BILL ANALYSIS                                                                                                                                                                                                    Ó






                         SENATE COMMITTEE ON EDUCATION
                             Alan Lowenthal, Chair
                           2011-2012 Regular Session
                                        

          BILL NO:       AB 515
          AUTHOR:        Brownley  
          AMENDED:       RN 1122615 
          FISCAL COMM:   Yes            HEARING DATE:  July 6, 2011
          URGENCY:       No             CONSULTANT: Kathleen Chavira

           NOTE  :  This bill was previously heard by this Committee on 
          June 29, 2011. No vote was taken. The author has proposed 
          amendments to the bill. The revised analysis reflects these 
          amendments.  

          SUBJECT  :  Community College Extension Courses.
           
          SUMMARY  

          This bill requires, until January 1, 2017, the Chancellor's 
          Office of the California Community Colleges to establish a 
          voluntary, pilot program for purposes of allowing eight 
          community college campuses from eight different community 
          college districts to establish and maintain an extension 
          program offering credit courses at fee levels that cover 
          the actual cost, as defined, of maintaining these courses.

           BACKGROUND  

          Current law establishes the California Community Colleges 
          as a part of public higher education. Current law 
          establishes and differentiates the goals, missions and 
          functions of California's public segments of higher 
          education. 
          (Education Code § 66010)

          Current law provides that the primary missions of the 
          community colleges are to offer academic and vocational 
          education at the lower division level for both recent high 
          school graduates and those returning to school. Another 
          primary mission is to advance California's economic growth 
          and global competitiveness through education, training, and 
          services that contribute to continuous workforce 
          improvement. In addition current law provides that 
          essential and important functions of the colleges include: 




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          basic skills instruction, providing English as a second 
          language, adult noncredit instruction, and providing 
          support services that help students to succeed at the 
          postsecondary level. Community colleges are also authorized 
          to provide community service courses and programs so long 
          as their provision is compatible with an institution's 
          ability to meet its obligations in its primary missions. To 
          the extent funding is provided the colleges are authorized 
          to conduct institutional research concerning student 
          learning and retention as is needed to facilitate their 
          educational missions. (EC § 66010.4)

          Current law requires the governing board of a local 
          community college district to admit any California 
          resident, (and authorizes them to admit any nonresident) 
          possessing a high school diploma or the equivalent and 
          authorizes the board to admit anyone who is capable of 
          profiting from the instruction offered, as specified. (EC § 
          76000) 

          Current law requires that community college students be 
          charged a per unit fee and statutorily prescribes the fee 
          level through the annual Budget process. Current law 
          exempts the student enrolled in noncredit courses and in 
          credit contract education courses, as specified, from these 
          fee requirements. Current law also exempts from these 
          requirements CSU and UC students enrolled in CCC remedial 
          classes, as specified, and provides for the waiver of these 
          fees for students who have financial need or meet other 
          specified criteria. (EC §76300)

           ANALYSIS
           
           This bill  requires, until January 1, 2017, the Chancellor's 
          Office of the California Community Colleges to establish a 
          voluntary, pilot program for purposes of allowing a 
          community college district to establish and maintain an 
          extension program offering credit courses.  

           Selection of Pilot Participants
           
          1)   Authorizes any community college district to apply to 
               be selected.

          2)   Limits participation to eight campuses from eight 
               separate community college districts.




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          3)   Requires the Chancellor, in selecting the campuses, 
               to:

               a)      Consider all the following:

                    i)             Geographic, socio-economic, and 
                  demographic diversity.

                    ii)            Labor-Market Demand

                    iii)           The district's program and 
                  planning capacity

                  b)   Ensure that each of the campuses selected meet 
                  at least one of the following criteria:

                    i)             A campus with high transfer 
                  numbers

                           ii)     A campus with a successful core 
                         career technology education program

                           iii)    A campus with a high number of 
                         students currently utilizing the board of 
                         governor's fee waiver.

                           iv)     A campus with a low number of 
                         students currently utilizing the board of 
                         governors fee waiver

                           v)                  Two rural campuses 
                         serving two separate geographical areas

                    vi)            A campus with high basic skills 
                  numbers

                    vii)           A campus of the Chancellor's 
                  choosing.

          4)   Prohibits the Chancellor from implementing the pilot 
               program until the LAO certifies to the Chancellor, in 
               writing, that at least six campuses meeting the 
               criteria in #3 (above) also meet the following:

               a)      An urban campus with a high board of 




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               governor's waiver population.

               b)      An urban campus with a low board of governor's 
               waiver population.

               c)      Two campuses whose primary functions are 
               transfer preparation.

               d)      A campus whose primary function is career 
               technical education.

               e)      A campus that offers a significant number of 
               basic skills courses.

               f)      Two rural campuses that serve two different 
               geographical areas.

