its continued authorization.It also

15 55 DISPLAY 12 Statement in Pacific Southern University Booklet, 'Off Campus Alternatives to Higher Education"

Authorization And Accreditation

Pacific Southern University is authorized by appropriate satisfactory completion of the the California State Department of Education prescnbed coursework. thesis and dissertation under Section 94310(c) of the Educational Code requirements. to enroll students and issue degrees after the

The University is also recognized as a legitimate degree granting institution by:

The National Association of State Approved Colleges and Universities (NASACU) 3843 Massachusetts Avenue, N.W. Washington. D.0 20016 The American Council for University Planning and Academic Excellence (ACUPAE) P.O. Box 9478 Washington. D.0 20016

The address for verification of authorization by the State of California is:

Office of Private Postsecondary Education State of California Department of Education 721 Capitol Mall Sacramento, California 95814 (916) 445-3427 Transfer Credit Polio"

Transfer credit to other university and Upper Iowa University, Bethany College, The college programs by graduates of P.S.U. is at the Regent's Program of the State University of discretion of the receiving college or university. New York, Armstrong College and many others. No general statement can be made for any A complete listing is given in the Directory of specific institution, however, there are several United States Traditional and Alternative colleges and universities who have indicated to Colleges and Universities published by NASACU. NASACU that they are willing to evaluate credits 3843 Massachusetts Avenue. N.W., Washington. earned through mdependent study. Among D.0 20016. U.S.A. Copies of the directory are those schools are Michigan State University, available from the association for a nominal tee.

Source: Pacific Southern University, p. 10.

indicates that 13 months later -- on January 12, In short, four years after Pacific Southern applied 1989 -- the staff of the Division telephoned Pa- for reauthorization, it continues to award degrees, cific Southern's president to ask what he thought while the Division has yet to decide what to do its authorization status was and learned that he about it. assumed "everything was okay" because he had The case of Pacific Southern epitomizes California's heard nothing further from the Division since problem in ensuring the integrity of its degrees and that meeting. The file ends with a January 23, diplomas 1989, staff recommendation that the Division "render a decision about the school's status and Why doesn't California ensure honesty in college implement that decision." and university advertising, catalogs, and degrees?

56 1 5.; I

And why doesn't the Private Postsecondary Educa- credit-hour accumulation. Its structural innovation Division enforce Section 94312(b) of the Educa- tions -- including the Regents External Degree Pro- tion Code that prohibits institutions and their grams and Empire State College in New York, agents from utilizing "advertising of any type that Thomas A. Edison College in New Jersey, Minne- is erroneous or misleading, either by actual state- sota Metropolitan University, the Consortium of ment, omission, or intimation"? the California State University, and the University Without Walls of the Union for Experimenting Uni- Previous pages have offered some clues, including versities and Colleges -- created new means for weaknesses in the law itself, apparent lack of con- Americans to demonstrate their skills and receive cern of State cfficials, lack of leadership within the academic credit for these skills, but they al5o com- private postsecondary education industry, limited plicated the task of detecting educational fraud. funds, lack of staff, and low priorities of the agencies involved. As long as an academic degree signified a certain amount of chair-setting or credit hours as well as a The most immediate and critical reason, however, certain level of competence, academic fraud was may be simple confusion by both State officials and relatively easy to identify.Everyone recognized educators themselves over educational standards that truly "earned" degrees were awarded only af- and educational integrity. This confusion seems to ter a period of resident study.In contrast to hon- stem from disagreement over the meaning of two orary degrees and to purchased degrees, "real" de- words that have been at the center of California's grees required classroom attendance. Thus the fed- regulatory problems for the past two decades -- the eral government was able to warn foreign nationals phrase amtraditional education. Educators in none about degree mills by proclaiming that "in the of the other 49 states embraced the idea of nontradi- United States no reputable institution of higher ed- tional education during the 1970s more enthusi- ucation confers degrees solely on the basis of corres- astically than those in California, and no state has pondence study" (United States Office of Education suffered more problems as a result. 1971). But as the United States accepted the nontraditional idea that academic degrees could signify Impact of nontraditional education competence regardless of any period of academic in- stitutionalization -- an idea that stemmed original- The nontraditional movement of the 1970s in ly from the creation in 1836 of the University of American higher education -- epitomized by the London as the world's first external degree-grant- spread of "external degrees" -- sought to make col- ing institution -- the traditional distinction be- leges and universities more responsive to the needs tween "legitimate and reputable" degrees on the of adult learners.1 ccording to a 1975 report by the one hand and "fraudulent and meaningless" de- Commission on Non-Traditional Study, which was grees on the other became murky, and the oppor- chaired by Samuel Gould, chancellor emeritus of tunity for chicanery increased.If one degree as- the State University of New York, the movement sured its holder as many salary increments as another, why not buy the least expensive? puts the student first and the institution second, concentrates more ,the former's need The Commission on Non-Traditional Study itself than the latter's convemince, encourages di- warned in 1975 that although the nontraditional versity to individual opportunity rather than approach "can stimulate exciting and high-quality uniform prescription, and deemphasizes time, educati( nal progress: it can also, unless great care space, and even course requirements in favor is taken to protect the freedom it offers, be the un- of competence and, where applicable, perform- witting means to a lessening of academic rigor and ance (1975, p. xv). even to charlatanism" (p. xv). And seven years ago. the California Postsecondary Education Commis- That orientation stimulated a much-needed reas- sion stated (January 1981,p. 8): sessment of academic convention and tradition, particularly those of class-hour chair-sitting and The practice of assessing an individual's work and non-work experiences for learning and

15, 57 granting college credit toward a degree, a But it could have avoided the problem even more practice found at many (if not most very had some of the staff of the Private Postsecondary reputable universities, is nevertheless quite Education Division not confused nontraditional easily abused.Inappropriately followed and means and ends in education. Rather than encour- used to excess, the practice has become the aging innovative means to achieve traditional basis upon which degree mills have been able educational goals, they have tolerated lack of to operate with a veneer of legitimacy. achievement in the name of innovation and experimentation. To ensure the integrity of their degrees, the pio- neering nontraditional institutions relied on tradi- One of the Division's staff consultants has tried to tional academic standards. They convened groups help other members of the staff prepare for visits to of professors from other institutions to define the institutions applying for State approval by explain- content of the new degrees, write the examinations ing that "PPED the Private Postsecondary Educa- that were to certify competence, and often read the tion Division uses two bipolar terms to describe the completed examinations to ensure an outside check range of possible structures which may result from on competence. That is, they separated the admin- particular philosophical positions -- traditional and istration of the institution from academic decisions nontraditional." He explains the differences as fol- about individual students, and they sought to avoid lows : basing institutional financing on these academic Q:What is considered a typical traditional decisions. Many other institutions have done so structure? since.In California, for instance, some of them have invited professors from established universi- A: Those components which the general public ties to serve as external examiners in assessing the typically associate with conservative insti- achievement of their graduates, and the Senior tutions: a campus-like setting, well defined Commission of WASC has accredited two of them -- and generally practiced curricula, face-to- Saybrook Institute in San Francisco and The Field- face instruction, textbooks, examinations, ing Institute in Santa Barbara. In contrast, some and the like. other institutions make money by lacking academic Q:What is considered a nontraditional insti- requirements and the speed by which they grant tution? degrees. For example, one State-authorized institution several years ago was paying its faculty mem- A: Those components which significantly de- bers a bounty of $200 for every student they re- part from what the general public associate cruited -- but then only $400 to get the student with conservative institutions -- typically through the "program," regardless of how much off-campus programs, student-designed cur- time the faculty member took to do so. ricula, with little or no formal face-to-face instruction, student selected materials, no California might have avoided some of this problem examination, considerable recognition of had it followed the lead of New York State with its life experience and the like. Regents External Degree Program or taken the advice of the California Le,rislature's 1970-1973 Q: Why should PPED be concerned with the Joint Committee on the Master Plan for Higher Ed- traditional and nontraditional nature of ucation, which proposed creation of a "fourth" pa- institutions? lic segment of higher education "to coordinate the A: Traditional institutions typically meet the efforts of the segments in extended learning and to superintendent's criteria in noncontrover- provide programs under its own auspices when sial terms and approval status is therefore there are needs the segments are not meeting" easily explainableNontraditional institu- (1973, p. 57). tions are not easily understood and are California could have avoided the problem still fur- therefore difficuit to explain to inquirers ther by strengthening its minimum standards for (Ka ear, 1987, p. 3-4). authorizing degree-granting institutions before The major weakness of these statements is their 1984. claim that traditional institutions use "examina-

58 tions" while nontraditional institutions do nit. To grees. One of California's largest non-accredited the contrary, for 150 years nontraditional educa- universities applied to the State of Minnesota for tion has been founded on the need for careful, rig- permission to offer its external degree program to orous, and comprehensive examinations. Such as- Minnesota residents. It sent Minnesota officials the sessments have been at the very core of every ade- project reports by five of its graduates as part of its quate nontraditional institution since the founding application. In turn, those officials asked professors of the University of London. Indeed, examinations at midwestern institutions outside of Minnesota to are an even more essential characteristic of a non- evaluate the materials. The responses were uni- traditional college or university than a convention- formly negative: al one, since nontraditional institutions have so few other educational characteristics to encourage the William K. LeBold. Director. Engineering Education achievement ( f their students. Research Studies, Department of Freshman Engi- neering, Purdue University: Although Mr. may It was probably inevitable that as partof the non- be quite competent as a tect.nician or even as a de- traditional movement some edwiators in California sign engineer, it is inconceivable that on the basis would toss the notion of examinations out with the of the Independent Study project he could be award- bathwater of tradition. But it was particularly un- ed the BS degree in electrical engineering. To do so fortunate that some of the staff of the Division did makes a mockery of standards in engineering and so. Their assumption that State- approved institu- higher education. tions in California can operate without assessing the achievement or competence of their students ex- Irving Spergel, Professor. School of Social Services plains as much as anything why the integrity of so Administration. University of Chicago: My com- many California degrees is suipect. ments are directed primarily to the student's inde- The primary theoretician of nontraditional enuca- pendent study project or "thesis submitted in ful- tion in the United States -- Cyril 0. Houle, profes- fillment of the requirements for the Degree of Mas- sor emeritus of the University of Chicago and auth- ters in Marriage and Family Counseling". ... In or of The External Degree (1973) -- has told the my view the student's independent study project Commission: does not meet a level and breadth appropriate to the master of arts degree.It also does not meet ob- In the the late 1960s and 1970s, American ed- jectives established 'oy University itself:On ucators created new and challenging forms the Master's Level, the degree is awarded on the ba- of teaching and evaluation of accomplishment sis of the student's showing that he or she is able to to overcome the limiting effects of established apply knowledge of the field to real life situations. university patterns that denied the benefits of There is emphasis on depth of knowledge in a spe- higher education to many talented people. For cific aspect of the field or fields of study, as applied want of a better term, these endeavors were to some aspect of the world around us." The stu- loosely called "nontraditional" education. To- dent's project is too thin and inadequately devel- day I would hope that the term is not a code- oped to meet these specific University or more gen- word signifying a cheap or spuriously conven- eral academic standards for a Master's degree. ient way of getting a diploma or a degree without providing the education that such a cre- Ralph Westfall. Dean. College of Business Adminis- dential should signify. Such a usage would be tration, University of Illinois at Chicago Circle. You directly contrary to the aspirations of the pi- asked that I evaluate the work submitted for com- oneers of the 1960s and 1970s. pletion of a Doctor of Philosophy degree in Business

Administration by Ms. . . The Independent Study project is a report which was initially submitted by the student to a financial institution an- Consequences of inaction alyzing ,he economic feasibility of a particular in- termediate care nursing home which was seeking a The unfortunate result of California's laxity is evi- loan from the financial institution. The report is 15 dent in the reaction of other institutions to its de- pages in length and contains a considerable amount

10 59 r

of numerical data on costs and revenues that might ally required for the award of a master's degreein be expected with the proposed nursing home. This health services administration. On the basis of the is probably similar to thousands of like reports materials you sent me . .. , I could not make such an prepared analyzing loan applications throughout evaluation; the work by Mr. ,while it has some the country. This is not a Ph.D. thesis. There is no value, is in my opinion (1) strictly undergraduate in conceptual problem involved, the project makes no nature, (2) limited large.; to epidemiological, addition to the field of knowledge, and the level of historical, and administrative factors, (3) lacks the analysis is elementary. .. .There is no way that I content and quality I would regard as minimalfor could consider this project to represent a Ph.D. graduate work beyond the baccalaureate level, and thesis or the overall work that the student has ap- (4) does not appear to me to constitute an equiva- parently done could represent a Ph.D. program. To lence for any higher education degree or certificate. give a Ph.D. degree on the basis of the work pre- .. . In my opinion, to recognize officially a degree sented here would be an extreme misuse of, that such as that under discussion here is to make a academic degree designation. mockery of over a century of progress in developing specialized programs of academic and professional Hari H. Young, Professor, Sc hool of Professional Psy- graduate study. To certify such degrees to the pub- chology, University of Denver: I am not sure wheth- lic as valid evidence of academic or professional pre- er I am to evaluate the Ph.D. program offering in paration is fraudulent and a miscarriage of public psychology by University or the specific aa- service in higher education. Of equal concern to me terials by this particular student. However, I will is the fact that individuals such as Mr. are report to you at the outset that neither is adequate used in what seems to me to be a blatant money- according to commonly accepted standards.. .. The making scheme playing upon legitimate ambitions document presented in this case is a grant ap- of individuals and upon appropriate expectations by plication. The project itself is due to be completed the public. this month and we have no report of the outcome. The project itself purports to show that those who As a result of these evaluations, Minnesota hasde- receive instruction and training in helping battered nied permission for this California State-approved wives will do so more effectively than those who do university to enroll Minnesota residents.Mean- not receive such training and instruction. Oise can while the university claims in its brochures that hardly consider this study, while obviously timely "scholars around the country have consistently and of ihterest, an original contribution to knowl- rated the quality of work done by [our] students as edge -- the original intent of the doctoral disserta- equal to or better than that produced by students tion.... In conclusion, there is no doubt based only attending traditional colleges and universities." on the materials available to me that this is an un- acceptable level of quality of work normally ex- Without improving the implementation of itslaws pected for the Ph.D. governing private postsecondary education, Cali- fornia will retain its reputation throughout the John C. Buhner, Professor of Health Administration country and the world for toleratingquestionable and Political Science, Indiana University Medical credits and discount diplomas, and it will continue Center: I understand that you would like an evalu- to be unable to ensure the integrity of itsdegrees ation as to whether the work submitted by Mr. and the protection of its citizens who depend on that constitutes a reasonable equivalent to that gener- integrity.

60 1. U"' (,) Private Postsecondary Education Appendix A Act of 1977, as Amended

NOTE: The following text is reproduced from West's jectives can best be achieved by protecting the in- Annotated California Codes, Education Code Sec- tegrity of degrees and diplomas issued by such in- tions 87000 to End, pp. 602-63'7. and Volume 28B, stitutions. 1989 Cumulative Pocket Part. St Paul West Pub- lishing Co.. 1989, pp. 166-198 Chapter 3 is a portion of Part 59 of Division 10 of § 94302 Definitions the Code's Title 3 on Postsecondary Education. As used in this chapter, unless the context requires otherwise: CHAPTER 3 (a) "Agency" means a business entity established PRIVATE POSTSECONDARY INSTITUTIONS for the purpose of recruiting students for enrollment in a private postsecondary school asdefined ARTICLE 1 in this chapter, and any other business entity engaged in that activity with the exception of the ed- GENERAL PROVISIONS ucational institution itself. (b) "Agency authorization" means a written document issued by the Superintendent ofPublic In- $ 94300 Short title struction authorizing a business entity to engage in the recruitment of students for enrollment in pri This chapter shall be known and may be cited as vate postsecondary institutions authorized or ap- the "Private Postsecondary Education Act of 1977." proved under this chapter. (c) "Agent" means any person who, at a place away from the principal school premises or site of instruc- .194301 Legislative intent tion, whose primary task is to serve as a paid re- cruiter, while owning an interest in, employed by, It is the intent of this Legislature to encourage or representing for remuneration or otherconsider- privately supported education and protect the ination a private postsecondary educational institu- tegrity of degrees and diplomas conferred by pri- tion located within or without this state, offers or vately supported as well as publicly supported edu- attempts to secure enrollment of any person within cational institutions this state or accepts application fees or admissions It is also the intent of the Legislature to encourage fees for education in an institution. Administrators the recognition by tax-supported institutions of and faculty who make informational public ap- work completed and degrees and diplomas issued pearances are exempted from this definition. by privately supported institutions, to the end that (d) "Agent's permit" means a nontransferable writ- students may have equal opportunities for equal ten document issued to an agent pursuant to the accomplishment and ability. provisions of this chapter by the Superintendent of In the present period, the need for educational ser- Public Instruction. vices is so great that it cannot be met by tax-sup- (e)"Approval to operate" means that the institu- ported institutions alone. The contribution of pri- tion so approved has met recognized and accepted vately supported educational institutions to the standards as determined by the Superintendent of preservation of our liberties is essential. These ob- Public Instruction in carrying out the provisions of

