BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 960
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          Date of Hearing:   July 3, 2012

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                      SB 960 (Rubio) - As Amended:  May 29, 2012

           SENATE VOTE :   37-0
           
          SUBJECT  :   California State University:  campus-based fees.

           SUMMARY  :   Prohibits campus-based mandatory fees at the 
          California State University (CSU) established through an 
          affirmative vote of the majority of the student body voting on 
          the fee, but not specifically authorized by statute, from being 
          reallocated without an affirmative vote of either the student 
          body or a campus fee advisory committee, as specified.  
          Specifically,  this bill :   

          1)Prohibits campus-based mandatory fees at CSU established 
            through an affirmative vote of the majority of the student 
            body voting on the fee, but not specifically authorized by 
            statute, from being reallocated without an affirmative vote of 
            either the majority of the student body or a campus fee 
            advisory committee, as specified in #3 below.  

          2)Authorizes the reallocation of a student-approved campus-based 
            fee established through an affirmative vote of the majority of 
            the student body voting on the fee, but not specifically 
            authorized in statute, to be reallocated without an 
            affirmative vote of the majority of the student body or a 
            campus fee advisory committee if the vote that established the 
            fee authorized an alternative or automatic reallocation 
            mechanism for that fee.

          3)Requires the majority of the membership of the campus fee 
            advisory committee to be comprised of student who are 
            representatives of the student body organization of the campus 
            or who are selected by that student body organization.  
            Specifies the campus fee advisory committee may include 
            nonstudent members who are appointed or elected as authorized. 
             

          EXISTING LAW  :  

           1)Prohibits CSU from allocating any student imposed athletic 








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            fees, for the purposes of supporting intercollegiate athletics 
            programs, in either amounts or purposes other than those voted 
            on by the students, and specifies the pro-rata refund of any 
            portion of the student-imposed athlete fee that is collected 
            but not allocated.  (Education Code � 66152)

          2)Confers upon the CSU Board of Trustees the powers, duties, and 
            functions with respect to the management, administration, and 
            control of the CSU system.  (EC � 89035)
           
           FISCAL EFFECT  :   According to the Senate Appropriations 
          Committee, this bill will likely result in minor costs to 
          individual CSU campuses and potentially significant cost 
          pressure to the state to backfill CSU to the extent that it was 
          unsuccessful in passing fee increases.

          1)Requirements to raise fees:  To the extent that CSU campuses 
            use the student referendum option to pass new fees, campuses 
            will incur costs of approximately $25,000 to publicize the 
            referendum.  Seeking a vote of the majority of a campus's fee 
            advisory committee is likely to result in only minor and 
            absorbable costs.

          2)Barriers to raising and reallocating student fees:  If this 
            bill results in CSU campuses being unable to raise or 
            reallocate student fees to meet campus needs, it will result 
            in additional cost pressure for the state to fund the CSU at a 
            higher level, at a time when budget reductions continue.

           COMMENTS  :    Background  .  Campus-based mandatory fees are used to 
          support on-campus activities essential to student success and 
          the student experience, including health facilities and 
          services, student university unions, athletic programs, 
          transit/transportation systems, and recreational opportunities.  
          The state does not provide funding to support these activities.  
          There is no statutory guiding policy on mandatory systemwide 
          tuition and fees beyond the current fiscal condition and the 
          stated needs of CSU and UC, as negotiated in budget 
          deliberations.  Campus-based fees currently average $1,047 per 
          year.

           Need for this bill  .  Under its policy, CSU presidents have the 
          authority to use an alternate consultation process to divert 
          funds and/or establish campus-based mandatory and 
          instruction-related fees without consulting the student body.  








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          The author states, "This executive language overrides the rights 
          of students to self-govern and allocate fees that the 
          student-body itself established and voted on through a 
          referendum process.  Several student bodies throughout the CSU 
          system have had their existing fees reallocated or new fees 
          established without a vote from the student body."

           CSU process related to campus-based fees  .  Consistent with 
          existing law, the CSU Trustees adopted standing orders providing 
          the Chancellor the authority and responsibility to take whatever 
          actions are necessary for the appropriate functioning of the 
          CSU, including but not limited to, establishment, oversight, and 
          adjustment of campus-based mandatory fees (also known as 
          category II fees).  As it relates to mandatory campus-based 
          fees, the Chancellor provided campuses direction under Executive 
          Order 1054.  Among other things, under Executive Order 1054:

          1)Authority.  The Chancellor is delegated authority for the 
            establishment, oversight and adjustment of category II fees.  
            Campus presidents are not delegated authority to establish 
            category II fees; they are delegated authority for the 
            oversight and adjustment of category II fees.

          2)Responsibility.  Campus presidents are responsible for 
            assuring that appropriate and meaningful consultation occurs 
            prior to adjusting any campus-based fee and before requesting 
            the Chancellor establish a new category II fee. 

             a)   Campus presidents shall establish fee advisory 
               committees comprised of students, faculty, staff, and 
               administrative representatives, in consultation with the 
               student body association.  Students appointed by the 
               student body association constitute a majority of the 
               voting members of the fee advisory committee.

             b)   Campus presidents shall consult with the fee advisory 
               committee before adjusting or requesting the chancellor 
               establish any category II fee. 

             c)   The policy presumes that a student fee referendum will 
               be conducted prior to adjusting / establishing category II 
               fees.  The results of the referendum shall be advisory to 
               the fee advisory committee and the president, unless the 
               education code requires that the referendum pass.  The 
               president, however, may waive the referendum requirement if 








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               he/she determines that it is not the best mechanism to 
               achieve appropriate and meaningful consultation, an 
               alternative consultation process may be utilized.

             d)   Alternative consultation strategies are to be developed 
               with input from the student body association and the fee 
               advisory committee to ensure the process is transparent, 
               and meaningful, and will solicit the input of a 
               representative sample of the student body.  Results of the 
               alternative consultation process should be summarized and 
               put in writing and used as additional advisory material to 
               be taken into consideration by the fee advisory committee 
               and the president.

          3)Accountability.  Campus presidents must provide a report of 
            all fees, including category II fees, as specified.  In 
            addition, the president has authority to decrease, suspend or 
            eliminate fees as needed.

           Suggested amendments  .  

          1)It is unclear if this bill could apply to current campus-based 
            fees.  Staff recommends an amendment to clarify that this 
            policy would apply prospectively.

          2)It is unclear how the provision of this bill pertaining to the 
            composition of the fee advisory committee differs from the 
            composition required in existing CSU policy.  Staff recommends 
            this provision be removed (page 2, lines 29-34 and page 3, 
            lines 1-2).

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file.
           
            Opposition 
           
          None on file.


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









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