BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 42 (Liu) - Postsecondary education: California Commission on  
          Higher Education Performance and Accountability.
          
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          |Version: April 7, 2015          |Policy Vote: ED. 8 - 0          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 11, 2015      |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  This bill reestablishes the California Commission on  
          Higher Education Performance and Accountability (CCHEPA), as a  
          successor agency to the former California Postsecondary  
          Education Commission (CPEC), modifies the make-up of the prior  
          commission, reduces and clarifies the Commission's functions and  
          responsibilities, and deletes a number of obsolete reporting  
          requirements.


          Fiscal  
          Impact:  
           This bill results in estimated costs in the low millions  
            General Fund.  (see staff comments)
           Additional significant administrative costs could be incurred  
            for restoration of a database and related information as well  
            as conducting required studies included in this bill.  CSU  
            indicates minor ongoing costs.








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          Background:  Existing law establishes the CPEC to be responsible for  
          coordinating public, independent, and private postsecondary  
          education in California and providing independent policy  
          analysis and recommendations to the Legislature and the Governor  
          on postsecondary education issues. 

          Existing law also requires the CPEC to: (1) act as a  
          clearinghouse for postsecondary education information and to  
          serve as a primary source of information for the Legislature,  
          Governor, and other agencies and, (2) develop and maintain a  
          comprehensive database that supports longitudinal studies of  
          individual students as they progressed through the state's  
          postsecondary educational institutions through the use of a  
          unique student identifier.  Additionally, the CPEC was to  
          provide each of the educational segments access to the data made  
          available to the CPEC for purposes of the database in order to  
          support statewide, segmental and individual campus educational  
          research needs.  (Education Code § 66900 et. seq.) 

          In 2011, Governor Brown vetoed CPEC funding of about $2 million  
          General Fund, resulting in its closure in November 2011.   
          Although the Governor eliminated all General Fund support for  
          CPEC, its statutory authority remains intact. 

          Proposed Law:  This bill reestablishes the California Commission  
          on Higher Education Performance and Accountability (CCHEPA), as  
          a successor agency to the former California Postsecondary  
          Education Commission (CPEC), modifies the make-up of the prior  
          commission, reduces and clarifies the Commission's functions and  
          responsibilities, and deletes a number of obsolete reporting  
          requirements.

          Specifically, this bill:

                 Modifies the make-up of the prior commission.  It  
               provides for 17 members of the general public and  
               eliminates representation from different segments and  
               requires that the CCHEPA be a representative of civic,  
               business, and public school leaders, and that members serve  
               staggered six year terms.  

                 Modifies the make-up of the advisory committee to the  
               CCHEPA to include one student representative enrolled  








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               during their time of service and an executive officer from  
               among the independent California colleges and universities,  
               as specified.

          This bill reduces and clarifies the CCHEPA's functions and  
          responsibilities as follows: 

             A.   Deletes a number of functions previously assigned to the  
               CPEC. 

             B.   Requires that it articulate and monitor state  
               performance objectives for higher education. 

             C.   Requires that it advise the Legislature and the Governor  
               regarding the need for, and location of, new institutions  
               and campuses of public higher education as well as review  
               of proposals by the public segments for new programs, as  
               specified.

             D.   Requires that it act as a clearinghouse for  
               postsecondary education information and as a primary source  
               of information for the Legislature, the Governor, and other  
               agencies. 

             E.   Requires that it develop and maintain a comprehensive  
               database that ensures data compatibility, supports  
               longitudinal studies, is compatible with K-12 data systems,  
               provides internet access to data for the sectors of higher  
               education in order to support statewide, segmental and  
               individual campus educational research needs. 

             F.   Requires that it review all proposals for changes in  
               eligibility pools for admission to public institutions and  
               segments of postsecondary education and that it  
               periodically conduct eligibility studies. 

             G.   Requires, through its use of information and its  
               analytic capacity, that it inform the identification and  
               periodic revision of state goals and priorities for higher  
               education, in a manner that is consistent with the goals of  
               higher education and performance metrics as established in  
               statute.  In addition, this bill requires that it evaluate  
               both statewide and institutional performance in relation to  
               these goals and priorities.








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             H.   Requires that it manage data systems and maintain  
               programmatic, policy, and fiscal expertise to receive and  
               aggregate information reported by the institutions of  
               higher education in this state. 


          Related  
     Legislation:1. AB 1348 (John A. Pérez, 2014) would have established the  
          California Higher Education Authority, its governing board and  
          its responsibilities, as specified, phased-in over a three-year  
          period.  AB 1348 was held in the Senate Appropriations  
          Committee.

          AB 2190 (John A. Pérez, 2012) would have established a new state  
          oversight and coordinating body for higher education. AB 2190  
          was held in the Assembly Appropriations Committee.

          SB 1138 (Liu, 2011-12) would have established a central data  
          management system for the higher education segments.  SB 1138  
          was held in the Senate Appropriations Committee.


          Staff  
          Comments:  This bill establishes a successor agency to the  
          former CPEC.

          The reestablishment of a higher education coordinating agency is  
          likely to result in annual costs in the low millions, based upon  
          the historical funding level of CPEC ($2 million General Fund  
          per year).  Though many functions of the former CPEC are  
          eliminated in this bill, its core coordinating, planning,  
          analyzing, advising and reporting functions remain.

          Additional one-time funding of several hundreds of thousands may  
          be needed to reconstruct missing data and reestablish the  
          database described in the bill since the CPEC was eliminated.   
          This bill requires CCHEPA to recommence conducting eligibility  
          studies, as the CPEC did.  These studies examine the extent to  
          which UC and CSU draw enrollment from their eligibility pools as  
          established in the Master Plan for Higher Education.  UC is  
          supposed to draw its incoming freshman class from the top 12.5  
          percent (one-eighth) of public high school graduates.  CSU is  
          supposed to draw its applicant pool from the top 33 percent  








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          (one-third) of public high school graduates.  Each study is  
          estimated to incur one-time costs of up to $2 million.  UC  
          estimates the cost for its participation in each study to be  
          about $500,000 and CSU to be about $175,000.  

          In addition, CSU indicates ongoing staffing costs of $60,000 to  
          respond to data requests of the new entity.  UC indicates that  
          its ongoing costs would be absorbable.


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