Bill Text: CA SB42 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Postsecondary education: Office of Higher Education

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-04-25 - Last day to consider Governors veto pursuant to Joint Rule 58.5. [SB42 Detail]

Download: California-2015-SB42-Amended.html
BILL NUMBER: SB 42	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 1, 2015
	AMENDED IN SENATE  APRIL 7, 2015

INTRODUCED BY   Senator Liu

                        DECEMBER 2, 2014

   An act to  amend Section 27.6 of the Business and
Professions Code, to amend Sections 11001, 11005, 11700, 12200,
32500, 44212, 44784, 52342, 52957, 54703, 66010.4, 66010.6, 66010.7,
66040.3, 66742, 66743, 66901, 66903, 66903.3, 66905, 67002, 67003,
67312, 67382, 68052, 69562, 69655, 69966, 74292, 81004, 81005, 89002,
89011, 89070.35, 89070.40, 89720, 92605, 94155, 99151, 99181, 99182,
and 99202 of, to amend the heading of Chapter 11 (commencing with
Section 66900) of Part 40 of Division 5 of Title 3 of, to add Section
66941 to, to repeal Sections 45351, 66902.5, 66903.1, and 87482.4
of, and to repeal and add Sections 66900 and 66903.2 of, the
Education Code, to amend Section 11126 of the Government Code, to
amend Section 128030 of, and to repeal Section 127785 of, the Health
and Safety Code, to amend Section 24357.8 of the Revenue and Taxation
Code, to amend Section 10529 of the Unemployment Insurance Code, and
to amend Sections 4341.5 and 4421 of the Welfare and Institutions
  add Sections 66010.96, 66010.97, and 66010.98 to the
Education  Code, relating to postsecondary education.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 42, as amended, Liu. Postsecondary education: California
Commission on Higher Education Performance and Accountability. 
   Existing law establishes the University of California, under the
administration of the Regents of the University of California, the
California State University, under the administration of the Trustees
of the California State University, and the California Community
Colleges, under the administration of the Board of Governors of the
California Community Colleges, as the 3 public segments of
postsecondary education in this state.  
   Existing law states the intent of the Legislature that budget and
policy decisions regarding postsecondary education generally adhere
to 3 specified goals and that appropriate metrics be identified,
defined, and formally adopted, based upon metrics recommended by a
working group, to monitor progress toward the achievement of the
goals. 
   Existing law establishes the California Postsecondary Education
Commission (CPEC) as the statewide postsecondary education
coordinating and planning agency, and provides for its functions and
responsibilities. Existing law also provides for the composition of
CPEC's membership.  The annual state Budget Acts from the 2011-12
fiscal year to the 2015-16 fiscal year, inclusive, have provided no
funding for CPEC. 
   This bill would  change the composition of, and rename,
CPEC as the California Commission on    
establish the   Office of  Higher Education Performance
and  Accountability, and would recast and revise its various
functions and responsibilities. The bill would make conforming
changes to, delete obsolete provisions of, and make numerous
nonsubstantive changes to, existing law.  
Accountability as the statewide postsecondary education and planning
entity. The bill would provide for the appointment by the Governor,
subject to confirmation by a majority of the membership of the
Senate, of an executive director of the office. The bill would
establish a 6-member advisory board to the office for the purpose of
reviewing and commenting on any recommendations made by the office to
the Governor and the Legislature.  
   The bill would specify the functions and responsibilities of the
office, which would include, among other things, the articulation and
monitoring of state performance objectives for higher education,
advising the Legislature and the Governor regarding the need for, and
the location of, new institutions and campuses of public higher
education, acting as a clearinghouse for postsecondary education
information and as a primary source of information for the
Legislature, the Governor, and other agencies, and reviewing all
proposals for changes in eligibility pools for admission to public
institutions and segments of postsecondary education.  
   The bill would require the office to report to the Legislature and
the Governor on or before December 31 of each year regarding its
progress in achieving specified objectives and responsibilities.

   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.    Section 66010.96 is added to the 
 Education Code  , to read:  
   66010.96.  (a) The Office of Higher Education Performance and
Accountability is hereby established as the statewide postsecondary
education coordination and planning entity. The office shall be
established in state government within the Governor's office, and
shall be under the direct control of an executive director.
   (b) The Governor shall appoint the Executive Director of the
Office of Higher Education Performance and Accountability, who shall
perform all duties, exercise all powers, assume and discharge all
responsibilities, and carry out and effect all purposes vested by law
in the office, including contracting for professional or consultant
services in connection with the work of the office. The appointment
of the executive director shall be subject to confirmation by the
affirmative vote of a majority of the membership of the Senate. The
executive director shall appoint persons to any staff positions the
Governor may authorize.
   (c) The Governor may appoint the executive director at a salary
that shall be fixed pursuant to Section 12001 of the Government Code.

   (d) An advisory board to the office is established for the purpose
of reviewing and commenting on any recommendations made by the
Office to the Governor and the Legislature. The advisory board shall
consist of six public members with experience in postsecondary
education, appointed as follows:
   (1) Three members of the advisory board shall be appointed by the
Senate Committee on Rules.
   (2) Three members of the advisory board shall be appointed by the
Speaker of the Assembly.
   (e) The office may consult with the higher education segments, as
appropriate, in the conduct of its duties and responsibilities. 

   SEC. 2.    Section 66010.97 is added to the 
 Education Code   , to read:  
   66010.97.  The Office of Higher Education Performance and
Accountability shall exist for the purpose of advising the Governor,
the Legislature, and other appropriate governmental officials and
institutions of postsecondary education. The office shall have the
following functions and responsibilities in its capacity as the
statewide postsecondary education planning and coordinating agency
and advisor to the Legislature and the Governor:
   (a) It shall articulate and monitor state performance objectives
for higher education.
   (b) It shall advise the Legislature and the Governor regarding the
need for, and the location of, new institutions and campuses of
public higher education.
   (c) It shall review proposals by the public segments for new
programs, the priorities that guide the public segments, and the
degree of coordination by those segments with nearby public,
independent, and private postsecondary educational institutions, and
shall make recommendations regarding those proposals to the
Legislature and the Governor.
   (d) (1) It shall act as a clearinghouse for postsecondary
education information and as a primary source of information for the
Legislature, the Governor, and other agencies. It shall develop and
maintain a comprehensive database that does all of the following:
   (A) Ensures comparability of data from diverse sources.
   (B) Supports longitudinal studies of individual students as they
progress through the state's postsecondary educational institutions
through the use of a unique student identifier.
   (C) Maintains compatability with California School Information
Services and the student information systems developed and maintained
by the public segments of higher education, as appropriate.
   (D) Provides Internet access to data, as appropriate, to the
sectors of higher education.
   (E) Provides each of the educational segments access to the data
made available to the commission for purposes of the database, in
order to support, most efficiently and effectively, statewide,
segmental, and individual campus educational research information
needs.
   (2) The office, in implementing paragraph (1), shall comply with
the federal Family Educational Rights and Privacy Act of 1974 (20
U.S.C. Sec. 1232g) as it relates to the disclosure of personally
identifiable information concerning students.
   (3) The office may not make available any personally identifiable
information received from a postsecondary educational institution
concerning students for any regulatory purpose unless the institution
has authorized the office to provide that information on behalf of
the institution.
   (4) The office shall provide 30-day notification to the
chairpersons of the appropriate policy and budget committees of the
Legislature, to the Director of Finance, and to the Governor before
making any significant changes to the student information contained
in the database.
   (e) It shall review all proposals for changes in eligibility pools
for admission to public institutions and segments of postsecondary
education, and shall make recommendations to the Legislature, the
Governor, and institutions of postsecondary education. In carrying
out this subdivision, the office periodically shall conduct a study
of the percentages of California public high school graduates
estimated to be eligible for admission to the University of
California and the California State University.
   (f) It shall, through its use of information and its analytic
capacity, inform the identification and periodic revision of state
goals and priorities for higher education in a manner that is
consistent with the goals outlined in Section 66010.91 and the
metrics outlined in Sections 89295 and 92675. It shall, biennially,
interpret and evaluate both statewide and institutional performance
in relation to these goals and priorities.
   (g) It shall submit reports to the Legislature in compliance with
Section 9795 of the Government Code.
   (h) It shall manage data systems and maintain programmatic,
policy, and fiscal expertise to receive and aggregate information
reported by the institutions of higher education in this state. 

   SEC.   3.   Section 66010.98 is added to the
  Education Code   , to read:  
   66010.98.  On or before December 31 of each year, the office shall
report to the Legislature and the Governor regarding its progress in
achieving the objectives and responsibilities set forth in
subdivision (a) of Section 66010.97.  
  SECTION 1.    Section 27.6 of the Business and
Professions Code is amended to read:
   27.6.  The successor agency to the Bureau for Private
Postsecondary and Vocational Education shall transmit any available
data regarding school performance, including, but not limited to,
attendance and graduation rates, it receives from any schools under
its jurisdiction to the California Commission on Higher Education
Performance and Accountability.  
  SEC. 2.    Section 11001 of the Education Code is
amended to read:
   11001.  (a) The Chancellor of the California State University
shall establish an advisory committee to assist in selecting
proposals to be funded and developing criteria for project
evaluation. The committee shall be composed of the following members:

   (1) Two certificated secondary school teachers, including at least
one junior high or intermediate school teacher, appointed by the
Superintendent.
   (2) Two certificated secondary school employees with
responsibility for curriculum administration, appointed by the
Superintendent.
   (3) One director of a regional consortium participating in the
California Student Opportunity Access Program established pursuant to
Chapter 113 of the Statutes of 1978, appointed by the Student Aid
Commission.
   (4) Two representatives of the California Community Colleges, to
be appointed by the Board of Governors of the California Community
Colleges, at least one of whom shall be a faculty member.
   (5) Two representatives of the California State University, to be
appointed by the Chancellor of the California State University, at
least one of whom shall be a faculty member.
   (6) Two representatives of the University of California, appointed
by the President of the University of California, at least one of
whom shall be a faculty member.
   (7) One representative, appointed by the Director of the
California Commission on Higher Education Performance and
Accountability.
   (b) Faculty appointments to the advisory committee shall be made
by the appropriate appointing authority through consultation with the
faculty senate.  
  SEC. 3.    Section 11005 of the Education Code is
amended to read:
   11005.  Based upon evaluations conducted pursuant to former
Section 11004, the California Commission on Higher Education
Performance and Accountability may identify projects that are
ineffective or not cost-effective for termination. Funds made
available as a result of that termination shall be reallocated for
the awarding of new grants pursuant to Section 11003. 

  SEC. 4.   Section 11700 of the Education Code is
amended to read:
   11700.  (a) It is the intent of the Legislature that the Center
for International Education Synergy be established through a joint
powers agreement, entered into pursuant to Chapter 5 (commencing with
Section 6500) of Division 7 of Title 1 of the Government Code,
between the Sweetwater Union High School District, the Southwestern
Community College District, and San Diego State University. It is the
intent of the Legislature that a joint powers agency created
pursuant to the joint powers agreement own and maintain the land and
facilities for the Center for International Education Synergy at the
Southwestern College Higher Education Center at Otay Mesa.
   (b) In addition to funding appropriated by the Legislature for
purposes of the Center for International Education Synergy, entities
participating in the establishment and operation of the center are
encouraged to seek supplemental funding, including, but not limited
to, funding from foundations, corporations, and other public
entities.
   (c) Any postsecondary education facilities and programs developed
pursuant to this section shall be subject to the requirements of
Section 66903 as they apply to the governing boards of public
postsecondary educational institutions.
   (d) The Center for International Education Synergy shall be
established only upon approval by the California Commission on Higher
Education Performance and Accountability based on a needs study and
subsequent approval from the Department of Finance. 

