BILL ANALYSIS Ó SENATE COMMITTEE ON EDUCATION Carol Liu, Chair 2013-2014 Regular Session BILL NO: AB 1358 AUTHOR: Fong AMENDED: June 27, 2013 FISCAL COMM: Yes HEARING DATE: July 3, 2013 URGENCY: No CONSULTANT:Daniel Alvarez SUBJECT : Student body association: student representation fee. SUMMARY This bill increases the current community college student representation fee from one dollar ($1) to two dollars ($2) per semester, subject to an affirmative majority vote (rather than two-thirds) of a community colleges' students and directs the additional one dollar ($1) fee increase to be expended on the establishment and support the operations of a statewide community college student organization, as specified. BACKGROUND Current law permits the governing board of a community college district to authorize the students of a college to organize a student body association. (Education Code § 76060) Current law provides that a student body association may order an election be held for the purpose of establishing a student representation fee of one dollar ($1) per semester. An affirmative vote of two-thirds (2/3) of the students voting in the election shall be sufficient to establish the fee. However, the number of students who vote must equal or exceed the average number of students who voted in the previous three student body elections. The fee money collected shall be expended to provide support of governmental affairs representatives who may be stating their positions and viewpoints before city, county, and district governments and before offices and agencies of state government. Students may refuse to pay the fee for religious, political, financial, or moral reasons. The AB 1358 Page 2 chief fiscal officer of the community college shall have custody of the fee money collected, but the funds shall be disbursed to the student body association for the specified purposes. Finally, the community college district may retain a portion of the fees collected that is equal to the actual cost of administering these fees up to, but not more than, seven percent. (EC § 76060.5) ANALYSIS This bill increases the current community college student representation fee from one dollar ($1) to two dollars ($2) per semester, subject to an affirmative majority vote (rather than two-thirds) of a community colleges' students and directs the additional one dollar ($1) fee increase to be expended on the establishment and support the operations of a statewide community college student organization, as specified. More specifically, this bill: 1) Clarifies that current and prospective student representation fee (SRF) revenue may be expended on local or statewide student body associations. 2) Authorizes a student body association (SBA) to call campus-wide elections to determine whether to assess a SRF of two dollars ($2) per semester. 3) Reduces the affirmative vote from two-thirds to a majority of the students voting in the election, as specified, to establish the SRF. 4) Specifies that $1 of every $2 fee collected shall be expended to establish and support the operations of an independent statewide community college student organization that is recognized by the Board of Governors of the California Community Colleges, with governmental affairs representatives to advocate before the Legislature and other state and local governmental entities. The measure specifies this provision only applies to SRFs adopted on or after January 1, 2014. 5) States that any community college SBA that has adopted a SRF before January 1, 2014 retains authority to AB 1358 Page 3 continue to receive the one dollar ($1) fee as authorized prior to enactment of this measure. The SBA may conduct an election to adopt a revised SRF - if the students pass the revised SRF, then one dollar ($1) of every two dollars ($2) collected shall be expended for purposes specified under #3 above. 6) Requires the community college district (CCD) to annually prepare a summary of all revenue collected from the SRF and the expenditures of the proceeds. The summary shall be presented at the community college district board meeting each year and posted to the CCD Internet web site. STAFF COMMENTS 1) Need for the bill . According to the author, the 2.4 million students at the California Community College (CCC), unlike their counterparts at the University of California and the California State University, do not have a sustainably funded statewide student association. AB 1358 will assist CCC students in establishing and sustaining statewide legislative and governmental advocacy through their recognized representative organization, the Student Senate of California Community Colleges (SSCCC). 2) Is this the right time to raise fees of any kind ? Although the price per unit at California Community Colleges remains the lowest in the nation, students face increased costs for books and other school related materials. Although the student representation fee is voluntary and students can opt out for various reasons, including if they cannot afford the cost; it is presently unknown how many students are aware that they can opt-out of paying the SRF. According to the SSCCC, there is a great deal of support for an increased SRF for the sole purpose of being able to form an organized independent statewide organization. 3) Fund balance of current fee viewed from a statewide perspective. At present, according to unaudited survey information provided by the California AB 1358 Page 4 Community College Chancellor's Office, for the three-year period ending with 2011-12, there was a total statewide fund balance of approximately $3.8 million - actual fund balance amounts vary among the community college districts that have a student representation fee (SRF) currently in place - and likely understates the actual amount available on a statewide basis. In an attempt to provide more transparency and review, this bill now requires the community college district (CCD) to annually prepare a summary of all revenue collected from the SRF and the expenditures of the proceeds. The summary shall be presented at the community college district board meeting each year and posted to the CCD Internet Web site. 4) Why don't local colleges use a portion of their current SRF fund balance to provide for a statewide advocacy approach for community college students ? Current law permits the existing fee revenue to be used to "provide support of governmental affairs representatives who may be stating their positions and viewpoints before city, county, and district governments and before offices and agencies of state government." According to current Student Senate of the California Community Colleges (SSCCC) representatives, many local student body associations (SBA) have been advised by their colleges that expenditures of SRF can only be used for expenses incurred by the specific colleges' student representatives for advocacy approaches consistent with statute, and not for statewide advocacy. In addition, some colleges do provide some level of financial assistance; however, this type of support varies from year-to-year and does not create a stable funding environment to support on-going statewide advocacy efforts. The author has attempted to partially address this issue by clarifying a SBA may expend current or prospective SRF funds for "?local and statewide student body associations?" The proposed language is an attempt to clearly permit existing SRF to be used AB 1358 Page 5 for statewide purposes, if so directed by the local SBAs; this in part may have the effect of lowering existing fund balances. 