BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1711            
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          |Author:    |McCarty                                              |
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          |Version:   |June 22, 2016                            Hearing     |
          |           |Date:     June 29, 2016                              |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Kathleen Chavira                                     |
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          Subject:  University of California:  nonresident student  
          enrollment


            SUMMARY
          
          This bill, as a condition of receipt of annual Budget Act  
          funding, requires the University of California (UC) to establish  
          a policy regarding admission of nonresident undergraduate  
          students to require that the academic qualifications of these  
          students stand in the upper one-half of resident undergraduate  
          students admitted to that campus, as specified, and requires the  
          UC to report to the Legislature annually regarding actions to  
          ensure compliance with the policy, as specified. 

            BACKGROUND
          
          The California Constitution establishes the UC, a public trust  
          to be administered by the Regents of the UC and grants the  
          Regents full powers of organization and government, subject only  
          to such legislative control as may be necessary to insure  
          security of its funds, compliance with the terms of its  
          endowments, statutory requirements around competitive bidding  
          and contracts, sales of property and the purchase of materials,  
          goods and services.  (Article IX, Section (9)(a) of the  
          California Constitution)

            ANALYSIS
          
          This bill, as a condition of receipt of annual Budget Act  







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          funding:

          1)   Requires the UC to establish a policy regarding admission  
               of nonresident undergraduate students by July 1, 2017. It:

                    a)             Requires that the policy require each  
                    campus of the UC admit only nonresident undergraduate  
                    students who exceed the academic qualifications of  
                    resident undergraduate students admitted to that  
                    campus.

                    b)             Requires that a nonresident  
                    undergraduate student admitted to a campus stand in  
                    the upper one-half of resident undergraduate students  
                    admitted to that campus. 

          2)   Requires the UC to report to the Legislature annually  
               regarding actions to ensure compliance with the policy.   
               Specifically, it requires the report to include but not be  
               limited to:

                    a)             The academic indicators used in the  
                    admission process.

                    b)             The median score of admitted resident  
                    undergraduate students for each indicator at each  
                    campus.

                    c)             The number of admitted nonresident  
                    undergraduate students who scored below the resident  
                    median on each indicator at each campus. 

          STAFF COMMENTS

          1)   Need for the bill.  According to the author, there has been  
               a growing trend in the University of California (UC) to  
               enroll more out-of-state and international students at the  
               expense of California students. Systemwide nonresident  
               enrollment at the UC was 5 percent in 2007 and is currently  
               at its highest level of 15.5 percent while resident  
               enrollment has remained stagnant.  On March 2016, a report  
               by the State Auditor found that UC's admissions policies  
               have disadvantaged and undermined their commitment to  
               California students in favor of nonresidents. This bill  








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               implements recommendations from the report by requesting  
               that the UC adopt a policy that ensures that nonresidents  
               meet the same academic standards as the top 50 percent of  
               California residents who are admitted at each campus.

          2)   Current status of out-of-state admissions.  The UC reports  
               that for the 2015-16 academic year, 15.5 percent of its  
               undergraduates systemwide were non-residents. According to  
               the UC, nonresident enrollment for 2015-16 was capped at  
               those campuses that had seen the largest growth, Berkeley  
               (25 percent), Los Angeles (19 percent). San Diego (17  
               percent) was directed to cap their enrollment of  
               nonresidents at 20 percent.  
          
          3)   Related budget activity.  The 2015 Budget Act provided $25  
               million to the UC contingent on increasing California  
               resident enrollment by 5,000 students, holding resident  
               tuition flat in 2015-16 and 2016-17, and redirecting  
               nonresident institutional aid to support resident students.  


          The 2016 Budget Act provided an additional $18.5 million to the  
          UC contingent upon enrolling 2,500 more California residents by  
          the 2017-18 school year and upon the UC regent's adoption of a  
          university-wide policy capping the enrollment of nonresidents.
               
          4)   BSA Audit.  On March 29, 2016, the California State Auditor  
               released a report, The University of California, Its  
               Admissions and Financial Decisions have Disadvantaged  
               California Resident Students.  The report lists as its key  
               findings that the university has undermined its commitment  
               to residents in an effort to increase its revenue by  
               recruiting and enrolling nonresidents. The report  
               specifically cites that:
               
                  a)        Despite a 52 percent increase in resident  
                    applicants, resident enrollment increased by only 10  
                    percent over the last 10 years while nonresident  
                    enrollment increased by 432 percent.

                  b)        The University lowered the admission standard  
                    for non-residents and admitted nearly 16,000  
                    nonresidents over the past three years with academic  
                    scores that fell below the median of admitted  








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                    residents.  

                  c)        Admitted residents were increasingly denied  
                    their campus of choice, yet admitted nonresidents were  
                    always admitted to one of their campuses of choice.

                  d)        Mandatory fees doubled for residents while  
                    they increased for nonresidents at a much lower rate. 

               Among other things the Bureau of State Audits recommended  
               that the University of California (UC) revise its admission  
               standard for nonresidents to require campuses to admit only  
               nonresidents with admissions credentials that place them in  
               the upper half of the residents it admits.
                
               In response, the UC asserts that its admissions policies  
               overwhelmingly favor Californians, and that state funding  
               determines how many California residents the UC enrolls.

