BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2542
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          Date of Hearing:   April 20, 2010

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                 AB 2542 (Conway) - As Introduced:  February 19, 2010
           
          SUBJECT  :   Community colleges: Accelerating Student Success  
          College Initiative of 2010.

           SUMMARY  :   Creates a pilot program, the Accelerating Student  
          Success College (ASSC) Initiative of 2010, authorizing the  
          Chancellor of the California Community Colleges (CCC) to select  
          up to five CCCs for this designation, which would provide relief  
          from specified statutes, regulations, and funding methods in  
          return for meeting specified student success goals.   
          Specifically,  this bill  :  

          1)Codifies legislative intent that the statutory and regulatory  
            relief provided in this bill provide an opportunity to  
            accomplish the following:

             a)   Improve student success;

             b)   Encourage flexibility for college leaders and faculty to  
               accomplish existing state objectives in statutes and  
               regulation from which relief is being sought;

             c)   Hold ASSCs accountable for meeting measurable student  
               outcomes and to provide ASSCs with a method to change from  
               a rule-based to a performance-based accountability system;  
               and,

             d)   Provide for funding based on student completion of  
               educational courses and programs rather than class  
               attendance at the third week of enrollment.

          2)Authorizes the CCC Chancellor to select up to five CCCs from  
            different CCC districts for designation as an ASSC for an  
            initial five year term, provided the petitioners have met the  
            following requirements:

             a)   Consulted with their academic senates;

             b)   Held at least one public, publicly noticed hearing, as  
               specified; and,








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             c)   Included a strategic plan, as specified, which:

               i)     The CCC Chancellor shall use as the primary basis  
                 for determining whether to grant the petition for  
                 designation as an ASSC;

               ii)    May include relief from state statutes and  
                 regulations, as specified; 

               iii)   Must identify how the ASSC will attain the state's  
                 specified objective or objectives for the statute or  
                 regulation form which relief is being sought, as well as  
                 measurable objectives, metrics to be reported, and  
                 benchmark levels of results to be obtained; 

               iv)    Must include a written statement as to whether the  
                 exclusive representative, as specified, participated in  
                 the development of the strategic plan and the exclusive  
                 representative's position regarding the strategic plan;  
                 and,

               v)     Must have the concurrence of the exclusive  
                 representative if any relief requested in the strategic  
                 plan reasonably or directly relates to any provision of  
                 an existing labor agreement. 

          3)Requires the CCC Chancellor to approve any and all requests  
            for relief included in the strategic plans, except when the  
            CCC Chancellor finds any of the following:

             a)   The educational needs of students are not adequately  
               addressed;

             b)   The request would substantially increase state costs;  
               or,

             c)   The exclusive representative, as specified, was not a  
               participant in the development of the strategic plan.

          4)Provides that any strategic plan requesting relief is deemed  
            to have been approved if the Chancellor has not taken action  
            on the request for relief within 60 days following receipt of  
            the petition, as specified.









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          5)Changes how ASSCs receive their apportionments, as follows:

             a)   Allows an ASSC to receive funding based on the number of  
               students who complete the academic term rather than based  
               on the number of full-time equivalent students (FTES)  
               enrolled during the third week of the academic term.  

             b)   Allows an ASSC to receive an additional $1,000 per  
               student who has completed an associate degree or  
               certification in an occupational program, as specified, so  
               long as the amount does not exceed the FTES base funding as  
               reported to the CCC Chancellor during the previous full  
               academic year preceding designation as an ASSC.

             c)   Allows an ASSC to choose, during the first three years  
               of the ASSC pilot, to receive its funding based on third  
               week FTES enrollment or based on student completion.

          6)Provides that designation as an ASSC shall not be deemed to  
            within the scope of collective bargaining, as specified, and  
            requires the Public Employment Relations Board to take into  
            account the intent of the ASSC Initiative of 2010 when  
            deciding cases brought before it related to an ASSC.

          7)Requires the governing board of the ASSC to annually submit a  
            report to the Governor, the Legislature, the CCC Board of  
            Governors (BOG), and the CCC Chancellor that includes a  
            description of the progress made toward fulfilling the goals  
            outlined in existing law that are included in the CCC's annual  
            Accountability Reporting for the Community Colleges (ARCC)  
            report.

