BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2427
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          Date of Hearing:   April 17, 2012

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                 AB 2427 (Butler) - As Introduced:  February 24, 2012
           
          SUBJECT  :   California State University: special session fees.

           SUMMARY  :   Prohibits special session fees for courses at the 
          California State University (CSU) offered to matriculated 
          students for credit towards an undergraduate, graduate degree, 
          or doctoral degree from exceeding fees charged per credit unit 
          for any other academic term.  

           EXISTING LAW  establishes CSU, under the administration of the 
          CSU Board of Trustees, and requires certain fees to be required 
          of and collected from students enrolled in each special session, 
          pursuant to the rules and regulations prescribed by the CSU 
          Board of Trustees.  (Education Code � 66600, 89708)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background  .  Before the recent budget cuts, the 
          state provided funds to CSU to subsidize summer enrollment in an 
          effort to encourage students to attend year round to better 
          utilize facilities and speed time to graduation.  To accommodate 
          significant budget reductions, CSU has, among other measures, 
          limited student enrollment, increased class sizes, increased 
          tuition, and moved summer instruction to self-support, as this 
          term is not mandatory and its enrollment is significantly lower 
          than the regular academic year.

           What is a special session  ?  Governed by CSU Executive Order 
          1047, special sessions are offered as part of CSU's Extended 
          Education to CSU students who are enrolled during the academic 
          year on a self-support basis in locations that are not supported 
          by state funds.  Existing law prohibits special sessions from 
          supplanting regular course offerings available on a 
          state-supported basis during the academic year.  Faculty who 
          teach special session courses are compensated consistent with 
          the terms of their collective bargaining agreement.   
           
          For a related group of courses or an entire program that leads 
          to a degree, credential or certificate to be offered under 
          special session, both of the following conditions must be met.  








                                                                  AB 2427
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          For individual special sessions courses offered through 
          self-support during summer sessions or intersessions, only the 
          first criteria must be met.

          1)State General Fund appropriations to support the program must 
            be either unavailable or inappropriate. 

          2)The courses or program must be different from approved, 
            state-supported programs operating on campus by one or more of 
            the following: 

             a)   The courses or program is designed primarily for career 
               enrichment or retraining as defined in existing law. 

             b)   The location of the courses or program offerings is 
               significantly removed from permanent, state-supported 
               campus facilities. 

             c)   The client group for the courses or program receives 
               educational or other services at a cost beyond what could 
               be reasonably provided under state support. 

          According to a September 2010 report to the CSU Board of 
          Trustees, 149 special session degree programs are offered in 
          special sessions in fields such as business, healthcare, 
          nursing, biotechnology, criminal justice, and education, 
          enrolling 16,115 annual full time equivalent students in 2008-09 
          in credit courses.  The report notes that there has been a 
          steady growth in special session degrees, with an approximate 
          50% increase in degree program registrations between 2007-08 and 
          2008-09.  Most of the growth has been at the master's degree 
          level in the fields listed above.  Cal Grants and CSU 
          institutional aid may not be used for special session courses.

           Unintended consequences  .  Since special sessions fees reflect 
          the full cost of the course, they are higher than the 
          state-subsidized regular session fee.  Thus, if fees do not 
          cover the cost of the program, will this bill inadvertently 
          result in fewer special session offerings for students, 
          eliminating an option that students may wish to use to speed 
          their time to degree?

           Arguments in support .  This bill's sponsor, the California 
          Faculty Association, states that regularly enrolled students are 
          taking longer to graduate because budget cuts have resulted in 








                                                                  AB 2427
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          reduced course offerings.  Since most financial aid programs are 
          not available for courses outside the regular academic year, 
          matriculated CSU students should be able to take the courses 
          required in their program of study during special sessions at 
          the same cost as the regular state-supported CSU sessions. 

           Arguments in opposition  .  CSU states that, if it were prohibited 
          from operating summer sessions as a self-supporting enterprise, 
          it would no longer offer summer instruction, reducing the 
          opportunity for matriculated students to speed their time to 
          graduation and for non-matriculated students, including working 
          professionals, to pursue advanced degrees.  

           Related legislation  .  AB 515 (Brownley, 2011), pending in the 
          Senate Education Committee, would authorize California Community 
          College (CCC) districts to offer self-supporting extension 
          programs for credit.  SB 1550 (Wright), pending in the Senate, 
          would authorize CCC districts to offer extension programs for 
          credit in career technical education courses.  SB 1011 
          (Calderon, 2010), which was never heard in the Senate, would 
          have prohibited summer session fees from exceeding the fees 
          charged per credit unit for any other academic term, except for 
          courses taken solely for the purpose of career enhancement or 
          job retraining.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Faculty Association

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