BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 895
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 895 (Rendon) - As Amended:  April 16, 2013 

          Policy Committee:                              Higher  
          EducationVote:10-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill establishes a task force to examine online education  
          in California's public higher education systems. Specifically,  
          this bill:

          1)Establishes a 15-member task force, consisting of two faculty,  
            one nonfaculty staff, one administrative officer, and one  
            student each from the University of California (UC), the  
            California State University (CSU), and the California  
            Community Colleges (CCC), to be selected by March 31, 2014.

          2)Establishes the duties of the task force, including:

             a)   Evaluating and collecting specified data regarding  
               online education, including both public and private  
               institutions and out-of-state providers offering online  
               education in California.

             b)   Identifying best-practices of online education, as  
               specified.

          3)Requires the task force to report to the Legislature, by  
            January 1, 2016 and biennially thereafter, on the information  
            specified above and recommendations for innovative online  
            education methods.

           FISCAL EFFECT  

          The bill is very prescriptive and comprehensive with respect to  
          data collection requirements, including quantitative and  
          qualitative analysis. There will be costs to each segment in  








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          release time for the faculty, non-faculty, and administrator  
          task force members, and to support the task force by providing  
          data, some of which may not be currently gathered in existing  
          reports. General Fund costs for the initial task force report,  
          assuming an average of $250,000 per segment, would total  
          $750,000. Succeeding reports should cost significantly less.

           COMMENTS  

           1)Background  . Distance learning generally refers to instruction  
            where faculty and students are in separate locations and  
            communicating using technology-usually over the internet or  
            with television.  The main providers of distance learning in  
            California are private for-profit colleges and CCC. According  
            to the Legislative Analyst's Office (LAO), in 2011-12, the CCC  
            system spent approximately $500 million serving over 100,000  
            FTE students through online education (about 10 % of total  
            instruction provided that year). Though CSU does not separate  
            costs by instructional type, each of the segment's 23 campuses  
            provide online instruction, primarily to undergraduates. UC  
            has historically offered very little state-supported online  
            instruction, yet over the past few years, has expanded its  
            online program-with plans to continue adding courses in the  
            near future. Among the three segments, the LAO estimates more  
            than 20,000 undergraduate courses (and more than 30,000 course  
            sections) were offered online in 2011-12.

            The Governor has encouraged the segments to expand their  
            online offerings. Specifically, his 2013-14 budget proposal  
            earmarks $16.9 million to CCC and $10 million each to CSU and  
            UC for this purpose. 


           2)Purpose  . According to the author, no working group currently  
            exists to study the possible outcomes for students and faculty  
            if offerings of online courses are increased. Information to  
            policymakers and the public on these outcomes at public  
            institutions offering online courses is limited. 

            The author states, "Quality of education, accessibility,  
            affordability, cheating, ownership and development of  
            curriculum, and career counseling and mentorship access, are  
            some of the concerns faculty members have in regard to online  
            education expansion." With this in mind, this bill would bring  
            policymakers, stakeholders and subject matter experts together  








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            to evaluate and create a thoughtful approach to implementing  
            online education in our higher education institutions.

           3)Related Legislation  . The following online education bills are  
            pending in this committee:

             a)   AB 386 (Levine) requires that CSU students have an  
               opportunity to enroll in online courses available at other  
               CSU campuses, beginning in 2015-16.

             b)   AB 387 (Levine) requires CSU to report performance date  
               regarding online course.

             c)   AB 944 (Nestande) establishes a common definition of  
               distance learning course and requires data gathering and  
               reporting on such courses offered by the state public  
               postsecondary institutions.

               In addition, SB 520 (Steinberg) seeks to provide a  
               statewide mechanism for online course providers to offer  
               transferable courses for credit throughout the state's  
               public postsecondary education, and SB 547 (Block) requires  
               the UC, CSU, and CCC academic senates to identify online  
               courses to be available for students of all three segments.

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