15.) 61 this chapter to operate a postsecondary educational ucation or who are beyond the age of compulsory institution in this state. high school attendance. Auxiliary organizations of the California State University and Colleges are (0 "Authorization to operate" means that the insti- not included within this division and are not gov- tution so authorized has been granted permission erned by this article. by the Superintendent of Public Instruction to operate as a postsecondary educational institution. (o)"Vocational objective" means an objective which is ordinarily attained upon completion of a (g) "Council" means the Council for Private Post- course which qualifies the person or leads to em- secondary Educational Insc.cutions established ployment in a recognized occupation listed in the pursuant to Section 94304. latest "Dictionary of Occupational Titles," issued (h) "Degree" means any "academic degree" or "hon- by the United States Department of Labor, or de- orary degree" or title of any designation, mark, ap- clared by that department to be eligible for such pellation, series of letters or words such as, but not listing, or leading to an employable objective deter- limited to, associate, bachelor, master, doctor, or mined by the council. fellow which signifies, purports, ar is generally (p)"Professional objective" means an objective taken to signify satisfactory completio of the re- which ordinarily is attained upon the completion of quirements of an academic, educational, technolog- a curriculum or program of studies leading to a rec- ical, or professional program of study beyond the ognized profession or semiprofession. secondary school level or is an honorary title conferred for recognition of some meritorious achieve- (q)"Educational objective" means an objective ment. which ordinarily is attained upon the completion of a program consisting of any curriculum, or any ( i) "Diploma" means any "diploma," "certificate," combination of unit courses or subjects offered by "transcript," "document," or other writing in any an educational institution which normally leads to language other than a degree. earning a college degree. (j) "Education" or "educational services" includes, (r;"Technological objective" means one which is but is not limited to, any class, course, or program ordinarily attained upon completion of a curricu- of training, instruction, or study. lum or program of studies which emphasizes the (k) "Superintendent" refers to the Superintendent application of principles to the solution of practical of Public Instruction. problems rather than the theoretical development of those principles. (1)"To offer" includes, in addition to its usual meanings, advertising, publicizing, soliciting, or (s) "Accredited" means that an institution has been encouraging any person, directly or indirectly, in recognized or approved as meeting the standards any form, to perform the act described. established by an accrediting agency recognized by (m) "To operate" an educational institution, or like the federal Department of Education or the Com- term, means to establish, keep, or maintain any fa- mittee of Bar Examiners for the State of California. cility or location in this state where, from, or It shall not include those institutions which have through which educational services are offered or applied for accreditation and are candidates for ac- educational degrees or diplomas are offered or creditation or have provisional accreditation. granted. (t)"Occupational skill, knowledge, or ability" (n) "Postsecondary educational institution" or "in- means any fundamental or advanced competency stitution" includes, but is not limited to, an aca- which increases an individual's employability or demic, vocational, technical, business, professional, potential, effectiveness, or expertise :n a vocation home study school, college, or university, or other or profession, including, but not limited to, self-em- organization (comprised of a person, firm, associa- ployment, business, or financial ventures. tion, partnership, or corporation) which offers edu- (u) "Instruction" includes any specific, formal ar- cational degrees or diplomas, or offers instruction rangement by an institution for its enrollees to par- or educational services primarily to persons who ticipate in learning experiences wherein the insti- have completed or terminated their secondary ed- tution's faculty or contracted instructors present a

62 planned curriculum appropriate to the enrollee's 94332; paragraph 1 of subdivision (a) and su6-1ivi- educational program. sions (b) to (f), inclusive of Section 94333; Sections 94335 to 94339, inclusive, 94342: and 94343, insti- (v) "Certificate of authorization for service" means tutions or persons approved by the Federal Avia- a written, nontransferable document issued by the tion Administration, or its successor agency, offer- superintendent authorizing an individual to be an ing flight education and instruction. instructor or administrator in any private postsecondary institution in California which is approved under subdivision (d) of Section 94311. § 94304 Council for private postsecondary educational institutions

§ 94303 Exemption from (a) There is in the State Department of Education a provisions of chapter Council for Private Postsecondary Educational In stitutions consisting of 15 members, selected as fol- The following education and educational institu- lows: tions, and these only, are exempted from the provisions of this chapter: (1) The superintendent or his or her designee shall be a member, and the superintendent shall appoint (a) Education solely avocational or recreational in four members. Two shall be members of the gener- nature, and institutions offering this education ex- al public, one with a strong interest in developing clusively. private postsecondary education, and one represen- (b) A nonprofit institution owned, controlled, and tative of business that employs persons in positions operated and maintained by a bona fide church or requiring vocational or technical education. Two religious denomination if the education is limited shall be administrative heads of institutions, one to instructions in the principles of that church or representing a nonaccredited degree granting denomination, or to courses offered pursuant to Sec- school operating pursuant to subdivision (2) or (3) tion 2'789 of the Business and Professions Code,* of Section 94310 and one representing a nonaccred- and the diploma or degree is limited to evidence of ited, non-degree granting school operating pursu- completion of that education, and the meritorious ant to subdivision (d) of Section 94311. recognition upon which any honorary degree is con- (2) The Senate Rules Committee shall appoint five ferred is limited to the principles of that church or members. Two shall be members of the general denomination. public, one with a knowledge of private vocational (c)Institutions exclusively offering instruction at education, and one representative of a labor organi- any or all levels from preschool through 12th grade. zation that represents persons with vocational or technical :rainingThree shall be administrative (d)Postsecondary educational institutions established, operated, and governed by the federal gov- head-, of institutions, one representing a nonaccred- ernment or by this state or its political subdivi- ited, degree granting school operating pursuant to subdivision ( 2) or 13) of Section 94310, one repre- sions. senting a non-degree granting school operating (e) Education sponsored by a bona fide trade, busi- pursuant to subdivision lc) or ( dl of Section 94311, ness, professional, or fraternal organization pre- and one representing an accredited out-of-state dominantly for that organization's membership. postsecondary educational institution operating in California pursuant to paragraph (b) of subdivision (f)Except for the provisions of subdivision (b) of Section 94311; Sections 94312, 94320, 94321, and (1) of Section 94310. (3) The Speaker of the Assembly shall appoint five * Section 2789 of the Business and Professions Code exempt members. Three shall be members of the general from the provisions of Chapter 6 on nursing of the Business public with an interest in developing private post- and Professions Code any school or schools conducted by secondary vocational and technical education Two any well recognized church or denomination for training the adherents of such church or denomination in the care of the shall be administrative heads of institutions, one sick in accordance with its religious principles." representing an accredited, non-degree granting

r I. .) :_ 63 school operating pursuant to subdivision (c) of Sec- The terms of the members of the council shall be tion 94311, and one representing a nonaccredited, four years. No appointee shall serve on the council non-degree granting school operating pursuant to for more than eight consecutive years. subdivision (d) of Section 94311. Any member of the council who misses two consec- (4) In addition, the following shall serve as ex offi- utive regular meetings of the council without cause cio members of the council: forfeits the office, thereby creating a vacancy. (i.) The Director of the Department of Consumer At the first meeting of the council, and annually Affairs, or his or her designee. thereafter, the members shall select o:ie of their number to serve as chairperson and one to serve as (B) The Director of the Department of Employment vice chairperson. The vice chairperson shall pre- Development, or his or her designee. side over all meetings of the council in the absence (C) The Director of the California Postsecondary of the alirperson. Education Commission, or his or her designee. (c) Any vacancy on the council shall be filled in the Ex officio members have no vote. same manner as provided for appointment of coun- It is the intent of the Legislature that the council cil members in subdivision (a). The appointee to fill shall provide leadership and direction in the con- a vacancy shall hold office only for the balance of tinuing development of private postsecondary edu- the unexpired term. cation as an integral and effective element in the (d) Appointed members of the council shall receive structure of postsecondary education in California. no compensation but shall receive their actual ex- The work of the council shall at all times be di- penses for attendance at official council meetings, rected toward maintaining and continuing, to the and when on official council business approved by maximum degree permissible, private control and the Superintendent of Public Instruction, not to ex- autonomy in the administration of the private post- ceed State Board of Control expense allowances secondary schools and colleges in this state. (e) The council shall determine the time and place (5) Administrative heads of institutions appointed of council meetings which shall not be fewer than under paragraphs (2) and (3) may be selected from six times in each calendar year. lists submitted by an association or associations of (f) The council shall: institutions governed under this chapter which has at least 30 members. (1)Advise the superintendent on the establishment of policy for the administration of this chap- (6)Public members appointed under paragraphs ter. (1), (2), and (3) shall not be retained or employed by any secondary or postsecondary educational insti- (2) Establish a process, in cooperation with the su- tution or system when appointed or during their perintendent, for the development and promulga- term of appointment. tion of rules and regulations. The process developed should not be inconsistent with the provisions (b) The first members shall be appointed on or before January 15, 1982, and the superintendent of this chapter and allow for the input of consumers shall designate the date of the first meeting of the and institutions. council. (1,Adopt procedures necessary or appropriate for The terms of office of the membIrs of the council the conduct of its work and the implementation of this chapter consistent with rules and regulations. shall commence on January 15, 1982, and the members shall enter upon their terms of office by lot so (4) Review minimum criteria utilized by the super- that the terms of five members shall expire on intendent in conformity with subdivisions 12), (3), January 15, 1983; the terms of five members shall and (4) of Section 94310 and subdivision (d) of Sec- expire on January 15, 1984; and the terms of five tion 94311 and Section 94312, including quality of members shall expire on January 15, 1985. education, ethical and business practices, nealth and safety, and fiscal responsibility, which applicants for approval to operate, or for an agent's per-

64 i t-.) ,,., mit, shall meet before the approval or permit may tion of a program of education which will prepare be issued, and to continue the approval or permit in them for the attainment of a professional, techno- effect. Criteria to be developed hereunder shall be logical, or educational objective. such as will effectuate the purposes of this chapter (2) Include a method of determining if the course of but will not unreasonably hinder legitimate educa- study for which the degree is granted achieves its tion innovation. professed or claimed educational objective. Mem- (5) In cooperation with the superintendent, prepare bers of this committee shall be administrative and submit an annual report to the California Post- heads of institutions operating pursuant to subdivi- secondary Education Commission to be used by the sion (3) of Section 94310, as of January 1, 1981. commission for the review and inclusion in the an- (b) Members of the special committee shall be se- nual update of the five-year plan for postsecondary lected by the Chair of the Council for Private Post- education. secondary Institutions, from names submitted by (6) Review appeals and complaints from education- private school associations operating in California al institutions, agents and cons'imers. Make rec- as of January 1, 1981. Each private school associa- ommendations to the superintendent regarding the tion which represents institutions operating pursu- disposition of these appeals and complaints. ant to subdivision (3) of Section 94310 shall nominate three individuals to serve on the special com- (7)Represent private postsecondary educational institutions on the State Occupational Informa- mittee. The chair of the council shall select from among these nominees so that each association has tional Coordinating Committee. two representatives on the special committee. The (8) Advise the superintendent regarding the appro- Director of the California Postsecondary Education priate action to be taken in the event that the visit- Commission, or his or her designee, shall also be a ing committee does not reach a unanimous recom- member of this special committee. mendation on an institution's application for au- (c) The special committee shall submit these authorization pursuant to subdivisions (3) and (4) of thorization standards to the council prior to Sep- Section 04410. tember 1, 1982, for the council's review.If the (g) All actions with the exception of those regard- council determines that the standards effect the ing the operating procedures of the council shall be purposes of this chapter, the council may recom- adopted according to the affirmative vote of the ma- mend adoption of the standards as the require - jority of the council and shall be in writing. ments for authorization to grant degrees pursuant to subdivision (3) of Section 94310The courcil shall take action to accept or reject the standards proposed by the special committee prior to January § 94304.5 Special cornmitteee; standard 1, 1983. for review and authorization; development; report by commission to legislature (d) Prior to February 1, 1983, the California Post- secondary Education Commission shall report to (a) The Council for Private Postsecondary Educa- the Legislature on the extent to which the proposed tional Institutions shall impanel a special commit- standards effect the purposes of this chapter. The tee of technically qualified persons to develop ex- commission shall: plicit standards to be used in the review and autho- (1)Review the adequacy of these proposed stan- rization of private postsecondary institutions which dards in providing a method of determining if the operate pursuant to subdivision (3) of Section 94310 course of instruction for which the degree is as it existed on January 1, 1982These standards granted achieves its professed or claimed educa- shall: tional objective. (1) Be sufficiently comprehensive so that a deter- (2) Compare these proposed standards to provisions mination can be made that the institution has the which exist in other states facilities, financial resources, faculty, and other net.essary educational expertise and resources to (3)Determine the extent to which the proposed afford students and require of students the comple- standards are sufficiently comprehensive and com-

16,) 65 T

plete so that they protect the integrity of degrees mittees shall not be connected in any way with a awarded by those institutions. school which is the subject of inspection or investi- (e) The members of the special committee shall gationThe members of the special committees serve without compensation, and shall not receive shall serve at no expense to the state. The actual any travel costs or per diem. travel expenses incurred by each member of a special committee shall be reimbursed by the institution which is the subject of inspection or investigation § 94305 Duties of superintendent (g) Publish annually for public distribution a.directory of all institutions approved or authorized to op- It is the intent of the Legislature that the superin- erate in this state under provisions of this chapter tendent meet regularly with the council, and that The directory shall contain as a minimum, the the superintendent work cooperatively with the names and addresses of these institutions, together council in providing leadership and direction in the with a notation of the statute section or sections un- continuing development of private postsecondary der which the institution has been authorized or education. approved. The superintendent shall do all of the following (h) Negotiate and enter into interstate reciprocity (a) Establish policy for the administration of this agreements with similar agencies in other states if, chapter in cooperation with the council in the judgment of the superintendent, such agreements are, or will be, helpful in effectuating the (b) Adopt regulations in cooperation with the coun- purposes of this chapter.However, nothing con- cil not inconsistent with this chapter governing the tained in any such reciprocity agreement shall be exercise of authority comprised by this article construed as limiting the superintendent's powers, which shall be adopted in accordance with Chapter duties, and responsibilities with respect to investi- 3.5 (commencing with Section 11340) of Part 1 of gating or acting upon any application for issuance Division 3 of Title 2 of the Government Code. or renewal of any agent's permit or with respect to (c) Prepare annually a proposed budget for the sup- the enforcement of any provision of this chapter or port of activities of the State Department of Educa- any rule or regulation promulgated under this tion pursuant to this article. The proposed budget chapter. The agreements shall not includ' stitu- shall be presented to the council for its review and tions authorized to operate under subdivis.)n (b) of recommendations. Section 94311 nor be in conflict with agreements arranged by the state licensing boards authorized (d)Consult with the council prior to instituting to negotiate the agreements through provisions of any action to deny, suspend, or withdraw approval the Business and Professions Code. or authorization of courses or schools pursuant to this article. ( i) Receive, investigate, as he or she may deem necessary, and act upon applications for authorization (e) Meet with the council at least twice per year or approval to operate educational institutions and Take into consideration the advice of the council on applications for agent's permits all matters where the council is authorized to communicate advice to the director (j) It is the intent of the Legislature that the superintendent develop, with the cooperation of the coun- (f) Impanel special committees of techr,ically quali- cil, a program or procedure requiring institutions fied persons to assist the superintendent and the subject to the provisions of this section to provide council in the development of standards for educa- evidence assuring the due and faithful performance tion and educational institutions and the evalua- of agreements or contracts with students and the tion of any application or institution pursuant to refund of unearned tuition in the event the school this chapter. The special committees shall make ceases to exist or provide instruction. such inspections and studies as may be necessary to enable them to advise the council and the superin- (k) Request the Attorney General to bring actions tendent in regard to action to be taken in any par- pursuant to paragraph (2) of subdivision (a) of Sec- ticular situation.Members of these special com-

66 IL, tion 94339 which the superintendent deems are is the effective date and the transition provisions necessary to enforce the provisions of this chapter shall be applied by reference to that effective date.

94305.5 Injunction of operation of ARTICLE 1.5 unapproved or unauthorized instititution or its agent ACADEMIC AND HONORARY DEGREES

The superintendent may bring a civil action, in his or her name, to enjoin the operation of a postsecondary educational institution that has not been ap- 94110 Requirements for issuing, proved or authorized to operate pursuant to Sec- conferring or awarding degrees tions 94310 or 94311, or has not filed affidavits pur- No institution may issue, confer, or award an aca- suant to Section 94315. demic or honorary degree un:esa the institution The superintendent may bring a civil action to en- meets the requirements of at least one of the sec- join the agent of a postsecondary educational insti- tions of this article. tution or any person or entity from conducting, maintaining, or aiding and abetting the operation of a postsecondary educational institution that has not been approved or authorized to operate pursu- I. 94310.1 Accreditation by national or ant to Sections 94310 or 94311, or has not filed affi- regional accrediting agency; duties of davits pursuant to Section 94315. superintendent; standards and procedures for onsite review ,ind licensure The legal office of the Department of Education may represent the superintendent in actions The institution meets the requirements of one or brought pursuant to this section. both of the following subdivisions. (a) The institution, which at the time of the issuance of a degree, has accreditation of the institu- $ 94306 Law applicanble to existing tion, program, or specific course of study upon corporations; prior law; prior nonprofit law which the degree is based bynational accrediting agency recognized by the U-c1 States Depart- (a) Every corporation authorized to issue shares of ment )f Education, the Wt.si.vin Association of stock and organized or existing under this article in Schools and Colleges, or by the Committee of Bar effert, on December 31, 1981, is subject to and Examiners for the State ^f California. The institu- deemed to be organized under the General Corpora- tion shall file with the superintendent an annual tion Law.(Division 1 (commencing with Section affidavit of the administrative head of the institu- 100) of Title 1 of the Corporations Code ) tion stating that the institution is so accredited. In- stitutions authorized to operate under this subdivi- (b) Every nonprofit corporation without authority sion may issue diplomas and certificates as well as to issue shares of stock and organized or existing degrees under this article in effect on December 31, 1981, is subject to and deemed to be organized under either (b) Any public or private postsecondary education- Part 2 (commencing with Section 5110), Part 2 al institution incorporated in another state that has (commencing with Section 7110), or Part 4 (com- accreditation from a regional accrediting associa- meming with Section 9110) of Division 2 of Title 1 tion recognized by the United States Department of of the Corpora ions Code, dependent on the applica- Education at the time of the issuance of a degree. tion of Section 9912 of the Corporations Code. and that is licensed by the superintendent, may issue degrees, diplomas, or certificatesAccredited (c) For the purposes of Sections 2300 and 9910 of public or private postsecondary educational institu- the Corporations Code, this article is the "prior tions incorporated in another state shall not offer law" or "prior nonprofit law" and January 1, 1982,

