BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       SB 520
          AUTHOR:        Steinberg
          AMENDED:       April 25, 2013
          FISCAL COMM:   Yes            HEARING DATE:  May 1, 2013
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           NOTE  :  This bill was previously heard by this committee on  
          April 24, 2013. Testimony was provided but no vote was  
          taken. The bill has been amended and the analysis has been  
          updated to reflect the amendments.
               
           SUBJECT  :  California Online Student Access Platform.
          
           SUMMARY  

          This bill requires the President of the University of  
          California (UC), the Chancellor of the California State  
          University (CSU), and the Chancellor of the California  
          Community Colleges (CCC), jointly with each of their  
          academic senates to develop and administer the California  
          Online Student Access Platform to facilitate appropriate  
          partnerships, including but not necessarily limited to,  
          intersegmental and intrasegmental partnerships developed,  
          as specified, and partnerships between online course  
          providers and faculty members of the three systems to  
          develop and deploy high-quality online options for  
          strategically selected lower division courses, as  
          specified, and provides that funding for this purpose be  
          required in the Budget Act.

           BACKGROUND  

          Current law requires the California Community Colleges, the  
          University of California, and the California State  
          University, with appropriate consultation with the Academic  
          Senates of the respective segments, to jointly develop,  
          maintain, and disseminate a common core curriculum in  
          general education courses for the purposes of transfer.  
          Current law also provides that any person who has  
          successfully completed the transfer core curriculum is  
          deemed to have completed all lower division general  




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          education requirements for the UC and the CSU. This  
          transfer core curriculum is commonly referred to as "IGETC"  
          - the Intersegmental General Education Transfer Curriculum.  

          (Education Code � 66721)

          Current law establishes the California Virtual Campus  
          (CVC), until January 1, 2014, and outlines the purposes  
          that it may pursue. Among other things, the CVC issues  
          grants and recipients may use the grants to lead efforts to  
          make online courses available to students across the state.  
           (EC � 78910.10)

           

          ANALYSIS
           
           This bill  :

          1)   Establishes the California Online Student Access  
               Platform and provides that it:

                    a)             Be developed and administered by  
                    the President of the University of California  
                    (UC), the Chancellor of the California State  
                    University (CSU), and the Chancellor of the  
                    California Community Colleges (CCC), jointly with  
                    each of their academic senates.

                    b)             Facilitate appropriate  
                    partnerships, including but not necessarily  
                    limited to intersegmental and intrasegmental  
                    partnerships developed pursuant to the provisions  
                    of SB 547 (Block) and partnerships between online  
                    course providers and faculty members of the UC,  
                    CSU, and CCC to develop and deploy high-quality  
                    online options for strategically selected lower  
                    division courses.

                    c)             Provide statewide facilitation of  
                    intersegmental and intrasegmental partnerships  
                    developed pursuant to the provisions of SB 547  
                    (Block) and appropriate partnerships between UC,  
                    CSU, and CCC faculty and online course technology  
                    providers, to offer transferable courses for  
                    credit.




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                    d)             Create a pool of up to 50 approved  
                    and transferable online credit courses through  
                    which students seeking to enroll may easily  
                    access those courses and related content.

                    e)             Provide a state-level faculty-led  
                    process that places the highest priority on  
                    educational quality through which online courses  
                    can be subjected to high-quality standards and  
                    review.

                    f)             Allow the state, the public,  
                    students, faculty, and other stakeholders to  
                    examine student success rates within the  
                    platform.

          2)   In order to accomplish the objectives outlined in (1):

                    a)             Requires the President of the UC,  
                    the Chancellor of the CSU, and the Chancellor of  
                    the CCC, jointly with each of their academic  
                    senates to:

                           i)                  Develop a list of the  
                         50 most impacted lower division courses at  
                         each of the segments that are deemed  
                         necessary for program completion, deemed  
                         satisfactory for meeting general education  
                         requirements, or in areas defined as high-

                         demand transferable lower division courses  
                         under Intersegmental General Education  
                         Transfer Curriculum (IGETC).

                           ii)     For any courses that meet the  
                         criteria in (i), facilitate partnerships  
                         including, but not necessarily limited to,  
                         intersegmental and intrasegmental  
                         partnerships developed pursuant to the  
                         provisions of SB 547 (Block) and  
                         partnerships between online course  
                         technology providers and University of  
                         California (UC), California State University  
                         (CSU), and California Community Colleges  
                         (CCC) faculty with the goal of significantly  




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                         increasing online course options for  
                         students for fall term of the 2014-15  
                         academic year.

