BILL NUMBER: AB 970 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 25, 2012
AMENDED IN ASSEMBLY JANUARY 26, 2012
AMENDED IN ASSEMBLY JUNE 3, 2011
AMENDED IN ASSEMBLY JUNE 1, 2011
AMENDED IN ASSEMBLY MAY 27, 2011
INTRODUCED BY Assembly Members Fong and Block
(Principal coauthor: Assembly Member John A. Pérez)
(Coauthors: Assembly Members Brownley, Galgiani, and Portantino)
FEBRUARY 18, 2011
An act to add Article 3.7 (commencing with Section 66028) to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
relating to postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
AB 970, as amended, Fong. University of California and California
State University: systemwide student fees: student financial
aid report. fees.
(1) Existing
Existing law, known as the Donahoe Higher Education
Act, sets forth the missions and functions of the segments of public
postsecondary education in the state. The California State
University, which is governed by the Trustees of the California State
University (trustees), and the University of California, which is
governed by the Regents of the University of California (regents),
are 2 of the segments of public postsecondary education. The
provisions of the Donahoe Higher Education Act apply to the
University of California only to the extent that the regents act by
resolution to make them applicable.
Under existing law, the California State University and the
University of California are authorized to charge fees to students
attending their respective institutions.
This bill would establish the Working Families Student Fee
Transparency and Accountability Act as a part of the Donahoe Higher
Education Act, and would establish various policies relating to
student fees and student financial aid at the University of
California and the California State University.
The bill would require any mandatory systemwide fees charged to
resident students at the California State University and the
University of California to be known, and referred to, as "systemwide
fees" or "fees," and would provide that these fees shall not be
known or referred to as "tuition." The bill would require references
to those fees in any policies, rules, or regulations of the
California State University and the University of California to be
consistent with the requirement that the fees be known and referred
to as "fees" and not "tuition," and would require corrections to be
made when the policy, rule, or regulation is updated or reprinted.
The bill would prohibit any increase in the mandatory
systemwide fees charged to resident students enrolled in the
University of California or the California State University from
being effective before 6 months have elapsed after the date on which
the fee increase is adopted. The bill would require the
regents and the trustees to comply with prescribed public notice and
student consultation procedures prior to adopting an increase in
mandatory systemwide fees charged to resident students
enrolled in their respective segments , and
would prohibit them from adopting a mandatory systemwide fee
increase before specified dates, except as specified . The bill
would require the regents and the trustees, by April 2, 2013, to
develop methodologies for the adjustment of fees in
accordance with a prescribed procedure. The bill would require 33% of
revenues of an increase to existing mandatory systemwide student
fees to be reserved for student financial support, as specified
a list of factors that would be required to be taken
into consideration when developing recommendations to adjust
mandatory systemwide fees .
The bill, commencing with the 2012-13 academic year, would
require the trustees and the regents to provide annual reports on
expenditures and financial aid to the Legislature, and would require
the Legislative Analyst's Office to annually review and report to the
Legislature its findings, conclusions, or recommendations regarding
the implementation of policies implemented pursuant to the bill.
Because the provisions of the bill would be added to the Donahoe
Higher Education Act, they would apply to the University of
California only to the extent that the regents act by resolution to
make them applicable.
(2) Existing law establishes various student financial aid
programs under the administration of the Student Aid Commission, and
establishes eligibility requirements for the receipt of awards under
those programs for participating students attending qualifying
institutions.
This bill would require the commission, no later than July 31,
2013, to provide a report to the Legislature that details the
policies and interactions between various state and federal financial
aid programs, including the interaction between systemwide and
campus-based student fees, institutional financial aid at the
University of California and the California State University, Cal
Grants, and federal financial aid programs.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The California 1960 Master Plan for Higher Education declared
that a tuition-free higher education is in the best interest of the
state and should be continued for all California residents.
(b) The state has long recognized the value of providing broad
access to postsecondary education to the state's diverse residents
and the state remains committed to ensuring affordability
and access at the state's public colleges and universities.
has demonstrated that commitment by investing in postsecondary
education. This act seeks to continue the state's historic commitment
to ensuring affordability and access and maintaining quality through
the state's public universities, while recognizing the fiscal
challenges that confront both the state and postsecondary education.
(c) According to the 2012 Public Policy Institute of California
report, "Defunding Higher Education," the University of California
and the California State University have responded to funding cuts by
reducing course offerings and limiting enrollment, as well as
increasing tuition and fees. Despite large increases in the number of
high school graduates, state general fund spending on postsecondary
education has declined notably. In 2010-11, the state spent $1.6
billion less on postsecondary education than it did 10 years earlier.
