California Senate Bill SB969 Amended / Bill

 BILL NUMBER: SB 969AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 28, 2010 AMENDED IN SENATE JUNE 1, 2010 AMENDED IN SENATE APRIL 28, 2010 INTRODUCED BY Senators Liu and Romero (Principal coauthor: Senator Price) (Coauthor: Senator Hancock) FEBRUARY 5, 2010 An act to add Article 3.5 (commencing with Section 66027) to Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code, relating to public postsecondary education. LEGISLATIVE COUNSEL'S DIGEST SB 969, as amended, Liu. Public postsecondary education: student fee policy. Existing law, known as the Donahoe Higher Education Act, provides for a public postsecondary education system in this state. This system consists of the University of California, the California State University, and the California Community Colleges. Existing law authorizes these institutions to require that mandatory systemwide fees, among other fees, be paid by students at these institutions. The provisions of the Donahoe Higher Education Act apply to the University of California only to the extent that the Regents of the University of California act by resolution to make them applicable. This bill would  express the intent of the Legislature to  limit mandatory systemwide fees that are charged to resident undergraduate students enrolled in the University of California and the California State University to a specified amount, based on the average total cost of education, as defined,  that students paid in the first semester of the 2010-11 academic year  in the respective segments. The bill would prohibit the trustees and the regents from increasing those mandatory systemwide fees by an amount exceeding a specified percentage of those fees charged to students for the immediately preceding academic year  , and   only in an academic year for which the annual Budget Act has provided the University of California and the California State University with specified resources.   The   bill  would prohibit a specified mandatory systemwide fee increase adopted on or after July 1, 2011, from being effective before 6 months have elapsed after the date on which the fee increase is adopted  , except in an academic year in which state appropriations have not been authorized in the annual Budget Act by September 30, in which case increases in the mandatory systemwide fees charged would not become effective before 90 days have elapsed after the date on which the fee increase is adopted  . The bill would also require the regents and the trustees to develop methodologies for the adjustment of fees in accordance with a prescribed procedure  , and   . The bill, commencing with the 2011-12 academic year,  would require the  California Postsecondary Education Commission   Legislative Analyst's Office  to annually review, and report to the Legislature  and the Director of Finance  , its findings, conclusions, or recommendations regarding the implementation of policies implemented pursuant to the bill. This bill would provide that its provisions would not apply to the University of California, except to the extent that the Regents of the University of California adopt a resolution making them applicable. The bill would request the regents to adopt policies that are consistent with this bill. These provisions would become operative on July 1, 2011. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The state has long recognized the value of providing broad access to postsecondary education to the state's citizens. It has demonstrated that commitment by investing in postsecondary education and maintaining public student fee levels that are fiscally responsible and affordable. The student fee principles expressed herein seek to continue the state's historic commitment to ensuring access and maintaining quality throughout the state's public universities while recognizing the fiscal challenges that confront both the state and postsecondary education. (b) Historically, the state has borne the preponderance of responsibility for providing the fiscal resources necessary to ensure that all eligible state residents have access to high-quality educational opportunities at the state's public colleges and universities. Further, the state bears the principal and overarching responsibility for ensuring that all financially needy students have the financial assistance necessary for them to enroll in institutions of higher education and complete their postsecondary education objectives. (c) Changes in resident student fees or in student financial aid funding or packaging policies should take into consideration the total cost to the student of attending the university, including mandatory campus-based student fees, housing and living expenses, as well as all other expenses associated with university attendance. (d) Any necessary increases in mandatory systemwide fees should be accompanied by appropriate increases in funding for need-based student financial aid. SEC. 2. Article 3.5 (commencing with Section 66027) is added to Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code, to read: Article 3.5. Student Fee Policy 66027. The following state policies regarding mandatory systemwide resident fees and financial aid are established for  undergraduate  students enrolled in the state's public universities: (a) The total cost of a public postsecondary education should be a shared responsibility of students, families, and the State of California. However, in order to keep resident undergraduate student fees at the state's public universities as low and affordable as possible, the state shall bear the preponderance of responsibility for funding postsecondary education. (b) So that students and their families can better prepare financially for college expenses, any changes in resident student fees should be gradual, moderate, and predictable. Any potential adjustments in resident student fees should take into consideration, and be balanced with, available state General Fund revenues to ensure that the access, quality, and affordability of the state's public universities are not adversely affected. (c) Changes in resident student fees should take into consideration a number of factors, including the total cost of educating a student, the appropriate share of the cost of instruction to be paid by the student, and information concerning families' ability to pay. Student financial aid policy and programs should ensure affordability for students from all income levels. Recognition of these indicators will better ensure that changes in resident student fees are gradual and moderate. (d) As changes in resident student fees and financial aid resources are considered, the state should have an understanding of the impact that these changes will have on both current and prospective students. Efforts should be employed to mitigate any negative impact on financially needy students. (e) To the extent that budget decisions are made in a timely manner, adequate advance notice should be provided to students regarding future student fees, thereby allowing them and their families greater time to prepare for the fees to be assessed. (f) In order to ensure that access is not precluded for any eligible student, but particularly financially needy students, all current and prospective students should be provided with timely information concerning student financial aid, including the processes associated with applying for and obtaining student financial assistance. (g) Student fee and financial aid policies should encourage and promote a student's timely completion of the requirements necessary for degree attainment. (h) To ensure that financially needy students are provided with assistance in managing the total cost of their university attendance, financial aid programs, including institutional aid, should be aligned with the distinct financial needs of the systems' student populations and student fee levels. (i) Revenues derived from student fees should remain within the respective university system's budget in order to provide benefits to the students enrolled within the system.  