BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 1456 (Alan Lowenthal)
          As Amended  August 22, 2012
          Majority vote 

           SENATE VOTE  :35-1  
           
           HIGHER EDUCATION    7-1         APPROPRIATIONS      12-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Block, Olsen, Achadjian,  |Ayes:|Gatto, Blumenfield,       |
          |     |Brownley, Lara, Miller,   |     |Bradford,                 |
          |     |Portantino                |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Fuentes, Hall,     |
          |     |                          |     |Hill, Cedillo, Mitchell,  |
          |     |                          |     |Solorio                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Galgiani                  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes additional requirements for students to be 
          eligible to receive a California Community Colleges (CCC) Board 
          of Governors (BOG) fee waiver, and places new conditions on 
          community colleges for use of state funds made available for 
          matriculation services.  Specifically,  this bill  :

          1)Requires otherwise eligible students to meet academic and 
            progress standards, as adopted by the BOG, in order to receive 
            a BOG fee waiver, and specifies that these standards be 
            uniform across all CCC districts, not include a maximum unit 
            cap, and take effect no sooner than one year from adoption of 
            the standards by the BOG, among other factors.

          2)Requires that the academic and progress standards per 1) 
            above:

             a)   Be adopted in consultation with students, faculty and 
               other stakeholders;

             b)   Include a reasonable implementation period that 
               commences no sooner than one year from adoption of the 
               minimum academic and progress standards or any subsequent 
               changes to these standards; and,








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             c)   Be implemented only to the extent adequate student 
               support services and interventions are provided, as 
               specified, to ensure no disproportionate impact to students 
               based on ethnicity, gender, disability or socioeconomic 
               status, requires the BOG to consider the ability of CCC 
               districts to meet these requirements before adopting 
               minimum academic and progress standards, and states that it 
               is not the intent of the Legislature that this provision be 
               construed to delay the adoption and implementation of the 
               minimum academic content standards adopted by the BOG 
               commensurate with the availability of resources for 
               appropriate student support services and intervention.

          3)States legislative intent that a student not lose fee waiver 
            eligibility without a CCC first demonstrating a reasonable 
            effort to provide a student with assistance in maintaining his 
            or her fee waiver eligibility and requires the BOG to adopt 
            regulations to implement this provision, as specified.

          4)Requires the BOG to notify and provide specified information 
            to the policy and fiscal committees of the Legislature 90 days 
            prior to adopting academic and progress standards per 1) 
            above.

          5)Recasts the Seymour-Campbell Matriculation Act of 1986 as the 
            Seymour-Campbell Success Act of 2012, and establishes a 
            Student Success and Support Program, which, in addition to 
            existing services provided under a matriculation agreement, is 
            to include the development of an educational plan related to a 
            student's academic and career goals.

          6)States that a student's responsibility under a matriculation 
            agreement is to identify an academic and career goal, declare 
            a specified course of study within a time period or course 
            unit accumulation to be determined by the BOG, and maintain 
            academic progress toward an educational goal and course of 
            study identified in his or her educationl plan. 

          7)Requires the BOG to establish an implementation period for the 
            Student Success and Support Program, to be phased in as 
            resources are available.

          8)Requires the BOG, in consultation with stakeholders, to 








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            establish policies and processes requiring all students, 
            except those determined to be exempt, to complete orientation 
            and assessment and to develop educational plans and to adopt 
            an appeals process.  This requirement is to be implemented 
            over a period of time, as determined by the BOG in 
            consideration of available resources, and shall be developed 
            and implemented only as resources are provided and utilized by 
            CCCs to provide the student support services, as specified.  
            States legislative intent that this not be construed to delay 
            implementation of these provisions commensurate with the 
            availability of resources for these services.

          9)Requires the BOG to develop a funding formula, as 
            specified-replacing the existing funding formula developed for 
            matriculation services-to allocate funding among districts 
            under the Student Success and Support Program.  The funding 
            formula is to include a requirement that, if participating 
            districts use an assessment tool, they use the BOG's common 
            assessment tool.

          10)Requires participating colleges to develop a Student Success 
            and Support Program plan, as specified.

