BILL NUMBER: AB 970	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 29, 2012
	PASSED THE ASSEMBLY  AUGUST 30, 2012
	AMENDED IN SENATE  AUGUST 24, 2012
	AMENDED IN SENATE  JULY 6, 2012
	AMENDED IN SENATE  JUNE 25, 2012
	AMENDED IN ASSEMBLY  JANUARY 26, 2012
	AMENDED IN ASSEMBLY  JUNE 3, 2011
	AMENDED IN ASSEMBLY  JUNE 1, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011

INTRODUCED BY   Assembly Members Fong and Block
   (Principal coauthor: Assembly Member John A. Pérez)
   (Coauthors: Assembly Members Brownley, Galgiani, and Portantino)

                        FEBRUARY 18, 2011

   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, Fong. University of California and California State
University: systemwide student fees.
    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 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 establish the Working Families Student Fee
Transparency and Accountability Act as a part of the Donahoe Higher
Education Act, 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 the regents and the trustees to comply with
prescribed public notice and student consultation procedures prior
to adopting an increase in mandatory systemwide fees, and would
prohibit them from adopting a mandatory systemwide fee increase
before specified dates, except as specified. The bill would require
the regents and the trustees, by April 2, 2013, to develop a list of
factors that would be required to be taken into consideration when
developing recommendations to adjust mandatory systemwide fees.
    The bill, commencing with the 2012-13 academic year, would
require the trustees and the regents to provide annual reports on
expenditures and financial aid to the Legislature, and would require
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.


