BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  HR 41
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          Date of Hearing:   May 28, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                 HR 41 (Ting and Ammiano) - As Amended:  May 23, 2014
           
          SUBJECT  :   City College of San Francisco

           SUMMARY  :  Urges the Accrediting Commission for Community and  
          Junior Colleges (ACCJC) to consider the progress of City College  
          of San Francisco (CCSF) toward achieving compliance with  
          standards and to provide CCSF additional time to continue  
          solving problems while keeping its accreditation intact.  

           EXISTING LAW  establishes the California Community Colleges (CCC)  
          Board of Governors (BOG) to provide general supervision over the  
          CCC and requires the BOG to prescribe minimum standards for CCC  
          receipt of apportionment funding (Education Code �66700).  BOG  
          regulations (5 CCR �51016) require CCCs to be accredited by  
          ACCJC.

           FISCAL EFFECT  :  Unknown. 

           COMMENTS  :   Purpose of this resolution  .  According to the author,  
          without action by ACCJC, termination of the accreditation of  
          CCSF could take effect as soon as the end of July.  The author  
          notes that ACCJC is scheduled to meet June 4-6, but does not  
          have any discussion of CCSF listed on its agenda, suggesting  
          that ACCJC is intent to close the school without a review of its  
          significant progress.  The author argues that reasonable heads  
          must prevail at ACCJC and the college must be provided  
          additional time to meet all accreditation standards.  The author  
          notes that "if the school closes, the education goals of its  
          80,000 students will be thrown under the bus because there is no  
          backup peer institution to take them in."  According to the  
          author, "The prospect of such a crisis prompted the introduction  
          of this resolution and a companion measure in the State Senate,  
          asking the Legislature to weigh in on this situation because it  
          establishes a reckless and arbitrary precedent for the review of  
          every community college in California."     

           Background on accreditation  .  Accreditation is a voluntary,  
          non-governmental peer review process used to determine academic  
          quality.  Accrediting agencies are private organizations that  
          establish operating standards for educational or professional  








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          institutions and programs, determine the extent to which the  
          standards are met, and publicly announce their findings.  Under  
          federal law, the United States Department of Education (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.  Institutional  
          accreditation is a requirement for participation in federal  
          financial aid programs.  Under federal regulations, accrediting  
          agencies are required to meet general outlined standards, but  
          specific processes and quality standards are left to each  
          accrediting agency to determine.  

          There are six USDE-recognized regional accrediting agencies.  
          Each regional accreditor encompasses public, the vast majority  
          of non-profit private (independent), and some for-profit  
          postsecondary educational institutions in the region it serves.   
          California's regional accrediting agency is separated into two  
          commissions; ACCJC is the regional accrediting agency for  
          community colleges in the western region (California, Hawaii,  
          and U.S. territories).  

          Commission membership consists of the institutions ACCJC has  
          accredited; the 19 ACCJC commissioners are elected by a vote of  
          the presidents of the member-colleges and serve up to two  
          three-year terms.  ACCJC bylaws govern, among other areas,  
          commission meetings, responsibilities of commissioners, and the  
          appeal process for institutions appealing a denial or  
          termination of accreditation.  ACCJC bylaws may be amended by a  
          majority vote of the Commissioners.  Under ACCJC bylaws, the  
          president, appointed by the Commissioners, is responsible for  
          general supervision, direction, and control of ACCJC operations.  
           

          Background on CCSF deficiencies  .  In July of 2012, CCSF was  
          placed on "Show Cause" status by ACCJC.  The ACCJC visiting team  
          found, among other deficiencies, that the college had  
          insufficient cash flow and reserves to maintain financial  
          stability and no realistic plans to meet financial emergencies  
          and unforeseen circumstances.  The institution was provided one  
          year to establish compliance with accrediting standards.  In  
          September of 2012, the CCC Chancellor's Office and the Fiscal  
          Crisis & Management Assistance Team (FCMAT) released an audit of  
          fiscal stability and management controls.  The audit found that  
          CCSF was near fiscal insolvency resulting from poor financial  








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          decisions and lack of accountability.  In July of 2013, ACCJC  
          voted to terminate accreditation effective July 31, 2014,  
          subject to review and appeal.  ACCJC found that of the 2012  
          recommendations, CCSF fully addressed only two, nearly addressed  
          one, and eleven were inadequately addressed.  Also in July,  
          CCCCO and FCMAT released a second fiscal review which found  
          overall non-implementation of 2012 recommendations.  

