BILL ANALYSIS Ó AB 386 Page 1 Date of Hearing: May 8, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 386 (Levine) - As Amended: April 30, 2013 Policy Committee: Higher EducationVote:13-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill allows students at the California State University (CSU) to enroll in courses offered entirely online by any CSU campus. Specifically, this bill: 1)Provides that, by the 2015-16 academic year, a California resident enrolled at a CSU campus may enroll for credit, without formal admission and without paying additional tuition, in a course provided entirely online by another CSU campus. 2)Stipulates that (1) also applies to nonresident and international CSU students, but these students must pay the per unit fees for such courses at the host campus. 3)Authorizes the host campus, which is providing the online course, to charge participating students from other campuses reasonable administrative and course-based fees sufficient to cover host's campus costs for these students' participation. 4)Requires the CSU Chancellor's Office to establish an online methodology for students to be informed of the opportunity to access the online courses and to simultaneously enroll in courses at the home campus and online courses at another campus. 5)Provides priority for enrollment in the online classes to students from the host campus. 6)Requires the CSU Trustees, by January 1, 2015, to establish (a) an online database of online courses available at all CSU AB 386 Page 2 campuses, and (b) plans for the intrasystem cross-enrollment process as described above. FISCAL EFFECT The CSU, over two years, will incur one-time General Fund costs of about $1.1 million to: (a) develop systems and processes for students to enroll and register in available online courses at any CSU campus, including reliable and timely authentication of grading and integration into student transcripts; and (b) establish a reliable systemwide database of available online courses and a means for students to determine course availability. Ongoing GF costs are estimated at around $200,000. The CSU indicates that it would use existing resources plus a portion of the Governor's budget augmentation (see below) to implement the above changes. To the extent the cross-enrollment in online courses assists CSU students expediting achievement of their educational goals, students, the system, and the state will benefit from this increased efficiency. COMMENTS 1)Background . According to the Legislative Analyst's Office (LAO), distance learning offers numerous benefits, including providing greater access to educational and training opportunities due to increased scheduling flexibility, as well as allowing campuses to serve more students without additional physical infrastructure. The Governor has encouraged the segments to expand their online offerings. Specifically, his 2013-14 budget proposal earmarks $16.9 million to CCC and $10 million each to CSU and UC for this purpose. Launched in January 2013, CSU Online is the newest platform of services that supports students and faculty in teaching and learning through online programs. CSU Online will host both graduate and undergraduate programs, but has an initial focus on former students who have had to drop out of the CSU and are looking to complete their degrees. 2)Purpose . According to the author, while the CSU does permit students to concurrently enroll in courses at campuses other than their home campus, the option is severely underutilized. AB 386 Page 3 According to CSU, each campus currently provides its students with an online registration portal allowing students to easily enroll in courses provided at their home campus. Each portal currently operates as an isolated entity, however, and does not provide students the ability to seek and enroll in online courses provided at other CSU campuses. This bill is supported by the CSU and by the California State Student Association. 3)Related Legislation . The following online education bills are pending in this committee: a) AB 387 (Levine) requires CSU to report performance date regarding online courses. b) AB 944 (Nestande) establishes a common definition of distance learning course and requires data gathering and reporting on such courses offered by the state public postsecondary institutions. c) AB 985 (Rendon) establishes a task force to examine online education in California's public higher education systems. In addition, SB 520 (Steinberg) seeks to provide a statewide mechanism for online course providers to offer transferable courses for credit throughout the state's public postsecondary education, and SB 547 (Block) requires the UC, CSU, and CCC academic senates to identify online courses to be available for students of all three segments. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081