BILL NUMBER: SB 1199 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Liu
FEBRUARY 18, 2010
An act to add Article 3.5 (commencing with Section 66027) to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
relating to public postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
SB 1199, as introduced, Liu. Public postsecondary education:
mandatory systemwide resident student fee policy.
Existing law, known as the Donahoe Higher Education Act, provides
for a public postsecondary education system in this state. This
system consists of the University of California, the California State
University, and the California Community Colleges. Existing law
authorizes these institutions to require that mandatory systemwide
fees, among other fees, be paid by students at these institutions.
The provisions of the Donahoe Higher Education Act apply to the
University of California only to the extent that the Regents of the
University of California act by resolution to make them applicable.
This bill would add provisions to the act to express legislative
findings and intent with respect to the process of setting student
fee levels. The bill would provide that the Regents of the University
of California and the Trustees of the California State University
bear the primary responsibility for adjusting mandatory systemwide
resident student fees at their respective systems. The bill would
also add provisions to the act to require these universities to
develop methodologies for the adjustment of fees in accordance with a
prescribed procedure.
The bill would require the California Postsecondary Education
Commission to annually review, and report to the Legislature and the
Director of Finance about, the policies and procedures adopted
pursuant to the bill.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 3.5 (commencing with Section 66027) is added to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
to read:
Article 3.5. Student Fee Policy
66027. The Legislature finds and declares all of the following:
(a) The state has long recognized the value of providing broad
access to postsecondary education to the state's citizens. It has
demonstrated that commitment by investing in postsecondary education
and maintaining public student fee levels that are fiscally
responsible and affordable. The student fee principles expressed in
this section seek to continue the state's historic commitment to
ensuring access and maintaining quality throughout the state's public
universities while recognizing the fiscal challenges that confront
both the state and postsecondary education.
(b) Historically, the state has borne the preponderance of
responsibility for providing the fiscal resources necessary to ensure
that all eligible state residents have access to high-quality
educational opportunities at the state's public colleges and
universities. Further, the state bears the principal and overarching
responsibility for ensuring that all financially needy students have
the financial assistance necessary for them to enroll in institutions
of higher education and complete their postsecondary education
objectives.
(c) Changes in resident student fees or in student financial aid
funding or packaging policies should take into consideration the
total cost to the student of attending the university, including
mandatory campus-based student fees, housing and living expenses, as
well as all other expenses associated with university attendance.
(d) Any necessary increases in mandatory systemwide fees should be
accompanied by appropriate increases in funding for need-based
student financial aid.
66027.1. The following state policies regarding mandatory
systemwide resident fees and financial aid are established for
students enrolled in the state's public universities:
(a) The total cost of a public postsecondary education should be a
shared responsibility of students, families, and the State of
California. However, in order to keep resident undergraduate student
fees at the state's public universities as low and affordable as
possible, the state shall bear the preponderance of responsibility
for funding postsecondary education.
(b) So that students and their families can better prepare
financially for college expenses, any changes in resident student
fees should be gradual, moderate, and predictable. Any potential
adjustments in resident student fees should take into consideration,
and be balanced with, available state General Fund revenues to ensure
that the access, quality, and affordability of the state's public
universities are not adversely affected.
(c) Changes in resident student fees should take into
consideration a number of factors, including the total cost of
educating a student, the appropriate share of the cost of instruction
to be paid by the student, and information concerning families'
ability to pay. Student financial aid policy and programs should
ensure affordability for students from all income levels. Recognition
of these indicators will better ensure that changes in resident
student fees are gradual and moderate.
(d) As changes in resident student fees and financial aid
resources are considered, the state should have an understanding of
the impact that these changes will have on both current and
prospective students. Efforts should be employed to mitigate any
negative impact on financially needy students.
(e) To the extent that budget decisions are made in a timely
manner, adequate advance notice should be provided to students
regarding future student fees, thereby allowing them and their
families greater time to prepare for the fees to be assessed.
(f) In order to ensure that access is not precluded for any
eligible student, but particularly financially needy students, all
current and prospective students should be provided with timely
information concerning student financial aid, including the processes
associated with applying for and obtaining student financial
assistance.
(g) Students enrolled in graduate and professional programs that
provide the prospect of significant personal economic returns may be
subject to higher student fees. The regents and the trustees should
provide a rationale for any differential student fees to be levied
upon any cohort of graduate or professional school students.
(h) Student fee and financial aid policies should encourage and
promote a student's timely completion of the requirements necessary
for degree attainment.
(i) To ensure that financially needy students are provided with
assistance in managing the total cost of their university attendance,
financial aid programs, including institutional aid, should be
aligned with the distinct financial needs of the systems' student
populations and student fee levels.
(j) Revenues derived from student fees should remain within the
respective university system's budget in order to provide benefits to
the students enrolled within the system. When the system initially
adopts the fee methodology pursuant to Section 66027.2, the system
shall present this methodology to the appropriate legislative fiscal
and policy committees for review and discussion by those legislative
committees.
(k) It is the intent of the Legislature that all of the following
occur:
(1) Undergraduate students attending the University of California
should pay student fees that equal approximately ____ percent of the
overall cost of instruction at that university.