           Background on CCSF interventions  .  In October 2012, BOG  
          appointed Robert Agrella as special trustee under limited powers  
          to assist CCSF in achieving sound financial management.   
          Following the ACCJC decision to revoke accreditation, on July 9,  
          2013, BOG voted to authorize Special Trustee Agrella to assume  
          full management and control of the district.  In November 2013,  
          Arthur Tyler was named Chancellor of CCSF.  Currently, Special  
          Trustee Agrella and Chancellor Tyler are working to address  
          ACCJC and FCMAT standards and recommendations.  According to  
          CCSF, the college has addressed 95% of the college's objectives  
          outlined in the Roadmap to Success.   
           
          ACCJC Candidacy proposal  .  On April 12, 2014, an editorial by  
          ACCJC Commissioners Sherrill Amador and Steven Kinsella was  
          published in the San Francisco Chronicle, detailing a proposed  
          pathway for CCSF to voluntarily relinquish accreditation and  
          simultaneously seek "candidacy status" from ACCJC.  Amador and  
          Kinsella wrote that ACCJC was unable to provide CCSF additional  
          time to complete the required corrections because of USDE rules  
          prohibiting an accrediting agency from allowing a non-compliant  
          college more than two years to achieve compliance before the  
          college loses accreditation ("two-year rule").  Amador and  
          Kinsella wrote that under candidacy CCSF would continue to be  
          eligible for state apportionment funding, federal financial aid  
          funding, and student credits would generally be transferable.

           ACCJC approach problematic  .  The candidacy pathway outlined by  
          ACCJC is potentially problematic for CCSF and its students.   
          Committee staff understands that absent a change in state law  
          CCSF would be ineligible for apportionment funding.  Committee  
          staff further understands, in talking with USDE representatives,  
          that it is, at best, unclear whether CCSF students would remain  
          eligible for federal financial aid.  It is also questionable  
          whether students would continue to be eligible for Cal Grants.   
          Finally, as decisions over transferability of credits are made  
          by the institution receiving the transfer student, it is unclear  
          how candidacy status would impact existing articulation  








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          agreements between CCSF and California four-year institutions.    
                     

           USDE clarification on "two-year rule"  .  On May 19, 2014, USDE  
          responded in writing to a request from U.S. Representative Nancy  
          Pelosi regarding USDE's role in ACCJC's decision to revoke CCSF  
          accreditation.  According to USDE, the decision to revoke  
          accreditation as well as the option to extend accreditation for  
          CCSF rests solely with ACCJC.  In regards to the federal  
          "two-year rule" USDE wrote that federal regulations provide the  
          opportunity for an accrediting agency to grant a "good cause"  
          extension for an institution to return to compliance prior to  
          taking an adverse action.  According to USDE, "ACCJC has the  
          authority to reconsider or rescind its termination decision so  
          as to provide the institution with additional time to come into  
          compliance within the two-year time frame, if such a period has  
          not run out, or to provide an extension for good cause."   

          BOG request  .  On May 20, 2014, BOG wrote to ACCJC to request a  
          rescission of their termination of accreditation of CCSF, based  
          on the BOG belief that the college is now in substantial  
          compliance with the accreditation standards.  BOG encouraged  
          ACCJC to send a visiting team to the college to document the  
          progress, and noted that this is an appropriate action in light  
          of the fact that USDE has indicated that ACCJC has the power to  
          make this decision without it negatively impacting their  
          relationship with USDE. 
           
          Related legislation  .  SR 47 (Leno) is identical to this  
          resolution and is currently pending adoption in the Senate.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960 










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