BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 515
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        ASSEMBLY THIRD READING
        AB 515 (Brownley) 
        As Amended  May 27, 2011
        Majority vote 

         HIGHER EDUCATION    6-1         APPROPRIATIONS      16-1        
         
         ----------------------------------------------------------------- 
        |Ayes:|Donnelly, Achadjian,      |Ayes:|Fuentes, Harkey,          |
        |     |Brownley, Galgiani, Lara, |     |Blumenfield, Bradford,    |
        |     |Miller                    |     |Charles Calderon, Campos, |
        |     |                          |     |Davis, Donnelly, Hall,    |
        |     |                          |     |Hill, Lara, Mitchell,     |
        |     |                          |     |Nielsen, Norby, Solorio,  |
        |     |                          |     |Wagner                    |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Fong                      |Nays:|Gatto                     |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         SUMMARY  :  Establishes the California Community Colleges Extension 
        Pilot Program to permit the governing board of a California 
        Community College (CCC) district to implement an extension 
        program, as specified, until July 1, 2016.  Specifically,  this 
        bill  :

        1)Authorizes the governing board of any CCC district to establish 
          an extension program offering credit courses without the 
          approval of the CCC Board of Governors (BOG), except those 
          districts that receive a stability adjustment to their state 
          apportionments, if the program meets the following requirements: 


           a)   Is self-supporting, with all costs recovered; 

           b)   Conforms with the "50% law" regarding minimum expenses 
             allocated for instruction;

           c)   Makes progress toward the 75/25 ratio for 
             full-time/part-time faculty instruction; 

           d)   Is subject to collective bargaining agreements; and, 

           e)   Is developed in accordance with existing regulation 
             governing credit courses, subject to annual review by the CCC 








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             Chancellor.

        2)Requires the CCC Chancellor's Office to determine whether a CCC 
          district's extension programs meet the requirements listed above 
          and to annually review extension programs established by this 
          bill.

        3)Prohibits CCC districts from expending General Fund moneys to 
          establish and maintain extension courses.

        4)Prohibits credit extension courses from supplanting courses 
          funded with state apportionments, from supplanting the use of 
          district facilities that would otherwise be used for 
          apportionment-funded courses, and requires the following 
          oversight:

           a)   CCC districts must annually certify compliance with the 
             above requirement at a regular meeting of the governing 
             board;

           b)   CCC districts must submit to the Chancellor's office a 
             list of extension courses they will be offering 30 days in 
             advance of each session; and,

           c)   The Chancellor must monitor compliance with this section 
             as part of its annual review of extension programs.

        5)Limits the number of semester units completed through a CCC 
          district's extension programs that can be applied to an 
          Associate or transfer degree to no more than 24 semester units 
          and limits students to no more than 12 extension credit course 
          units per semester, excluding Career Technical Education 
          Courses.

        6)Authorizes CCC districts to establish fees for extension 
          programs, not to exceed the cost of maintaining those courses, 
          as follows:

           a)   Defines "actual costs" as the actual cost of construction, 
             the cost of necessary equipment and supplies, student 
             services and institutional support costs, and other costs of 
             the district used in calculating the cost of education, 
             consistent with those used to determine nonresident tuition; 

           b)   Requires districts to minimize the costs of administration 








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             to the extent possible; 

           c)   Requires districts to submit a schedule of course fees to 
             the CCC Chancellor by October 1 of each year;

           d)   Authorizes the Chancellor to establish a fee limit 
             subsequent to the first annual review required by this bill; 
             and,

           e)   States legislative intent that surplus seats in extension 
             courses that are not filled by the students participating in 
             the extension program be made available to all CCC students 
             at the fee charged for state-supported courses ($36 per unit) 
             to the extent possible.

        7)Requires CCC campuses that maintain an extension program 
          offering credit courses to ensure that state and federal 
          financial aid are available to eligible students, who shall 
          receive the same priority for enrollment as students not 
          receiving financial aid, and to develop policies through which 
          tuition shall be waived in full or in part.

        8)Requires any CCC district maintaining an extension program to 
          collect and keep records measuring student participation, 
          demographics, and outcomes consistent with measures collected 
          for regular credit programs supported through state 
          apportionment, including an analysis of program effects, if any, 
          on district workload and district financial status.  CCC 
          districts are to submit this information to the Chancellor's 
          Office by October 1 of each year for each participating college.

        9)Requires the Chancellor's Office to submit all the information 
          per 8) above to the Legislative Analyst's Office (LAO) by 
          November 1 of each year, and requires the LAO submit a report to 
          the Legislature by January 1, 2015, summarizing this 
          information, assessing the extent to which extension programs 
          are operated in a manner consistent with the provisions of this 
          bill, and suggesting any needed statutory improvements.

        10)Sunsets this program effective July 1, 2016.

         FISCAL EFFECT  :  According to the Assembly Appropriations 
        Committee:

        1)Minor absorbable costs to the Chancellor's Office and the LAO 








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          for the reporting requirements.

        2)Any costs to CCC districts would be the result of districts 
          electing to offer extension courses and would be covered by fees 
          and other non-state funds.

        3)Potential minor increase in General Fund Cal Grant costs for 
          those likely limited instances where an otherwise qualifying CCC 
          student, by adding an extension course, is able to meet the 
          part-time or full-time minimum unit-load requirement for Cal 
          Grant eligibility and thus receives an award. 

         COMMENTS  :  In recent years, demand for CCC courses has increased 
        as its budget has been reduced.  Consequently, according to CCC 
        Chancellor Jack Scott, approximately 140,000 students have 
        effectively been denied access, over 95% of all classes are at 
        capacity, and an estimated 10,000-15,000 students are on wait 
        lists for courses.  The $400 million reduction to CCC's 2011-12 
        budget will likely result in more course reductions.  

        The author states that, through extension programs, CCC could 
        expand course offerings to meet local workforce needs, provide 
        additional credit courses to meet student demand, more fully 
        utilize facilities, and provide greater access to CCC courses 
        because they could be offered closer to home and work-at no 
        additional cost to the state.  

        According to the sponsors, Santa Clarita Community College 
        District and Santa Monica Community College District, CCC 
        extension programs would typically operate in tandem with 
        state-funded programs either as separate sections offered during 
        the spring or fall semester or quarter or possibly as separate 
        sessions during winter or summer.  The sponsors also indicate they 
        would offer workforce training and degree programs that are 
        currently available primarily at for-profit institutions at a 
        higher cost than CCCs would charge.

        Opponents express concerns that these extension programs create a 
        two-tier system of courses within CCC, opening the door to 
        privatization of the CCC and allowing different campuses to set 
        different fees.  Opponents state that it is incumbent upon the 
        Legislature to develop new funding sources to maintain access.

        The University of California and the California State University 
        currently offer extension programs, and CCC extension programs are 








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        likely to be rather limited, particularly when compared to a 
        state-supported enrollment exceeding two million students.  

        If the same programs were offered through extension as those 
        offered through the state-supported program, students would likely 
        be eligible for federal aid.  According to the California Student 
        Aid Commission, if the United States Department of Education deems 
        extension courses eligible for federal aid, they would be eligible 
        for Cal Grant awards, as well.  However, extension courses would 
        not be eligible for the BOG Fee Waiver.  


         Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 
        319-3960                                               FN: 0000854