BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          SB 195
          Senator Florez
          As Amended April 16, 2009
          Hearing Date: April 28, 2009
          Education Code
          KB:jd
                    

                                        SUBJECT
                                           
                           Equity in Higher Education Act

                                      DESCRIPTION  

          This bill would expand the information that must be included in  
          the assurance of compliance with Title IX currently provided by  
          postsecondary educational institutions to the Student Aid  
          Commission.  This bill would also provide that a chief  
          administrative official who declares as true any material matter  
          in the assurance that he or she knows or reasonably should have  
          known to be false shall be subject to a civil penalty not  
          exceeding $50,000.  This bill would allow any person acting in  
          the public interest to bring an action to recover the civil  
          penalty pursuant to this bill's provision.    

                                      BACKGROUND  

          Title IX of the Education Amendments of 1972 to the Civil Rights  
          Act of 1964 prohibits educational institutions that receive  
          federal financial support from engaging in sex-based  
          discrimination.  Specifically, it provides, "No person in the  
          United States shall, on the basis of sex, be excluded from  
          participation in, be denied the benefits of, or be subjected to  
          discrimination under any educational program or activity  
          receiving federal financial assistance."  (20 U.S.C. Sec. 1681.)  
           Pursuant to Title IX, the former Department of Health,  
          Education and Welfare and its successor departments (Department  
          of Health and Human Services and Department of Education)  
          promulgated regulations implementing the statute.  A policy  
          interpretation was subsequently issued to provide institutions  
          of higher education with guidance on the requirements for  
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          compliance with Title IX in intercollegiate athletic programs.   
          This policy interpretation is now known as the three-part test.   
           In order to meet the requirements of Title IX, a school must  
          show compliance with one of these three parts: 

          1)Athletic participation of women and girls is proportionate to  
            enrollment.
          2)The school has a history and continuing practice of program  
            expansion for women or girls.
          3)The school is fully meeting female athletes' interests and  
            abilities in its present athletic program(s). 
               
          While it applies to all aspects of educational opportunities,  
          Title IX's most notable success is opening the door to athletics  
          for girls and women.  Because almost all public elementary and  
          secondary schools, and colleges and universities receive some  
          federal funding, their athletic programs are covered by Title  
          IX.
                                                      
          In 2003, the Legislature enacted AB 833 (Steinberg, Chapter 660,  
          Statutes of 2003), which established standards virtually  
          identical to those of Title IX, with one modification:  in Test  
          2, "history" is defined to mean the past two years.

          While current state and federal laws require postsecondary  
          educational institutions to provide assurances of compliance  
          with Title IX, lawsuits continue to be filed against these  
          institutions.  For example, the California State University  
          (CSU) at Fresno has lost judgments or entered into settlement  
          agreements since 2007 totaling over $17 million, and faces  
          another gender discrimination lawsuit filed in March of 2009.  

          This bill seeks to increase the amount of information required  
          in assurances of compliance with Title IX, and improve overall  
          compliance at the state's public and private postsecondary  
          educational institutions.  

          This bill was approved by the Senate Committee on Education on  
          April 15, 2009 and referred to this committee for review of the  
          provisions within the committee's jurisdiction.

                                CHANGES TO EXISTING LAW
           
           Existing federal law   prohibits discrimination on the basis of  
          sex for any educational program receiving federal assistance  
          through Title IX of the Educational Amendments  of 1972 to the  
                                                                      



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          Civil Rights Act of 1964. (20 U.S.C. Sec. 1681 et seq.)
           
          Existing state law  , the Equity in Higher Education Act (Act),  
          provides that it is the policy of the state to afford all  
          persons, regardless of disability, gender, nationality, race or  
          ethnicity, religion, sexual orientation, or other specified  
          bases, equal rights and opportunities in the postsecondary  
          institutions of the state.  (Ed. Code Sec. 66251.)
           
          Existing state law  requires the following people or entities to  
          have the primary responsibility for ensuring that programs and  
          activities are free from discrimination:
          a)The governing board of a community college district, with the  
            Chancellor's office of the California Community Colleges (CCC)  
            having responsibility for monitoring the compliance of each  
            district.
          b)The Chancellor of the CSU and the president of each campus.
          c)The President of the UC and the chancellor of each campus.   
            (Ed. Code Secs. 66292-66292.2.)
           Existing state law  requires a postsecondary educational  
          institution, prior to receipt of any state financial assistance  
          or state student financial aid, to provide assurance that each  
          program or activity conducted by the institution will be in  
          compliance with state laws prohibiting discrimination on the  
          basis of sex.  (Ed. Code Sec. 66290.)  

