BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2153
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          Date of Hearing:   April 22, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                     AB 2153 (Gray) - As Amended:  April 8, 2014
           
          SUBJECT  :   Postsecondary education: course offerings.

           SUMMARY  :  Establishes a definition for "supplanting" for the  
          purposes of determining if California State University (CSU) and  
          California Community College (CCC) special session (extension)  
          courses are offered within the allowances provided in law.   
          Specifically,  this bill  :  

          1)For the purpose of CCC extension courses:

             a)   Defines the term "supplant" to mean to increase the  
               number of extension course offerings and correspondingly  
               decrease the number of regular course offerings at a  
               campus.

          2)For the purpose of CSU extension courses:

             a)   Prohibits an extension course from supplanting a  
               state-supported course during the regular academic year,  
               including summer and winter intersessions;

               i)     Defines "supplant" to mean when a matriculated  
                 student is required to take an extension course to  
                 graduate because a state-supported section of that course  
                 is unavailable either because the state-supported course  
                 is not offered in that term or because all  
                 state-supported sessions are full at the student's  
                 campus.

             b)   Requires, to the extent possible, each campus to ensure  
               that any course required as a condition of degree  
               completion to be offered as a state-supported course;

             c)   Provides that a matriculated student who is required to  
               take an extension course to graduate because a  
               state-supported section is unavailable at the student's  
               campus shall pay the lesser of the state-supported section  
               and extension course fee.  Requires, to the extent  








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               possible, campuses to not use general fund dollars to  
               support an extension course;  

             d)   Prohibits a campus from reducing the number of  
               state-supported section course offerings while increasing  
               extension offerings of that course;

             e)   Prohibits campuses from offering extension programs at  
               the campus at times or in locations that limit the number  
               of regular course offerings that receive state funding;

             f)   Prohibits the number of extension courses of any  
               individual course, including online courses, from exceeding  
               the number of state-supported sections of that course at a  
               campus; 

             g)   Provides that, with the approval from the Chancellor's  
               Office, a campus may add an extension section of a  
               state-supported degree program course so long as:

               i)     The campus has made the determination that state  
                 resources are inadequate to provide for additional  
                 state-supported sections;

               ii)    There is no corresponding reduction in the number of  
                 state-supported sections on that campus;

               iii)   There is still sufficient demand to sustain both the  
                 state-supported and the extension course sections; and,

               iv)    The extension section or sections comply with all  
                 applicable state laws and systemwide and campus policies.

             h)   Requires the CSU Chancellor to provide guidance to  
               campuses regarding compliance and requires the CSU Trustees  
               to annually certify compliance at a regular meeting and  
               transmit certification to the Legislature by June 30 of  
               each academic year; and,

             i)   Establishes Legislative intent that CSU provide core  
               curriculum through state-supported academic programs, that  
               a matriculated student of CSU is entitled to a  
               postsecondary education within the bounds of a  
               state-supported tuition and fee structure, and that a  
               campus of CSU shall not require a student to enroll in a  








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               special session program, section, or course in order to  
               receive his or her postsecondary education in a timely  
               manner.

           EXISTING LAW  : 

          1)For purposes of CCC extension courses:

             a)   Requires the CCC Chancellor's Office (CCCCO) to  
               establish a voluntary pilot program, until January 1, 2018,  
               that authorizes specified community colleges (College of  
               the Canyons, Crafton Hills College, Long Beach City  
               College, Oxnard College, Pasadena City College, and Solano  
               Community College) to establish and maintain an extension  
               program.

               i)     The program is required to comply with all of the  
                 following:

                  (1)       Offered during summer and winter intersessions  
                    only;

                  (2)       Self-supporting; 

                  (3)       Open to the public; 

                  (4)       Developed in compliance with existing law and  
                    regulations; 

                  (5)       Subject to collective bargaining; and, 

                  (6)       Offer courses that lead to certificates,  
                    degrees, or transfer preparation.

               ii)    The CCC District is required to meet the following  
                 conditions:

                  (1)       At enrollment capacity for the prior two  
                    years; 

                  (2)       Not received stabilization funding in the  
                    prior two years;

                  (3)       Offer only courses for credit with state  
                    apportionment funding that meet basic skills,  








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                    transfer, or workforce development objectives;

                  (4)       Prioritize enrollment of students in state  
                    apportionment funded courses by promoting policies  
                    that prioritize enrollment for matriculated students  
                    making satisfactory progress toward a basic skills,  
                    transfer, or workforce development goal; 

                  (5)       Prioritize current resident students then and  
                    new resident students for enrollment in extension  
                    programs;

