BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       AB 2153
          AUTHOR:        Gray
          AMENDED:       May 23, 2014
          FISCAL COMM:   Yes            HEARING DATE:  June 25, 2014
          URGENCY:       No             CONSULTANT: Kathleen Chavira

           SUBJECT  :  Postsecondary education course offerings.
          
           SUMMARY  

          This bill, defines "supplanting" for purposes of special  
          session instructional programs offered at the California  
          State University. 

           BACKGROUND  

          Current law authorizes the CSU to require and collect  
          tuition fees from students enrolled in each special session  
          adequate in the long run, to meet the cost of maintaining  
          special sessions. "Special sessions," at the CSU are  
          defined to include, but not be limited to, career  
          enrichment and retraining programs. Current law also  
          declares the intent of the Legislature that these programs,  
          offered on a self-supporting basis by the CSU during summer  
          sessions, may be provided throughout the year.  Current law  
          prohibits these courses from supplanting state-supported  
          course offerings during the regular academic year.  (EC �  
          89708)

           ANALYSIS
           
           This bill  : 

          1)   Defines "supplants," under the authority to offer  
               special session programs as occurring when an  
               undergraduate matriculated student is required to take  
               a more expensive special session course to graduate  
               because a state supported section of that course is  









                                                               AB 2153
                                                                Page 2


               unavailable because either:

                    a)             The state-supported course is not  
                    offered that term and the course is offered in  
                    special session.

                    b)             All state state-supported sections  
                    of the course are full during the academic year  
                    at the student's campus and the course is offered  
                    in a special session.

          2)   Require, to the extent possible, that each campus  
               ensure that any course required as a condition of  
               undergraduate degree completion for a matriculated  
               student be offered as a state-supported course and  
               further:

                    a)             Requires that a matriculated  
                    student required to take a special session course  
                    to complete his or her undergraduate degree  
                    because a state-supported section of the course  
                    is unavailable in the academic year at the  
                    student's campus be required to pay the lesser of  
                    the state supported section and special session  
                    course fee.

                    b)             Requires the campus to ensure, to  
                    the extent possible, that general fund money is  
                    not used to support a matriculated student's  
                    enrollment in a special session program, section,  
                    or course.

          3)   Establishes the following prohibitions relative to  
               special session courses and programs:

                    a)             Prohibits officials of a campus  
                    from reducing the number of state-supported  
                    section of an undergraduate course offering while  
                    increasing the number of section for the  
                    self-supporting version of the course.











                                                               AB 2153
                                                                Page 3


                    b)             Prohibits the offering of special  
                    session programs at a campus at times or in  
                    locations that limit the number of regular course  
                    offerings that receive state funding.

                    c)             Prohibits the number of special  
                    session sections of any individual course,  
                    including online courses from exceeding the  
                    number of state-supported sections of that course  
                    at a campus, but excludes special session  
                    sections offered as of January 1, 2015, from  
                    consideration for this purpose.

          4)   Makes an exception to the prohibitions outlined by  
               authorizing a campus to add a self-supporting section  
               of a course in a state-supported undergraduate degree  
               program, or increase the number of self-supporting  
               sections if the following conditions are satisfied:

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

                    b)             In an academic year in which the  
                    annual Budget Act does not reduce the CSU budget  
                    from the prior year's funding level, there is no  
                    corresponding reduction in the aggregate number  
                    of state-supported course offerings on that  
                    campus.

                    c)             The self-supporting sections  
                    comply with all applicable state laws and  
                    systemwide and campus policies. 

          5)   Requires the Chancellor to provide guidance to the  
               campuses regarding compliance with these provisions.

          6)   Declares the Legislature's intent that:

                    a)             The CSU receive funding sufficient  










                                                               AB 2153
                                                                Page 4


                    to provide core curriculum through state  
                    supported academic programs.

                    b)             That a matriculated student of the  
                    CSU is entitled to a postsecondary education  
                    within the bounds of a state-supported tuition  
                    and fee structure.

                    c)             That a campus of the CSU is able  
                    to ensure that a student is not required to  
                    enroll in a special session program, section or  
                    course in order to receive a postsecondary  
                    education in a timely manner. 

           STAFF COMMENTS  

           1)   Bureau of State Audits (BSA) report  .  In December  
               2013, the State Auditor issued a report, California  
               State University's Extended Education.  The report  
               found that, because state law does not define  
               "supplanting", the Auditor was unable to determine the  
               extent to which such occurred at the three campuses  
               reviewed.  Depending upon the definition used, the  
               auditor identified as few as 26, and as many as 914  
               instances in which supplanting may have occurred.  In  
               addition, among other things, the report noted that  
               campuses did not always prepare statements of revenues  
               and expenditures when setting fees, as required per  
               CSU student fee policy, revenues from extended  
               education generally exceeded expenditures, two of the  
               three campuses did not notify the Chancellor's Office,  
               as required, before converting a state-supported  
               program to a self-supported program.  

