BILL ANALYSIS                                                                                                                                                                                                    Ó





                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular  Session


          SB 1281 (Block)
          Version: April 18, 2016
          Hearing Date:  April 26, 2016
          Fiscal: No
          Urgency: No
          ME   



                                        SUBJECT
                                           
                  Law schools:  unaccredited law school disclosures

                                      DESCRIPTION  

          Under current law, law schools that are not accredited by the  
          State Bar examining committee must provide every student with a  
          disclosure statement detailing that the law school is not  
          accredited, as well as the number and percentage of students who  
          have taken and passed the first-year law student's examination  
          and the final bar examination over a specified period of time.  

          This bill would require a law school that is not accredited by  
          the American Bar Association (ABA) to post on its Internet Web  
          site specified information, including tuition costs, class  
          sizes, number of faculty, bar passage data, and employment  
          outcomes for graduates.  The bill would additionally authorize  
          the State Bar to develop a standard information reporting  
          template to aid the law schools in reporting the disclosures.   
          The bill would require specific disclosure information be  
          provided to applicants being offered conditional scholarships at  
          the time the scholarship offer is extended. The bill would  
          further require these law schools to report this information to  
          the State Bar as part of the annual compliance report these law  
          schools already submit to the State Bar.  

                                      BACKGROUND 

          The American Bar Association accredits law schools throughout  
          the United States, including California law schools.  The State  








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          Bar of California accredits law schools in California as well.   
          There are also unaccredited law schools in California.  These  
          unaccredited law schools lack accreditation from the American  
          Bar Association or the California State Bar.  

          Graduates from any of these law schools can become licensed to  
          practice law in the State of California if they pass the bar  
          examination and meet other criteria.  Graduates of non-ABA  
          accredited law schools have a significantly lower likelihood of  
          passing the California Bar examination than graduates of ABA  
          accredited law schools.  February 2015 California State Bar  
          examination results demonstrate that a graduate of an ABA  
          accredited law school taking the Bar for the first time had a  
          53.9% chance of passing.  By comparison, a graduate of a  
          California Bar accredited law school had a 30.3% chance of  
          passing the bar.  And, a graduate of an unaccredited law school  
          had a 35.4% chance of passing the bar on the first try. 

          ABA accredited law schools are required to make standard  
          disclosures on their websites that enable prospective students  
          to make informed decisions about applying and attending the law  
          schools.  The information ABA law schools are required to post  
          include bar passage rates, tuition cost, class size, grants and  
          scholarships awarded, grade point averages, LSAT scores,  
          demographic information, curriculum, attrition rates, and  
          faculty information.  By contrast, California State Bar  
          accredited law schools and non-accredited law schools are not  
          required to post all of this information.

          To ensure that prospective students can make informed decisions  
          about which law schools to attend, this bill would require  
          California accredited law schools and unaccredited law schools  
          to post information on their Internet Web sites, including bar  
          passage data, tuition, fees, financial aid, admissions data,  
          employment outcomes for graduates, conditional scholarships,  
          enrollment data, faculty information, average class size for  
          required courses, and the number of clinical offerings. 

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that the State Bar's highest priority is  
          protection of the public, and, whenever the protection of the  
          public is inconsistent with other interests sought to be  
          promoted, the protection of the public shall be paramount.   
          (Bus. & Prof. Code Sec. 6001.1)







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           Existing law  requires that attorneys who wish to practice law in  
          California generally must be admitted and licensed in this state  
          and must be a member of the State Bar. (Cal. Const., art. VI,  
          Sec. 9.)
           
          Existing law  , the State Bar Act, sets forth requirements for an  
          individual to be certified by the Supreme Court for admission  
          and a license to practice law, including but not limited to,  
          having to pass the general bar examination, passing an  
          examination in professional responsibility, and having to  
          complete certain legal education in a law school, law office, or  
          judge's chambers.  (Bus. & Prof. Code Sec. 6060)

           Existing law  requires that law schools not accredited by the  
          State Bar shall provide a disclosure statement after the  
          prospective student pays application fees, but prior to the  
          payment of registration fees, and requires the prospective  
          student to acknowledge and sign the disclosure.  (Bus. & Prof.  
          Sec. 6061.)

           Existing law  requires that the disclosures provided by  
          unaccredited law schools shall include: 
                 The passage rates of students who have taken the  
               first-year law student's examination; (Bus. & Prof. Sec.  
               6061(c).)
                 The passage rates of students who took the final bar  
               examination in the previous five years; (Bus. & Prof. Sec.  
               6061(c).)
                 The ratio of faculty to students;  (Bus. & Prof. Sec.  
               6061(f).)
                  A statement that the education provided by the school  
               may not satisfy the requirements of other states for the  
               practice of law; and ((Bus. & Prof. Sec. 6061(h).)
                 Other disclosures as specified.

           This bill  would require that any law school in California not  
          approved by the American Bar Association to publicly disclose on  
          its Internet Web site, with a link from the Internet home page  
          under "admissions," information pertaining to all of the  
          following:
                 Admissions data; 
                 Tuition, fees, and financial aid;
                 Conditional scholarships;  
                 Enrollment data, including academic, transfer, and other  







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               attrition;  
                 Number of full-time and part-time faculty, professional  
               librarians, and administrators;  
                 Employment outcomes for graduates; and  
                 Bar passage data.  
          
