BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 938
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 938 (Weber)
          As Amended  July 2, 2014
          Majority vote
           
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          |ASSEMBLY:  |     |(May 30, 2013)  |SENATE: |25-7 |(August 20,    |
          |           |     |                |        |     |2014)          |
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                               (vote not relevant)
           
           Original Committee Reference:    E. & R.  

           SUMMARY  :  Requires a campus of the California State University  
          (CSU) that has implemented a student success fee to use its  
          institutional aid to pay the cost of the student success fee for  
          low-income students.

           The Senate amendments  delete the Assembly version of this bill  
          and instead require a CSU campus that has implemented a student  
          success fee to use institutional aid to pay the cost of the fee  
          for low-income students.

           EXISTING LAW  :

          1)Prohibits a CSU campus, or the CSU Chancellor, from approving  
            a student success fee before January 1, 2016.

          2)Requires, during the 2014-15 fiscal year, the CSU Chancellor  
            to conduct a review of the CSU Student Fee Policy relating to  
            student success fees and recommend to the trustees changes to  
            the fee policy; and requires the review to consider: 

             a)   The approval process for student success fees, including  
               the benefit of using a  student election or the  
               consultative process in the approval process; 

             b)   The need for statewide policies governing a student  
               election, the consultative process, or both, for approving  
               a proposed student success fee; 

             c)   The means to improve transparency and accountability  
               regarding a campus' use of student success fee funds for  
               the benefit of members of the campus' community;









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             d)   The development of an annual report describing the use  
               of student success fee funds by each campus in the prior  
               academic year, to be posted on each campus' Internet Web  
               site;

             e)   The approval of a statewide policy to prohibit a campus  
               from implementing a student success fee for a period  
               exceeding five years unless a continuance of that fee is  
               approved by an affirmative vote of the majority of the  
               student body voting;

             f)   The impact of student success fees on campuses' academic  
               programs and services available for students, including,  
               but not necessarily limited to, low-income students; and, 

             g)    A provision for financial assistance to offset the cost  
               of the fee for low-income students.

          3)Requires the CSU Chancellor to report to the Department of  
            Finance and the appropriate fiscal and policy committees by  
            February 1, 2015.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, potentially significant costs to the CSU, to increase  
          institutional aid to low-income students who attend campuses  
          that have enacted student success fees and receive institutional  
          aid in an amount less than the student success fee level; and,  
          potentially significant ongoing workload for the CSU to  
          implement the provisions of this bill ensuring that campuses  
          provide each low-income student with institutional aid that is  
          at least equal to a campus's student success fee level, as  
          applicable.

           COMMENTS  :  A number of CSU campuses have adopted student success  
          fees, which, in some cases, substantially increase the cost of  
          attendance at a CSU.  Since 2011, 12 of the 23 CSU campuses have  
          adopted such fees.  Concern over the amount of these fees, the  
          process used for adoption on campuses, and the impact of the  
          fees on low-income students led to the Legislature placing a  
          one-year moratorium on new fees and CSU reporting requirements  
          (See: Existing Law) in the 2013-14 Budget Act education trailer  
          bill (SB 860 (Budget and Fiscal Review Committee), Chapter 34,  
          Statutes of 2014).

          Student success fees are category 2 campus-based mandatory fees.  








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          Like other campus-based mandatory fees they are included in the  
          cost of attendance, and most low-income students would have  
          these fees covered via their award package (federal Pell grant,  
          Cal Grant, State University Grant, loans).  However, there is no  
          specific policy providing for the provision of financial  
          assistance for purposes of meeting the costs of student success  
          fees.  This bill would require institutional aid to cover the  
          cost of these fees for low-income students.

          This bill was substantially amended in the Senate and the  
          Assembly-approved version of this bill was deleted.  This bill,  
          as amended in the Senate, is inconsistent with the Assembly  
          actions and the provisions of this bill, as amended in the  
          Senate, have not been heard in an Assembly policy committee.
           

          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960 


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