           Requirements to be eligible to participate
           
          5)   Requires an applicant campus to meet the following 
               requirements in order to be eligible for participation 
               in the pilot program:

               a)        Requires that the applicant campus either:

                           i)                  meet its funding cap 
                         in the prior three academic years

                           ii)     Serve more students beyond its 
                         funding cap for the prior academic year, to 
                         be determined as specified.

                    b)             Meet transfer, basic skills, or 
                    career technical education objectives for all 
                    courses in the state-funded programs offered for 
                    credit.

                    c)             Not offer avocational courses for 
                    credit under the state funded program.

               d)        Prioritize enrollment in the state funded 
               programs as follows:

                           i)                  Implement policies 
                         prioritizing enrollment for continuing 
                         students who are making satisfactory 




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                         progress toward a basic skills, transfer or 
                         workforce development goal.
                           ii)     Prohibiting enrollment of students 
                         in classes for purposes of personal 
                         enrichment or avocational purposes.

                           iii)    Prioritizing enrollment of 
                         students who receive financial aid.

                           iv)     Prioritizing enrollment of 
                         California residents and other students who 
                         qualify for resident tuition.

                    e)             Prohibits a district from 
                    receiving a stability adjustment to apportionment 
                    funding.

           Extension Program Requirements
           
          6)   Outlines the following requirements to be met by a 
               community college district in order to maintain the 
               authorized extension program:

                    a)             Requires that a campus selected by 
                    the Chancellor agree to the following:

                    i)             That the Chancellor:

                         (1)                 Review programs 
                    established.

                         (2)                 Monitor compliance with 
                    these requirements.

                                   (3)                           Have 
                              authority to rescind the ability to 
                              participate if the Chancellor 
                              determines that the campus or district 
                              is out of compliance with these 
                              requirements.

                    b)             Requires the program to be 
                    self-supporting, and that all actual costs for 
                    the program be recovered, and defines actual 
                    costs to include costs of instruction, equipment 
                    supplies, student services and institutional 




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                    support costs, and other costs incurred by the 
                    campus or the district pursuant to 76140.

                    c)             Requires districts to minimize the 
                    costs of administration to the greatest extent 
                    possible.

                    d)             Requires that enrollment be open 
                    to the public.

                    e)             Prohibits a governing board from 
                    expending any general fund moneys to establish 
                    and maintain these courses.

                    f)             Prohibits extension courses from 
                    being offered at times or in locations that 
                    supplant or limit offerings of state-supported 
                    programs, nor in conjunction with courses funded 
                    with state apportionments.

                    g)             Requires each participating campus 
                    to ensure that state and federal financial aid is 
                    available to eligible students.

                    h)             Requires the programs to ensure 
                    that financial aid students receive same priority 
                    for enrollment as all other students.

                    i)             Requires that credit courses 
                    offered be developed in accordance with relevant 
                    provisions of the Education Code and Title 5 of 
                    the California Code of Regulations governing 
                    community college credit courses. 

               j)        Applies the following statutes relative to 
               faculty and expenditures:

                           i)                  Requires a goal of 
                         75:25 ratio of full-time to part-time 
                         faculty in extension program credit classes.

                           ii)     Requires the inclusion of pilot 
                         program revenues and expenditures (which 
                         conform to the "current expense" of 
                         education) in the calculation/determination 
                         of the district's compliance with the 50% 




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                         law governing program revenues and 
                         expenditures (50% of current expense of 
                         education must be for payment of salaries of 
                         classroom instructors).

                           iii)    Subjects the extension program to 
                         collective bargaining agreements.

                    aa)            Authorizes a governing board to 
                    establish fees that do not exceed the actual cost 
                    of maintaining extension programs and defines 
                    actual costs, for this purpose, to include: 

                           i)                  Actual cost of 
                         instruction, cost of necessary equipment and 
                         supplies, student services and institutional 
                         support costs.

