BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                        AB 38


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          ASSEMBLY THIRD READING


          AB  
          38 (Eggman)


          As Amended  March 23, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                  |Noes                |
          |                |      |                      |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Higher          |12-1  |Medina, Baker, Bloom, |Harper              |
          |Education       |      |Chávez, Irwin,        |                    |
          |                |      |Jones-Sawyer, Levine, |                    |
          |                |      |Linder, Low,          |                    |
          |                |      |Santiago, Weber,      |                    |
          |                |      |Williams              |                    |
          |                |      |                      |                    |
          |----------------+------+----------------------+--------------------|
          |Appropriations  |16-1  |Gomez, Bonta,         |Bigelow             |
          |                |      |Calderon, Chang,      |                    |
          |                |      |Daly, Eggman,         |                    |
          |                |      |Gallagher, Eduardo    |                    |
          |                |      |Garcia, Gordon,       |                    |
          |                |      |Holden, Jones, Quirk, |                    |
          |                |      |Rendon, Wagner,       |                    |
          |                |      |Weber, Wood           |                    |
          |                |      |                      |                    |
          |                |      |                      |                    |
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          SUMMARY:  Requires the Legislative Analyst's Office (LAO) to  
          conduct an initial analysis to assess the need for a new campus of  
          the California State University (CSU).  Specifically, this bill:
          1)Declares the following findings of the Legislature:
             a)   The Master Plan for Higher Education in California  
               established the following criteria for determining the need  
               for a new public university campus:  i) the relative numbers  
               of high school graduates, the location of existing  
               institutions in the various areas of the state, and the  
               relation between their capacities and the estimate enrollment  
               in the area served by each institution; and, ii) the relative  
               numbers of potential students within reasonable commuting  
               distance of each of the proposed sites; iii) the need to  
               accommodate students in excess of the physical capacities of  
               existing California Community Colleges (CCC), CSU, and  
               University of California (UC) campuses; and, iv) the Master  
               Plan designates CSU to draw its freshman class from the top  
               third of the state's public high school graduates and admit  
               transfer-prepared applicants with a minimum grade point  
               average of 2.0.
          2)Requires the LAO to conduct an initial analysis to assess the  
            need for a new CSU campus, specifying the analysis shall consist  
            of the following elements:
             a)   An analysis of the need within certain regions for a CSU  
               campus, which shall include all of the following to the  
               extent applicable data is available:  i) Consideration of  
               enrollment demand based on relative demographic levels and  
               eligible students for each county, including all of the  
               following:  (1) five to 10 year projections of the  
               college-age population and public high school graduates, and  
               (2) data for the most recent year available on college  
               preparedness, including the number and share of high school  
               graduates completing the "A-G" admissions requirements and  
               the number and share of transfer-prepared community college  
               students,  ii) for each county, data on CSU applicants,  
               admissions, and enrollment for the most recent year available  
               to estimate college-going rates to CSU, and, iii) data on  
               adult educational attainment by county for the most recent  
               year available; and, iv) an analysis of the physical  








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               capacities of existing CSU campuses, as outlined in their  
               master plans, relative to current enrollment; specifying  
               which CSU campuses are already at maximum capacity and those  
               with remaining physical capacity; and, identifying which CSU  
               campuses no longer provide enrollment priority for local  
               applicants.
          3)Requires the CSU to provide whatever data is needed in order to  
            meet the requirements, as specified, to the LAO upon the LAO's  
            request.
          4)Requires the LAO with submitting a report containing their  
            analysis to the Legislature and the Department of Finance on or  
            before January 1, 2017.


          EXISTING LAW:  


          1)Declares the intent of the Legislature that sites for new  
            institutions or branches of the CSU shall not be authorized or  
            acquired unless recommended by the California Postsecondary  
            Education Commission (CPEC) and that CPEC should advise the  
            Legislature and the Governor regarding the need for, and  
            location of, new institutions and campuses of public higher  
            education (Education Code (EC) Sections 66900 and 66904).  
          2)Establishes the CSU administered by the Board of Trustees, and  
            provides that the Trustees shall have the full power over the  
            construction and development of any CSU campus and any buildings  
            or other facilities or improvements (EC Section 89030, et seq.).  
             


          FISCAL  
          EFFECT:  According to the Assembly Appropriations Committee, the  
          LAO indicates it can prepare the required analysis within its  
          existing resources.  Given that this is an initial, somewhat  
          high-level analysis, CSU's costs to provide LAO with needed data  
          should be minor and absorbable. CSU's costs will be more  
          significant if regional market analyses, sphere of influence  
          studies, or assessments of the potential academic and fiscal  








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          impacts on other CSU institutions were to be requested.


