BILL ANALYSIS Ó AB 1000 Page 1 ASSEMBLY THIRD READING AB 1000 (Weber) As Amended May 28, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Higher |13-0 |Medina, Baker, | | |Education | |Bloom, Chávez, | | | | |Harper, Irwin, | | | | |Jones-Sawyer, | | | | |Levine, Linder, | | | | |Low, Santiago, | | | | |Weber, Williams | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | AB 1000 Page 2 | | | | | ------------------------------------------------------------------- SUMMARY: Establishes various requirements for the implementation and rescission of California State University (CSU) student success fees (fees). Specifically, this bill: 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 c) Informs students that the fee may be rescinded by a majority vote of the students, but not less than six months after a vote to implement the fee.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 long-term obligations. 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the student body more than once per academic year. 3)Provides that a success fee in place as of January 1, 2016, may be rescinded by student vote only after six years have elapsed following implementation. AB 1000 Page 3 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 transparent process for allocation of success fee revenues. b) Report annually on December 1, to the Legislature and the Department of Finance, a summary of fees adopt or rescinded in the prior academic year, and on the uses of proposed and implemented fees. EXISTING LAW: 1)Prohibits a campus-based mandatory student fee at the CSU established through a student vote from being reallocated without an affirmative student vote unless a majority of the members of either the student body or a campus fee advisory committee voting on the fee support the reallocation and the fee authorized the alternative allocation mechanism. (Education Code Section 89711) 2)Prohibits a CSU campus or CSU Chancellor from approving a student success fee before January 1, 2016, and requires the CSU Chancellor to conduct a review and report on student success fees currently in place, as follows. (Education Code Section 89712) a) Requires, during the 2014-15 fiscal year, the CSU Chancellor to conduct a review of the CSU Student Fee Policy relating to student success fees and recommend to the trustees changes to the fee policy; and requires the review to consider: i) The approval process for student success fees, including AB 1000 Page 4 the benefit of using a student election or the consultative process in the approval process; ii) The need for statewide policies governing a student election, the consultative process, or both, for approving a proposed student success fee; iii) The means to improve transparency and accountability regarding a campus' use of student success fee funds for the benefit of members of the campus' community; iv) The development of an annual report describing the use of student success fee funds by each campus in the prior academic year, to be posted on each campus' Internet Web site; v) The approval of a statewide policy to prohibit a campus from implementing a student success fee for a period exceeding five years unless a continuance of that fee is approved by an affirmative vote of the majority of the student body voting; vi) The impact of student success fees on campuses' academic programs and services available for students, including, but not necessarily limited to, low-income students; and, vii) A provision for financial assistance to offset the cost of the fee for low-income students. a) Requires the CSU Chancellor to report to the Department of Finance and the appropriate fiscal and policy committees by February 1, 2015. FISCAL EFFECT: According to the Assembly Appropriations Committee, the bill's requirements are generally consistent with a recent AB 1000 Page 5 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. COMMENTS: A number of CSU campuses have adopted student success fees, which, in some cases, substantially increase the cost of attendance at a CSU. Since 2008, 12 of the 23 CSU campuses have adopted such fees. These fees, which were adopted largely in response to significant state funding reductions, 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 an 18-month moratorium on new fees and establishing CSU reporting requirements in the 2013-14 Budget Act education trailer bill (SB 860 (Budget and Fiscal Review Committee), Chapter 34, Statutes of 2014). In June 2014, the CSU Board of Trustees (BOT) 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. At some campuses, fees support technology, campus-wide WiFi, library hours, veteran services, career services, athletics and additional otherwise unfunded services. Some campuses, however, have used these fees to fund educational needs that have traditionally been supported by tuition and state appropriation such as faculty, advisors, counselors and tutors, and to provide more courses. According to the working group, of the 12 campuses with fees, only two had referendums where a majority of students voted in favor of the fee, and one of those two allowed students to vote only if they attended alternative consultation meetings about the proposal. At a third campus students voted to rejected the proposed fee and the fee was imposed despite the student rejection. At remaining campuses "alternative consultation" meetings were used instead of student votes. AB 1000 Page 6 At the January 27-28, 2015, meeting of the CSU Board of Trustees (Trustees), the Trustees adopted a resolution memorializing the final recommendations of the working group. The resolution requires all of the following: 1)A binding student vote, where all eligible students are authorized to vote, prior to the implementation of any proposed new student success fee and a rigorous consultation process prior to the vote, students must be informed prior to the vote of their rights to rescind the fee and any limitations surrounding ongoing and/or long-term obligations supported by the fee; 2)Student success fees currently in place shall remain unchanged, however a new addition to an existing fee must be approved by a binding student vote and the campus must receive approval from the CSU Chancellor's Office on the process. 3)Student success fees accepted by a majority of students voting may not be implemented without the approval of the CSU Chancellor and the campus president. If the proposed uses of the fee were historically covered by tuition and state funding, the Chancellor is required to consult with the Board of Trustees. 4)Student success fees may be rescinded at any time after six years with another binding majority student vote, except that student success fees supporting ongoing and long-term obligations may not be rescinded until the obligation is satisfied. Current student success fees may not be rescinded until after January 1, 2021; 5)Student success fee implementation and fee rescinding proposals may not be brought before students more than once per academic year; and, AB 1000 Page 7 6)Each campus is required to have transparent, online accountability protocols that clarify the decision process and allocation of the student success fees, with annual reporting to the Chancellor by October 15th; This bill is largely consistent with the requirements of the CSU BOT resolution, the CSU Chancellor's Office is currently in the process of establishing an Executive Order consistent with the requirements of the resolution Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0000747