  SEC. 5.    Section 12200 of the Education Code is
amended to read:
   12200.  (a) The state board is vested with all necessary power and
authority to perform all acts necessary to authorize governing
boards of districts maintaining community colleges to receive the
benefits and to expend the funds provided by any acts of Congress
under which districts maintaining community colleges may be eligible
to receive benefits, including, but not limited to, Title VII of the
National Housing Act of 1961 (Public Law 87-70), as amended, and any
of the acts of Congress referred to in this chapter. The state board
is vested with all necessary power and authority to authorize
districts maintaining community colleges to cooperate with the
government of the United States, or any agency or agencies thereof,
for the purpose of receiving the benefits and expending the funds
provided by those acts of Congress, or any rules or regulations
adopted under those acts, or any state plan or rules or regulations
of the California Commission on Higher Education Performance and
Accountability adopted in accordance with any of those acts of
Congress under which the California Commission on Higher Education
Performance and Accountability is designated in this chapter as the
state educational agency. Whenever necessary to secure the full
benefits of those acts of Congress, the governing board may give such
security as may be required and may comply with such conditions as
may be imposed by the federal government. The funds received by the
district under the provisions of those acts of Congress shall be
deposited in the county treasury, as provided for in Section 84001.
   (b) This section is applicable to only those acts of Congress that
have been enacted before January 1, 1967.  
  SEC. 6.    Section 32500 of the Education Code is
amended to read:
   32500.  (a) In order to encourage greater involvement of
educational institutions in planning and developing prison-based
educational programs, the Secretary of the Department of Corrections
and Rehabilitation, the Chancellor of the California State
University, the Chancellor of the California Community Colleges, and
the Superintendent, with the advice of the California Commission on
Higher Education Performance and Accountability, shall enter into
interagency agreements. These agreements shall provide for, but not
be limited to, all of the following:
   (1) A determination of the roles of the Department of Corrections
and Rehabilitation, the Office of the Chancellor of the California
State University, the Office of the Chancellor of the California
Community Colleges, and the State Department of Education, in
developing policy for prison-based educational programs.
   (2) Joint policy and program planning.
   (b) The Secretary of the Department of Corrections and
Rehabilitation, the Chancellor of the California State University,
the Chancellor of the California Community Colleges, and the
Superintendent shall appoint an advisory committee to do, but not be
limited to doing, all of the following:
   (1) Making recommendations on the use of instructional television
in these programs.
   (2) Reviewing and making recommendations relating to any proposed
budgets for these programs.
   (3) Reviewing and making recommendations relating to the
implementation of the interagency agreement.
   (c) Notwithstanding the other provisions of this section, the
Secretary of the Department of Corrections and Rehabilitation shall
administer all prison-based education programs.  
  SEC. 7.    Section 44212 of the Education Code, as
amended by Section 37 of Chapter 71 of the Statutes of 2014, is
amended to read:
   44212.  (a) The Regents of the University of California, the
Trustees of the California State University, the California
Commission on Higher Education Performance and Accountability, and
the Association of Independent California Colleges and Universities
shall each appoint a representative to serve as member ex officio
without vote in proceedings of the commission.
   (b) The ex officio members shall not vote in the proceedings of
the commission or in any of its committees or subcommittees, except,
by a majority vote of the commission, ex officio members may be
permitted to vote in committees or subcommittees in order to
establish a quorum or as otherwise determined by majority vote of the
commission.  
  SEC. 8.    Section 44784 of the Education Code is
amended to read:
   44784.  (a) The institution selected under Section 44782 shall be
assisted by an advisory committee, the function of which shall be:
   (1) To review and comment on plans for the establishment of the
resource centers.
   (2) To assist in determining criteria for local and private
funding matches to be required for the operation of each resource
center.
   (3) To advise the project on the selection of proposals for
funding.
   (b) The advisory committee shall be composed of the following
members:
   (1) Ten members appointed by representatives of higher education,
two each to be selected by the President of the University of
California, the Chancellor of the California State University, the
Chancellor of the California Community Colleges, the Association of
Independent California Colleges and Universities, and the California
Commission on Higher Education Performance and Accountability. At
least one of the appointees of each of these appointing entities
shall be an elementary or secondary school classroom teacher with
classroom experience in international studies instruction.
   (2) Four public members with special interest or competence in
international affairs, representing business, community, and subject
area educational organizations, one each to be selected by the
Superintendent, the Governor, the Speaker of the Assembly, and the
Senate Committee on Rules.
   (3) Three certificated school teachers, or other educators, with
classroom experience in international studies instruction, to be
designated by the institution selected to operate the project.
 
  SEC. 9.    Section 45351 of the Education Code is
repealed.  
  SEC. 10.    Section 52342 of the Education Code is
amended to read:
   52342.  In the implementation of this article, the State
Department of Education shall, on a regular basis, advise and consult
with representatives of the Employment Development Department, the
Board of Governors of the California Community Colleges, the
California Commission on Higher Education Performance and
Accountability, the University of California, the Chancellor of the
California State University, the Commission on Teacher Credentialing,
the Department of Industrial Relations, the Department of Consumer
Affairs, the California Advisory Council on Career Technical
Education and Technical Training, and the State Personnel Board.
 
  SEC. 11.    Section 52957 of the Education Code is
amended to read:
   52957.  The advisory committee shall include:
   (a) One representative selected by the California Commission on
Higher Education Performance and Accountability.
   (b) Two representatives selected by the President of the
University of California, one of whom has the responsibility for
teaching science.
   (c) Two representatives selected by the Chancellor of the
California State University, one of whom has the responsibility for
teaching science.
   (d) Two representatives selected by the Chancellor of the
California Community Colleges, one of whom has the responsibility for
teaching science.
   (e) Four public school classroom teachers of science, and one
additional representative, selected by the Superintendent.
   (f) One teacher of science plus a representative selected by the
Association of Independent California Colleges and Universities.
   (g) One representative of business and industry selected by the
Industry Education Council of California.
   (h) One representative of California labor, selected by the
California branch of the American Federation of Labor-Congress of
Industrial Organizations (AFL-CIO).
   (i) One representative of the National Science Supervisors
Association.
   (j) One representative of a national laboratory, selected by the
Regents of the University of California.  
  SEC. 12.    Section 54703 of the Education Code is
amended to read:
   54703.  The Superintendent shall prepare rules and regulations
necessary to implement the provisions of this article, including
rules and regulations that:
   (a) Prescribe the procedure by which a district shall identify
pupils who are traditionally underrepresented in higher education.
   (b) Provide for the rendering of technical assistance that, upon
request, shall be available to enable school districts and schools to
design, implement, or evaluate the University and College
Opportunities Program authorized by this article.
   (c) Identify effective practices regarding, but not necessarily
limited to, college and university opportunities programs, and
disseminate information regarding these programs to each
participating school district and county superintendent of schools.
   (d) Develop, in conjunction with the California Commission on
Higher Education Performance and Accountability, common data elements
that can be used by secondary and postsecondary educators to assess
and improve program performance.  
  SEC. 13.    Section 66010.4 of the Education Code
is amended to read:
   66010.4.  The missions and functions of California's public and
independent segments, and their respective institutions of higher
education shall be differentiated as follows:
   (a) (1) The California Community Colleges shall, as a primary
mission, offer academic and vocational instruction at the lower
division level for both younger and older students, including those
persons returning to school. Public community colleges shall offer
instruction through but not beyond the second year of college. These
institutions may grant the associate in arts and the associate in
science degree.
   (2) In addition to the primary mission of academic and vocational
instruction, the community colleges shall offer instruction and
courses to achieve all of the following:
   (A) The provision of remedial instruction for those in need of it
and, in conjunction with the school districts, instruction in English
as a second language, adult noncredit instruction, and support
services that help students succeed at the postsecondary level are
reaffirmed and supported as essential and important functions of the
community colleges.
   (B) The provision of adult noncredit education curricula in areas
defined as being in the state's interest is an essential and
important function of the community colleges.
   (C) The provision of community services courses and programs is an
authorized function of the community colleges so long as their
provision is compatible with an institution's ability to meet its
obligations in its primary missions.
   (3) A primary mission of the California Community Colleges is to
advance California's economic growth and global competitiveness
through education, training, and services that contribute to
continuous workforce improvement.
   (4) The community colleges may conduct, to the extent that state
funding is provided, institutional research concerning student
learning and retention as is needed to facilitate their educational
missions.
   (b) The California State University shall offer undergraduate and
graduate instruction through the master's degree in the liberal arts
and sciences and professional education, including teacher education.
Presently established two-year programs in agriculture are
authorized, but other two-year programs shall be permitted only when
mutually agreed upon by the Trustees of the California State
University and the Board of Governors of the California Community
Colleges. The doctoral degree may be awarded jointly with the
University of California, as provided in subdivision (c) and pursuant
to Section 66904. The doctoral degree may also be awarded jointly
with one or more independent institutions of higher education,
provided that the proposed doctoral program is approved by the
California Commission on Higher Education Performance and
Accountability. Research, scholarship, and creative activity in
support of its undergraduate and graduate instructional mission is
authorized in the California State University and shall be supported
by the state. The primary mission of the California State University
is undergraduate and graduate instruction through the master's
degree.
   (c) The University of California may provide undergraduate and
graduate instruction in the liberal arts and sciences and in the
professions, including the teaching professions. It shall have
exclusive jurisdiction in public higher education over instruction in
the profession of law and over graduate instruction in the
professions of medicine, dentistry, and veterinary medicine. It has
the sole authority in public higher education to award the doctoral
degree in all fields of
learning, except that it may agree with the California State
University to award joint doctoral degrees in selected fields. The
University of California shall be the primary state-supported
academic agency for research.
   (d) The independent institutions of higher education shall provide
undergraduate and graduate instruction and research in accordance
with their respective missions.  
  SEC. 14.    Section 66010.6 of the Education Code
is amended to read:
   66010.6.  (a) The missions of agencies charged with coordination,
administration, or implementation of higher education policies and
programs in California shall be as follows:
   (1) The California Commission on Higher Education Performance and
Accountability is the statewide postsecondary education coordinating
and planning agency. The commission shall serve as a principal fiscal
and program advisor to the Governor and the Legislature on
postsecondary educational policy. Consistent with Section 66903, the
commission's responsibilities shall include, but not be limited to,
all of the following:
   (A) Analysis and recommendations related to long-range planning
for public postsecondary education.
   (B) Analysis of state policy and programs involving the
independent and private postsecondary educational sectors.
   (C)  Analysis and recommendations related to program and policy
review.
   (D) Resource analysis.
   (E) Maintenance and publication of pertinent public information
relating to all aspects of postsecondary education.
    (2) The California Commission on Higher Education Performance and
Accountability shall consult with the postsecondary educational
segments and with relevant state agencies, including the Student Aid
Commission, the Superintendent and other relevant parties, in its
preparation of analyses and recommendations to the Governor and the
Legislature. However, the commission shall remain an independent and
nonpartisan body responsible for providing an integrated and
segmentally unbiased view for purposes of state policy formulation
and evaluation.
   (b) (1) The Student Aid Commission is the primary state agency for
the administration of state-authorized student financial aid
programs available to students attending all segments of
postsecondary education. These programs include grant, work study,
and loan programs supported by the state and the federal government.
   (2) Consistent with this responsibility, the Student Aid
Commission shall provide, in consultation with the postsecondary
education segments and relevant state agencies, policy leadership on
student financial aid issues, evaluate the effectiveness of its
programs, conduct research and long-range planning as a foundation
for program improvement, report on total state financial aid needs,
and disseminate information to students and their families.
   (c) The Bureau for Private Postsecondary Education is the primary
state agency responsible for approving and regulating private
postsecondary and vocational educational institutions and for
developing state policies for private postsecondary and vocational
education in California. The bureau shall represent the private
postsecondary and vocational education institutions in all state
level planning and policy discussions about postsecondary and
vocational education.  
  SEC. 15.    Section 66010.7 of the Education Code
is amended to read:
   66010.7.  (a) The Legislature, through the enactment of this
section, expresses its commitment to encourage and support
collaboration and coordination among all segments of education.
   (b) Within the differentiation of segmental functions outlined in
this article, the institutions of higher education shall undertake
intersegmental collaboration and coordination particularly when it
can do any of the following:
   (1) Enhance the achievement of the institutional missions shared
by the segments.
   (2) Provide more effective planning of postsecondary education on
a statewide basis.
   (3) Facilitate achievement of the goals of educational equity.
   (4) Enable public and independent higher education to meet more
effectively the educational needs of a geographic region.
   (5) Facilitate student progress from one segment to another,
particularly with regard to preparation of students for higher
education as well as the transfer from campuses of the California
Community Colleges to four-year institutions.
   (c) The leaders responsible for public and independent
institutions of higher education and the Superintendent shall work
together to promote and facilitate the development of intersegmental
programs and other cooperative efforts aimed at improving the
progress of students through the educational systems and at
strengthening the teaching profession at all levels.
   (d) The California Commission on Higher Education Performance and
Accountability shall be responsible for reviewing and evaluating the
effectiveness of intersegmental activities in accomplishing the
established goals, and shall report its findings to the Governor and
Legislature biennially.  
  SEC. 16.    Section 66040.3 of the Education Code
is amended to read:
   66040.3.  (a) Pursuant to Section 66040, and notwithstanding
Section 66010.4, in order to meet specific educational leadership
needs in the California public schools and community colleges, the
California State University is authorized to award the Doctor of
Education (Ed.D.) degree as defined in this section. The authority to
award degrees granted by this article is limited to the discipline
of education. The Doctor of Education degree offered by the
California State University shall be distinguished from doctoral
degree programs at the University of California.
   (b) The Doctor of Education degree offered by the California State
University shall be focused on preparing administrative leaders for
California public elementary and secondary schools and community
colleges and on the knowledge and skills needed by administrators to
be effective leaders in California public schools and community
colleges. The Doctor of Education degree offered by the California
State University shall be offered through partnerships through which
the California public elementary and secondary schools and community
colleges shall participate substantively in program design, candidate
recruitment and admissions, teaching, and program assessment and
evaluation. This degree shall enable professionals to earn the degree
while working full time.
   (c) This article does not limit or preclude the California
Commission on Higher Education Performance and Accountability from
exercising its authority under Chapter 11 (commencing with Section
66900) to review, evaluate, and make recommendations relating to, any
and all programs established under this article.  
  SEC. 17.    Section 66742 of the Education Code is
amended to read:
   66742.  (a) The governing boards of the three public segments of
higher education shall present annual statistical reports on transfer
patterns via the California Commission on Higher Education
Performance and Accountability to the Governor and Legislature. The
reports shall include recent statistics on student enrollments by
campus, segment, gender, ethnicity, and the ratio of upper division
to lower division, including information on both freshman and
transfer student access to the system. These reports should include,
to the extent that data are available or become available, data on
application, admission, and enrollment information for all students
by sex, ethnicity, and campus. For transfer students, this data shall
indicate the segment of origin for all students. In addition, data
shall be separately identified for transfer students from California
Community Colleges, and shall identify the subset of applications
that are completed together with admission, enrollment, and declared
major information for that group.
   (b) The reports shall describe the number of transfer agreements,
if any, whose terms and conditions were not satisfied by either the
California State University or the University of California, the
number of California Community College transfer students denied
either admission to the student's first choice of a particular campus
of the California State University or the University of California
or the student's first choice of a major field of study, and, among
those students, the number of students who, upon denial of either of
the student's first choices, immediately enrolled at another campus
of the California State University or the University of California.
The reports shall also include information by sex and ethnicity on
retention and degree completion for transfer students as well as for
native students, and the number and percentage of baccalaureate
degree recipients who transferred from a community college campus.
 