          11)Stipulates that 5) through 9) are only operable in any fiscal 
            year when funds are appropriated specifically for these 
            purposes.

          12)Requires the Legislative Analyst's Office (LAO) to report to 
            the Legislature by July 1, 2014, and every even-numbered year 
            thereafter, on the implementation and impacts of the 
            Seymour-Campbell Student Success Act of 2012.

           FISCAL EFFECT  :   

          1)Since 2009-10, when significant budget reductions were enacted 
            across the CCC, annual state funding for matriculation has 
            totaled $49.2 million.  (In 2008-09, funding for matriculation 
            totaled $101.8 million.)  

            This bill, over time, will create significant General Fund 
            (Proposition 98) cost pressure to increase funding for 
            matriculation services, specifically for expansion of 
            orientation, assessment, and development of students' 
            educational plans.  (The student/counselor ratio at the CCC is 








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            currently about 1900:1.)

            Using more efficient means to deliver these services, such as 
            a systemwide common assessment and web-based 
            counseling/planning tools, where appropriate, will ameliorate 
            some of these cost pressures.  Aside from these efficiencies, 
            expansion of matriculation funding will be dependent annual 
            budget decisions.

          2)Any additional costs for CCC districts to determine students' 
            eligibility for BOG fee waivers will depend on the qualifying 
            academic and progress standards established by the local CCC 
            governing board.  To the extent these standards involve 
            student performance characteristics already acquired by CCC 
            districts, costs should not be significant.  If any CCC 
            districts have to modify their information technology systems 
            to determine students' eligibility for waivers under these new 
            requirements, those one-time costs would be 
            state-reimbursable.

          3)To the extent more students are no longer eligible for a BOG 
            fee waiver due to the academic and progress standards, there 
            will be an increase in student fee revenue if these students 
            nevertheless continue to enroll.

          4)To the extent implementation of this bill increases the rate 
            of student course completion, and ultimately the number of 
            enrolled CCC students attaining their educational goals, over 
            time the system will benefit from reduced administrative costs 
            and greater efficiencies, and the state will benefit from a 
            more educated workforce, which tends to increase wages and 
            thus tax revenues.

           COMMENTS  :  Due to concerns regarding the relatively small 
          proportion of CCC students who are actually completing their 
          educational goals, SB 1143 (Liu), Chapter 409, Statutes of 2010, 
          required the CCC Chancellor to convene a task force to make 
          recommendations for improving student success.  The Student 
          Success Task Force (SSTF) was comprised of 20 individuals (CCC 
          chief executive officers, faculty, students, researchers, staff 
          and external stake holders) who spent a year researching, 
          studying and debating the best methods to improve student 
          outcomes at the CCC. 









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          The SSTF report, which was unanimously adopted by the BOG in 
          January 2012, includes 22 recommendations that are designed to 
          refocus priorities on the core missions of remedial education, 
          workforce preparation, certificate and degree attainment, and 
          transfer by:  improving matriculation services and incentivizing 
          successful student behaviors, aligning course offerings to 
          student needs, improving basic skills education and professional 
          development, strengthening statewide CCC leadership, increasing 
          CCC coordination, maintaining a student success scorecard and 
          data system, and, aligning resources with these recommendations. 
           

          Most of these recommendations can be implemented through 
          regulation, the budget act, or state administrative policy.  
          This bill contains the principal SSTF recommendations that 
          require statutory changes.  

          This bill requires students to meet academic and progress 
          standards to be eligible for the BOG fee waiver and to complete 
          orientation and assessment and to develop education plans.  
          According to information provided by the Chancellor's office, 
          several other financial aid programs establish academic and 
          progress standards to be met in order to continue to receive 
          grants and services including Extended Opportunity Programs and 
          Services, Cal Grants, and Pell Grants.  To ensure students 
          receive the guidance and support they need to meet these 
          academic standards and to meet the orientation, assessment, and 
          education plan requirements, this bill requires these provisions 
          be implemented only as campuses develop and implement the 
          student support services and interventions necessary for 
          students to successfully meet these requirements and to ensure 
          no disproportionate impact to students based on ethnicity, 
          gender, or socio-economic status.


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


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