66027.1. For each of the following segments of public postsecondary education, the mandatory systemwide fees charged to resident undergraduate students for any academic year shall not exceed the following amounts: (a) For the University of California, 40 percent of the average total cost of education for that academic year. (b) For the California State University, 30 percent of the average total cost of education for that academic year.   66027.1. (a) It is the intent of the Legislature that, for the University of California and the California State University, the mandatory systemwide fees charged to resident undergraduate students for any academic year not exceed the percentage of average total cost of education that students paid in the first semester of the 2010-11 academic year. (b) This section shall not be construed to require the trustees or the regents to reduce the mandatory systemwide fees charged to resident undergraduate students below the level that existed for the 2010-11 academic year.  66027.2. (a) In any academic year, the trustees and the regents shall not increase the mandatory systemwide fees charged to resident undergraduate students enrolled in the respective institutions by an amount exceeding the percentage change in the state per capita personal income in the prior fiscal year.  The   It is the intent of the Legislature that the  total amount of mandatory systemwide fees, as increased,  shall  not exceed the limits described in Section 66027.1. (b) If the percentage change in the state per capita personal income as determined pursuant to subdivision (a) is negative, the change in per capita personal income for purposes of increasing fees shall be deemed to be zero.  (c) This section shall only be operative in an academic year for which the annual Budget Act has provided the University of California and the California State University with sufficient resources to fund the cost-of-living adjustments and enrollment growth funded at the marginal cost of instruction as adjusted annually. 66027.3.  (a)    Any increase in the mandatory systemwide fees charged to a resident undergraduate student enrolled in the University of California or the California State University that is adopted on or after July 1, 2011, shall not become effective before six months have elapsed after the date on which the fee increase is adopted.  (b) In any academic year in which state appropriations have not been authorized in the annual Budget Act by September 30, subdivision (a) shall not be operative. In those academic years, no increase in the mandatory systemwide fees charged shall become effective before 90 days have elapsed after the date on which the fee increase is adopted.  66027.4. To carry out the responsibilities of this section, the regents and the trustees shall each develop a rational and transparent methodology for adjusting mandatory systemwide resident student fees consistent with the student fee policy principles set forth in Section 66027. These methodologies shall be developed in consultation with appropriate student representatives through student fee advisory committees and, once developed, shall be formally adopted by the regents and the trustees, respectively, in open public meetings. The annual budgets of the segments shall be drafted on the basis that fees will change in accordance with the methodology established under this section  , and shall specify the purposes   for which any revenues derived from an increase in fees will be used  . 66027.5. Following the final action of its governing body, each system shall employ appropriate procedures to notify students of the student fees to be assessed in the upcoming academic year. In addition, each system shall simultaneously provide students with information concerning the availability of student financial aid and the procedures for obtaining that aid in order to assist students with meeting the increased costs of university attendance.  66027.6. (a) Each year, prior to March 1, the California Postsecondary Education Commission shall review institutional compliance with the policies set forth in this article, and report, in writing, to the Legislature and the Director of Finance any findings, conclusions, or recommendations of the commission regarding the implementation of these policies. (b) A report submitted pursuant to subdivision (a) shall be   66027.6.   (a) Commencing with the 2011-12 academic year, the regents and the trustees shall annually provide the Legislative Analyst's Office, prior to February 1, with estimates of the total cost of education, categorized specifically by per student undergraduate and graduate education costs.   (b) Commencing with the 2012-13 academic year, the Legislative Analyst's Office shall annually review, prior to March 1, institutional compliance with the policies set forth in this article, and report, in writing, to the Legislature findings, conclusions, or recommendations regarding the implementation of these policies. This report shall include an assessment of the information provided by the regents and the trustees pursuant to subdivision (a).   (c)     A report submitted pursuant to subdivision (b) shall be  submitted in compliance with Section 9795 of the Government Code. 66027.7. As used in this article, the following terms have the following meanings: (a) (1) "Average total cost of education" means the amount calculated by dividing the total cost of education for the University of California or the California State University, whichever is applicable, by the total number of full-time equivalent students enrolled at that segment. (2) For purposes of paragraph (1), "total cost of education" means, for the University of California and the California State University, the sum of appropriations and projected revenues from all of the following: (A) The General Fund. (B) Higher education fees and income. (C) The California State Lottery Education Fund. (b) "Mandatory systemwide fees" means the fees that all students enrolled in the California State University or the University of California are required to pay in order to enroll in courses for the academic term pursuant to any law or any policy adopted by the governing boards of the respective segments. (c) "Regents" means the Regents of the University of California. (d) "Resident" means a student who is exempt from paying nonresident tuition pursuant to Chapter 1 (commencing with Section 68000) of Part 41. (e) "State per capita personal income" means calendar fourth quarter California personal income for the prior fiscal year, as estimated by the Bureau of Economic Analysis of the United States Department of Commerce, divided by the California civilian population, as estimated by the Department of Finance pursuant to subdivision (d) of Section 13308 of the Government Code. (f) "Trustees" means the Trustees of the California State University. 66027.8. (a) This article shall not apply to the University of California, except to the extent that the regents, by appropriate resolution, make this article applicable. (b) The regents are requested to adopt policies governing increases in mandatory systemwide fees that are consistent with this article. 66027.9. This article shall become operative on July 1, 2011.