(c)
(d) The state's working families who have children
planning to attend the state's public colleges and
universities, or have children currently attending the
state's public colleges and universities , have
endured consistent and skyrocketing
significant increases in mandatory systemwide student fees.
While financial aid has alleviated some of the impact from this
increase in fees, the increased cost of a college education remains
of concern for working families.
(d)
(e) A report by the California Postsecondary Education
Commission, published in 2011 and entitled "College Costs and Family
Income: The Affordability Issue at the UC and the CSU," detailed that
rising costs are putting making an
education at California's public universities out of reach
more of a financial strain for many Californians
, and that as their incomes have not
kept pace with these rising costs, particularly for lower
and middle-income families who have seen little income growth in
recent years increasing costs .
(e)
(f) Between 1990 and 2009, costs for a University of
California student living on campus rose by 70 percent. Costs for a
California State University student living with his or her family
rose by over 80 percent. In this period, median family income in
California grew by only 16 percent. With rising costs, and flat
or falling incomes, the cost of supporting a student is taking an
increasing percentage of the incomes of these families.
(f) With rising costs, and flat or falling incomes, supporting a
student is taking an increasing percentage of Californians' incomes.
In 2000, the cost of attendance for a University of California
student living on campus was 25 percent of median family income in
California. By 2009, this cost grew to 39 percent of median family
income. Costs at California State University also grew relative to
incomes, from 19 percent of median family income in 2000 to 29
percent of median family income in 2009.
(g) In 2009, the total cost of attendance for a student living on
campus at the University of California was $27,100, an increase of 18
percent from three years earlier. Costs at the California State
University increased by 23 percent, to $20,100, during that period.
(h) Even with grants and fee waivers, the net cost of a year of
attendance at a University of California or a California State
University campus is one-third of annual income for a lower income
family. Net costs for middle-income families are about one-quarter of
annual income. As a result, students may have to
work additional hours or increase their debt burden to
meet college expenses.
(i) More and more students have to work longer hours and increase
their debt burden during a particularly challenging economy and, as
fees and other costs increase, the work and loan burden on students
is increasing at a faster rate than grant aid.
(j)
(i) Increased costs can hinder a student's progress
toward a degree, forcing students to cut their class load to work
more hours, leave for semesters at a time, or drop out of school
entirely.
(k)
(j) According to the "Student Expenses and Resources
Survey" conducted by the Student Aid Commission during the 2006-07
academic year, approximately 74 percent of all undergraduate students
in the California State University system worked for pay for an
average of 24 hours per week. Fifty-one percent of these students
reported working over 20 hours per week on average. In the University
of California system, approximately 54 percent of all undergraduate
students worked for pay for an average of 17 hours per week, and 23
percent of these students reported working over 20 hours per week on
average.
(l)
(k) The Institute for College Access and Success, in
its report "Student Debt and the Class of 2009," showed that average
debt accumulation for California students at public universities has
risen by 18 percent since 2005. In California, the average student
debt for students who completed a bachelor's degree was $17,326, and
national data show that some of the lowest income students who
generally have family incomes under $50,000 are much more likely to
borrow, and borrow more than their higher income peers, impacting job
opportunities and choices after graduation.
(m)
(l) The Regents of the University of California have
raised mandatory systemwide student fees by 68 percent since the
2007-08 academic year, and over 200 percent in the past decade. The
Trustees of the California State University have raised mandatory
systemwide student fees by 76 percent since the 2007-08 academic
year, and over 242 percent in the past decade.
(n)
(m) The state does not have a proper accounting of the
total costs of educating students at either the University of
California or the California State University, or the actual uses of
student fee revenues, and it is critical for the state's public
colleges and universities to demonstrate transparency and
accountability to the general public.
(o)
(n) The state, in partnership with the state's colleges
and universities, is committed to ensuring that all financially
needy students have the financial assistance necessary for them to
enroll in institutions of higher education and complete their
postsecondary education objectives.
(p)
(o) The principles expressed in this act seek to
continue the state's historic commitment to ensuring access to the
state's public universities for all Californians by ensuring
sufficient notification to the general public, students, and the
state's working families of any increases in student fees, proper
consultation with students, and accountability and transparency with
respect to student fee revenue.
(q)
(p) Changes in resident student fees or in student
financial aid funding or packaging policies should take into
consideration the total cost to the student of attending the
university, including mandatory campus-based student fees, housing
and living expenses, as well as all other expenses associated with
university attendance.
