BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 960| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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. CONTINUED SB 960 Page 2 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. CONTINUED SB 960 Page 3 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 CONTINUED SB 960 Page 4 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 CONTINUED SB 960 Page 5 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 **** END **** CONTINUED