BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:              SCA 12             
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          |Author:    | Runner and Huff                                     |
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          |Version:   | April 13, 2016                             Hearing  |
          |           |Date:     April 20, 2016                             |
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          |Urgency:   | No                    |Fiscal:     |Yes             |
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          |Consultant:| Kathleen Chavira                                    |
          |           |                                                     |
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          Subject:  University of California:  students

           
          NOTE:   This measure has been referred to the Committees on  
          Education and Elections and Constitutional Amendments.  A "do  
          pass" motion should include referral to the Elections and  
          Constitutional Amendments Committee.

            SUMMARY
          
          This measure proposes to modify Article IX of the State  
          Constitution to require the Regents of the University of  
          California (UC) to ensure that priority in admissions is given  
          to applicants who are California residents.

            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 constitutional amendment proposes to place before the  







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          voters a change to the California Constitution to require that  
          the Regents act in the best interests of the people of  
          California and honor a fiduciary duty to California residents,  
          as specified by ensuring that priority in admissions is given to  
          applicants who are California residents. 

          STAFF COMMENTS
          
          1)   Need for the bill.  According to the author, while UC  
               admission websites proclaim that the UC prioritizes  
               admission of California residents, at several UC campuses  
               non-residents are granted admission at a dramatically  
               higher rate than California students. Increasingly,  
               students and parents share the perception that California  
               students are being passed over for less qualified  
               non-residents willing to pay more.  This constitutional  
               amendment would reiterate that the primary purpose and  
               obligation of the UC is to serve the students of  
               California.  

          2)   Current status of out-of-state admissions.  The UC reports  
               that for the 2014-15 academic year, 13 percent of its  
               undergraduates systemwide were non-residents. The UC also  
               notes that the average for other comparable public  
               institutions nationally is 26 percent.  The chart below  
               summarizes the level of enrollment of non-residents at all  
               University of California (UC) campuses for the 2012 and  
               2013 academic years.  According to the UC, non-resident  
               enrollment for 2015-16 was capped at those campuses that  
               have seen the largest growth, Berkeley (25 percent), Los  
               Angeles (19 percent), and San Diego (17 percent) was  
               directed to cap their enrollment of non-residents at 20  
               percent.  



















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          3)   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 non-residents. 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 non-resident  








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                    enrollment increased by 432 percent.

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

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

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


               According to the report, in 2011, the UC Board on  
               Admissions and Relations with Schools (BOARS) eliminated  
               wording in its 2009 nonresident undergraduate admissions  
               principles 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" and left application of this standard  
               to campuses.  
                
               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)   Constitutional amendment requirements.   As a proposed  
               Constitutional 
               Amendment, this measure would not go into effect unless  
               approved by the majority of voters at a statewide election.  
                This proposal requires a 2/3 vote of each house in order  
               to be submitted to the voters. It does not require approval  
               by the Governor.  

          2)   Conflicting Legislation?  Legislative counsel has noted a  
               potential conflict between this bill, and SCA 1 (Lara),  
               also on the Committee's agenda today, as both propose  
               changes to Section 9, Article IX of the California  








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               Constitution.  While the provisions of each proposed  
               Constitutional amendment do not appear to be in conflict,  
               this bill has been referred to the Senate Committee on  
               Elections and Constitutional Amendments which has  
               jurisdiction over bills to amend the constitution and can  
               appropriately determine any necessary amendments to address  
               a conflict.  

          3)   Related legislation?  While this Committee has heard  
               several bills that propose to restrict undergraduate  
               non-resident enrollment this measure imposes no such  
               restriction.  In response to recent policies adopted by the  
               UC in regard to non-resident admissions, this bill imposes  
               a broad responsibility on the Regents to ensure that  
               California resident students who apply to the UC are  
               extended priority in admissions. 
            
          SUPPORT
          
          None received. 

            OPPOSITION
           
           None received on this version. 

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