(r)
(q) Any increases in mandatory systemwide fees should
be accompanied by appropriate increases in funding for need-based
student financial aid.
SEC. 2. (a) It is the intent of the Legislature
that financially needy students be able to access public colleges
and universities.
(b) No later than July 31, 2013, the Student Aid Commission shall
provide a report to the Legislature that details the policies and
interactions between the various state and federal financial aid
programs, including the interaction between systemwide and
campus-based student fees, institutional financial aid at the
University of California and the California State University, Cal
Grants, and federal financial aid programs. The Trustees of the
California State University shall, and the Regents of the University
of California are requested to, cooperate with the Student Aid
Commission and provide any information and data, including
institutional financial aid information and data, requested by the
commission for purposes of this section.
(c) A report submitted pursuant to subdivision (b) shall be
submitted in compliance with Section 9795 of the Government Code.
(d) This section is repealed on January 1, 2017, pursuant to
Section 10231.5 of the Government Code.
SEC. 3. SEC. 2. Article 3.7
(commencing with Section 66028) is added to Chapter 2 of Part 40 of
Division 5 of Title 3 of the Education Code, to read:
Article 3.7. Working Families Student Fee Transparency and
Accountability Act
66028. This article shall be known, and may be cited, as the
Working Families Student Fee Transparency and Accountability Act.
66028.1. For purposes of this article, the following terms have
the following meanings:
(a) "Campus-based fees" means the fees that are imposed on
students at individual campuses of the University of California or
the California State University, that must be paid by all registered
students to whom the fees apply. "Campus-based fees" include fees to
fund: (1) student-related services and programs, including, but not
limited to, referenda-based student health insurance programs; (2)
construction and renovation of student buildings and other facilities
such as student centers and recreation facilities; and (3)
authorized student governments, registered campus organizations, and
student government-related and registered campus organization-related
programs, events, and other activities.
(a) "Consultation" or "consult" means a meeting between the
appropriate statewide student association representatives and
representatives from the University California or the California
State University, whichever is applicable, in which the
representatives from the institutions provide, at minimum, all the
following information at least five days before the meeting:
(1) A justification for a fee increase proposal, setting forth the
facts supporting the fee increase.
(2) A statement specifying the purposes for which revenue derived
from a fee increase will be used.
(3) A description of the efforts to mitigate the impact of the fee
increase on needy students.
(4) The potential impact to students, including, but not limited
to, the changes to the minimum workload burden for all students, if
applicable, institutional financial aid awards, and the average
student loan debt for undergraduates.
(5) Alternative proposals that can be considered in lieu of the
proposed net student fee revenue proposal.
(b) "Cost of attendance" means the tuition and fees, books and
supplies, room and board, transportation, and miscellaneous personal
expenses for an undergraduate California resident student, as used in
determining financial aid eligibility.
(b)
(c) "Mandatory systemwide fees" means the fees that
resident students enrolled in the California State University or the
University of California, as applicable, are required to pay in order
to enroll in courses for the academic term pursuant to any law or
any policy adopted by the trustees or the regents, as applicable.
(c)
(d) "Regents" means the Regents of the University of
California.
(d)
(e) "Resident" means a student who is exempt from
paying nonresident tuition pursuant to Chapter 1 (commencing with
Section 68000) of Part 41.
(e)
(f) "Trustees" means the Trustees of the California
State University.
66028.2. The following state policies apply to student financial
aid for resident students , and mandatory systemwide fees
charged to, resident students enrolled at the
University of California and the California State University:
(a) As any changes in resident student
mandatory systemwide fees and financial aid resources are
considered, the state should have an understanding of the
impact that these changes will have on both current and prospective
students. Any negative impact on financially needy students shall be
mitigated impact on students should be explained to
students, including, but not limited to changes to the minimum work
or loan burden for all students, if applicable, institutional
financial aid awards, and the average student loan debt for
undergraduate students .
(b) Students should be consulted before increases on
student mandatory systemwide fees are proposed,
so that students can provide input and ask questions regarding the
need for any increases in mandatory systemwide fees.
(c) Adequate advance notice should be provided to students
regarding any future student mandatory
systemwide fees, thereby allowing the students and their
families greater time to prepare for the mandatory systemwide
fees to be assessed.
(d) In order to ensure that access is not precluded for any
eligible student, and particularly for financially needy students,
all current and prospective students should be provided with timely
information concerning student financial aid, including the processes
associated with applying for and obtaining student financial
assistance.
