BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1000            
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          |Author:    |Weber                                                |
          |-----------+-----------------------------------------------------|
          |Version:   |May 28, 2015                               Hearing   |
          |           |Date:      July 15, 2015                             |
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          |Urgency:   |No                     |Fiscal:      |Yes            |
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          |Consultant:|Kathleen Chavira                                     |
          |           |                                                     |
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          Subject:  California State University:  student success fees

            SUMMARY
          
          This bill deletes existing provisions and establishes new  
          requirements regarding the implementation, rescission and  
          reporting, of student success fees at the California State  
          University (CSU). 

            BACKGROUND
          
          Existing law defines "student success fee" as a type of category  
          II campus-based mandatory fee that must be paid by a student to  
          enroll or attend a campus of the CSU, as determined by that  
          campus or the Chancellor of the CSU.  

          Existing law prohibits a CSU campus, or the Chancellor of CSU,  
          or both, from approving a student success fee, before January 1,  
          2016, and requires the Chancellor to review the CSU Student Fee  
          Policy relating to student success fees and to recommend any  
          changes to the trustees during the 2014-15 fiscal year.   
          Existing law requires a report to the Department of Finance and  
          the appropriate fiscal and policy committees of the Legislature,  
          on or before February 1, 2015, regarding the chancellor's  
          proposed revisions to these policies. 

          Existing law requires the Chancellor's review and  
          recommendations to consider: 

          1)The approval process and the benefit of utilizing a student  







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            election or the consultative process in the approval process.

          2)The need for statewide policies governing a student election,  
            the consultative process, or both, for approving a proposed  
            student success fee.

          3)The means to improve transparency and accountability regarding  
            a campus' use of student success fee funds.

          4)The development of an annual report describing the use of  
            student success fee funds by each campus. 

          5)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,  
            or through the consultative process. 

          6)The impact of student success fees on campuses' academic  
            programs and services available for students.

          7)The provision for financial assistance to offset the cost of  
            the fee for low-income students.  (Education Code § 89712)  

            ANALYSIS
          
          This bill deletes existing provisions and establishes the  
          following new requirements regarding student success fees:

       1)Prohibits a campus of the California State University (CSU), or  
            the Chancellor of the CSU or both from approving, or  
            increasing an existing, student success fee before doing all  
            of the following:

               a)    Undertaking a rigorous consultation process that  
               informs and educates students on the uses, impact and cost  
               of the proposed fee or fee increase.

               b)    Informing students that a student fee may be  
               rescinded by a majority vote of the students, but may not  
               be rescinded earlier than six years following the vote to  
               implement the fee, except that any portion of a fee  
               committed to a long-term obligation may not be rescinded  
               until the obligation has been satisfied. 








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               c)    Holding a binding student election in which a  
               majority of the student body votes to implement or increase  
               a student success fee, contingent upon final approval by  
               the Chancellor of the CSU.

               d)    Limiting the bringing of such a proposal to the  
               student body to once per academic year. 

       2)Authorizes student success fees to be rescinded with a binding  
            student vote of a simple majority of the students voting.  It  
            requires that:

               a)    A student success fee in place on January 1, 2016 be  
               rescinded by a binding student vote only after six years  
               have elapsed following the implementation of the fee. 

               b)    For rescission of all other student success fees it:

                           i)                  Provides that the fee may  
                         be rescinded by a simple majority of the voting  
                         students.

                           ii)     Requires that a student vote be  
                         formally approved by the recognized student  
                         government, that rescission vote proposals be  
                         brought to students only once per academic year,  
                         and that prior to reconsidering a fee and before  
                         a vote that students be informed of specified  
                         information regarding the use of the fee for  
                         long-term obligations.


       3)Requires the Chancellor of the CSU to: 

               a)    Ensure that any campus fee allocation oversight group  
               have majority student representation, that each campus  
               prepare an annual report, that there is uniform,  
               transparent, online accountability in the decision making  
               process for, detailed accounting of, the allocation of  
               student success fees.

               b)    Establish appropriate reporting procedures to ensure  
               compliance with requirements. 








