BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 2153 (Gray)
          As Amended  May 23, 2014
          Majority vote 

           HIGHER EDUCATION    11-0        APPROPRIATIONS      12-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Williams, Ch�vez, Bloom,  |Ayes:|Gatto, Bocanegra,         |
          |     |Fong, Fox, Jones-Sawyer,  |     |Bradford,                 |
          |     |Levine, Achadjian, Olsen, |     |Ian Calderon, Campos,     |
          |     |Quirk-Silva, Wilk         |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Donnelly                  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

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

          1)Defines "supplant" to mean when a matriculated undergraduate  
            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 and is offered in a special session or  
            because all state-supported sections are full at the student's  
            campus and the course is offered in a special session.

          2)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.

          3)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 possible, campuses to not use  
            general fund dollars to support an extension course. 









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          4)Except when approved by the CSU Chancellor, as outlined,  
            prohibits a campus from reducing the number of undergraduate  
            state-supported section course offerings while increasing  
            extension offerings of that course.

          5)Except when approved by the CSU Chancellor, as outlined,  
            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.

          6)Except when approved by the CSU Chancellor, as outlined,  
            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.   
            Specifies that extension courses offered as of January 1,  
            2015, shall not be considered for purposes of this  
            requirement.

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

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

             b)   There is no corresponding reduction in the aggregate  
               number of state-supported course offerings on that campus;  
               however, this requirement applies only in academic years  
               where the Budget Act has not reduced CSU funding.

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

          8)Requires the CSU Chancellor to provide guidance to campuses  
            regarding compliance.

          9)Establishes Legislative intent that CSU receive sufficient  
            funding to 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 special  








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

           EXISTING LAW  requires CSU to establish tuition/fees adequate to  
          meet the cost of maintaining extension (self-supporting  
          instructional programs, including, but not be limited to, career  
          enrichment and retraining programs) and establishes Legislative  
          intent that extension courses/programs may be provided  
          throughout the year, but shall not supplant regular course  
          offerings available on a non self-supporting basis during the  
          regular academic year.

           FISCAL EFFECT :  According to Assembly Appropriations Committee,  
          annual costs of up to several million dollars to the extent CSU  
          must offer additional state-supported courses in lieu of  
          undergraduates taking extension courses.  According to CSU, in  
          the most academic year (fall/spring only), undergraduate  
          matriculating full-time equivalent students (FTES) in extension  
          courses totaled 1,143.  Converting this FTES to state support  
          would cost $8.1 million.  These costs could be reduced to the  
          extent campuses receive approval from the CSU Chancellor's  
          Office to offer extension courses.  There would be additional  
          costs to the extent the unavailability of extended education  
          courses results extending undergraduates time to degree.  There  
          should be no additional state costs for matriculating  
          undergraduate students in extension courses to pay lower fees  
          equivalent to those for a state-supported course, as extension  
          course fees could be increased commensurately for  
          non-matriculating students.  Fulfilling legislative intent to  
          provide sufficient funding to avoid matriculating students  
          having to take extension courses could create significant GF  
          cost pressure during years when state budgets overall are under  
          stress.
           
          COMMENTS  :  Governed by CSU Executive Order 1047, extension  
          courses/programs 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 extension programs varies  








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          considerably, most maintain the following common instructional  
          elements:

          1)Extension degree, certificate, and credential programs. 

          2)Open University, (permits nonmatriculated students to enroll  
            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 extension programs during  
          times when regular academic operations are recessed (early  
          January and May). 

          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.  
           
           According to the author, 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 this bill responds to the State Auditor's recommendations  
          by "clarifying the definition of the term supplant and requiring  








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          annual measures to ensure state-sponsored course offerings are  
          not supplanted or replaced by these added-cost courses."
           

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


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