16.; 67 degrees, diplomas, or certificates in California un- It is the i:nt of the Legislature that the postsec- less they comply v'th the provisions of this section. ondary educational institution urge its home regional accrediting association to participate in the (1) The superintendent shall not license an institu- licensure process by the state, and that the state's tion to issue degrees, diplomas, or certificates pur- licensure process be conducted whenever possible suant to this subdivision until he cr she has con- in concert with the institutional review conducted ducted a qualitative review and assessment of and by the regional association. has approved, the operations of the institution in California, and the superintendent has determined (4) The superintendent shall grant licensed status all of the following: under this subdivision until December 31, 1987, for all other institutions incorporated in another state (A) The institution has financial resources to en- that offered educational programs in California pri- sure the capability of fulfilling the program or pro- or to July 1, 1985, that file with the superintendent grams for enrolled students. within 30 days from October 1, 1985, all of the fol- (B) The faculty includes personnel who possess ap- lowing information. propriate degrees from institutions accredited by a (A) A copy of the institution's most recent self- regional accrediting association recognized by the study eeport prepared for the institution's home re- United States Department of Education in the de- gional accrediting association, as well as a copy of gree major field or fields offered, in sufficient num- the institution's team report prepared by the ac- ber to provide the educational sere' as. crediting association. (C) The education services and curriculum clearly (B) A list of the locations of all of the operations of relate to the objectives of the proposed program or the institution in California. programs, which are comparable programs offered by accredited institutions already operating in this (C) A list of all degree, diploma, and certificate pro- state. grams offered by the institution in California, as well as the curriculum, instruction, and faculty (D) The facilities are appropriate for the defined ed- utilized in each program. ucational objectives and are sufficient to ensure quality educational services to the students en- (D) A list of degrees, diplomas, and certificates of- rolled in the program or programs. fered by the institution. (E) The institution has verifiable evidence of aca- Institutions licensed under this paragraph shall of- demic achievement comparable to that required of fer in California only programs that the institution graduates of other accredited institutions operating can document to have been acknowledged and fav- in this state for the program or programs upon orably reviewed by the home regional accrediting which the degree, diploma, or certificate is based. association. (2)All institutions incorporated in another state (5) (A) The Director of the C.tlifornia Postsecondary that were offering educational programs in Califor- Education Commission shall establish a special nia and were authorized to operate pursuant to subcommittee of persons with demonstrated knowl- division (a) on December 31, 1985, shall have the edge of both regional accrediting standards and option until and including December 31. 1989, of procedures and the special demands of off-campus continued operation in California pursuant to au- programs. The committee shall include representa- thorization under subdivision a) or through licen- tives from the State Department of Education, insure pursuant to this paragraph. stitutions incorporated in other states that offer educational programs in California, and public and (3) Except as otherwise provided by paragraph (4), private California colleges and universities the superintendent shall grant licensed status under this section for a period consistent with the (B)The committee shall develop proposed stan- postsecondary educational institution's home re- dards and procedures to be used in the onsite regional accrediting association, but not to exceed view and licensure of institutions applying for li- five years. censure under this subdivision subject to the princi-

68 1 L ple that educational innovation and competition by the commission to develop regulations for the li- shall not be hindered unreasonably. censure of all institutions operating pursuant to this subdivision. (C)The committee shall report to the California Postsecondary Education Commission and the Su- The regulations shall provide for consideration of perintendent of Public Instruction by November 1, the accredited institutions' stated educational 1985, regarding the proposed standards and proce- goals, purposes, and objectives, in conducting the li- dures. The commission shall take action on the pro- censure review of the California operations of out- posed standards within 60 days of receipt of the re- of-state based institutions. port by the special committeeThis subdivision These regulations, which shall be developed by the shall become inoperative on Januar1, 1987, if the superintendent in cooperation with the Council for commission has not adopted standards and proce- Private PoF:.seco: dary Educational Institutions, dures proposed by the special committee by that shall include a formula to determine the institu-. date. tional licensure fee and the number of sites to be (D) The committee shall utilize the following prin- visited by the state. ciples in the development of these standards and The regulations developed by the superintendent procedures: shall include all of the procedures and standards (i)Within two years from the enactment of this recommended by the special committee and acted statute, the State Department of Education shall upon by the commission.Prior to December 31, review the operations of all institutions operating 1987, the superintendent shall utilize these regula- under the provisions of this subdivision section. tions to review all institutions operating pursuant to this subdivision. In conducting the licensure re- (ii)Following the initial state review, subsequent view of the operation of out-of-state accredited in- onsite reviews by the superintendent shall be con- stitutions in California, the superintendent shall ducted whenever possible in conjunction with insti- interpret the regulations based upon each institu- tutional reviews by the regional accrediting associ- tion's accredited educational purposes and objec- ation.However, if there is substantial evidence tives. that the institution is not in compliance with state standards, the superintendent may initiate a special review of the California operations of the institution. § 94310.2Institutional approval by (iii) Each institution shall submit a single applca- superintendent to award or issue degrees; tion for all operations in California, and the appli- qualitiative review and assessment; onsite cation shall include a single fee which is institu- review process tion-based and not sitebased. The institution, which at the time of the issuance of (iv) The superintendent shall develop a procedural a degree, has full institutional approval by the su- rationale to justify the number of sites to be visited perintendent to award or issue specific profession- by the state in the review ofe institution's opera- al, technological, or education degrees tuns in California. (a) The superintendent shall not approve an insti- (v) The purpose of the onsite review by the superin- tution to issue degrees until he vr she has con- tendent shall be to determine that operations by ducted a qualitative review ai,d assessment of, and the institution in California meet the minimum has approved, each program offered by the institu- state standards identified in statute. tion, and the superintendent has determined, based (vi) The standards and procedures shall not unrea- upon information submitted to him or her, all of the sonably hinder educational innovation and compe- following: tition. (1)The institution has facilities, financial re- (E) Prior to March 1, 1987, the superintendent sources, administrative capabilities, faculty, and shall utilize all of the standards and procedures rec- other necessary educational expertise and re- ommended by the special committee and acted upon sources to afford students, and require of students,

16, 69 the completion of a program of education which will If the application is disapproved, or candidate for prepare them for the attainment of a professional, institutiond approval status is granted, the insti- technological, or educational objective, including, tution shall be advised of the specific reasons for but not limited to, a degree. the action and the specific corrective measures (2) The curriculum is consistent in quality with needed to achieve full institutional approval An institution may not advertise itself as an approved curricula offered by appropriate established accred- or fully approved institution unless each degree ited institutions which are recognized by the Unit- program offered by the institution has been ap- ed States Department of Education or Llie Commit- proved in accordance with the requirements of this tee of Bar Examiners for the State of California and issue the appropriate degree upon the satisfactory section. completion of specific qualitative academic pro- (c) (1) The :,uperintendent shall grant full institu grams. tional approval status for three years to all insl.itu- (3) The course for which the degree is granted tions operating pursuant to subdivision (2) of Sec- tion 94310 on June 30, 1984, as it read on that date achieves its professed or claimed academic objective for higher education, with verifiable evidence of and which have received full approval of all courses academic achievement comparable to that required offered. of graduates of other recognized schools accredited (2) The superintendent shall grant candidate for in- by an appropriate accrediting commission recog- stitutional approval status for a period not to ex- nized by the United States Department of Educa- ceed two years to all institutions operating on June tion or the Committee A' Ear Examiners for the 30, 1984, pursuant to both subdivisions (b) and (c) State of California. of Section 94310 as it read on that date. The super- The criteria developed for conducting the review intendent shall specify a date, prior to June 30, 1986, by which all institutions operating pursuant and assessment shall effectuate the purposes of this chapter, but shall not unreasonably hinder legiti- to this subparagraph shall file a completed application for either full institutional approval pursuant mate educational innovation. to this subdivision, or authorization to operate pur- (b) The superintendent shall conduct the qualita- suant to Section 94310.3. tive review and assessment of the institution and all programs offered through a comprehensive on- (d) The superintendent may authorize any institution approved to issue degrees pursuant to this sub- site review process, performed by a qualified visiting committee impaneled by the superintendent for division to issue diplomas for the completion of that purpose. The visiting committee, which shall courses of study which df., "at fully meet the degree requirements, but are within the institution's ap- be impaneled by the superintendent within 90 days of the date of receipt of a completed application, proved degree program. shall be composed of educators from both accredited The superintendent may approve an application to and state approved institutions. Within 90 days of issue honorary degrees if the applicant institution the receipt of the visiting committee's report and has received full institutional approval to issue recommendations, the superintendent shall take academic degrees. one of the following actions: (1) Grant full institutional approval for a period not to exceed three years. § 94310.3 Compliance with standards (2) Grant candidate for institutional approval stat- recommended by council for private us for a period not to exceed two years plus the :e- postsecondary educational institutions and mainder of the calendar year in which the applica- adopted by superintendent; onsite review tion was made. Candidate status may be renewed process; authorization; probation only one time, at the discretion of the superintendent. The institution has demonstrated that it is in compliance with formal standards recommended by the (3) Disapprove the application. Council for Private Postsecondary Educational In-

70 1L .t.t)(..., stitutions and adopted by the st,perintendent, the applicant institution. These members shall be which shall include, but not be limited to, the stan- nonvoting members. dards developed by the special committee pursuant (c) The visiting committc-'.. responsibilities shall to Section 94304.5. include all of the following: (a) The institution shall demonstrate compliance (1) To verify the accuracy of the information sub- with the standards through a comprehensive onsite mitted by the applicant institution. review process conducted by a threemamber visiting committee impaneled by the superintendent for (2) To determine whether the applicant institution that purpose pursuant to subdivision b. The proc- complies with the standards required by statute ess shall review all of the following. and regulation (1) Institutional objectives (3) To provide the applicant institution with a pre- (2) Administrative methods liminary report of its findings, including its recom- (3) Curriculum mendation regarding the grant of the requested au- (4) Instruction thorization, no later than 30 days following comple- (5) Faculty, Including their qualifications. tion of the onsite review The applicant institution (6) Physical facilities. shall provide the visiting committee with any addi- ... (7) Administrative personnel. tional information the visiting committee may re- (8) Procedures for keeping educational records. quest within 30 days after receipt of the prelimin- (9) Tuition, fee, and refund schedules. ary report. (10) Admissions standards. (4) To review the applicant institution's response to (11) Scholastic regulations and graduation the preliminary report, and no later than 90 days requirements. following receipt of the response, submit a final re- (12) Degrees offered. port to the superintendent. The final report shall ( [3) Financial stability, including that the capi- include the visiting committee's recommendation tal assets of the institution are sufficient for the fo: the grant of authorization or for the denial of type, level, and number of degree programs of- that authorization. fered and that the current assets of the institution are sufficient to serve the number of stu- (d)If the visiting committee's recommendation re- dents then currently enrolled and to meet any garding authorization is not unanimous, the super- tuition or fee refunds which may reasonably be intendent shall refer the final report to the counc: _ expected under the institution's refund policy. or to an appropriate appeals committee of the council for its advice pursuant to paragraph (8) of (b) Within 90 days of the date of receipt of a com- subdivision (f) of Section 94304. pleted application, the superintendent shall impanel a visiting committee for the purpose of reviewing (e)Within 90 days of the receipt of a unanimous the applicant institutionThe visiting committee visiting committee's report or the advice of the shall be composed as follows: council, as appropriate, the superintendent shall take one of the following alternative actions (1) One member appointed by the director of the California Postsecondary Education Commission. (1)Grant the applicant institution full authorization for a period not to exceed five yearsAuthori- (2) One member appointed by the superintendent zation pursuant to this subparagraph shall contin- from a list of three names submitted by the Council ue to be valid upon payment of the annual renewal for Private Postsecondary Educational institutions. fee specified in Section 94331. (3) One member appointed by the superintendent (2) Disapprove the application. from his dr her staff, who shall serve as chairperson of the visiting committee The superintendent shall advise the applicant institution of the specific reasons for action taken (4)Additional members may be appointed by the pursuant to st,bparagraph (2) of this subdivision superintendent if the superintendent determines and of the sty.Tific corrective measures needed to that their technical expertise is necessary to review obtain authorizationIf those corrective measures 16.; 71 have been taken, authorization may then be later than 30 days following the superintendent's granted for an initial period not to exceed one year, initial action pursuant to this paragraph. and for periods of five years upon each subsequent renewal, subject to the payment of the annual renewal fee specified in Section 94331. 94310.4 Theology and other areas (f) Not later than 90 days prior to the expiration of of religious study; filing of affidavits; an authorization to operate, an institution shall file authorization to operate a completed application for reauthorization pursuant to this section with the superintendent The re- The institution is structured by schools of theology, authorization process for all institutions she 11 in- and awards degrees primarily in theology and other clude a full review by a visiting committee. areas of religious study, and it has filed all of the following affidavits with the superintendent: (g) All institutions operating pursuant to authorization received under this subdivision in effect on (a) An annual affidavit of "full disclosure" describ- June 30, 1984, shall receive conditional authoriza- ing the institutional objectives and proposed meth- tion for a period not to exceed three years; On a ods of achieving them, the curriculum, instruction, specified date prior to June 30, 1987, determined by faculty with qualifications, physical facilities, ad- the superintendent, each institution granted condi- ministrative personnel, educational recordkeeping tional authorization pursuant to this paragraph procedures, tuition and fee schedule, tuition refund shall file a completed application for reauthoriza- schedule, scholastic regulations, degrees to be con- tion pursuant to this section. ferred, graduation requirements, and financial stability as evidenced by a certified financial state- (h) Authorization received pursuant to this subdi- ment for the preceding year. vision shall not be interpreted to endorse, and it is unlawful for, any institution to represent by any (b) An affidavit by the president or other head stat- means that the State of California, the Superinten- ing that the institution owns, and shall continue to dent of Public Instruction. State Board of Educa- own, net assets in the amount of fifty thousand dol- tion, or the State Department of Education has lars ($50,000) which is used solely for the purpose made any accreditation or endorsement of the of education as stated in paragraph (1), located course of study or degree. within this state, and stating that these assets provide sufficient resources to achieve the educational (i)If at any time the superintendent determines objectives of the institution. These assets shall in- that an authorized institution has significantly de- clude such real property as buildings and facilities, viated from the standards for authorization, but not library materials, and instructional materials, but to an extent which would warrant the withdrawal shall not include other personal property not used of the institution's authorization, the superinten- directly and exclusively by the institution for the dent may place the institution on probation for a purpose of education. The affidavit shall be accom- specific period of time. During the period of proba- panied by a statement from a public accountant tion, the institution shall be subject to special scru- showing the value of the interest of the institution tiny by the superintendent That ,crutiny may in- therein to be at least fifty thousand dollars clude required submission of periodic reports, as ($50,000) above the unpaid balance on any note se- prescribed by the superintendent, and special visits cured by a mortgage, deed of trust, or the unpaid by authorized representatives of the superinten- balance on a contract of sale. dent. If at the end of the specified probation period, the institution has not taken steps to eliminate the (c) An annual affidavit by the president or other cause for its probation which the superintendent head setting forth, as a minimum, all of the follow- finds satisfactory, the superintendent may with- ing information: draw the institution's authorization to award de- (1) All names, whether real or fictitious, of the per- grees. An institution placed on probation pursuant son, institution, firm, association, partnership, or to this paragraph may appeal the superintendent's corporation under which i, has done or is doing bus- action to the council. The appeal shall be filed no iness.

72 (2) The address, including city and street, of every place of doing business of the person, firm, association, partnership, or corporation, within this state. ARTICLE 2 (3)The address, including city and street, of the location of the records of the person, firm, associa- REQUIREMENTS AND STANDARDS tion, partnership, or corporation, and the !lam.) and address, including city and street, of the custodian of those records. § 94311 Approval or authorization (4) The names and addresses, including city and of institution by superintendent street, of the directors, if any, and principal officers of the person, firm, association, partnership, or cor- No postsecondary educational institution may offer poration. courses of education leading to educational, profes- (5) That the records required by subdivision (k) of sional, technological, or vocational objectives un- Section 94312 are maintained at the address stated, less the institution has been approved or authorized and are true and accurate. by the superintendent as meeting at least one of the following requirements: Any change in the items of information required to be included in this affidavit shall be reported to the (a) A hospital licensed under the provisions of Arti- superintendent within 20 days of the change. cle 1 (commencing with Section 1250) of Chapter 2 of Division 2 of the Health and Safety Code and is- Within 90 days of the receipt of the affidavits de- sues diplomas only in connection with the opera- scribed in paragraphs (a), (b), and (c), and prior to tion of a hospital. granting the initial authorization to operate, the superintendent shall verify the truthfulness and (b) An institution which is accredited, approved, or accuracy of the affidavits by impaneling a three- licensed by a state board or agency as a school, or member team comprised of one representative any person or school certified for flight instruction which he or she shall select, one representative of by the Federal Aviation Administration, or its suc- the California Postsecondary Education Commis- cessor agency, and which issues or confers diplomas sion, and one representative selected by, but not in the profession, vocation or occupation controlled affiliated with, the institution to be inspected. by the board or agency accrediting, approving, or li- Within 30 days of the receipt of the report from the censing it. However, this subdivision shall not be three-member team, the superintendent shall construed as authorizing the issuing of a diploma grant ur deny authorization to operate. Authoriza- which is not customarily granted for the training tion to operate ma, be denied only if the affidavits given and which is limited to the profession, voca- are inaccurate.Authorization to operate may be tion or occupation controlled by the accrediting, ap- granted :or one year initially and for periods of proving, or licensing board or agencyAuthoriza- three years upon each subsequent renewal, subject tion to operate pursuant to this subdivision shall to payment of an annual fee pursuant to Section only be denied if the institution does not possess a 94331. For all affidavits beyond the initialppl Ica- valid acct:editation, approval, or licensure by a tion, the superintendent may take any stepsneces- California state agency, or if the person or school sary to verify the truthfulness and accuracy of the providing flight instruction d es not possess a valid affidavits. Filing pursuant to this subdivision shall certification issued by the Federal Aviation Admin- not be interpreted to mean, and it shall be unlawful istration, or its successor agency. Institutions seek for, any institution to expressly or impliedly repre- ing approval or authorization pursuant to this sub- sent by any means whatsoev-sr, that the State of division shall be exempt from providing the appli- California, the Superintendent of Public Instruc- cation materials specified in subdivision (a) of Sec- tion, the State Board of Education,or the State De- tion 94330 and from the requirements of subdivi- partment of Education has made any evaluation, sion (e) of Section 94330.Institutions or persons recognition, accreditation, approval or endorse- approved by the Federal Aviation Administration, ment of the course of study or degree. or its successor agency, which offer flight education and instruction shall file annually with the Super-