  SEC. 18.    Section 66743 of the Education Code is
amended to read:
   66743.  The California Commission on Higher Education Performance
and Accountability is requested to convene an intersegmental advisory
committee on transfer access and performance for purposes of
presenting biennial reports to the Governor and the Legislature on
the status of transfer policies and programs, the diligence of each
segment's board, and the effectiveness of these programs in meeting
the state's goals for transfer. The report shall include information
about all of the following:
   (a) The effectiveness of transfer agreement programs and
activities in enhancing the transfer function overall as well as the
extent to which transfer program activities have been directed at
students who have been historically underrepresented in the
University of California and the California State University.
   (b) The status of the implementation of the transfer core
curriculum, as described in Section 66720, for each community
college, including information about the extent to which sophomore
level courses needed for transfer are available on all community
college campuses.
   (c) Progress that has been made in achieving articulation
agreements in those specific majors that have lower division
prerequisites, and the dissemination of this information. The
committee shall also explore methods to systematically measure the
extent to which the state's goals of freshmen and transfer student
access are being met, including analyses of the number of fully
eligible freshmen or transfer students who are denied access to the
system, and the reasons for that denial. The committee shall also
address ways in which sharing of information about transfer students
among the segments can be improved, including early identification of
potential transfer students for intensive recruitment purposes.
   (d) The Governor and the Legislature shall monitor the success of
the University of California and the California State University in
achieving their targeted enrollment levels and in implementing these
reforms. A substantial failure to implement reform, to achieve the
60/40 ratio by the designated dates, or to improve the transfer rate
of historically underrepresented groups significantly, shall
precipitate legislative hearings to determine the reasons why any one
or all of these goals have not been met.  
  SEC. 19.    The heading of Chapter 11 (commencing
with Section 66900) of Part 40 of Division 5 of Title 3 of the
Education Code is amended to read:
      CHAPTER 11.  CALIFORNIA COMMISSION ON HIGHER EDUCATION
PERFORMANCE AND ACCOUNTABILITY

 
  SEC. 20.    Section 66900 of the Education Code is
repealed.  
  SEC. 21.    Section 66900 is added to the
Education Code, to read:
   66900.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Commission" means the California Commission on Higher
Education Performance and Accountability, established pursuant to
subdivision (a) of Section 66901.
   (b) "Director" means the Director of the California Commission on
Higher Education Performance and Accountability, appointed by the
commission pursuant to subdivision (m) of Section 66901. 

  SEC. 22.    Section 66901 of the Education Code is
amended to read:
   66901.  (a) There is hereby established the California Commission
on Higher Education Performance and Accountability, which shall be
advisory to the Governor, the Legislature, other appropriate
governmental officials, and institutions of postsecondary education.
The commission shall be composed of 17 members of the general public,
appointed as follows:
   (1) Four members shall be appointed by the Speaker of the
Assembly.
   (2) Four members shall be appointed by the Senate Committee on
Rules.
   (3) Nine members, including a chairperson of the commission, shall
be appointed by the Governor, subject to confirmation by the Senate.

   (b) A person who is employed by any institution of public or
private postsecondary education shall not be appointed to or serve on
the commission, except that a person who is not a permanent,
full-time employee and who has part-time teaching duties that do not
exceed six hours per week may be appointed to and serve on the
commission.
   (c) Appointments to the commission shall be representative of
civic, business, and public school leaders.
   (d) The commission members shall serve at the pleasure of their
respective appointing authorities. The members appointed pursuant to
paragraphs (1) and (2) of subdivision (a) shall each serve a six-year
term. The members appointed pursuant to paragraph (3) of subdivision
(a) shall initially serve a three-year term, and shall serve a
six-year term thereafter. The respective appointing authority may
appoint an alternate for each member who may, during the member's
absence, serve on the commission and vote on matters before the
commission. When vacancies occur prior to expiration of terms, the
respective appointing authority may appoint a member for the
remainder of the term.
   (e) Any person appointed pursuant to this section may be
reappointed to serve additional terms.
   (f) All terms subsequent to the initial appointments shall begin
on January 1 of the year in which the respective terms are to start.
   (g) Any person appointed pursuant to this section who no longer
has the position that made him or her eligible for appointment may
nonetheless complete his or her term of office on the commission.
   (h) A person appointed pursuant to this section shall not, with
respect to any matter before the commission, vote for or on behalf
of, or in any way exercise the vote of, any other member of the
commission.
   (i) The commission shall meet as often as it deems necessary to
carry out its duties and responsibilities.
   (j) Any member of the commission who in any calendar year misses
more than one-third of the meetings of the full commission forfeits
his or her office, thereby creating a vacancy.
   (k) There is established an advisory committee to the commission
and the director, consisting of the chief executive officers of each
of the public segments, or their designees, the Superintendent or his
or her designee, one student representative who shall be enrolled at
a California postsecondary educational institution at the time of
appointment and during the term of service, one executive officer
from among the independent California colleges and universities that
are formed and operated as nonprofit corporations in this state and
are accredited by a regional association that is recognized by the
United States Department of Education, and one executive officer of
the Council for Private Postsecondary and Vocational Education to be
designated by the commission. Commission meeting agenda items and
associated documents shall be provided to the committee in a timely
manner for its consideration and comments.
   (l) The commission may appoint any subcommittees or advisory
committees it deems necessary to advise the commission on matters of
educational policy. The advisory committees may consist of commission
members or nonmembers, or both, including students, faculty members,
segmental representatives, governmental representatives, and
representatives of the public.
   (m) The commission shall appoint a director, subject to
confirmation by the Senate. The director shall appoint persons to any
staff positions the commission may authorize.
   (n) The commission shall prescribe rules for the transaction of
its own affairs, subject to all the following requirements and
limitations:
   (1) The votes of all representatives shall be recorded.
   (2) Effective action shall require the affirmative vote of a
majority of all the duly appointed members of the commission, not
including vacant commission seats.
   (3) The affirmative votes of two-thirds of all the duly appointed
members of the commission, not including vacant commission seats,
shall be necessary to appoint the director.  
  SEC. 23.    Section 66902.5 of the Education Code
is repealed.  
  SEC. 24.    Section 66903 of the Education Code is
amended to read:
   66903.  The commission has the following functions and
responsibilities in its capacity as the statewide postsecondary
education planning and coordinating agency and adviser to the
Legislature and the Governor:
   (a) It shall articulate and monitor state performance objectives
for higher education.
   (b) It shall advise the Legislature and the Governor regarding the
need for, and location of, new institutions and campuses of public
higher education.
   (c)  It shall review proposals by the public segments for new
programs, the priorities that guide them, and the degree of
coordination with nearby public, independent, and private
postsecondary educational institutions, and shall make
recommendations regarding those proposals to the Legislature and the
Governor.
   (d) (1) It shall act as a clearinghouse for postsecondary
education information and as a primary source of information for the
Legislature, the Governor, and other agencies. It shall develop and
maintain a comprehensive database that does all of the following:
   (A) Ensures comparability of data from diverse sources.
   (B) Supports longitudinal studies of individual students as they
progress through the state's postsecondary educational institutions,
based upon the commission's existing student database through the use
of a unique student identifier.
   (C) Is compatible with California School Information Services and
the student information systems developed and maintained by the
public segments of higher education, as appropriate.
   (D) Provides Internet access to data, as appropriate, to the
sectors of higher education.
   (E) Provides each of the educational segments access to the data
made available to the commission for purposes of the database, in
order to support, most efficiently and effectively, statewide,
segmental, and individual campus educational research information
needs.
   (2) The commission, in implementing paragraph (1), shall comply
with the federal Family Educational Rights and Privacy Act of 1974
(20 U.S.C. Sec. 1232g) relating to the disclosure of personally
identifiable information concerning students.
   (3) The commission may not make available any personally
identifiable information received from a postsecondary educational
institution concerning students for any regulatory purpose unless the
institution has authorized the commission to provide that
information on behalf of the institution.
   (4) The commission shall provide 30-day notification to the
chairpersons of the appropriate legislative policy and budget
committees of the Legislature, to the Director of Finance, and to the
Governor before making any significant changes to the student
information contained in the database.
   (e) It shall review all proposals for changes in eligibility pools
for admission to public institutions and segments of postsecondary
education, and shall make recommendations to the Legislature, the
Governor, and institutions of postsecondary education. In carrying
out this subdivision, the commission periodically shall conduct a
study of the percentages of California public high school graduates
estimated to be eligible for admission to the University of
California and the California State University.
   (f) It shall, through its use of information and its analytic
capacity, inform the identification and periodic revision of state
goals and priorities for higher education in a manner that is
consistent with the goals outlined in Section 66010.91 and the
metrics outlined in Sections 89295 and 92675. It shall, biennially,
interpret and evaluate both statewide and institutional performance
in relation to these goals and priorities.
   (g) It shall submit reports to the Legislature in compliance with
Section 9795 of the Government Code.
   (h) It shall manage data systems and maintain programmatic,
policy, and fiscal expertise to receive and aggregate information
reported by the institutions of higher education in this state.
   (i) It shall perform all other duties assigned by the Legislature.
 
