BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2610
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2610 (Williams) - As Amended:  April 1, 2014 

          Policy Committee:                              Higher  
          EducationVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Chancellor of the California State  
          University (CSU), in consultation with stakeholders, to develop  
          a definition of "supplanting"-in regards to the offering of  
          state-supported courses and CSU extended education courses-and  
          report a recommended definition to the Legislature by January  
          31, 2015.

           FISCAL EFFECT  

          Minor absorbable cost to CSU, as this effort is in process. (See  
          Comment #1)

           COMMENTS  

           1)Background  .  A December 2013 report by the Bureau of State  
            Audits (BSA) examined extended education at CSU and the  
            supplanting of state-supported courses.  BSA found it  
            difficult to determine the extent to which "supplanting"  
            occurred due to lack of clarity in the term. The BSA audit  
            considered two interpretations of supplanting: (a) a campus  
            could not require a student to enroll in a self-supported  
            course as the only path to their degree; and, (b) 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 the Legislature provide direction regarding the  
            interpretation of supplanting.

            In response to the BSA audit, the Chancellor's Office  








                                                                  AB 2610
                                                                  Page  2

            established an Extended Education State Audit Task Force to  
            develop a definition of supplanting and make a recommendation  
            to the Chancellor. The Task Force solicited feedback from the  
            CSU community, and has held meetings open to the public to  
            discuss definition options. The final recommendations are  
            expected to be presented to the Chancellor in June.

           2)Purpose  . According to the author, this bill responds to the  
            Auditor's recommendation but acknowledges the work already  
            underway by the CSU to address this issue. The author believes  
            it is appropriate to allow the CSU, in consultation with  
            stakeholders, to develop a recommended definition for  
            "supplant" that can inform future statutory changes.

           3)Related Legislation  . AB 2153 (Gray), pending in this  
            committee, places conditions on the offering of extended  
            education courses so as not to conflict with or supplant  
            state-supported course offerings.
           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081