BILL ANALYSIS Ó SENATE COMMITTEE ON VETERANS AFFAIRS Senator Jim Nielsen, Chair 2015 - 2016 Regular Bill No: SB 1059 Hearing Date: 4/12/16 ----------------------------------------------------------------- |Author: |Monning | |-----------+-----------------------------------------------------| |Version: |2/16/16 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Wade Teasdale | | | | ----------------------------------------------------------------- Subject: Postsecondary education: Title 38 awards DESCRIPTION Summary: Exempts law schools accredited by the State Bar of California Committee on Bar Examiners from requirements that they be accredited by an accrediting agency recognized by the United States Department of Education in order to receive Title 38 veterans benefits. Existing law: 1) Establishes the Title 38 Funding Program (Title 38 Program) under the administration of the California State Approving Agency for Veterans Education (CSAAVE) and requires CSAAVE to approve qualifying institutions desiring to enroll veterans or persons eligible for Title 38 awards. In order to be a qualifying institution, requires an institution offering degrees to comply with the following requirements: a) Provide information (including via a website link) on where to access California license examination passage rates for the most recent available year from graduates of its undergraduate programs leading to employment for which passage of a California licensing examination is required, if that data is electronically available through the website of a California licensing or regulatory agency. b) Provide evidence of accreditation by an accrediting agency recognized by the United States Department of SB 1059 (Monning) Page 2 of ? Education (USDE) of the institution and of all degree programs. For unaccredited degree-granting institutions participating in the Title 38 Program as of January 1, 2015, obtain and provide evidence to CSAAVE of its candidacy or pre-accreditation status, with an accrediting agency recognized by USDE by January 1, 2016 in order to maintain eligibility for the program and obtain and provide evidence to CSAAVE of accreditation from the accrediting agency with which it had candidacy or pre-accreditation status by January 1, 2017 in order to maintain eligibility. 1) Authorizes the Board of Trustees of the State Bar of California (Board) to establish an examining committee (Committee of Bar Examiners, CBE) to examine all applicants for admission to practice law, administer the requirements for admission to practice law and certify to the Supreme Court for admission to the bar those applicants who fulfill the requirements. 2) Provides that subject to the approval of the Board, the CBE may adopt such reasonable rules and regulations as may be necessary or advisable for the purposes of making effective the qualifications for admission to the practice of law in California. 3) In order to be certified to the Supreme Court for admission and a license to practice law, requires a person, who has not been admitted to practice law in a sister state, United States jurisdiction, possession, territory, or dependency or in a foreign country to, among other requirements: a) Before beginning the study of law, complete at least two years of college work, attained in apparent intellectual ability the equivalent of at least two years of college work by taking any examinations in subject matters and achieving the scores as are prescribed by the CBE. b) Register with CBE as law student within 90 days after beginning the study of law. c) Have been conferred a juris doctor (J.D.) degree or a bachelor of laws degree by a State Bar-accredited law SB 1059 (Monning) Page 3 of ? school or American Bar Association (ABA) accredited law school - or - studied law diligently and in good faith for at least four years in a law school that is authorized or approved to confer professional degrees and requires classroom attendance of its students for a minimum of 270 hours a year or demonstrates education, experience and qualifications based on a legal education in a foreign state or country or studied law in a law office in California and under the personal supervision of a member of the State Bar who is, and for at least the last five years continuously has been, engaged in the active practice of law or studied law in the chambers and under the personal supervision of a judge of a court of record of this state or studied law at a correspondence law school authorized or approved to confer professional degrees by this state, which requires 864 hours of preparation and study per year for four years or any combination of these methods. 