11.s... 1 i :.... 73 intendent of Public Instruction a copy of the indi- (7) The institution complies with all local city, vidual's or institution's certificate as provided by county, municipal, state, and federal regulations the Federal Aviation Administration. such as fire, building, and sanitation codes. The superintendent may require evidence of compliance. (c) An institution which at the time of the issuance of a diploma, hes accreditation of the institution, (8) The institution does not exceed enrollment program or specific course of study upon which the which the facilities and equipment of the institu- diploma is based by a national or applicable region- tion can reasonably handle. al accrediting agency recognized by the United (9)The institution's administrator, director, States Department of Education, and the admini- owner, and instructors are of good reputation and strative head of the institution has filed with the character. superintendent an annual affidavit verifying that the institution, program, or each course of study for (10) Application for such approval shall be made in which a diploma is issued is so accredited. writing on proper application forms. Pending final approval, the superintendent may :ssue a previ- (d) An institution which has been approved by the sional approval upon submission of the comp, ate superintendent as meeting the following minimum r pplication. criteria: Within 30 days following receipt of application, and (1) That the quality and content of each course or prior to the issuance of either pros isional or final program of instruction, training, or study -.re such approval, a representative of the superintendent as may reasonably and adequately achieve the shall personally inspect the school and verify the stated objective for which the course or program is application. If the visitation does not occur within offered. 30 days following receipt of the application, the in- (2)There is in the institution adequate space, stitution shall automatically receive a provisional equipment, instructional material, and instructor approval.Within 30 days following visitation, personnel to provide training of the quality needed either final approval, provisional approval, or de- to attain the object of that particular course. nial of approval shall be given to each application. If the superintendent does not act within 30 days (3)Every instructor and administrator holds an following visitation, the application from the insti- applicable and valid Certificate of Authorization tution will automatically receive approval.If all for Service issued by the Superintendent in the spe- information is in order, the superintendent may au- cified competence area in which the individual will thorize provisional approval. A provisional approv- serve. Certificates may be issued to administrators al shall not exceed a period of one year, subject to upon the superintendent's determination that the prior terminatio^ or conversion to annual approval. applicant is of good moral character and to instruc- A provisional approval may not be extended. tors upon the superintendent's determination that the applicant is of good moral character and pos- sesses adequate academiexperiential, and pr ofes- sional qualifications. § 94311.5 Truck driving schools (4) The institution maintains written records of the student's previous education and training with rec- No person shall own or operate a school, or give in- ognition where applicable. struction, for the driving of motortrucks of three or more axles which are more than 6,000 pounds un- (5) A copy of the course outline, schedule of tuition, laden weight unless both of the following condi- fees and other charges, regulations pertaining to tions are met: tardiness, absence, grading policy and rules of oper- atio 1 and conduct is given to students upon enroll- (a) The school or instruction has been approved or ment. authorized under either subdivision (c) or Id) of Sec- tion 94311 (6) The institution maintains adequate records to show attendance, progress, and grades. (b) The department has certified, in addition, that the school, or instruction, meets all standards for truck driving schools and instruction established

74 by the Department of Motor Vehicles as of January money to be retained by the school as provided in 1, 1988, including, but not limited to, vbehicle in- subdivision (d).Ife student does not visit the spection, insurance requirements, and personnel campus after signing the contract, the "cooling off' background checks. period shall automatically begin six days prior to the start of classes. The student may waive the right to visit the campus at any time after signing the contract. This provision does not apply to corre- $ 94312 Minimum standards spondence schools or other mail study institutions. The superintendent shall take into consideration All institutions authorized, or approved, under this the character of the educational program in deter- chapter shall be maintained and operated, or in the mining if other types of institutions should also be case of a new institution, shall demonstrate that it excluded from this provision. will be maintained and operated, in compliance with all of the following minimum standards: (f) That any written contract or agreement for a- course of study with an institution shall include on (a) That the institution is financially capable of the first page of the agreement or contract. in 12- fulfilling its commitments to its students. point boldface print or larger, the following state- (b) That the institution and its agents do not utilize ment: advertising of any type which is erroneous or mis- "Any questions or problems concerning this institu- leading, either by actual statement, omission, or in- tion which have not been satisfactorily answered or timation. resolved by the institution should be directed to the (c) That the institution designates an agent for ser- Superintendent of Public Instruction, State Depart- vice of process within this state. ment of Education, Sacramento, California 95814." (d) That the institution has and maintains a fair In addition, the written contracts or agreements and equitable policy in reference to refund of the shall specify, in underlined capital letters on the unused portion of tuition fees and other charges in same page of the contract or agreement in which the event the student fails to enter the course, or the student's signature is required, the total finan- withdraws therefrom at any time prior to comple- cial obligation that the student will incur upon en- tion of the course. The policy shall be in compliance rollment in the institution, in numbers or letters. with the minimum standard of refunds as adopted (g) That x either the institution nor its agents en- by the superintendent. The superintendent shall gage in sales, collection, credit, or other practices of take into consideration the length and character of any type which are false, deceptive, misleading, or the educational program in determining standards unfair. for refunds. (h) That the institution makes available to stu- (e) That any written contract or agreement signed dents and other interested persons a catalog or bro- by a prospective student away from the institution chure containing information describing the premises shall not become operative until the stu- courses offered, program objectives, length of pro- dent makes an initial visit to the institution. The gram, faculty and their qualifications, schedule of provision applies only in those situations when the tuition, fees, and all other charges and expenses student begins payment on tuition charges (beyond necessary for completion of the course of study, can- the registration fee) prior to arriving at the cam- cellation and refund policies, the total cost of tui- pus. The student is obligated to visit the campus at tion over the entire period, and (for vocational least six days prior to the start of classes.The training programs for which specific placement school officials are obligated to provide the student claims are made) placement data, as well a such with a thorough tour of the campus facilities and to other material facts concerning the institution and place a written statement, signed by the student. in the program or course of instruction, as are reason- the student's file to verify that the visitation and ably likely to affect the decision of the student to campus tour were provided. Following the visita- enroll therein, as specified by the superintendent tion to the campus, the student shall have a three- and Aefined in the rules and regulations. and that day "cooling off" period to void the contract with no

75 such information is made available to prospective priate action and substantial evidence remains students prior to enrollment. that the institution is not meeting minimum stan- (i) That upon satisfactory completion of training, dards, the superintendent may take further action, the student is given an appropriate degree or diplo- as may be necessary, including revoking the insti- ma by the institution, indicating that the course or tution's license to offer education and to award degrees and diplomas. courses of instruction or study have been satisfactorily completed by the student. (m) That the institution provides instruction as (j) That adequate and accurate records are main- part of its educational program. Instruction shall tamed by the institution, in accordance with regu- include any specific, formal arrangement by an in- lations adopted by the superintendent, and that stitution for its enrollees to participate in learning satisfactory standards are enforced relating to at- experiences wherein the institution's faculty or tendance, progress, and performance. contracted instructors present a planned curriculum appropriate to the enrollee's educational pro- (k) That the institution maintains current records gram. for a period of not lei than five years at its principal place of business within the State of California, (n)Institutions licensed solely under subdivision immediately available during normal business (b) of Section 94311, with the exception of those of- hours, for inspection by the superintendent or the fering flight instruction, shall comply with subdivi- Attorney General of California showing all of the sion (b), (e), (g), (h), (i), and (j). The responsibility follow ing: for monitoring and enforcing institutional compliance with these minimum standards shall be with :1) The names and addresses, both local and home, the state board or agency responsible for licensing including city and street, of each of its students. the school. (2) The courses of study offered by the institution. (o) Institutions certified to offer flight instruction (3) The names and addresses, including city and by the Federal Aviation Administration, or its suc- street, of its faculty, together with a record of the cessor agency, shall comply with all of the require- educational qualifications of each. ments of this section, but shall not be required to file any materials with the Superintendent of Pub- (4) The degrees or diplomas and honorary degrees lic Instruction which are not required by the Feder- and diplomas granted, the date of granting, togeth- al Aviation Administration, or its successor agen- er with the curricula upon which the diplomas and cy, except those minimally necessary to administer degrees were based. the Student Tuition Recovery Fund, pursuant to (1) Accreditation by a national or applicable region- Section 94342, as determined by the Superinten- al accrediting agency recognized by the United dent of Public Instruction. The responsibility for States Department of Education shall be accepted monitoring and enforcing institutional compliance by the superintendent as evidence of compliance for these institutions shall be with the Superinten- with the minimum standards established by the ac- dent of Public Instruction. crediting or licensing agency, and therefore as evi- Individual flight instructors not. requiring any ad- dence of compliance with the minimum standards vance payments, who do not negotiate a formal con- specified in the provisions of this section. If there is tract of indebtedness, and who do not have an es- substantial evidence of violation by a college or uni- tablished place of business other than their resi- versity accredited by a national accrediting agency dences shall be exempt from the requirements of of the standard established by the responsible agen- this section. cy, the superintendent shall require further evidence and make further investigationFollowing the superintendent's investigation, the appropriate national accrediting agency shall be notified by the § 94313. Compliance investigation superintendent of his or her findings.If, after four (a)Within 30 days of receiving the noticer de- months, the superintendent determines that the scribed in Section 69509 5 from the commission, national accrediting agency has not taken appro- the Private Postsecondry Education Division of the

76 1 ..: State Department of Education shall commence an tion 94336.Filing pursuant to this section shall investigation of the institution named in the no- not be interpreted to mean, and it shall be unlawful tice.* The purpose of the investigation shall be to for, any institution to expressedly or impliedly rep- determine whether the educational institution is resent by any means whatsoever, that the State of complying the applicable provisions of the chapter, California, Superintendent of Public Instruction, the rules and regulations promulgated pursuant to the State Board of Education, or the Department of this chapter, and the standards establisned by the Education has made any evaluation, recognition, accrediting board or agency. The receive of the accreditation, approval, or endorsement of the in- notice described in Section 69509.5 shall be deemed stitution or the education offered. to be substantial evidence of violation of the stan- This provision does not apply to education with an dards established by the responsibler agency for the " ducational, professional, technological, or voca- purposes of subdivision (1) of Section 94312. tional objective which is subject to approval or au- (b) Within 60 days of the commencement of the in- thorization pursuant to Section 94311. Institutions' vestigation required in subdivision (a), the Private accredited by a national or applicable regional ac- Postsecondary Education Division of the State De- crediting agency recognized by the United States partment of Education shall conclude its investiga- Department of Education, or accredited, approved, tion and take action against the institution in- or licensed by a California state agency for such ed- volved, as appropriate. ucation, are exempted from the provisions of this section. Also exempted from this section are reme- dial and tutorial education, as determined by the superintendent, any education which is offered free § 94315. Institution for development or of charge, and any education offered by nonprofit improvement of occupational skill, knowl- entities, including national or statewide profession- edge or ability; affidavit of ownership; fil- al and occupational organizations and public bene- ing; exemption from provisions of chapter; fit corporations. inapplicability

No institution may offer education which develops or improves an occupational skill, knowledge, or ARTICLE 3 ability unless the ownership for its statewide operations has filed with the superintendent an annual PROHIBITED ACTIVITIES affidavit for public disclosure setting forth the following information: the ownership's legal name, headquarters address, and name of an agent for the § 94320. Prohibited activities service of process within California; all names, whether real or fictitious, under which the owner- No institution, or representative of such institu- ship is doing and will do business; and, the names tion, shall: and addresses of the principal officers of the ownership. Accompanying such annual affidavit shall be (a) Operate in this state a postsecondary education- representative copies of any existing media adver- al institution not exempted from the provisions of tising or promotional material. Institutions filing this chapter, unless said institution has a currently pursuant to this section shall be exempt from all alid authorization or approval to operate issued the provisions of this chapter except those in subdi- pursuant to the provisions of this chapter. vision (d) of Section 94310, Section 94321, and Sec- (b) Offer, as or through an agent, enrollment or instruction in, or the granting of educational creden- * This notice from the California Student Aid Commission involves "the commencement of any cause of action " against a tials from, an institution not exempted from the private postsecondary educational institution in connection provisions of this chapter, whether such institution with the California Guaranteed Student Loan Program or the is within or outside this state, unless such agent is California Loans to Assist Student Program. The Student Aid Commission is to notify the Private Postsecondary Education a natural person and has a currently valid agent's Division in writing within five days of commencing such an permit issued pursuant to the provisions of this action. chapter, nor accept contracts or enrollment applica-

17 77 tions from an agent who does not have a current le) Advertise, or indicate in any promotional mate- permit as required by this chapter; provided, how- rial, that resident instruction, or courses of study ever, that the superintendent may promulgate are offered without including in all advertising or rules and regulations to permit the rendering of le- promotional material the location where the train- gitimate public information services without such ing is given or the location of the resident instruc- permit. tion. (c) Instruct or educate, or offer to instruct or edu- If)Solicit students for enrollment by causing any cate, including soliciting for such purposes, enroll advertisement to be published in "help wanted" col- or offer to enroll, contract or offer to contract with umns in any magazine, newspaper, or publication any person for such purpose, or award any educa- or use ''blind" advertising which fails to identify tional credential, or contract with any institution the school or institution. or party to perform a; r such act, in this ,tate, Nothing contained in this section shall prohibit a whether such person, agent, group, or entity is lo- private school and a bona fide employer from jointly cated within or without this state, unless such per- advertising in "help wanted" columns of a maga- son, agent, group, or entity observes and is in com- zine, newspaper, or other publication if they meet pliance with the minimum standards set forth in all of the conditions established by the superinten- Section 94312, the criteria established by the su- dent for such advertising. perintendent and rev'ewed by the council pursuant to paragraph (4) of subdivision (f) of Section 94304, Any institution willfully violating any provisions and the rules and regulations adopted by the super- of this section shall be unable to enforce any con- intendent pursuant to subdivision (b) of Section tract or agreement arising from the transaction in 94305. which the violation occurred, and it may be one of the grounds for losing the approval or authorization (d) Use, or allow the use of, any reprodut tion or fac- to operate in this state. In addition, in the event of simile of the Great Seal of the State of California on such violations, the institution shall refund to the any diploma. student any tuition or fees that have been collected from the student. The student shall be awarded, in addition to the foregoing, any damages sustained, § 94321 Prohibited activities and may be awarded treble damages, in the discretion of the court. Nolstitution, or representative of such institu- The judgment rendered in any action maintained tion, shall: for the recovery of fees or damages sustained in ac- (a) Make, or cause to be made, any statement, or cordance with the terms of this section or the judg- representation, oral, written, or visual, in connec- ment rendered in any action defended by a student, tion with the offering or publicizing of a course, if shall, if the student is the prevailing party, include such person, firm, association, partnership, or cor- court costs, including a reasonable attorney's fee poration knows, or reasonably should have known, fixed by the court. the statement or representation to be false, decep- The provisions of this section shall supplement and tive, inaccurate, or misleading. net diaplat.2 the authority granted the Division of (c) Advertise concerning job availability, degree of Labor Law Enforcement under Section 1700.4 of skill and length of time requires to learn a trade or the Labor Code to the extent that placement activi- skill unless the information is accurate and in rif.1 ties of trade schools are subject to regulations by way misleading. the division under the Labor Code. (d) Advertise, or indicate in any promotional material, that correspondence instruction, or correspondence courses of study are offered without includ- ARTICLE 4 ing in all advertising or promotional makrial the APPLICATIONfi, AUTHORIZATIONS, fact that the instruction or courses of study are of- FEES, AND PROTECTIONS fered by correspondence or home study.

78 ership of the institution, a new owner, or governing body, must at least 20 days prior to the shift in con- § 94330 Application for trol or change in ownership, apply for a new autho- authorization to operate rization to operate, and in the event of failure to do so, the institution's authorization to operate shall (a)Each institution desiring to operate in this terminate. Application for a new authorization to state shall make application to the superintendent, operate by reason of a shift in control or a change in upon forms to be provided by the superintendent. ownership of the institution shall be deemed an ap- The application shall include, as a minimum, at plication for renewal of the institution's authoriza- least the following: tion to operate. The shift in control, or change in (1) A catalog published or proposed to be published ownership of the institution may not be made until by the institution containing the information spe- the application is approved. "Ownership," for pur cified in the criteria promulgated by the superin- poses of this section, shall be deemed to mean own- tendent. The catalog shall include specific datos as ership of a controlling interest in the institution. or to whei-. the catalog applies. in the event the institution is owned or controlled by a corporation or other legal entity other than a (2) A description of the institution's placement as- natural person or persons. ownership of a control- sistance, if any. ling interest in the legal entity owning or control- (3) Copies of media advertising and promotional ling such institution. literature. (f) At least 60 days prior to the expiration of an au- (4) Copies of all student enrollment aoreement or thorization to operate, the institution shall com- contract forms and instruments evidencing indebt- plete and file with the superintendent an applica- edness. tion form for renewal of its authorization to operate.Said renewal application shall be reviewed (5) The name and California address of a desig- and acted upon as provided herein above. nated agent upon whom any process, notice or demand may be served. (g) Institutions accredited by an agency recognized by the United States Department of Education are (b) Each application shall be signed and certified to not required to file the information described in under oath by the principal owners of the school parts (3) and (4) of subdivision (a) of this section. (those who own at least 10 percent of the stock). (h) Catalogs submitted by accredited institutions (c)Following review of such application and any shall be deemed to meet the requirements of para- other further information submitted Ly the appli- graph (1) of subdivision (a) of this section, unless cant, or required in conformity with Sections 94310 the superintendent finds that the catalog does not and 94311, and such investigation of the applicant meet the standards any criteria of the institution's as the superintendent may deem necessary or ap- accrediting agencyIn such case. the superinten- propriate, the superintendent shall either grant or dent may require modification of the catalog to deny authorization Cu operate to the applicant. bring it into compliance with the standards and cri- The provision of Chapter 5 (commencing with Sec- teria of the institution's accrediting agency. tion 11500) of Part 1 of Division 3 of Title 2 of the Government Code shall be applicable to any determination of the superintendent made pursuant to this section. § 94331 Private postsecondary education administration fund; (d) The term for which authorization is given shall credits, appropriaton, fees not extend for more than three years, and may be issued for a lesser period of time The superintendent shall establish and maintain a (e) The authorization to operate shall be issued to Private Postsecondary :ducation Administration the owner, or governing body, of the applicant insti- Fund.All fees collected pursuant to this section tution, an shall be nontransferable. In the event of shall be credited to this fund, along with any inter- a contemplated shift in control, or a change in own- est on the money, for administration of the pr.,vi-

