BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON VETERANS AFFAIRS
                             Senator Jim Nielsen, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 1059        Hearing Date:    4/12/16
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          |Author:    |Monning                                              |
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          |Version:   |2/16/16                                              |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Wade Teasdale                                        |
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                 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  







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               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  








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               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  








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               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. 








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          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  








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          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  








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          "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.









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          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  








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          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  








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            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 --
          









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