               The report recommended that the Legislature enact  
               statutory language during the 2014 Legislative session  
               clarifying and defining "supplant" and including a  
               description of how CSU should measure whether  
               supplanting is occurring.  In addition, clarifying  
               language should require each CSU campus to take  
               reasonable steps to ensure that when making course or  










                                                               AB 2153
                                                                Page 5


               program offering decisions, these do not force  
               students attempting to earn a degree to take  
               self-supported courses that are required as a  
               condition of degree completion.  

           2)   CSU Extended Education State Audit Task Force  .  In  
               response to the BSA audit, the CSU convened a task  
               force comprised of presidents, provosts, extended  
               education deans, academic senators and student  
               representation to work with the Chancellor's Office  
               staff to discuss and suggest draft supplant language. 

           3)   CSU Executive Order 1047  .  This executive order,  
               issued in May 2010, addresses the procedures to be  
               followed by each campus of the California State  
               University in offering special sessions courses and  
               programs including during summer sessions and winter  
               intersession.  Among other things the order provides  
               that for a related group of courses or an entire  
               program that leads to a degree, credential or  
               certificate to be offered under special sessions State  
               General Fund appropriations to support the program  
               must be either unavailable or inappropriate and the  
               courses or program must be different from approved,  
               state-supported programs operating on campus, as  
               specified.  Special sessions courses are specifically  
               prohibited from being offered at times or places that  
               are likely to supplant or limit offerings of the  
               state-supported program.
           
          4)   Self-supporting programs at the CSU  .  According to the  
               CSU, their extended and continuing education programs  
               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 vary  
               considerably, most maintain the following common  
               instructional elements: 

                  a)        Special session degree, certificate, and  
 










                                                               AB 2153
                                                                Page 6


                    credential programs. 

                  b)        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).     

                  c)        Contract and extension credit. 

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

                  e)        Continuing education units.  


               Many campus self-support units conduct programs during  
               times when regular academic operations are recessed  
               (early January and May).  The CSU reports that about 3  
               percent of state-supported CSU students choose to  
               enroll in self-supported courses.  

           1)   Special session degree programs  .  According to a  
               report presented to the CSU Board of Trustees in  
               September 2010, in academic year 2008-09, Extended  
               Education offered 149 special session degree programs  
               in high demand fields such as business, healthcare and  
               nursing, biotechnology, criminal justice and  
               education, enrolling 16,115 annual full-time  
               equivalent students in courses for credit.  According  
               to the CSU, revenue of more than $165 million was  
               generated by extension and continuing education  
               students taking these courses for credit across the 23  
               CSU campuses. Students enrolled in these special  
               session degree program courses are eligible for  
               financial aid, except for the Cal Grant and the CSU  
               State University Grant.

               According to the report, there had been an approximate  
               50 percent increase in degree program registrations in  
               Extended and Continuing Education Programs between  










                                                               AB 2153
                                                                Page 7


               2007-2008 and 2008-2009.  The CSU noted that most of  
               this growth had been at the master's degree level,  
               with a slight increase in the number of online  
               bachelor's degrees and degree completion programs  
               offered.  This information was presented to the  
               Trustees as the result of a study commissioned to  
               review potential avenues of expansion for Extended  
               Education to meet the needs of CSU students and  
               working professionals and to supply an educated  
               workforce in California.

           2)   Similar legislation  .  AB 2610 (Williams) also on the  
               committee's agenda today, also establishes a  
               definition of supplanting in response to the BSA  
               report recommendations.  The contents of AB 2610 are  
               based upon the recommendations of the CSU Task Force  
               and generally define supplanting as the elimination of  
               a state-supported degree program entirely and  
               replacement of it with a self-supporting instruction  
               program.

           3)   Prior legislation  .  AB 2427 (Butler, 2012) would have  
               required the CSU to annually report to the Legislature  
               on its Extended and Continuing Education Programs,  
               including the number of students enrolled, the number  
               of degree credit and units offered, the range of fees  
               charged and, to the extent possible, a five-year trend  
               for this information.  The also required that this  
               information be reported to the CSU Trustees annually.  
               AB 2427 passed this committee in July 2012 by a vote  
               of 7-2, but was subsequently held under submission in  
               the Senate Appropriations Committee. 

           SUPPORT  

          Academic Senate of the California State University
          California Faculty Association
          California Labor Federation
          Service Employees International Union (SEIU)

           OPPOSITION










                                                               AB 2153
                                                                Page 8


           
          California State University
          California Teachers Association
          City of Temecula
          North Orange County Legislative Alliance (NOCLA)
          President, California State University Sacramento
          San Diego Regional Chamber of Commerce
          Southwest California Legislative Council