BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1059| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 1059 Author: Monning (D) Amended: 6/21/16 Vote: 21 SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 4/4/16 AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski SENATE VETERAN AFFAIRS COMMITTEE: 4-0, 4/12/16 AYES: Nielsen, Hueso, Allen, Roth NO VOTE RECORDED: Nguyen SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 SENATE FLOOR: 36-0, 5/9/16 AYES: Allen, Anderson, Berryhill, Block, Cannella, De León, Fuller, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone, Vidak, Wieckowski, Wolk NO VOTE RECORDED: Bates, Beall, Gaines, Runner ASSEMBLY FLOOR: 79-0, 8/18/16 - See last page for vote SUBJECT: Postsecondary education: Title 38 awards SOURCE: Association of California Accredited Law Schools DIGEST: This bill 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 (CBE), to receive approval from SB 1059 Page 2 CSAAVE for participation in Title 38 veteran's education benefits, provided the institution 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, is in compliance with all applicable CSAAVE rules and regulations and is in good standing with the CBE. Assembly Amendments require the disclosure provided to school applicants eligible for federal Title 38 awards to be provided to all prospective students. The amendments also included conforming changes to ensure that the data reported under this bill is consistent with requirements proposed under SB 1281 (Block). ANALYSIS: 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. 2)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. (Business and Professions Code (BPC § 6046) 3)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 SB 1059 Page 3 American Bar Association (ABA) accredited with the goal of ensuring consumer protection and a legal education at an affordable cost. (BPC § 6046.7) 4)Provides that the CBE is responsible for the approval, regulation, and oversight of degree-granting law schools that exclusively offer bachelor's, master's, or doctorate degrees in law, such as a J.D. (BPC § 6060.7) 5)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). (EDC § 94874 (g)) This bill authorizes an institution that obtains and provides evidence to the CSAAVE that it has been "accredited" by the CBE, to receive approval from CSAAVE for participation in Title 38 veteran's education benefits, provided the institution 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, is in compliance with all applicable CSAAVE rules and regulations and is in good standing with the CBE. Background This bill is sponsored by the Association of California Accredited Law Schools. The Author states that law schools accredited by the CBE schools have been eligible to serve veteran students for over four decades, until an oversight in legislation in 2014 which rendered the schools ineligible to receive Title 38 benefits. According to the Author, the ABA's stringent facility and faculty requirements for accreditation are often cost-prohibitive for these smaller, regionally based law schools and notes that as a result, these schools are subsequently forced to seek accreditation through either private accrediting bodies or the State Bar. The Author is concerned that without a correction to the law, working veterans and veterans with families will be restricted from attending a law school in their region. SB 1059 Page 4 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 (VA). 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 monies under a contract with the VA. When BPPVE expired, these duties were transferred to the California Department of Veterans Affairs (Cal-Vets) which now provides oversight of postsecondary education programs through CSAAVE. 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. 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 DOD and VA that are 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 SB 1059 Page 5 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. Law Schools 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 "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. Evaluating Institutional and Program Quality. Accreditation is a voluntary, non-governmental peer review process used to determine academic quality. Under federal law, USDE establishes the general standards for accreditation agencies and is required to publish a list of recognized accrediting agencies that are deemed reliable authorities on the quality of education provided by their accredited institutions. While accredited and unaccredited education and training programs are currently allowed to operate in California, only accredited institutions are authorized to participate in federal and state financial aid programs. Degrees earned from institutions that are not accredited additionally may limit a student's career options and opportunities to receive reciprocity from other state licensing boards. Accreditation is the accepted standard for educational degrees. Accrediting bodies, as pointed out in a 2013 report issued by the Legislative Analyst's Office, are good at assessing the quality of educational programs and gathering knowledgeable subject matter experts to assess content, rigor, currency, and delivery of educational programs. They have also been good at keeping up with emerging trends in education and incorporating them into their reviews. While the accrediting process is not perfect, as highlighted by the unlawful activities of institutions accredited by some accrediting agencies, and does not focus on fair business practices that can impact a student's SB 1059 Page 6 success, accreditation is designed to provide a baseline measure of the quality of a particularly educational program. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Assembly Committee on Appropriations analysis dated August 3, 2016, this bill will result in minor fiscal impact to CSAAVE. SUPPORT: (Verified8/18/16) Association of California Accredited Law Schools (source) American GI Forum AMVETS - Department of California California Association of County Veteran Service Officers VFW - Department of California Lincoln Law School of Sacramento Monterey College of Law Cal Northern School of Law Trinity Law School Leon Panetta, Chairman of the Panetta Institute Monterey County Business Council Santa Cruz County Supervisor Ryan Coonerty OPPOSITION: (Verified8/18/16) None received ARGUMENTS IN SUPPORT: Supporters believe that this bill will fix the unintended consequences of AB 2099 and note, that in order to become accredited, schools that this bill would assist must establish that their paramount objective is to provide a sound legal education. Supporters believe that State Bar accreditation provides an assurance that schools our veterans attend receive a beneficial and cost effective legal education. SB 1059 Page 7 Supporters write that State Bar accredited schools must maintain a sound program of legal education and adhere to carefully drawn rules that regulate all aspects of the institution. Supporters note that working men and women, many of whom are veterans, are able to realize their aspirations because of these programs located in areas unserved by other law schools and that are affordable and offer day and night programs. ASSEMBLY FLOOR: 79-0, 8/18/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Roger Hernández Prepared by: Sarah Mason / B., P. & E.D. / (916) 651-4104 8/19/16 19:21:38 **** END ****