BILL ANALYSIS                                                                                                                                                                                                    �






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

          BILL NO:       AB 2610
          AUTHOR:        Williams and Gray
          AMENDED:       As Proposed 
          FISCAL COMM:   Yes            HEARING DATE: June 25, 2014
          URGENCY:       No             CONSULTANT:    Kathleen  
          Chavira

           SUBJECT  :  California State University Special Sessions.

           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)   Prohibits self-supporting sessions from supplanting  
               regular course offerings available on a  
               non-self-support basis during the regular academic  
               year and additionally:

                    a)             Requires to the extent possible,  
                    that each campus ensure that any course required  




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                    as a condition of undergraduate degree completion  
                    for a matriculated student be offered as a  
                    state-supported course.

                    b)             Prohibits a campus from requiring  
                    a student to enroll in a special session course  
                    in order to fulfill graduation requirements for a  
                    state-supported degree program. 

          2)   Requires, in order to ensure that "supplanting" does  
               not occur, that special session courses meet the  
               following requirements:


                    a)             Except as provided in (4),  
                    prohibits officials of a campus from reducing the  
                    number of state-supported undergraduate course  
                    offerings while increasing the number of  
                    self-supporting versions of the course.

                    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)             For courses or programs leading to  
                    a degree, requires that one of the following be  
                    satisfied:

                           i)                  State general fund  
                         appropriations to support the program must  
                         be either unavailable or inappropriate.

                           ii)     The course or program is designed  
                         primarily for career enrichment or  
                         retraining. 

                           iii)    The location of the offerings is  
                         significantly removed from permanent,  
                         state-supported facilities to accommodate  
                         state-supported courses or programs. 

                           iv)     For new programs, the client group  
                         for the course or program receives  
                         educational or other services at a cost  
                         beyond what could be reasonably provided  




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                         within CSU state funds. 

                           v)                  Delivery is  
                         accomplished in an innovative or accelerated  
                         manner.

                           vi)     The course or program is developed  
                         in collaboration with employers or non-state  
                         entities for the purpose of meeting  
                         specialized workforce needs not being met by  
                         the state-supported program.

          3)   Makes an exception to the prohibition against reducing  
               state supported undergraduate course offerings while  
               increasing the number of self-supporting versions of  
               the course, with approval from the Chancellor's  
               office, 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. 

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

          5)   Requires that the CSU Board of trustees receive an  
               annual report, beginning in 2015-16, on the status of  
               undergraduate self-support courses and programs, as  
               part of a noticed public meeting, and specifies that  
               the report include information on FTES undergraduate  
               enrollment in state supported, self-supported  
               programs, as well as the number of state supported  
               FTES enrolling in self-support instruction during the  
               academic year. 




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          6)   Makes a number of related declarations and findings,  
               including the Legislature's intent that:

                    a)             The CSU receive funding sufficient  
                    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  




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               reasonable steps to ensure that when making course or  
               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  
 
                    credential programs. 

                  b)        Open University, (permits nonmatriculated  




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                    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). 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  
               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  




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               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 2153 (Gray) also on the  
               committee's agenda today also establishes a definition  
               of supplanting in response to the BSA report  
               recommendations.  AB 2153 generally defines  
               supplanting as occurring when a state-supported course  
               is not offered during a term or all state  
               state-supported sections of the course or are full  
               during the academic year at the student's campus and  
               the course is offered in a special session.   AB 2153  
               also requires that a matriculated student required to  
               take a special session course to complete his or her  
               undergraduate degree pay the lesser of the state  
               supported section and special session course fee.

           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  

          None received on this version.

           OPPOSITION

           None received on this version.


            AB 2610 (Williams and Gray) - As Proposed to be Amended


              Delete the current contents and insert the following






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           SECTION 1  (a)The Legislature finds and declares all of the  
          following:

          (1)In addition to providing state-supported courses and  
          programs, California State University campuses offer  
          self-supporting courses and programs, known as special  
          sessions.

           (2)Special sessions are designed and used to provide  
          increased access to the educational resources of the system  
          and to otherwise facilitate the use of those resources.


          (3)California State University campuses are prohibited from  
          supplanting regular course offerings with self-supporting  
          special sessions. However, the State Auditor has determined  
          that existing state law does not define supplant.