                           iii)    Create and administer a  
                         standardized review and approval process for  
                         online courses developed per (ii), and  
                         requires that the review of online courses  
                         consider, at a minimum, the extent to which  
                         the course provides instructional support,  
                         retention and success services, student and  
                         instructor interaction, proctored student  
                         assessments and secure examination  
                         processes, pre-enrollment assessment of  
                         student suitability, the use of texts from  
                         the California Digital Open Source Library,  
                         and the inclusion of adaptive learning  
                         technologies.

                    b)             Specifies that the courses  
                    developed pursuant to (2) are for matriculated  
                    students at the UC, CSU, CCC, or for California  
                    high school students.

                    c)             Prohibits the approval of any  
                    course for this purpose unless it is associated  
                    with a faculty sponsor who is a member of the  
                    faculty at the UC, CSU, or CCC, and is approved  
                    by the academic senate of the appropriate  
                    segment.

                    d)             Provides that a course developed  
                    pursuant to these processes be deemed to meet the  
                    lower division transfer and degree requirements  
                    for the UC, CSU, and the CCC. 

                    e)             Requires the regular solicitation  
                    and consideration of advice and guidance on  
                    implementation of the platform from the statewide  
                    student associations of each segment.

                    f)             Requires the collection, review  
                    and public availability of data and information  
                    related to student success including enrollment,  
                    retention and completion.





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                    g)             Requires utilization of the state  
                    common course numbering system for approved  
                    courses.

                    h)             Requires the placement of approved  
                    courses in the California Virtual Campus.

                    i)             Requires that matriculated  
                    students at the University of California (UC),  
                    California State University (CSU), California  
                    Community Colleges (CCC) or California high  
                    school students who complete these courses and  
                    achieve a passing score on a related exam be  
                    granted credit for an equivalent course at the  
                    UC, CSU or CCC as applicable.

          3)   Requires that funding for implementation of these  
               provisions be provided in the Annual Budget Act. 

          4)   Declares the Legislature's intent that receipt of  
               funding for implementing these provisions by the UC is  
               contingent upon its compliance with the bill's  
               requirements. 

          5)   Prohibits the use of public funds to fund any private  
               aspect of a partnership developed pursuant to the  
               bill's provisions between UC, CSU, or CCC faculty and  
               an online course technology provider.

          6)   Requires that the state retain all appropriate rights  
               to intellectual property it creates or develops in the  
               implementation of the bill's provisions.

          7)   Extends the sunset on the California Virtual Campus  
               until January 1, 2017.

           STAFF COMMENTS  

           1)   In summary  .  This bill would provide public funding to  
               faculty and the administration at the UC, CSU, and CCC  
               and require the use of that funding to develop and  
               administer the California Online Student Access  
               Platform to facilitate the development of  
               partnerships, including those developed under the  
               provisions of SB 547 (Block), (which was heard and  
               passed by this committee on April 24, 2013), to  




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               develop up to 50 courses that would be offered to  
               matriculated students at the public segments and to  
               California high school students through the California  
               Virtual Campus by the fall of 2014 for purposes of  
               meeting lower division general education degree and  
               transfer requirements. 

               Recent amendments prohibit the use of public funds to  
               fund any private aspect of a partnership developed and  
               requires that the state retain all appropriate rights  
               to intellectual property it creates or develops in  
               implementing the bill's provisions 

               The committee may wish to consider the following  
               questions:

                a)         This bill requires facilitation of  
                     "appropriate" partnerships with private online  
                     providers and requires that the state retain all  
                     "appropriate" rights to intellectual property it  
                     creates or develops, but does not outline what  
                     appropriate means. What would be appropriate?  
                     What would be inappropriate? 

                b)         Are matriculated students who are already  
                     paying fees and tuition to our public  
                     universities, and whose parents provide the tax  
                     revenue for general fund resources provided in  
                     the budget, expected to "pay again" for a class  
                     that was developed with/by public employees  
                     (faculty)? 

                c)         Would the private online provider be able  
                     to offer courses to individuals other than  
                     matriculated students and California high school  
                     students and/or profit from the courses  
                     developed with public funding?

                d)         Is it prudent to require the use of public  
                     dollars to facilitate statewide partnerships  
                     with private entities in a field that is new and  
                     changing? 

                e)         What is envisioned by a "platform?"  Is  
                     the bill directing the creation of a technology  
                     infrastructure (hardware and software)?  Is it  




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                     an internally developed course management  
                     system? 

           2)   How does this bill work with SB 547  ?  According to the  
               author, it is the intent that the California Online  
               Student Access Platform created by this bill  
               facilitate the intersegmental and intrasegmental  
               partnership developed under the provisions of SB 547,  
               as well as the partnerships between private providers  
               and university faculty. As currently drafted, however,  
               the bill could be interpreted to duplicate the  
               provisions of SB 547.  