1) Requires the CBE to adopt rules for the regulation and oversight of unaccredited law schools that are required to be authorized to operate as a business in California and to have an administrative office in California, including correspondence schools, that are not State Bar-accredited or ABA accredited with the goal of ensuring consumer protection and a legal education at an affordable cost. 2) Provides that the CBE is responsible for the approval, regulation, and oversight of degree-granting law schools that exclusively offer bachelors, masters, or doctorate degrees in law, such as a J.D. 3) Requires a law school that is not State Bar-accredited to provide students with a disclosure statement signed by the student containing all of the following information: a) The school is not accredited. However, in addition, if the school has been approved by other agencies, that fact may be so stated. b) Where the school has not been in operation for 10 years, the assets and liabilities of the school unless the school has had prior affiliation with another school that has been SB 1059 (Monning) Page 4 of ? in operation more than 10 years, has been under the control of another school that has been in operation more than 10 years, or has been a successor to a school in operation more than 10 years. c) The number and percentage of students who have taken and who have passed the first-year law student's examination (Baby Bar) and the final bar examination in the previous five years, or since the establishment of the school, whichever time is less, which shall include only those students who have been certified by the school to take the examinations. d) The number of legal volumes in the library. e) The educational background, qualifications, and experience of the faculty, and whether or not the faculty members and administrators (e.g., the dean) are members of the California State Bar. f) The ratio of faculty to students for the previous five years or since the establishment of the school, whichever time is less. g) Whether or not the school has applied for accreditation, and, if so, the date of application and whether or not that application has been withdrawn, is currently pending, or has been finally denied. h) That the education provided by the school may not satisfy the requirements of other states for the practice of law. 1) Exempts law schools that are ABA accredited and State Bar-accredited from the California Private Postsecondary Education Act (Act) and oversight by the Bureau for Private Postsecondary Education (BPPE). 2) Requires unaccredited degree-granting institutions currently approved by BPPE to submit an accreditation plan to the Bureau by July 1, 2015, to obtain pre-accreditation by July 1, 2017, to obtain accreditation by July 1, 2020, and to comply with various student disclosure and visiting committee review requirements. SB 1059 (Monning) Page 5 of ? 3) Prohibits an institution approved by BPPE from offering an associate, baccalaureate, master's, or doctoral degree without disclosing to prospective students prior to enrollment whether the institution or the degree program is unaccredited and any known limitation of the degree, including, but not limited to, whether a graduate of the degree program will be eligible to sit for the applicable licensure exam in California and other states, a statement that reads: "A degree program that is unaccredited or a degree from an unaccredited institution is not recognized for some employment positions, including, but not limited to, positions with the State of California." And that a student enrolled in an unaccredited institution is not eligible for federal financial aid programs. This bill: Exempts law schools that are State Bar-accredited from having to receive accreditation by an accrediting agency recognized by USDE in order to participate in the Title 38 Program. BACKGROUND Title 38 The GI Bill, signed in 1944 by President Franklin D. Roosevelt gave "servicemen and women the opportunity of resuming their education or technical training after discharge, or of taking a refresher or retrainer course, not only without tuition charge up to $500 per school year, but with the right to receive a monthly living allowance while pursuing their studies." Educational benefits are currently available both to active duty personnel and veterans through two key programs: the Tuition Assistance program administered and run by the Department of Defense (DOD) and the Post-9/11 Veterans Educational Assistance Act administered by the Department of Veterans Affairs (USDVA). According to the National Center for Education Statistics, in FY 2011, 923,836 U.S. service members received over $10 billion in assistance from educational benefit programs administered by the USDVA, with 88,420 of them living in California. CSAAVE The former Bureau for Private Postsecondary and Vocational Education (BPPVE) used to serve as the approval agency for California institutions attended by veterans using Title 38 SB 1059 (Monning) Page 6 of ? monies under a contract with the USDVA. When BPPVE expired, these duties were transferred to the California Department of Veterans Affairs (CalVet) which now provides oversight of postsecondary education programs through its subsidiary CSAAVE. CSAAVE is federally funded and operates under an annual reimbursement contract with the USDVA. In its role as the approval agency, the primary function of CSAAVE is to review, evaluate and approve quality educational and training programs for veteran's benefits. CSAAVE is intended to approve colleges and universities, vocational schools, business schools, professional schools, and licensing and certification