BILL NUMBER: AB 970 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 3, 2011
AMENDED IN ASSEMBLY JUNE 1, 2011
AMENDED IN ASSEMBLY MAY 27, 2011
INTRODUCED BY Assembly Member Fong
FEBRUARY 18, 2011
An act to add Section 66025.1 to the Education Code,
relating to postsecondary education. An act to add
Article 3.7 (commencing with Section 66028) to Chapter 2 of Part 40
of Division 5 of Title 3 of the Education Code, relating to
postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
AB 970, as amended, Fong. Systemwide
University of California and California State University: systemwide
student fees: student financial aid report.
(1) Existing law, known as the Donahoe Higher Education Act, sets
forth the missions and functions of the segments of public
postsecondary education in the state. The California State
University, which is governed by the Trustees of the California State
University (trustees) , and the University of California,
which is governed by the Regents of the University of California
(regents) , are 2 of the segments of public postsecondary
education. 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 regents
act by resolution to make them applicable.
Under existing law, the California State University and the
University of California are authorized to charge fees to students
attending their respective institutions.
This bill would add a provision to
establish the Working Families Student Fee Transparency and
Accountability Act as a part of the Donahoe Higher Education
Act requiring , and would establish various
policies relating to student fees and student financial aid at the
University of California and the California State University.
The bill would require any mandatory
systemwide fees charged to resident students at the California
State University and the University of California to be known, and
referred to, as "systemwide fees" or "fees," and would provide that
these fees shall not be known or referred to as "tuition." The bill
would require references to those fees in any policies, rules, or
regulations of the California State University and the University of
California to be consistent with the requirement that the fees be
known and referred to as "fees" and not "tuition."
The bill would prohibit any increase in the mandatory systemwide
fees charged to resident students enrolled in the University of
California or the California State University from being effective
before 6 months have elapsed after the date on which the fee increase
is adopted. The bill would require the regents and the trustees to
comply with prescribed public notice and student consultation
procedures prior to adopting an increase in mandatory systemwide fees
charged to resident students enrolled in their respective segments.
The bill would require the regents and the trustees, by April 2,
2012, to develop methodologies for the adjustment of fees in
accordance with a prescribed procedure. The bill would require 33% of
revenues of mandatory systemwide student fees to be reserved for
student financial support, as specified.
The bill, commencing with the 2011-12 academic year, would
require the trustees and the regents to provide reports on
expenditures and financial aid to the Legislature, and the
Legislative Analyst's Office to annually review and report to the
Legislature its findings, conclusions, or recommendations regarding
the implementation of policies implemented pursuant to the bill.
Because the provisions of the bill would be added to the Donahoe
Higher Education Act, they would apply to the University of
California only to the extent that the regents act by resolution to
make them applicable.
(2) Existing law establishes various student financial aid
programs under the administration of the Student Aid Commission, and
establishes eligibility requirements for the receipt of awards under
those programs for participating students attending qualifying
institutions.
This bill would require the commission, no later than July 31,
2012, to provide a report to the Legislature that details the
policies and interactions between various state and federal financial
aid programs, including the interaction between systemwide and
campus-based student fees, institutional financial aid at the
University of California and the California State University, Cal
Grants, and federal financial aid programs.
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. The Legislature finds and declares all
of the following:
(a) The California 1960 Master Plan for Higher Education declared
that a tuition-free higher education is in the best interest of the
state and should be continued for all California residents.
(b) The state has long recognized the value of providing broad
access to postsecondary education to the state's diverse residents
and the state remains committed to ensuring affordability and access
at the state's public colleges and universities.
(c) The state's working families who have children planning to
attend the state's public colleges and universities, or have children
currently attending the state's public colleges and universities,
have endured consistent and skyrocketing increases in mandatory
systemwide student fees.