  SEC. 25.    Section 66903.1 of the Education Code
is repealed.  
  SEC. 26.    Section 66903.2 of the Education Code
is repealed.  
  SEC. 27.    Section 66903.2 is added to the
Education Code, to read:
   66903.2.  On or before December 31 of each year, the commission
shall report to the Legislature and the Governor regarding its
progress in achieving the objectives and responsibilities set forth
in subdivision (a) of Section 66903.  
  SEC. 28.    Section 66903.3 of the Education Code
is amended to read:
   66903.3.  The commission may delegate to the director any power,
duty, purpose, function, or jurisdiction that the commission may
lawfully delegate, including the authority to enter into and sign
contracts on behalf of the commission. The director may redelegate
any of those powers, duties, purposes, functions, or jurisdictions to
his or her designee, unless by statute, or rule or regulation, the
director is expressly required to act personally.  
  SEC. 29.    Section 66905 of the Education Code is
amended to read:
   66905.  It is the intent of the Legislature that the commission
annually review and fix the salary of its director according to a
methodology established by the commission. This methodology shall
take into consideration the salary of directors of coordinating
boards for higher education in states with postsecondary education
systems comparable to California's in size, complexity, and level of
state expenditures. The comparison states shall include seven major
industrial states, including Illinois, New Jersey, New York, Ohio,
and Texas. The commission shall notify the Chairperson of the Joint
Legislative Budget Committee of this annual salary amount.
Notwithstanding Section 19825 of the Government Code, the salary
shall become effective no sooner than 30 days after written notice of
the salary is provided to the chairperson of the committee, or no
sooner than a lesser time as the chairperson, or his or her designee,
may determine.  
  SEC. 30.    Section 66941 is added to the
Education Code, to read:
   66941.  (a) The Legislature finds and declares that access to a
high quality education is the primary goal for the use of educational
technology in higher education. All students in California's public
schools and colleges and all adults in the state shall have access to
educational opportunities for which they are qualified, regardless
of their income level, geographic location, or
                     the size of the school they attend.
   (b) Pursuant to its statutory planning and coordination functions
and responsibilities identified in Section 66903, the California
Commission on Higher Education Performance and Accountability shall
convene an intersegmental working group to determine state funding
priorities consistent with the institutional missions of the systems
of higher education.
   (c) The intersegmental working group shall observe all of the
following principles to guide the development of priorities and the
proposed expenditure of state revenues on technology infrastructure
and applications:
   (1) Development of a statewide infrastructure that provides
compatible connectivity between all levels of education to reduce
redundancy and increase efficiency.
   (2) Adherence to nationally and internally accepted protocols and
standards.
   (3) Assurance that the standards for course and program quality
applied to distance education are rigorous in meeting accreditation
standards, Universal Design standards, and standards currently
applied to traditional classroom instruction at higher educational
institutions in the areas of course content, student achievement
levels, and coherence of the curriculum.
   (4) Collaboration between the private sector and educational
institutions in the availability and use of technology in
high-priority schools and underserved areas.
   (5) Collaboration across departments, institutions, states, and
countries in the use of technology.
   (6) Use of technology to contain costs, improve student outcomes,
and enhance quality in instructional and noninstructional functions,
such as student services, libraries, and administrative support.
   (d) The intersegmental working group shall be composed of
representatives from public elementary and secondary education, the
California State University, the California Community Colleges, the
University of California, independent accredited universities and
colleges, state-approved schools and colleges, private sector
providers of distance education, the Office of the Secretary of
Education, and the private sector.
   (e) The commission shall facilitate the development of statewide
funding priorities for technology in higher education. 

  SEC. 31.    Section 67002 of the Education Code is
amended to read:
   67002.  The California Commission on Higher Education Performance
and Accountability is designated as the state educational agency to
carry out the purposes and provisions of the federal Education
Amendments of 1972 (Public Law 92-318), the federal Education
Amendments of 1976 (Public Law 94-482), and subsequent enactments
amendatory or supplementary thereto, as follows:
   (a) The commission is designated as the state commission required
to be established pursuant to Section 1202 of Title X of the federal
Higher Education Act of 1965 (Public Law 89-329) as amended by the
federal Education Amendments of 1972 (Public Law 92-318).
   (b) The commission is designated as the state administrative
agency required to be established pursuant to Section 1055 of Title X
of the federal Higher Education Act of 1965 (Public Law 89-329) as
amended by the federal Education Amendments of 1972 (Public Law
92-318), unless that designation is determined by the federal
government to be in conflict with federal law or regulations.
   (c) The commission is designated as the state administrative
agency required to be established pursuant to Section 105 of Title I,
Section 122 of Title III, Section 603 of Title VI, and Section 704
of Title VII of the federal Higher Education Act of 1965 (Public Law
89-329), as amended by the federal Education Amendments of 1972
(Public Law 92-318). The California Commission on Higher Education
Performance and Accountability is hereby vested with authority to
prepare and submit to the United States Commissioner of Education any
state plan required by that act of Congress, to prepare and submit
amendments to those state plans, and to administer those state plans
or amendments thereto, in accordance with that act of Congress and
any rules and regulations adopted under that act. Any such state plan
or amendment thereto prepared by the California Commission on Higher
Education Performance and Accountability shall be subject to the
approval of the Department of Finance to the extent required by
Section 13326 of the Government Code. The California Commission on
Higher Education Performance and Accountability is hereby vested with
all necessary power and authority to cooperate with the government
of the United States, or any agency or agencies thereof in the
administration of the act of Congress and the rules and regulations
adopted under that act.  
  SEC. 32.    Section 67003 of the Education Code is
amended to read:
   67003.  The Trustees of the California State University on behalf
of the California State University, the Regents of the University of
California on behalf of the university, the Board of Governors of the
California Community Colleges on behalf of the community colleges,
and the Board of Governors of the California Maritime Academy on
behalf of the California Maritime Academy, are vested with all power
and authority to perform all acts necessary to receive the benefits
and to expend the funds provided by the acts of Congress described in
Section 67000 and with all necessary power and authority to
cooperate with the government of the United States, or any agency or
agencies thereof, and with the California Commission on Higher
Education Performance and Accountability for the purpose of receiving
the benefits and expending the funds provided by the act of
Congress, in accordance with the act, or any rules or regulations
adopted thereunder, or any state plan or rules or regulations of the
California Commission on Higher Education Performance and
Accountability adopted in accordance with the act of Congress.
Whenever necessary to secure the full benefits of the act of Congress
for loans or grants for academic facilities, the trustees, regents,
or boards of governors may give any required security and may comply
with any conditions imposed by the federal government. 

  SEC. 33.    Section 67312 of the Education Code is
amended to read:
   67312.  (a) The Board of Governors of the California Community
Colleges and the Trustees of the California State University shall,
for their respective systems, and the Regents of the University of
California may, do the following:
   (1) Work with the California Commission on Higher Education
Performance and Accountability and the Department of Finance to
develop formulas or procedures for allocating funds authorized under
this chapter.
   (2) Adopt rules and regulations necessary to the operation of
programs funded pursuant to this chapter.
   (3) Maintain the present intersegmental efforts to work with the
California Commission on Higher Education Performance and
Accountability and other interested parties, to coordinate the
planning and development of programs for students with disabilities,
including, but not necessarily limited to, the establishment of
common definitions for students with disabilities and uniform formats
for reports required under this chapter.
   (4) Develop and implement, in consultation with students and
staff, a system for evaluating state-funded programs and services for
disabled students on each campus at least every five years. At a
minimum, these systems shall provide for the gathering of outcome
data, staff and student perceptions of program effectiveness, and
data on the implementation of the program and physical accessibility
requirements of the federal Rehabilitation Act of 1973 (Public Law
93-112) contained in Section 794 of Title 29 of the United States
Code.
   (b) Commencing in January 1990, and every two years thereafter,
the Board of Governors of the California Community Colleges shall
submit a report to the Governor, the education policy committees of
the Legislature, and the California Commission on Higher Education
Performance and Accountability describing its efforts to serve
students with disabilities. These biennial reports shall also include
a review on a campus-by-campus basis of the enrollment, retention,
transition, and graduation rates of disabled students, including
categorical funding of those programs.  
  SEC. 34.    Section 67382 of the Education Code is
amended to read:
   67382.  (a) (1)  On or before January 1, 2004, and every three
years thereafter, the State Auditor shall report the results of an
audit of a sample of not less than six institutions of postsecondary
education in California that receive federal student aid, to evaluate
the accuracy of their statistics and the procedures used by the
institutions to identify, gather, and track data for publishing,
disseminating, and reporting accurate crime statistics in compliance
with the requirements of the federal Jeanne Clery Disclosure of
Campus Security Policy and Campus Crime Statistics Act (20 U.S.C.
Sec. 1092 (f)(1) and (5)).
   (2) The results of the audits described in paragraph (1) shall be
submitted to the respective chairs of the Assembly Committee on
Higher Education and the Senate Committee on Education.
   (b) The California Commission on Higher Education Performance and
Accountability shall provide on its Internet Web site a link to the
Internet Web site of each California institution of higher education
that includes on that Internet Web site the institution's criminal
statistics information.
   (c) The Legislature finds and declares that institutions of higher
education that are subject to the federal Jeanne Clery Disclosure of
Campus Security Policy and Campus Crime Statistics Act (20 U.S.C.
Sec. 1092(f)(1) and (5)), should establish and publicize a policy
that allows victims or witnesses to report crimes to the campus
police department or to a specified campus security authority, on a
voluntary, confidential, or anonymous basis.  
  SEC. 35.    Section 68052 of the Education Code is
amended to read:
   68052.  (a) It is the intent of the Legislature that California's
public institutions of higher education shall establish nonresident
student tuition policies that are consistent with their resident
student fee policies. Nonresident student tuition shall be determined
by each of the public postsecondary segments through the adoption of
a methodology that annually establishes the nonresident student
tuition rate. It is further the intent of the Legislature that, while
the public institutions are to be provided flexibility in
establishing their nonresident tuition, under no circumstances shall
the level of nonresident tuition plus required fees fall below the
marginal cost of instruction for that segment.
   (b) The following state policies regarding nonresident student
tuition are hereby established:
   (1) Unless otherwise prescribed by statute, an admission fee and
rate of tuition fixed by each public postsecondary governing board
shall be required of each nonresident student. Each public
postsecondary education governing body shall develop its own
methodology for establishing the nonresident tuition level and its
annual adjustment level of nonresident student tuition, unless
otherwise prescribed by statute.
   (2) As California's public postsecondary education segments
annually adjust the level of nonresident tuition they charge
out-of-state students, the nonresident tuition methodologies they
develop and use should take into consideration, at minimum, the
following two factors:
   (A) For the University of California and the California State
University, the total nonresident charges imposed by each of their
public comparison institutions, as identified by the California
Commission on Higher Education Performance and Accountability.
   (B) The full average cost of instruction of their segment.
   (3) It is the intent of the Legislature that under no
circumstances shall an institution's level of nonresident tuition
plus required student fees fall below the marginal cost of
instruction for that segment.
   (4) The University of California, the California State University,
the Hastings College of the Law, and the California Maritime Academy
should endeavor to ensure that increases in the level of nonresident
tuition are gradual, moderate, and predictable by providing
nonresident students with a minimum of a 10-month notice of tuition
increases.
   (c) This section does not apply to the California Community
Colleges.
   (d) In the event that state revenues and expenditures are
substantially imbalanced due to factors unforeseen by the Governor
and the Legislature, including, but not limited to, initiative
measures, natural disasters, or sudden deviations from expected
economic trends, the nonresident student tuition at the University of
California, the California State University, the Hastings College of
the Law, and the California Maritime Academy, shall not be subject
to this section.  
  SEC. 36.    Section 69562 of the Education Code is
amended to read:
   69562.  The Student Aid Commission shall establish a 12-member
project grant advisory committee to advise project directors and the
commission on the development and operation of the projects, and
consisting of the following:
   (a) Three representatives of outreach programs, representing the
University of California, the California State University, and the
California Community Colleges, appointed by their respective
governing boards.
   (b) One representative of private colleges and universities,
appointed by the Association of California Independent Colleges and
Universities.
   (c) One representative of the California Commission on Higher
Education Performance and Accountability, appointed by the Student
Aid Commission.
   (d) Two secondary school staff, appointed by the Superintendent.
   (e) Two persons representing the general public, one appointed by
the Speaker of the Assembly and the other by the Senate Committee on
Rules.
   (f) Two postsecondary students, both appointed annually by the
California Commission on Higher Education Performance and
Accountability.
   (g) One college campus financial aid officer, appointed by the
Student Aid Commission.  
  SEC. 37.    Section 69655 of the Education Code is
amended to read:
   69655.  (a) Pursuant to Section 69648, the Chancellor of the
California Community Colleges shall determine the elements of a
statewide database for the Community College Extended Opportunity
Programs and Services, which shall be used for periodic evaluation of
the programs and services. The database shall include all
information necessary to demonstrate the statewide progress towards
achieving the program goals identified in Section 69640, and program
objectives adopted pursuant to Section 69648 including, but not
limited to, all of the following:
   (1) The annual number of extended opportunity programs and
services (EOPS) students and non-EOPS students who complete degree or
certificate programs, transfer programs, or other programs, as
determined by state and local matriculation policies.
   (2) The annual number of EOPS and non-EOPS students who transfer
to institutions that award the baccalaureate degree. In implementing
this paragraph, the chancellor shall work in cooperation with the
California Commission on Higher Education Performance and
Accountability, the President of the University of California, the
Chancellor of the California State University, and the Association of
Independent Colleges and Universities to establish methods for
obtaining the necessary data.
   (3) (A) The annual number of EOPS and non-EOPS students completing
occupational programs who find career employment.
   (B) In implementing this paragraph, the chancellor shall integrate
the data collection with existing data collection requirements
pertaining to vocational education.
   (b) Beginning in January 1987, the chancellor shall annually
report to the Legislature regarding the number of students served by
the Community College Extended Opportunity Programs and Services and
the number of EOPS students who achieve their educational objectives.
 
