BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                      AB 1307

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          1307 (McCarty and Medina)

          As Amended  June 1, 2015

          Majority vote

          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |Higher          |10-3  |Medina, Bloom,       |Baker, Chávez,       |
          |Education       |      |Irwin,               |Harper               |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Jones-Sawyer,        |                     |
          |                |      |Levine, Linder, Low, |                     |
          |                |      |Santiago, Weber,     |                     |
          |                |      |Williams             |                     |
          |                |      |                     |                     |
          |Appropriations  |12-5  |Gomez, Bonta,        |Bigelow, Chang,      |
          |                |      |Calderon, Daly,      |Gallagher, Jones,    |
          |                |      |Eggman,              |Wagner               |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Quirk, Rendon,       |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |


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          SUMMARY:  Requires the California State University (CSU) and the  
          University of California (UC) to follow specified student fee  
          consultation and notification provisions.  Specifically, this  

          1)Mandates CSU, and UC as a condition of receipt of state funds in  
            the annual budget act, compliance with specific provisions of  
            the Working Family Student Fee Transparency and Accountability  
            Act (Student Fee Act), as follows: 

             a)   Requires, instead of encourages, as changes in mandatory  
               systemwide fees and financial aid are being considered, the  
               impact of changes to be explained to students;

             b)   Requires, instead of encourages, students to be consulted  
               before increases on mandatory systemwide fees are proposed;

             c)   Requires, instead of encourages, adequate advance notice  
               to be provided to students regarding future mandatory  
               systemwide fees; 

             d)   Requires, instead of encourages, all current and  
               prospective students to be provided timely information  
               concerning student financial aid;

             e)   Requires, rather than encourages, the state's public  
               colleges and universities ensure transparency in the uses of  
               mandatory systemwide fee revenue and the rationale for  
               implementing mandatory systemwide fee increases; and, 


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             f)   Requires, rather than urges, CSU and UC to maintain their  
               commitment to institutional financial aid programs by  
               ensuring at least 33% of fee increase revenues are set aside  
               for institutional student aid.

          EXISTING LAW:  Requires, under the Student Fee Act, UC and CSU  
          follow specific notice, consultation, and timeframe requirements  
          when approving student fee increases. (Education Code Sections  
          66028 to 66028.6)  

          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, minor absorbable costs to the UC for compliance with  
          the Student Fee Act.

          COMMENTS:  Student fee policy.  Fees and General Fund (GF) support  
          work interchangeably to fund the core instructional missions of  
          the segments.  The state's portion essentially subsidizes the  
          amount paid by students in the form of fees.  Because of this  
          link, fees have increased steeply during difficult budget years  
          (generally also years where a down-economy makes families less  
          able to pay for increases) and then declined when state support  
          could be provided to the segments.  

          Through 1996, fees at California public postsecondary institutions  
          were governed by the Maddy-Dills Act (Act), which required fees to  
          be gradual, moderate and predictable; increases to be limited to  
          10% a year; and fixed at least 10 months prior to the fall term in  
          which they were to become effective.  However, when the state  
          faced serious budget challenges the provisions of the Act were set  
          aside in order to provide the CSU Trustees and the UC Regents  
          flexibility in dealing with the lack of GF support.  In 1996, the  
          Act was allowed to sunset.  


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          In 2012, AB 970 (Fong), Chapter 620, established the Student Fee  
          Act to require UC and CSU follow specific notice and consultation  
          requirements when approving student fee increases:

          1)UC and CSU are required to follow prescribed public notice and  
            student consultation procedures before adopting an increase in  
            mandatory systemwide tuition and fees for resident students;

          2)UC and CSU are required to develop a list of factors to consider  
            when recommending a fee increase;

          3)UC and CSU are required to provide the Legislature on annual  
            reports on tuition and fees, financial aid, and total cost of  

          4)The Legislative Analyst's Office (LAO) is required to report on  
            CSU and UC compliance with the Student Fee Act. 

          UC noncompliance with the Student Fee Act.  On March 25, 2015, the  
          LAO released its annual report regarding UC and CSU compliance  
          with the Student Fee Act.  LAO found that CSU has not increased  
          resident mandatory systemwide charges in the past year and  
          therefore was not required to follow any consultation or  
          notification procedures required by existing law.  UC, on the  
          other hand, was deemed by LAO to be not in compliance with most of  
          the provisions of the law.  According to the LAO, UC reported it  
          is not legally obligated to comply with the law because of its  
          constitutional autonomy.  LAO noted that of the six statutory  
          requirements regarding public notice and student consultation, UC  
          failed to comply with four requirements. 


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