BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1068 (Beall) - Community colleges: Accreditation
          
          Amended: May 7, 2014            Policy Vote: Education 9-0
          Urgency: No                     Mandate: No
          Hearing Date: May 19, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 1068 requires the Board of Governors (BOG) of  
          the California Community Colleges (CCC), by January 1, 2016, to  
          report on the feasibility of creating an independent accrediting  
          agency to accredit the CCCs and other 2-year private  
          postsecondary educational institutions, and to make  
          recommendations relative to CCC accreditation.

          Fiscal Impact: 
              Report: $400,000 - $550,000 (General Fund) in costs to the  
              CCC Chancellor's office to research the feasibility of  
              creating an independent accrediting agency in California, to  
              make recommendations on the required topics (to be voted on  
              by the BOG), and to create the required report.
              Recommendations: To the extent that the BOG recommends  
              changes to the CCC accreditation agency and process, there  
              will be cost pressure to make those changes. If the BOG  
              determines it is "feasible" to create an independent  
              accrediting agency, there may be substantial cost pressure  
              to actually create that agency. 

          Background: 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 institutions and  
          programs, determine the extent to which the standards are met,  
          and publicly announce their findings. Under federal law, the  
          U.S. Department of Education 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. 
          








          SB 1068 (Beall)
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          Accreditation is required to receive state appropriations and to  
          be eligible for federal and state financial aid programs.  
          Existing law confers upon the BOG the ability to prescribe  
          minimum standards for the formation and operation of CCCs and to  
          exercise general supervision over the CCCs. (Education Code �  
          66700 and � 70901)  

          The BOG has adopted regulations to require each CCC to be an  
          accredited institution, with the Accrediting Commission for  
          Community and Junior Colleges (ACCJC) determining accreditation.

          Proposed Law: SB 1068 requires the BOG, by January 1, 2016, to  
          report on the feasibility of creating an independent accrediting  
          agency to accredit the CCCs and other 2-year private  
          postsecondary educational institutions for the purposes of  
          complying with federal law, and state authorized financial aid.  
          This bill requires the BOG, based on a thorough examination of  
          community college accreditation nationwide, to make a  
          recommendation as to whether the state would be best served by  
          using a specified accrediting agency for all public  
          postsecondary educational institutions, and to makes  
          recommendations regarding the potential for using multiple  
          accrediting agencies, as specified.

          Staff Comments: The report required by this bill would  
          necessitate extensive research and analysis, to determine the  
          "feasibility" of creating a new agency, as specified, and to  
          consider the costs, benefits, issues, procedures, and questions  
          that would go into making the specified recommendations adopted  
          by the BOG. Creating such a report would require a task force,  
          likely involving administrators at the state and district level,  
          faculty, staff, student representatives, and accreditation  
          experts.

          Staffing the task force would fall to the Chancellor's office,  
          which anticipates requiring 3 PYs, in addition to a significant  
          workload increase for senior staff (including the Chancellor of  
          the CCC) to ensure the success of a multi-month task force. The  
          Chancellor's office estimates the cost of the 3 PYs to be  
          approximately $400,000. If an outside consultant was required to  
          write the report and/or take a leadership role in facilitating  
          the task force, a contract could cost an additional $100,000 -  
          $150,000.









          SB 1068 (Beall)
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          The largest cost of this bill would likely result from the  
          actual recommendations, to the extent that they differ from the  
          current process and potentially advocate for creating a new  
          state body. There will be cost pressure to make those changes,  
          particularly considering the ongoing controversy between (and  
          state involvement in) the San Francisco Community College  
          District and the ACCJC.