  SEC. 38.    Section 69966 of the Education Code is
amended to read:
   69966.  The Student Aid Commission shall administer the California
State Work-Study Program in consultation with an advisory committee.
The membership of the advisory committee, which may be an existing
advisory committee established by the commission, shall be
representative of, but need not be limited to, financial aid and
student employment administrators from each segment of postsecondary
education, students, public schools, employers, the California
Commission on Higher Education Performance and Accountability, and
experiential education personnel.  
  SEC. 39.    Section 74292 of the Education Code is
amended to read:
   74292.  Notwithstanding any other law, the following steps shall
be taken to address the imminent risk that Compton Community College'
s accreditation will be terminated by the regional accrediting body
recognized by the Board of Governors of the California Community
Colleges:
   (a) The Chancellor of the California Community Colleges is
authorized to oversee all actions at the Compton Community College
District related to the loss of the college's accreditation and
efforts described in this article to address that situation. The
Compton Community College District shall reimburse the Board of
Governors of the California Community Colleges for any expenses
incurred by the chancellor or his or her staff in carrying out this
oversight responsibility.
   (b) The Compton Community College District shall complete the
provision of instruction for all classes for which it intends to
claim apportionment prior to the date of its loss of accreditation.
   (c) Notwithstanding any other law, the Compton Community College
District shall continue to be eligible to receive state funding as
provided in this article even if its accreditation is terminated.
   (d) (1) The Compton Community College District shall identify a
partner district that will agree to provide accredited instructional
programs to students residing in the Compton Community College
District. The special trustee assigned to the Compton Community
College District pursuant to Section 71093 and the partner district
are authorized to enter into one or more agreements to provide
instructional services or other services, and to make any other
necessary preparations to implement the educational programs
described in this article, as well as any related necessary
administrative or support services, in a timely manner so as to
ensure that services to Compton Community College students will not
be interrupted and that those students will remain eligible for
federal financial assistance. The agreement or agreements shall
provide that the partner district is entitled to receive a reasonable
administrative fee to be fixed by the mutual agreement of the
parties.
   (2) The partner district shall be a district in good standing with
the Accrediting Commission for Community and Junior Colleges
(ACCJC), and shall have successfully completed the accreditation
cycle and secured accreditation for its colleges. A district with a
college that is on warning, probation, or show-cause status with the
ACCJC, or that is being monitored for fiscal stability by the
chancellor's office is not considered a district in good standing for
purposes of this article.
   (e) The partner district may offer any programs or courses for
which it has secured applicable approvals. In addition, any programs
and courses that were previously approved by the board of governors
to be offered by the Compton Community College District may continue
to be offered by the partner district in the territory of the Compton
Community College District without additional state approval until
June 30, 2011.
   (f) No later than 30 days after Compton Community College's loss
of accreditation, the board of governors shall approve the facilities
of Compton Community College as an off-campus educational center of
the partner district. The center shall be known as the Compton
Community Educational Center. The board of governors shall give
notice of its approval to the county committee and county
superintendent having jurisdiction over any territory affected by the
action.
   (g) The board of governors may permanently or temporarily waive
any of its regulatory requirements necessary to effectuate this
article, including, but not necessarily limited to, its regulations
regarding educational centers.
   (h) The partner district is eligible to provide instruction at the
center without the recommendation of the California Commission on
Higher Education Performance and Accountability under Section 66904
until the district secures the commission's recommendation for the
facility to operate as an off-campus educational center or until June
30, 2011, whichever occurs first.
   (i) The partner district shall comply with all federal
requirements to ensure that students taking classes offered by the
partner district at the Compton Community Educational Center remain
eligible for federal financial assistance.
   (j) Students enrolled in the Compton Community College District as
of January 31, 2006, shall be subject to the following conditions:
   (1) The partner district shall ensure that any student who, by the
end of the Spring 2006 term, has completed at least 75 percent of
the courses required for the degree or certificate he or she is
pursuing will be able to complete that program. Every reasonable
effort shall be made to allow other students who have begun work
toward a certificate or degree, but who have not completed 75 percent
of the required coursework, to continue and complete their programs.

   (2) Students enrolling in classes provided by the partner district
pursuant to this section shall be considered students of the partner
district, shall receive credit from the partner district for classes
they successfully complete, shall receive certificates or degrees
they earn from the partner district, and shall receive financial aid
through the partner district if they meet all applicable eligibility
requirements.
   (3) The partner district shall maintain student records related to
the attendance of students in classes it offers pursuant to this
section in accordance with all applicable state and federal laws.
   (4) The partner district shall consider each student who enrolls
for classes no later than the Spring 2007 term to be a continuing
student for purposes of enrollment priorities.
   (5) Any regulations of the board of governors relating to minimum
residence at the college granting a degree shall not be applicable.
   (k) The board of governors shall adopt any regulations necessary
to implement this article. These regulations may be adopted as
emergency regulations that may remain in effect for up to one year
from the date of adoption, and shall not be subject to paragraph (5)
or (6) of subdivision (a) of Section 70901.5 or to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
   (l) (1) The partner district shall provide the services described
in this article for a minimum of five years from the date those
services commence pursuant to subdivision (d), and shall thereafter
provide the services for any additional period
                            determined necessary by the board of
governors. In addition, the board of governors may require, in its
sole discretion, that the services described herein be modified or
terminated at an earlier date based on the best interests of the
California Community Colleges system and its students.
   (2) Notwithstanding paragraph (1), either the partner district or
the special trustee appointed pursuant to Section 71093 may initiate
termination of the agreements described in subdivision (d) by giving
180 days' written notice to the other party and to the board of
governors. No termination pursuant to this subdivision may take
effect until the end of the semester following the notice provided
under this paragraph, so as to protect students from a mid-term
interruption of educational services. Should the partner district
provide notice of a desire to terminate any agreements at a time when
the trustee determines that services provided under those agreements
are still necessary to serve the interests of Compton students and
residents or at a time when the Compton Community College District is
not fully accredited and bonds issued pursuant to Section 41329.52
are outstanding, the partner district shall continue the services
until it can secure a district to provide uninterrupted comparable
services to the satisfaction of the special trustee.
   (m) (1) The Compton Community College District shall continue to
be responsible for ensuring that all of its permanent records are
retained and stored as required by state law and that all records
related to its administration of programs under Title IV of the
federal Higher Education Act are retained for a minimum of three
years after the conclusion of its participation in those programs.
   (2) The Compton Community College District shall be responsible
for institutional actions related to the loss of accreditation,
including actions that are required under Section 688.26 of Title 34
of the Code of Federal Regulations, related to the ending of the
participation of the Compton Community College District in programs
under Title IV of the federal Higher Education Act of 1965, refunding
any students' unearned tuition and fees, refunding to the federal
government any unexpended federal student financial aid funds,
returning to lenders any loan proceeds not distributed to students,
or the collection of outstanding student debts to the Compton
Community College District.
   (n) In addition to addressing the ongoing educational needs of the
students of the Compton Community College District, the partner
district and the special trustee appointed pursuant to Section 71093
shall take steps aimed at achieving the goal of seeking renewed
accreditation for Compton Community College at the earliest feasible
date. Progress toward achieving this goal shall be periodically
reported to the board of governors.
   (o) A person, firm, or organization shall not, without the
permission of the Compton Community College District, use the name
"Compton Community College," or any name of which these words are a
part, or any abbreviation thereof.  
  SEC. 40.    Section 81004 of the Education Code is
amended to read:
   81004.  (a) A community college may develop a public-private
partnership for the purpose of constructing education buildings or
education centers. The facilities may be constructed on a site
donated through the public-private partnership agreement between the
community college and the private sector. The construction of any
education building or education center is subject to approval by the
Board of Governors of the California Community Colleges if the
education building or education center is eligible for state funding
for construction, equipment, or ongoing maintenance. Community
colleges shall not be eligible to receive state funds for off-campus
centers unless recommended by the California Commission on Higher
Education Performance and Accountability pursuant to Section 66904.
   (b) (1) If a community college requests state funding for an
education building or education center constructed through a
public-private partnership, funding for that facility shall not
supersede community college facilities that have been previously
prioritized by the board of governors and are awaiting state funding.
These facilities shall be subject to the board of governors' annual
prioritization process and shall not receive higher priority for
state funding solely because the facilities are constructed through a
public-private partnership.
   (2) Any state funding to reimburse a community college for
construction of a facility pursuant to this subdivision shall not
exceed that community college's share of costs.
   (c) A community college may request state funding for
instructional equipment for an education building or education center
that is constructed through a public-private partnership or that is
acquired without state funding. However, funding for that equipment
shall be provided in the same manner as for other community college
facilities, provided that the construction or acquisition of the
facility otherwise would have qualified as a priority project for
state funding.
   (d) On or before January 1, 1999, the board of governors shall
adopt regulations to implement this section. However, prior to
adopting these regulations, the Chancellor of the California
Community Colleges shall consult with the Department of Finance and
the Legislative Analyst.  
  SEC. 41.    Section 81005 of the Education Code is
amended to read:
   81005.  (a) State funds provided for the capital outlay financing
needs of the California Community Colleges may be used to acquire an
existing government-owned or privately-owned building and for the
necessary costs of converting that building to community college use.
A community college district that is eligible for state funding for
capital outlay financing may purchase an existing government-owned or
privately-owned building and convert it to community college use
with state funds if all of the following criteria apply:
   (1) The building to be purchased was constructed as, and continues
to qualify as, a school building pursuant to Article 7 (commencing
with Section 81130), or the building is determined to have, or is
rehabilitated to an extent that it is determined to have, a pupil
safety performance standard that is equivalent to that of a building
constructed pursuant to Article 7 (commencing with Section 81130). In
making the determination of the pupil safety performance standard as
required in this paragraph, all of the requirements of paragraphs
(1) and (2) of subdivision (a) of Section 81149 shall be met.
   (2) The total cost of purchasing and converting the existing
building to community college use is not greater than the estimated
cost of constructing an equivalent building.
   (3) The land associated with a building to be purchased will be
owned by, or controlled through a long-term lease by, the community
college district. As used in this section, "long-term lease" means a
lease with a term of at least 50 years.
   (4) The district has complied with facility site review procedures
and guideline recommendations of the California Commission on Higher
Education Performance and Accountability pursuant to Section 66904.
   (b) Funding for a building to be purchased under this section
shall not supersede funding for community college facilities that
have previously been prioritized by the board of governors and are
awaiting state funding. Buildings purchased under this section shall
be subject to the annual prioritization process of the board of
governors, and shall not receive higher priority for state funding
because they are existing buildings rather than buildings proposed to
be constructed.
   (c) A community college district that purchases an existing
building under this section may request state funding for
instructional equipment. Funding for that instructional equipment
shall be provided in accordance with Chapter 4.8 (commencing with
Section 84670) of Part 50, provided that the chancellor determines
that the purchase of this equipment qualifies as a priority for state
funding.  
  SEC. 42.    Section 87482.4 of the Education Code
is repealed.  
  SEC. 43.    Section 89002 of the Education Code is
amended to read:
   89002.  The campuses authorized in paragraphs (19), (21), and (22)
of subdivision (a) of Section 89001 shall commence construction only
upon resolution of the trustees, approved by the California
Commission on Higher Education Performance and Accountability.
 
