BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         SB 42|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 42
          Author:   Liu (D)
          Amended:  4/7/15  
          Vote:     21  

           SENATE EDUCATION COMMITTEE:  8-0, 3/25/15
           AYES:  Liu, Huff, Block, Hancock, Leyva, Mendoza, Pan, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  6-1, 5/25/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza
           NOES:  Nielsen

           SUBJECT:   Postsecondary education:  California Commission on  
                     Higher Education Performance and Accountability


          SOURCE:    Author


          DIGEST:  This bill recasts the California Postsecondary  
          Education Commission as the California Commission on Higher  
          Education Performance and Accountability, modifies the make-up  
          of the prior commission, reduces and clarifies the Commission's  
          functions and responsibilities, deletes obsolete reporting  
          requirements, and makes conforming and technical changes.


          ANALYSIS:   


          Existing law:

          1)Establishes the California Postsecondary Education Commission  








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            (CPEC) to be responsible for coordinating public, independent,  
            and private postsecondary education in California and to  
            provide independent policy analysis and recommendations to the  
            Legislature and the Governor on postsecondary education  
            policy.  (Education Code § 66900 et. seq.)

          2)Prescribes the composition of CPEC to include the following 17  
            members:

             a)   One representative from each of the following bodies:

               i)     The University of California Regents. 
               ii)    The California State University (CSU) Trustees. 
               iii)   The California Community College Board of Governors.  

               iv)    The Association of Independent Colleges and  
                 Universities.

             a)   The chair or designee of the Council for Private  
               Postsecondary and Vocational Education.


             b)   The President or designee of the State Board of  
               Education.


             c)   Nine representatives of the general public, with three  
               appointed by the Governor, three by the Senate Rules  
               Committee, and three by the Speaker of the Assembly. 


             d)   Two student representatives.  (EC § 66901)

          This bill: 

          1)Recasts CPEC as the California Commission on Higher Education  
            Performance and Accountability (CCHEPA).

          2)Modifies the make-up of the prior commission.  More  
            specifically, it provides for 17 members of the general public  
            appointed as follows:

             a)   Requires that four members be appointed by the Speaker  
               of the Assembly.







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             b)   Requires that four members be appointed by the Senate  
               Rules Committee.

             c)   Requires that nine members, including the chairperson,  
               be appointed by the Governor subject to Senate  
               confirmation. 

             d)   Requires that the CCHEPA be representative of civic,  
               business, and public school leaders. 

             e)   Requires that CCHEPA members serve staggered six year  
               terms.

          3)Modifies the make-up of the advisory committee to the CCHEPA  
            to include one student representative enrolled during their  
            time of service and an executive officer from among the  
            independent California colleges and universities, as  
            specified. 

          4)Makes the Director of the CCHEPA subject to Senate  
            confirmation.

          5)Reduces and clarifies the CCHEPA's functions and  
            responsibilities as follows:

             a)   Deletes a number of functions previously assigned to  
               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.

             d)   Requires that it review proposals by the public segments  
               for new programs, as specified, and make recommendations  
               regarding those proposals to the Legislature and the  
               Governor. 

             e)   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  







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               agencies. 

             f)   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. 

             g)   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. 

             h)   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 consistent with the existing goals and metrics  
               outlined in statute by SB 195 (Liu, Chapter 367, Statutes  
               of 2013) and in the 2013-14  and 2014-15 Budget Acts,  and   
               that it biennially evaluate both statewide and  
               institutional performance in relation to these goals and  
               priorities.

             i)   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.

             j)   Requires that it perform all other duties assigned by  
               the Legislature.

          6)Deletes obsolete reporting requirements.

          7)Makes conforming and technical changes.