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 has demonstrated that commitment by investing in postsecondary
education. This act seeks to continue the state's historic commitment
to ensuring affordability and access and maintaining quality through
the state's public universities, while recognizing the fiscal
challenges that confront both the state and postsecondary education.
   (c) Despite large increases in the number of high school
graduates, state General Fund spending on postsecondary education has
declined notably. In 2010-11, the state spent $1.6 billion less on
postsecondary education than it did 10 years earlier. According to
the 2012 Public Policy Institute of California report, "Defunding
Higher Education," the University of California and the California
State University have responded to funding cuts by reducing course
offerings and limiting enrollment, as well as increasing tuition and
fees.
   (d) The state's working families who have children attending the
state's public colleges and universities have endured significant
increases in mandatory systemwide student fees. While financial aid
has alleviated some of the impact from this increase in fees, the
increased cost of a college education remains of concern for working
families.
   (e) 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 making an education at California's public universities
more of a financial strain for many Californians as their incomes
have not kept pace with these increasing costs.
   (f) 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. With rising costs, and flat or falling incomes,
the cost of supporting a student is taking an increasing percentage
of the incomes of these families.
   (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. As a result, students may have to work additional
hours or increase their debt burden to meet college expenses.
   (i) 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.
   (j) 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.
   (k) 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.
   (l) 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.
   (m) 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.
   (n) 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.
   (o) 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.
   (p) 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.
   (q) Any increases in mandatory systemwide fees should be
accompanied by appropriate increases in funding for need-based
student financial aid.
  SEC. 2.  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) "Consultation" or "consult" means a meeting between
representatives from the University of California or the California
State University and their respective statewide student association
representatives in which the representatives from the institutions
provide, at minimum, all the following information at least five days
before the meeting:
   (1) A justification for a fee increase proposal, setting forth the
facts supporting the fee increase.
   (2) A statement specifying the purposes for which revenue derived
from a fee increase will be used.
   (3) A description of the efforts to mitigate the impact of the fee
increase on needy students.
   (4) The potential impact to students, including, but not limited
to, the changes to the minimum workload burden for all students, if
applicable, institutional financial aid awards, and the average
student loan debt for undergraduates.
   (5) Alternative proposals that can be considered in lieu of the
proposed net student fee revenue proposal.
   (b) "Cost of attendance" means the mandatory systemwide fees,
books and supplies, room and board, transportation, and miscellaneous
personal expenses for an undergraduate California resident student,
as used in determining financial aid eligibility.
   (c) "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.
   (d) "Regents" means the Regents of the University of California.
   (e) "Resident" means a student who is exempt from paying
nonresident tuition pursuant to Chapter 1 (commencing with Section
68000) of Part 41.
   (f) "Trustees" means the Trustees of the California State
University.
   66028.2.  The following state policies apply to student financial
aid for resident students, and mandatory systemwide fees charged at
the University of California and the California State University:
   (a) As any changes in mandatory systemwide fees and financial aid
resources are considered, the impact on students should be explained
to students, including, but not limited to, changes to the minimum
work or loan burden for all students, if applicable, institutional
financial aid awards, and the average student loan debt for
undergraduate students.
   (b) Students should be consulted before increases on mandatory
systemwide fees are proposed, so that students can provide input and
ask questions regarding the need for any increases in mandatory
systemwide fees.
   (c) Adequate advance notice should be provided to students
regarding any future mandatory systemwide fees, thereby allowing the
students and their families greater time to prepare for the mandatory
systemwide 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) 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 in the uses of mandatory systemwide
fee revenue and the rationale for implementing mandatory systemwide
fee increases.
   66028.3.  (a) Ten days prior to holding a meeting to discuss or
adopt an increase in mandatory systemwide fees, the University of
California and the California State University shall provide public
notice of the proposed mandatory systemwide fee increase as a
discussion item in the public agenda for a meeting of the respective
governing board. The public notice shall allow for comments to be
received, both verbally and in writing, at the meeting and during the
45-day period required pursuant to subdivision (c). The public
notice of the proposed mandatory systemwide fee increase shall, at a
minimum, include all of the following:
   (1)  A justification for the fee increase proposal, setting forth
the facts supporting the fee increase.
   (2) A statement specifying the purposes for which revenue derived
from a fee increase will be used.
   (3) A description of the efforts to mitigate the impact of the fee
increase on needy students.
   (4) The potential impact to students, including, but not limited
to, the changes to the minimum workload burden for all students, if
applicable, institutional financial aid awards, and the average
student loan debt for undergraduates.
   (5) Alternative proposals that can be considered in lieu of the
proposed net student fee revenue proposal.
   (b) The University of California and the California State
University shall consult with their respective statewide student
associations at least 30 days prior to providing public notice of the
proposed mandatory systemwide fee increase. The range of potential
mandatory systemwide fees under consideration for the next fiscal
year shall be discussed with appropriate student representatives at
the time of consultation before public notice of the mandatory
systemwide fee increase proposal.
   (c) The regents and the trustees shall not act to adopt a
mandatory systemwide fee increase until at least 45 days after a
public meeting is held to discuss the fee. The regents and the
trustees shall provide a summary of the comments received pursuant to
subdivision (a) in the public notice provided before the meeting to
adopt a mandatory systemwide fee increase.
   (d) The regents and the trustees shall not adopt an increase in
mandatory systemwide fees after the 90th day prior to the
commencement of classes for the academic year. This prohibition shall
not apply to an increase in mandatory systemwide fees for a summer
session.
   (e) (1) In cases where the Governor's proposed budget reduces
General Fund appropriations from the prior annual Budget Act for the
support of the operations of University of California or California
State University, the Legislature enacts or authorizes reduced
General Fund appropriations from the prior annual Budget Act for the
support of the operations of University of California or California
State University, the Legislature enacts a budget reduction for the
General Fund support of the operation of the University of California
or California State University in the middle of a fiscal year, or
the Governor implements a budget reduction for the General Fund
support of the operation of the University of California or
California State University in the middle of a fiscal year,
subdivisions (a), (b), (c), and (d) shall not apply.
   (2) In the instances described in paragraph (1), the University of
California and the California State University shall discuss with
their respective statewide student associations proposals for
mandatory systemwide fee increases at least seven days before posting
notice of action to increase those fees. An increase in the
mandatory systemwide fees at the University of California or the
California State University shall not become effective until at least
30 days have elapsed after the date on which the fee increase was
adopted.
   (f) Following the adoption of an increase in mandatory systemwide
fees in accordance with this act, the University of California and
the California State University shall notify matriculated students of
the mandatory systemwide fees to be assessed in the upcoming
academic year or the upcoming quarter or semester. In addition, the
respective institution shall simultaneously inform students about the
availability of student financial aid and the procedures for
obtaining that financial aid in order to assist students with meeting
the increased costs of attendance.
   66028.4.  (a) On or before April 2, 2013, the regents and the
trustees each shall develop a list of factors that shall be taken
into consideration when developing recommendations to adjust
mandatory systemwide fees consistent with the policies set forth in
this article. The factors shall include, at a minimum, the level of
state support, total cost of attendance, impact on various categories
of students, including historically underrepresented students and
low- to middle-income students, as well as efforts to mitigate the
impacts.
   (b) The factors, and any subsequent amendments to those factors,
shall be developed in consultation with the appropriate statewide
student body associations and shall be formally adopted by the
regents or the trustees in an open and public meeting.
   (c) Nothing in this section shall be construed to exempt any
increase in mandatory systemwide fees from the requirements of
Section 66028.4.
   66028.5.  (a) The regents and the trustees are urged to maintain
their commitment to institutional financial aid program funding by
ensuring that at least 33 percent of the revenues of an increase to
existing mandatory systemwide fees charged to resident students is
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.
   66028.6.  (a) Notwithstanding Section 10231.5 of the Government
Code, commencing with the 2012-13 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 systemwide
average total cost of attendance per student. 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 2012-13 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.