           Existing state law  requires a signature from "an appropriate  
          responsible official of the postsecondary educational  
          institution."  (Ed. Code Sec. 66290.)  

           Existing law  authorizes a party to a written complaint of  
          prohibited discrimination to appeal the action taken by the  
          community college district or president of a campus of the CSU,  
          to the Board of Governors of the CCC or the Chancellor of the  
          CSU.  (Ed. Code Sec. 66292.3.)

           Existing law  requires an educational institution to advise a  
          person who has filed a complaint that civil law remedies,  
          including but not limited to, injunctions, restraining orders,  
          or other remedies or orders may also be available to  
          complainants.  The institution is required to make this  
          information available by publication in appropriate  
          informational materials.  (Ed. Code Sec. 66292.3.)

           Existing law  provides that an appeal to the Board of Governors  
          of the CCC or Chancellor of the CSU does not have to be  
                                                                      



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          exhausted prior to the pursuit of civil law remedies.  (Ed. Code  
          Sec. 66292.3.)

           Existing law  authorizes the Equity in Higher Education Act,  
          including all of the above described provision, to be enforced  
          through a civil action.  (Ed. Code Sec. 66292.4.)

           This bill  would expand the information that must be included in  
          the assurance of compliance with Title IX currently provided by  
          postsecondary educational institutions to the California Student  
          Aid Commission.  

           This bil  l would add the following specific components, at a  
          minimum, to the assurance required as a condition of receiving  
          state financial assistance or state student financial aid:
          a)Information regarding compliance for each campus or location  
            of the postsecondary educational institution.  
          b)The annual number of complaints of prohibited discrimination  
            filed, including the number of written complaints received by  
            each campus or location of the postsecondary educational  
            institution.  
          c)The annual number of civil actions filed pursuant to current  
            law.
          d)A description of any information against discrimination  
            provided to the students by the postsecondary educational  
            institution.  

           This bill  would require the above information to be made  
          available for public inspection upon request.

           This bill  would specify that the signatory of the assurance is  
          the chief administrative official of the institution, and the  
          campus Title IX coordinator.  

           This bill  would impose a requirement that a single assurance be  
          provided as a condition of receiving state financial assistance  
          or state student financial aid.

           This bill  would delete the requirement that the assurance be not  
          more than one page in length.

           This bill  would define "chief administrative official" as:
          a)The President of the University of California.
          b)The Chancellor of the California State University.
          c)The president of a campus of the California Community  
            Colleges.
                                                                      



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          d)The president or highest ranking official of the private  
            postsecondary educational institution.

           This bill  would define "Title IX compliance officer" as the  
          employee designated by the postsecondary educational institution  
          to coordinate compliance with Title IX.

           This bill  would provide that a chief administrative official who  
          declares as true any material matter in the assurance that he or  
          she knows or reasonably should have known to be false shall be  
          subject to a civil penalty not exceeding $50,000.    

           This bill  would provide that the civil penalty may be assessed  
          and recovered in a civil action brought in any court of  
          competent jurisdiction.

           This bill  would provide that civil actions pursuant to this  
          bill's provisions may be brought by any person in the public  
          interest.

                                        COMMENT
           
              1.   Stated need for the bill
           
          According to the author, there is a deficiency in the  
          enforcement of state and federal laws requiring compliance with  
          Title IX.  Currently, the California Student Aid Commission  
          (CSAC) requires postsecondary educational institutions to submit  
          a one page document called the Cal Grant Institutional  
          Participation Agreement (IPA).  The IPA is the managing contract  
          between the CSAC and Cal Grant participating institutions.   
          Postsecondary education institutions that would like to disburse  
          Cal Grant funds to eligible students on their campuses must have  
          an IPA on file with the CSAC.
          Institutions use the IPA to apply for initial participation,  
          renewal, change of ownership or structure, or to update a  
          current approval.  

          The IPA contains a check box that states, "This Institution  
          meets the requirements of Section 66290 of the [California  
          Education Code]."  Postsecondary institutions are not required  
          to submit any substantive information as to how they are  
          complying with federal and state laws regarding gender equity in  
          higher education; they need only check off the box.  This bill  
          seeks to increase the amount of information required in  
          assurances to ensure that public and private postsecondary  
                                                                      



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          educational institutions are complying with federal and state  
          law.