                           ii)     Cost of an independent analysis to 
                         be done by the Legislative Analyst's Office

                           iii)    A fee to be assessed by the 
                         Chancellor's Office to recover its 
                         administrative costs for providing 
                         oversight. 

                    iv)            Other costs of a district (76140)

                    bb)            Grants the local governing board 
                    the authority to redirect one-third of student 
                    fee revenues to establish an institutional 
                    financial aid program for participating students 
                    who demonstrate financial need according to the 
                    federal needs analysis.

                    cc)            Authorizes campuses to set higher 
                    levels of fees for nonresident students 
                    participating in extension programs in 
                    conformance with specified law. 
           Reporting Requirements
           
          7)   Requires each participating district to comply with 
               the following reporting requirements:

                    a)             Annually collect student 
                    information, as specified, and conduct an 




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                    analysis of the program effects on district 
                    workload and financial status, and to submit this 
                    information to the Chancellor's Office by August 
                    1 annually.

                    b)             Submit interim reports at 
                    six-month intervals. 

                    c)             Submit a schedule of course fees 
                    to the Chancellor by August 1 annually.

          8)   Requires the Chancellor to forward the data and 
               information submitted to the LAO.

          9)   Requires the LAO, on or before June 30, 2014, to 
               provide to the Legislature a report evaluating the 
               pilot program established drawing upon campus reports 
               and visits, interviews with faculty, students and 
               administrators, and any other source that LAO deems 
               relevant.

          10)  Requires the LAO report to include:

                    a)             Summary statistics on course 
                    offerings, enrollment, financing, and student 
                    utilization of financial aid, funding, and 
                    completion rates.

                    b)             A discussion of full to part-time 
                    faculty hiring practices. (KC a discussion of the 
                    impacts of the applicable expenditure and faculty 
                    related provisions on the program).

                    c)             The extent of compliance with the 
                    50 percent law.

                    d)             A determination of the extent of 
                    the pilot program's compliance with statutory 
                    requirements and the extent to which it expanded 
                    access for students.

                    e)             An assessment of the program's 
                    effect on the availability of, and enrollment in 
                    state-supported courses, with particular 
                    attention to the demographic make-up and 
                    financial aid status of student enrolled in the 




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                    state-supported courses.

                    f)             Recommendations regarding the 
                    extension, expansion or modification of the 
                    program and consideration of alternative 
                    approaches that could achieve expanded access 
                    without increased state funding.

          11)  Sunsets the bill's provisions on January 1, 2017.
           STAFF COMMENTS  

           1)   Need for the bill  .   According to the author, we are 
               at a time of unprecedented cuts and budget shortfalls. 
               Access to the community colleges exists for any person 
               as long as there is state funding. Permitting 
               community colleges to offer extension courses would 
               enable local boards to expand course offerings beyond 
               the limitations of state funding. Authorizing CCCs to 
               offer extension credit courses would allow students to 
               complete coursework and degrees faster and enter the 
               workforce sooner, at no additional cost to the State.

           2)   Technical amendments  . The author has offered several 
               technical, clarifying and correction amendments which 
               are attached as part of this analysis. Staff 
               recommends these amendments be adopted   
                
            3)   Recent changes  . This bill was previously heard by the 
               Committee on June 29, 2011. No vote was taken. The 
               author has proposed amendments to the bill in response 
               to concerns/issues raised in the prior hearing. In 
               summary, the bill now:

                        Creates a voluntary, four-year, competitive 
                    pilot program limited to 8 campuses from 8 
                    different districts in six categories.

                        Requires the Chancellor to ensure that 
                    selected campuses represent all six different 
                    categories of campuses.

                        Prohibits the implementation of the program 
                    unless the LAO certifies that all categories are 
                    filled and other requirements have been met.

                        Requires campuses to meet specified 




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                    requirements regarding cap, course offering and 
                    enrollment priority conditions.

                        Establishes a variety of requirements to be 
                    met by the extension programs established under 
                    the authority granted by the bill. 

                        Authorizes the Chancellor's Office to 
                    monitor compliance with requirements, to rescind 
                    participation in the program for non-compliance, 
                    and to assess a fee to recover administrative 
                    costs for providing oversight. 

                        Requires more extensive and independent 
                    evaluation and reporting of the program's 
                    implementation and effects. 

                        Sunsets the program in 2017.

               If it is the desire of this committee to implement a 
               smaller scale pilot extension program, staff 
               recommends additional amendments, as outlined in Staff 
               Comments 4 through 8.  
           1)   Need for clarity and streamlining  . The author has 
               amended the bill in an attempt to ensure that 
               extension program participants reflect the diversity 
               of campuses and populations served by the state prior 
               to implementation of the pilot program. As currently 
               drafted the bill needs clarification of this intent 
               and also contains unnecessary duplicative language. 
               Staff recommends the following amendments in 78280 
               subdivision (a):

               a)        Replace subdivision (a)(2) with "The 
                    Chancellor shall ensure that the 8 campuses 
                    selected collectively represent the diversity of 
                    campuses and campus populations by selecting 
                    campuses in each of the following six 
                    categories:"

               b)        Modify subdivision (a) (2)(A) to read "Two 
                    campuses with high transfer numbers serving two 
                    separate geographical regions of the state." and 
                    delete "(G) A campus of the chancellor's 
                    choosing."





