BILL NUMBER: SB 850 AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 4, 2014 AMENDED IN ASSEMBLY JUNE 26, 2014 AMENDED IN ASSEMBLY JUNE 16, 2014 AMENDED IN SENATE MAY 1, 2014 AMENDED IN SENATE APRIL 10, 2014 INTRODUCED BY Senator Block (Principal coauthor: Senator Hill) (Coauthors: Senators Anderson, Beall, Correa, Hueso, Lara, Roth, Torres, Vidak, and Wyland) (Coauthor:Assembly MemberChávezCoauthors: Assembly Members Chávez, Fong, Levine, and Wilk ) JANUARY 9, 2014 An act to add and repeal Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, relating to public postsecondary education. LEGISLATIVE COUNSEL'S DIGEST SB 850, as amended, Block. Public postsecondary education: community college districts: baccalaureate degree pilot program. Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law requires the board of governors to appoint a chief executive officer, to be known as the Chancellor of the California Community Colleges. Existing law establishes community college districts, administered by governing boards, throughout the state, and authorizes these districts to provide instruction to students at the community college campuses maintained by the districts. Existing law requires community colleges to offer instruction through, but not beyond, the 2nd year of college and authorizes community colleges to grant associate degrees in arts and science. This bill would, commencing January 1, 2015, authorize the board of governors, in consultation with the California State University and the University of California, to establish a statewide baccalaureate degree pilot program at not more than 15 community college districts, with one baccalaureate degree program each, to be determined by the chancellor and approved by the board of governors. The bill would prohibit each participating district from offering more than one baccalaureate degree program within the district, as specified. The bill would require a district baccalaureate degree pilot program to commence by the beginning of the 2017-18 academic year, and would require a student participating in a baccalaureate degree pilot program to complete his or her degree by the end of the 2022-23 academic year. The bill would require participating community college districts to meet specified requirements, including, but not limited to, offering baccalaureate degree programs and program curricula not offered by the California State University or the University of California, and in subject areas with unmet workforce needs, as specified. This bill would also require the governing board of a participating community college district to submit certain items for review by the chancellor and approval by the board of governors, including, among other things, the administrative plan for the baccalaureate degree pilot program and documentation of consultation with the California State University and the University of California. The bill would provide that the Department of Finance and the Legislative Analyst's Office shall jointly conduct both a statewide interim evaluation and a statewide final evaluation of the statewide baccalaureate degree pilot program implemented under this article, as specified, and to report the results of the interim and final evaluations in writing, to the Legislature and the Governor on or before July 1, 2018, and July 1, 2022, respectively. The bill would provide that on or before March 31, 2015, the board of governors shall develop, and adopt by regulation, a funding model for the support of the statewide baccalaureate degree pilot program, as specified. This bill would make these provisions inoperative on July 1, 2023, and would repeal the provisions on January 1, 2024. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) California needs to produce one million more baccalaureate degrees than the state currently produces to remain economically competitive in the coming decades. (b) The 21st century workplace increasingly demands a higher level of education in applied fields. (c) There is demand for education beyond the associate degree level in specific academic disciplines that is not currently being met by California's four-year public institutions. (d) Community colleges can help fill the gaps in our higher education system by granting baccalaureate degrees in a limited number of areas in order to meet a growing demand for a skilled workforce. (e) These baccalaureate programs will be limited and will not in any way detract from the community colleges' traditional mission to advance California's economic growth and global competitiveness through education, training, and services that contribute to continuous workforce improvement, nor will these programs unnecessarily duplicate similar programs offered by nearby public four-year institutions. (f) Community colleges can provide a quality baccalaureate education to their students, enabling place-bound local students and military veterans the opportunity to earn the baccalaureate degree needed for new job opportunities and promotion. (g) Twenty-one other states, from Florida to Hawaii, already allow their community colleges to offer baccalaureate degrees. California is one of the most innovative states in the nation, and the California Community Colleges will use that same innovative spirit to produce more professionals in health, biotechnology, public safety, and other needed fields. SEC. 2. Article 3 (commencing with Section 78040) is added to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, to read: Article 3. Baccalaureate Degree Pilot Program 78040. For purposes of this article, "district" means any community college district identified by the Chancellor of the California Community Colleges as participating in the statewide baccalaureate degree pilot program. Each participating district may establish one baccalaureate degree pilot program pursuant to Section 78041. 