BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1349


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          Date of Hearing:  April 21, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 1349  
          (Weber) - As Introduced February 27, 2015


          SUBJECT:  Public postsecondary education:  California First Act


          SUMMARY:  Requires the California State University (CSU) and the  
          University of California (UC) to guarantee undergraduate  
          admissions to eligible California students, as specified and  
          defined.  Specifically, this bill:  


          1)Establishes the California First Act to improve undergraduate  
            access to CSU and UC, in accordance with the California Master  
            Plan for Higher Education, for California residents (defined  
            as persons who are not required to pay nonresident tuition). 


          2)Requires the Trustees of the CSU, and requests the Regents of  
            the UC, to guarantee undergraduate admissions at a campus, not  
            necessarily at a campus or in a major of the applicant's  
            choice, within their systems, to all eligible California  
            residents who apply on time and satisfy the undergraduate  
            admissions eligibility requirements. 


          3)Requires the Trustees, and requests the Regents, to submit an  
            annual report to the Legislature on or before July 1, 2017,  
            and every July 1 thereafter, for each campus and systemwide,  








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            for the total number of undergraduate applications received,  
            the number of undergraduate applicants admitted, and the  
            number of undergraduate applicants not admitted for the coming  
            academic year.


          EXISTING LAW:  


          1)Establishes the intent of the Legislature that each resident  
            of California who has the capacity and motivation to benefit  
            from higher education should have the opportunity to enroll  
            and progress in an institution of higher education.   
            (Education Code Section 66201)


          2)Establishes the intent of the Legislature that UC and CSU seek  
            to maintain an undergraduate student population ratio of 60%  
            upper division students and 40% lower division students to  
            accommodate California Community College (CCC) transfer  
            students. (EDC Section 66201.5)


          3)Establishes that UC and CSU are expected to plan for adequate  
            spaces to accommodate all California resident students who are  
            eligible and likely to apply to attend an appropriate place  
            within the system and that the Legislature intends to fund  
            programs in order to accomplish these purposes. (EDC Section  
            66202.5)


          FISCAL EFFECT:  Unknown


          COMMENTS:  Purpose of this bill. According to the author, higher  
          education access is an essential element of California's Master  
          Plan for Higher Education (Master Plan).  However, in recent  
          years, the state's budget crisis led California's public  
          colleges and universities to turn away otherwise qualified  








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          students and increase student fees and tuition.  During this  
          period of economic volatility, the author notes that a  
          disturbing trend developed where California institutions focused  
          new admissions efforts on out-of-state students who pay higher  
          tuition prices.  According to the author, as the economy  
          improves and funding for our public postsecondary educational  
          institutions increases, it is time for the state to enshrine a  
          critical principal of the Master Plan in state law.  This bill  
          establishes the California First Act, to guarantee undergraduate  
          admission for all eligible California resident applicants and to  
          ensure reporting to the Legislature on resident undergraduate  
          admission.  The author believes this bill appropriately  
          reaffirms and refocuses CSU and UC on educating California  
          students, while still maintaining the beneficial infusion of  
          talent from nonresidents.


          Qualified freshman resident students.  The Master Plan calls for  
          freshman eligibility pools for UC and CSU.  UC is to draw its  
          incoming freshman class from the top 12.5% (one-eighth) of  
          public high school graduates.  CSU is to draw its applicant pool  
          from the top 33% (one-third) of public high school graduates.   
          Freshman applicants are required to complete a set of high  
          school coursework (known as "A-G" requirements); in 2012-13, 39%  
          of high school graduates had successfully completed A-G  
          requirements.  UC and CSU have additional freshman admission  
          criteria, including requiring certain test scores and GPAs.  UC  
          and CSU currently report on whether they are accommodating  
          eligible freshman students; UC asserts it has been admitting all  
          eligible students, although not necessarily to the campus and  
          program of choice.  CSU claims it has denied access to over  
          18,000 eligible freshman applicants.  However, according to the  
          LAO, because an eligibility study has not been conducted since  
          2007, UC and CSU have no way of knowing if they are actually  
          admitting or denying students in compliance with the Master  
          Plan.  











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          Qualified transfer resident students.  The Master Plan calls for  
          UC and CSU to accept qualified transfer students who complete 60  
          units of transferable credit at a community college and meet  
          minimum GPA requirements.  For UC the minimum GPA is 2.4 and for  
          CSU the minimum GPA is 2.0.  UC indicates it is currently  
          admitting all eligible transfer students, however not all  
          students are being accepted into their campus or program of  
          choice.  CSU reports denying admission to 11,800 eligible  
          transfer students in fall 2014.





          CSU local service areas.  CSU is designed to function as a  
          regional system, with students eligible for access to a CSU  
          campus in their general vicinity.  However, several campuses of  
          the CSU have raised admission standards for certain programs  
          above the systemwide standard and five campuses currently have  
          higher admission standards for every program offered - meaning  
          these campuses and programs deny admission to some local  
          students eligible to attend CSU.  The LAO notes that CSU has not  
          indicated how many of the 11,800 students turned away were  
          denied access to their local campus.  LAO has recommended, and  
          budget subcommittee staff has requested, CSU report on (1) the  
          number of eligible transfer students were denied access to their  
          local campus in fall 2014, and (2) the number of nonlocal  
          students admitted in fall 2014 to campuses denying admission to  
          eligible local transfer students. 





          Enrollment targets.  Historically, in the annual state budget  
          the Legislature specified enrollment levels for the CSU and UC  
          and provided additional funding in years when enrollment was  








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          expected to grow.  Enrollment growth funding has been based  
          primarily on changes in the college-age population and  
          eligibility studies.  In four of the last eight years, the state  
          has not set enrollment targets in the budget.  Without  
          enrollment-based budgeting, the state and universities have  
          disagreed over the number of California students UC and CSU are  
          expected to serve.  Both CSU and UC assert that they have more  
          enrolled resident students than the state has funded.  According  
          to the Legislative Analyst's Office (LAO), enrollment funding  
          allows the Legislature to set clear expectations about higher  
          education access and aligns state funding with costs.





          Committee consideration.  This bill requires CSU, and requests  
          UC, to admit all qualified undergraduate California residents.   
          As previously noted, the LAO has indicated that it is impossible  
          to determine whether CSU and UC are admitting all qualified  
          freshman students without an updated eligibility study.   
          Additionally, CSU has indicated it is not currently admitting  
          students for which it is not funded, and is not admitting all  
          eligible students in compliance with the Master Plan.  While UC  
          contends it is currently in compliance with the Master Plan, it  
          has also indicated that it will, moving forward, only admit  
          California students for which it is funded by the state.  In the  
          absence of appropriate funding, it is unclear how UC and CSU  
          would meet this requirement.  For example, would UC and CSU  
          raise student fees in order to ensure revenues necessary to meet  
          the admission guarantee established in this bill?  The author  
          and committee may wish to consider making the provisions of this  
          bill contingent upon the provision of adequate annual funding in  
          the Budget Act.  


          Related Legislation.










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          AB 352 (Gaines), pending in this Committee, establishes limits  
          on nonresident enrollment at campuses of the CSU and UC.  





          AB 1370 (Medina), pending in this Committee, would revise  
          existing provisions and add new requirements governing the  
          nonresident tuition at UC and CSU.  





          SCA 4 (Nguyen), pending in the Senate, would place on the ballot  
          a constitutional amendment to limit out of state students at UC  
          to not more than 10% and to limit undergraduate tuition and fees  
          at UC through the 2020-2021 academic year to the 2016-17 level.


          


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Community College League of California











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          Opposition


          None on File




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