BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1483


                                                                    Page  1





          Date of Hearing:  April 28, 2015


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 1483  
          (Gatto) - As Introduced February 27, 2015


          SUBJECT:  University of California:  Science, Technology,  
          Engineering, Arts, and Mathematics Campus


          SUMMARY:  Requires the Legislative Analyst's Office (LAO) to  
          conduct a study of, and report to the Legislature on, the  
          feasibility of establishing a campus of the University of  
          California (UC) devoted to science, technology, engineer, arts,  
          and mathematics (STEAM); and, allocates $50,000,000 from the  
          General Fund (GF) to the UC Regents for the establishment of,  
          and acquisition of land for UC STEAM campus.  Specifically, this  
          bill:  


          1)Requires the LAO to conduct a study of the feasibility of  
            establishing a campus of the UC devoted to STEAM.


          2)Requires the LAO, on or before January 1, 2017, to report the  
            findings of the feasibility study, to the Legislature, as  
            specified.


          3)Appropriates $50,000,000, from the GF, without regard to  









                                                                    AB 1483


                                                                    Page  2





            fiscal years, to the Controller for allocation to the UC  
            Regents for the establishment of, and acquisition of land for,  
            the UC STEAM campus.


          4)Specifies that the Controller shall not allocate the funds, as  
            appropriated in this measure, to the UC Regents until the  
            Controller determines that the Regents have approved the  
            establishment of, and decided on the location of, the UC STEAM  
            campus.


          EXISTING LAW:  


          1)Establishes UC as a public trust and confers the full powers  
            of the UC upon the UC Regents.  The Constitution establishes  
            that the UC is subject to legislative control only to the  
            degree necessary to ensure the security of its funds and  
            compliance with the terms of its endowments.  Judicial  
            decisions have held that there are three additional areas in  
            which there may be limited legislative intrusion into  
            university operations: authority over the appropriation of  
            state moneys; exercise of the general police power to provide  
            for the public health, safety and welfare; and, legislation on  
            matters of general statewide concern not involving internal  
            university affairs (Constitution of California, Article IX,  
            Section 9).
          2)Declares the intent of the Legislature that sites for new  
            institutions or branches of the CSU shall not be authorized or  
            acquired unless recommended by the California Postsecondary  
            Education Commission (CPEC) and that CPEC should advise the  
            Legislature and the Governor regarding the need for, and  
            location of, new institutions and campuses of public higher  
            education (Education Code Sections 66900 and 66904).  











                                                                    AB 1483


                                                                    Page  3





          FISCAL EFFECT:  $50,000,000 from the GF.


          COMMENTS:  Need for this measure.  According to the author,  
          "This bill seeks to address the rising demand for workers  
          trained in science, technology, engineering, and math (STEM) as  
          well as the growing inaccessibility of the University of  
          California system."


          The author contends, "In California, the growing demand for STEM  
          graduates and workers has been coupled with the increasing  
          inaccessibility of the state's premier public university system.  
          For years, the demand for UCs has outpaced the capacity of UC  
          campuses.  The number of applications to UC campuses has  
          increased for 11 straight years and in 2015, 193,873 students  
          applied for at least one campus (a 5.8% increase from 2014).    
          In 2014 UC accepted less than 90,000 of its 183,272 applicants  
          and matriculated less than 45,000. "


          California Postsecondary Education Commission (CPEC).  There is  
          currently no coordinating entity for higher education in  
          California.  Existing law establishes CPEC to be responsible for  
          coordinating public, independent, and private postsecondary  
          education in California and to provide independent policy  
          analyses and recommendations to the Legislature and the Governor  
          on postsecondary education issues.  However, over time, CPEC's  
          budget was reduced, resulting in its inability to perform all of  
          its responsibilities, casting doubt on its effectiveness and  
          triggering calls for its restructuring.  As part of his 2011-12  
          Budget, Governor Brown proposed eliminating CPEC.  Both Houses  
          rejected this proposal, but the Governor exercised his line item  
          veto to remove all General Fund support for CPEC, describing the  
          commission as "ineffective." In his veto message, however, the  
          Governor acknowledged the need for coordinating and guiding  
          state higher education policy and requested that stakeholders  









                                                                    AB 1483


                                                                    Page  4





          explore alternative ways these functions could be fulfilled.   
          CPEC shut down in Fall 2011, transferring its federal Teacher  
          Quality Improvement grant program to the California Department  
          of Education and extensive data resources to the CCC  
          Chancellor's Office. 


