BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1059


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          Date of Hearing:  June 14, 2016 


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          SB  
          1059 (Monning) - As Amended April 18, 2016


          [Note: This bill is double referred to the Assembly Veterans'  
          Affairs Committee and will be heard as it relates to issues  
          under its jurisdiction.]


          SENATE VOTE:  36-0


          SUBJECT:  Postsecondary education:  Title 38 awards


          SUMMARY:  Would authorize unaccredited law schools, as  
          specified, to participate in federal veteran's education  
          benefits.  Specifically, this bill:  


          1)Would authorize an institution that obtains and provides  
            evidence to the California State Approving Agency for  
            Veteran's Education (CSAAVE) that it has been "accredited" by  
            the Committee of Bar Examiners, to receive approval from  
            CSAAVE for participation in Title 38 veteran's education  
            benefits, provided the institution does both of the following:  



             a)   Provides disclosures to applicants of the school who are  








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               eligible for federal Title 38 awards of the institution's  
               tuition costs, refund policies, class sizes, number of  
               faculty, attrition rates, bar passage data, and employment  
               outcomes of graduates; and, 


             b)   Is in compliance with all applicable CSAAVE rules and  
               regulations and is in good standing with the Committee of  
               Bar Examiners.   


          EXISTING LAW:  


          1)Requires the Committee of Bar Examiners (CBE) of the State Bar  
            of California to be responsible for the approval, regulation,  
            and oversight of degree-granting law schools, as specified;  
            and provides, among other outlined requirements, a person that  
            is authorized to practice law in California to complete an  
            educational component, which can be met through any of the  
            following (Business and Professions Code 6060 et. seq.):


             a)   Receipt of a juris doctor degree or a bachelor of laws  
               degree by a law school accredited by the CBE or by the  
               American Bar Association (ABA).


             b)   Studied law diligently and in good faith for at least  
               four years in any of the following manners:


               i)     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.


               ii)    In a law office in this state and under the personal  








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                 supervision of a member of the State Bar of California  
                 who is, and for at least the last five years continuously  
                 has been, engaged in the active practice of law. It is  
                 the duty of the supervising attorney to render any  
                 periodic reports to the examining committee as the  
                 committee may require.


               iii)   In the chambers and under the personal supervision  
                 of a judge of a court of record of this state. It is the  
                 duty of the supervising judge to render any periodic  
                 reports to the examining committee as the committee may  
                 require.


               iv)    By instruction in law from 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.


               v)     By any combination of the aforementioned methods.


          2)Requires CSAAVE, a federally funded agency that operates under  
            an annual reimbursement contract with the United States  
            Veteran's Affairs (VA), to review, evaluate and approve  
            educational and training programs for veteran's benefits.   
            Among other requirements for approval by CSAAVE, California  
            law requires an institution which grants academic degrees to  
            be accredited by an accrediting agency recognized by the U.S.  
            Department of Education (USDE).   (Education Code Sections  
            67100, 67101, 67102).


          FISCAL EFFECT:  Unknown.  Negligible fiscal impact according to  
          the Senate Rule 28.8. 










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          COMMENTS:  Background.  In response to concerns that  
          unscrupulous for-profit colleges were targeting veteran students  
          in order to access federal Title 38 education benefits, and  
          leaving students with high debt levels and low-value degrees or  
          certificates, the Legislature enacted AB 2099 (Frazier), Chapter  
          676, Statutes of 2014.  


          AB 2099 required colleges approved by CSAAVE to (1) be  
          accredited by an accrediting agency recognized by the USDE, if  
          the institution grants academic degrees; (2) disclose  
          information regarding licensure examination passage rates to  
          prospective students, if applicable; and, (3) to be approved by  
          the Bureau for Private Postsecondary Education (thereby making  
          their students eligible for a series of consumer protections,  
          including disclosures, complaint resolution, and access to a  
          tuition recovery fund) if the institution is a for-profit  
          college.  


          Purpose of this bill.  According to the author, most law schools  
          in California are approved by the ABA, which is a  
          USDE-recognized accrediting agency.  Due to the cost-prohibitive  
          nature of ABA's approval requirements, 19 law schools in  
          California, both non-profit and for-profit, have instead opted  
          to become accredited by the CBE.  According to the author,  
          CBE-accredited law schools tend to attract a different student  
          population, including older, working students, students with  
          families, or those seeking a second career and require part-time  
          night courses in order to achieve a juris doctorate.  The author  
          notes, as further outlined below, CBE-accreditation provides for  
          review and oversight of quality standards. CBE, however, is not  
          recognized by the USDE, and therefore CBE-accredited  
          institutions do not met the CSAAVE accreditation requirements  
          established in AB 2099.  This bill would authorize  
          CBE-accredited law schools to be approved by CSAAVE for purposes  
          of Title 38 veterans' education benefits. 










