BILL ANALYSIS                                                                                                                                                                                                    Ó

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          AB 386 (Levine)
          As Amended  May 28, 2013
          Majority vote 

           HIGHER EDUCATION    13-0        APPROPRIATIONS      17-0        
          |Ayes:|Williams, Chávez, Bloom,  |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Fong, Fox, Jones-Sawyer,  |     |Bocanegra, Bradford, Ian  |
          |     |Levine, Linder, Medina,   |     |Calderon, Campos,         |
          |     |Olsen, Quirk-Silva,       |     |Donnelly, Eggman, Gomez,  |
          |     |Weber, Wilk               |     |Hall, Ammiano, Linder,    |
          |     |                          |     |Pan, Quirk, Wagner, Weber |

           SUMMARY  :  Expresses the intent of the Legislature that by the  
          beginning of the 2015-16 academic year, students enrolled at the  
          California State University (CSU) be provided an opportunity to  
          enroll in online courses available at other CSU campuses, and  
          that on or before January 1, 2015, for purposes of measuring the  
          effectiveness of online education, the Trustees of the CSU shall  
          establish a series of uniform definitions for online education;  
          authorizes any CSU student enrolled at a CSU campus to enroll in  
          an online course provided by another CSU campus; requires the  
          CSU Trustees, on or before January 1, 2015, to establish an  
          easily accessible online database of online courses available at  
          the CSU; and, states that the CSU Trustees, on or before January  
          1, 2017, report to the Legislature on performance data on online  
          courses as specified.  Specifically,  this bill  :  

          1)Requires the CSU Trustees, on or before January, 1, 2015, to  
            establish the following:

             a)   An easily accessible online database of online courses  
               available at all CSU campuses in order to provide CSU  
               students with a streamlined process within the CSU system  
               to allow students to find and enroll in courses that will  
               earn them credit toward graduation, general education, and  
               major requirements; and,

             b)   Plans for an intrasystem cross-enrollment process to  
               expedite student learning that will be operational at the  
               beginning of the 2015-16 academic year.


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          2)Allows, by the beginning of the 2015-16 academic year, any  
            student enrolled in a CSU who meets the requirements of this  
            measure to enroll, without formal admission, and without  
            payment of additional tuition or fees, except specified, in a  
            course provided entirely online by another campus of the CSU  
            on a space-available basis.  

          3)Specifies that nonresident and international CSU students who  
            meet the conditions of this measure may also enroll in an  
            online course provided by another CSU campus and that they  
            shall pay their unit fees for the online course at the host  

          4)Specifies that a student is qualified to participate in the  
            program established by this measure if he/she is enrolled in a  
            CSU campus and meets the following requirements:

             a)   The student has attained a grade point average of 2.0 on  
               a four-point scale for work completed; and,

             b)   The student has paid appropriate tuition or fees, or  
               both, required by the home campus for full-time enrollment  
               for the academic term in which the student seeks to  
               cross-enroll and the student has no outstanding tuition or  
               fees owed to the home campus.  

          5)Specifies that the host campus may charge participating  
            students a reasonable administration fee and specific  
            course-based fees, not to exceed an amount sufficient for the  
            campus to recover reasonable administrative costs it incurs  
            pursuant to this measure.  

          6)Requires the CSU Chancellor's Office to establish a convenient  
            online methodology so that students meeting the requirements  
            of this measure may do both of the following:

             a)   Be informed of the opportunity to access courses  
               provided entirely online by another CSU; and,

             b)   Simultaneously enroll in courses at their home campus  
               and enroll in courses provided entirely online at another  
               CSU campus, as provided for in this measure.  


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          7)Stipulates that a matriculated CSU student will have priority  
            access to courses provided at his/her home campus, and a CSU  
            student, meeting the requirements of this measure, seeking to  
            enroll in courses provided entirely online by another CSU  
            campus shall be able to enroll. 

          8)Specifies that cross-enrollment students have an opportunity  
            to enroll in these online courses at any time after the  
            priority enrollment period for continuing students, as  
            determined by each host campus, and that the host campus  
            enrollment policy, to the extent possibly, shall encourage  

          9)Stipulates that courses provided entirely online pursuant to  
            this measure shall be accepted for credit at the student's  
            home campus on the same basis as it would be for a student  
            matriculated at the host campus.  

          10)Stipulates that the enrollment of a student at a host campus  
            pursuant to this measure may be counted in the calculation of  
            headcount or full-time equivalent student enrollment at the  
            host campus and that the home campus and the host campus at  
            which the student is cross-enrolled may count in the  
            calculation of headcount or full-time equivalent student  
            enrollment only those units for which the student is enrolled  
            at each respective campus.