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               c)        Replace subdivision (a)(3) with "The 
                    Chancellor shall not implement the pilot program 
                    established by this section until the Legislative 
                    Analyst's Office has reviewed the selections made 
                    and certifies compliance with the requirements 
                    for participation specified in (a)(2). The LAO 
                    shall submit its findings to the Chancellor's 
                    Office, the selected campuses, and the 
                    Legislature." 

               d)        Delete redundant provisions (3) (A) through 
                    (F).

           2)   Conditions to be met for participation  . This bill 
               establishes criteria to be met by applicant districts 
               in order to be eligible for the pilot program. Staff 
               recommends this language be clarified and strengthened 
               to ensure that participating colleges have clear and 
               ongoing demand for credit courses and programs that 
               cannot be met with limited state support.

               a)        Replace subdivision (b)(1) with "Have served 
                    more students beyond its funding cap (report 
                    unfunded FTES) for the two prior academic years 
                    as provided in the Budget Act and as reported by 
                    the Chancellor's Office."

               b)        Replace subdivision (b)(2) and (b) (3), 
                    replace with:

                    i)             "(2) All courses in the 
                         state-funded program offered for credit must 
                         meet basic skills, transfer or workforce 
                         development objectives." 

                    ii)            "(3) Limit the state-supported 
                         enrollment of students in "activity" 
                         courses, as defined in Title 5, California 
                         Code of Regulations Section 55041. The 
                         applicant shall not claim state 
                         apportionment for students who repeat either 
                         the same credit or non-credit physical 
                         education or visual/performing arts course 
                         that is part of the same sequence of 
                         courses. This provision does not apply to 
                         disabled students taking adaptive activity 




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                         courses, students participating in 
                         intercollegiate athletics, or students with 
                         an approved educational plan majoring in 
                         physical education or the visual/performing 
                         arts."

           3)   Priority enrollments  .  This bill requires applicant 
               campuses to adopt specified enrollment priorities. 
               These provisions should be clarified to ensure that 
               they are implemented as part of the local priority 
               system, do not conflict with existing statutory or 
               regulatory priorities, and to provide greater clarity 
               of the intent to ensure enrollment management policies 
               that target state funds to meet the state's highest 
               priorities for the colleges.

               Staff recommends the bill be amended to replace 
               subdivision (b)(4) with "Prioritized enrollment of 
               students in the state-funded program in the priority 
               system established pursuant to the legal authority of 
               a community college local governing board and in 
               conformance with Education Code 66025.8 and in 
               accordance with Title 5 of the California Code of 
               Regulations section 58108, through policies that 
               provide for all the following:

               a)         (A) Prioritized enrollment for students who 
                    are fully matriculated, as defined in Education 
                    Code section 78212, and making satisfactory 
                    progress toward a basic skills, transfer or 
                    workforce development goal."

               b)        (4)(B) Prohibit enrollment of students in 
                    state-funded credit courses for students with a 
                    declared educational goal of personal enrichment.

               c)        (4)(C) Prioritized enrollment of students 
                    who receive state financial aid under Education 
                    Code Sections 69430-69460, or are eligible for a 
                    waiver of fees under Education Code 76300. 

               d)        (4)(D) Prioritized enrollment of students 
                    who are eligible for in-state tuition" to ensure 
                    the inclusion of California residents, military 
                    dependents, and others who have met the 
                    requirements for in-state tuition rates.  




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           4)   Institutional Aid  . This bill provides for 
               institutional aid, derived from fees paid by extension 
               program students, for students desiring to attend the 
               extension program and who demonstrate unmet financial 
               need.  However the bill also requires that Cal Grant 
               and BOG fee waiver students be prioritized for 
               enrollment and that extension programs ensure that 
               state and federal financial aid is available to 
               eligible students. Given these provisions, as well as 
               the administrative challenge and increased cost to 
               private pay students of implementing an institutional 
               aid program, is this language necessary? 

               If the committee desires to include an institutional 
               aid provision, staff recommends the bill be amended to 
               clarify these provisions as follows:

               In 78280 subdivision (c), Delete (c)(13)(A), "and 
               shall include the authority to redirect one-third of 
               student fee revenues to establish an institutional 
               financial aid program for participating students who 
               demonstrate financial need according to the federal 
               needs analysis." and replace with:

               a)        "and the cost to establish an institutional 
                    financial aid program for participating students 
                    pursuant to (c)(14)." 

               b)        "(c)(14)The campus shall have the authority 
                    to redirect one-third of student fee revenues to 
                    establish an institutional financial aid program 
                    for participating students who demonstrate 
                    financial need according to the federal needs 
                    analysis."
                