          Review process for new campus.  California Postsecondary  
          Education Commission's review process for a potential new campus  
          of the UC, CSU, and/or CCC was very layered and structured,  
          including the need for the asking segment to submit a  
          preliminary notice at the beginning of the segment's planning  
          process for a new campus or off-site center.  The preliminary  
          notice had to include information on the proposed institution's  
          general location, type of operations, time frame for  
          development, projected enrollment, and near-term capital outlay  
          plan.  


          The next step in CPEC's process was for the asking segment to  
          submit a letter of intent when they were within five years (two  
          for a CCC) of requesting state funds for capital outlay.  To  
          note, the letter of intent had to contain similar information as  
          the preliminary notice but with greater specificity.  CPEC then  
          responded to the letter of intent within 60 days and would  
          include any concerns with the proposal and opined as to if the  
          segment should proceed with development plans.


          The last step in the review process was for the asking segment  
          to submit to CPEC a study that provided a justification for the  
          campus or center on the site identified.  The needs study  
          included nine different areas (enrollment, alternatives,  
          academic planning, student services, costs, accessibility,  
          effects on other institutions, environmental impact, and  
          economic efficiency) according to which the proposal was  
          evaluated.  CPEC responded to the needs study within one year  









                                                                    AB 1483


                                                                    Page  5





          for the new campus and within six months for a new center; their  
          response included a formal recommendation to the Governor and  
          the Legislature as it if a new campus and/or center should be  
          created.


          Committee considerations.  1) Appropriate entity to fill the  
          role of CPEC?  With the state no longer having a coordinating  
          body for higher education, how is the state going to fulfill the  
          former CPEC functions?  This measure tasks the LAO, to conduct a  
          feasibility study as to the need for the creation of a STEAM UC  
          campus; is the LAO the correct entity to conduct the study? 


          The Committee may want to consider whether or not it tasks  
          various entities with fulfilling the work of the former CPEC or  
          halting all projects that would otherwise be under the  
          jurisdiction of the former CPEC until the state creates a new  
          higher education coordinating body.


          2) Era of constrained resources.  During a time when the  
          Legislature is asking the Governor for increased funding in  
          order to allow for the UC to be able to admit more qualified  
          students, and when the UC is looking for revenues in order to  
          successfully grow its newest campus, Merced, is this an  
          appropriate time to appropriate funds for a purpose that may not  
          be well suited at this time?


          The UC is the number one producer of STEM degrees in the state.   
          According to the UC, California's universities produced nearly  
          50,000 STEM degrees in 2012-2013, with 23,000 of the STEM  
          degrees being conferred by the UC.  Additionally, since 2000,  
          UC's continued focus on education in the STEM fields has led to  
          an increase in its share of STEM degrees produced in California  
          and the nation.  The UC has increased its share of California  









                                                                    AB 1483


                                                                    Page  6





          STEM degrees by three percentage points since 2000, and raised  
          its share of all STEM degrees produced in the nation almost a  
          percentage point. Is there an actual need for the creation of a  
          STEAM or STEM specific UC campus?  


          3) Author's intent for STEAM or STEM?  The author states that  
          this bill is to address the need for more STEM graduates, but  
          the measure as drafted references "arts" as one of the emphasis  
          that the new UC campus would house.  The author may wish to  
          delete "arts" out of the bill if the intent is solely for the  
          emphasis to be in STEM subjects.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file.




          Opposition


          None on file.




          Analysis Prepared by:Jeanice Warden / HIGHER ED. / (916)  
          319-3960









                                                                    AB 1483


                                                                    Page  7