BILL ANALYSIS Ó SB 1059 Page 1 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, SB 1059 Page 2 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. SB 1059 Page 3 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 SB 1059 Page 4 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 SB 1059 Page 5 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 SB 1059 Page 6 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 SB 1059 Page 7 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: SB 1059 Page 8 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 SB 1059 Page 9 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 SB 1059 Page 10