BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1000


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1000 (Weber)


          As Amended  August 24, 2015


          Majority vote


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          Original Committee Reference:  HIGHER ED.




          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  








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               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             c)   Informs students that the fee may be rescinded by a  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            may be rescinded by student vote only after six years have  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.


          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.


          The Senate amendments add a coauthor and make another  
          non-substantive change.


          EXISTING LAW:  


          1)Prohibits a campus-based mandatory student fee at the CSU  








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            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 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  








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                 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 Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  



          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  








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          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.  


          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.  This bill is  
          largely consistent with the requirements of the CSU BOT  
          resolution.  


          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:  
          0001850