BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 850
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          Date of Hearing:   June 24, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                     SB 850 (Block) - As Amended:  June 16, 2014

           SENATE VOTE  :   34-0
           
          SUBJECT  :   Public postsecondary education: community college  
          districts: baccalaureate degree pilot program.

           SUMMARY  :   Authorizes the California Community Colleges (CCC)  
          Board of Governors (BOG), in consultation with the California  
          State University (CSU) and the University of California (UC), to  
          establish a statewide baccalaureate degree pilot program at not  
          more than 15 community college districts, as specified.   
          Specifically,  this bill  :   

          1)Authorizes the BOG, commencing on January 1, 2015, in  
            consultation with the CSU and the UC, to establish a statewide  
            baccalaureate degree pilot program at not more than 15 CCC  
            districts with one baccalaureate degree program each, to be  
            determined by the CCC Chancellor and approved by the BOG; and,  
            specifies that the pilot shall commence no later than the  
            2017-18 Academic Year (AY) and that a participating student  
            shall complete his or her degree by the end of the 2022-23 AY.

          2)Specifies that a CCC district shall seek approval to offer a  
            baccalaureate degree program through the appropriate  
            accreditation body; and when seeking approval from the BOG, a  
            district must maintain the mission of the CCC and, as part of  
            the pilot program have the additional mission to provide  
            high-quality undergraduate education at an affordable price  
            for students and the state.

          3)Specifies that a CCC district shall not offer more than one  
            baccalaureate degree program, as determined by the governing  
            board of the district and approved by the BOG, and subject to  
            the following limitations:

             a)   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;








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             b)   A baccalaureate degree pilot program shall not offer a  
               baccalaureate degree program or program curricula already  
               offered by the CSU or the UC;

             c)   A district shall have the expertise, resources, and  
               student interest to offer a quality baccalaureate degree in  
               the chosen field of study;

             d)   A district shall not offer more than one baccalaureate  
               degree program within the district, which shall be limited  
               to one campus within the district; and, 

             e)   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 AY.


          4)Specifies that a district shall maintain separate records for  
            students who are enrolled in courses in the pilot program; and  
            that a student shall be reported as a CCC student for  
            enrollment in a lower division course and as a baccalaureate  
            degree program student for enrollment in an upper division  
            course.

          5)Requires 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 CCC Chancellor and approval  
            by the BOG:

             a)   The administrative plan for the baccalaureate degree  
               pilot program;

             b)   A description of the baccalaureate degree pilot  
               program's curriculum, faculty, and facilities;

             c)   The enrollment projections for the baccalaureate degree  
               pilot program;

             d)   Documentation regarding unmet workforce needs  
               specifically related to the proposed baccalaureate degree  
               pilot program; and,

             e)   Documentation of consultation with the CSU and the UC  








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               regarding collaborative approaches to meeting regional  
               workforce needs.

          6)Requires the BOG to develop, and adopt by regulation, a  
            funding model, for the support of the pilot program that is  
            based on a calculation of the number of full-time equivalent  
            students (FTES) enrolled in all district pilot programs.

          7)Specifies that funding for each FTES shall be at an agreed  
            upon marginal cost calculation that shall not exceed the CSU's  
            marginal cost calculation for a FTES; and that students in the  
            pilot program, shall not be charged fees higher than the  
            mandatory systemwide fees charged for baccalaureate degree  
            programs at the CSU.

          8)Stipulates that fees for upper division coursework in a  
            baccalaureate degree pilot program shall be set and approved  
            by the Legislature in a manner consistent with the setting of  
            fees for lower division coursework at the CCC; and fees for  
            lower division coursework in a baccalaureate degree pilot  
            program shall not exceed the fees for other lower division  
            coursework offered by the CCC.

          9)Requires the Department of Finance (DOF) and the Legislative  
            Analyst's Office (LAO) to jointly conduct a statewide  
            evaluation of the statewide baccalaureate degree pilot program  
            and issue a report of their findings to the Governor and the  
            Legislature, on or before July 1, 2021.  Specifies that the  
            evaluation shall consider 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 fulfill identified workforce needs for new  
               baccalaureate degree programs, including statewide supply  
               and demand data that considers capacity at the CSU, the UC,  
               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  








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               sources that were used to finance these programs, including  
               a calculation of cost per degree awarded; and, the costs of  
               the baccalaureate degree programs to students, the amount  
               of financial aid offered, and student debt levels of  
               graduates of the programs;

             e)   Time-to-degree rates and completion rates for the  
               baccalaureate degree pilot programs; and,

             f)   The extent to which the programs established under this  
               measure are in compliance with the requirements of this  
               measure.