79 sions of this chapter. The money in the fund is con- (b) For authorization to issue degrees pursuant to tinuously appropriated to the State Department of subdivision (c) or (d) of Section 94310: Education without regard to fiscal years. However, if the Legislature makes an appropriation for the (1) One thousand five hundred dollars ($1,500) support at the Office of Private Postsecondary Edu- for an institution's original application. cation in the Budget Act of any fiscal year, the (2)Five hundred dollars ($500) for an institu- amount for support of the Office of Private Postsec- tion's annual renewal. ondary Education experded from the Private Post- (3) Two hundred dollars ($200) for an institu- secondary Education Administration Fund during tion's change of ownership. that fiscal year shall not exceed the amount appropriated by the Budget Act. (c)For authorization to issue diplomas or offer courses pursuant to subdivision (c) of Section For the approval or authorization of private institu- 94311: tions operating under this chapter, the superintendent shall charge an amount not exceeding theac (1) (A) Four hundred dollars ($400) for a new in- tual costs of approving or authorizing the private stitution. institutions. However, in no case shall these fees (B) Two hundred fifty dollars ($250) for an insti- exceed the fee schedule in this section, excel): that tution converting from approval pursuant to sub- such maximum amounts may be increased by a per- division (d) of Section 94311. centage which reflects ar increase in the Consumer Price Index, all items of the Bureau of Labor Statis- (C) Two hundred dollars ($200) for a new or con- tics of the United States Department of Labor, mea- verted institution of an administrative family. sured for the calendar year preceding the fiscal (2) (A) Two hundred dollars ($200) for an annual year to which it applies. If the actual costs incurred renewal of a new or converted institution. exceed the proceeds of the maximum amountso computed, the superintendent may further increase (B) One hundred dollars ($100) for an annual re- the maximum fee up to the amount of the actual newal of an administrative family institution. costs incurred, with the approval of the council. (d) For a-lroval to issue diplomas or offer courses The superintendent shall annually publish a sched- pursuant to subdivision (d) of Section 94311: ule of the current fees to be charged pursuant to this section and shall make such schedule general- ( 1) (A) Five hundred dollars ($500) fora new in- ly available to the public. stitution. The following fee schedule shall govern the fees to (B) Two hundred fifty dollars ($250) for a new in- be paid by private institutions operating under this stitution of an administrative family. chapter: (C) Two hundred dollars ($200) for a new institu- (a) For approval to issue specified degrees pursuant tion of a nonprofit public benefit corporation, or- to subdivision (b) of Section 94310: ganized pursuant to Part 2 (commencing with Section 51100) of Division 2 of Title 1 of the Cor- (1) Fifteen hundred dollar ($1,500) foran institu- porations Code, if such education is limited to in- tion's original application. struction in employment and skill training and if (2) Five hundred dollars ($500) for an institu- it is offered at no charge to those persons receiv- tion's annual renewal. ing such education. (3) Two hundred dollars ($200) for an institu- (2) (A) Two hundred twenty-five dollars ($225) tion's change of ownership. for an institution's annual renewal (4) One hundred fifty dollars ($150) for an insti- (B) One hundred dollars ($100) for an annual re- tution's change of location. newal of an institution of an administrative family and for an annual renewal of an institution (5) Five hundred dollars ($500) for an institu- described in subparagraph (C) of paragraph (1) of tion's additional degree title. subdivision (d).

80 1 ''"(...j (3) Two hundred dollars ($200) for an institu- § '32. Complaint alleging tion's change of ownership. violation of chapter (4) One hundred fifty dollars ($150) for ars, insti- (1)Any person claiming damage or loss as a result tution's change of location. of any act or practice by a postsecondary educa- (5)One hundred dollars ($100) for an institutional institution or its agent, or both, which is a tion's additional course. violation of this chapter or of the rules and regula- (e) For an annual filing by an ownership to offer cations prcinulgated hereunder, may file with the su- reer-related education pursuant to Section 94315: perintendent a verified complaint against such in- Two hundred dollars ($200). stitution or against its agent, or both.The complaint shall set forth the alleged violation and shall (f)For purposes of this section, "administrative contain such other information as may be required family" refers to two or more institutions under by the superintendent. common ownership, and the ownership maintains centralized administration, records, and reporting (2) The superintendent shall investigate any such at one California location, and has at least a five- complaint and may, at his or her discretion, at- year history of private postsecondary education op- tempt to effectuate a settlement by persuasion and erations in California. conciliation. The superintendent may consider a complaint after 10 days' written notice by regis- (g) For evaluation of an applicant for a certificate tered mail, return receipt requested, to such insti- of authorization for service, issued pursuant to par- tution or to such agent, or both, as appropriate. agraph (3) of subdivision (d) of Section 94311, the original and renewal applications for a three-year (3) If, upon all the evidence at a hearing, the super- authorization shall be accompanied by a twenty- intendent shall find that an nstitution or its agent, five dollar ($25) fee. or both, has engaged in or is engaging in, any act or practice which violates the provisions of this chap- (h) For a private 'school agent's permit pursuant to ter or the rules and regulations promulgated here- Section 94333: Twenty-five dollars ($25) annually under, the superintendent shall report such evi- per applicant. dence to the Attorney General. The superintendent (i) For agencies with three or fewer employees: may also, as appropriate, based on his or her own investigation or the evidence adduced at Such hear (1)Seven hundred fifty dollars ($760) for an ing, or both, commence an action to revoke an insti- original application. tution's approval or authorization to operate or an (2) Five hundred dollars ($500) for the agency's agent's permit. annual renewal (3) Five hundred dollar? $500) for the "y's change of ownership. § 94333. Agent's permit

(j) For agencies with four or more employees- (a)Notwithstanding any other provi ion of this (1) One thousand five hundred dollars ($1,500) chapter concerning agents, the owner of at least 51 for an original application. percent of the equitable interest in an institution shall be exempt from this section by virtue of nav- (2)One thousand dollars$1,P00for the ing filed for a permit '.o operate under Section agency's annual renewal. 94310 and 94311. (3) Cae thousand dollars ($1,000) for the agen- Any agent, as defined by subdivision (a) of Section cy's change of ownership. 94302, must hold a vaAid permit issued by the su- (k) This section shall not apply to any agency re- perintendent. Administrators or faculty, or both, cruiting solely for institvti-..s described in Section who make informational public appearance, but 94310.1. whose primary task is not to serve as a paid recruit- er, are exempted from this section.

81 The application for such a permit shall be furnished the time the permit was issued, would have been by the superintendent and shall include the follow- grounds for denial of the permit. ing: (e) The permittee shall carry the permit with him (1.) A statement signed by the -.pplicant that he or or her for identification purposes when engaged in she has read the provisions of this chapter and the the solicitation of sales and the selling of courses of rules and regulationr promulgated pursuant study away from the premises of the school. thereto. (f) A temporary permit shall be issued when a com- (2) A surety bond making provision for indemnifi- plete application is riled.The temporary permit cation of any person for any material loss suffered will automatically expire when the applicant is no- as a result of any fraud or misrepresentation used tified of the superintendent's decision to issue or in connection with the solicitation for the sale or deny a regular permit.Notification is complete the sale of any course of study. The term of the when the applicant learns of the decision or three bond shall extend over the period of the permit. days after notice of the decision is mailed to the ap- The bond may be supplied by the institutionor by plicant's address stated in the application, which- the person for whom the issuance of the permit is ever occurs first. The superintendent may deny or sought and may extend to cover individuals sepa- terminate any temporary permit at any time upon rately or to provide blanket coverage for all persons receipt of any information for which a regular per- to be engaged as representatives of the institution. mit might be deided. Such termination is effective Such bond shall provide for liability in the penal when the applicant is notified as stated above. sum of one thousana dollars ($1,000) for each agent to whom coverage is extended by its terms. The judgment rendered is any action maintained for any material loss suffered as a result of any Neither the principal nor surety on a bond may ter- fraud or misrepresentation used in connection with minate the coverage of the bond except upon giving the solicitation for the sale or the sale of any course 30 days' prior written notice to the superintendent. of study away from the premises of the school shall, (3) A fee as required by Section 94331. if the plaintiff is the prevailing party, include court cysts including a reasnable attorney'r, fee fixed by (b) An agent representing more than one institu- the court. tion must obtain a separate agent's permit for each institution represented; provided, that when an The provisions of Chapter 5 (commencing with Sec- agent represents institutions having a common tion 11500) of Part 1 of Division 3 of Title 2 of the ownership, only one agent's permit shall be re- Government Code shall be applicable to any deter- quired with respect to said institutions.In the mination of the superintendent made pursuant to event any institution which the applicant intends this section. to represent does not have authorization to operate The issuance of a permit pursuant to this section in this state, said application shall be accompanied shall not be interpreted as, and it shall be unlawful by the information required of institutions making for any individual holding any such permit to ex- application for such authorization. pressly or impliedly represent by any means what- (c) No person shall be issued a permit except upon ever, that the superintendent has made any evalua- the submission of satisfactory evidence of good tion, recognition, accreditation, or endorsement of moral character. any course of study being offered for sale by the individual (d) A permit shall be valid for the calendar year in which it is issued, unless sooner revokedor sus- It shall be unlawful for any individual holding a pended by the superintendent for fraud or misrep- permit under this section to expressly or impliedly resentation in connection with the solicitation for represer , by any means whatever, that the issu- the sale of any course of study, or for the existence ance of the permit constitutes an assurance by the of any condition in respect to the permitteeor the superintendent that any correspondence course of school he or she represents which, if in existence at study being offered for sale by the individual will provide and require of the student a course of education or training necessary to reach a professional,

82 1 Lu educational, or vocational objective, or will result Instruction, State Department of Education, Sacra- in employment or personal earnings for the stu- mento, California 94244-2720." dent. (E) A statement to the effect that the institution or institutions to which the prospective student is referred by the agency has the obligation to make $ 94334. Agency authorization; application; available to the student a catalog or brochure con- inspection; agent permit exemption; decep- taining information describing all of the following: tive practices; institution involvement with (i) The courses offered. unauthorized agency; exemption (ii) Program objectives. (a) Except as otherwise specified in subdivision (g), (iii) Length of program. any agency, as defined by subdivision (a) of Section 94302, shall be required to hold a valid authoriza- (iv) The faculty and their qualifications. tion issued by the superintendent. The application (v) Schedule of tuition, fees, and all other charges for an authorization shall include all of the follow- and expenses necessary for the completion of the ing: course of study. (1) A current financial statement prepared by a (vi) Cancellation and refund policies. certified public accountant. (vii) Total cost of tuition over the period needed to (2) Evidence of a surety bond making prevision for complete the student's education. indemnification of any person for any material loss (viii)For vocational training programs for which suffered as a result of any fraud or misrepr, _Inta- specific placement claims are made, placement tion used in the connection with the solicitation for data, including program completion rates, place- the sale or the sale of any course of study. The term ment rates, and starting oalaries. of the bond shall extend over the period of the authorization., The bond shall provide for liability in (ix) Other material facts concerning the institution the penal sum of one hundred thousand dollars and the program or course of instruction that are ($100,000) for each agency to which coverage is reasonably likely to affect the decision of the stu- tended by its terms. Neither the principal nor sure- dent to enroll in the institution. ty on a bond may terminate the coverage of the (4) Identification of all employees of the agency and bond except upon giving 30 days' prior written no- their titles. tice to the superintendent. (5) Identification of all owners and if the entity is a (3) A copy of the student disclosure statement to be corporation the identification of all persons possess- read and signed by all prospective students referred ing an interest equal to, or in excess of, 10 percent. to institutions by as agencyThe student disclosure statement snail include, but not be limited to, (6) Identification of all vendors of educational ser- all of the following: vices for which the agency provides recruitment services (A) A statement to the effect that no promise of employment has been made by the agency. (7) A signed statement by the applicant that all employees engaged in recruitment activities will be (B) A statement to the effect that the repayment of required to read Section 94320 any debt incurred by a student in connection with his or her education will be the sole responsibility (b) Within 15 days of receipt vi a completed appli- of the student. cation and prior to issuance of an authorization a representative of the superintendent shall inspect (C) The amount and terms of any fee to be paid by the applicant agency and verify the application. the student to the agency. Within 30 days of the inspection the superinten- (D) A verbatim statement, as follows: dent shall issue the authorization for a one-year period, subject to annual renewal at the end of that "Any questions or problems concerning this agency period, or deny the application. should bv: directed to he Superintendent of Public

1&1 83 (c) Any employee of an authorized agency engaged erned by the provisions of this chapter unless such in student recruitment activities of an authorized agent, who enrolled persons to whom educational agency is exempt from the permit requirements of services were to be rendered or to whom degrees or Section 94333. diplomas were to I.-- anted pursuant to the provisions of this chapter, held a valid agent's permit Neither the agency nor any of its employees (d) at the time of execution of the note, other instru- shall engage in the sales, collection, credit, or other ment of indebtedness, or contract. practices of any type that are false, deceptive, misleading, or unfair. (c) Any school or institution governed by the provisions of this chapter extending credit or lending te) Any institution authorized or approved under money to any person for tuiti .1, fees, or any this chapter shall cease any and all recruitment ac- charges whatever for educational services to be tivities involving the agency upon action by the su- rendered or furnished shall cause any note, instru- perintendent to revoke or deny an agency authori- ment, or other evidence of indebtedness taken in zation. Failure of the institution to do so upon pre- connection with such loan or extension of such cred- sentation of notice of the superintendent's action it to be conspicuously marked on the face thereof shall be cause to cieny or revoke any authorization with the following notice: or approval held by that institution. (f) Any agency engaged in recruiting activities on NOTICE January 1, 1989, may continue its recruiting activi- ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT ties but shall make an application to the superin- IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH tendent as required by this section within 30 days THE DEBTOR COULD ASSERT AGAINST THE SELLER of the application becoming available and the su- OF GOODS OR SERVICES OBTAINED PURSUANT HERE- perintendent, within 30 days of the receipt of the TO OR WITH THE PROCEEDS HEREOF. RECOVERY application, shall issue the authorization for a one- HEREUNDER BY THE DEBTOR SHALL NOT EXCEED year period or deny authorization. Thereafter, the AMOUNTS PAID BY THE DEBTOR HEREUNDER. agency shall possess a current authorization in order to continue to operate. In the event such school or institution fails to do so, it shall be liable for any damage or loss suffered or (g) This section shall not apply to any agency re- incurred by any subsequent assignee, transferee, or cruiting solely for institutions described in Section holder of such evidence of indebtedness on account 94310.1. of the absence of such notification.

;d)Notwithstanding the presence or absence of such notification and not wishstanding any agree- $ 94335.Notes, other instruments of ment wherein the student waives the right to assert indebtedness, n- contracts relating to any claim or defense, the school or institution mak- payment for educational services ing such loan or extending such credit and the transferee, assignee, or holder of such evidence of (a) No note, other instrument of indebtedness, or indebtedness, shall be subject to all defenses and er- contract relating to payment for educational claims which could be asserted against the school vices shall be enforceable in the courts of this state or institution which was to render or furnish such by any institution within or outside this state gov- educational services by any party to such evidence erned by the provisions of this chapter unless at the of indebtedness or by the person to whom such edu- time of execution of such note, other instrument cational services were to be rendered or furnished indebtedness, or contract, Said institution has a up to the amount remaining to be paid Caerenn. valid approval or authorization pursuant to the provisions of this chapter. (b) No note, other instrument of indebtedness, or contract relating to payment for educational ser- § 94336 Violation of provisions vices shall be enforceable in the courts of this state by any institution within or outside this state gov- Any person, firm, association, partnership, orcor- poration willfully violating subdivision ( i) of Sec-

84 tion 94320 is guilty of a felony and is punishable by imprisonment in the state prison, or by a fine of not less than one thousand dollars ($1,000), r- by both § 94339 Duties of attorney general such fine and imprisonment. (a) The Attorney General: Any person, firm, association, partnership, or corporation which willfully violates any other provi- (1) May make such investigations as may be neces- sion of this chapter, is punishable, for a first of- sary to carry out the provisions of this chapter, in- fense, by imprisonment in the county jail for not ex- cluding, but not limitedo, investigations of com- ceeding one year, or by a fine not exceeding one plaints which are under eview by the council pur- thousand dollars ($1,000), or both; and any second suant to paragraph (6) of subdivision (f) of Section or subsequent offense shall be a felony punishable 94304; by imprisonment in the state prison, or by a fine of (2) And the superintendent may, jointly, bring. not less than one thousand dollars ($1,000), or by such actions as may be necessary to enforce the pro- both such fine and imprisonment. visions of this chapter, including, but not limited to, civil actions for injunctive reliefIn actions brought pursuant to this paragraph, the superin- § 94337 Institution with prior approval tendent shall be represented by the Attorney Gen- or authorization to operate eral. (b) The Attorney General shall represent the su- Any institution approved or authorized to operate perintendent in any administrative proceedings prior to the effective date of the act that added this arising under this chapter. chapter shall retain such authorization until January 1, 1979, without authorization or approval (c) Nothing in this section or this chapter shall be of the superintendent unler deemed to preclude the Attorney General from: (a) Such authorization or approval is revoked by (1) Bringing cny actions on behalf of the people as the superintendent or suspended by operation of he is empowered by law to bring, including, but not law pursuant to the provisions of this section limited to, actions based upon alleged violations of Section 17500 of the Business and Professions Code (b) Such authorization or approval expires and is or Section 3369 of the Civil Code; subject to renewal. (2) Conducting such investigations as may be nec- (c) The institution ceases to exist or provide instruc- essary to determine whethr r there have been violation. tions of the provisions of law specified ir. paragraph After January 1, 1982, all institutions must either (1) of this subdivision: be authorized or approved by the superintendent in (3) Conducting any such investigations as he is au- conformity with this chapter. thorized by law to conduct including, but not limited toir vestigations authorized pursuant to Sec- tion 11180 of the Government Code * 94338 Contract with district, superintendent or other agency

Any institution approved or authorized by the su- 94341 Severability clause perintendent pursu 'lnt to the provisions of this chapter may contract, with any .:hoot district, If any section, subdivision, paragraph, subsection, county superintendent, community college district, sentence, clause, or phrase of this chapter is. for or the governing body of an agency maintaining a any reason, held to be unconstitutional, such decision shall not affect the validity of the remaining regional occupational center or program, subject to Section 8092. portions of this chapter. The Legislature hereby de- clares that it would have passed this chapter. and each section, subdivision, paragraph, subsection,