           2.This bill would impose civil penalties on chief administrative  
            officials for knowingly or negligently providing material  
            misrepresentations in assurances

           Title IX requires each recipient to designate at least one  
          employee to serve as a Title IX coordinator, and to adopt and  
          publish internal grievance procedures to promptly and equitably  
          resolve complaints alleging discrimination on the basis of sex.   
          (34 C.F.R. Section 106.8.)  All campuses of the UC, CSU, CCC,  
          and private institutions that receive federal aid should have a  
          Title IX coordinator, and the public institutions likely also  
          have a Title IX coordinator at each segment level.  

          Anyone who believes that an education institution that receives  
          federal financial assistance has discriminated against someone  
          may file a complaint with the federal Office of Civil Rights.   
          Postsecondary educational institutions that do not comply with  
          Title IX are at risk of losing federal and state assistance or  
          federal and state student aid.  This existing penalty primarily  
          affects students because it decreases the amount of assistance  
          available.  However, committee staff has no information showing  
          any financial aid has ever been withheld from a California  
          postsecondary educational institution.  

          As previously stated, assurances currently consist of a check  
          box, and a signature line on the IPA for the Cal Grant program.   
          The assurance is required to be signed by "an appropriate  
          responsible official of the postsecondary educational  
          institution."  (Ed. Code Sec. 66290.)  

          In addition to increasing the amount of information provided on  
          assurances, this bill would require that the assurance be signed  
          by the Title IX compliance officer of the applicable campus or  
          location of the postsecondary educational institution, if any,  
          and the "chief administrative official."  "Chief administrative  
          official" would be defined as one of the following: (1) the  
          President of the University of California; (2) the Chancellor of  
          the California State University; (3) the president of a campus  
          of the California Community Colleges; or (4) the president or  
          highest ranking official of the private postsecondary  
          educational institution.  "Title IX compliance officer" means  
          the employee designated by the postsecondary educational  
          institution to coordinate compliance with Title IX of Education  
                                                                      



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          Amendments o f 1972 pursuant to federal regulations implementing  
          that law.

          This bill would also impose a new civil penalty on a chief  
          administrative official who knowingly or negligently declares as  
          true any material matter required to be in the assurance.  The  
          negligent standard is intended to ensure that individuals  
          ultimately responsible for the school's Title IX compliance  
          (i.e., the president, chancellor, or other high ranking  
          official) is conducting due diligence in ensuring that the  
          school is, in fact, compliant, and not merely checking off a  
          box.

          The negligence standard is not normally used to assess civil  
          penalties on individuals, especially where the person bringing  
          the action has not suffered direct injury.  However, omitting  
          the negligence standard in this case would negate the purpose of  
          the bill and create a loophole where chief administrative  
          officials could avoid accountability.  This committee may wish  
          to consider whether chief administrative officials should be  
          required to conduct due diligence in completing the assurance  
          and attesting to its accuracy.  

          The suggested amendment would be as follows:  

          On page 3, line 27, after the second "or" insert "after  
          conducting due diligence,"

          This would clarify that the chief administrative official has an  
          affirmative duty to conduct due diligence when completing and  
          submitting the assurance.  If an official fails to carry out due  
          diligence and falsely represents material matter that he or she  
          should have known to be false, then he or she will be liable for  
          the civil penalty. 

          The civil penalties available pursuant to this bill would be  
          separate from any damages that may already be recovered under  
          the Equity in Higher Education Act.  (Ed. Code Sec. 66292.4.)   
          In addition, individuals have an implied private right of action  
          under Title IX.  (See Cannon v. University of Chicago (1979) 441  
          U.S. 677 (holding that an individual has a private right of  
          action under Title IX, and may recover monetary damages in such  
          actions).)

           3.This bill would provide that civil penalties may be recovered  
            by any person acting in the public interest
                                                                      



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           Generally, civil enforcement statutes allow civil penalties to  
          be recovered only by prosecutors, not by private litigants.   
          Private plaintiffs who have been damaged by a statutory  
          violation usually are restricted to traditional damage suits, or  
          where damages are difficult to prove, to "statutory damages" in  
          a specified amount or range.  (See, e.g., Unruh Civil Rights  
          Act, Civ. Code Sec. 52, allowing statutory damages in a minimum  
          amount of $4,000 per violation to prevailing private litigants  
          in actions alleging denial of equal access or other forms of  
          discrimination.)