                  (6)       Prohibits claiming apportionment for some  
                    noncredit physical education, or visual or performing  
                    arts courses unless necessary for degree completion;  
                    and,

                  (7)       Prohibits expending general fund dollars for  
                    establishment or maintenance of extension programs.

               iii)   Prohibits an extension credit course from  
                 supplanting any course funded with state apportionments  
                 or from being offered at times or in locations that  
                 supplant or limit the offering of programs that receive  
                 state funding;

               iv)    Prohibits reduction of a state-funded course section  
                 needed by students to achieve basic skills, workforce  
                 training, or transfer goals, with the intent of  
                 reestablishing those course sections as part of the  
                 extension program and requires the CCC District to  
                 certify compliance; 

               v)     Authorizes the CCC District to charge students  
                 enrolled in an extension course a fee that covers the  
                 actual cost of the course and that is based upon the  
                 district's nonresident fee rate for the year the course  
                 is offered; 

               vi)    Requires one-third of revenue collected to be used  
                 by the CCC District to provide financial assistance to  
                 students enrolling in extension courses, and requires  
                 related reporting and outreach on financial assistance  
                 programs; and,









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               vii)   Requires data collection and reporting from CCC  
                 Districts, and requires the CCCCO to report to the  
                 Legislative Analyst's Office (LAO), and requires the LAO  
                 to report to the Legislature by January 1, 2017.

          2)For purposes of CSU extension courses:

             a)   Requires CSU to establish tuition/fees adequate to meet  
               the cost of maintaining "special sessions" (extension  
               courses/programs) and defines "special sessions" to mean  
               self-supporting instructional programs conducted by CSU,  
               including, but not be limited to, career enrichment and  
               retraining programs; and, 

             b)   Establishes Legislative intent that extension programs  
               may be provided throughout the year, and shall not supplant  
               regular course offerings available on a non self-supporting  
               basis during the regular academic year.

           FISCAL EFFECT  :  Unknown 

           COMMENTS  :    Purpose of this bill .  According to the author, CCC  
          and CSU extension programs have "resulted in increased costs for  
          students who can ill afford the additional fees but also cannot  
          afford to delay their graduation.  As a result of impacted class  
          enrollment, almost half of students who enroll exclusively in  
          self-supported classes have an income of less than $25,000."   
          The author notes that in 2012, "the Joint Legislative Audit  
          Committee approved an audit which focused on the policies,  
          procedures, fee structures, revenues and reserve balances within  
          the CSU Extended Education program and its adherence to existing  
          system wide policies and applicable state laws.  According to  
          state law, these self-supporting courses shall not supplant  
          regular course offerings available on a non-self-supporting  
          basis during the regular academic year. However, in December  
          2013, the California State Auditor's Office released the  
          completed audit and found it to be unclear whether supplanting  
          of state-supported classes occurred."  This bill responds to the  
          State Auditor's recommendations by "clarifying the definition of  
          the term supplant and requiring annual measures to ensure  
          state-sponsored course offerings are not supplanted or replaced  
          by these added-cost courses."

           CCC extension  .  As previously outlined, AB 955 (Williams,  
          Chapter 710, Statutes of 2013) establishes a pilot program for  








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          up to six CCC districts to offer extension courses, until  
          January 1, 2018.  The pilot program includes clear requirements  
          and restrictions on the use of extension at these six campuses.   
          A definition of "supplanting" does not appear necessary for CCC  
          extension courses in light of the clear statutory guidance  
          provided to CCC districts participating in the pilot program.  

          The definition of supplanting established by this bill, to  
          increase the number of extension course offerings and  
          correspondingly decrease the number of regular course  
          ("one-for-one"), also appears in conflict with the existing  
          requirements.  The existing prohibition on supplanting  
          (replacing) courses specifically protects against the  
          supplanting of courses funded through state apportionment.  The  
          "one-for-one" defining established in this bill does not appear  
          to account for reductions in state funding that may lead to  
          decreased state-funded courses and increased extension courses  
          in order to meet student need.    

          Finally, AB 955 established a five-year pilot program to be  
          reviewed by the LAO; meaning, the Legislature will have an  
          opportunity to establish additional definitions and/or  
          parameters on CCC extension, should the Legislature decide to  
          continue or expand the pilot program.

          The Committee may wish to consider removing Section 1, which  
          defines "supplanting" for the purposes of CCC extension courses,  
          from the scope of this bill.  
          
           CSU extension: background  .  Governed by CSU Executive Order  
          1047, special sessions are offered as part of CSU's Extended  
          Education to support and extend the mission of the CSU with  
          quality programs that are affordably priced.  Under the CSU  
          Extended and Continuing Education Program, campuses offer  
          baccalaureate and graduate degree programs, certificates, and  
          many forms of specialized education and training for business,  
          industry, and government.  

