BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1059


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          Date of Hearing:  June 28, 2016


                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS


                                 Jacqui Irwin, Chair


          SB  
          1059 (Monning) - As Amended June 21, 2016


          SENATE VOTE:  36-0


          SUBJECT:  Postsecondary education:  Title 38 awards


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


          1)Authorizes 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  
               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, 










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             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  
                 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.








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               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:  Negligible fiscal impact according to the Senate  
          Rule 28.8.


          COMMENTS:  This bill is double-referred and was heard by the  
          Assembly Higher Education Committee on prior to its hearing in  
          this Committee.  


          While a portion of that analysis is restated below, reading the  








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          complete bill analysis by the Higher Education Committee is  
          recommended for its expert and thorough discussion of the  
          accreditation and other issues presented by this bill in context  
          with higher education practices and models.


          According to the Higher Education Committee:


            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  








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            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.


          As noted above, though veteran students are typically a small  
          minority at these schools, they have allegedly been the subject  
          of disproportionate recruitment by the schools and unscrupulous  
          practices rooted in financial gain for the schools.  The general  
          policy trend has been to increase oversight and protection of  
          all students attending for-profit schools and particularly for  
          veteran students.  As the gatekeeper of veterans' education  
          benefits in California, CalVet as the CSAAVE has been a national  
          leader in this arena.


          This committee has had more than one hearing focused in whole or  
          in part on Title 38 benefits, for-profit schools, and  
          accreditation.  One challenging issue, among many, has been how  
          to evaluate the quality of education provided by the schools and  
          educate student consumers.  The primary touchstone has been to  
          rely on accreditation by an academic accrediting body coupled  
          with disclosure to students of the outcomes, cost, etc. of  
          educational programs.    


          However, in California and elsewhere, colleges have closed  
          overnight without notice to students while maintaining current  
          accreditation and students have been unable to obtain credit for  
          their educational progress at another school, leaving them with  
          an unfinished degree program. There has been and continues to be  
          serious criticism aimed at some academic accreditation bodies  
          pertinent to the for-profit school industry.  Just this month,  
          as reported by the "Inside Higher Ed" online industry  








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          publication: 


            The U.S. Department of Education has recommended the  
            termination of a controversial accreditor, which could  
            threaten access to federal financial aid for 243 institutions  
            -- many of them for-profits -- that enroll more than 800,000  
            students.





            The department's extraordinary recommendation to eliminate the  
            Accrediting Council for Independent Colleges and Schools, a  
            large national accreditor that was the gatekeeper for $4.76  
            billion in federal aid spending last year, follows widespread  
            criticism of ACICS's oversight of Corinthian Colleges.





            The National Advisory Committee on Institutional Quality and  
            Integrity (NACIQI) soon will pass its decision back to the  
            U.S. Department of Education, which last week recommended  
            shutting down ACICS and will have 90 days to decide the  
            accreditor's fate. An appeal by the accreditor and lawsuits  
            could follow.


          Most law schools in California are accredited by the ABA which  
          is recognized as an approved accrediting body for Title 38  
          purposes.  This bill is not about those schools, however, it is  
          worthy of note that Inside Higher Ed also reported:


            Most notably, the panel on Wednesday rebuked the American Bar  
            Association, in part for its lack of attention to student  








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            achievement.





            The ABA accredits law schools, some of them freestanding  
            institutions. NACIQI, after three contentious votes,  
            recommended that the department suspend the association's  
            ability to accredit new members for a year. The panel said the  
            ABA had failed to implement its student achievement standards  
            and probationary sanctions, while also falling short on its  
            audit process and analysis of graduates' debt levels.


          The non-American Bar Association accredited law schools impacted  
          by this bill are accredited instead by the Committee of Bar  
          Examiners which is not recognized as an approved accrediting  
          body for Title 38 purposes.  


          As discussed above, there is a great deal of attention at both  
          the state and federal level focused on the efficacy and  
          reliability of accreditation, and the practices of the  
          for-profit education industry. This bill is an attempt to strike  
          a reasonable balance between an absolute requirement that all  
          Title 38 eligible California law schools be accredited, the  
          accrediting practices of the CBE and the degree to which they  
          are equivalent to those of the ABA, the burden on schools of  
          seeking ABA accreditation, the risk to students in terms of  
          academic progress, potential loss of GI bill benefits, and other  
          considerations.  The current language of the bill does not  
          require ABA accreditation, but does mandate enhanced reporting  
          and disclosure of performance metrics to the public as well as  
          enhanced regulatory oversight by CSAAVE.


          REGISTERED SUPPORT / OPPOSITION:









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          Support


          Alton & Allen, Inc.


          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










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          Monterey College of Law


          Monterey County Business Council


          Panetta Institute for Public Policy


          Trinity Law School


          Veterans Tranisition Center of Monterey County


          VFW-Department of California


          13 Individuals




          Opposition


          None on File. 




          Analysis Prepared by:John Spangler / V.A. / (916)  
          319-3550














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