  SEC. 44.    Section 89011 of the Education Code is
amended to read:
   89011.  (a) It is the intent of the Legislature that public
programs of postsecondary education be made available to qualified
persons throughout this state, including areas of substantial
existing or projected population that are isolated from any campus of
the California State University.
   (b) The Trustees of the California State University shall consider
the establishment of a permanent, state-supported off-campus center
on state-owned property in Contra Costa County, the purpose of which
shall be to continue to offer education programs at the upper
division and graduate levels.
   (c) Pursuant to the establishment of a permanent, state-supported
off-campus center as provided by subdivision (b), the trustees shall
contract for the preparation of a master plan for physical
development, and a detailed survey of Contra Costa County, as
follows:
   (1) The master plan for the physical development of the center
shall project major land uses, including open space, and the
development of physical facilities, including those relating to
lecture and laboratory use, and other instructional activities, site
work, plant operations, and adjunct operations. The master plan shall
be subject to the approval of the Trustees of the California State
University.
   (2) The detailed survey of Contra Costa County shall include, but
not be limited to, official population projections, an industry and
income profile, an analysis of specific education program
requirements of potentially qualified students, an assessment of the
need for educational services at the upper division and graduate
levels, and an assessment of the services currently provided by other
public and private institutions of postsecondary education,
including the University of California and the California Community
Colleges.
   (d) The trustees shall review the results of the master plan and
survey and shall forward the results to the California Commission on
Higher Education Performance and Accountability for its review
pursuant to Section 66904.  
  SEC. 45.    Section 89070.35 of the Education Code
is amended to read:
   89070.35.  (a) The intersegmental advisory committee shall consist
of the following members:
   (1) Two members, one of whom shall be a mathematics faculty
member, appointed by each of the following:
   (A) The Chancellor of the California State University.
   (B) The President of the University of California, if he or she
chooses to serve as a member.
   (C) The Chancellor of the California Community Colleges.
   (D) The Superintendent.
   (2) One member appointed by each of the following:
   (A) The Chair of the Association of Independent California
Colleges and Universities.
   (B) The Director of the California Commission on Higher Education
Performance and Accountability.
   (C) The Chair of the California Academic Partnership Program
Advisory Committee.
   (D) The Director of the California Mathematics Project.
   (b) The intersegmental advisory committee may recommend that the
trustees increase its size by the appointment of public, corporate,
or other members.  
  SEC. 46.    Section 89070.40 of the Education Code
is amended to read:
   89070.40.  The Trustees of the California State University shall
work with the University of California, the California Commission on
Higher Education Performance and Accountability, and the advisory
committee to develop a comprehensive program evaluation. This
evaluation shall be conducted in 1993, and every three years
thereafter to determine the success of the program. 

  SEC. 47.    Section 89720 of the Education Code,
as amended by Section 4 of Chapter 511 of the Statutes of 2014, is
amended to read:
   89720.  (a) The trustees may accept on behalf of the state any
gift, bequest, devise, or donation of real or personal property
whenever the gift and the terms and conditions thereof will aid in
carrying out the primary functions of the California State University
as specified in subdivision (b) of Section 66010.4. Neither Section
11005 of the Government Code, nor any other law requiring approval by
a state officer of gifts, bequests, devises, or donations, shall
apply to these gifts, bequests, devises, or donations. These gifts,
bequests, devises, or donations, and the disposition thereof, shall
be annually reported to the California Commission on Higher Education
Performance and Accountability, the Joint Legislative Budget
Committee, and the Department of Finance by January 31 of each year.
   (b) Notwithstanding Sections 11005.2 and 14664 of the Government
Code or any other law to the contrary, the trustees may sell or
exchange interests in real property received pursuant to this section
when, in the judgment of the trustees, the sale or exchange is in
the best interests of the California State University. No sale or
exchange of an interest in real property made pursuant to this
section shall exceed ten million dollars ($10,000,000) per
transaction.
   (c) Notwithstanding Sections 11005 and 15853 of the Government
Code or any other law to the contrary, the trustees may purchase
interests in real property from moneys received pursuant to this
section, including those moneys received from the sale or exchange of
interests in real property pursuant to this section. Any such
purchase shall be consistent with any restrictions placed upon the
gift, bequest, devise, or donation and shall be in the best interests
of the California State University, as determined by the trustees.
   (d) No interest in any real property that is part of a main campus
of any of the institutions of the California State University listed
in Section 89001 shall be sold or exchanged pursuant to this
section.
   (e) Any sale or exchange of interests in real property carried out
pursuant to this section shall be reported annually to the
California Commission on Higher Education Performance and
Accountability or a successor agency, the Joint Legislative Budget
Committee, and the Department of Finance by January 31 of each year.
 
  SEC. 48.    Section 92605 of the Education Code is
amended to read:
   92605.  (a) The regents are hereby requested to consider, as a
component of the University of California's current systemwide
medical education program assessment, the expansion of the Charles R.
Drew/UCLA Undergraduate Medical Education Program.
   (b) The regents are further requested to submit, not later than
June 30, 2003, a report summarizing their findings regarding the
Charles R. Drew/UCLA Undergraduate Medical Education Program to the
Governor, the Legislature, and the California Commission on Higher
Education Performance and Accountability.  
  SEC. 49.    Section 94155 of the Education Code is
amended to read:
   94155.  On or before March 31 in each year, the authority shall
make an annual report of its activities for the preceding calendar
year to the Governor and the Legislature. Each report shall set forth
a complete operating and financial statement covering the authority'
s operations during the year. The authority shall cause an audit of
its books and accounts to be made at least once in each year by
certified public accountants. The authority shall also consult with
the California Commission on Higher Education Performance and
Accountability and the Student Aid Commission with respect to the
need for additional financing of student loan projects. 

  SEC. 50.    Section 99151 of the Education Code is
amended to read:
   99151.  (a) "Admissions data assembly service" means any summary
or report of grades, grade point averages, standardized test scores,
or any combination of grades and test scores, of a test subject used
by any test score recipient.
   (b) "Commission" means the California Commission on Higher
Education Performance and Accountability.
   (c) "Score reporting service" means the reporting of a test
subject's standardized score to a test score recipient by a test
agency.
   (d) "Secure test" means any test that contains items not available
to the public and that, to allow the further use of test items and
to protect the validity and reliability of the test, is subject to
special security procedures in its publication, distribution, and
administration.
   (e) (1) "Standardized test" or "test" means any test administered
in California at the expense of the test subject that is used for the
purposes of admission to, or class placement in, postsecondary
educational institutions or their programs, or any test used for
preliminary preparation for those tests.
   (2) "Standardized test" or "test" includes, but is not limited to,
the Preliminary Scholastic Aptitude Test, the Scholastic Aptitude
Test, the College Board Achievement Tests and Advanced Placement
Tests, the ACT Assessment, the Graduate Record Examination, the
Medical College Admission Test, the Law School Admission Test, the
Dental Admission Testing Program, the Graduate Management Admission
Test, and the Miller Analogies Test.
   (3) A standardized test does not include a test, or part of a
test, that has been in use for less than five years, or that is
administered to a selected group of individuals principally for
research, pretest, equating, guidance, counseling, or for purposes of
meeting graduation requirements of secondary schools and
postsecondary educational institutions.
   (4) Tests that are administered as supplements or auxiliaries to
another test, or that form a specialized component of a test, may be
combined for purposes of this chapter.
   (f) "Testing year" means the 12 calendar months that the test
agency considers either its operational cycle or its fiscal year.
   (g) "Test preparation course" means any curriculum, course of
study, plan of instruction, or method of preparation given for a fee
that is specifically designed or constructed to prepare or improve a
test subject's score on a standardized test.
   (h) "Test program" means all of the administrations of a test of
the same name during a testing year.
   (i) "Test score" or "score" means the value given to the test
subject's performance on a standardized test, administered by the
test agency, whether reported in numerical, percentile, or any other
form.
   (j) "Test score recipient" means any person, organization,
association, corporation, postsecondary education institution, or
governmental agency or subdivision to which the test subject requests
or designates that a test agency report a test score.
   (k) "Test sponsor" or "test agency" means an individual,
partnership, corporation, association, company, firm, institution,
society, trust, or joint stock company that develops, sponsors, or
administers standardized tests.
   (  l  ) "Test subject" or "subject" means an
individual who takes a standardized test. 
  SEC. 51.    Section 99181 of the Education Code is
amended to read:
   99181.  The University of California, the California State
University, and the California Community Colleges shall each prepare
a list of reports required to be submitted on a regular basis to the
Legislature and to state agencies. The purpose of each report shall
be identified, as well as the costs associated with production of the
report. This information shall be submitted to the education policy
and fiscal committees of the Legislature, the Department of Finance,
and the California Commission on Higher Education Performance and
Accountability. The California Commission on Higher Education
Performance and Accountability shall review and comment on the
utility of the required reports identified by the educational
institutions, and offer recommendations for consolidating or
eliminating existing reporting requirements in order to reduce
operating expenses and streamline reporting provisions. 

