BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1000|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  AB 1000
          Author:   Weber (D), et al.
          Amended:  8/24/15 in Senate
          Vote:     21  

           SENATE EDUCATION COMMITTEE:  9-0, 7/15/15
           AYES:  Liu, Runner, Block, Hancock, Leyva, Mendoza, Monning,  
            Pan, Vidak

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  79-0, 6/2/15 - See last page for vote

           SUBJECT:   California State University:  student success fees


          SOURCE:    Author
          
          DIGEST:   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). 

          Senate Floor Amendments of 8/24/15 add a coauthor.

          ANALYSIS: 
          
          Existing law:

          1)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.  








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          2)Prohibits a CSU campus, or the Chancellor of the 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  
            (DOF) 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. 

          3)Requires the Chancellor's review and recommendations to  
            consider: 

             a)   The approval process and the benefit of utilizing a  
               student election or the consultative process in the  
               approval process.

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

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

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

             e)   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. 

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

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

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








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          1)Prohibits a campus of the 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. 

             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. 

          1)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.

          2)Requires the Chancellor of the CSU to: 







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             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. 

             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. 

          1)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 CSU campus, as specified. 

          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 860 (Committee on Budget  
            and Fiscal Review, 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,  







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            the CSU student fee policy during the 2014-15 fiscal year.   
            The Chancellor was required to report to the 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 (Working Group) 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  
               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  







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               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  
               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. 

          1)Existing student success fees.  Existing law prohibits the  
            adoption of any new student success fees until January 1,  
            2016.  As part of the report required by SB 860, 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. 







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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified8/17/15)


          California Federation of Teachers
          California State Student Association


          OPPOSITION:   (Verified8/17/15)


          California State University


          ASSEMBLY FLOOR:  79-0, 6/2/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Chávez

          Prepared by:Kathleen Chavira / ED. / (916) 651-4105
          8/25/15 15:46:10


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