78041. Notwithstanding Section 66010.4, and commencing January 1, 2015, the Board of Governors of the California Community Colleges, in consultation with the California State University and the University of California, may authorize the establishment of district baccalaureate degree pilot programs that meet all of the eligibility requirements set forth in Section 78042. A district pilot program established pursuant to this article shall commence no later than the 2017-18 academic year. A student participating in a baccalaureate degree pilot program shall complete his or her degree by the end of the 2022-23 academic year. For purposes of this section, a pilot program commences when the first class of students begins the program. The statewide baccalaureate degree pilot program shall consist of a maximum of 15 districts, with one baccalaureate degree program each, to be determined by the Chancellor of the California Community Colleges and approved by the Board of Governors of the California Community Colleges. 78042. (a) A district shall seek approval to offer a baccalaureate degree program through the appropriate accreditation body. (b) When seeking approval from the Board of Governors of the California Community Colleges, a district shall maintain the primary mission of the California Community Colleges specified in paragraph (3) of subdivision (a) of Section 66010.4. The district, as part of the baccalaureate degree pilot program, shall have the additional mission to provide high-quality undergraduate education at an affordable price for students and the state. (c) As a condition of eligibility for consideration to participate in the statewide baccalaureate degree pilot program, a district shall have a written policy that requires all potential students who wish to apply for a Board of Governors Fee Waiver pursuant to Section 76300 to complete and submit either a Free Application for Federal Student Aid or a California Dream Act application in lieu of completing the Board of Governors Fee Waiver application. (d) A district shall not offer more than one baccalaureate degree program, as determined by the governing board of the district and approved by the Board of Governors of the California Community Colleges, and subject to the following limitations: (1) A district shall identify and document unmet workforce needs in the subject area of the baccalaureate degree to be offered and offer a baccalaureate degree at a campus in a subject area with unmet workforce needs in the local community or region of the district. (2) A baccalaureate degree pilot program shall not offer a baccalaureate degree program or program curricula already offered by the California State University or the University of California. (3) A district shall have the expertise, resources, and student interest to offer a quality baccalaureate degree in the chosen field of study. (4) A district shall not offer more than one baccalaureate degree program within the district, which shall be limited to one campus within the district. (5) A district shall notify a student who applies to the district' s baccalaureate degree pilot program that the student is required to complete his or her baccalaureate degree by the end of the 2022-23 academic year, as specified in Section 78041. (e) A district shall maintain separate records for students who are enrolled in courses classified in the upper division and lower division of a baccalaureate program. A student shall be reported as a community college student for enrollment in a lower division course and as a baccalaureate degree program student for enrollment in an upper division course. (f) A governing board of a district seeking authorization to offer a baccalaureate degree pilot program shall submit all of the following for review by the Chancellor of the California Community Colleges and approval by the Board of Governors of the California Community Colleges: (1) Documentation of the district's written policy required by subdivision (c). (2) The administrative plan for the baccalaureate degree pilot program, including, but not limited to, the governing board of the district's funding plan for its specific district. (3) A description of the baccalaureate degree pilot program's curriculum, faculty, and facilities. (4) The enrollment projections for the baccalaureate degree pilot program. (5) Documentation regarding unmet workforce needs specifically related to the proposed baccalaureate degree pilot program, and a written statement supporting the necessity of a four-year degree for that program. (6) Documentation of consultation with the California State University and the