           (b)It is the intent of the Legislature to provide  
          sufficient direction to the Chancellor of the California  
          State University and to campuses of the university by  
          clarifying statutory language regarding the prohibition to  
          "supplant."


          (c) It is the intent of the Legislature that the California  
          State University shall receive funding sufficient to  
          provide core curriculum through state-supported academic  
          programs, that a matriculated student of the California  
          State University is entitled to a postsecondary education  
          within the bounds of a state-supported tuition and fee  
          structure, and that a campus of the California State  
          University is able to ensure that a student is not required  
          to enroll in a special session program, section, or course  
          in order to receive his or her postsecondary education in a  
          timely manner.


           Section 2  89708.  (a)Tuition fees adequate, in the long  
          run, to meet the cost of maintaining special sessions in  
          the California State University shall be required of, and  
          collected from, students enrolled in each special session  
          under and pursuant to rules and regulations prescribed by  
          the trustees.





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          (b)(1) "Special sessions," as used in this division, means  
          self-supporting instructional programs conducted by the  
          California State University. The special sessions shall  
          include, but not be limited to, career enrichment and  
          retraining programs. It is the intent of the Legislature  
          that those programs, currently offered on a self-supporting  
          basis by the California State University during summer  
          sessions, may be provided throughout the year, and shall be  
          known as special sessions. 
          (2) Self-supporting special sessions shall not supplant  
          regular course offerings available on a non-self-supporting  
          basis during the regular academic year.  To the extent  
          possible each campus shall ensure that any course required  
          as a condition of undergraduate degree completion for a  
          state-supported matriculated undergraduate student shall be  
          offered as a state-supported course.  A campus shall not  
          require a state-supported undergraduate matriculated  
          student to enroll in a special session course in order to  
          fulfill graduation requirements for a state-supported  
          degree program. 
          (3) In order to ensure that "supplanting" does not occur,  
          special session offerings shall meet the following  
          requirements: 
          (A)Except as provided in subdivision (c), officials of a  
          campus shall not reduce the number of state supported  
          undergraduate course offerings while increasing the number  
          of self-supporting versions of that course. 
          (B) Campuses shall not offer special session programs at  
          times or in locations on that campus that limit the number  
          of regular course offerings that receive state funding.
          (C) For courses or programs leading to a degree, one of the  
          following must be satisfied:
            (i) State general fund appropriations to support the  
            program must be either unavailable or inappropriate.
            (ii) The course or program is designed primarily for  
            career enrichment or retraining. 
            (iii) The location of the offerings is significantly  
            removed from permanent, state-supported facilities to  
            accommodate state-supported courses or programs. 
            (iv) For new programs, the client group for the course or  
            program receives educational or other services at a cost  
            beyond what could be reasonably provided within CSU state  
            funds. 
            (v) Delivery is accomplished in an innovative or  
            accelerated manner.
            (vi) The course or program is developed in collaboration  




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            with employers or non-state entities for the purpose of  
            meeting specialized workforce needs not being met by the  
            state-supported program. 
           
           (c) With approval from the Chancellor's office, a campus  
          may add a self-supporting section of a course in a  
          state-supported undergraduate degree program, add a  
          self-support undergraduate degree program, or increase the  
          number of self-supporting sections of an undergraduate  
          course offering so long as all of the following are  
          satisfied:
           (1)The campus has made the determination that state  
          resources are inadequate to provide for additional  
          state-supported sections.
           (2)There is no corresponding reduction in the aggregate  
          number of state-supported course offerings on that campus.  
          However, this paragraph applies only to an academic year  
          for which the annual Budget Act has not reduced the budget  
          of the California State University from the prior years  
          funding level.
           (3)The self-supporting section or sections comply with all  
          applicable state laws and systemwide and campus policies.
           (d)The chancellor shall provide guidance to the campuses  
          regarding how to comply with this section. 
          (e) Commencing in 2016-17, the Board of Trustees shall  
          receive an annual report as part of a noticed public  
          meeting on the status of undergraduate self-support courses  
          and programs as follows:
          (1) FTEs undergraduate enrollment in state-support in the  
          academic year.
          (2) FTEs undergraduate enrollment in self-support in the  
          academic year.
          (3) The number of matriculated undergraduate  
          state-supported FTEs enrolling in self-support instruction  
          during the academic year.
          (4) The proportion of state-support matriculated  
          undergraduate students enrolling in self-support  
          instruction during the academic year.