BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 944
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 944 (Nestande) - As Introduced:  February 22, 2013 

          Policy Committee:                              Higher  
          EducationVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill establishes a common definition of distance learning  
          course and requires data gathering and reporting on such courses  
          offered by the state public postsecondary institutions. 
          Specifically, this bill:

          1)Defines distance learning course as a course conducted with a  
            majority of the instructional content delivered when faculty  
            and students are in different locations and instruction is  
            delivered through technology.

          2)Requires the California State University (CSU) and the  
            California Community Colleges (CCC), and requests the  
            University of California (UC), by January 1, 2016 and every  
            two years thereafter until January 1, 2020, to report  
            specified workload and performance data to the Legislature,  
            including program completion rates for degree programs that  
            include exclusively distance learning courses.

           FISCAL EFFECT  

          1)Community colleges currently report all the information  
            required in this bill except distance education program  
            completion rates. Assuming all districts incurred costs  
            averaging a few thousand dollars for programming, total  
            one-time General Fund (Prop. 98) reimbursable costs, for the  
            initial report, would be $140,000 to $210,000. Costs for  
            succeeding reports should be reimbursable. The Chancellor's  
            Office of the CCC will incur one-time General Fund costs up to  
            $40,000 to update its curriculum inventory.









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          2)CSU will incur one-time General Fund costs of $60,000 to  
            $100,000 to implement the reporting requirements. UC indicates  
            that any costs would be absorbable.

           COMMENTS  

           1)Background  . Distance learning generally refers to instruction  
            where faculty and students are in separate locations and  
            communicating using technology-usually over the internet or  
            with television.  The main providers of distance learning in  
            California are private for-profit colleges and CCC. According  
            to the Legislative Analyst's Office (LAO), in 2011-12, the CCC  
            system spent approximately $500 million serving over 100,000  
            FTE students through online education (about 10% of total  
            instruction provided that year). Though CSU does not separate  
            costs by instructional type, each of the segment's 23 campuses  
            provide online instruction, primarily to undergraduate s. UC  
            has historically offered very little state-supported online  
            instruction, yet over the past few years, UC has expanded its  
            online program-with plans to continue adding courses in the  
            near future. Among the three segments, the LAO estimates more  
            than 20,000 undergraduate courses (and more than 30,000 course  
            sections) were offered online in 2011-12.

           2)Purpose  .  According to the author, this bill seeks to increase  
            college access to those unable to participate in traditional  
            classroom college instruction and/or who find distance  
            learning to be a better option.  The bill's provisions are  
            based on the recommendations contained in a 2010  LAO report,  
            "Using Distance Education to Increase College Access and  
            Efficiency." 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.  

           3)Prior Legislation  . This bill is substantially similar to AB  
            851 (Nestande) of 2010, which was held on Suspense in Senate  
            Appropriations.

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

             a)   AB 386 (Levine) requires that CSU students have an  
               opportunity to enroll in online courses available at other  








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               CSU campuses, beginning in 2015-16.

             b)   AB 387 (Levine) requires CSU to report performance date  
               regarding online course.

             c)   AB 895 (Rendon) establishes a task force to evaluate and  
               collect data postsecondary online education.

               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