BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 850
                                                                  Page  1


          SENATE THIRD READING
          SB 850 (Block)
          As Amended  August 18, 2014
          Majority vote 

           SENATE VOTE  :34-0  
           
           HIGHER EDUCATION    12-0        APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Williams, Chávez, Bloom,  |Ayes:|Gatto, Bigelow,           |
          |     |Fong, Fox, Levine,        |     |Bocanegra, Bradford, Ian  |
          |     |Linder, Medina, Olsen,    |     |Calderon, Campos,         |
          |     |Quirk-Silva, Weber, Wilk  |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Holden, Jones, Linder,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
           ----------------------------------------------------------------- 

           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;  
            specifies that the pilot shall commence no later than the  
            2017-18 Academic Year (AY) and participating students shall  
            complete their degrees by the end of the 2022-23 AY; and,  
            sunsets the pilot program on January 1, 2024.  

          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.








                                                                  SB 850
                                                                  Page  2



          3)Requires districts, as a condition for eligibility to  
            participate in the pilot program, to have a written policy  
            requiring all students seeking a BOG fee waiver to instead  
            submit either a Free Application for Federal Student Aid  
            (FAFSA) or a California Dream Act application. 

          4)Stipulates that a district may offer only one baccalaureate  
            degree program at one campus within the district and requires  
            districts to identify and document unmet workforce needs and  
            to not offer a program already offered by CSU or UC.

          5)Requires a district seeking to participate in the pilot  
            program to submit specified information for review by the CCC  
            Chancellor and approval by the BOG.

          6)Requires the BOG, by March 31, 2015, to adopt regulations  
            establishing a funding model, for each full-time equivalent  
            student in the program, which is not to exceed the CCC's  
            marginal cost for credit instruction, as established in  
            current law. 

          7)Stipulates that student fees for lower division coursework  
            shall not exceed CCC student fee amounts and that fees for  
            upper division coursework shall equal the CCC fee plus $84 per  
            unit.  

          8)Requires the Legislative Analyst's Office (LAO) to conduct  
            interim and final evaluations of the pilot program, as  
            specified, and report to the Legislature and the Governor.   
            The interim evaluation is due July 1, 2018, and the final  
            evaluation is due by July 1, 2022.
           
          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  








                                                                  SB 850
                                                                  Page  3


            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  
            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 (EC) Section  
            66010.4).

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

          1)Ongoing General Fund costs to the Chancellor's Office in the  
            range of $350,000 for three to four staff to establish and  
            monitor district programs, including developing guidelines and  
            reviewing, approving, and monitoring participating districts'  
            baccalaureate degree programs;

          2)Significant one-time and ongoing costs to participating  
            districts for establishing and operating the programs,  
            including any needed capital improvements and equipment  
            purchases.  Since participation by districts is voluntary,  
            these costs are not reimbursable and will be offset by state  
            apportionments and student fee revenues.  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; and,

          3)Minor absorbable costs to the LAO to conduct a statewide  
            program evaluation.









                                                                  SB 850
                                                                  Page  4


           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.

          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 Section 66040 to Section 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  








                                                                  SB 850
                                                                  Page  5


            therapists to provide health care services and required to be  
            consistent with meeting professional accreditation  
            requirements (EC Section 66042 to Section 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 full-time equivalent student (FTES) for all  
            three campuses and enrollment of new students is prohibited on  
            or after July 1, 2018.  In fall 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 Department of Finance.

          Types of 4-year degrees envisioned?   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 four-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  
          four-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.

          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.  

          AB 2400 (Block) of 2010, which was held in the Assembly Higher  








                                                                  SB 850
                                                                  Page  6


          Education Committee by request of the author, authorized the San  
          Diego, Grossmont-Cuyamaca and San Mateo Community Colleges  
          Districts to establish baccalaureate degree pilot programs.  

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


                                                                FN: 0004792