BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1000


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1000 (Weber) - As Amended May 6, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill imposes several requirements on the California State  
          University (CSU) regarding the implementation and rescission of  
          student success fees. Specifically, this bill:









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          1)Prohibits a CSU campus or the CSU Chancellor from approving a  
            new student success fee or increasing an existing fee until  
            the campus:


             a)   Undertakes a consultation process to inform students on  
               a fee's uses, impacts, and costs.


             b)   Holds a binding student election and a majority of  
               students voting vote affirmatively. The fee would then be  
               adopted contingent on final approval by the Chancellor.


             c)   Informs students that the fee may be rescinded by a  
               majority vote of the students, but not less than six months  
               after a vote to implement the fee. Rescission is not  
               allowed, however, for the portion of the fee committed to  
               support ongoing or long-term obligations until satisfied,  
               unless the campus has identified an alternative funding  
               source.


          2)Stipulates that a fee proposal may not be brought before the  
            student body more than once per academic year.


          3)Provides that a success fee in place as of January 1, 2016,  
            may be rescinded by student vote only after six years have  
            elapsed following implementation.


          4)Requires the Chancellor to:


             a)   Ensure there is majority student representation in  
               success fee oversight groups, an annual report to the  
               chancellor from each campus on its success fee, and a  








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               transparent process for allocation of success fee revenues.


             b)   Define an ongoing or long-term obligation for purposes  
               of the above.


             c)   Report annually on December 1, to the Legislature and  
               the Department of Finance, a summary of fees adopt or  
               rescinded in the prior academic year, and on the uses of  
               proposed and implemented fees.


          





          FISCAL EFFECT:


          The bill's requirements are generally consistent with a recent  
          policy adopted by the CSU Trustees, though placing these  
          requirements in statute would reduce CSU's flexibility to adjust  
          its policy in reaction to reductions in state support. There  
          would be potential cost pressure to substitute, with other CSU  
          funds (including state General Funds), the portion of any  
          rescinded fee dedicated for a long-term obligation. CSU  
          indicates that, of the $95 million in student success fees  
          generated systemwide, about $38 million are for long-term  
          obligations, ranging from $2 million to $9.5 million on  
          individual campuses.


          COMMENTS:


          Background and Purpose. Since 2008, 12 of the 23 CSU campuses  








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          have adopted student success fees, which were adopted largely in  
          response to significant state funding reductions, and are  
          required to be paid by students enrolling in these campuses.  
          Concern over the amount of these fees, the process used for  
          adoption on campuses, and the impact of the fees on low-income  
          students led to the Legislature placing a 18-month moratorium on  
          new fees and establishing CSU reporting requirements in a  
          trailer bill to the 2014-15 Budget Act (SB 860, Chapter 34,  
          Statutes of 2014).  





          In June 2014, the CSU Trustees formed a working group to study  
          the role, process and enactment of student success fees.  The  
          working group found that fees had been used in a number of ways  
          by the different campuses, such as to support technology,  
          campus-wide WiFi, library hours, veteran services, career  
          services, athletics and additional otherwise unfunded services.  
          Some campuses have used these fees, however, to fund educational  
          needs traditionally supported by tuition and state  
          appropriation, such as faculty, advisors, counselors and tutors,  
          and to provide more courses.





          In January 2015, the Trustees adopted a resolution memorializing  
          the final recommendations of the work group. The CSU  
          Chancellor's Office is reportedly in the process of establishing  
          an Executive Order consistent with the requirements of the  
          resolution. This bill is largely consistent with the  
          requirements of the trustees resolution.












                                                                    AB 1000


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          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081