          8)Requires the ASSC to submit a report to the CCC Chancellor  
            that evaluates whether the relief provided as part of the  
            strategic plan, in whole or in part, has contributed to  
            achieving the intent of the Legislature as set forth in this  
            article and whether the article should be amended to authorize  
            relief from additional provisions of law.

          9)Requires reimbursement to state and local agencies be provided  
            if so determined by the Commission on State Mandates.

           EXISTING LAW  establishes CCC districts, administered by a  
          governing board, and requires CCC districts to adhere to  
          numerous statutes and regulations (Title 5 of the California  








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          Code of Regulations).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background  : The Institute for Higher Education  
          Leadership & Policy (IHELP) has issued several reports in the  
          last few years calling on California to make CCC student  
          completion, as well as access, a state priority, particularly in  
          light of the need for a more highly skilled workforce.   
          According to IHELP, less than one-fourth of the students who  
          enroll in CCC intending to complete a college program do so, and  
          much of the reason lies with the state's policies.  

          IHELP identifies the current financing system, which funds CCC  
          based on the number of FTES it reports at a date set early in  
          the term, as a policy that disproportionately emphasizes the  
          front end of the student's college pathway and does not  
          encourage support or reward for the student's success.  Thus,  
          IHELP recommends funding completions along with enrollments,  
          with bonus funding for completions by disadvantaged and  
          under-prepared students.

          In addition to funding changes, IHELP recommends the following  
          policy changes, among others:

          1)Increase flexibility in hiring in order to meet student  
            demand;
          2)Provide CCC more flexibility in the use of its funds;
          3)Allow CCC to keep fee revenues;
          4)Remove restrictions on campus-based fees;
          5)Develop an affordability policy based on the total cost of  
            college attendance;
          6)Revise assessment and placement policies; and,
          7)Revise campus matriculation policies to provide clear guidance  
            that students can follow to progress quickly toward completion  
            of their selected programs.

           Process for development of this proposal  :  Several years ago,  
          four CCC presidents, including the late Chris McCarthy of Napa  
          Valley College, Steven Kinsella of Gavilan College, John Nixon  
          of Mt. San Antonio College, and Bill Scroggins of the College of  
          the Sequoias, began collaborating with the Campaign for College  
          Opportunity (Campaign), the sponsor of this bill, on ways in  
          which they could increase student success.  After researching  
          the many statutory and regulatory provisions governing the CCC,  








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          including those identified by IHELP, the four presidents decided  
          the first changes should include the way they receive funding  
          for students and flexibility in student services and  
          articulation.  Thus, they decided not to pursue potentially  
          contentious policy changes such as changing hiring practices and  
          expenditure requirements.  

           How would the funding work  ?  As mentioned previously, CCCs are  
          funded based on the number of FTES they report during the third  
          week of instruction, which serves as an incentive to enroll  
          students without addressing completion.  This bill would  
          partially implement the recommendation of IHELP and fund ASSCs  
          based on the number of students who successfully complete the  
          semester.  If this amount is less than the FTES apportionment  
          the ASSC would have received based on the third week FTES  
          census, the ASSC can receive an additional $1,000 per student  
          who completes an associate degree or certificate in an  
          occupational field, up to the amount of FTES the ASSC received  
          during the prior full academic term (prior to determination as  
          an ASSC).  ASSC could also choose to receive their funding based  
          on the current system for the first three years of the five year  
          pilot in order to give the ASSC time to implement the statutory  
          flexibilities and "ramp up" to demonstrate success. Since the  
          ASSC cannot receive more FTES under this bill than current law,  
          does this bill provide enough incentive for CCCs to trade in the  
          certainty of the current system for the uncertainty of funding  
          based on student completion? 

           Specific relief measures in this bill  :  ASSC colleges would have  
          the following flexibility from statutes and regulations in the  
          following areas:

          Pre-requisites and Matriculation:  This bill would exempt ASSCs  
          from the regulatory requirements, described below, that must be  
          met to establish prerequisites, which IHELP has found to limit  
          the ability of CCCs to help students succeed.  IHELP has  
          recommended increased flexibility for CCCs to require  
          orientation, assessment, and counseling in order to ensure that  
          students are appropriately supported to succeed as they begin  
          college, as well as the ability to establish prerequisites that  
          will help guarantee that students are prepared to successfully  
          complete their courses.