  SEC. 52.    Section 99182 of the Education Code is
amended to read:
   99182.  (a) On or before November 15 of each year, the California
Commission on Higher Education Performance and Accountability shall
submit a higher education report to the Legislature and the Governor
that provides information to the citizens of the state on the
significant indicators of performance of the public colleges and
universities. This annual report shall be presented in a readable
format. Prior to publication, the commission shall distribute a draft
of the report to all public colleges and universities for comment.
   (b) The commission, in cooperation with the public colleges and
universities, shall develop and adopt a format for the higher
education report specified in subdivision (a) and the information to
be included. The following types of information shall be considered
for inclusion in the report with respect to public universities:
   (1) The retention rate of students.
   (2) The proportion of lower division instructional courses taught
by tenured and tenure-track faculty.
   (3) The minimum number of hours per semester required to be spent
by faculty in student advisement.
   (4) The proportion of graduate and undergraduate students
participating in sponsored research programs.
   (5) Placement data on graduates.
   (6) The proportional changes in the participation and graduation
rates of students from groups historically underrepresented in higher
education.
   (7) The proportion of graduate students who received undergraduate
degrees (A) at the institution, (B) within the state, (C) within the
United States, and (D) from other nations.
   (8) The number of full-time students who have transferred from a
California community college.
   (9) Demonstrable evidence of improvements in student knowledge,
capacities, and skills between entrance and graduation, where this
evidence exists.
   (10) Results of surveys of students regarding student attitudes
and experiences, where these surveys exist.
   (c) The following types of information shall be considered for
inclusion in the report with respect to public community colleges:
   (1) The retention rate of students.
   (2) The proportion of remedial or developmental education courses
taught by full-time faculty.
   (3) The number of hours per student per semester spent by faculty
in student advisement.
   (4) Placement data on graduates.
   (5) The proportional change in the participation and graduation
rate of students from groups historically underrepresented in higher
education.
   (6) The number of students who have transferred into a four-year,
postsecondary educational institution, by ethnicity and gender.
   (7) Demonstrable evidence of improvements in student knowledge,
capacities, and skills between entrance and graduation, where this
evidence exists.
   (8) Results of surveys of students regarding student attitudes and
experiences, where these surveys exist.  
                                   SEC. 53.   
Section 99202 of the Education Code is amended to read:
   99202.  (a) Within each subject matter project, a project advisory
board shall be established to do all of the following:
   (1) Set guidelines for project sites.
   (2) Review and recommend site proposals for funding.
   (3) Monitor project activities to ensure that they adequately
reflect the priorities of the project and that projects comply with
the requirements of this chapter.
   (4) Perform other duties as determined by the Concurrence
Committee rules and regulations adopted pursuant to subdivision (b)
of Section 99200.
   (b) The composition of each advisory board shall be as follows:
   (1) One representative selected by the California Commission on
Higher Education Performance and Accountability.
   (2) Two representatives selected by the President of the
University of California, one of whom is a member of the faculty in
the discipline addressed by the project.
   (3) Two representatives selected by the Chancellor of the
California State University, one of whom is a member of the faculty
in the discipline addressed by the project.
   (4) Three representatives selected by the Superintendent, one of
whom is a classroom teacher in the subject areas addressed by the
project.
   (5) Two representatives of the state board, one of whom is a
classroom teacher in the subject areas addressed by the subject.
   (6) One representative selected by the Governor.
   (7) One representative selected by the Commission on Teacher
Credentialing.
   (8) One representative of the statewide professional organization
of teachers in the subject matter addressed by the project, to be
selected by the president of that organization. If there is more than
one statewide professional organization of teachers in that subject
area, the members of the advisory board may choose which organization
shall select the representative and may choose to include a
representative of one or more of the other organizations as nonvoting
members of the advisory board.
   (9) Two representatives of the California Community Colleges
selected by the Chancellor of the California Community Colleges, one
of whom is a faculty member in the subject matter area addressed by
the project.
   (10) Two representatives of an independent postsecondary
educational institution selected by the Association of Independent
California Colleges and Universities, one of whom is a member of the
faculty in the discipline addressed by the project. 

