BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 960|
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                                 THIRD READING


          Bill No:  SB 960
          Author:   Rubio (D)
          Amended:  5/29/12
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  8-0, 4/11/12
          AYES:  Lowenthal, Alquist, Hancock, Huff, Liu, Price, 
            Simitian, Vargas
          NO VOTE RECORDED:  Runner, Blakeslee, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/24/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg


           SUBJECT  :    California State University:  campus-based 
          mandatory fees

          SOURCE  :     Author


           DIGEST  :    This bill prohibits campus-based mandatory fees, 
          that are not specifically authorized by statute, at the 
          California State University (CSU), from being reallocated 
          without an affirmative vote of either the student body or a 
          campus fee advisory committee, as specified.

           ANALYSIS  :    There is no statutory guiding policy on 
          mandatory system-wide student tuition and fees beyond the 
          current fiscal condition and the stated needs of University 
          of California and CSU, as negotiated in the budget 
          deliberations.
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          Campus-based fees are generally used to support on-campus 
          activities such as health facilities and services, student 
          university unions, athletic programs, 
          transit/transportation systems, and recreational 
          opportunities.  The state does not provide funding to 
          support these activities. 

          The Trustees adopted standing orders providing the 
          Chancellor the authority and responsibility to take 
          whatever actions are necessary for the appropriate 
          functioning of the CSU including, but not limited to, 
          establishment, oversight, and adjustment of campus-based 
          mandatory fees.

          This bill prohibits campus-based mandatory fees, that are 
          not specifically authorized by statute, at the CSU, from 
          being reallocated without an affirmative vote of either the 
          student body or a campus fee advisory committee, as 
          specified.

           Comments
           
          1. Campus-based fees are used to support on-campus 
             activities that are considered essential to student 
             success and the college experience.  For example, 
             campus-based fees funds services and programs such as 
             health facilities and services, student university 
             unions, athletic programs, transit/transportation 
             systems, and recreational opportunities.  The state does 
             not provide funding to support these activities.  
             However, there are instances where these fees have been 
             used to supplement instructional related activities. 

          2. CSU process dealing with mandatory campus-based fees.  
             Consistent with Education Code Section 89035, the 
             Trustees adopted standing orders providing the 
             Chancellor the authority and responsibility to take 
             whatever actions are necessary for the appropriate 
             functioning of the CSU including, but not limited to, 
             establishment, oversight, and adjustment of campus-based 
             mandatory fees (also known as category II fees).  As it 
             relates to mandatory campus-based fees, the Chancellor 
             provided campuses direction under Executive Order 1054.  

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             Among other things, under Executive Order 1054:

             A.     Authority  .  The Chancellor is delegated authority 
                for the establishment, oversight and adjustment of 
                category II fees. Campus presidents are not delegated 
                authority to establish category II fees.  The 
                president is delegated authority for the oversight 
                and adjustment of category II fees.

             B.     Responsibility  .  Campus presidents are responsible 
                for assuring that appropriate and meaningful 
                consultation occurs prior to adjusting any 
                campus-based fee and before requesting the Chancellor 
                establish a new category II fee. 

                (1)      Campus presidents shall establish fee 
                   advisory committees, as specified, in consultation 
                   with the student body association. Students 
                   appointed by the student body association 
                   constitute a majority of the voting members of the 
                   fee advisory committee.

                (2)      Campus presidents shall consult with the fee 
                   advisory committee before adjusting or requesting 
                   the chancellor establish any category II fee. 

                (3)      The policy presumes that a student fee 
                   referendum will be conducted prior to adjusting / 
                   establishing category II fees.  The president, 
                   however, may waive the referendum requirement if 
                   he/she determines that it is not the best 
                   mechanism to achieve appropriate and meaningful 
                   consultation, an alternative consultation process 
                   may be utilized.

                (4)      Alternative consultation strategies are to 
                   be developed with input from the student body 
                   association and the fee advisory committee to 
                   ensure the process is transparent, and meaningful, 
                   and will solicit the input of a representative 
                   sample of the student body.  Results of the 
                   alternative consultation process should be 
                   summarized and put in writing and used as 
                   additional advisory material to be taken into 

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                   consideration by the fee advisory committee and 
                   the president.

             C.     Accountability  .  Campus presidents must provide a 
                report of all fees, including category II fees, as 
                specified.  In addition, the president has authority 
                to decrease, suspend or eliminate fees as needed.

          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

          This bill will likely result in minor costs to individual 
          CSU campuses, and potentially significant cost pressure to 
          the state to backfill CSU to the extent that it was 
          unsuccessful in passing fee increases.

             Requirements to raise fees:  To the extent that CSU 
             campuses use the student referendum option to pass new 
             fees, campuses will incur costs of approximately $25,000 
             to publicize the referendum.  Seeking a vote of the 
             majority of a campus's fee advisory committee is likely 
             to result in only minor and absorbable costs.

             Barriers to raising and reallocating student fees:  If 
             this bill results in CSU campuses being unable to raise 
             or reallocate student fees to meet campus needs, it will 
             result in additional cost pressure for the state to fund 
             the CSU at a higher level, at a time when budget 
             reductions continue.

           SUPPORT  :   (Verified  5/29/12)

          California Faculty Association
          Numerous California State University students

           OPPOSITION :    (Verified  5/29/12)

          California State University, Chancellor's Office

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          "?the current executive language overrides the rights of 
          students to self-govern and allocate fees that the student 

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          body established and voted on through the referendum 
          process.  Several student bodies throughout the CSU system 
          have had their existing fees reallocated or new fees 
          established without a vote of the student body."

           ARGUMENTS IN OPPOSITION  :    According to the CSU, a student 
          referendum costs approximately $25,000 to publicize and 
          hold.  This includes advertisement in the campus newspaper, 
          printing a voter guide, and all other marketing costs 
          associated with promoting the referendum.  The campus also 
          incurs the cost of printing and counting ballots.  The 
          state does not reimburse CSU campuses for referenda or any 
          student election-related activity, but such activities do 
          put additional pressure on campus budgets. 

          If a referendum was not attempted, or was unsuccessful, the 
          CSU campus could not impose the fee changes it sought.  An 
          inability for a CSU campus to change its fees to meet 
          campus needs creates pressure for the state to increase 
          funding to CSU because the state will have (in passing this 
          bill) 
          specifically made it more difficult for CSU campuses to 
          raise their own revenue.  
           

          PQ:kc  5/29/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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