          CCC policies on assessment and placement are part of a larger  
          set of activities called "matriculation services" that were  








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          first codified in the Seymour-Campbell Matriculation Act of 1987  
          (Education Code sections 78210-78218).  It is the CCC BOG  
          regulations for implementing the above statutes (Title 5) that  
          provide the framework in which assessment and placement operate.  
          These regulations were first adopted in 1990 but were revised in  
          1991 following a legal challenge by the Mexican American Legal  
          Defense and Educational Fund, which was concerned that the  
          approach to assessing and placing students in courses was  
          disproportionately directing Latino students into remedial  
          courses. The revised regulations made several clarifications  
          that have shaped the process since then.  With these changes,  
          Title 5 regulations:

          1)Specify that a basic skills course prerequisite can only be  
            established if districts validate through "sound research  
            practices" that a student is "highly unlikely to succeed in  
            the course" unless the student has completed the prerequisite  
            course;

          2)Require that prerequisites must be established on a  
            course-by-course basis and not across the curriculum (e.g., a  
            college's history department faculty may not set a requirement  
            that students attain proficiency in reading before taking any  
            history courses offered by the department that require reading  
            college-level history texts; prerequisites must instead be  
            validated for each prerequisite in relation to each history  
            course); and, 

          3)Require districts to use "multiple measures" to place students  
            into courses, i.e., districts cannot use any single assessment  
            instrument for placement purposes.

          It is common procedure across academia for colleges to designate  
          certain courses as prerequisites for entry into another course  
          or set of courses.  The regulations adopted by the CCC BOG place  
          strict constraints on colleges' ability to establish  
          prerequisites.  First, while prerequisites may readily be set  
          for sequences within a discipline (e.g., Economics 101A as a  
          prerequisite for Economics 101B), prerequisites cannot be set  
          across disciplines (e.g., English as a prerequisite for History  
          or Algebra as a prerequisite for Chemistry) without firm  
          documentation that students who do not take the prerequisite  
          course are unlikely to succeed in the course which has set the  
          prerequisite.  Second, "blanket prerequisites" may not be set,  
          as noted earlier.  These requirements can be prohibitive to  








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          meet, particularly for smaller colleges that lack sufficient  
          institutional researchers to provide the necessary  
          documentation.

          Transfer Functions and Lower Division Transfer Patterns:  This  
          bill would allow CCC faculty to self-certify courses for  
          transferability to ensure that University of California (UC) and  
          California State University (CSU) faculty cannot refuse to  
          accept a previously accepted course for transfer, changing the  
          rules on students in the middle of their transfer preparation.
           
          Existing law (Education Code section 66730-66744) requires the  
          segments of higher education to develop transfer agreements that  
          specify the requirements a CCC student must meet to transfer to  
          the public four-year segments of higher education.  Currently,  
          CCC articulation officers submit course information to the UC  
          and CSU system offices via the On-Line Service for Curriculum  
          and Articulation Review in order to have those courses to be  
          transferable.  UC and CSU faculty, staff and administrators  
          evaluate the information, and the UC and CSU system offices  
          forward decisions to CCC articulation officers.  Approved  
          outlines from previous years are carried forward unless a CCC  
          reports that a course has changed substantially since its  
          review.  

          Minimum Qualifications for Tutoring Coordinators:  This bill  
          would allow, among other things, students to directly access  
          student learning centers, rather than requiring a referral from  
          a faculty member or counselor.  

          Current regulation (Title 5, section 58170) requires individual  
          student tutoring to be provided through a designated learning  
          center that is supervised by a person with a master's degree and  
          requires students seeking tutoring services to be referred by a  
          counselor or instructor on the basis of an identified learning  
          need.  The Campaign argues that the current referral process  
          restricts student access to necessary services, since many  
          students come from first generation college and low income  
          backgrounds, accounting for their lack of finesse at accessing  
          services.  