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               c)    Report by December 1 or each year, a summary of the  
               fees adopted or rescinded in the prior academic year and  
               the uses of proposed and implemented fees. 

       4)Defines a "student success fee" as a category II campus based  
            mandatory fee that must be paid by a student to enroll or  
            attend a California State University (CSU) campus, as  
            specified. 

          STAFF COMMENTS
          
       1)Need for the bill.  According to the author, this bill is the  
            next step in the process of addressing student success fees at  
            the CSU.  Its provisions are generally based upon a recently  
            adopted resolution by the CSU Trustees regarding student  
            success fees.  The author states that by putting into statute  
            many of these recommendations, the Legislature can ensure that  
            students will continue to have a voice in fees that directly  
            affect them. 

       2)History. In an attempt to make-up for budget cuts experienced  
            during the recession, a number of CSU campuses adopted student  
            success fees, which, in some cases, substantially increased  
            the cost of attendance at a CSU.  Since 2011, 12 of the 23 CSU  
            campuses had adopted such fees. The process for determining  
            these fees differed at each campus.  According to the author,  
            at some campuses this fee results in an additional cost of  
            $2000 annually.  

            As part of the 2014-15 Budget Act, SB 850 (Chapter 34,  
            Statutes of 2014) was enacted to prohibit a CSU campus, or the  
            Chancellor, from approving a student success fee before  
            January 1, 2016, and to require the Chancellor to conduct a  
            review of, and recommend changes to, the CSU student fee  
            policy during the 2014-15 fiscal year.  The Chancellor was  
            required to report to the Department of Finance (DOF) and the  
            appropriate fiscal and policy committees of the Legislature,  
            on February 1, 2015, regarding proposed revisions to the CSU  
            student fee policy related to student success fees.

       3)Related Report. In compliance with the requirements of SB 860,  
            the CSU issued its report January 30, 2015 summarizing the  
            process and findings of the Student Success Fee Working Group  








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            and the recommendations of the Trustees. In addition, at its  
            January 27-28 meeting the Trustees adopted a resolution  
            memorializing the final recommendations of the working group  
            which required all the following: 


          a)   A binding student vote, prior to the implementation of any  
               proposed new student success fee, and a rigorous  
               consultation process prior to the vote, to educate students  
               on uses, impact, and cost and to inform students that a fee  
               that supports ongoing and or long-term obligations will  
               remain in place until the obligation is satisfied  
               regardless of a subsequent vote to rescind the fee. 

          b)   All student success fees currently in place remain  
               unchanged, however a new addition to an existing fee must  
               be approved by a binding student vote, the campus must  
               receive approval on the process for approval from the CSU  
               Chancellor's Office, and a fee proposal may only be brought  
               to the student body once per academic year.

          c)   Student success fees accepted by a majority of students  
               voting may not be implemented without the approval of the  
               California State University (CSU) Chancellor and the campus  
               president, and if for a proposed use historically covered  
               by tuition and state funding, the Chancellor is required to  
               consult with the Board of Trustees before granting final  
               approval.

          d)   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.

          e)   Student success fee implementation and fee rescinding  
               proposals may only be brought before the student body once  
               per academic year.

          f)   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, and any campus  








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               advisory group on student success fees is required to  
               include a majority student representation. 

               This bill is generally consistent with the provisions of  
               the resolution adopted by the Trustees. 

       4)Existing student success fees.  Current law prohibits the  
            adoption of any new student success fees until January 1,  
            2016.  As part of the report required by SB 850, the CSU was  
            required to examine the uses and processes related to existing  
            fees, and was specifically tasked with reviewing financial aid  
            considerations for low-income students. The Trustees formed a  
            working group to study the role, process, and enactment of  
            these fees, as well as make recommendations regarding their  
            future use. 
               
