BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 440 (Padilla) - Student Transfer Achievement Reform Act
          
          Amended: April 25, 2013         Policy Vote: Education 9-0
          Urgency: No                     Mandate: Yes
          Hearing Date: May 13, 2013      Consultant: Jacqueline  
          Wong-Hernandez
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 440 expands the provisions of the Student  
          Transfer Achievement Reform Act to require that the California  
          Community Colleges (CCC) create associate transfer degrees in  
          every major, and in areas of emphasis within majors before  
          academic year 2014-15 and 2016-2017, respectively, and to  
          require that the California State University (CSU) accept these  
          degrees, and develop an admissions redirection process for  
          students who complete these degrees but are denied admission to  
          the CSU campus to which they have applied. This bill also  
          requires the CCC and the CSU to establish a student-centered  
          communication and marketing strategy to increase the visibility  
          of the associate degree for transfer pathway, as specified. 

          Fiscal Impact: 
              Associate degree for transfer: Potentially substantial  
              reimbursable mandate; one-time costs of $700,000 - $1  
              million to develop associate degrees for transfer for every  
              major that has a Transfer Model Curriculum (TMC) and,  
              subsequently, for every major and area of emphasis. 
              Communication/Marketing strategy: Minor costs to develop  
              the strategy, and substantial cost pressure to implement the  
              strategy; a marketing campaign as described in this bill is  
              likely to cost in excess of $1 million annually.
              CSU redirection process: No new costs; the CSU has recently  
              developed a redirection process.

          Background: Existing law requires a CCC district to develop and  
          grant a transfer associate degree that deems the student  
          eligible for transfer into the CSU, when the student meets  
          specified course requirements. (Education Code § 66746)

          Existing law also requires the CSU to guarantee admission with  








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          junior status to any CCC student who meets these requirements,  
          but provides that the student is not guaranteed admission for  
          specific majors or campuses. However, the CSU is required to  
          grant a student priority admission to his or her local CSU  
          campus and to a program or major that is similar to his or her  
          CCC major or area of emphasis, as determined by the CSU campus  
          to which the student is admitted. Students that utilize the  
          associate transfer degree process are required to receive  
          priority over all other CCC transfer students, except for CCC  
          students who have entered into a transfer agreement between a  
          CCC and the CSU prior to the fall term of the 2012-13 academic  
          year. (EC § 66747)

          In an effort to address concerns about the need to ensure a  
          transparent and more navigable transfer process between the CCC  
          and the CSU, SB 1440 (Padilla) Ch. 428/2010 was enacted. This  
          legislation required CCCs to create two-year, 60-unit associate  
          degrees for transfer that are fully transferable to CSU. These  
          degrees require completion of (1) a minimum of 18 units in a  
          major or area of emphasis, as determined by each CCC, and (2) an  
          approved set of general education requirements. Students who  
          earn such a degree are automatically eligible to transfer to the  
          CSU system as an upper-division student in a bachelor's degree  
          program. Though these students are not guaranteed admission to a  
          particular CSU campus or into a particular degree program, SB  
          1440 gives them priority admission to a CSU program that is  
          "similar" to the student's CCC major or area of emphasis, as  
          determined by the CSU campus to which the student is admitted.  
          Once admitted, SB 1440 students need only complete two  
          additional years (an additional 60 units) of coursework to earn  
          a bachelor's degree. 

          SB 1440 also required that the Legislative Analyst's Office  
          (LAO) provide a status report to the Legislature on the  
          segments' progress in implementing the bill's provisions. In May  
          2012, the LAO issued Reforming the State's Transfer Process: A  
          Progress Report on Senate Bill SB 1440.  According to the LAO,  
          an average of just four associate degrees for transfer had been  
          developed per CCC. In addition, a number of CCCs had expressed  
          reluctance to create more than a handful of such degrees despite  
          the CCC Chancellor's Office goal that, by 2014, each CCC would  
          have a TMC-aligned associate degree for transfer in every major  
          it offers. The LAO also reported that CSU campuses and academic  
          programs vary significantly in terms of accepting the associate  








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          transfer degrees for their bachelor's degree programs. Although  
          the CSU Chancellor's Office had set a goal for each CSU campus  
          to offer at least one similar degree for each TMC-aligned  
          associate degree for transfer, only six CSU campuses had  
          achieved this goal. According to the CCC, as of April 2013, 616  
          associate degrees for transfer are being offered system wide,  
          representing 37% of the system wide goal.  

          Proposed Law: SB 440 requires that, prior to the 2014-15  
          academic year, the CCC create an associate degree for transfer  
          in every major that has a TMC. It also requires, prior to the  
          2016-17 academic year, that the CCC create an associate degree  
          for transfer in areas of emphasis for disciplines including, but  
          not necessarily limited to, all of the following: applied  
          sciences, formal sciences, humanities, natural sciences, and  
          social sciences. This bill requires that the CSU accept  
          TMC-aligned associate degrees for transfer in each of the CSU  
          degree options within a major field, and to develop an  
          admissions redirection process for students admitted under the  
          Student Transfer Achievement Reform Act (STAR) program, but  
          denied acceptance at the campuses to which they have applied,  
          and requires that this process be aligned with the guarantee of  
          admission into the CSU system under the STAR program. This bill  
          also requires the CCC and the CSU, in consultation with  
          specified entities, to develop a student centered marketing  
          strategy, as specified.

          Staff Comments: This bill requires that, prior to the 2014-15  
          academic year, the CCC create an associate degree for transfer  
          in every major that has a TMC, and that prior to the 2016-17  
          academic year, the CCC create and utilize an associate degree  
          for transfer in areas of emphasis for disciplines. The CCC  
          Chancellor's Office estimates that it could cost up to $1  
          million, to create the associate degrees for transfer and to  
          implement them at each campus. These requirements are also  
          likely to constitute a new reimbursable mandate on CCCs.

          This bill requires the CSU to develop an admissions redirection  
          process for students admitted under the STAR program, but denied  
          acceptance at all the campuses to which they have applied. The  
          CSU indicated that it has recently completed an admissions  
          redirection process for these students.

          This bill also requires the CCC and the CSU, in consultation  








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          with specified entities, to develop a student-centered marketing  
          strategy to increase the visibility of the associate degree for  
          transfer pathway that includes outreach to high schools,  
          posters, banners, and marquees, radio advertisements, outreach  
          to students considering CSU attendance, in CCC course catalogs,  
          and information on campus websites and on the  
          CaliforniaColleges.edu website. While the bill technically only  
          requires that a strategy be "developed," it is clear that the  
          intention is to implement the communication and marketing  
          strategy. Current CCC communication and marketing efforts to  
          promote the associate degrees for transfer have cost $1.1  
          million since October 2011, and have been paid for through  
          grants, donations, and state funds.

          A new marketing campaign is likely to drive substantial new  
          costs to the CCC and CSU; the party responsible for funding and  
          implementing the campaign is unclear. It is likely that  
          developing the marketing strategy will create cost pressure for  
          the Legislature to provide additional funding for  
          implementation. The "I Can Afford College" marketing campaign,  
          which involves similar tactics to those named in the bill, has  
          cost the state $2.8 million annually.