          While the composition of these campus programs varies  
          considerably, most maintain the following common instructional  
          elements:

          1)Special session degree, certificate, and credential programs. 

          2)Open University, (permits nonmatriculated students to enroll  








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            in regular university courses on a space available basis, pay  
            self-support fees and earn university academic credit).

          3)Contract and extension credit. 

          4)Non-credit certificates, courses, and programs. 

          5)Continuing education units.  

          Many campus self-support units conduct programs during times  
          when regular academic operations are recessed (early January and  
          May). 

           CSU extension: BSA Audit  .  In December 2013, the Bureau of State  
          Audits (BSA) released an audit report concerning extended  
          education in CSU and the supplanting of state-supported courses.  
           BSA found difficulty in determining the extent to which  
          "supplanting" occurred due to lack of clarity in the term.  The  
          BSA audit considered two interpretations of supplanting: (1) a  
          campus could not require a student to enroll in a self-supported  
          course as the only path to their degree; and, (2) the plain  
          meaning definition of replacing a state-supported section with  
          an extension section.  In analyzing campus course data for  
          fiscal years 2007-08 through 2011-12, BSA found potential  
          instances of supplanting under both definitions.  BSA  
          recommended that the Legislature provide direction regarding the  
          interpretation of supplanting, and provided several  
          recommendations to the CSU Chancellor's Office regarding  
          oversight and compliance of campus extension program activities.  
           

           CSU extension: summer and winter intersession  .  As currently  
          drafted, this bill would prohibit CSU from offering an extension  
          course in summer or winter intersession, or in any term, unless  
          state-supported sections of that course were offered and  
          available to matriculated students.  According to CSU,  
          self-support enrollment by regular matriculated students is  
          about 3% of overall extended education enrollment.  Over 80% of  
          those regular matriculated students, however, are taking  
          extension courses in summer school, primarily due to funding  
          constraints that made state-supported sections unavailable  
          during summer and winter intersessions.  By restricting the  
          ability of CSU to offer extension courses in summer, without  
          simultaneously increasing funding to provide state-supported  
          courses, this bill could inadvertently result in increased time  








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          to degree.

          The Committee may wish to consider  an amendment to define  
          supplanting to have occurred only when a matriculated student is  
          required to take a more expensive special session course to  
          graduate because that course is not offered or is full in any  
          academic year, rather than term, and specifically excluding  
          summer and winter intersession terms.
          
           CSU extension: allowances for budget constraints and enrollment  
          demands  .  Extension courses and programs are intended to be  
          supplemental, and not replace regular state-supported course  
          offerings.  However, there are instances where changing  
          enrollment demands, unsustainable program costs, or state budget  
          constraints force difficult decisions about course and program  
          offerings.  This bill, without providing additional resources to  
          CSU to assure ongoing availability of state-supported courses  
          and programs, could inadvertently result in elimination of both  
          state-supported and extended education programs.  Elimination of  
          CSU extension programs would remove an option currently  
          available to non-traditional students who otherwise may enroll  
          in private and for-profit educational institutions; this issue  
          may be particularly relevant in graduate programs which cater to  
          working professionals.

          The Committee may wish to consider amendments to provide  
          additional allowances for CSU extension programs to respond to  
          budget reductions and changing enrollment demands, to limit the  
          scope of the bill to undergraduate programs, and to and to  
          express support for sufficient funding for CSU state-supported  
          academic programs. 

           CSU extension: Is this bill premature  ?  In response to the BSA  
          audit, the CSU Chancellor's Office established an Extended  
          Education State Audit Task Force to develop a definition of  
          supplanting and make a recommendation to the Chancellor.  The  
          Task Force includes five campus presidents, four faculty  
          members, two provosts, two extended education representatives,  
          and two Office of the Chancellor representatives.  The Task  
          Force solicited comments/feedback from the CSU community, and  
          has held meetings open to the public to discuss definition  
          options.  The final recommendations are expected to the  
          presented to the Chancellor in June.  

          The Committee may wish to consider whether it is appropriate to  








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          wait for the CSU Chancellor's Office Task Force recommendations  
          before establishing a statutory definition.
          
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees
          California Faculty Association
          California Labor Federation
          California School Employees Association
          California Teachers Association 
          Service Employees International Union

           Opposition 
           
          California State University, Office of the Chancellor
          California State University, Sacramento
          California State University, Channel Islands
          California State University, Fullerton
          Humboldt State University
          Long Beach Community College District
          San Jose State University
          Sonoma State University
           

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