          10)Requires a participating district to submit the information  
            necessary in order for the DOF and the LAO to conduct their  
            evaluation, as specified, to the CCC Chancellor, who shall  
            provide the information to the evaluators upon request.

          11)Sunsets the pilot program on January 1, 2024.
           
          EXISTING LAW  differentiates the missions and functions of public  
          and independent institutions of higher education.  Under these  
          provisions:

          1)The UC is authorized to provide undergraduate and graduate  
            instruction and has exclusive jurisdiction in public higher  
            education over graduate instruction in the professions of law,  
            medicine, dentistry and veterinary medicine.  The UC is also  
            the primary state-supported academic agency for research; 

          2)The primary mission of the CSU is required to offer  
            undergraduate and graduate instruction through the master's  
            degree.  The CSU is authorized to establish two-year programs  
            only when mutually agreed upon by the Trustees and the CCC  
            BOG.  The CSU is also authorized to jointly award the doctoral  
            degree with the UC and with one or more independent  
            institutions of higher education; 

          3)The independent institutions of higher education are required  
            to provide undergraduate and graduate instruction and research  
            in accordance with their respective missions; and, 

          4)The mission and function of the CCC is the offering of  
            academic and vocational instruction at the lower division  
            level and the CCC are authorized to grant the associate in  








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            arts and the associate in science degree.  The community  
            colleges are also required to offer remedial instruction,  
            English as a Second Language instruction, and adult noncredit  
            instruction, and support services which help students succeed  
            at the postsecondary level (Education Code § 66010.4).

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, the following cost factors are associated with this  
          measure:

          1)Statewide administration:  Significant one-time costs, likely  
            in the low hundreds of thousands of dollars, to develop  
            guidelines and create a baccalaureate degree pilot program,  
            and to select up to 15 CCC districts to participate.  Ongoing  
            administrative costs of approximately $350,000 for a 15 CCC  
            district pilot program.  Actual costs will depend on the  
            number of participating CCC districts, as well as the level of  
            guidance and oversight needed to ensure the program's success;

          2)Local implementation:  Significant local costs and potentially  
            significant revenue for CCC districts that elect to  
            participate, depending on the program structure and the type  
            of degree offered (relative to the expense of providing upper  
            division courses).  To the extent that students who  
            participate in the program would otherwise have attended a CSU  
            campus, the state cost for the student's enrollment would  
            likely be similar; to the extent that this promoted enrollment  
            for students who would otherwise not take additional college  
            coursework, there will be additional state costs for increased  
            enrollment; and,

          3)Evaluation:  Minor costs to the DOF and LAO to conduct a  
            statewide evaluation of the program, as specified.

           COMMENTS  :   Need for the bill  .  According to the author, the  
          state faces an urgent need to increase the number of  
          Californian's with four-year degrees by 2025, necessitating an  
          additional 60,000 baccalaureate degrees per year.  The author  
          contends that this bill seeks to find new methods for addressing  
          this skills gap by authorizing the offering of baccalaureate  
          degrees at California's community colleges.  According to the  
          author, this bill is patterned after the applied baccalaureate  
          degree model offered in community colleges of more than twenty  
          other states.









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           Baccalaureate Degree Study  .  In 2013, the CCC Chancellor  
          appointed a study group to review the various aspects of  
          bachelor degrees at community colleges.  The "Report from  
          California Community Colleges Baccalaureate Degree Study Group,"  
          acknowledges questions and reservations that community college  
          bachelor's degrees represent a further erosion of the Master  
          Plan, the potential for duplication of programs, and concerns  
          that broadening the CCC mission would diminish attention to  
          transfer, basic skills, and career technical education,  
          especially as the system moves towards restoring access levels  
          compromised by recent economic conditions.  The study group  
          recommended that the CCC Chancellor's Office (CCCCO) and the BOG  
          conduct necessary research and policy analysis related to  
          offering CCC baccalaureates including; a cost study, CCCCO  
          workload projections for related reviewing, approving and  
          reporting, and a definition of the types of baccalaureates  
          appropriate for the CCC.  The group also recommended that  
          further work proceed with ongoing dialog with the CSU and UC,  
          and that further study should consider the potential impact on  
          the current mission of the CCC as well as on existing programs  
          at local campuses. 

           Master Plan  .  Notwithstanding the differentiation of the mission  
          envisioned by the Master Plan and outlined in statute, the  
          Legislature has authorized the CSU to go beyond its original  
          mission to offer three doctoral degrees.  These include:

          1)Authority to offer the Ed.D, an applied doctorate in  
            education. 
          (EC § 66040 - § 66040.7).  Thirteen CSU campuses offer an Ed.D.  
            under this authority.

          2)Authority to offer the Doctor of Physical Therapy (DPT)  
            degree.  This degree was to focus on preparation of physical  
            therapists to provide health care services and required to be  
            consistent with meeting professional accreditation  
            requirements (EC § 66042 - § 66042.3).