          11)Specifies that for the purposes of this measure, the  
            definitions created by the CSU Trustees, at a minimum, shall  
            include a systemwide definition for an online course where the  
            course can be entirely completed remotely.

          12)Requires the CSU Trustees on or before January 1, 2017, and  
            on or before January 1 every two years thereafter, to report  
            to the Legislature key performance data on online courses as  
            defined in the measure, including, but not necessarily limited  
            to, all of the following:

             a)   The number of students enrolled at each campus;

             b)   Course completion rates for courses other than online  

             c)   Completion rates for degree programs that include no  


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               online courses;

             d)   Grade point average for students enrolled in online  

             e)   The number of students cross-enrolled in online courses  
               at a CSU campus other than the campus at which they are  

             f)   Course completion rates for students enrolled in online  
               courses; and,

             g)   Completion rates for degree programs that include online  

          13)Specifies that student enrollment and completion rate data  
            shall be included in a report (and that the provision  
            requiring the report will become inoperative on July 1, 2021)  
            to be submitted to the Legislature pursuant to this measure  
            and must be made available by demographics, including age,  
            gender, and ethnicity.

          14)Requires the CSU Trustees to report to the Legislature, on or  
            before January 1, 2015, on the feasibility of developing an  
            accelerated bachelor's degree completion program consisting of  
            online courses, aimed at students who started college but  
            never obtained a degree.
          15)Defines "Chancellor" to mean the Chancellor of the CSU; "CSU"  
            to mean the California State University; "Home campus" to mean  
            the CSU campus at which the student is matriculated; and,  
            "Host campus" to mean the campus to which the student seeks  

           EXISTING LAW  :

          1)Establishes the California Distance Learning Policy, which  
            sets forth the guiding goals and principles for the  
            utilization of technology in California postsecondary  
            education (Education Code (EC) Section 66940).

          2)Establishes, until January 1, 2014, the California Virtual  
            Campus, under the stewardship of the California Community  
            Colleges (CCC) Board of Governors and pursuant to annual  


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            Budget Act funding to, among other things, enhance the  
            awareness of, and access to, highly engaging online courses of  
            study,  increase access to next generation Internet services,  
            21st century workforce development programs, and e-government  
            services for students and staff served or employed by  
            education entities and students served primarily online  
            through partnerships with public libraries and community-based  
            organizations (EC Section 78910.10).

          3)Allows any student enrolled in any campus of the three public  
            segments who meet certain criteria, to enroll without formal  
            admission to any of the segments, with certain specified  
            conditions (EC Section 66750 et seq.).

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, the CSU, over two years, will incur one-time General  
          Fund (GF) 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  
          The CSU indicates the following:  a) that it would use existing  
          resources plus a portion of the Governor's budget augmentation  
          to implement the above changes; and b) it is currently  
          developing a uniform definition of online courses.  GF costs for  
          the initial report will be $50,000 and for the two subsequent  
          reports will be $15,000 each.  These costs are absorbable.

           COMMENTS  :  According to the author, the CSU is a leading  
          institution in online education; currently offering more than  
          13,300 fully online or hybrid courses.  Within the CSU there is  
          tremendous potential for increased access through  
          cross-enrollment in online courses.  This bill will provide  
          students matriculated at any CSU campus with a streamlined point  
          of access to online courses provided by any of the 23 CSU  

          According to the Legislative Analyst's Office (LAO) 2013-14  
          Analysis of the Higher Education Budget, distance learning  
          offers numerous benefits.  These include providing greater  
          access to educational and training opportunities due to  


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          increased scheduling flexibility, as well as allowing campuses  
          to serve more students without needing additional physical  
          infrastructure.  According to the, LAO there is no common  
          definition of distance learning among California's public  
          postsecondary institutions, making it impossible for the  
          Legislature and segments to measure workload and track  
          enrollment trends.  

          Governor Brown has encouraged the University of California (UC),  
          the CSU and the CCC to expand their online offerings.  he  
          2013-2014 Budget allocates $16.9 million to CCC and $10 million  
          to both the UC and CSU systems for online education.

          Online education at the CSU.  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.

          CSU at San Jose recently launched a joint pilot program,  
          partnering with Udacity (an independent online education company  
          and innovators of massive open online courses [MOOCs]) and EdX  
          (a nonprofit MOOCs provider).  This joint pilot program creates  
          a major expansion of course offerings for students and plans to  
          expand its current enrollment of 300 students to 1,000.  The  
          joint pilot program used three entry-level courses that  
          typically have high failure rates, intermediate algebra, college  
          algebra, and elementary statistics and currently has an 85%  
          retention rate.  

          Several online education related measures have been introduced  
          in the last couple of years; most of them were held on the  
          Suspense Files in the Assembly and Senate Appropriations  

          Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  

                                                                FN: 0001010


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