training and tests, all of which must lead to an educational, professional or vocational objective. Recent Concerns and Scrutiny Stemming from concerns about the experience of veterans at private for-profit institutions and multiple reports and hearings highlighting false and predatory advertising to veterans and the potential lack of accountability for the millions of dollars administered by the USDVA and Department of Defense (DOD) spent at private postsecondary education institutions in California if schools are not regulated, the Legislature took steps in 2014 to increase accountability and program quality of institutions receiving Title 38 monies. AB 2099 (Frazier, Chapter 676, Statutes of 2014) stipulated new Title 38 veterans funding eligibility standards for postsecondary institutions in California. All institutions now must provide license examination passage rates to students, and institutions that offer degrees must have institutional and programmatic accreditation in order to receive Title 38 monies. The bill also provided that, in order for a postsecondary institution to be determined eligible to accept Title 38 monies, determined by CSAAVE, the postsecondary institution, whether it offers degrees or not, must either be a public school, a nonprofit school, approved by the Bureau or be regionally accredited. SB 1247 (Lieu, Chapter 840, Statutes of 2014) prohibited an institution, beginning January 1, 2016, from claiming an exemption from the California Private Postsecondary Education Act and Bureau oversight if the institution is approved to participate in the Title 38 Program. Law School Approval by the State Bar Most law schools in California are approved by the ABA, which also deems them State Bar-accredited. The State Bar also SB 1059 (Monning) Page 7 of ? "accredits" 20 law schools that are neither ABA accredited nor accredited by an accrediting agency recognized by USDE pursuant to rules adopted by the CBE and approved by the Board of the State Bar. The role of the State Bar in accrediting law schools goes back some 80 years when the Board first evaluated the program of legal education at "fixed-facility" law schools in the state at that time. Legislation in 1937, known as the Act Governing Admission to Practice, subsequently established the educational requirements for admission to the Bar which included graduation from a law school accredited by the CBE that required substantially the full-time of its students for three years, graduation from a law school accredited by the CBE that required only a portion of full-time students or studying law diligently and in good faith for at least four years. The Legislation also created the requirement that students, who did not attend a CBE accredited law school, had to pass a preliminary examination as determined by the CBE during the course of their law studies. The State Bar enacted rules to implement the new authorities for the CBE, relying primarily on cumulative Bar passage rate of a specified percent to determine eligibility for State Bar accreditation. However, CBE also retained the option to grant accreditation, and could continue a law school's accreditation, even if the school did not meet the standard (60 percent was the last rate before CBE began relying on ABA passage rate requirements), if a law school could demonstrate that it was maintaining substantially the same standards of instruction, facilities for study, admission requirements, and curriculum as were maintained by CBE accredited law schools that met the CBE's cumulative Bar examination pass rate standard. CBE further attempted to enhance its accreditation standards beyond just reliance on cumulative Bar passage rate to include quantitative standards (that an accredited law school maintain a certain minimum number of books in its law library, employ a minimum of 3 full-time instructors, and admit no more than 10 percent of its student body as students who did not have at least two years of college education), but was met with opposition from State Bar-accredited law schools. CBE's final rules then required a CBE accredited law school to have an adequate library, have an adequately trained faculty devoting sufficient time to teaching and consultation with students to ensure adequate personal acquaintance and influence with the students and special students could constitute up to one-third of its enrollment. SB 1059 (Monning) Page 8 of ? Concerns about the quality of the legal education being offered by California's unaccredited and correspondence law schools resulted in the adoption of a Supreme Court Rule (former Rule 957), which required unaccredited and correspondence law schools to register with CBE, comply with specified requirements, and file specified reports. Continuing concerns about the quality of education at unaccredited and correspondence law schools led to further study of this issue and a report recommending that only CBE and ABA school graduates be allowed to qualify to take the Bar examination, however the recommendation was never formally pursued in terms of statutory or CBE rules. The State Bar further found in the mid-1980s that some ABA-approved