          1)   UC Admissions policy.   The Board of Admissions and  
               Relations with Schools (BOARS),  oversees all matters  
               relating to the admissions of undergraduate students. BOARS  
               regulates the policies and practices used in the admissions  
               process and recommends and directs efforts to improve the  
               admissions process. According to the UC, its Comprehensive  
               Review Policy governs the admission and selection of  
               undergraduates at its nine campuses.  Freshmen applications  
               are assessed using multiple measures of achievement (high  
               school course completion, grade point average, and  
               standardized test scores) and promise while considering  
               applicants' educational context.  Comprehensive review  
               involves consideration of 14 factors, utilized by all  
               campuses, but the specific evaluation process and weight  
               given to each factor differ from campus to campus, and year  
               to year, based on campus-specific goals and needs.

               According to the UC this same comprehensive review is  
               applied to nonresident applicants.  

          2)   UC Admission Guarantee.  UC's admission guarantee policy,  
               applicable to all California resident high school  
               graduates, includes Statewide Eligibility (SE), Eligibility  
               in the Local Context (ELC), and Entitled to Review (ETR).    
               The UC guarantees admission to the system (though not  








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               necessarily to the first-choice campus) to all California  
               applicants who are in the top 9 percent of California high  
               school graduates (SE), or in the top 9 percent of their  
               respective high school class (ELC).  The top 9 percent is  
               determined by a formula based on grade point average (GPA)  
               and standardized test scores. 

               In 2012, the University of California (UC) implemented a  
               new freshman admissions policy, Entitled to Review (ETR).    
               Under this policy, students are not guaranteed admission,  
               but are guaranteed a comprehensive review of their  
               application if they have completed 11 of 15 required a-g  
               courses with a weighted GPA of at least 3.0 by the end of  
               their junior year.  The intent was to confer the right to a  
               full application review to a broader pool of college-going  
               California students while ending the practice of excluding  
               many high-achieving students solely on the basis of UC's  
               extensive standardized testing requirements.

               According to the UC, it does not provide a similar  
               guarantee of admission to nonresident students.

          3)   BOARS policy change on admission of nonresidents.  In 2011,  
               BOARS approved new guidelines regarding the admission of  
               non-resident and international students that eliminated  
               wording that nonresidents "should demonstrate  stronger  
               admission criteria than CA residents by generally being in  
               the upper half of those ordinarily eligible" for admission.  
                BOARS revised its principles to state that admitted  
               nonresidents should "compare favorably to California  
               residents admitted." In addition, a December 2011  
               resolution by BOARS resolves that to the fullest extent  
               possible campuses should evaluate and select residents and  
               nonresidents according to the same criteria and scores,  
               enrollment targets for nonresidents should be set such that  
               admitted nonresidents compare favorably to at each campus,  
               campus Senate admissions committees should work with local  
               campus administration, and if needed BOARS and systemwide  
               administration to ensure these principles are being met.   
               At the end of each admission cycle BOARS resolved that each  
               campus provide an assessment of the extent to which the  
               compare favorable rule is being met to include a  
               description of, the evaluation/selection criteria,  
               measures, and supporting data.








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          4)   Compromise? According to the UC, inconsistent with the  
               central tenet of their admissions policy of comprehensive  
               review, this bill would frame UC's approach to admissions  
               in a manner overly reliant on test scores and GPAs to  
               compare the relative merits of students.  The UC reports  
               that the current policy on nonresidents includes the  
               following provisions:

               a)        Nonresident applicants must have a higher GPA  
                    than resident applicants.

               b)        There is no guarantee of admission for  
                    nonresidents, while there is for California residents.

               c)        Nonresident students must be at least as  
                    qualified, on average, as admitted students across the  
                    system. 

          In addition the UC indicates that the President of the  
          University will ask the Academic Senate to review its current  
          policy regarding nonresident admission and the University is  
          committed to full transparency on their compliance with the  
          policy by reporting annually on the relative qualifications of  
          admitted residents and non-residents. 

          If it is the desire of the committee to advance this bill, staff  
          recommends the bill be amended beginning on page 3, line 10 to  
          strike the current language and insert the following:

                  a)        The University of California (UC), in  
                    collaboration with the Academic Senate, shall ensure  
                    that implementation of any admissions policy it adopts  
                    regarding admission of nonresident undergraduate  
                    students shall include guidance that ensures that the  
                    academic qualifications for admitted nonresident  
                    undergraduate students generally exceeds, on average,  
                    the academic qualifications of resident undergraduate  
                    students admitted at each campus.  

                  b)        The UC shall annually report to the  
                    Legislature regarding the implementation of this  
                    policy, including the mean and median scores on  
                    academic indicators of admitted nonresident and  








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                    resident undergraduate students at each campus. 

          1)   Similar legislation.  SCA 12 (Runner and Huff) proposed to  
               modify Article IX of the State Constitution to require the  
               UC Regents to ensure that priority in admissions is given  
               to applicants who are California residents.  SCA 12 was  
               heard and passed by this Committee on April 20, 2016, but  
               was subsequently held in the Senate Judiciary Committee.
            
          SUPPORT
          
          None received on this version. 

            OPPOSITION
           
           University of California 

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