(d) A report by the California Postsecondary Education Commission,
published in 2011 and entitled "College Costs and Family Income: The
Affordability Issue at the UC and the CSU," detailed that rising
costs are putting an education at California's public universities
out of reach for many Californians, and that incomes have not kept
pace with these rising costs, particularly for lower and
middle-income families who have seen little income growth in recent
years.
(e) Between 1990 and 2009, costs for a University of California
student living on campus rose by 70 percent. Costs for a California
State University student living with his or her family rose by over
80 percent. In this period, median family income in California grew
by only 16 percent.
(f) With rising costs, and flat or falling incomes, supporting a
student is taking an increasing percentage of Californians' incomes.
In 2000, the cost of attendance for a University of California
student living on campus was 25 percent of median family income in
California. By 2009, this cost grew to 39 percent of median family
income. Costs at California State University also grew relative to
incomes, from 19 percent of median family income in 2000 to 29
percent of median family income in 2009.
(g) In 2009, the total cost of attendance for a student living on
campus at the University of California was $27,100, an increase of 18
percent from three years earlier. Costs at the California State
University increased by 23 percent, to $20,100, during that period.
(h) Even with grants and fee waivers, the net cost of a year of
attendance at a University of California or a California State
University campus is one-third of annual income for a lower income
family. Net costs for middle-income families are about one-quarter of
annual income.
(i) More and more students have to work longer hours and increase
their debt burden during a particularly challenging economy and, as
fees and other costs increase, the work and loan burden on students
is increasing at a faster rate than grant aid.
(j) Increased costs can hinder a student's progress toward a
degree, forcing students to cut their class load to work more hours,
leave for semesters at a time, or drop out of school entirely.
(k) According to the "Student Expenses and Resources Survey"
conducted by the Student Aid Commission during the 2006-07 academic
year, approximately 74 percent of all undergraduate students in the
California State University system worked for pay for an average of
24 hours per week. Fifty-one percent of these students reported
working over 20 hours per week on average. In the University of
California system, approximately 54 percent of all undergraduate
students worked for pay for an average of 17 hours per week, and 23
percent of these students reported working over 20 hours per week on
average.
(l) The Institute for College Access and Success, in its report
"Student Debt and the Class of 2009," showed that average debt
accumulation for California students at public universities has risen
by 18 percent since 2005. In California, the average student debt
for students who completed a bachelor's degree was $17,326, and
national data show that some of the lowest income students who
generally have family incomes under $50,000 are much more likely to
borrow, and borrow more than their higher income peers, impacting job
opportunities and choices after graduation.
(m) The Regents of the University of California have raised
mandatory systemwide student fees by 68 percent since the 2007-08
academic year, and over 200 percent in the past decade. The Trustees
of the California State University have raised mandatory systemwide
student fees by 76 percent since the 2007-08 academic year, and over
242 percent in the past decade.
(n) The state does not have a proper accounting of the total costs
of educating students at either the University of California or the
California State University, or the actual uses of student fee
revenues, and it is critical for the state's public colleges and
universities to demonstrate transparency and accountability to the
general public.
(o) The state, in partnership with the state's colleges and
universities, is committed to 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.
(p) The principles expressed in this act seek to continue the
state's historic commitment to ensuring access to the state's public
universities for all Californians by ensuring sufficient notification
to the general public, students, and the state's working families of
any increases in student fees, proper consultation with students,
and accountability and transparency with respect to student fee
revenue.
(q) 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.
(r) Any increases in mandatory systemwide fees should be
accompanied by appropriate increases in funding for need-based
student financial aid.
SECTION 1. SEC. 2. (a) It is the
intent of the Legislature that financially needy students be able to
access public colleges and universities.
(b) No later than July 31, 2012, the Student Aid Commission shall
provide a report to the Legislature that details the policies and
interactions between the various state and federal financial aid
programs, including the interaction between systemwide and
campus-based student fees, institutional financial aid at the
University of California and the California State University, Cal
Grants, and federal financial aid programs. The Trustees of the
California State University shall, and the Regents of the University
of California are requested to, cooperate with the Student Aid
Commission and provide any information and data, including
institutional financial aid information and data, requested by the
commission for purposes of this section.