               SB 547 does not preclude the academic senates from  
               endorsing partnerships with education or technology  
               vendors as a means of developing online coursework to  
               meet its requirements. However SB 520 outlines a  
               different governance structure and provides a more  
               developed framework and criteria and guidelines for  
               online course approval developed via partnerships with  
               private technology providers. 

               Both bills rely on Budget Act funding to implement  
               their provisions, presumably as a means of directing  
               the use of funding proposed by the Governor for  
               expanding delivery of courses through the use of  
               technology. 

               The authors may wish to continue working together to  
               ensure that their efforts are complementary.  

           3)   Reference to nonexistent provisions  .  As currently  
               drafted, this bill refers to partnerships developed  
               pursuant to provisions which are proposed to be  
               established by SB 547 (Block).  This reference will  
               only be relevant if 
               SB 547 is enacted. If it is the desire to retain the  
               reference to the provisions of SB 547, the author may  
               wish to amend the bill to include language which  
               clarifies that these references are contingent upon  
               the enactment of SB 547.

           4)   Why is it necessary to require the facilitation of  
               partnerships with private online course providers  ?  
               This bill requires the public segments of higher  
               education to facilitate partnerships with private  




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               online course providers to increase enrollment  
               opportunities in lower division transfer and degree  
               courses. 

               Several examples exist of how these types of  
               partnerships are already voluntarily happening at  
               public higher education institutions in California.  
               Udacity, a private educational organization funded  
               through venture capital, offers a select number of  
               online courses for college credit in partnership with  
               San Jose State University. San Jose State also  
               recently announced an expansion of its collaboration  
               with EdX, a not-for-profit online learning enterprise  
               founded by Harvard and MIT, to serve up to 11 more  
               California State University (CSU) campuses through a  
               collaboratively established Center for Excellence in  
               Adaptive and Blended Learning at the campus. UC  
               Berkeley also participates with EdX to offer online  
               courses and currently offers six noncredit Massive  
               Open Online Courses (MOOCs), but reports that it also  
               offers nearly 30 undergraduate online courses for  
               credit. 
                
                Much of the publicity and enrollment in MOOCs began in  
               the fall of 2011 with the offering of three such  
               courses at Stanford University. MOOCs are a relatively  
               new phenomenon and the features of, and conditions  
               surrounding the use of these courses, platforms, and  
               related contractual issues are still evolving. 

               According to the author, it is the intent to go beyond  
               the existing campus and individual faculty efforts to  
               implement a state-level, faculty led process and to  
               focus course development on impacted lower division  
               courses at all three public segments.

           5)   What else is already being done  ?  All three segments  
               currently make online courses available to students  
               for degree credit. According to a 2010 Legislative  
               Analyst Office report, Using Distance Education to  
               Increase College Access and Efficiency, distance  
               education courses (generally defined as using  
               internet, television or other modes of technology to  
               deliver instruction) are offered at virtually all 112  
               California Community Colleges and some report serving  
               over 40 percent of their students via the distance  




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               education medium. The CSU reports that it offers 84  
               undergraduate and master's programs online, over  
               13,000 full online and hybrid courses, and 150  
               professional development certificate programs online.  
               In addition, individual faculty and institutions  
               throughout the public postsecondary education system  
               have voluntarily partnered with private online  
               providers to develop courses, some of which are  
               available for credit. 
                
                If online courses are a viable means for increasing  
               access would it be more reasonable to first leverage  
               these existing efforts before facilitating the use of  
               outside, non-public entities to meet student needs?

           6)   To what end  ?  Online education is one of many  
               strategies possible for successfully meeting the  
               increasing demand for higher education opportunity in  
               California.  But is online education the objective or  
               is it simply a tool?  Recent policy discussion around  
               our public institutions has acknowledged that while  
               California has traditionally been committed to access,  
               we have not always ensured student success.  

               According to a study by the Columbia University  
               College Research Center, "Adaptability Online  
               Learning: Differences Across Types of Students and  
               Academic Subject Areas", all students who take more  
               online courses, no matter the demographic, are less  
               likely to attain a degree, and some groups, including  
               black, male, younger and lower grade-point-average  
               students are particularly susceptible to this pattern.  
               The study was based on a dataset of nearly 500,000  
               courses taken by over 40,000 community and technical  
               college students in Washington State in fall 2004.  
               According to the researchers, their findings support  
               the notion that students are not homogenous in their  
               adaptability to the online delivery format and may  
               have substantially different outcomes for online  
               learning, and that these patterns suggest that  
               performance gaps between key demographic groups  
               already observed in face-to-face settings are  
               exacerbated in online courses.

