BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 387
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 387 (Levine) - As Amended:  April 30, 2013 

          Policy Committee:                              Higher  
          EducationVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the California State University (CSU) to  
          report performance data for students taking online courses.  
          Specifically, this bill requires the CSU Board of Trustees to:

          1)Establish uniform definitions of online education for the  
            system by January 1, 2015.

          2)Report to the Legislature student performance data, as  
            specified, by January 1, 2017 and every two years thereafter  
            through 2021.

           FISCAL EFFECT  

          CSU indicates that it is currently developing a uniform  
          definition of online courses. General Fund costs for the initial  
          report will be $50,000 and $15,000 for each of the two  
          subsequent reports. These costs are absorbable.

           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 needing  
            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.








                                                                  AB 387
                                                                  Page  2


            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, this bill is aimed at  
            addressing several policy problems that exist within the CSU.   
            The CSU is seeking to deliver new and existing courses through  
            online education, which is a powerful tool, but as it  
            continues to develop, the Legislature should ensure it is  
            appropriately measured so adjustments and improvements can be  
            made.  

           3)Related Legislation  . The following online education bills are  
            pending in this committee:

             a)   AB 386 (Levine) allows CSU students to enroll in courses  
               offered entirely online by any CSU campus.

             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