BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                        VETO 


          Bill No:  SB 42
          Author:   Liu (D)
          Amended:  9/2/15  
          Vote:     21  

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

           SENATE APPROPRIATIONS COMMITTEE:  6-1, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza
           NOES:  Nielsen

           SENATE FLOOR:  38-1, 6/1/15
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Pan, Pavley, Roth, Stone, Vidak,  
            Wieckowski, Wolk
           NOES:  Nielsen
           NO VOTE RECORDED:  Runner

           SENATE FLOOR:  38-0, 9/10/15
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Monning, Moorlach,  
            Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak,  
            Wieckowski, Wolk
           NO VOTE RECORDED:  Mitchell, Morrell

           ASSEMBLY FLOOR:  73-4, 9/8/15 - See last page for vote

           SUBJECT:   Postsecondary education:  Office of Higher Education  
                     Performance and Accountability








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          SOURCE:    Author


          DIGEST:   This bill establishes the Office of Higher Education  
          Performance and Accountability as the statewide postsecondary  
          coordination and planning entity, outlines its responsibilities,  
          functions and authorities, and establishes an advisory board to  
          the office (comprised of legislative appointees) to examine and  
          make recommendations regarding its functions and operations, and  
          to review and comment on the office's recommendations to the  
          Governor and Legislature.  

          ANALYSIS:

          Existing law:

          1)Establishes the 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 (UC) Regents. 
               ii)    The California State University (CSU) Trustees. 
               iii)   The California Community Colleges (CCC) Board of  
                 Governors. 
               iv)    The Association of Independent Colleges and  
                 Universities.

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


             c)   The President or designee of the State Board of  








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               Education.


             d)   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. 


             e)   Two student representatives.  (EC § 66901)

          This bill establishes the OHEPA as the statewide postsecondary  
          education planning and coordination entity.  It:  

          1)Establishes the OHEPA within the Governor's Office and:


             a)   Places the OHEPA under the direct control of an  
               Executive Director appointed by the Governor and subject to  
               Senate confirmation.  


             b)   Provides that the Executive Director is responsible for  
               all duties, powers, and responsibilities vested in the  
               OHEPA, including contracting for relevant professional or  
               consultant services


             c)   Requires the Director to appoint any staff positions  
               authorized by the Governor.


          2)Establishes an Advisory Board to the OHEPA, and:


             a)   Requires that the Board: 


               i)     Meet at least quarterly,


               ii)    Be subject to open meeting requirements.









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               iii)   Review and comment on any recommendations made by  
                 the OHEPA to the Governor and the Legislature. 


               iv)    Develop an annual report on the condition of  
                 California higher education.


               v)     Issue an annual performance review of the Director.   



             b)   Provides that Board members shall serve without  
               compensation, except reimbursement for expenses.  


             c)   Prescribes its membership as follows:


               i)     Three members with experience in postsecondary  
                 education appointed by the Senate Committee on Rules; 


               ii)    Three members with experience in postsecondary  
                 education appointed by the Speaker of the Assembly; and, 


               iii)   The chair of the Senate Committee on Education and  
                 the chair of the Assembly Committee on Higher Education  
                 to serve as ex officio members.


          3)Requires the OHEPA to actively seek input from and consult  
            with the advisory board and higher education segments and  
            stakeholders, as appropriate, in the conduct of its duties and  
            responsibilities.  


          4)Declares that the OHEPA exists for the purpose of advising the  
            Governor, the Legislature and other appropriate government  
            officials and institutions of postsecondary education and  








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            outlines its functions and responsibilities. It: 


             a)   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.


             b)   Requires that it review and make recommendations  
               regarding cross-segmental and interagency initiatives and  
               programs in areas that include, but are not limited to,  
               efficiencies in instructional delivery, financial aid,  
               transfer, and workforce coordination.  


             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  
               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  








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               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 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.


          5)Authorizes the OHEPA to require the governing boards and the  
            institutions of public postsecondary education to submit data  
            to the office on plans, programs, costs, student selection and  
            retention, enrollments, and other specified information, and  
            requires the Office to furnish information concerning these  
            matters to the Legislature and Governor as requested by them. 


          6)Requires the OHEPA to annually report to the Legislature and  
            the Governor regarding its progress in achieving the  
            aforementioned objectives and responsibilities by December  
            31st of ear year. 


          7)Requires the LAO to review and report to the Legislature  
            regarding the performance of the OHEPA in fulfilling its  
            functions and responsibilities.by January 1, 2020.


          8)Sunsets these provisions on January 1, 2021.




          Comments









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          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  
            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  








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               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  
               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  








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               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:   Yes

          According to the Assembly Appropriations Committee, in its last  
          full year of operation, CPEC's General Fund operating budget was  
          $1.9 million for the equivalent of 18 positions. The new office  
          established in this bill would likely have a somewhat smaller  
          budget. In addition, the office would incur one-time information  
          technology costs and other start-up costs in the low hundreds of  
          thousands of dollars. The three public higher education segments  
          report the following costs to work with the new office and to  
          respond to data requests:


          1)UC.  Ongoing costs of $50,000 for one-half position.


          2)CSU. Ongoing costs of $110,000 for one position.


          3)CCC. Estimates ongoing costs of up to $440,000 for four  
            positions, based on prior workload demands involving CPEC.




          SUPPORT:   (Verified11/9/15)


          California Competes
          California Faculty Association
          Campaign for College Opportunity
          Little Hoover Commission


          OPPOSITION:   (Verified11/9/15)








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          None received


          GOVERNOR'S VETO MESSAGE:


               I am returning Senate Bill 42 without my signature.

               This bill would establish an Office of Higher Education  
               Performance and Accountability to advise the Governor and  
               Legislature on state goals and priorities for higher  
               education. The bill would also create an advisory board  
               consisting of legislators and others to be appointed by the  
               Legislature to annually review the performance of this  
               office, which would sunset by the end of 2020.

               The call to improve postsecondary educational outcomes is  
               laudable. The goals established by SB 195 in 2013 -  
               improving access and success, aligning degrees and  
               credentials with the state's economic, workforce and civic  
               needs, and ensuring the effective and efficient use of  
               resources - are still important measures that should guide  
               us in developing higher education policies for the state.

               While there is much work to be done to improve higher  
               education, I am not convinced we need a new office and an  
               advisory board, especially of the kind this bill proposes,  
               to get the job done.


          ASSEMBLY FLOOR:  73-4, 9/8/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,  
            Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,  
            Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  








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            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
          NOES:  Beth Gaines, Gatto, Levine, Melendez
          NO VOTE RECORDED:  Chávez, Dahle, Eggman


          Prepared by:Kathleen Chavira / ED. / (916) 651-4105
          11/13/15 16:03:40


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