           This bill  would require the above disclosures to be published in  
          a standardized information report, allow the State Bar to create  
          a standardized information report template, and require the law  
          schools to include the standardized information report as part  
          of their annual compliance report to the State Bar.

           This bill  would require a non-ABA approved law school to  
          additionally publicly disclose the following information on its  
          Internet Web site, as specified:
                 Refund policies;
                 Curricular offerings, academic calendar, and academic  
               requirements; and
                 Policies regarding the transfer of credit earned at  
               another institution of higher education.

           This bill  would require that all information that a law school  
          reports, publicizes, or distributes pursuant to the above  
          requirements shall be complete, accurate, and not misleading to  
          a reasonable law school student or applicant.

           This bill  would require that a law school shall use due  
          diligence in obtaining and verifying such information. 

           This bill  would provide definitions for the required  
          disclosures.

                                        COMMENT
           
          1.   Stated need for the bill
           
          The author writes:

             Students attending a non-ABA accredited law school have a  
             significantly lower likelihood of passing the California  
             Bar exam.  In February of 2015, a first-time student from  
             an ABA accredited law school had a 53.9% [bar passage  
             rate].  By comparison, a first-time student attending a  
             California Bar accredited law school had a 30.3% passage  
             rate, while a student attending an unaccredited law school  







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             had a 35.4% passage rate.  The gap widens significantly  
             for repeat test takers.  Where 47.5% of repeat takers from  
             an ABA accredited school passed, only 17.3% of repeat  
             takers from [California] Bar accredited schools passed.   
             Repeat takers from unaccredited schools only had a 15% bar  
             passage rate.

             It is clear that students attending non-ABA accredited  
             programs are less likely to pass the Bar exam in  
             California.  What is also clear is that ABA-accredited law  
             schools are required to make significant disclosures to  
             their students, while non-ABA accredited schools are held  
             to nowhere near the same standard.

             [The ABA] requires law schools to post important  
             disclosure information on their websites, including: bar  
             passage rates, tuition cost, class size, grants and  
             scholarships awarded, GPA and LSAT scores, demographic  
             information, curriculum, attrition rates, and faculty  
             information.

             An unaccredited law school is required by law to make some  
             disclosures to students, but only after a student has  
             applied to the institution.  California Bar accredited  
             schools are required by regulation to post Bar passage  
             rate information on their website.  The disclosures  
             required [by the ABA] are not only more robust, but also  
             more useful, as they are available to a prospective  
             student before beginning the application process.

             SB 1281 will allow prospective students to make "apples to  
             apples" comparisons between ABA accredited and non-ABA  
             accredited law schools in California.



          2.   Consumer protection  

          From a consumer protection perspective, prospective law students  
          benefit from access to information to make informed decisions  
          regarding where to invest their time and money in pursuit of  
          legal education.  In support, the Center for Public Interest Law  
          at the University of San Diego School of Law notes that  
          "students who yearn to practice law are being persuaded to  
          enroll in institutions with low Bar passage rates and are  







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          incurring life-altering debt; debt that cannot be eliminated  
          through bankruptcy.  They fairly should be apprised that there  
          is little chance they will become a California lawyer."   
          However, the CPIL points out, the prospective students "are not  
          fairly apprised of this fact."  The CPIL notes that not "even a  
          quarter of exam takers who graduated from non-ABA accredited  
          schools passed the [February 2015] Bar exam."  CPIL further  
          notes that "the institutions where the chances of passing the  
          Bar exam are the best have the best disclosures and the  
          institutions with the least chances have the worst disclosures."

          ABA approved institutions must, as a condition of approval, post  
          robust disclosures on their Internet Web sites.  The ABA  
          disclosures must be accessible from the home page.  The State  
          Bar's accreditation, in contrast, permits minimal disclosures.   
          The State Bar accredited law schools are merely required to post  
          a link to the California Bar Examination "statistics" page at  
          the State Bar's Web site or the pass rates of its graduates for  
          the ten most recent administrations of the California Bar  
          Examination.  

          The Association of California Accredited Law Schools writes the  
          following in support:

             Consumer protection is crucial and our applicants and  
             students should be provided as much information as  
             possible in order to make intelligent decisions regarding  
             whether to attend law school and which law school to  
             attend.  Senate Bill 1281 through its requirements that  
             specified information relating to cost, admissions,  
             enrollment, faculty, employment, class sizes, and bar  
             passage be posted in a manner that is complete, accurate,  
             and not misleading to a reasonable student or applicant is  
             clearly in furtherance of the goal that our consumers be  
             protected.

          California has a strong public policy of protecting consumers.   
          This bill would protect consumers - specifically, potential law  
          students -- by ensuring they have access to information that is  
          necessary for them to make informed decisions regarding applying  
          to law school and attending law school. 

           Support  :  Association of California Accredited Law Schools  
          (CALS); Center for Public Interest Law; Public Advocates; Public  
          Law Center







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           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :

          SB 1257 (Block) Would require any person who applies to become a  
          licensed California attorney to complete at least 50 hours of  
          pro bono service, as defined, prior to filing an application for  
          admission with the State Bar of California.

           Prior Legislation  :  None Known

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