(e) To ensure that financially needy students are provided with
assistance in managing the total cost of their university attendance,
financial aid programs, including institutional aid, should be
aligned with the distinct financial needs of the respective segment's
student populations and student fee levels.
(f)
(e) In order for the general public to maintain
confidence in the state's public colleges and universities, every
effort should be made to ensure increased transparency in the uses of
any student mandatory systemwide fee
revenue and the rationale for making any student
implementing mandatory systemwide fee increases.
66028.3. (a) Any mandatory systemwide fees charged to resident
students at the California State University and the University of
California shall be known, and shall be referred to, as "systemwide
fees" or "fees" and shall not be known or referred to as "tuition."
(b) All references to mandatory systemwide fees charged to
resident students by the California State University and the
University of California, including references in any policies,
rules, or regulations of those institutions, shall be consistent with
subdivision (a).
(c) In order to comply with the requirements of this section,
references in any policy, rule, or regulation of the California State
University and the University of California to "tuition" shall be
corrected when the policy, rule, or regulation is updated or
reprinted.
66028.4. Any increase in the mandatory systemwide fees charged to
resident students enrolled in the University of California or the
California State University shall not be proposed by the trustees or
the regents, unless, at least 90 days prior to providing public
notice of a proposed increase in mandatory systemwide fees pursuant
to subdivision (a) of Section 66028.5, the respective governing board
consults with appropriate student representatives from the statewide
student body organization representing the students at its
respective segment.
66028.5. (a) Prior to adopting any increase in mandatory
systemwide fees charged to resident students, the regents or the
trustees, as applicable, shall provide public notice of the proposed
increase in a noticed public agenda for a meeting of the respective
governing board. The public notice of the proposed student fee
increase shall, at a minimum, include all of the following:
(1) A justification for the fee increase setting forth facts
supporting the fee increase.
(2) A thorough analysis of impacts on access, persistence, and
graduation of historically underrepresented students and low- to
middle-income students, with a detailed description of measures to
mitigate the impacts of the proposed increase in fees.
(3) A statement specifying the purposes for which any revenues
derived from an increase in fees will be used.
(b) The regents or the trustees shall not adopt any increase in
mandatory systemwide fees charged to resident students until at least
60 days have passed after providing public notice of the proposed
fee increase pursuant to subdivision (a). During the 60-day period,
the regents or the trustees, as applicable, shall encourage, solicit,
and receive public comments on the proposed increase in fees. The
comments, with appropriate responses to each of the comments, shall
be made available to the public at least 10 days prior to the meeting
at which the regents or the trustees propose to adopt the increase
in fees.
(c) Any increase in the mandatory systemwide fees charged to
resident students enrolled at the University of California or the
California State University shall not become effective until at least
six months have elapsed after the date on which the fee increase is
adopted.
(d) Following the adoption of an increase in mandatory systemwide
fees in accordance with this section, the respective segment shall
notify students of the student fees to be assessed in the upcoming
academic year. In addition, the respective segment shall
simultaneously inform students about the availability of student
financial aid and the procedures for obtaining that aid in order to
assist students with meeting the increased costs of attendance.
66028.3. (a) Ten days prior to holding a meeting to discuss or
adopt an increase in mandatory systemwide fees, the University of
California and the California State University shall provide public
notice of the proposed mandatory systemwide fee increase as a
discussion item in the public agenda for a meeting of the respective
governing board. The public notice shall allow for comments to be
received, both verbally and in writing, at the meeting and during the
45-day period required pursuant to subdivision (c). The public
notice of the proposed mandatory systemwide fee increase shall, at a
minimum, include all of the following:
(1) A justification for the fee increase proposal, setting forth
the facts supporting the fee increase.
(2) A statement specifying the purposes for which revenue derived
from a fee increase will be used.
(3) A description of the efforts to mitigate the impact of the fee
increase on needy students.
(4) The potential impact to students, including, but not limited
to, the changes to the minimum workload burden for all students, if
applicable, institutional financial aid awards, and the average
student loan debt for undergraduates.
(5) Alternative proposals that can be considered in lieu of the
proposed net student fee revenue proposal.
(b) The University of California and the California State
University shall consult with their respective statewide student
associations at least 30 days prior to providing public notice of the
proposed mandatory systemwide fee increase. The range of potential
mandatory systemwide fees under consideration for the next fiscal
year shall be discussed with appropriate student representatives at
the time of consultation before public notice of the mandatory
systemwide fee increase proposal.