          3)Authorization, until July 1, 2018, to offer a Doctor or  
            Nursing Practice (DNP) through a pilot program at three CSU  
            campuses.  This degree was to focus on the preparation of  
            clinical faculty, and was prohibited from replacing or  
            supplanting CSU master's degree nursing programs.  Enrollment  
            was capped at 90 FTES for all three campuses and enrollment of  
            new students is prohibited on or after July 1, 2018.  In fall  








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            2012, the CSU launched two programs, a joint program with CSU  
            Fresno and CSU San Jose, and a CSU Fullerton-Long Beach-Los  
            Angeles joint program. 

          These programs were all subject to California Postsecondary  
          Education Commission (CPEC) review, evaluation and  
          recommendation.  Fees were capped at the rate charged at the UC,  
          no additional funding was provided by the state, and these  
          programs were to be implemented without diminishing or reducing  
          enrollment in undergraduate programs.  Statewide evaluations of  
          the new programs were to be jointly conducted by the CSU, the  
          LAO and the DOF.

           Types of 4-year degrees envision  ?   This measure prohibits a  
          participating community college district to offer a  
          baccalaureate degree that is offered by a CSU or a UC; with that  
          in mind, the bill only allows for the awarding of what  
          translates to very specific 4-year degrees that are career  
          technical in nature.  According to several community college  
          districts interested in participating in the pilot, the  
          following is a brief list (not exhaustive) of the types of  
          4-year degrees that would be offered in the pilot:  a) dental  
          hygiene; b) industrial technology; c) allied health technology;  
          d) emergency medical technician; and e) data management for  
          health care.

           Committee considerations and amendments  .   BOG fee waiver  ?   
          Should participating students who currently qualify for a BOG  
          fee waiver be eligible to receive the BOG fee waiver for the  
          pilot program if they did not have their income verified when  
          submitting a BOG fee waiver form - which traditionally is the  
          case at community colleges?  Students would have a much better  
          opportunity to qualify for additional federal dollars and  
          potentially be able to afford the program if they completed the  
          Free Application for Federal Aid (FAFSA) in lieu of the BOG fee  
          waiver form.  Staff recommends that the bill be amended to  
          require as a condition of eligibility to be considered for  
          participation in the pilot, that community college districts  
          have a stated policy in place that potential students wishing to  
          receive the BOG fee waiver must complete and submit a FAFSA or  
          Cal Dream Act form.

           Start-up date  ?  According to a few community college districts  
          interested in participating in the pilot, they could implement  
          this program as early as fall 2015; the measure currently  








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          specifies that the BOG shall develop and adopt regulations  
          regarding various facets of the pilot and that the pilot program  
          shall commence no later than the 2017-18 AY.  If the measure is  
          chaptered and goes into effect on January 1, 2015; it is  
          uncertain as to the length of time the BOG will take before  
          developing and adopting regulations regarding the pilot.  Staff  
          recommends that the bill be amended to stipulate that on or  
          before March 31, 2015, the BOG shall develop and adopt  
          regulations as specified.

           Reporting requirements  ?  The measure requires the DOF and the  
          LAO to jointly conduct a statewide evaluation of the pilot  
          program and report to the Governor and the Legislature, on  
          before July 1, 2021, on a number of evaluation criteria, as  
          specified, including, but not limited to:  a) the extent to  
          which the pilot programs fulfill identified workforce needs for  
          new baccalaureate degree programs, including statewide supply  
          and demand data that considers capacity at the CSU, UC, and in  
          California's independent colleges and universities; b)  
          information on the place of employment of students and the  
          subsequent job placement of graduates; and, c) the extent to  
          which the programs established are in compliance with the  
          requirements of this measure.  

          If the pilot is implemented as early as fall 2015, then on or  
          before July 1, 2021, the DOF and the LAO should have enough data  
          to evaluate the merits of the pilot; however, if the pilot does  
          not officially start up until subsequent years, they may not  
          have enough data to evaluate the pilot and subsequently report  
          on the specified criteria.  Staff recommends that the bill be  
          amended to stipulate that the DOF and the LAO, on or before July  
          1, 2022, shall submit their final report to the Governor and the  
          Legislature.  Staff also recommends that the bill be amended to  
          stipulate that on or before July 1, 2018, the DOF and the LAO  
          shall issue a progress report of the pilot to the Governor and  
          the Legislature; the progress report shall include, but not be  
          limited to, all of the following:  a) how many community  
          colleges applied for the pilot; b) what were the potential  
          4-year degrees that were denied and why; c) baccalaureate degree  
          program costs and the funding sources that were used to finance  
          these programs; d) current trends in workforce demands requiring  
          4-year degrees for technical education related fields; e)  
          current completion rates for the first cohorts of participants;  
          and, f) recommendations on whether and how the pilot program can  
          be expanded.