18.; 85 giiimmiommi sentence, clause or phrase thereof, irrespective of solely for the payment of valid claims to students. the fact that any one or more of the sections, subdi- In no event shall assessments be levied if, on June visions, paragraphs, subsections, sentences, 30 of any year, the balance in the fund exceeds sev- clauses, or phrases are declared to be unconstitu- en hundred fifty thousand dollars ($750,000). How- tional. ever, regardless of the balance in the fund, assessments shall be made on any newly approved or authorized institution.Notwithstanding Section 13340 of the Government Code, the moneys so de- § 94342 Student tuition recovery fund; posited in the Student Tuition Recovery Fund are payment; regulations and conditions 'ontinuously appropriated to the State Department of Education for the purpose of paying claims to stu- The superintendent shall establish and maintain a dents pursuant to Section 94342. Not more than Student Tuition Recovery Fund for the purpose of fifty thousand clo;lsirs ($50,000) per fiscal year shall reiieving or mitigating pecuniary losses suffered by be use(' for the administration of the tuition recov- any California resident who is a student of an ap- ery program authorized by Section 94342 and this proved or authorized postsecondary educr tiocal in- section. The interest earned on money in the fund stitution which charges prepaid tuition, its a'suit shall be credited to the fund. Institutions which are of such institution ceasing its operation fel any rea- accredited by a regional accrediting association rec- son. Th3 Council for Private Postsecondary Educa- ognized by the United States Department of Educa- tional Institutions acting in its established capacity tion, or which meet the student tuition indemnifi- and relationship may offer advice with regard to cation requirements of a California state agency, or the administration of this section. which dera3nstrate to the superintendent that an Payments from the fund to any student shall be at acceptable alternative method of protecting their the discretion of the superintendent and shall be students against loss of prepaid tuition has been es- subject to such regulations and conditions as the tablished, shall be exempted from the provisions of superintendent shall prescribe. The provisions of this section. Chapter 5 (commencing with Section 11500) of Part In the event of a closure by any institution autho- 1 of Division 3 of Title 2 of the Government Code rized, or approved under this chapter, any assess- shall be applicable to any determination of the su- ments which have been made against such institu- perintendent made pursuant to this section. tion, but have not been paid into the State Trea- sury, shall he recovered, or any payments from the Student Tuition Recovery Fund to students on be- 94343 Annual assessments; amount; half of any such institution may be recovered, by appropriate action taken by the Superintendent of payment; disposition; exemptions, collection Public Instruction. The moneys so deposited in the The superintendent shall assess each institution Student Tuition Recovery Fund shall be exempt which collects any moneys in advance of rendering from execution and shall not be the subject of litiga- services an amount equal to one-tenth of 1 percent tion or liability on the part of creditors of such institutions or students. of the total course cost for each stuuent newly enrolled. The assessment per student shall be not less than one dollar ($1), and not more than four dollars ($4). In addition, for each student who prepays an I 94343.2 Violation of institution an amount in excess of four thousand 94343; consequences dollar ($4,000), the superintendent shall assess the institution one-half of 1 percent of the prepaid (a) Any institution which willfully violates the amount whicl exceeds four thousand dollars provisions of Section 94343 shall be subject to all of ($4,000). The assessments shall be paid into the the following: State Treasury and credited to the Student Tuition Recovery Fund, and the deposits shall be allocated, (1) The institution shall lose all rights to enforce except as otherwise provided for in this chapter, the terms of any contract or agreement arising from

86 1 t: the transaction in which the violation occurred. borrower no longer intends to honor the obligation (2) The institution shall refund to the aggrieved to repay, provided that this failure persists for 180 student any fees which it has collected from that days for a loan repayable in monthly installments, student. or 240 days for a loan repayable in less frequent installments. (b) An institution's willful violation of the provi- siuns of Section 94343 may be grounds for the revo- (b) The regulations adopted pursuant to subdivi- cation of that institution's approval or authoriza- sion (a) shall provide that the services withheld tion to operate in this state. may be provided during a period when the facts are in dispute and when the student or former student demonstrates to either the governing board or other appropriate governing authority of the California § 94343.5 Disclosure of postsecondary educational institution as defined in guaranteed or insured loans subdivision (1) of Section 94302, or the Student Aid- Commission, or both the Student Aid Commission Students enrolling in institutions which come un- and the appropriate entity or its designee, that rea- der provisions of Sections 94342 and 94343, shall sonable progress has been made to repay the loan or disclose in writing, if applicable, the source of any that there exists a reasonable justification for the and all guaranteed or insured loans granted for the delay as determined by the institution. The regula- purposes of paying tuition to s "ch institution.In tions shall specify the services to be withheld from the event of a closure of any such institution, the the student and may include, buf-e not limited to, Superintendent of Public Instruction shall provide the following: any lending institution which is the source of any (1) The provision of grades. guaranteed or insured student loan with the name of students maintaining loans with any such lend- (2) The provision of transcripts. ing institution. (3) The provision of diplomas. The adopted regulations shall not include the withholding of registration privileges. § 94343.6 Student loans; withholding (c' When it has been determined that an individual services for persons in default; "default"; is in default on a loan or loans under either of the regulations; notice to institutions of loan programs specified in subdivision (a), the Stu- individual in default; duties of guarantors dent Aid Commission shall give notice of the de- tault to all institutions through which that individ- (a) The governing board or other governing author- u-d acquired the loan or loans. ity of any California postsecondary educational institution as defined in subdivision (1) of Section (d) Guarantors, or those who act as their agents or 943l2 shall adopt regulations providing for the act under their control, who provide information to withholding of institutional services from students postsecondary educational institutions pursuant to or former students who have been notified in writ- this section, shall defend, indemnify, and hold ing at the student's or former student's last known harmless the governing board or other governing address that he or she is in default on a loan or authority of the institutions from action resulting loans under either of the following loan programs fro:n compliance with this section when the action arises as a result of incorrect, misleading, or un- (1) Guaranteed Student Loan program. timely information provided to the postsecondary (2) Supplemental Loan for Students program. educational institution by the guarantors, their "Default," for purposes of this sectio..i, means the agents, or those acting under the control of the guarantors. failure of a borrower to make an installment payment when due, or to meet other terms of the prom- issory note under circumstances where the guarantee agency finds it reasonable to conclude that the

18J 87 * 94344 Rules and regulations educational institutions.*

The superintendent with the advice of the Council for Private Postsecondary Educational Institutions, shall adopt rules and regulations necessary to implement Section 94342 and 94343. ARTICLE 5 TERMINATION

§ 94345 Review and report to legislature § 94350 Termination date of chapter Prior to September 1, 1989, the California Postsec- This chapter shall become inoperative ondary Education Commission shall review and on June 30, 1991, and, as of January 1, 1992 is repectivd, unless evaluate all of the following, and shall report to the a later enacted statute, which becomes effective on Legislature on the results of this review and evaluation: or before January 1, 1992, deletes or extends the dates on which it becomes inoperative and is re- (a) The implementation of this chapter by the State pealed. Department of Education. (b) The effectiveness of subdivisions (b), (c), and (d) "Subdivisions (13), (c). and (d) of Section '34310" have been of Section 94310 in protecting the integrity of de- renumbered as subsections 12),13), and (4), covering appro- grees and diplomas issued by private postsecondary ved institutions authorized colleges and universities, and authorired scnools of theology.

88 Appendix B Prohibited Activities

NOTE: The following text is reproduced from West's $32381 Degrees or diplomas; preparation, Annotated California Codes, Education Code Sections manufacture or printing without consent 18000 to 32999. Volume 26B. 1989 Cumulative Poc- of school authority; misdemeanor ket Part.St. Paul: West Publishing Co., 1989, pp. 137-138. Any person who prepares, manufactures, or prints, or who offers to prepare, manufacture, or print. for a - Article 9 is a portion of Chapter 3, Miscellaneous, i, fee or other compensntion, any document purporting the Code's Title 1, Division 1 on General Education to be a degree or diploma without written authori- Code Provisions. zation to do so from the school authority shall be guilty of a misdemeanor. As used in this section, "school authority" means any of the following: ARTICLE 9 (a) A governing board of a school district that issued PROHIBITED ACTIVITIES or reissued the degree or diploma, as the case may be. (b) A private school that issued or reissued the de- §32380 Definitions gree or diploma, as the case may be. (c) Any public or private college, university, or other As used in this article- institution of higher learning that issued or reissued the degree or dip' ma, as the case may be. (a) "Person" means any individual, partnership, corporation, association, firm, or public board, ar ency, Nothing in :his section shall prohibit a person from or entity. reproducing, or having reproduced, for his personal use a degree or diploma issued to him by a school au- (b) "Prepare" means to put into condition for intend- thority. ed use. (c) "Degree" means any "academic degre?." or "honorary degree" or title of any designation, mark, ap- $32382 Degrees or diplomas; pellation, series of letters or words such as, but not purchase and sale; fraudulent use limited to, associate, bachelor, master, doctor, or fellow which signifies, purports, or is generally taken (a) Sell, barter, offer to sell or barter, or conspire to to signify satisfactory completion of the require- sell or barter, any di2loma or degree as defined in ments if an academic, educational, technological, or this article. profess,onal program of study or is an honorary title conferred for recognition of some meritorious (b) Buy, obtain by barter, attempt to buy or obtain achievement. by barter, or conspire to obtain by barter or buy. any diploma or degree. (d) "Diploma" means any diploma, certificate, transcript, document, or other writing in any language (c) Use in connection with any business, trade, pro- other than a degree representing that an individual fession, or occupation, or attempt to use in connec- has com....eted any course of study. tion with any business, trade, profession or occupation, or conspire to use in connection with any business, trade, profession or occupation, any degree or

18; 89 diploma, which has been purchased, obtained by $ 32383.Willful violations of $ 32382; barter, fraudulently or illegally issued, illegally ob- misdemeanor; punishment tained, cow...erfeited, materially altered, or found. Any person willfully violating any provision of Sec- (d) Use in connection with a business, trade, profes- tion 32382 is guilty of a misdemeanor and is punish- sion, or occupation, or give or receive, any degree or able by imprisonment in the county jail, or by a fine diploma which has been purchased, obtained by bar- of not more than one thousand dollars ($1,000) or by ter, fraudulently or illegally issued, illegally ob- both such fine and imprisonment. tained, counterfeited, materially altered, or found.

(e) Attempt to use in connection with a business, trade, profession, or occupation, or attempt to give or $ 32384. Enforcement of article; relief receive, any degree or diploma, which has been pur- Any court of competent jurisdiction is hereby author- chased, obtained by barter, fraudulently or illegally ized to grant such relief as is necessary to enforce the issued, illegally cbtained, counterfeited, materially altered, or found. provisions of this article, including the issuance of any injunction. (n Conspire to use in connection with a business, trade, profession, or occupation, or conspire to give or receive, any diploma or degree evidencing the un- §32385.Injunctions dertaking or completion of any course of study or scholastic achievement attained if, in fact, such Actions for injunction under the provisions of this course of study has not been undertaken nor com- article may be brought in the name of the people of pleted or if such scholastic achievement has not been the State of California upon their own complaint or attained. upon the complaint of any person, or in the name of any authorized public or private school, college, university, or other authorized institution of learning, acting on its own behalf or the general public.

90 1 L Appendix C Enrollments and Degrees

NOTE: This appendix list the number of students enrolled in Fall 1987 and thenumber of degree awarded during 1986-87 by different types of California's privately supported degree-grantinginstitu'ions. The asterisks on pages 91-94 indicate accreditation by the Western Association of Schools and Colleges.

Fall 1987 Enrollment 1986-87 Decrees Awarded Type of Institution First Full. Part Use-ikons- Proles- Doc California Accrriited Institutions Time Time rota, afa or urmoat :oraterata, American Academy of Dramatic Arts/West (Pasadena* No Data Amencan Baptist Seminary of the West (Berkeley) 38 58 96 3 24 7 34 American Conservatory Theatre (San Francisco)* 72 19 9, 10 10 American Film Institute Center for Advanced Film Studies (Hollywood) 161 00 161 81 81 Armstrong University (Berkeley) No Enrollment Data 11 32 71 114 Art Center College of Design (Pasadena)* 1.283 0 1,283 285 4 289 Azusa Pacific University (Azusa) 1,694 1,0422,736 No Degree Data Bay Valley Tech ( Santa Clara/ No Enrollment 121,Ata 209 209 Bethany Bible College (Santa Cruz)* 442 102 544 8 74 82 Biola University (La Mirada)' 614 0 614No Degree Data Brooks College (Long Beach) 779 0 779 312 312

Brooks InstatuteSchool of Photographic Art &Science (Santa Barbara) 614 0 614 0 117 1 117 California Baptist College (Riverside)' 543 116 659 115 10 115 California College for Health Sciences ( National City) No Data California College of Arts and Crafts (Oakland)* 7483521,100 153 21 174 California College of Podiatric Medicine ( San Francisco)* `to Data California Family Study Center (North Hollywood) 250 3 253 29 29 California Institute of Integral Studies (San Francisco)* No Data California Institute of Technology ( Pasadena)* 1,822 0 1,822 176 128 147 451 California Institute of the Arts (Valencia)' 831 4 835 120 89 209 California Luthern University (Thousand Oaks)' 1,322 1,1262,448 259 157 416 California School of Professional Psychology (Berkeley)' 337 102 439 33 43 California School of Professional Psychology (Fresno)' 183 22 205 30 19 49 California School of Professional Psychology ( Los Angeles* 309 133 442 13 60 104 California School of Professional Psychology (San Diego)' No Enrollment Data 40 26 66 California Western School of Law (San Diego) No Data Chapman College (Orange)' 1,541 6122,153 No Degree Data Chapman College Antelope Valley Rec (Lancaster) No Data Christ College Irvine (Irvine)' 519 50 569 No Degree Data Christian Heritage College (El Cajon* 356 37 393 i6 66 Church Divinity School of the Pacific (Berkeley )* 73 34 107 2 22 24 Claremont Graduate School and University Center (Claremont)' 331 1,292 1,623 321 88 409 Claremont McKenna College (Claremont)' 849 8 657 203 203 Cleveland Chiropractic College (Los Angeles) 500 9 509 i0 122 182 Cogswell College (Cupertino)* 96 153 249 13 35 48 Coleman Colle;e (La Mesa) No Enrollment Data 102 108 11 221

91 Fall 1987 Enrollment 1986-87 Degrees Awarded

Tyne of Institution First Full- Part Asso Bache - Profes- Doe California Accredited Institutions (continued) Time Tune Total nate or Master soul :orate Total

College of Notre Dame (Belmont)* 474 587 1.061 135 107 242 Cc:lege of Oceaneering (Wilmington)* No Data College of Osteopathic Medicineof the Pacific (Pomona) 412 0 412 4 100 104 Columbia College (Los Angeles) 220 25 245 15 45 60 Condie Junior College (Campbell)* No Data DQ University Davis)* 88 178 266 7 7 Deep Springs College (Deep Springs)* No Data Denver Conservative Baptist Seminary (Alta Loma) No Data Dominican College of San Rafael (San Rafael)* 449 265 714 1'5 12 127 Dominican School of Philosophy and Theology ( Berkeley)* 64 36 100 4 10 17 31 Don Bosco Technical Institute (Rosemead)* 270 53 323 114 114 Edison Technical College i Northridge ) No Data

Empire College (Santa Rosa) Decline to ParticipaLe Fashion Institute of Design & Merchandising (4 Locations)* No Enrollment Data 909 909 Fieldings Institute, The (Santa Barbara)* No Data Franciscan School of Theology (Berkeley)* 54 42 96 16 6 22 Fresno Pacific College ( Fresno)* 486 414 900 83 51 134 Fuller Theological Seminary (MenloPark) 365 1,707 2,072 211 177 100 488 Fuller Theological Seminary (Pasadena)* No Data Fuller Theological Seminary. Westmont College (Santa Barbara) No Data Glendale University College of Law (Glendale) 0 93 93 16 16 Golden Gate Baptist Theological Seminary (Mill Valley)* Decline to Participate Golden Gate University (eight locations) 1,504 7,778 9,282 3 289 1,873 152 9 2,326 Golden Gate University Center (Monterey) No Data Graduate Theological Union (Berkeley)* 352 25 377 26 21 47 Grantham College of Engineering (Los Alamitos) Decline to Participato Harvey Mudd College (Claremont) 548 8 556 124 14 138 Heald Business College (eight locations* Decline to Participato Heald Institute of Technology (five locations* Decline to Participato Heald 4 C's Business College (Fresno)* Decline to Participato Hebrew Union College Jewish Institute of Religion ( Los Angeles)* Holy Names Collego (Oakland)* 296 317 613 98 74 172 Humphrys College (Stockton)* 260 193 453 No Degree Data ITT Technical Institute (seven locations) No Data Jesuit School of Theology at Berkeley I Berkeley )* 104 46 150 15 23 9 47 John F. Kennedy University (Grinds)* 598 1,409 26 319 28 373 Kelay -Jenny Business College (San Diego) No Data L.I.F.E. Bible College ( Los Angeles) 245 155 400 7 70 74 Life Chiropractic College-West (San Lorenzo) 4415 30 145 115 115 Lincoln Law School of Sacramento (Sacramento) No Data Loma Linda University (two locations* 3.110 1.0774.187 149461 241 212 18 1.081 Los Angeles College of Chiropractic (Whittier) 993 0 993 74 186 260 Louise Salinger Academy of Fashion (San Francisco) No Data Loyola Law School (Los Angeles) No Data Loyola Marymount University ( Los Angeles)* 5,184 1,2466,430 794 238 381 1,413

92 Fall 1987 Enroment 1986.87 Degrees Awarded

Type of Institution F-rat Full- Part Asso Bache. P-otes Doc- California Accredited Institutions (continued) Tuna Time Total coats or Master .-E211:L 'orate Tota

