BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2210


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          Date of Hearing:  April 19, 2016


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          AB 2210  
          (Harper) - As Amended March 17, 2016


          SUBJECT:  California State University:  student success fees


          SUMMARY:  Requires a campus student success fee to be approved  
          by a two-thirds vote of the California State University (CSU)  
          campus student body voting on the fee.  


          EXISTING LAW:  Establishes various requirements for the  
          implementation and rescission of CSU student success fees,  
          including:


          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 affirmatively, the fee would then be  
               adopted contingent on final approval by the Chancellor;  
               and, 








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             c)   Informs students that the fee may be rescinded by a  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            may be rescinded by student vote only after six years have  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


             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.


          FISCAL EFFECT:  Unknown.


          COMMENTS:  Background.  A number of CSU campuses have adopted  
          student success fees, which, in some cases, substantially  








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          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  
          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 reject the  
          proposed fee; yet, 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.  AB 1000 (Weber,  








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          Chapter 636, Statutes of 2016) enacted current policy on CSU  
          student success fees that is consistent with the requirements of  
          the CSU BOT resolution.  


          Purpose of this bill.  According to the author, "under  
          Proposition 26 (2010), the Legislature must meet a 2/3 vote  
          requirement to pass a fee, charge, or tax increase.  Local  
          governments must also meet this higher requirement to impose a  
          special tax.  A governing body asking voters to contribute  
          additional money towards operations is a serious question that  
          must not be taken lightly.  It is appropriate to ensure that an  
          overwhelming majority of the student body approves any new  
          student success fees, which can make up a significant portion of  
          the money they have set aside for educational expenses.  AB 2210  
          is needed to change the vote threshold for new student fees at  
          CSU campuses to match the current requirements at the state and  
          local government levels for new taxes or increases in existing  
          taxes.  This change will make sure that these fees are imposed  
          fairly and only when a vast majority of the students believe it  
          is needed."


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on File




          Opposition










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          California State University




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