          Comments

          1)Need for the bill.  California's education and workforce needs  
            cannot be addressed by any single segment.  According to the  
            author, the state's approach to higher education must become  
            more comprehensive if it is to ensure state-level workforce  
            needs and priorities are being met.  Numerous reports,  
            including legislative reviews of the Master Plan for Higher  







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            Education and more recent reports from higher education  
            experts, have called for California to establish a central  
            higher education body.  This central body is an important  
            element of the state's ability to honor its promise of  
            affordable, high quality postsecondary education for all high  
            school graduates and adults who could benefit from instruction  
            offered at California's colleges and universities. Without  
            such an entity, California cannot systematically plan to  
            address the current and future needs of all its students and  
            the overall economy. 

            This bill represents the next necessary step in establishing  
            greater clarity and accountability for our higher education  
            system's performance in meeting the statewide goals for  
            postsecondary education (SB 195, Liu, Chapter 367, Statutes of  
            2013) of equity, access, and success; alignment with workforce  
            needs; and the effective and efficient use of resources.  This  
            bill reflects national trends, recommendations from several  
            recent reports, and recommendations by the Legislative  
            Analyst.

          2)Related reports/recommendations.  A number of recent reports  
            have cited the need for an independent body to steward a  
            public agenda for higher education.  These include the  
            following:

          a)   Improving Higher Education Oversight (Legislative Analyst's  
               Office (LAO), January 2012) - In this report, the LAO  
               raised concerns that in the wake of CPEC's closure, the  
               future of higher education oversight was unclear.  The LAO  
               noted that while the public segments had stepped in to  
               assume some roles previously performed by CPEC, they  
               expressed concerns about how institutional and public  
               interests would be balanced.  The LAO also noted that while  
               CPEC's performance had been problematic, several important  
               functions performed by CPEC had been lost.  Among other  
               things, the LAO recommended the Legislature re-establish an  
               independent oversight body and increase the body's  
               independence from the public higher education segments,  
               assign the body with limited and clear responsibilities,  
               and develop a more unified governing board appointment  
               process.

          b)   Charting a Course for California's Colleges: State  







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               Leadership in Higher Education (California Competes,  
               February 2014) - The report noted that California is one of  
               only two states nationwide (the other being Michigan)  
               without comprehensive oversight or coordination of higher  
               education.  The report opined that the state needs an  
               independent agency to develop a public agenda for higher  
               education that links the needs of the state's economy to  
               the degree attainment outputs of the state's institutions.  
               Further, that independence means that the entity would not  
               have representatives of the segments on its decision-making  
               body to allow it to maintain its impartiality.  Finally,  
               the report recommended that the state's priorities be  
               focused on the goals of access to quality programs and  
               outcomes from those programs; that the entity should be a  
               coordinating agency and the segments should remain  
               autonomous; and that its primary functions should be  
               planning and policy development, data collection, analysis  
               and monitoring, and administration of state financial aid  
               programs.

          c)   A New Vision for California Higher Education: A Model  
               Public Agenda (Institute for Higher Education Leadership  
               and Policy, March 2014) - The report highlights the  
               challenges faced by California and offers a model public  
               agenda centered on these goals: addressing access and  
               attainment; equity, affordability and efficiency; and state  
               policy leadership. As regards policy leadership the report  
               opines that this function is best filled by an executive  
               branch entity, such as a California Office of Higher  
               Education, that reports to the Governor.  The  
               responsibilities of this office would be to, among other  
               things, provide policy leadership and advise the Governor  
               on higher education budget and policy development,  
               administer financial aid programs, manage a coordinated  
               higher education data system that allows for analysis of  
               enrollments, progression, and completion across all public  
               segments, manage a higher education accountability process,  
               and conduct analysis of goals and targets to assess how  
               well regional efforts aggregate to meet statewide goals.
      
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:







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           This bill results in estimated costs in the low millions  
            General Fund.  

           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.


          SUPPORT:   (Verified5/28/15)


          California Faculty Association
          Campaign for College Opportunity
          Little Hoover Commission


          OPPOSITION:   (Verified5/28/15)


          Academic Senate for California Community Colleges
          Faculty Association of California Community Colleges


          Prepared by:Kathleen Chavira / ED. / (916) 651-4105
          5/31/15 11:34:48


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