BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1425 (Block) - Community Colleges: Retroactive Awarding of  
          Degrees
          
          Amended: As Introduced          Policy Vote: Education 7-0
          Urgency: No                     Mandate: Yes
          Hearing Date: May 23, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE. AS AMENDED.


          Bill Summary: SB 1425 requires the Chancellor of the California  
          Community Colleges (CCC) to develop or identify a commercially  
          available utility to conduct system-wide automatic degree  
          audits, and requires all CCCs to award degrees retroactively, as  
          specified.

          Fiscal Impact (as approved on May 23, 2014):
              Degree audits (commercial utility): Approximately $12  
              million (General Fund) to purchase a commercial utility that  
              meets the bill's requirements, for each of the approximately  
              80 campuses that do not currently have one. 
              Mandate: Degree audits (workload) - Setting up the degree  
              audit software, maintaining the system, and updating the  
              data, and conducting annual degree audits for the CCDs that  
              do not have a system, would likely require 2 dedicated  
              classified employees at each CCD. Annual costs could total  
              $10 million (General Fund) across those CCDs, once the  
              program is fully implemented. Costs would vary at the  
              approximately CCDs for which an existing system would need  
              to be maintained, the data updated, and degree audits  
              conducted each year (but would not need to be set up). Even  
              if those CCDs required only 1 classified staff person each,  
              annual costs would exceed $2 million (General Fund).
              Mandate: Retroactive degrees - Potentially substantial  
              reimbursable state mandate, likely in the low millions of  
              dollars, to require each CCC to conduct retroactive degree  
              audits for each student enrolled in the past 2 years.
              Mandate: Notifications - Potentially substantial  
              reimbursable mandate, likely hundreds of thousands of  
              dollars, to establish notification procedures and to notify  
              students of their degree status once the audit is completed  








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              each year.
              Report: Potentially significant costs to the CCC  
              Chancellor's office to complete the required implementation  
              report.

          Background: Existing law specifically establishes the mission  
          and function of the CCC as offering academic and vocational  
          instruction at the lower division level and authorizes the  
          community colleges to grant the associate in arts and the  
          associate in science degree. (Education Code � 66010.4) 
          
          Proposed Law: This bill requires the CCC Board of Governors  
          (BOG) to require all CCCs to retroactively award degrees.  
          Beginning in the spring term of the 2015-16 academic year, it  
          requires all CCCs to: a) Identify students who have completed  
          the units required to receive a degree, certificate, or  
          completed transfer requirements during the prior five academic  
          years; b) Notify the identified students of their eligibility  
          for a degree or certificate; and, c) Provide the students with a  
          choice to opt out or receive the degree/certificate. 

          CCCs are further required to annually, prior to spring 2016,  
          identify students who are within 12 semester (18 quarter) units  
          of completing a degree or certificate or achieving the minimum  
          requirements for transfer and notify these individuals of the  
          courses needed to complete degree, certificate, or transfer  
          requirements.

          This bill requires the CCC Chancellor to develop or identify a  
          commercially available utility to conduct system-wide automatic  
          degree audits, to centrally house it, and to make it accessible  
          to staff and students through an Internet Web portal, as  
          specified.
          This bill further requires each CCD, with the Chancellor's  
          assistance, to study and evaluate the effectiveness of degree  
          audit activities established by the bill's provisions, as  
          specified.

          This bill also requires the Chancellor to submit a report to the  
          Legislature and Governor on the progress in implementing the  
          bill's provisions by December 31, 2017. The report must include  
          metrics to be determined and reported, as specified, and  
          information that is disaggregated by ethnicity, gender,  
          disability, age and socioeconomic status, to the extent  








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          available.

          This bill specifies that its provisions are inoperative until  
          the BOG certifies that sufficient funds from state, federal or  
          private sources have been received to implement the online  
          degree audit system, and requires that this certification be  
          promptly posted on the BOG website.

          Staff Comments: The degree to which this bill can be implemented  
          as it is currently written, and within the required timeline, is  
          unclear. This bill specifies that its provisions are inoperative  
          until the BOG certifies that sufficient funds from state,  
          federal or private sources have been received to implement the  
          online degree audit system, and the CCC Chancellor's office has  
          indicated that it simply cannot be accomplished in the timeline,  
          regardless of funding. 

          The closest alternative to a centralized degree audit system  
          accessible to all CCCs by web portal, is to purchase a  
          commercial system for each CCC campus that does not already have  
          one, so that the campuses can complete the work required by this  
          bill. The CCC Chancellor's office estimates costs of  
          approximately $12 million (General Fund) to purchase a  
          commercial utility that meets the bill's requirements, for each  
          of the approximately 80 campuses that do not currently have one.  


          This bill contains several new state mandates on CCCs, which the  
          Commission on State Mandates is likely to deem reimbursable.  
          Implementing a 5-year retroactive and ongoing future annual  
          degree audits, notifying past and current students of their  
          status, and maintaining a commercial system that facilitates  
          this work are all likely to be considered reimbursable  
          state-mandated activities. The mandates will likely cost tens of  
          millions of dollars.
          This bill also requires the Chancellor to submit a report to the  
          Legislature and Governor on the progress in implementing the  
          bill's provisions by December 31, 2017, and annually thereafter,  
          with outcomes disaggregated by ethnicity, gender, disability,  
          age and socioeconomic status, to the extent available. The CCC  
          Chancellor's office will likely incur significant costs to  
          complete this report, which will require extensive coordination  
          with all 112 campuses on their implementation status and  
          outcomes.








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          Committee amendments require the purchase of a commercial  
          utility (removing the option to develop a system) for each CCD,  
          stagger the program's implementation across the CCDs, limit the  
          retroactive degree audits to 2 years, and limit the degree audit  
          scope.