            According to the CSU, the Working Group determined that these  
            fees had been used for new technology, campus-wide Wi-Fi,  
            library hours, veteran services, career services, athletics,  
            and additional benefits for students.  While one campus  
            rejected the use of these fees for purposes historically  
            covered by tuition and state funding, other campuses used fees  
            for purposes of funding educational needs traditionally  
            supported by these sources, including to hire additional  
            faculty, advisors, counselors, tutors, and to provide more  
            courses.  The working group recommended no policy changes  
            relative to financial aid to offset costs for low-income  
            students as they found that there is sufficient coverage  
            through a variety of private, institutional, state, and  
            federal financial aid programs. 

            In addition, of the 12 campuses with success fees, two had  
            referendums, although one of these allowed students to vote  
            only if they attended alternative consultation meetings about  
            the fee proposal. A third campus imposed a fee without a  
            campus-wide referendum and despite a vote by the Student Fee  
            Advisory Committee rejecting the proposed fee. 

       5)Student Success Fees.  According to the California State  
            University (CSU), student success fees are category 2  
            campus-based mandatory fees.  This bill's provisions maintain  
            the definition to codify it as one of five categories of fees  
            which have been established by CSU Executive Order 1054, and  
            the provisions of this bill, as well the Trustees resolution  








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            only affect category 2 campus-based fees.  The chart below  
            summaries these fees.



           ------------------------------------------------------------------- 
          |                             CSU FEES                              |
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          |---------+------------------------------+--------------------------|
          |Types of |         Description          |         Examples         |
          |  Fees   |                              |                          |
          |---------+------------------------------+--------------------------|
          |Category |Systemwide mandatory fees     |Tuition fee, non-resident |
          |1        |that must be paid to apply    |tuition fee, application  |
          |         |to, enroll in, or attend the  |fee, professional program |
          |         |university, or to pay the     |fee                       |
          |         |full cost of instruction      |                          |
          |         |required of some students by  |                          |
          |         |statute                       |                          |
          |---------+------------------------------+--------------------------|
          |Category |Campus mandatory fees that    |Health facilities fee,    |
          |2        |must be paid to enroll in or  |health services fee,      |
          |         |attend the university         |university union fee,     |
          |         |                              |associated student body   |
          |         |                              |fee, materials services   |
          |         |                              |and facilities fee,       |
          |         |                              |instructionally related   |
          |         |                              |activities fee,           |
          |         |                              |orientation fee,          |
          |         |                              |athletics recreation and  |
          |         |                              |transit fees              |
          |---------+------------------------------+--------------------------|
          |Category |Fees associated with          |Course fees, field trip   |
          |3        |state-supported courses.      |fees                      |
          |         |Specifically for materials    |                          |
          |         |and services used in concert  |                          |
          |         |with the basic foundation of  |                          |
          |         |an academic course offering   |                          |
          |---------+------------------------------+--------------------------|
          |Category |Fees paid to receive          |Late fees, library fees,  |
          |4        |materials services, or for    |diploma fees, check       |
          |         |the use of facilities         |return fees, etc.         |
          |         |provided by the university;   |                          |
          |         |and fees or deposit to        |                          |








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          |         |reimburse the university for  |                          |
          |         |additional costs resulting    |                          |
          |         |from dishonored payments,     |                          |
          |         |late submissions, or misuse   |                          |
          |         |of property as a security or  |                          |
          |         |guaranty                      |                          |
          |---------+------------------------------+--------------------------|
          |Category |Fees paid to self-support     |Parking fees/fines,       |
          |5        |programs                      |housing fees/fines and    |
          |         |                              |continuing or extended    |
          |         |                              |education fees/fines,     |
          |         |                              |student fees and fines    |
          |         |                              |                          |
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       6)Prior legislation.  AB 938 (Weber) as amended by this Committee,  
            required that a campus of the CSU that has implemented a  
            "student success fee" must use its institutional aid to cover  
            the cost of these fees for low-income students, as defined.  
            Upon returning to the Assembly for concurrence, AB 938 was  
            referred to the Assembly Higher Education Committee, but was  
            never heard at the request of the author.

            SUPPORT
          
          California Federation of Teachers
          California State Student Association

            OPPOSITION
           
           California State University

                                      -- END --