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          CBE accreditation requirements.  CBE-accreditation of law  
          schools is governed by Division 2, Accredited Law School Rules,  
          of Title 4, the Admissions and Educational Standards.  These  
          Standards and their implementing Guidelines provide for the  
          governance, administration, curriculum requirements, and  
          academic and admission policies with which a school must comply.  
           The Standards and Guidelines include all of the following  
          provisions and requirements:


          1)Acknowledgement that CBE does not intervene in disputes  
            between a student and law school.  However, CBE retains  
            complaints about a law school and considers those complaints  
            in assessing the law school's compliance with the rules.

          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 and procedures, including an  
            inspection visit for every applicant for accreditation in  
            order to verify the information submitted by the school.  The  
            team inspecting the institution must provide an inspection  
            report.

          4)Standards governing CBE-accredited law schools covering  
            institutional integrity, governance, deans and faculty,  
            educational and scholastic standards, admissions, libraries,  
            financial resources, and records.

          5)Institutions are required to exceed a minimum cumulative bar  
            pass rate (MPR), which is currently set at 40%.  According to  
            information on the CBE website, two institutions do not meet  
            the MPR: Southern California Institute of Law has an MPR of  
            25.32, and Pacific Coast University School of Law has a pass  
            rate of 28.20.  

          6)An annual compliance report is required.  Institutions are  








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            also subject to periodic inspection and are required to submit  
            a self-study prior to a periodic inspection.

          7)Rules also require notification to CBE of a major change,  
            which includes various changes in the academic program, change  
            of location, ownership, name, from a for-profit to non-profit,  
            or other change as outlined. 

          8)Noncompliance actions by CBE can include termination of  
            accreditation; schools are provided a hearing and appeal  
            process prior to accreditation termination.

          Bar rates by law school type.  The following table represents  
          the pass rates for the general bar examination, by law school  
          type, for the July 2015 bar examination. 





                         -------------------------------------------------- 
                        |  First-Timers  |   Repeaters    |   All Takers   |
                        |                |                |                |
                        |                |                |                |
                         -------------------------------------------------- 
                        |---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
                        |         |Took     |Pass     |  Pass   |Took     |Pass     |  Pass   |Took     |Pass     |  Pass   |
                        |         |         |         |  Rate   |         |         |  Rate   |         |         |  Rate   |
                        |         |         |         |         |         |         |         |         |         |         |
                        |         |         |         |         |         |         |         |         |         |         |
                        |---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
                        |ABA-Appro|3535     |2411     |  68.2%  |823      |194      |  23.6%  |4358     |2605     |  59.8%  |
                        |ved      |         |         |         |         |         |         |         |         |         |
                        |         |         |         |         |         |         |         |         |         |         |
                        |         |         |         |         |         |         |         |         |         |         |
                        |---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
                        |CBE-Accre|335      |71       |  21.2%  |469      |37       |  7.9%   |804      |108      |  13.4%  |
                        |dited    |         |         |         |         |         |         |         |         |         |
                        |         |         |         |         |         |         |         |         |         |         |








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                        |         |         |         |         |         |         |         |         |         |         |
                        |---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
                        |CBE-Unacc|73       |16       |  21.9%  |207      |15       |  7.2%   |280      |31       |  11.0%  |
                        |redited  |         |         |         |         |         |         |         |         |         |
                        |         |         |         |         |         |         |         |         |         |         |
                        |         |         |         |         |         |         |         |         |         |         |
                         --------------------------------------------------------------------------------------------------- 

          Disclosure requirements. This bill would require, for purposes  
          of CSAAVE-approval, CBE-accredited law schools to provide  
          specified disclosures to applicants of the school who are  
          eligible for federal Title 38 awards.  Committee staff  
          recommends this provision be amended to require this disclosure  
          be provided to all prospective students.  Specified disclosures  
          contained in this bill include tuition, refund policies, class  
          sizes, number of faculty, attrition rates, bar passage data, and  
          employment outcomes of graduates.  However, language in the bill  
          does not specify how this data would be calculated.  Committee  
          staff understands the author's intent is that data would be  
          reported consistent with the reporting requirements contained in  
          SB 1281 (Block), currently pending in the Assembly Judiciary  
          Committee, which would amend the Business and Professions Code  
          to require disclosure from all non-ABA approved law schools.   
          Committee staff recommends incorporating and/or cross  
          referencing those reporting definitions and requirements in the  
          Education Code section amended by this bill. 


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Alton & Allen, Inc.










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          American G.I. Forum of California


          AMVETS-Department of California


          Association of California Accredited Law Schools


          California Association of County Veterans Service Officers


          California State University, Monterey Bay


          Cal Northern School of Law


          City of Seaside, California - Office of the Mayor


          Hartnell Community College District


          Law Office of Michael Sampson


          Lincoln Law School of Sacramento


          Monterey College of Law


          Monterey County Business Council


          Panetta Institute for Public Policy










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          Trinity Law School


          Veterans Tranisition Center of Monterey County


          VFW-Department of California


          13 Individuals




          Opposition


          None on File




          Analysis Prepared by:Laura Metune / HIGHER ED. / (916)  
          319-3960