BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 185
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 185 (Hernandez) - As Amended:  July 7, 2011 

          Policy Committee:                              Higher 
          EducationVote:5-3

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the University of California (UC) and the 
          California State University (CSU) to consider several 
          demographic characteristics of applicants for undergraduate and 
          graduate admissions. Specifically, this bill:

          1)Authorizes UC and CSU to consider race, gender, ethnicity, 
            national origin, geographic origin, and household income, 
            along with other relevant factors, in undergraduate and 
            graduate admissions, so long as no preference is given, when 
            an educational benefit is being sought through recruitment of 
            a multi-factored, diverse student body.

          2)States legislative intent that this provision be implemented 
            to the maximum extent permitted by the decision of the United 
            States Supreme Court in Grutter v. Bollinger (2003) and in 
            conformity with the California Constitution.

          3)Requires the CSU Board of Trustees and requests the UC Board 
            of Regents to report to the Legislature and governor on the 
            implementation of this bill's provisions by November 1, 2013, 
            the number of students admitted, disaggregated by race, 
            gender, ethnicity, national origin, geographic origin and 
            household income compared to the prior two years of admission. 
             

           FISCAL EFFECT  

          Significant one-time GF costs-about $350,000 at UC and $200,000 
          at CSU-to the extent either segment develops and implements a 
          revised admissions policy that considers the specified 








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          demographic factors, and reports on the implementation as 
          specified. In addition, implementing this bill would likely lead 
          to litigation, for which UC and/or CSU could incur legal costs 
          exceeding $150,000.

          �Both UC and CSU have incurred GF budget reductions of $650 
          million for 2011-12. While a portion of this reduction in state 
          support has been offset by significant student fee increases, 
          both segments are also reducing enrollments and course 
          offerings. Moreover, if state revenues fall $1 billion or more 
          below the Budget Act forecast, UC and CSU will each incur an 
          additional $100 million GF reduction.]




           COMMENTS  

           1)Proposition 209 and Federal Court Decisions . In November 1996, 
            California voters passed Proposition 209 which says:  "The 
            State shall not discriminate against, or grant preferential 
            treatment to, any individual or group on the basis of race, 
            sex, color, ethnicity, or national origin in the operation of 
            public employment, public education, or public contracting." 
            Although controversial to some supporters of Prop. 209, the 
            U.S. Supreme Court under former Chief Justice Rehnquist held 
            that the Equal Protection Clause to the 14th Amendment does 
            not prohibit a university from the "narrowly tailored use of 
            race in admissions decisions to further a compelling interest 
            in obtaining the educational benefits that flow from a diverse 
            student body."  (Grutter v. Bollinger (2003), 539 U.S. 306, 
            343.)

            On June 21, 2011, the full U.S. Fifth Circuit Court of Appeals 
            refused, 9-7, to consider an appeal of a decision by a panel 
            of its judges in January that upheld the consideration of race 
            in admissions decisions by the University of Texas, agreeing 
            that Texas's consideration of race was sufficiently narrowly 
            tailored to conform with the Grutter decision.  The case is 
            expected to head to the US Supreme Court.

           2)Background on Admissions  . CSU generally admits as first-time 
            freshmen all students who are California residents and 
            graduate from high school, have a grade point average above 
            3.0, and complete a 15-unit pattern of courses with a grade of 








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            C or higher.  CSU authorizes impacted undergraduate majors, 
            programs, or campuses to use supplementary admission criteria 
            to screen applications. Each major, program, or campus is 
            authorized to determine its own supplementary admissions 
            criteria.

            Under UC's admissions policy, known as Comprehensive Review, 
            campuses use 14 selection criteria-10 based upon academic 
            achievement and four based on factors such as special talents 
            and accomplishments, creativity, tenacity, community service, 
            and leadership to make admissions decisions. UC states that it 
            does not consider race, ethnicity, or gender in the admissions 
            process.  In addition, UC has adopted new eligibility 
            criteria, which go into effect in Fall 2012, that allow more 
            flexibility in meeting the admissions requirements.

           3)Purpose  . According to the author, this bill addresses the 
            significant drop in the percentage of enrolled minority 
            students at both UC and CSU, which is an unintended 
            consequence of Proposition 209. 

           4)Opposition  .  Both the American Civil Rights Coalition (ACRC) 
            and the California Association of Scholars oppose the bill, 
            arguing that it is a violation of Prop. 209.  The ACRC in part 
            argues that, if signed, the bill would be challenged in court 
            and "cause the state a needless and expensive legal battle?"

           5)Prior Legislation  . In 2010, AB 2047 (Hern�ndez), a nearly 
            identical bill, was vetoed by Governor Schwarzenegger, who 
            argued that the bill's intent would be more appropriately 
            addressed through a constitutional change.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081