               This bill requires the facilitation of the use of  
               private online providers to increase enrollment  




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               opportunities in courses that may move students toward  
               their degree objectives.  While online courses in  
               general have shown mixed results as a tool for student  
               success, private online providers have had even less  
               time to demonstrate that the courses they offer are a  
               viable means for increasing persistence, completion  
               and graduation rates.  

               Should partnerships with private online providers be  
               facilitated without sufficient evidence that this tool  
               not only increases enrollment opportunities, but  
               completion as well?  What authority or leverage would  
               the Legislature have over private providers that enter  
               into partnerships if these courses do not yield the  
               successful outcomes anticipated?

           7)   California Virtual Campus  .   The California Virtual  
               Campus (CVC) began under the name the California  
               Virtual University in 1997 as an intersegmental effort  
               to establish and maintain a catalog of online courses  
               and to help faculty convert traditional courses into  
               an online format.  The name changed to the CVC in 1999  
               when stewardship of the intersegmental effort passed  
               to the California Community Colleges.  The CVC was  
               annually recognized in the annual Budget Act where it  
               was provided funding for the support of distance  
               education centers and for a grant program administered  
               by the Chancellor's office. Legislation placing the  
               California Virtual Campus (CVC) in statute and  
               outlining its purpose was enacted in 2008. Funded by a  
               grant from the California Community Colleges  
               Chancellor's Office, the Butte-Glenn Community College  
               currently administers the CVC.  The CVC does not  
               confer degrees or certificates, but provides links to  
               California campuses offering technology mediated  
               distance learning degrees and programs.  According to  
               the CVC 
               there are more than 16,000 courses and 1,200 degree  
          programs offered 
               at 167 accredited institutions of higher education in  
               the CVC Distance Education Catalog. 

               This bill extends the sunset date for the CVC to 2017.  


           8)   Related budget proposal  .  The Governor's 2013-14  




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               proposed budget includes funding to expand the  
               delivery of higher education courses through the use  
                                                                                              of technology.  The proposal includes a $16.9 million  
               augmentation to the community colleges and a set aside  
               of $10 million each in the University of California  
               and California State University budget to increase the  
               number of online courses available to matriculated  
               undergraduates, specifically those courses that have  
               the highest demand, fill quickly, and are  
               prerequisites for many different degrees.  The  
               proposal also stipulates that courses must be aimed at  
               advanced students who are likely to succeed in these  
               types of courses.

               For the community colleges, the Governor specifically  
               articulates a goal of 250 new courses, the creation of  
               a "virtual campus" to increase statewide student  
               access to these courses, and the creation of a single,  
               common, and centralized delivery and support  
               infrastructure for all courses delivered through  
               technology and for all community colleges. The  
               Governor also requires the expansion of options for  
               students to access instruction in other environments  
               and earn college credit for demonstrated knowledge and  
               skills through credit by exam.

           9)   Other similar legislation  . 

               SB 547 (Block) requires the academic senates of the  
               University of California (UC), California State  
               University (CSU), and the California Community  
               Colleges (CCC) to jointly develop and identify online  
               courses available for enrollment by matriculated  
               students at each of the three segments by fall of  
               2014, as specified, requires that the Board of  
               Governors of the CCC create a portal for enrolling in  
               these courses through the California Virtual Campus,  
               and requires that funding for implementation of these  
               provisions be provided in the Annual Budget Act. SB  
               547 was heard and passed by this committee on April  
               24, 2013 by a vote of 9-0.

               AB 386 (Levine) declares the Legislature's intent  
               that, by 2015-16, students  enrolled at a CSU campus  
               be provided an opportunity to enroll in online courses  
               available at other CSU campuses, authorizes any CSU  




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               student  who meets specified requirements to enroll in  
               these courses, without formal admission, and without  
               payment of additional tuition or fees, and requires  
               the trustees, to establish an easily accessible online  
               database of online credit courses that fulfill  
               graduation, general education and major requirements  
               before January 1, 2015.  AB 386 is currently awaiting  
               action in the Assembly Higher Education Committee. 

               AB 387 (Levine) requires the trustees to establish a  
               series of uniform definitions for online education,  
               for purposes of measuring and reporting performance  
               data to the Legislature, on or before January 1, 2015,  
               and further requires that not less than 10% of new  
               course offerings be online courses, as defined.   AB  
               387 is currently awaiting action in the Assembly  
               Higher Education Committee. 

               AB 895 (Redon) establishes the California  
               Postsecondary Online Education Task Force to evaluate  
               and identify best practices for the implementation of  
               online education in California and to report  
               information and recommendations for innovative online  
               education methods every two years beginning January 1,  
               2016. 

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