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Summary of Contents of Report auSINESS. CONSUMER SERVICES. AND HOUSING AGENCY • GOVERNOR EDMUND 0 . BROWN JR . Executive Office . c::1 c a 1625 N. Market Boulevard, Suite S-308, Sacramento, CA 95834 @ DEPARTMENT OF CONSUMER AFFAIRS P {916) 574-8200 IF {916) 574-8613 I www.dca.ca.gov Summary of Contents of Report The attached report, entitled "Coding the Future: Recommendations for Regulatory Oversight in the High Technology Education Field," is transmitted to the Legislature pursuant to the requirements of Education Code section 94880.1 (b), added by SB 1247 (Lieu, Chapter 840, Statutes of 2014). The report includes recommendations and findings to the Legislature on each of the following: 1. Whether students attending institutions offering high technology programs should receive certain disclosures prior to enrolling in an educational program offered by those institutions. 2. Whether the means of reporting student outcomes and the content of those reports are appropriate. 3. The steps the state may take to promote the growth of high-quality training programs in skills for high technology occupations. Thank you for your time. If you have any questions, please contact me at (916) 574 - 8200 or [email protected]. Sincerely, Awet Kidane Director, Department of Consumer Affairs Coding the Future Recommendations for Regulatory Oversight in the High Technology Education Field Table of Contents Executive Summary ....................................................................................................................................... 2 Private Postsecondary Education in California ............................................................................................. 5 Task Force Methodologies ............................................................................................................................ 6 What is a High Technology Program? ........................................................................................................... 7 Approach and Methods for Protecting Students and Fostering Growth ...................................................... 8 Disclosures .................................................................................................................................................... 8 Reporting of Student Outcomes ................................................................................................................. 11 State Steps .................................................................................................................................................. 17 Conclusion ................................................................................................................................................... 21 Endnotes ..................................................................................................................................................... 25 Appendix A .................................................................................................................................................. 26 Appendix B .................................................................................................................................................. 35 Appendix C .................................................................................................................................................. 39 Appendix D ................................................................................................................................................ 113 1 Executive Summary The origins of the Task Force began with Senate Bill 1247 (Lieu, Chapter 840, Statues of 2014), which charged the Bureau with creating a Task Force to review standards for education and training programs specializing in innovative subject matter and instruction for students in high-demand technology fields for which there is a demonstrated shortage of skilled employees (High Technology Program(s)). Specifically the Task Force was asked to report on: (1) the disclosures students should receive prior to enrollment at such an institution; (2) whether the means of reporting student outcomes and the content of those reports are appropriate; (3) and steps the state may take to promote the growth of high-quality training programs in skills for high technology occupations. California Education Code (CEC) § 94880.1. Private postsecondary education there has a wide variety of programs from which a student can choose when considering a course of study. Institutions offering High Technology Programs are becoming a popular option. These programs offer immersive, collaborative training in high-technology fields, and students are taught skills for jobs in which there are demonstrated shortages. This sector has seen tremendous growth. In 2014, 6,740 students graduated nationally from institutions offering High Technology Programs, with an estimated 16,056 graduates in 2015. The average program length in 2014 was 10.8 weeks, with an average tuition price of $11,063.1 Even with the increase in graduates, a gap remains between the number of highly skilled employees and the number of job openings. Both Web and Software Developers (Applications) are listed as two of the top 50 fastest growing occupations in California, with a projected employment of 151,400 Californians by 2022; while Software Development (Software and Applications) is also listed in the top 50 for occupations with the most job openings in California, 69,400 openings by 20222. These jobs generally do not require a traditional four-year college degree, and often result in wages that are one and a half times higher than the average American private-sector job. Unfortunately, the lack of highly skilled employees, coupled with a booming tech industry, has created a skills gap that employers are struggling to fill. Institutions like those mentioned above work to reduce this gap, and as such, there has been an increase in the number of institutions offering these High Technology Programs. With an increase in High Technology Programs being offered and a corresponding increase in graduates, there is a need to ensure that students are being protected, which would include oversight from the Bureau for Private Postsecondary Education (Bureau) on the institutions offering these programs. Accordingly, the Bureau oversaw the creation of a Task Force to address these items, along with other duties outlined in Senate Bill 1247 (Lieu, Chapter 840, Statues of 2014). The recommendations in this report build upon current Bureau laws and regulations to help ensure that California students are provided proper protections, while allowing the state to continues being on the forefront of technology and innovation. The recommendations are the result of input from stakeholders provided over a nine-month span. This report can be used to provide statutory direction and regulatory analysis, while guiding Bureau actions with the goal of ensuring consumer protection and reducing the 2 skills gap that exists within this sector of the labor market. The Task Force report aims to address the issues below. For detailed recommendations, please see the corresponding sections of the report. Disclosures Students attending private postsecondary education institutions currently receive a wide set of disclosures from an institution prior to enrollment, including the enrollment agreement, course catalog, and School Performance Fact Sheets (discussed in a later portion of this report). The Task Force recommends the following actions to ensure that students attending High Technology Programs are adequately protected. Task Force Recommendations: 1. Require High Technology Programs to have a defined admissions procedure. 2. Include in the course catalog a detailed section that addresses the rigor involved with the program. 3. Include in the course catalog a detailed section that discusses the institution’s career guidance services and student expectations. 4. Add to the enrollment agreement an area for students to attest that they have received information on program time commitment and rigor, as well as career guidance services offered. 5. Expand the mandatory cancellation period for students of high technology programs. For more information on Task Force recommendations regarding disclosures, please see page 12 of the report. Reporting of Student Outcomes As discussed earlier, one of the key disclosures provided to a prospective student is the School Performance Fact Sheet (SPFS). The SPFS provides the prospective student with various statistics and figures that show the outcomes of recent graduates of said institution. In order to ensure that outcome data is accurate and that the SPFS is relevant, the Task Force recommends the following items in order to enhance student protection. Task Force Recommendations: 6. Develop and conduct a pilot program that aggregates Base Wage File data and reports wage information by institution for High Technology Program graduates. For more information on Task Force recommendations regarding student outcomes, please see page 17 of the report. 3 State Steps California has always been known for fostering a landscape of innovation and diversity; and when it comes to acquiring high-technology skills, it should be no different. The skills gap will shrink as there are more qualified applicants entering the labor force, helping meet market demand. In order for this to happen, the Task Force recommends an expedited process for approval to operate an institution offering High Technology Programs, and
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