          COMMENTS:  California Postsecondary Education Commission (CPEC).   
          There is currently no coordinating entity for higher education in  
          California.  Existing law establishes CPEC to be responsible for  
          coordinating public, independent, and private postsecondary  
          education in California and to provide independent policy analyses  
          and recommendations to the Legislature and the Governor on  
          postsecondary education issues.  However, over time, CPEC's budget  
          was reduced, resulting in its inability to perform all of its  
          responsibilities, casting doubt on its effectiveness and  
          triggering calls for its restructuring.  As part of his 2011-12  
          Budget, Governor Brown proposed eliminating CPEC.  Both Houses  
          rejected this proposal, but the Governor exercised his line item  
          veto to remove all General Fund support for CPEC, describing the  
          commission as "ineffective." In his veto message, however, the  
          Governor acknowledged the need for coordinating and guiding state  
          higher education policy and requested that stakeholders explore  
          alternative ways these functions could be fulfilled.  CPEC shut  
          down in Fall 2011, transferring its federal Teacher Quality  
          Improvement grant program to the California Department of  
          Education and extensive data resources to the CCC Chancellor's  
          Office. 


          Purpose of this bill.  According to the author, "There is  
          currently no coordinating body that assesses the needs for a new  
          CSU or UC campuses.  Instead, we have almost ad hoc expansion that  
          results in an unequal distribution of infrastructure and  
          educational services statewide.  For example, Stockton,  
          California, is the only city with 300,000 or more people in  
          California without a public university in its proximity."  To  
          note, the nearest CSU campuses - Sacramento State, CSU Stanislaus,  
          and CSU East Bay - are at least 45 miles away from Stockton,  
          without public transportation linkages for students who do not own  
          a vehicle.  The author contends that this is an example of a  
          regional inequality of services and infrastructure that  
          contributes to poor educational attainment and unemployment.  








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          The author contends this measure is a necessary first step in  
          establishing an objective process for evaluating California's  
          needs for a new public university campus - through a statewide  
          study that examines various factors in determining what areas are  
          the best locations for the establishment of a new CSU campus. 


          Review process for new campus.  California Postsecondary Education  
          Commission's review process for a potential new campus of the UC,  
          CSU, and/or CCC was very layered and structured, including the  
          need for the asking segment to submit a preliminary notice at the  
          beginning of the segment's planning process for a new campus or  
          off-site center.  The preliminary notice had to include  
          information on the proposed institution's general location, type  
          of operations, time frame for development, projected enrollment,  
          and near-term capital outlay plan.  The next step in CPEC's  
          process was for the asking segment to submit a letter of intent  
          when they were within five years (two for a CCC) of requesting  
          state funds for capital outlay.  To note, the letter of intent had  
          to contain similar information as the preliminary notice but with  
          greater specificity.  CPEC then responded to the letter of intent  
          within 60 days and would include any concerns with the proposal  
          and opined as to if the segment should proceed with development  
          plans. The last step in the review process was for the asking  
          segment to submit to CPEC a study that provided a justification  
          for the campus or center on the site identified.  The needs study  
          included nine different areas (enrollment, alternatives, academic  
          planning, student services, costs, accessibility, effects on other  
          institutions, environmental impact, and economic efficiency)  
          according to which the proposal was evaluated.  CPEC responded to  
          the needs study within one year for the new campus and within six  
          months for a new center; their response included a formal  
          recommendation to the Governor and the Legislature as it if a new  
          campus and/or center should be created.


          Appropriate entity to fill the role of CPEC?  With the state no  








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          longer having a coordinating body for higher education, how is the  
          state going to fulfill the former CPEC functions?  This measure  
          tasks the LAO, in conjunction with the CSU to conduct a detailed  
          analysis as to the need for an additional CSU campus; is the LAO  
          the correct entity to conduct the analysis? 


          The Legislature may want to consider whether or not it tasks  
          various entities with fulfilling the work of the former CPEC or  
          halting all projects that would otherwise be under the  
          jurisdiction of the former CPEC until the state creates a new  
          higher education coordinating body.


          Previous legislation.  AB 736 (Fox) of 2013, which was held in the  
          Senate Appropriations Committee, required the CSU to conduct a  
          study, as specified, regarding the feasibility of a CSU satellite  
          program, and ultimately, an independent CSU campus in the Antelope  
          Valley.  AB 24 (Block) of 2009, which was vetoed by Governor  
          Schwarzenegger, proposed a study regarding the feasibility of  
          establishing a CSU satellite program and campus at Chula Vista.   
          AB 500 (Conway)of 2009, which was held in the Higher Education  
          Committee, was virtually identical to this measure except it  
          called for a CSU campus in the high desert.  SCR 92 (Peace),  
          Resolution Chapter 104, Statutes of 1998, resolved that the  
          Legislature endorse a proposed city site for possible future use  
          as a UC campus.  




          Analysis Prepared by:                                               
                          Jeanice Warden / HIGHER ED. / (916) 319-3960  FN:  
          0000751













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