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           Funding the pilot  ?  The measure stipulates that funding for each  
          FTES shall be an agreed upon marginal cost calculation that  
          shall not exceed the CSU's marginal cost calculation for FTES.   
          It is unclear who needs to agree to the marginal cost  
          calculation.  Staff recommends that the bill be amended to  
          specify that the BOG needs to agree to the marginal cost  
          calculation.

           Submission of materials for approval  ?  The measure stipulates  
          that a governing board of a community college district seeking  
          authorization to offer the pilot shall submit various  
          information for review by the CCC Chancellor, including, but not  
          limited to:  a) the proposed administrative plan for the pilot  
          program; and, b) documentation regarding unmet workforce needs  
          specifically related to the proposed pilot program.  

          Since the pilot will require a different funding model staff  
          recommends that the bill be amended to specify that the proposed  
          administrative plan shall include the governing board's funding  
          plan.  Additionally, since a governing board shall provide  
          documentation regarding unmet workforce needs, as it relates to  
          its proposed pilot, staff recommends that the bill be amended to  
          specify that the documentation specifically address why a 4-year  
          degree is necessary in the degree it brings forward for  
          approval.

          As stated in the "Master Plan" section of this analysis, the CSU  
          has been given authority to confer three different doctoral  
          degrees.  These degrees are very narrow in scope and at the time  
          had CPEC online and able to review and evaluate its programs.   
          In the absence of CPEC, the Committee may wish to determine what  
          structure is necessary to review, evaluate and recommend new  
          baccalaureate degree programs at the CCC.  Additionally, the  
          Committee may wish to consider whether or not there should be  
          provisions that ensure that funding for baccalaureate degree  
          programs does not occur at the expense of expansion of adult  
          education programs, basic skills, career technical education or  
          undergraduate transfer programs.
          
           Prior legislation .  AB 661 (Block) of 2011, which was moved to  
          the inactive file by the author on the Assembly Floor,  
          authorized the Grossmont-Cuyamaca and the San Mateo Community  
          College Districts to offer one baccalaureate degree pilot  
          program per campus.  








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          AB 2400 (Block) of 2010, which was held in this committee by  
          request of the author, authorized the San Diego,  
          Grossmont-Cuyamaca and San Mateo Community Colleges Districts to  
          establish baccalaureate degree pilot programs.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Legion, Department of California
          American Nurses Association\California
          AMVETS, Department of California
          Barton Health
          California Architects Board
          California Association of County Veterans Service Officer
          California Chamber of Commerce
          California Community Colleges Chancellor's Office
          California State Commanders Veterans Council
          California State University
          Citrus College
          City of South Lake Tahoe
          Coastline Community College
          College of the Canyons
          College of Marin
          Community College League of California
          Contra Costa Community College District
          Cupertino Chamber of Commerce
          Foothill-De Anza Community College District
          Gavilan Joint Community College District
          Golden West College
          Grossmont-Cuyamaca Community College District
          Heavenly Mountain Resort
          Imperial Valley College
          Kern Community College District
          Los Altos Chamber of Commerce
          Los Angeles Community College District
                                                       Mid-Peninsula Dental Society
          Milpitas Chamber of Commerce
          MiraCosta Community College District
          Morgan Hill Chamber of Commerce
          Mountain View Chamber of Commerce
          Napa Valley Community College District
          Oceanside Chamber of Commerce
          Pasadena Community College District








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          Peralta Community College District
          Rancho Santiago Community College District
          Respiratory Care Board of California
          San Bernardino Community College District
          San Diego City College
          San Diego Community College District
          San Diego Community College District, Continuing Education
          San Diego and Imperial Valley Counties Community Colleges  
          Association
          San Diego Regional Chamber of Commerce
          San Diego Unified School District
          San Jose-Evergreen Community College District
          San Jose Silicon Valley Chamber of Commerce
          Santa Clara Chamber of Commerce
          Santa Clarita Valley Chamber of Commerce
          Santa Monica Community College District
          Shasta-Tehama-Trinity Joint Community College District
          South County Economic Development Council
          South Orange County Community College District
          Southwestern Community College District
          Tahoe South
          Technology Credit Union
          Tri-City Medical Center
          Veterans Caucus of the California Democratic Party
          Veterans of Foreign Wars, Department of California
          Vietnam Veterans of America, California State Council
          West Hills Community College District
          West Kern Community College District
          Yosemite Community College District
          Yuba Community College District
          25 Individuals
           
            Opposition 
           
          Faculty Association of California Community Colleges

           
          Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960