(2) Undergraduate students attending the California State
University should pay student fees that equal approximately ____
percent of the overall cost of instruction at that university.
(3) Undergraduate student fees should not be increased by more
than ____ percent in any academic year.
(4) After student fees reach the level identified in paragraphs
(1) and (2), the student fee amount should be adjusted annually by
the annual adjustments in the Consumer Price Index.
66027.2. (a) The Regents of the University of California and the
Trustees of the California State University shall bear the primary
responsibility for adjusting mandatory systemwide resident student
fees at their respective systems.
(b) To carry out the responsibilities of this section, the regents
and the trustees shall each develop a rational and transparent
methodology for adjusting mandatory systemwide resident student fees
consistent with the student fee policy principles set forth in
Section 66027.1. These methodologies shall be developed in
consultation with appropriate student representatives through student
fee advisory committees and, once developed, shall be formally
adopted by the regents and the trustees, respectively, in open public
meetings. The annual budgets of the segments shall be drafted on the
basis that fees will change in accordance with the methodology
established under this section.
(c) In adopting a methodology, each system shall take into
consideration the impact that the methodology and its resulting
outcome will have on students and the quality of the system. At a
minimum, each system shall pay careful attention to the impact that
the proposed methodology has on financially needy and
underrepresented students, average time to degree completion, and the
total cost to the student of obtaining a degree. To the extent that
either system recognizes that the proposed methodology will have a
negative impact, the system shall include a plan for mitigating that
impact. Each system shall annually report to the Governor, the
Legislature, and the California Postsecondary Education Commission
concerning its analysis of the impact associated with implementation
of its student fee methodology.
(d) (1) Employing the methodologies adopted under this section,
the regents and the trustees shall annually propose an adjustment in
the level of their respective mandatory systemwide resident student
fees. The regents and trustees shall not assume that state General
Fund resources will be made available to backfill for any proposed
changes in student fee levels.
(2) The proposed adjustments in student fees shall be discussed
and acted upon by each system's governing body in an open public
meeting. Consistent with the state's open meeting law provisions,
each system's governing body shall provide an opportunity for
interested constituents to comment on the proposed changes in student
fees.
(e) The regents and the trustees shall discuss, and act upon, any
proposed changes in student fees by no later than each November 30 in
order for those fees to take effect the academic term commencing
after July 1 of the following calendar year. Following the governing
body's action, each system shall employ appropriate procedures to
notify students of the proposed changes in student fees. The
Legislature finds and declares that this advance notification will
enable students and their families to better plan financially.
(f) The Legislature finds and declares both of the following:
(1) The Governor and the Legislature should recognize the
responsibility assigned to the segments under this article, and allow
student fees to increase or decrease in a manner consistent with the
respective methodologies adopted by the regents and the trustees.
(2) To the extent that the Governor or the Legislature identify
additional state General Fund resources to provide to higher
education, each is encouraged to examine the overall fiscal needs of
the state's public colleges and universities and provide state
revenues to assist the universities in meeting their ongoing
operational needs, rather than using limited state revenues to
backfill for proposed changes in fee levels.
(g) If, following enactment of the annual Budget Act, because of
budgetary restrictions or requirements, the level of student fees to
be assessed in the upcoming academic year differs from that
previously approved by the regents or the trustees, the affected
governing body shall meet in open public session to discuss and act
upon the revised level of student fees. This action shall occur in an
open public meeting, and provide an opportunity for interested
constituents to comment on the proposed change in student fees. The
regents and the trustees shall bear the final and ultimate
responsibility for determining the student fees to be assessed.
(h) Following the final action of its governing body, each system
shall employ appropriate procedures to notify students of the student
fees to be assessed in the upcoming academic year. In addition, each
system shall simultaneously provide students with information
concerning the availability of student financial aid and the
procedures for obtaining that aid in order to assist students with
meeting the increased costs of university attendance.
(i) (1) A system shall report to the appropriate legislative
fiscal and policy committees by November 30 in any fiscal year in
which any of the following situations occur:
(A) The system makes any change to the student fee methodology it
adopts under this section.
(B) The system proposes any changes in its student financial aid
policies or student financial aid funding levels.
(C) The proposed student fee or student financial aid policies are
deemed by the appropriate governing body to have a possible negative
impact on disadvantaged or financially needy students of that
system.
(2) It is the intent of the Legislature that both of the following
occur:
(A) The systems shall maintain comprehensive outreach efforts to
inform students and their families about fee levels and opportunities
for student financial aid.
(B) Assistance for nontraditional and low-income students shall be
a priority for the systems' outreach efforts.
(j) As used in this article:
(1) "Governing body" refers to the regents or the trustees, as
appropriate.
(2) "Student fee" refers to mandatory systemwide resident student
fees.
(3) "System" refers to the University of California or the
California State University, as appropriate.
66027.3. Each year, prior to March 1, the California
Postsecondary Education Commission shall review institutional
compliance with the policies set forth in this article, and report,
in writing, to the Legislature and the Director of Finance any
findings, conclusions, or recommendations of the commission regarding
the implementation of these policies.