Manor Fashion Institute (Sacramento) 19 0 19 1 1 Marymount Palos Verdes College (Rancho Palos Verdes 795 2751,070 180 180 Master's College (Newhall)* 672 103 775 52 52 McGeorge Law School (Sacramento) Reports with University of the Pacific Menlo College I Atherton )* 623 12 635 9 65 74 Mennonite Brethren Biblical Seminary (Fresno) 85 37 122 6 9 15 Mills College (Oakland) 956 99 1,055 188 57 245 Monterey College of Law (Monterey) No Enrollment Data 29 29 Monterey Institute of International Studies ( Monterey) 454 83 537 34 183 217 Mount St. Marys College (Los Angeles 967325 1,292 110 152 26 288 National College (Clovis) No Data National Technical School (Los Angeles) No Data National University (eight locations)* 6,122 7,171 13.293 410 1,5181,221 42 3,191 Nazarene Bible College (Pasadena) No Data Nazarene Bible College/Instituto Teologico Naza (Los Angeles) No Data New College of California (San Francisco)* No Data New College of Califoriva School of Law (San Francisco) No Data Northrop University (Los Angeles) 660351 1,011 22258 196 476 Northrop University LA County Education Facility (Downey) No Data Occidental College (Los Angeles)* 1,660 28 1,688 375 11 386 Otis Art Institute of Parsons School of Design (Los Angeles) 704 77 781 2 104 6 112 Pacific Christian College (four locations No Data Pacific Coast College (San Diego) No Data Pacific Graduate School of Psychology (Menlo Park) 55 206 261 8 20 28 Pacific Ludlam Theological Seminary (Berkeley) 84 46 130 4 28 3 35 Pacific Oaks College (Pasadena) No Data Pacific School of Religion (Berkeley) 105 101 206 17 44 10 71 Pacific Union College (Angwin) 1,300 192 1,492No Degree Data Painxr College of Chiropractic-West (Sunnyvale) No Data Patten College lOakland)" 55 129 184 10 10 Pepperdine University (Malibu) 4,668 2,2996,967 802 8761,278 27 1,883 Pitzer College (Claremont) 762 41 803 168 168 Point Loma Nazarene College (San Diego 1,794 2832,077 24b 75 324 Pomona College (Claremont)* 1,407 0 1,407 333 333 Queen of the Holy Rosary College (Mission San Jose) 1 206 207 3 3 Rand Graduate School of Policy Studies (Santa Monica)* 51 0 51 33 53 St. Johns Seminary (Camarillo) No Data St. Johns Seminary College (Camatrillo) 77 0 77 20 20 St. Josephs College (Los Altos) 70 0 70 1 9 10 St, Marys College of California ( Moragai 2,701 4643,165 70700 235 1,005 St. Patricics Seminar (Mealo Park)* 89 3 92 l5 15 Samuel Merritt College of Nursing (Oakland)* 157 32 189 68 72 140 San Francisco Art Institute (San Francisco)* 542 160 702 75 42 117 San Francisco College of Mortuary Science (San Francisco)* No Data San Francisco Conservatory of Music ( San Francisco ) 183 34 217 21 29 50 San Francisco Law School (San Francisco) No Enrollment Data 35 35 San Francisco Theological Seminary (San Francisco 178613 791 7 60 83 150 San Joaquin College of Law (Fresno) No Enrollment Data 30 30 San Jose Bible College (San Jose) 116 74 190 3 24 .31 Santa Barbara College of Law (Santa Barbara) Decline to Participate Santa Clara University (Santa Clara) 4,665 2,887 829659 272 1 1,788a

93 Fall 1987 Enrollment 1986-87 Degrees Awarded Type of Institution Flrst Full Part- Asso- aacha Profit. Doc California Accredited Institution. (continued) Tuns Time Total Nate Or Matter moil torata 12cw,i Saybrook Institute (San Francisco) 181 0 181 3 11 14 School of Theology at Claremont (Claremont) 128 80 20C 14 27 16 57 Scripps Collage (Claremont) 571 17 588 130 130 Simpson College (two locations) 165 33 198 31 8 39 Southern California Center of Golden Gate Seminary (Garden Grove)No Dat St uthern California College (Costa Mesa 7746 175 921 162 7 169 Southern California College of Optometry ( Fullerton) 379 0 379 2 71 97 170 Southern California institute of Architect....e (Santa Monica; No Data Southwestern University School of Law (Los Angeles) 628 350 978 242 242 Stan'ord -nivinaity (Palo Alto 11,892 2,240 14,132 1,628 1,852246 5624.288 Starr King School for the Ministry (Berkeley) 43 0 43 18 18 Studio Seven Fashion Career College (Covina) No Data Thomas Aquinas College (Santa Paula) 137 0 137 28 28 United States Internet* onal University (six locations) 1,678 9012,579 367648 115 1,130 University of Judaism ( Los Angeles)* 93 78 171 16 13 29 University of La Verne ( nine locations) 2,476 3,0525,528 No Degree Data University of Redlands (four locations 2,884 542,938 874217 1.091 University of San Diego and Law School (San Diego 4,462 1,1985,660 709292 263 17 1,281 University of San Francisco (San Francisco 3,758 1,0494,807 1,298601 47 1.946 University of Southern California (24 locations) 19,944 10,560 30,504 2,744 2,955 657 354 (3,740 University of the Pacific (Stockton) 4,581 1,0455,626 648 126 561 15 Universaity of West Los Angeles School of Law (Los Angeles)* 152 541 10 67 77 Ventura College of Law (Ventura) No Data Video Technical Institute (Long Beach) No Data West Coast Christian College (Fresno) No Enrollment Data 24 16 40 West Coast University, Los Angeles (Los Angeles) 828 210 582 2 77 198 277 West Coast University, Orange County (Orange County) 363 91 454 No Degree Data West Coast University Cabrillo High School (Lompoc) No Data West Coast University Computer Sciences Corporation (San Diego)No Data Western State University College of Law (Fullerton) 255 803 1,058 51 296 347 Western State University College of Law (San Diego 72 272 344 16 102 118 Westminster Theological Seminary in California (Escondido)* No Data Westmont College (Santa Barbara) 1,278 13 1,291 197 197 Whittier College (Whittier) 1,247 3241,571 169 110 279 Woodbury University (Burbank) 606 182 788 110 37 147 World College West (Petaluma)* 100 7 107 14 14 Wright Institute, The (Berkeley)* 135 30 165 15 21 36 Yeshiva OHR Elchonon Chabad, West Coast Talmudic (Los Angeles)No Data

Out-of-State Accredited Institutions

Antioch University, San Fracisco (San Francisco( 190 103 293 71 55 126 Antioch University, Los Angeles ( Los Angeles) No Data Antioch University, Santa Barbara :Santa Barbara) No Data Bolin Institute of Technology (Oceanside) Decline to Participate Bethel Theologitai Seminary (St. Paul Minnesota) No Data Bringhrm 'flung University, California Center ( Whittier) No Data City University (Santa Clara) 1,305 1,7833,088 90 264 373 727 City University (Los Angeles) 546 0 546 21 46 7 13 87 College for Human Services (Oakland) No Data College of St. Thomas (St. Paul, Minnesota) No Data Fall 1987 Enrollment 1986-87 Degrees Awarded Type of Institution F rtt Full Part Asia. Bache. Proles. Doc, Out-of-State Accredited Institutions (continued) Time Tuna Total coats for Master Ronal :orate Total Columbia Bible College (Columbia. South Carolina) No Data Columbia College-Missouri (San Francisco) 33 54 87 29 9 38 Dewy Institute of Technology (City of Industry) 2.070243 2,313 105 264 364 Embry-Riddle Aeronautical University (eight locations) No Data Norwich University (San Jose) No Data Nova University (Los Angeles) No Data Southern Ilinois University at Carbondale (three locations) No Data Union for Experimenting Colleges and Universities, The (Los Angeles) 64 0 64 7 7 University of Bridegport (Los Angeles) 3,133 1.2125,346 121 448 281 206 6 1,062 University of Phoenix (Costa Mesa) No Data Webster University (three locations) No Data

State-Approved Institutions

Academy of Art College (San Francisco) 12308172,047 140 4 144 American Armenian International College (La Verne) 86 147 233 20 28 American College of Traditional Chinese Medicine (San Francisco) No Data Anaheim Christian College (Anaheun) 26 0 26 0

California American University (Escondido) 29 29 1 1 California Christian College (Fresno) 20 22 42 7 2 9 California Christian Institute (Orange County) No Data California Coast University (Santa Ana) 1062 0 1052 243 California Graduate Institute (West Los Angeles) 272 215 487 16 38 54 California Graduate School of Marital & Family Therapy (San Rafael) 36 75 11 No Degree Data California Institute for Clinical Social Work (Berkeley) 30 0 30 4 4

California Missionary Baptist Institute and Seminary (Bellflower) 18 2 20 1 3 2 1 7 California Pacific University (San Diego) No Data California Theological Seminary (Fresno) 6 17 23 6 3 9 Cs 'bridge Graduate School of Psychology. The (Los Angeles) 51 44 95 4 4 Center for Psychological Studies (Albany) 4 31 35 1 1 Center Graduate College (Saratoga) 18 0 18 No Degree Data Charles R. Drew Postgraduate Medical School ( Los Angeles) 185 4 189 30 30 Columbia College (Los Angeles) No Oats Columbia Pacific University (San Rafael) No Data European University of America (San Francisco) 55 2 57 49 19 Glendale University College of Law (Glendale) No Data Graduate Center for Child Development & Psychotherapy (Los Angeles) 36 0 36 3 3 Human Relations Center, Inc. (Santa Barbera) 130 5 135 26 26 Immaculate Heart College Center ( Los Angeles) 38 88 No Degree Data Institute for Advanced Study of Human Sexuality (San Francisco) 41 35 76 1 9 10

Institute for Creation Research (Santee) 0 6 6 1 1 Institute of Transpersonal Psychology Menlo Park) 109 53 162 19 5 24 International School of Theology (San Bernadino ) 43 36 79 28 22 50 La Jolla University (San Diego) No Data Lincoln University the Law School (two locations) 304 304 22 21 20 12 75 Linda Vista Baptist Bible College and Seminary (El Cajon) 49 5 53 7 6 2 4 19 Music and Arts Institute (San Francisco) Decline to Participate Nstional Hispanic University, The (Oakland) 78 38 116 3 4 7 14 New College for Advanced Christian Studies ( Berkeley) 10 100 110 15 15 New Schocl of Architecture, The (San Diego) 79 15 94 No Degree Data Newport University ( Newport Beach) 234 234 44 56 5 129 234

1;1 95 Fall 1987 Enrollment :986-87 Decrees Awarded Tyne of Institution First Full Part Amp Bache- Proles Doe State-Approved Institutions (continued) Time Tim. Total Hato ',or ..1ar.ust :orate Total Pacific Coast Baptist Bible College (San Dimas) 190 18 208 34 34 Pacific Coast University (Long Beach) 83 13 13 Pacific States University (Los Angeles) No Data Pasadena College of Chiropractic (Pico Rivera) 137 0 137 21 56 77 Peninsula University College of Law I Mountain View) 0 121 121 19 9 28 Professional School of Psychological Studies, The (San Diego) No Data Professional School of Psychology, The (San Francisco) 240 9 249 10 5 4 19 Roaebridge Graduate School of Integrative Psychology (Walnut Creek) 52 3 55 4 4 Ryokan College (Los Angeles) 54 0 54 8 22 2 32 Salvation Army School of Officer Training (Rancho P Verdes) 70 0 70 27 27 Sierra University: A University Without Walls (Costa Mesa) 200 0 200 10 85 51 146 Simon Greenleaf School of Law, The (Anaheim) 53 63 116 4 14 7 25

Southern California Psychoanalytic Institute (Beverley Hills) 78 78 1 1 University Associates Graduate School of Human Resource Development (San Diego) 0 143 143 13 13 University for Humanistic Studies, The (Del Mar) No Data University of Santa Barbara (Santa Barbara) 0 0 12 12 University of Santa Monica (Santa Monica) 318 0 318 31 31 Walden University, Inc. (West Covina) 180 0 180 59 59

Western Graduate School of Psychology ( Palo Alto) 9 10 19 1 1 Western Institute ftv Social Research (Berkeley) 25 0 25 2 2 Western Sian. Law School (San Diego) No Data William Carey international University (Pasadena) 28 81 109 17 17 William Lyon University (San Diego) 58 0 58 11 33 95 139 World University of America (Ojai) 55 0 55 No Degree Data Yeshiva University of Los Angeles (Los Angeles) 25 20 45 3 3

StateAuthorized Colleges and Universities. ABC Colleges (Fresno) No Data American College frr the Applied Arts (Los Angeles) 391 31 424 11 59 70 American College rf Lew (Brea) 0 84 84 4 13 17 American Institute of Hypnotherapy (Santa Ana) Decline to Participate American National University (La Palma) 0 0 0 0 0 Asian American University (San Diego) No Data August Vollmer University (Santa Anal No Data Bethseda School of Theology (Whittier) 47 7 54 6 6 CAL Northern School of Law (Chico) 32 0 32 7 7 California International University ( Las Angeles) 100 6 106 2 15 17 California Pacific School of Law (Bakersfield) 0 13 13 No Degree Data Central California College School of Law (Fresno) No Data Century University (Los Angeles) No Data

Charles E Dederich School of Law (Badger) 0 1 1 No Degree Data Christian Witretz TIsological Seminary (Berkeley) No Data Citrus Belt Law School (Riverside) Decline to Participate Control Data Institute (Anaheim) 11 11 22 31 31 Criss College (Anaheim) 86 64 150 No Degree Data Design Institute of San Diego (San Diego) 170 57 227 5 r, Dharma Realm Buddhist University (Talmage) 1 10 11 No Degree Data

96 1 cI) ..r Fall 1987 Enrollment 1986-87 Degrees Awarded Tyne of Institution Frst Full- Part- Asso - Bachs Profes- Doc StateAuthorized Colleges and Universities (continued) Turns T.ms Total mate or Master $lonal tow! Mtoi Empror's College of Traditional Oriental Medicine (Santa Monica) No Data Eubanks Conservatory of Music and Arts (Los Angeles) 4 17 21 17 4 21 Eurotechnical Research University (Mountain View) 5 0 5 5 5 Foundation College (San Diego) No Data Golden State University (Los Angeles) No Data

Great Western University (San Francisco) 17 11 28 1 1

Institute of Buddhist Studies (Berkeley ) 6 0 6 1 1 Interior Designers Institute (Corona Del Mar) No Data

International Bible College ( Los Angeles) 33 0 33 24 1 25 International University of Nutritional Education (Huntington Beach) No Data

Kennedy-Western University i Aggoura Hills) 25 13 38 10 3 1 14 Kensington University (Glendale) 1061 81 69 5 59 214 Los Angeles College of Chiropractic (Whittier) No Data Marin Bible College (Novato) No Data More University (Lafayette) Decline to Participate National Education Center Skadron College of Business Campus (San Bernardino) 575 0 575 106 106 North American College (Irvine) 0 45 45 4 4

Northern California Bible College (San Jose) 0 105 105 1 5 6 Northwestern California University (Sacramento) No Data Northwestern Polytechnic University (Fremont) 170 60 230 46 25 71 Pacific National University (Los Angeles) 0 0 0 3 3 Pacific Southern University (Beverly Hills) ' 174 174 122 39 13 174 Pacific Western University (Los Angeles) 0 114 114 303 54 121 478 People's College of Law (Los Angeles) 18 0 18 8 8

Rudolph Steiner College (Fair Oaks) 63 46 109 1 1 Sanwa University of Oriental Medicine ( Los Angeles) No Data San Joaquin College of Law (Fresno) No Data

South Baylo University (Garden Grove) 230 0 230 1 34 45 1 81 Southern California College of Law (Brea) 22 0 22 No Degree Data Southern California Conservatory of Music (Sun Valley) 0 104 104 No Degree Data Southern California University for Professional Studies (Anaheim) No Data Southern States University (Huntington Beach) No Data United College of Business (Downey) 300200 500 No Degree Data United College of Business (Hollywood) 250200 450 6 6 University of Northern California Lorenzo Patino School of Law (Sacramento) 0 70 70 31 31 Weimar College (Weimar) No Data William Howard Taft University ( Fountain Valley) No Data Yuin University (Compton) 110 177 287 6 12 5 2 25

1 97 Fall 1987 Enrollment 1986-87 Degrees Awarded

Time of Institution First Full Part Ass.) Bacne Prolls Doc State-Authorized Schools of Theology Time Mu Total cutefor Master salal mt.! Total

Ambassador College (Pasadena) 604 19 623 101 173 274 Bay Cities Bible Institute (Oakland) 41 55 96 3 5 3 11 California Graduate School of Theology (Glendale) No Data Chinese for Christ Theological Seminary (Rosemead) No Data Ernest Holmes College/School of Ministry (Los Angeles) 42 28 70 16 0

Fellowship Bible Institute (San Francisco) 0 16 16 1 1 Marin Bible College (Novato) 9 50 59 4 5 9 Reformed Presbyterian Seminary (Los Angeles) 25 5 30 10 10 Shasta Bible College (Redding) 20 34 54 3 3 6 Southern California Bible College (San Diego) 5 31 36 No Degree Data Southern California Community Bible College I Norwalk) 21 116 137 7 4 11 Stockton Christian Life College (Stockton) No Data The School for Deacons (Castro Valley) 52 4 56 12 12

Institutions Offering Religiously Exempt Programs

Agape Bible College (Los Angeles) 5 11 16 7 7 Alisal Baptist Institute (Salinas) 16 0 16 No Degree Data Alliance College and Seminary (Norwalk) 69 28 97 No Degree Data Anderson Theological School (San Diego) No Data Auburn Bible College (Auburn) 0 0 0 No Degree Data Barachah Baptist Seminary (Vallejo) No Data Berean Bible College (San Diego) No Data Berean Graduate of Theology and Bible Institute ( Visalia) 0 25 25 No Degree Data Bethal Christian College

(Riverside) 17 28 45 1 2 12 2 17

Bishop's House (Los Angeles) 1 0 1 No Degree Data California Institute for Transformation (Grand Terrance) No Data Capital Bible Institute (Sacramento) 51 110 161 14 5 19

