Assembly BillChaptered/SignedEducation
AB 1155: Law schools: externships: compensation.
What AB 1155 does, verified December 7, 2025
The law school will allow students to receive compensation from an externship site while earning academic course credit. This rule will apply to all law schools, including those at the University of California and independent institutions of higher education. The rule will take effect on August 1, 2026. Law students can receive compensation for their work while gaining practical experience and earning academic credit. The law school will need to allow this arrangement for students to receive compensation.
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Last action: Chaptered by Secretary of State - Chapter 292, Statutes of 2025. (2025-08-25)Alert me
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| Oct. 03, 2025 | Chaptered by Secretary of State - Chapter 292, Statutes of 2025. |
| Oct. 03, 2025 | Approved by the Governor. |
| Sep. 02, 2025 | Enrolled and presented to the Governor at 3 p.m. |
| Aug. 26, 2025 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug. 25, 2025 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2252.). |
Latest bill textChaptered version, October 3, 2025 · 1,096 words
Assembly Bill No. 1155
CHAPTER 292
An act to add Chapter 7.5 (commencing with Section 66550) to Part 40 of Division 5 of Title 3 of the Education Code, relating to postsecondary education.
[ Approved by Governor October 03, 2025. Filed with Secretary of State October 03, 2025. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 1155, Fong. Law schools: externships: compensation.
The Donahoe Higher Education Act establishes the segments of postsecondary education in the state, including the University of California and independent institutions of higher education, and sets forth the missions and functions of those segments. Existing law states that the University of California has exclusive jurisdiction in public higher education over, among others, instruction in the profession of law, and that the independent institutions of higher education provide undergraduate and graduate instruction and research in accordance with their respective missions. Provisions of the act apply to the University of California only to the extent that the Regents of the University of California act, by appropriate resolution, to make them applicable.
This bill would require, beginning August 1, 2026, each law school, defined to include American Bar Association-accredited or California-accredited law schools at the University of California or an independent institution of higher education, to allow law students to receive compensation from an externship site, as defined, while concurrently earning academic course credit. For purposes of the bill, a requirement on a law school at the University of California would be considered a request on the regents.
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(1) In California, the cost of completing a Juris Doctor (J.D.) program averages nearly $175,000 at American Bar Association (ABA)-approved law schools and over $75,000 at California-accredited law schools.
(2) The majority of California law students, 78 percent, report taking out loans for their law degree. The median loan debt of California law students is $120,000.
(3) Regional costs affect the cost of attendance, particularly as California law schools are primarily located in the most expensive areas of the state, including the Sacramento, San Francisco Bay area, Los Angeles, and San Diego regions, which incur on average 20 to 70 percent higher living costs than other regions in the United States. Overall, the cost of living in California is higher than the national average.
(4) Law schools accredited by the ABA are required to ensure students complete a minimum of six credit hours in experiential learning. Experiential learning includes field placements, which are often referred to as externships.
(5) California-accredited law schools also require law students to complete a minimum of six credit hours in experiential learning.
(6) Nationally, law school policies have begun to allow academic credit for paid externships. Schools that have changed their policies have reported no adverse effects on learning or program administration after implementation.
(7) The ABA House of Delegates adopted Resolution 514 in August 2024, which encourages law schools to allow students to receive compensation for credit-bearing externships.
(b) It is the intent of the Legislature to allow law students to accept compensation while concurrently earning academic credit for externships.
SEC. 2.
Chapter 7.5 (commencing with Section 66550) is added to Part 40 of Division 5 of Title 3 of the Education Code, to read:CHAPTER 7.5. Law School Externships
66550.
For purposes of this chapter, the following definitions apply:(a) “Compensation” includes, but is not limited to, financial compensation in the form of travel costs, stipends, minimum or higher hourly wages, or additional wages and benefits set by employers.
(b) “Externship” means the field placement work performed by a law student at a state agency, nongovernmental organization, nonprofit organization, or for-profit firm, as part of their legal education, that is completed within the law school’s course guidelines for the purpose of receiving law school credit.
(c) (1) “Externship site” or “employer” means the place of employment where a law student performs their externship that is approved by a law school to provide law students with practical field experience consistent with the requirements for academic course credit provided by the law school.
(2) For purposes of this subdivision, an externship site may be in person, hybrid, or remote, and includes any externship site regardless of whether the externship site is located in California or out of state.
(d) “Externship site criteria” means the factors or other requirements used by a law school to determine whether an externship site is eligible or approved for extern placement.
(e) “Law school” means an American Bar Association-accredited or California-accredited law school at the University of California or an independent institution of higher education, as defined in subdivision (b) of Section 66010, that receives, or benefits from, state-funded student financial assistance or that enrolls students who receive state-funded student financial assistance.
(f) “Law student” means an individual enrolled at a law school. For purposes of this subdivision “law student” includes individuals earning their Juris Doctor (J.D.), Master of Laws (LL.M.), or Doctor of Juridical Science (J.S.D.) degrees.
66550.5.
For purposes of this chapter, a requirement on a law school shall, regarding the University of California, be considered a request on the Regents of the University of California.66551.
(a) Beginning August 1, 2026, each law school shall allow law students to receive compensation from an externship site while concurrently earning academic course credit.(b) (1) This section shall not change the course requirements set by a law school to award academic course credit for externships beyond allowing the employer to offer compensation.
(2) This section shall not require externships offered to law students through the law school to be compensated. The decision to offer compensation to a law student shall be at the externship site’s discretion.
(3) This section shall not change externship site criteria or the requirements set by each law school regarding new and existing externship sites to be offered to law students.
(4) To be eligible to earn compensation from an externship site, a law student shall be in good academic standing according to the rules set forth by the law school.
(c) This section shall not apply to individuals enrolled in a paralegal certification program.
(d) This section shall not bind employers or law students to an externship site for any future work.
(e) (1) Compensation of a law student provided pursuant to this section shall not require an employer to provide workers’ compensation or other similar benefits.
(2) A law school shall not receive restitution or compensation beyond tuition expenses from a law student for an externship opportunity.
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