          Concurrent Enrollment:  This bill would lift the restrictions on  
          the number of high school students who can concurrently enroll  
          at an ASSC.  









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          Current law (Education Code section 48800) provides for limited  
          concurrent enrollment of elementary and secondary school pupils  
          in CCC coursework.  CCCs are allowed to admit a limited number  
          of K-12 students as "special admits," primarily in order to give  
          these students advanced education at the college level.  The  
          Campaign argues that these limitations, particularly the 5% high  
          school pupil limit to attend summer session, impedes student  
          preparation and early participation in college.  The Campaign  
          cites a statement by W. David Pelham, former President of the  
          College of the Sequoias, who conducted a longitudinal study of  
          students who participated in concurrent enrollment programs,  
          finding that these students completed CCC programs at a higher  
          rate that students who did not participate in concurrent  
          enrollment programs.

           Collective bargaining provisions  :  It is unclear why ASSCs would  
          not be subject to collective bargaining laws, and staff is  
          unaware of research that has identified collective bargaining as  
          a negative factor in student success.  The Committee may wish to  
          remove this language unless information can be provided to  
          demonstrate the need for this change.

           Arguments in support of this bill  :  The Campaign argues that  
          during this time of scarce resources and budget cuts, and in  
          light of the significant national research calling for  
          outcomes-based funding and CCC's low student completion rates,  
          this is the time to experiment with innovative solution that  
          could improve student outcomes.  According to the Californians  
          for Justice Education Fund, this bill will test a new innovative  
          opportunity to improve student retention and completion rates,  
          creating an opportunity to develop best practices to serve  
          under-served student populations, including first-generation  
          college students, students of color, and low-income students.

           Arguments in opposition to this bill  :  The California Federation  
          of Teachers (CFT) expresses concern that this bill will endanger  
          quality control by withholding funds from classes until the  
          student completes the class, which could result in grade  
          inflation and coerce faculty to "coerce students who are not  
          successfully matriculating in a given class."  CFT also believes  
          the faculty should have a more central role in the development  
          of the strategic plan than outlined in this bill, since the  
          faculty must address and approve any changes regarding  
          prerequisites, matriculation, and self-certification for  
          transfer.  Finally, CFT and the Faculty Association of  








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          California Community Colleges express concern that designation  
          as an ASSC shall not be deemed to within the scope of collective  
          bargaining.

           Reporting requirement  :  This bill requires the ASSC to issue two  
          reports: the first is an annual report to the Governor,  
          Legislature, CCC BOG and CCC Chancellor on the ASSC's progress  
          toward meeting the goals articulated in existing law and  
          reported in the CCC's annual ARCC report, and the second is a  
          report to the Chancellor on the success of the ASSC pilot.  Does  
          the annual ARCC data report need to be submitted to the Governor  
          and Legislature, or should it continue to be submitted to the  
          Chancellor who would then compile a report to the Governor and  
          Legislature?  Should the CCC Chancellor be required to compile  
          and analyze the final ASSC reports and issue a report to the  
          Governor and Legislature?

           Previous legislation  :  AB 78 (Portantino) of 2009, which was  
          held in the Assembly Appropriations Committee, and AB 1409  
          (Portantino) of 2008, which was held in the Senate  
          Appropriations Committee, would have removed some of the  
          restrictions on concurrent enrollment.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Bill Scroggins, President, College of the Sequoias
          Californians for Justice Education Fund
          Campaign for College Opportunity (sponsor)
          College Options
          College Summit
          David Wolf, Executive Director Emeritus for the Accrediting  
          Commission for Community and Junior Colleges of the Western  
          Association of Schools and Colleges
          Families in Schools
          John Nixon, President, Mt. San Antonio College
          Justice Matters
          Long Beach City College
          Los Angeles Area Chamber of Commerce
          Morris and Garritano Insurance
          Parent Institute for Quality Education
          PolicyLink
          Progressive Christians Uniting
          San Francisco Chamber of Commerce








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          Stanislaus County Office of Education
          Steven Kinsella, Superintendent/President, Gavilan College

           Opposition 
           
          California Federation of Teachers
          Faculty Association of California Community Colleges
           

          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960