5) Senate Education Committee of June 19. The committee had a robust discussion on the SRF fund balances, the necessity for an additional dollar fee, the concept of community college students having a greater statewide presence, but also the additional fiscal and management accountability that comes with a statewide organization. Since this time, the representative students and author's office have had numerous meetings, with various entities, on the outstanding issues raised. The concept of greater statewide advocacy and uniform representation continues to make sense; however, the bill is vague on the goals of what an independent statewide community college student organization should strive to accomplish. In addition, transparency and accountability should be cornerstones of a responsible statewide entity. Therefore, consistent with subsequent discussions with the author's office, staff recommends the following amendments as refined with assistance from Legislative Counsel: a) On page 3, line 21 after the comma, insert: With effective student representation and participation in state-level community college shared governance and b) On page 3, line 23 after the period insert: The underlying goals shall include, but are not limited to: (a) establishing a sustainable foundation for statewide community college student representation and advocacy; (b) promotion of institutional and organizational memory; (c) insuring and maintaining responsible community college student organizational oversight and decision-making; (d) strengthening regional approaches for college representation and coordination; (e) promote and enhance student AB 1358 Page 6 opportunities for engagement in community college student issues and affairs; and (f) provide for open and public transparency and accountability. c) On page 3, between lines 24 and 25, insert new subdivisions (d) and (e): (d) Fees collected pursuant to subdivision (c) shall be distributed to the Board of Governors annually prior to February 1. The Board of Governors shall have custody of the money and distribute annually to the recognized statewide community college student organization by April 15 annually, provided that the student organization shall satisfy specified conditions as follows: (1) establish itself as a legal entity type that is registered with the California Secretary of State; (2) demonstrate compliance with all applicable state and federal laws and reporting requirements; (3) exercise prudent fiscal management by establishing generally accepted accounting controls and procedures; (4) complete on an annual basis an independent financial audit, the results of which shall be provided to the Board for review each year and serve as a condition for further funding provided that the results of the annual audit identify no significant audit findings; however in no event shall funds be withheld without the student organization having the ability to address and correct any identified concerns, errors or deficiencies contained in the annual audit; and (5) meet its obligations and address the goals identified in subdivision (c) . (e) Meetings of the statewide community college student organization shall be open to the public and adhere to Government Code section 54950 et. seq. and Government Code section 6250 et. seq." d) On page 4, between lines 28 and 29, insert new subdivisions (h) and (i): (h) Any costs, incurred by the Chancellor's office to implement subdivisions (c) and (d) AB 1358 Page 7 shall be reimbursed by the statewide community college student organization. (i) In the event no organization that qualifies for funding in accordance with this section is recognized by the Board of Governors, funds collected pursuant to this section shall be held by the Chancellor's office until such time as a qualifying organization is recognized, or returned to the source of funds. e) Two technical changes as follows: On page 3, lines 18 and 19, strike "an independent" and insert: a On page 3, line 13, strike "associations" and insert: organizations 1) Student Representative Fee . According to the 2012 California Community Colleges Chancellor's Office (CCCCO) Student Fee Handbook, a newly formed student government organization cannot order an election for the purpose of having the student body vote to establish a student representation fee (SRF) without having held three prior student body elections. In specifically requiring three previous student body elections prior to raising the student fee issue, the intent of the Legislature was to ensure meaningful participation in the student body election process. However, under certain circumstances, voting results from student body elections held under a previous and related student government structure may satisfy this requirement. The CCCCO finds that if a CCC district has multiple colleges and a student attends more than one college within the district, that he/she may be responsible for a SRF at each college he/she attends. SUPPORT Associated Students of El Camino College Associated Students of Pasadena City College Associated Students of Los Angeles Trade Technical College Associated Students of Modesto Junior College AB 1358 Page 8 California Community College Association of Student Trustees California Federation of Teachers California State Student Association California Teachers Association Coast Community College District Student Council Faculty Association of California Community Colleges San Jose City College Student Senate Santa Rosa Junior College Associated Students Student Senate for California Community Colleges Student Trustee of Napa Valley College University of California Student Association OPPOSITION Community College League of California