University of California regarding collaborative approaches to meeting regional workforce needs. (g) (1) On or before March 31, 2015, the Board of Governors of the California Community Colleges shall develop, and adopt by regulation, a funding model for the support of the statewide baccalaureate degree pilot program that is based on a calculation of the number of full-time equivalent students enrolled in all district pilot programs. (2) Funding for each full-time equivalent student shall be at a marginal cost calculation, as determined by the Board of Governors of the California Community Colleges, that shall not exceed theCalifornia State University'scommunity college credit instruction marginal cost calculation for a full-time equivalentstudent.student, as determined pursuant to paragraph (2) of subdivision (d) of Section 84750.5. (3) A student in a baccalaureate degree pilot program authorized by this article shall not be charged fees higher than the mandatory systemwide fees charged for baccalaureate degree programs at the California State University. (4) Fees forupper divisioncoursework in a baccalaureate degree pilot program shall beset and approved by the Legislature in a manner consistent with the setting of fees for lower division coursework at the California Community Colleges. Fees for lower division coursework in a baccalaureate degree pilot program shall not exceed the fees for other lower division coursework offered by the California Community Colleges.consistent with Article 1 (commencing with Section 76300) of Chapter 2 of Part 47. (5) A district shall, in addition to the fees charged pursuant to paragraph (4), charge a fee for upper division coursework in a baccalaureate degree pilot program of eighty-four dollars ($84) per unit. (h) (1) The Department of Finance and the Legislative Analyst's Office shall jointly conduct both an interim and a final statewide evaluation of the statewide baccalaureate degree pilot program implemented pursuant to this article. (2) The results of the interim evaluation shall be reported as a progress report, in writing, to the Legislature and the Governor on or before July 1, 2018. The interim evaluation shall include, but is not limited to, all of the following: (A) How many, and which specific, districts applied for a baccalaureate degree pilot program, and the baccalaureate degree pilot programs they applied for. (B) Which potential four-year baccalaureate degrees were denied and whywerethey were denied. (C) Baccalaureate degree pilot program costs and the funding sources that were used to finance these programs. (D) Current trends in workforce demands that require four-year degrees for career technical education-related fields. (E) Current completion rates, if available, for each cohort of students participating in a baccalaureate degree pilot program. (F) Information on the impact of baccalaureate degree pilot program on underserved and underprepared students.(F)(G) Recommendations on whether and how the statewide baccalaureate degree pilot program can or should be extended and expanded. (3) The results of the final evaluation shall be reported, in writing, to the Legislature and the Governor on or before July 1, 2022. The final evaluation shall include, but is not limited to, all of the following: (A) The number of new district baccalaureate degree pilot programs implemented, including information identifying the number of new programs, applicants, admissions, enrollments, and degree recipients. (B) The extent to which the baccalaureate degree pilot programs established under this article fulfill identified workforce needs for new baccalaureate degree programs, including statewide supply and demand data that considers capacity at the California State University, the University of California, and in California's independent colleges and universities. (C) Information on the place of employment of students and the subsequent job placement of graduates. (D) Baccalaureate degree program costs and the funding sources that were used to finance these programs, including a calculation of cost per degree awarded. (E) The costs of the baccalaureate degree programs to students, the amount of financial aid offered, and student debt levels of graduates of the programs. (F) Time-to-degree rates and completion rates for the baccalaureate degree pilot programs. (G) The extent to which the programs established under this article are in compliance with the requirements of this article. (H) Information on the impact of baccalaureate degree pilot program on underserved and underprepared students.(H)(I) Recommendations on whether and how the statewide baccalaureate degree pilot program can or should be extended and expanded. (4) A district shall submit the information necessary to conduct the evaluations required by paragraph (1), as determined by the evaluators, to the Chancellor of the California Community Colleges, who shall provide the information to the evaluators upon request. (5) A report to be submitted pursuant to paragraph (2) or (3) shall be submitted in compliance with Section 9795 of the Government Code. 78043. This article shall become inoperative on July 1, 2023, and as of January 1, 2024, is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.