(c) A report submitted pursuant to subdivision (b) shall be
submitted in compliance with Section 9795 of the Government Code.
(d) This section is inoperative repealed
on January 1, 2016, pursuant to Section 10231.5 of the
Government Code.
SEC. 2. Section 66025.1 is added to the
Education Code, to read:
66025.1. (a) Any systemwide fees charged to resident students at
the California State University and the University of California
shall be known, and shall be referred to, as "systemwide fees" or
"fees" and shall not be known or referred to as "tuition."
(b) All references to systemwide fees charged to resident students
by the California State University and the University of California,
including references in any policies, rules, or regulations of those
institutions, shall be consistent with subdivision (a).
SEC. 3. Article 3.7 (commencing with Section
66028) is added to Chapter 2 of Part 40 of Division 5 of Title 3 of
the Education Code , to read:
Article 3.7. Working Families Student Fee Transparency and
Accountability Act
66028. This article shall be known, and may be cited, as the
Working Families Student Fee Transparency and Accountability Act.
66028.1. For purposes of this article, the following terms have
the following meanings:
(a) "Campus-based fees" means the fees that are imposed on
students at individual campuses of the University of California or
the California State University, that must be paid by all registered
students to whom the fees apply. "Campus-based fees" include fees to
fund: (1) student-related services and programs, including, but not
limited to, referenda-based student health insurance programs; (2)
construction and renovation of student buildings and other facilities
such as student centers and recreation facilities; and (3)
authorized student governments, registered campus organizations, and
student government-related and registered campus organization-related
programs, events, and other activities.
(b) "Mandatory systemwide fees" means the fees that resident
students enrolled in the California State University or the
University of California, as applicable, are required to pay in order
to enroll in courses for the academic term pursuant to any law or
any policy adopted by the trustees or the regents, as applicable.
(c) "Regents" means the Regents of the University of California.
(d) "Resident" means a student who is exempt from paying
nonresident tuition pursuant to Chapter 1 (commencing with Section
68000) of Part 41.
(e) "Trustees" means the Trustees of the California State
University.
66028.2. The following state policies apply to student financial
aid for, and mandatory systemwide fees charged to, resident students
enrolled at the University of California and the California State
University:
(a) As any 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. Any negative impact on financially needy
students shall be mitigated.
(b) Students should be consulted before increases on student fees
are proposed, so that students can provide input and ask questions
regarding the need for any increases in fees.
(c) Adequate advance notice should be provided to students
regarding any future student fees, thereby allowing the students and
their families greater time to prepare for the fees to be assessed.
(d) In order to ensure that access is not precluded for any
eligible student, and particularly for 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.
(e) 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 respective segment's
student populations and student fee levels.
(f) In order for the general public to maintain confidence in the
state's public colleges and universities, every effort should be made
to ensure increased transparency on the uses of any student fee
revenue and the rationale for making any student fee increases.
66028.3. (a) Any mandatory systemwide fees charged to resident
students at the California State University and the University of
California shall be known, and shall be referred to, as "systemwide
fees" or "fees" and shall not be known or referred to as "tuition."
(b) All references to mandatory systemwide fees charged to
resident students by the California State University and the
University of California, including references in any policies,
rules, or regulations of those institutions, shall be consistent with
subdivision (a).
66028.4. Any increase in the mandatory systemwide fees charged to
resident students enrolled in the University of California or the
California State University shall not be proposed by the trustees or
the regents, unless, at least 90 days prior to providing public
notice of a proposed increase in mandatory systemwide fees pursuant
to subdivision (a) of Section 66028.5, the respective governing board
consults with appropriate student representatives from the statewide
student body organization representing the students at its
respective segment.