          This bill would allow the private recovery of civil penalties as  
          opposed to statutory damages.  Civil penalties are usually  
          recovered by the Attorney General acting on behalf of the state.  
           However, in this instance, requiring the Attorney General to  
          pursue and recover civil penalties through a civil action would  
          raise conflict of interest issues with the University of  
          California and California State University, both of whom the  
          Attorney General represents.  Further, the recovery of civil  
          penalties by private litigants does have some precedent in  
          existing law.  The Unruh Civil Rights Act allows either the  
          victim of a hate crime or a public prosecutor to bring an action  
          for a civil penalty of $25,000 against the perpetrator of the  
          crime.  (Civ. Code Secs. 51.7, 52.)  In addition, the Private  
          Attorney General Act of 2004 ("PAGA") codified in Labor Code  
          Section 2698, et seq. allows a private citizen to pursue civil  
          penalties on behalf of the State of California Labor and  
          Workforce Development Agency ("LWDA").  However, unlike these  
          existing statutes providing for private recovery of civil  
          penalties, this bill would not require that a person be an  
          "aggrieved party," or in other words, suffer actual injury to  
          recover the civil penalty.  Rather, anyone could bring an action  
          in the public interest.  Because this bill is intended to  
          promote the general public interest in ensuring compliance with  
          state and federal gender equity laws, this committee may wish to  
          consider whether a portion (at least 50 percent) of the civil  
          penalties recovered in these actions should be distributed to  
          the state's General Fund or other specified fund to be used for  
          enforcement of and education on the state's gender equity laws.   
                      

          The suggested amendment would be as follows:

          On page 3, line 35, after the period insert "Civil penalties  
          recovered by a private party acting in the public interest shall  
                                                                      



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          be distributed as follows:  50 percent to the General Fund, and  
          50 percent to the private party."

          This is similar to provisions in the PAGA, which require that 75  
          percent of the civil penalties recovered be distributed to the  
          Labor Workforce Development Agency for the enforcement of labor  
          laws and education of employers and employees on their rights  
          and responsibilities under the Labor Code.  In this manner, the  
          bill would ensure that the public reaps some benefit from  
          assessed civil penalties, and that private parties who never  
          suffered direct injuries do not get to retain all of the monies.  
           

              4.   Suggested technical amendment
           
          This bill would require assurances to include "a description of  
          any information against discrimination, as described in Section  
          66271.8, provided to students by the postsecondary educational  
          institution."  However, Section 66271.8 generally refers to  
          equivalent programs for male and female students in public  
          postsecondary institutions.  According to the author's office,  
          this cross-reference is a technical error.  This cross-reference  
          should instead be to 34 Code of Federal Regulations Section  
          106.9, which mandates the dissemination of the school's  
          anti-discrimination policies and practices.  

          The following suggested amendment would correct this error:

          On page 3, line 19, strike "Section 66271.8," and insert "34  
          C.F.R. Section 106.9." 



           Support  :  American Civil Liberties Union; Equal Rights  
          Advocates; California Teachers Association; California  
          Communities United Institute 

           Opposition  :None Known

                                        HISTORY
           
           Source  :Author

           Related Pending Legislation  : 

          SB 248 (Oropeza) would require a school district, the president  
                                                                      



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          or chief executive officer of a CCC campus, and the president of  
          a campus of the CSU to place on their Internet Web site, and  
          post on the entrance to the gymnasiums of the schools, colleges,  
          or universities, as the case may be, and in the locker rooms,  
          the list of rights accorded to pupils under Title IX.  SB 248  
          also requests the chancellor of a campus of the University of  
          California to take the same action.  SB 248 is scheduled for  
          hearing in the Senate Education Committee on April 22, 2009.

          AB 685 (Davis) requires the School Facilities Planning Division  
          of the California Department of Education to include, as part of  
          its review of an application for new construction plan approval,  
          a determination of whether the proposed project would comply  
          with Title IX.  AB 685 is pending in the Assembly Appropriations  
          Committee.

           Prior Legislation  :

          SB 1578 (Florez, 2008) would have established California Title  
          IX for purposes of monitoring college athletics gender equity on  
          postsecondary campuses that have NCAA intercollegiate programs,  
          and would have required the CSU and request the UC to carry out  
          new responsibilities concerning gender equity.  SB 1578 was  
          never heard.

          AB 322 (Oropeza, Chapter 386, Statutes of 2005) required the  
          California Department of Education to post on its Web site in  
          English and Spanish the rights specified under Title IX by July  
          1, 2006.

           Prior Vote  :

          Senate Education Committee (Ayes 5, Noes 1)

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