BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1397 (Ting) - Community colleges: California Community Colleges Fair Accreditation Act of 2015. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 8, 2015 |Policy Vote: ED. 6 - 3 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill may meet the criteria for referral to the Suspense File. Bill Summary: This bill establishes the California Community Colleges (CCC) Fair Accreditation Act of 2015 and requires the accrediting agency for CCCs to meet various specified operational standards. Fiscal Impact: No direct and certain cost to the state. Potential costs to the extent fees are increased by the Accrediting Commission for Community and Junior Colleges (ACCJC) to modify systems to conform to this bill. Though community colleges pay these fees, they are not reimbursable pursuant to state mandate law. Instead, increases in fees could put pressure on colleges' budgets which are largely funded by Proposition 98 General Fund. CCC student eligibility for state and federal financial aid could potentially be compromised to the extent the United AB 1397 (Ting) Page 1 of ? States Department of Education (USDE) does not recognize the ACCJC due to the bill's provisions that may conflict with federal accrediting agency recognition requirements. This could create a significant General Fund cost pressure to backfill any loss in funding. See staff comments. Background: State regulations require each community college within a district to be an accredited institution. Accreditation is a voluntary, non-governmental peer review process used to determine academic quality. Accrediting agencies are private organizations that establish operating standards for educational or professional institutions and programs. They determine the extent to which the standards are met and publicly announce their findings. Federal law requires institutions to be accredited in order to participate in federal programs that provide financial assistance to students. The National Advisory Committee on Institutional Quality and Integrity advises the USDE on matters related to postsecondary accreditation and the eligibility and certification process for higher education institutions to participate in federal student aid programs. It assesses whether accrediting agencies' standards are sufficiently rigorous to ensure the entity is a reliable authority regarding the quality of the education provided by the institutions or programs it accredits. Accrediting entities must meet all the criteria for recognition. The ACCJC is the regional accrediting agency for community colleges in the western region. Its 19 commissioners, one of which is a representative of the CCC Chancellor's Office, are elected by a vote of the presidents of the member colleges, which have been accredited by the ACCJC. After an initial accreditation, colleges must have their accreditation reaffirmed every six years. Generally, this involves a self-study, a site visit by a team of peers, a recommendation by the visiting team, an action by the accrediting agency, and follow-up progress reports. Institutions pay annual membership dues and fees to the accrediting agency to support expenses resulting from AB 1397 (Ting) Page 2 of ? comprehensive evaluation visits and any special and follow-up visits. The accrediting agency charges fees for a variety of other services such as those related to eligibility review, candidacy, and initial accreditation. The CCC Chancellor's Office has an Accreditation Task Force to advise and provide recommendations regarding the accreditation process. These recommendations are expected to be available later this year. Proposed Law: This bill establishes the CCC Fair Accreditation Act of 2015 and requires ACCJC to meet specified operational standards. This bill makes its provisions applicable only to accrediting procedures for institutions in California. This bill further prescribes the accreditation process by requiring: The establishment and enforcement of procedures to ensure no conflicts of interest, as specified, exist with individuals serving on visiting accreditation teams. The agency to conduct meetings to ensure the public has an opportunity to attend open sessions; there is sufficient time for public comment; and that no action of the agency related to an institution's accreditation is to be taken prior to hearing public comment. Accreditation-related decisions to be based on published standards, consistent with state and federal law. That no revision is to be made by the agency to a report from a visiting accreditation team report unless it is shared with the team and with the institution under review and is afforded an opportunity to comment on the revision. AB 1397 (Ting) Page 3 of ? An institution under review six weeks to review visiting accreditation team reports and recommendation for action before a decision relating to the institution's accreditation is to be made. Time for an institution to correct any deficiencies that have prevented the institution from receiving full accreditation and the ability to apply for an extension. An appeals process for certain sanctions issued by the agency. Related Legislation: AB 1385 (Ting, 2015) requires notification to the CCC Board of Governors before an accrediting agency increases membership fees, special assessments, or other payments charged to a community college. AB 404 (Chiu, 2015) requires, among other things, the ACCJC to report to the CCC Board of Governors the date by which the agency's application for continued recognition is due. AB 404 is pending in this Committee. Staff Comments: As noted above, this bill does not result in direct costs to the state at this time. However, potential costs to the state could arise depending on the implications of a recent letter issued to the ACCJC from the USDE expressing "serious concerns" regarding the ability of an accrediting agency to enforce its standards effectively, as required by the USDE's recognition criteria. It indicates that the timeline established in the bill prior to a decision is able to be made would appear to interfere with an accrediting agency's ability to act swiftly in taking enforcement action. Federal regulations require that if the accrediting agency's review of an institution is not in compliance their standards, the agency must immediately initiate adverse action against the institution AB 1397 (Ting) Page 4 of ? or program. This bill requires that the accrediting agency operate only by policies that are in compliance with the federal criteria for recognition of an accrediting agency. The USDE indicates that only it can interpret and apply its recognition criteria. The implication of USDE's concerns is unknown at this time. Conflict with USDE's recognition criteria could put recognition of the ACCJC as an accrediting agency in jeopardy. This would have serious implications as it could potentially compromise CCC student eligibility for state and federal financial aid. Other possible implications could be costs attributed to disputes or litigation to determine the ability of the state to enforce statutorily-imposed requirements since accrediting agencies are private membership-based, non-profit organizations recognized by the USDE. -- END --