66028.5. (a) Prior to adopting any increase in mandatory
systemwide fees charged to resident students, the regents or the
trustees, as applicable, shall provide public notice of the proposed
increase in a noticed public agenda for a meeting of the respective
governing board. The public notice of the proposed student fee
increase shall, at a minimum, include all of the following:
(1) A justification for the fee increase setting forth facts
supporting the fee increase.
(2) A thorough analysis of impacts on access, persistence, and
graduation of historically underrepresented students and low- to
middle-income students, with a detailed description of measures to
mitigate the impacts of the proposed increase in fees.
(3) A statement specifying the purposes for which any revenues
derived from an increase in fees will be used.
(b) The regents or the trustees shall not adopt any increase in
mandatory systemwide fees charged to resident students until at least
60 days have passed after providing public notice of the proposed
fee increase pursuant to subdivision (a). During the 60-day period,
the regents or the trustees, as applicable, shall encourage, solicit,
and receive public comments on the proposed increase in fees. The
comments, with appropriate responses to each of the comments, shall
be made available to the public at least 10 days prior to the meeting
at which the regents or the trustees propose to adopt the increase
in fees.
(c) Any increase in the mandatory systemwide fees charged to
resident students enrolled at the University of California or the
California State University shall not become effective until at least
six months have elapsed after the date on which the fee increase is
adopted.
(d) Following the adoption of an increase in mandatory systemwide
fees in accordance with this section, the respective segment shall
notify students of the student fees to be assessed in the upcoming
academic year. In addition, the respective segment shall
simultaneously inform students about the availability of student
financial aid and the procedures for obtaining that aid in order to
assist students with meeting the increased costs of attendance.
66028.6. (a) On or before April 2, 2012, the regents and the
trustees each shall develop a transparent methodology for adjusting
mandatory systemwide resident student fees consistent with the
policies set forth in this article. The methodology, at a minimum,
shall consider impacts on access, persistence, and graduation for
historically underrepresented students and low- to middle-income
students, and shall require the identification of measures to
mitigate impacts on those student populations.
(b) The methodologies, and any subsequent amendments to those
methodologies, shall be developed in consultation with appropriate
student representatives from statewide student body organizations and
shall be formally adopted by the regents or the trustees in an open
and public meeting.
(c) The annual budgets of the respective segments shall be drafted
on the basis that changes in fees are in accordance with the
methodology developed pursuant to this section and shall specify the
purposes for which any revenues derived from an increase in mandatory
systemwide fees will be used.
(d) Nothing in this section shall be construed to exempt any
increase in mandatory systemwide fees from the requirements of
Sections 66028.4 and 66028.5.
66028.7. (a) At least 33 percent of the revenues of mandatory
systemwide fees charged to any resident students shall be set aside
by the regents or the trustees, as applicable, for institutional
student aid to assist students and families in meeting the total cost
of education.
(b) The regents and trustees shall report their compliance with
this section in their respective annual reports on institutional
financial aid pursuant to Section 66021.1.
66028.9. (a) Notwithstanding Section 10231.5 of the Government
Code, commencing with the 2011-12 academic year, the regents and the
trustees shall annually provide the Legislature, by February 1 of
each year, with detailed information regarding expenditures of
revenues derived from student fees and uses of institutional
financial aid, and shall provide information regarding the total cost
of education per student, categorized specifically by undergraduate
and graduate education costs, including fixed costs, variable costs,
administrative costs, instructional costs, and student services
costs. For purposes of meeting the requirements of this section, the
regents and the trustees may include this information in their
respective annual report on institutional financial aid pursuant to
Section 66021.1.
(b) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2011-12 academic year, the Legislative Analyst's
Office shall annually review, by March 1 of each year, institutional
compliance with the policies set forth in this article, and report,
in writing, to the Legislature its findings, conclusions, or
recommendations regarding the implementation of these policies. This
report shall include an assessment of the information provided by the
regents and the trustees pursuant to subdivision (a).
(c) A report submitted pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code.