          5)   Faculty provisions  . This bill requires the extension 
               program to comply with specified statutes relative to 
               faculty and expenditures.  These provisions raise a 
               number of questions.  How will they be implemented and 
               calculated? What is the effect of these provisions on 
               the costs of these classes for students?  Staff 
               recommends the bill be amended in 78280.5, to 
               consolidate LAO reporting language by deleting (b) (2) 
               and (3) and insert "(2) The implementation and impact 
               of provisions 78280 (c) (10), (11), and(12) in order 




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               to ensure an examination of these issues in their 
               evaluative report.  

           6)   Related Budget activity  .  The Governor's recently 
               enacted budget for 2011-12, among other things, 
               provides for a net reduction of $290 million for the 
               CCC and fee increases from $26 to $36 per unit 
               beginning in fall 2011. In addition, contingent upon 
               revenue levels for the year, community colleges may 
               realize a fee increase to $46 per unit, beginning 
               winter term 2011, as well as an additional reduction 
               in apportionments of $72 million.  The Chancellor's 
               Office estimates that the 2011-12 budget will result 
               in at least 140,000 additional students losing access 
               due to further course reductions and the elimination 
               of some career training programs, and, absent 
               increased revenues or another source of funding, could 
               result in denying access to more than 400,000 
               students. The Chancellor's Office has also noted that 
               a statewide unemployment rate of 11.9%, as well as 
               budget reductions at UC and CSU, have created even 
               greater demand for the CCC as individuals turn to the 
               community colleges to access the training they need to 
               return to work or to begin their higher education.

           7)   Paradigm shift  . This bill proposes a small scale pilot 
               program whose elements may signal the initial steps 
               toward a significant departure from the open access 
               mission established for the community colleges by the 
               Master Plan and by state statute. Although the UC and 
               the CSU offer self-support extension programs, these 
               segments serve a defined population whereas the 
               community colleges have traditionally served as 
               California's way of ensuring that affordable access to 
               education is provided for all others who can benefit. 
               Is this the first step toward privatizing educational 
               opportunity at California's community colleges and to 
               linking access to the ability to pay?  
           
           SUPPORT  

          None received on this version.

           OPPOSITION
           
          None received on this version.




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                               AB 515 (Brownley) 
            Technical, clarifying and correction amendments to RN11 
                                     22615
          
          1.   On RN 11 22615, delete Amendment #5 and modify 
               Amendment #8 to read: "The districts also shall submit 
               interim reports at six-month intervals to allow the 
               Chancellor & LAO to review information submitted and 
               adjust reporting requirements as necessary" to 
               eliminate duplicative amendments and clarify the 
               intent of interim reporting.

          2.   In 78280 subdivision (c) clarify that these 
               requirements apply to the extension program.

          3.   In 78280, replace subdivision (c)(4) with "While not 
               reported for state apportionment, extension program 
               enrollment shall be open to the public pursuant to 
               Title 5, California Code of Regulations, Section 
               51006" for clarification.

          4.   In 78280 delete subdivision (c)(5) and replace with 
               "Governing boards shall not expend any general fund 
               moneys to establish and maintain an extension program 
               other than program revenues generated under this 
               section" for clarification.

          5.   In 78280, subdivision (c) insert, "Extension credit 
               courses shall not supplant courses funded with state 
               apportionments. Districts shall not reduce 
               state-funded course sections needed by students to 
               achieve basic skills, workforce training, or transfer 
               goals, in order to expand those course sections as 
               part of the extension program" as this language was 
               inadvertently omitted.

          6.   In 78280, replace subdivision (c)(9) "Courses offered 
               through the pilot program for credit shall meet all 
               the requirements, standards, and criteria for courses 
               in subdivision (a) and (b) of Section 55002 of Title 5 
               of the California Code of Regulations, including, but 
               not limited to, all criteria and procedures as 
               prepared, distributed, and maintained by the 
               Chancellor" for clarification.

          7.   In 78280 subdivision (c), delete "(2) The pilot 




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               program shall be self-supporting, and all actual costs 
               associated with the program shall be recovered. Actual 
               costs include... etc." as the provision is duplicative 
               and conflicts with the definition of actual costs in 
               78280 subdivision (c) (13)(A).

          8.   In 78280 subdivision (d) delete "For districts 
               operating more than one college, the evaluation shall 
               be for each participating college" as author's 
               amendments only allow for one campus per district.