BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 969|
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                                 THIRD READING


          Bill No:  SB 969
          Author:   Liu (D) and Romero (D) et al
          Amended:  6/1/10
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  8-0, 4/21/10
          AYES: Romero, Huff, Alquist, Hancock, Liu, Price, Simitian,  
            Wyland
          NO VOTE RECORDED:  Maldonado

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Denham, Leno, Price, Wolk,  
            Wyland, Yee
          NO VOTE RECORDED:  Cox, Walters


           SUBJECT  :    Public postsecondary education: mandatory  
          statewide student
                      fee

           SOURCE  :     Author


           DIGEST  :    This bill makes a variety of changes relating to  
          resident undergraduate fee policy at the California State  
          University and the University of California.

           ANALYSIS :    At present, there is no statutory guiding  
          policy on student fees beyond the current fiscal condition  
          and the stated needs of University of California (UC) and  
          California State University (CSU), as negotiated in the  
          budget deliberations.  
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          Current law further provides that statutes related to UC  
          (and most other aspects of the governance and operation of  
          UC) are applicable only to the extent that the Regents of  
          UC make such provisions applicable.
          Current law confers upon the Trustees of the CSU the  
          powers, duties, and functions with respect to the  
          management, administration, and control of the CSU system. 

          Current law establishes the Cal Grant Entitlement Programs  
          to provide grant assistance for fee payment in the UC, CSU  
          and private institutions in California, to the extent that  
          students are financially and academically eligible for such  
          support. 

          This bill:

          1.Limits fee increases to the percentage change in  
            California per capita personal income over the proceeding  
            fiscal year.

          2.Prohibits fee increases from taking effect until six  
            months after the adoption of those increases, as July 1,  
            2011.

          3.Requires the segments to develop a rational and  
            transparent policy for adjusting fees, in consultation  
            with student representatives.

          4.Requires notification to students of upcoming fee  
            increases and of available financial aid.

          5.Requires the California Postsecondary Education  
            Commission to annually review and report on the  
            institutional compliance an implementation of these  
            policies.

           Related Legislation

           SCA 26 (Denham), Session 2009-10, amends the State  
          Constitution and impose upon the University of California a  
          waiting period of 180 days before mandatory student fees  
          could take effect, and limits annual fee increases to no  
          more than a cumulative 10 percent over the preceding  

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          academic year.  In Senate Education Committee.

          SB 917 (Denham), Session 2009-10, similar to SCA 26,  
          however the application of the provisions in the bill would  
          effect the California State University.  In Senate  
          Education Committee.

          SB 1199 (Liu), Session 2009-10, requires the governing  
          boards of the UC and CSU to develop student fee increase  
          methodologies consistent with specified direction, and  
          includes many of the same concepts found in SB 969.  In  
          Senate Education Committee.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          Per the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                2010-11     2011-12     
           2012-13   Fund
           
          Fee containment                                   Unknown,  
          but significant pressure to                       General
                              to keep pace with the cost of
                              higher education, commencing in
                              2011-12 fiscal year

           OPPOSITION  :    (Verified  6/1/10)

          California Federation of Teachers
          California State University
          University of California

           ARGUMENTS IN SUPPORT  :    According to the various authors,  
          college students are being subjected to significant, and  
          for many, unaffordable increases in student fees.  Tying  
          student fees to the overall cost of educating a student  
          provides more predictability for families, the  
          universities, and the state, but also, the process of  
          establishing and adjusting fees provides a measure of  
          transparency and accountability for university operations.


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           ARGUMENTS IN OPPOSITION  :    The opponents state that this  
          bill could add costs for California's higher education  
          entities without benefiting students or their families.   
          They see little need to establish such a policy and reject  
          the notion that fees must rise in higher education.   
          Additionally, the bill purports to establish a policy that  
          student fees should not exceed a specified portion of  
          undergraduate education costs.  Establishing such a  
          percentage has proven evanescent at best in the past.  
           

          PQ:do  6/2/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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