(c) The regents and the trustees shall not act to adopt a
mandatory systemwide fee increase until at least 45 days after a
public meeting is held to discuss the fee. The regents and the
trustees shall provide a summary of the comments received pursuant to
subdivision (a) in the public notice provided before the meeting to
adopt a mandatory systemwide fee increase.
(d) The regents and the trustees shall not adopt an increase in
mandatory systemwide fees after the 90th day prior to the
commencement of classes for the academic year. This prohibition shall
not apply to an increase in mandatory systemwide fees for a summer
session.
(e) (1) In cases where the Governor's proposed budget reduces
appropriations from the prior annual Budget Act for the University of
California or California State University, the Legislature enacts or
authorizes reduced appropriations from the prior annual Budget Act
for the University of California or California State University, or
the Legislature enacts a budget reduction for the support of
University of California or California State University in the middle
of a fiscal year, subdivisions (a), (b), (c), and (d) shall not
apply.
(2) In the instances described in paragraph (1), the University of
California and the California State University shall discuss with
their respective statewide student associations proposals for
mandatory systemwide fee increases at least seven days before posting
notice of action to increase those fees. An increase in the
mandatory systemwide fees at the University of California or the
California State University shall not become effective until at least
30 days have elapsed after the date on which the fee increase was
adopted.
(f) Following the adoption of an increase in mandatory systemwide
fees in accordance with this act, the University of California and
the California State University shall notify matriculated students of
the mandatory systemwide fees to be assessed in the upcoming
academic year or the upcoming quarter or semester. In addition, the
respective institution shall simultaneously inform students about the
availability of student financial aid and the procedures for
obtaining that financial aid in order to assist students with meeting
the increased costs of attendance.
66028.6. 66028.4. (a) On or before
April 2, 2013, the regents and the trustees each shall develop a
transparent methodology for adjusting list of
factors that shall be taken into consideration when developing
recommendations to adjust mandatory systemwide
resident student fees consistent with the policies set
forth in this article. The methodology, at a minimum, shall
consider impacts on access, persistence, and graduation for
historically underrepresented students and low- to middle-income
students, and shall require the identification of measures to
mitigate impacts on those student populations. The
factors shall include, at a minimum, the level of state support,
total cost of attendance, impact on various categories of students,
including historically underrepresented students and low- to
middle-income students, as well as efforts to mitigate the impacts.
(b) The methodologies factors , and
any subsequent amendments to those methodologies
factors , shall be developed in consultation with the
appropriate student representatives from
statewide student body organizations
associations and shall be formally adopted by the regents or
the trustees in an open and public meeting.
(c) The annual budgets of the respective segments shall be drafted
on the basis that changes in fees are in accordance with the
methodology developed pursuant to this section and shall specify the
purposes for which any revenues derived from an increase in mandatory
systemwide fees will be used.
(d)
(c) Nothing in this section shall be construed to
exempt any increase in mandatory systemwide fees from the
requirements of Sections 66028.4 and 66028.5
Section 66028.4 .
66028.7. 66028.5. (a) At
The regents and the trustees are urged to maintain
their commitment to institutional financial aid program funding by
ensuring that at least 33 percent of the revenues of an
increase to existing mandatory systemwide fees charged to resident
students shall be is set aside by the
regents or the trustees, as applicable, for institutional student aid
to assist students and families in meeting the total cost of
education.
(b) The regents and trustees shall report their compliance with
this section in their respective annual reports on institutional
financial aid pursuant to Section 66021.1.
66028.9. 66028.6. (a)
Notwithstanding Section 10231.5 of the Government Code, commencing
with the 2012-13 academic year, the regents and the trustees shall
annually provide the Legislature, by February 1 of each year, with
detailed information regarding expenditures of revenues derived
from student fees and uses of
institutional financial aid, and shall provide information regarding
the systemwide average total cost of education
attendance per student , categorized
specifically by undergraduate and graduate education costs, including
fixed costs, variable costs, administrative costs, instructional
costs, and student services costs . For purposes of meeting
the requirements of this section, the regents and the trustees may
include this information in their respective annual report on
institutional financial aid pursuant to Section 66021.1.
(b) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2012-13 academic year, the Legislative Analyst's
Office shall annually review, by March 1 of each year, institutional
compliance with the policies set forth in this article, and report,
in writing, to the Legislature its findings, conclusions, or
recommendations regarding the implementation of these policies. This
report shall include an assessment of the information provided by the
regents and the trustees pursuant to subdivision (a).
(c) A report submitted pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code.