law schools and many CBE accredited law schools faced declining Bar examination pass rates, declining numbers of applicants for admission as well as serious financial problems. These State Bar-accredited law schools were exempt from any other regulation and oversight in California. When the Private Postsecondary and Vocational Education Reform Act of 1989 (Former Act) took effect, only ABA approved law schools and State Bar law schools that were also WASC accredited were authorized to continue an exemption from state regulation. Beginning January 1, 1990, most State Bar-accredited law schools were subject to concurrent regulation by the California Council for Private Postsecondary and Vocational Education (Council) and the CBE. The Council promulgated regulations applicable to all private postsecondary institutions, including private law schools. The CBE and Council then worked together, given the role CBE had in accrediting law schools, to ensure that CBE focused on curriculum approval and content while the Council focused on student protections and fair business practices. State Bar-accredited law schools were then specifically exempted from oversight under the BPPVE in 1997 in the Education Code through language that mirrors current BPC § 6060.7 referenced above. When the Former Act and BPPVE expired, BPC § 6060.7 took effect and subsequently § 6046.7 gave CBE the express authority, on and after January 1, 2008, to regulate and oversee unaccredited law schools, including correspondence law schools, that are neither ABA or State Bar-accredited. The current rules governing State Bar accreditation of law schools, which took effect in 2009, are contained in Division 2, Accredited Law School Rules of Title 4, of the Admissions and Educational Standards and provide the guidelines for the SB 1059 (Monning) Page 9 of ? governance, administration, curriculum requirements, academic and admission policies a school must abide by. They include: 1)Acknowledgement that CBE does not intervene in student-school disputes. 2)The ability of CBE to provide information publicly, upon written request (Rule 4.108 outlines that certain portions of applications, summaries of inspection reports and portions of annual reports may be made available upon written request). 3) Application requirements, including an inspection visit. 4)Annual compliance report requirements. 5)Self-study prior to a periodic inspection. 6)Notification to CBE of a major change. 7)Actions taken for noncompliance and action for termination of accreditation. COMMENT Committee Comments : This bill was approved by Senate Business, Professions and Economic Development (9-0) on 4/4/2016. The BP&ED committee analysis commented: "Law schools have come under scrutiny throughout the nation for high costs resulting in large amounts of student debt and low Bar passage rates. A 2015 Los Angeles Times investigation found that nearly 9 out of 10 students attending unaccredited law schools drop out and that many are unable to pass the Baby Bar, let alone complete the program to sit for the Bar examination. These schools are not subject to Bar passage requirements, nor are they required to meet program quality, student disclosure, or student protection standards, but have been eligible to enroll students utilizing Title 38 benefits. "While the State Bar accreditation process may align with other standards used for verification of law school program quality and integrity, such as those by the ABA, the issue of SB 1059 (Monning) Page 10 of ? student protections at law schools remains, as well as the ability of the State Bar to provide quality oversight of schools. The Author may wish to outline further criteria demonstrating program quality to define law schools eligible for continued participation in the Title 38 Program and may wish to include a sunset date on these schools' continued eligibility in order to allow the Legislature to further review the performance and level of quality oversight of these institutions receiving veterans financial aid benefits." The author's office has stated that the BP&D Committee suggestions were not a condition for approval, but that the author intends to adopt all or some of the suggestions. The author's office further indicates that it is likely that the author will offer simple amendments at the 4/12/2016 Senate Veterans Affairs Committee hearing, but that the amending language has not been worked out in time to be addressed in this analysis. POSITIONS Sponsor: Association of California Accredited Law Schools Support: Association of California-Accredited Law Schools Cal Northern School of Law Hartnell Community College District Lincoln Law School of Sacramento Monterey County Business Council Trinity Law School Numerous individuals, including: - Hon. Leon Panetta, Chair, Panetta Institute/Former U.S. Secretary of Defense - Hon. Ryan Coonerty, Supervisor, County of Santa Cruz - Hon. Ralph Rubio, Mayor, City of Seaside - Karen D. Kadushin, Dean Emeritus, Monterey College of Law - William T. Bare, Colonel, USAF (ret.), Director, Monterey Veterans Transition Center Oppose: None received -- END -- SB 1059 (Monning) Page 11 of ?