Cathedral Bible College (Escondido) 21 69 90 6 1 7 Charles Harrison Mason Bible College (Oakland) No Data Christian Life School of the Bible and Bible Institute ( Riverside) No Data Christian Zion Bible College ( Pasadena) No Data Citadel Bap[tist Theological Seminary (Sacramento) 12 8 20 No Degree Data Cline Clark Clinic (Los Angeles) No Data College of Buddhist Studies ( Los Angeles) 3 53 56 No Degree Data

Commonwealth College (Los Angeles) 0 52 52 1 1 Concord Christian College (Concord) No Data Cornel Bible College and Seminary (Los Angeles) No Data Crenshaw Christian Center School of Ministry (Los Angeles) 138 0 138 74 74 E.C. Reams Bible Institute (Oakland) No Data

Ecumenical Catholic Diocese of California (Yorba Linda) 0 1 1 1 1 Evangelical Theology Seminary of Oversee (Gardena) No Data GYE University (Orland) 1 18 19 No Degree Data Golden State School of Theology (Oakland) 25 70 90 2 4 6 10 22 Grace Schools of Long Beach (Long Beach) 4 72 76 2 2 Hemet Christian College (San Diego) No Data Holy Mountain University (Groveland) 2 0 No Degree Data

98 Fall 1987 Enrollment 198687 Degrees Awarded Type of Institution First Full. Part- Asso- Bache Profs- Doe Institutions Offering Religiously Exempt Programs (continued). Tune Time Total matefor Master siocal tomtit Totai Immanuel Mission Bible College and Seminary (Garden Grove) No Data

Inheritance Bible College (Riverside) 11 19 30 5 4 1 1 11 International Institute of Pneumiatrics (Lakeside) No Data International Theological Seminary of Van Nuys ( Van Nuys) 67 0 67 23 19 15 67 J.P. Steadman Bible Institute (Sacramento) 0 12 12 No Degree Data Leonard Fox Bible College (Phelan 3 16 19 No Degree Data Living Word Bible College (Pasadena) No Data Los Angeles Christian University (Los Angeles) No Data Metaphysical Theological Seminary (Long Beach) No Data National Association for Ministers Evaluation (Los Alamitos) No Data

Northstate Baptist Institute of the Bible (Sacramento. No Data Pacific Theological Seminary (Los Angeles) No Data Puente Hills Baptist College of Religion ( Hacienda Heights) No Data Revival Christian University (Cypress) No Data Sacramento Bible Institute ( Ca rm icnael ) No Data San Diego Bible :nstitute and Theological Seminary (Spring Valley)No Data Shiloh Bible College (Oakland) 23 161 184 8 15 23 Sonlite Bible College and Theological Seminary (Downey) 0 0 0 No Degree Data Southern Baptist Bible College and Seminary (Irving) No Data Southern California Theological Seminary (Stanton) No Data Southern California Graduate School of Theology (Fresno) 0 0 0 No Degree Data Southern California Schol of Ministry (Los Angeles) No Data Southwest College of Ministry (El Cajon) No Data Spiritual Transformation Center Training Institute ( Ventura 0 0 0 No Degree Data St. James College (Pacifica) 0 39 94 No Degree Data St. Joseph of Armithea Angelican Theological Seminary (Berkeley) 3 3 6 No Degree Data The College of Divine Metaphisics, Inc. (Glendora) 0 44 44 7 7 The World Union Church, California Institute for Humanistic Endevor (Ocean) No Data University of the Trees (Boulder Creek) 0 0 0 No Degree Data Youth Evangelism Bible College and Training Center (San Diego) No Data

Note: Based on data received by the Commission through April 1, 1989, the following displayshows for the several major types of privately supported institutions in California the averp ge number of students each of them enrolled in Fsll ll187 and theaverage number of degrees each of them awarded during 1986-87.

Fall 1987 Enrollment 1986-87 Dfrees Awarded Full- Part- First Type of Institution Time Time Total AssociateBazchelor MasterProfessionalDoctorate Total Accredited Independent Institutions (119) 1,143 512 1,655 38 157 126 51 16 388 Out-of-State Accredited Institutions (7) 1,047 485 1,532 49 145 108 30 2 335 State Approved

Institutions (50) 113 53 166 1 7 10 3 10 30 StaA Authorized Colleges and Universities (34) 77.5 48 125 5 20 7 3 6 42 State Approved Schools Theology (10) 82 36 118 13 5 19 1.3 0 0 34 Religiously Exempt

Institutions (30) 14 26 40 9 3 1 0 1 14

99 References

Note: Statements in the report that are not cited below were made to Commission staff during the course of the study, many of them at a meeting of the technicaladvisory committee for the project on July 26, 1988.

Aspling, Barton L. (Director, Audit Management Commission Report 81-25. Sacramento: The Com- and Review Office, California State Department of mission, November 1981. Education). Memorandum to Joseph Barankin, Di- rector, Private Postsecondary Education Division, --. Commission Comments on Proposed Standards "Areas Needing Clarification or Improvement in for Authorization of Private Postsecondary Educa- the Private Postsecondary Education Division tional Institutions: A Review for the Legislature of (PPED) Policies and Procedures," December 14, the Report of the Special Committee of the Council 1987. for Private Postsecondary Educational Institutions Pursuant to Section 94304.5 of the Education Code. Bergman, G. Merle. Letter to Charles S. Williams Commission Report 83-6.Sacramento: The Com- III, Private Postsecondary Education Division, mission, January 1983. California State Department of Education, May 31, 1984. --. Public Policy, Accreditation, and State Approval in California: State Reliance on Non-Governmental Brennan, Joseph (President, Feather River Col- Accrediting Agencies and on State Recognition of lege). Letter to Kenneth O'Brien, Executive Direc- Postsecondary Institutions to Serve the Public Inter- tor, California Postsecondary Education Commis- est. Commission Report 84-28.Sacrament;,: The sion, January 27, 1989. Commission, July 1984.

Brown, Jonathan. "Accreditation and Licensure: --. The State's Role in Promoting Quality in Private How Does the State Assure Itself of Quality Control Postsecondary Education: A Staff Prospectus for the in Higher Education?" Issue Paper 16 in Issue Pa- Commission's Review of the Private Postsecondary pers, The Master Plan Reviewed: Unity, Equity, Education Act of 1977, as Amended. Commission Quality, and Efficiency in California Postsecondary Report 87-44. Sacramento: The Commission, De- Education.Sacramento: Commission for the Re- cember 1987. view of the Master Plan for Higher Education, August 1987, pp. 342-357. Commission on Non-Traditional Study.Diversity by Design. San Francisco: Jossey-Bass, 1975. California Postsecondary Education Commission. The Role of the State in Private Postsecondary Ed- Dickey, Frank G. Review of California Education ucation: Recommendations fob Change. Commis- Code Section 94310. Report to the Council for Pri- sion Report 76-7. Sacramento: The Commission, vate Postsecondary Educational Institutions and July 1976. the Private Postsecondary Education Division of the California State Department of Education. n.d. --.Review and Evaluation of the Private Postsec- (1987?). ondary Education Act of 1977. Commission Report 81-1C.Sacramento: The Commission, January Dickinson, Bernell C. "What is a State Approving 1981. Agency?" Presentation to Off-Campus Academic Programs Conference, Southern Illinois University, --.The Challenges Ahead: A Planning Agenda for Carbondale, May 21, 1987. Caiifornia Postsecondary Education, 1982-1987.

190 101 Gaylor, Henry W,Jr. (Chairperson, Council for Pri- Lukton, Rosemary C. "Position Statement on The vate Postsecondary Educational Institutions). Let- State's Role in Promoting Quality in Postsecondary ter to Patrick M. Callan, Director, California Post- Education." Berkeley: California Institute for Clin- secondary Education Commission, August 16, 1985. ical Social Work, July 21, 1988.

Goldman, Steven.Letter to J. William May, Pri- Orlans, Harold; Levin, Nora Jean; Steiger, Janet vate Postsecondary Education Division, December D., and Colmen, Joseph G. GI Course Approvals. 10, 1986. Washington, D.C.: National Academy of Public Ad- ministration Foundation, August 1979 Hefferlin, JB Lon. "Avoiding Cut-Rate Credit and Disclunt Degrees." Chapter Six in K. Patricia Peterson, Richard W., and others "94310(c) Visit- Cross, John R. Valley, and Associates.Planning ing Committee On-Site Observation. January 13- Non-Traditional Programs: An Analysis of the Is- 14, 1986, Final Report to the Superintendent," Sep- sues for Postsecondary Education. San Francisco: tember 17, 1986. Sacramento: Private Postsecon- Jossey-Bass Publishers, 1974, pp.148-174. dary Education Division, California State Depart- ment of Education. Holland, Charlton G. (Assistant Attorney Gener- al). Letter to Patrick M. Callan, Director, Califor- Private Postsecondary Education Division, Califor- nia Postsecondary Education Commission, Febru- nia State Department of Education.Information ary 18, 1986. and Declaration for Religious Exemption Pursuant to California Education Code Section 984303(6) and Honig, Bill.Organization of the California State Application/Declaration for Religious Exemption Department of Education. Sacramento: California Pursuant to California Education Code Section State Department of Education, July 1988. 984303(6). Sacramento: The Division, November 1980. Houle, Cyril 0. The External Degree. San Francis- co: Jossey-Bass, 1973. --. The Formally-Adopted Developmental Guide- lines for Reviewing Degree-Granting Institutions Joint Committee on the Master Plan for Higher Ed- Pursuant to California Education Code Section ucation. Report of the Joint Committee on the Mas- 94310(c). Sacramento: The Division, March 1985. ter Plan for Higher Education. Sacramento: Cali- fornia Legislature, 1973. --.Historical Analysis and Status Report, April 1, 1988. Sacramento: The Division, April 1988. Krear, Morris L."Fingertip Questions and An- swers Regarding CEC 94310.2 Approvals, Reappro- --. Private Postsecondary Education Division Re- vals, and Added Programs." Duplicated Training porter, September 1988 (1:1). Manual, 1987. --. Handbook and Application for Licensure of Lawrence, Robert W. (Deputy Superintendent for Regionally Accredited Out-of-State Incorporated In- Field Services, California State Department of Ed- stitutions to Operate in California, California Edu- ucation). Action Request, Council for Private Post- cation Code Sections 94310.1(a) and ( b) Implemen- secondary Educational Institutions, July 16-17, tation Version. Sacramento: The Division, Novem- 1985. ber 1988a.

Legislative Analyst. Administrative Review of the -- "Statistical Report 1988."Sacramento: The Office of Private Postsecondary Education (OPPE) Division, November 1988b. Pursuant to Chapter 1202, Statutes of 1977. Report 80-26. Sacramento: Office of the Legislative Ana- Reid, R. H. AmericanDegree Mills: A Study of Their lyst, December 1980. Operations and of Existing and Potential Ways to

102 Control Them. Washington, D.C.: American Coun- William D. Dawson, Executive Deputy Superinten- cil on Education, 1959. dent, California State Department of Education, "Requested Executive Briefing: Religious Institu- Riles, Wilson. "Review and Commentson the Cali- tions and Restating Our Objective Number 7," Jan- fornia Postsecondary Education Commission Re- uary 28,1985. port, The Role of the State in Private Postsecondary Education: Recommendations for Change." Appen- Veterans Administration Board of Contract Ap- dix X in Califorrda Postsecondary Education Com- peals. Settlement stipulation in the matter of the mission: The Role of the State in Private Postsec- appeal of California State Department Contract ondary Education: Recommendations for Change. V101 (223B) P-1706 & V101 (2333B) P-1806, Veter- Commission Report 76-7. Sacramento: The Commis- ans Administration Central Office (Education & sion, July 1976. Rehabilitation Service), Washington, D.C. Docket No. vABC-1618, June 9, 1987. Special Committee for the Review of Out-of-State Accredited Institutions. Oversight of Out-of-State Weiner, Stephen S.The Tangled Thicket: Sham Accredited Institutions Operating in California: A Academic Degrees in California and the Problem of Report to the California Postsecondary Education State Regulation. Oakland: Western College Asso- Commission Pursuant to Senate Bill 1036. Califor- ciation, March 1989. nia Postsecondary Education Commission Report 85 35. Sacramento: The Commission, March 1986. Wolfertz, Roger D Complaint in the matter of the appeal by the State Department of Education from Stewart, David W., and Spille, Henry A. Diploma Decision of the Contracting Officer on Report of Mills: Degree of Fraud. New York: American Coun- Audit. Docket No. vAacA-1618,Veterans Adminis- cil on Education/Macmillan Publishing Company, tration Board of Contract Appeals, April 24, 1981. 1988. Young, David A.(Administrator, Academic De- Unger, William V. (Assistant Director, Private Post- grees and Program Reviews, Office of the Governor, secondary Education Division). Memorandumto Oregon). Letter to Bruce D. Hamlett, July 2, 1987.

2u 103 Summary During March and April 1989, the California Postsecon- dary Education Commission published three related reports dealing with state licensure of colleges and universities-- in particular, California's oversight of private postsecondary institutions, and its reliance on accrediting agencies for part of this oversight. This document reproduces all three of those reports. Recommendations for Revising the Private Postsecondary Education Act of 1977 is the first of the three included in this collection but was the last to be published. It summarizes the findings and conclusions of the other two reports and offers eight recommendations for consideration by the Legislature regarding changes in the 1977 law. The State's Reliance on Non-Governmental Accreditation responds to Assembly Concurrent Resolution 78 (Hugh- es, 1988), which directed the Postsecondary Education Commission to review California's policy of exempting accredited institutions from State review.It concludes that California has relied more than it should on certain accrediting agencies for ensuring the quality of all of their accredited institutions, and it offers seven premises for establishing a coherent policy for State reliance on accreditation in postsecondary education. Protecting the Integrity of California Degrees responds to the Legislature's request that the Commission report to it on the effectiveness of the 1977 private Postsecondary Education Act in "protecting the integrity of degrees and diplomas issued by private postsecondary educational institutions" as well as on the implementation of the law by the California State Department of Educa- tion.It concludes that improvements in both the law and its implementation are needed in order to bring California to the minimum level of consumer protection offered by other major industrialized states of the nation. Further facts about each of the reports may be found on its inside front cover. If additional background is needed on it, the name and telephone number of the Co- mission staff member most familiar with it is also listed there. Questions about the Commission's overall position on State licensure of postsecondary institutions may be directed to Jane V. Wellman, the Commission's associate director, at (9!6) 322- 8017.

201 STATE OVERSIGHT OF POSTSECONDARY EDUCATION California Postsecondary Education Commission Report 89-21

ONE of a series of reports published by the Commis-89-13 The State's Reliance on Non-Governmental sion as part of its planning and coordinating respon- Accreditation: A Report to the Legislature in Re- sibilities. Additional copies may be obtained withoutsponse to Assembly Concurrent Resolution 78 (Re- charge from the Publications Office, California Post- solution Chapter 22, 1988) (March 1989) secondary Education Commission, Third Floor, 1020 Twelfth Street, Sacramento, California 95814-3985. 89-14 Analysis of the Governor's Proposed 1989-90 Budget: A Staff Report to the California Postsecon- Recent reports of the Commission include. dary Education Commission (March 1989) 89-4 The Effectiveness of the Mathematics, Engineer- 89.15 Planning Our Future A Staff Background ing, Science Achievement (MESA) Program's Admin- Paper on Long-Range Enrollment and Facilities Plan- istrative and Policy-Making Processes. A Report toning in California Public El igher Education (April the Legislature in Response to Assembly Bill 610 1989) (1985) (January 1989) 89-16 Standardized Tests Used for Higher Educa- 89-5 Comments on the Community Colleges' Study tion Admission and Placement in California During of Students with Learning Disabilities: A Repori, to 1988: The Fourth in a Series of Annual Reports Pub- the Legislature in Response to Supplemental Report lished in Accordance with Serate Bill 1758 (Chapter Language to the 1988 State Budget Act (January 1505, Statutes of 1984) (April 1989) 1989) 89-17 Protecting the Integrity of California De- 89-6 Prospects for Accommodating Growth in Post- grees: The Role of California's Private Postsecondary secondary Education to 2005: Report of the Executive Education Act of 1977 in Educational Quality Con- Director to the California Postsecondary Education trol (April 1989) Commission, January 23, 1989 (January 1989) 89-18 Recommendations for Revising the Private 89-7 State Budget Priorities of the Commission, Postsecondary Education Act of 1977: A Report to 1989: A Report of the California Postsecondary Edu- the Legislature and Governor r,n Needed Improve- cation Commission (March 1989) , ments in State Oversight of Privately Supported 89-8 Status Report on Human Corps Activities, Postsecondary Education (April 1989) 1989: The Second in a Series of Five Annual Reports89-19 Mandatory Statewide Student Fees in Cali- to the Legislature in Response to Assembly Bill 1820 fornia's Public Four-Year Colleges and Universities: (Chapter 1245, Statutes of 1987) (March 1989) Report of the Sur:set Review Committee on Statewide 89-9 A Further Review of the California State Uni- Student Fee Policy Under Senate Bill 195 (1985), pub- versity's Contra Costa Center (March 1989) lished for the Committee by the California Postsecon- dary Education Commission (April 1989) 89-10 Out' the Shadows-- The IRCA/SLIAG Oppor- tunity: A Needs Assessment of EduLational Services89-20 State Policy Guidelines for Adjusting Non- for Eligible Legalized Aliens in California Under the resident Tuition at California's Public Colleges and State Legalization Impact Assistance Grant Program Universities: Repoi t of the Advisory Committee on of the Immigration Reform and Control Act of 1986, Nonresident Tuition Policies Under Senate Concur- submitted to the California Postsecondary Education rent Resolution 69, published for the Committee by Commission, February 23, 1989, by California To- the California Postsecondary Education Commission morrow (March 1989) (June 1989) 89-11 Faculty Salaries in California's Public Uni- 89-21 State Oversight of Postsecondary Education: versities, 1989-90: A Report to the Legislature andThree Reports on California's Licensure of Private In- Governor in Response to Senate Concurrent Resolu- stitutions and Reliance on Non-Governmental Accre- tion No. 51 (1965) (March 1989) ditation [A reprint of Reports 89-13, 89-17, and 89- 181 (June 1989) 89-12 Teacher Preparation Programs Offered by California's Public Universities: A Report to the Leg- 89-22 Revisions to the Commission's Faculty Salary islature in Response to Supplemental Language in Methodology for the California State University (June th,! 1988 State Budget Act (March 1989) 1989)