  SEC. 54.    Section 11126 of the Government Code
is amended to read:
   11126.  (a) (1) This article does not prevent a state body from
holding closed sessions during a regular or special meeting to
consider the appointment, employment, evaluation of performance, or
dismissal of a public employee or to hear complaints or charges
brought against that employee by another person or employee unless
the employee requests a public hearing.
   (2) As a condition to holding a closed session on the complaints
or charges to consider disciplinary action or to consider dismissal,
the employee shall be given written notice of his or her right to
have a public hearing, rather than a closed session, and that notice
shall be delivered to the employee personally or by mail at least 24
hours before the time for holding a regular or special meeting. If
notice is not given, any disciplinary or other action taken against
any employee at the closed session shall be null and void.
   (3) The state body also may exclude from any public or closed
session, during the examination of a witness, any or all other
witnesses in the matter being investigated by the state body.
   (4) Following the public hearing or closed session, the body may
deliberate on the decision to be reached in a closed session.
   (b) For purposes of this section, "employee" does not include any
person who is elected to, or appointed to a public office by, any
state body. However, officers of the California State University who
receive compensation for their services, other than per diem and
ordinary and necessary expenses, shall, when engaged in that
capacity, be considered employees. Furthermore, for purposes of this
section, the term employee includes a person exempt from civil
service pursuant to subdivision (e) of Section 4 of Article VII of
the California Constitution.
   (c) Nothing in this article shall be construed to do any of the
following:
   (1) Prevent state bodies that administer the licensing of persons
engaging in businesses or professions from holding closed sessions to
prepare, approve, grade, or administer examinations.
   (2) Prevent an advisory body of a state body that administers the
licensing of persons engaged in businesses or professions from
conducting a closed session to discuss matters that the advisory body
has found would constitute an unwarranted invasion of the privacy of
an individual licensee or applicant if discussed in an open meeting,
provided the advisory body does not include a quorum of the members
of the state body it advises. Those matters may include review of an
applicant's qualifications for licensure and an inquiry specifically
related to the state body's enforcement program concerning an
individual licensee or applicant where the inquiry occurs prior to
the filing of a civil, criminal, or administrative disciplinary
action against the licensee or applicant by the state body.
   (3) Prohibit a state body from holding a closed session to
deliberate on a decision to be reached in a proceeding required to be
conducted pursuant to Chapter 5 (commencing with Section 11500) or
similar provisions of law.
   (4) Grant a right to enter any correctional institution or the
grounds of a correctional institution where that right is not
otherwise granted by law, nor shall anything in this article be
construed to prevent a state body from holding a closed session when
considering and acting upon the determination of a term, parole, or
release of any individual or other disposition of an individual case,
or if public disclosure of the subjects under discussion or
consideration is expressly prohibited by statute.
   (5) Prevent any closed session to consider the conferring of
honorary degrees, or gifts, donations, and bequests that the donor or
proposed donor has requested in writing to be kept confidential.
   (6) Prevent the Alcoholic Beverage Control Appeals Board from
holding a closed session for the purpose of holding a deliberative
conference as provided in Section 11125.
   (7) (A) Prevent a state body from holding closed sessions with its
negotiator prior to the purchase, sale, exchange, or lease of real
property by or for the state body to give instructions to its
negotiator regarding the price and terms of payment for the purchase,
sale, exchange, or lease.
   (B) However, prior to the closed session, the state body shall
hold an open and public session in which it identifies the real
property or real properties that the negotiations may concern and the
person or persons with whom its negotiator may negotiate.
   (C) For purposes of this paragraph, the negotiator may be a member
of the state body.
   (D) For purposes of this paragraph, "lease" includes renewal or
renegotiation of a lease.
   (E) Nothing in this paragraph shall preclude a state body from
holding a closed session for discussions regarding eminent domain
proceedings pursuant to subdivision (e).
   (8) Prevent the California Commission on Higher Education
Performance and Accountability from holding closed sessions to
consider matters pertaining to the appointment or termination of the
Director of the California Commission on Higher Education Performance
and Accountability.
   (9) Prevent the Council for Private Postsecondary and Vocational
Education from holding closed sessions to consider matters pertaining
to the appointment or termination of the Executive Director of the
Council for Private Postsecondary and Vocational Education.
   (10) Prevent the Franchise Tax Board from holding closed sessions
for the purpose of discussion of confidential tax returns or
information the public disclosure of which is prohibited by law, or
from considering matters pertaining to the appointment or removal of
the Executive Officer of the Franchise Tax Board.
   (11) Require the Franchise Tax Board to notice or disclose any
confidential tax information considered in closed sessions, or
documents executed in connection therewith, the public disclosure of
which is prohibited pursuant to Article 2 (commencing with Section
19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and
Taxation Code.
   (12) Prevent the Corrections Standards Authority from holding
closed sessions when considering reports of crime conditions under
Section 6027 of the Penal Code.
   (13) Prevent the State Air Resources Board from holding closed
sessions when considering the proprietary specifications and
performance data of manufacturers.
   (14) Prevent the State Board of Education or the Superintendent of
Public Instruction, or any committee advising the board or the
Superintendent, from holding closed sessions on those portions of its
review of assessment instruments pursuant to Chapter 5 (commencing
with Section 60600) of, or pursuant to Chapter 9 (commencing with
Section 60850) of, Part 33 of Division 4 of Title 2 of the Education
Code during which actual test content is reviewed and discussed. The
purpose of this provision is to maintain the confidentiality of the
assessments under review.
   (15) Prevent the California Integrated Waste Management Board or
its auxiliary committees from holding closed sessions for the purpose
of discussing confidential tax returns, discussing trade secrets or
confidential or proprietary information in its possession, or
discussing other data, the public disclosure of which is prohibited
by law.
   (16) Prevent a state body that invests retirement, pension, or
endowment funds from holding closed sessions when considering
investment decisions. For purposes of consideration of shareholder
voting on corporate stocks held by the state body, closed sessions
for the purposes of voting may be held only with respect to election
of corporate directors, election of independent auditors, and other
financial issues that could have a material effect on the net income
of the corporation. For the purpose of real property investment
decisions that may be considered in a closed session pursuant to this
paragraph, a state body shall also be exempt from the provisions of
paragraph (7) relating to the identification of real properties prior
to the closed session.
   (17) Prevent a state body, or boards, commissions, administrative
officers, or other representatives that may properly be designated by
law or by a state body, from holding closed sessions with its
representatives in discharging its responsibilities under Chapter 10
(commencing with Section 3500), Chapter 10.3 (commencing with Section
3512), Chapter 10.5 (commencing with Section 3525), or Chapter 10.7
(commencing with Section 3540) of Division 4 of Title 1 as the
sessions relate to salaries, salary schedules, or compensation paid
in the form of fringe benefits. For the purposes enumerated in the
preceding sentence, a state body may also meet with a state
conciliator who has intervened in the proceedings.
   (18) (A) Prevent a state body from holding closed sessions to
consider matters posing a threat or potential threat of criminal or
terrorist activity against the personnel, property, buildings,
facilities, or equipment, including electronic data, owned, leased,
or controlled by the state body, where disclosure of these
considerations could compromise or impede the safety or security of
the personnel, property, buildings, facilities, or equipment,
including electronic data, owned, leased, or controlled by the state
body.
   (B) Notwithstanding any other law, a state body, at any regular or
special meeting, may meet in a closed session pursuant to
subparagraph (A) upon a two-thirds vote of the members present at the
meeting.
   (C) After meeting in closed session pursuant to subparagraph (A),
the state body shall reconvene in open session prior to adjournment
and report that a closed session was held pursuant to subparagraph
(A), the general nature of the matters considered, and whether any
action was taken in closed session.
   (D) After meeting in closed session pursuant to subparagraph (A),
the state body shall submit to the Legislative Analyst written
notification stating that it held this closed session, the general
reason or reasons for the closed session, the general nature of the
matters considered, and whether any action was taken in closed
session. The Legislative Analyst shall retain for no less than four
years any written notification received from a state body pursuant to
this subparagraph.
   (d) (1) Notwithstanding any other law, any meeting of the Public
Utilities Commission at which the rates of entities under the
commission's jurisdiction are changed shall be open and public.
   (2) Nothing in this article shall be construed to prevent the
Public Utilities Commission from holding closed sessions to
deliberate on the institution of proceedings, or disciplinary actions
against any person or entity under the jurisdiction of the
commission.
   (e) (1) Nothing in this article shall be construed to prevent a
state body, based on the advice of its legal counsel, from holding a
closed session to confer with, or receive advice from, its legal
counsel regarding pending litigation when discussion in open session
concerning those matters would prejudice the position of the state
body in the litigation.
   (2) For purposes of this article, all expressions of the
lawyer-client privilege other than those provided in this subdivision
are hereby abrogated. This subdivision is the exclusive expression
of the lawyer-client privilege for purposes of conducting closed
session meetings pursuant to this article. For purposes of this
subdivision, litigation shall be considered pending when any of the
following circumstances exist:
   (A) An adjudicatory proceeding before a court, an administrative
body exercising its adjudicatory authority, a hearing officer, or an
arbitrator, to which the state body is a party, has been initiated
formally.
   (B) (i) A point has been reached where, in the opinion of the
state body on the advice of its legal counsel, based on existing
facts and circumstances, there is a significant exposure to
litigation against the state body.
   (ii) Based on existing facts and circumstances, the state body is
meeting only to decide whether a closed session is authorized
pursuant to clause (i).
   (C) (i) Based on existing facts and circumstances, the state body
has decided to initiate or is deciding whether to initiate
litigation.
   (ii) The legal counsel of the state body shall prepare and submit
to the state body a memorandum stating the specific reasons and legal
authority for the closed session. If the closed session is pursuant
to paragraph (1), the memorandum shall include the title of the
litigation. If the closed session is pursuant to subparagraph (A) or
(B), the memorandum shall include the existing facts and
circumstances on which it is based. The legal counsel shall submit
the memorandum to the state body prior to the closed session, if
feasible, and in any case no later than one week after the closed
session. The memorandum shall be exempt from disclosure pursuant to
Section 6254.25.
   (iii) For purposes of this subdivision, "litigation" includes any
adjudicatory proceeding, including eminent domain, before a court,
administrative body exercising its adjudicatory authority, hearing
officer, or arbitrator.
   (iv) Disclosure of a memorandum required under this subdivision
shall not be deemed as a waiver of the lawyer-client privilege, as
provided for under Article 3 (commencing with Section 950) of Chapter
4 of Division 8 of the Evidence Code.
   (f) In addition to subdivisions (a), (b), and (c), nothing in this
article shall be construed to do any of the following:
   (1) Prevent a state body operating under a joint powers agreement
for insurance pooling from holding a closed session to discuss a
claim for the payment of tort liability or public liability losses
incurred by the state body or any member agency under the joint
powers agreement.
   (2) Prevent the examining committee established by the State Board
of Forestry and Fire Protection, pursuant to Section 763 of the
Public Resources Code, from conducting a closed session to consider
disciplinary action against an individual professional forester prior
to the filing of an accusation against the forester pursuant to
Section 11503.
   (3) Prevent an advisory committee established by the California
Board of Accountancy pursuant to Section 5020 of the Business and
Professions Code from conducting a closed session to consider
disciplinary action against an individual accountant prior to the
filing of an accusation against the accountant pursuant to Section
11503. Nothing in this article shall be construed to prevent an
examining committee established by the California Board of
Accountancy pursuant to Section 5023 of the Business and Professions
Code from conducting a closed hearing to interview an individual
applicant or accountant regarding the applicant's qualifications.
   (4) Prevent a state body, as defined in subdivision (b) of Section
11121, from conducting a closed session to consider any matter that
properly could be considered in closed session by the state body
whose authority it exercises.
   (5) Prevent a state body, as defined in subdivision (d) of Section
11121, from conducting a closed session to consider any matter that
properly could be considered in a closed session by the body defined
as a state body pursuant to subdivision (a) or (b) of Section 11121.
   (6) Prevent a state body, as defined in subdivision (c) of Section
11121, from conducting a closed session to consider any matter that
properly could be considered in a closed session by the state body it
advises.
   (7) Prevent the State Board of Equalization from holding closed
sessions for either of the following:
   (A) When considering matters pertaining to the appointment or
removal of the Executive Secretary of the State Board of
Equalization.
   (B) For the purpose of hearing confidential taxpayer appeals or
data, the public disclosure of which is prohibited by law.
   (8) Require the State Board of Equalization to disclose any action
taken in closed session or documents executed in connection with
that action, the public disclosure of which is prohibited by law
pursuant to Sections 15619 and 15641 of this code and Sections 833,
7056, 8255, 9255, 11655, 30455, 32455, 38705, 38706, 43651, 45982,
46751, 50159, 55381, and 60609 of the Revenue and Taxation Code.
   (9) Prevent the California Earthquake Prediction Evaluation
Council, or other body appointed to advise the Director of the Office
of Emergency Services or the Governor concerning matters relating to
volcanic or earthquake predictions, from holding closed sessions
when considering the evaluation of possible predictions.
   (g) This article does not prevent either of the following:
   (1) The Teachers' Retirement Board or the Board of Administration
of the Public Employees' Retirement System from holding closed
sessions when considering matters pertaining to the recruitment,
appointment, employment, or removal of the chief executive officer or
when considering matters pertaining to the recruitment or removal of
the Chief Investment Officer of the State Teachers' Retirement
System or the Public Employees' Retirement System.
   (2) The Commission on Teacher Credentialing from holding closed
sessions when considering matters relating to the recruitment,
appointment, or removal of its executive director.
   (h) This article does not prevent the Board of Administration of
the Public Employees' Retirement System from holding closed sessions
when considering matters relating to the development of rates and
competitive strategy for plans offered pursuant to Chapter 15
(commencing with Section 21660) of Part 3 of Division 5.
   (i) This article does not prevent the Managed Risk Medical
Insurance Board from holding closed sessions when considering matters
related to the development of rates and contracting strategy for
entities contracting or seeking to contract with the board pursuant
to Part 6.2 (commencing with Section 12693), Part 6.3 (commencing
with Section 12695), Part 6.4 (commencing with Section 12699.50), or
Part 6.5 (commencing with Section 12700) of Division 2 of the
Insurance Code.
   (j) This article does not prevent the board of the State
Compensation Insurance Fund from holding closed sessions in the
following circumstances:
   (1) When considering matters related to claims pursuant to Chapter
1 (commencing with Section 3200) of Part 1 of Division 4 of the
Labor Code, to the extent that confidential medical information or
other individually identifiable information would be disclosed.
   (2) To the extent that matters related to audits and
investigations that have not been completed would be disclosed.
   (3) To the extent that an internal audit containing proprietary
information would be disclosed.
   (4) To the extent that the session would address the development
of rates, contracting strategy, underwriting, or competitive
strategy, pursuant to the powers granted to the board in Chapter 4
(commencing with Section 11770) of Part 3 of Division 2 of the
Insurance Code, when discussion in open session concerning those
matters would prejudice the position of the State Compensation
Insurance Fund.
   (k) The State Compensation Insurance Fund shall comply with the
procedures specified in Section 11125.4 with respect to any closed
session or meeting authorized by subdivision (j), and in addition
shall provide an opportunity for a member of the public to be heard
on the issue of the appropriateness of closing the meeting or
session.  
  SEC. 55.    Section 127785 of the Health and
Safety Code is repealed.  
  SEC. 56.    Section 128030 of the Health and
Safety Code is amended to read:
   128030.  The office, in cooperation with the California Commission
on Higher Education Performance and Accountability, shall administer
the program established pursuant to this article and shall for this
purpose, adopt regulations as it determines are reasonably necessary
to carry out this article.  
  SEC. 57.    Section 24357.8 of the Revenue and
Taxation Code is amended to read:
   24357.8.  (a) In the case of a qualified research contribution,
the amount otherwise allowed as a deduction under Section 24357,
shall be reduced by that amount of the reduction provided by Section
24357.1 that is no greater than the sum of the following:
   (1) One-half of the amount computed pursuant to Section 24357.1
(computed without regard to this paragraph).
   (2) The amount, if any, by which the charitable contribution
deduction under this section for any qualified research contribution
(computed by taking into account the amount determined by paragraph
(1), but without regard to this paragraph) exceeds twice the basis of
the                                                 property.
   (b) For purposes of this section, "qualified research contribution"
means a charitable contribution by a taxpayer of tangible personal
property described in paragraph (1) of Section 1221 of the Internal
Revenue Code, but only if all of the following conditions are met:
   (1) The contribution is to an educational organization that is
described in subsection (b)(1)(A)(ii) of Section 170 of the Internal
Revenue Code and that is an institution of higher education, as
defined in Section 3304(f) of the Internal Revenue Code of 1954, in
California.
   (2) The contribution is made not later than two years after the
date the construction of the property is substantially completed.
   (3) The original use of the property is by the donee.
   (4) The property is scientific equipment or apparatus
substantially all of the use of which by the donee is for research or
experimentation, within the meaning of Section 24365, or for
research training, in physical, applied, or biological sciences, or
for instructional purposes.
   (5) The property is not transferred by the donee in exchange for
money, other property, or services.
   (6) The taxpayer receives from the donee a written statement
representing that its use and disposition of the property will be in
accordance with this section, and with respect to property
substantially all of the use of which is for instructional purposes,
the taxpayer receives from the donee a written statement representing
that the property will be used as an integral part of the
instructional program. In the case of a computer, the statement shall
also represent that the donee has acquired or will acquire,
necessary basic operational software and the means to provide trained
staff to utilize the property.
   (7) The contribution is made on or after July 1, 1983, and on or
before December 31, 1993.
   (8) The taxpayer shall report to the Franchise Tax Board, on forms
prescribed by the board, the name and address of the recipient
educational organization, a description of the qualified charitable
contribution, the fair market value of the contribution, and the date
the contribution was made. The taxpayer shall forward a copy of the
forms, along with the written statements prescribed in paragraph (6),
to the following:
   (A) The President of the University of California, in the case of
contributions to institutions within the University of California
system.
   (B) The California Commission on Higher Education Performance and
Accountability, in the case of contributions to private institutions.

   (C) The Chancellor of the California State University, in the case
of contributions to institutions within the California State
University system.
   (D) The Chancellor of the California Community Colleges, in the
case of contributions to institutions within the California Community
College system.
   (c) For purposes of this section, the term "taxpayer" shall not
include a service organization, as defined in Section 414(m)(3) of
the Internal Revenue Code.  
  SEC. 58.    Section 10529 of the Unemployment
Insurance Code is amended to read:
   10529.  (a) The services provided by the existing labor market
information system within the department shall include workforce and
economic information that does all of the following:
   (1) Provides data and information to the state Workforce
Investment Board created pursuant to Section 2821 of Title 29 of the
United States Code, to enable the board to plan, operate, and
evaluate investments in the state's workforce preparation system that
will make the California economy more productive and competitive.
   (2) Provides data and information for continuous strategic
planning and the development of policies for the growth and
competitiveness of the California economy.
   (3) Identifies and combines information from various state
databases to produce useful, geographically based analysis and
products, to the extent possible using existing resources.
   (4) Provides technical assistance related to accessing workforce
and economic information to local governments, public-sector
entities, research institutes, nonprofit organizations, and community
groups that have various levels of expertise, to the extent possible
using existing resources.
   (b) The department shall coordinate with the State Department of
Education, the Chancellor of the California Community Colleges, the
State Department of Social Services, the California Commission on
Higher Education Performance and Accountability, the Department of
Finance, and the Franchise Tax Board in developing economic and
workforce information. The department shall also solicit input in the
operation of the program from public and private agencies and
individuals that make use of the labor market information provided by
the department.  
  SEC. 59.    Section 4341.5 of the Welfare and
Institutions Code is amended to read:
   4341.5.  In order to ensure that there will be an adequate number
of qualified psychiatrists and psychologists with forensic skills,
the State Department of State Hospitals shall, to the extent
resources are available, plan with the University of California,
private universities, and the California Commission on Higher
Education Performance and Accountability for the development of
programs for the training of psychiatrists and psychologists with
forensic skills, and recommend appropriate incentive measures, such
as state scholarships.  
  SEC. 60.    Section 4421 of the Welfare and
Institutions Code is amended to read:
   4421.  In order to ensure that there will be an adequate number of
qualified psychiatrists and psychologists with forensic skills, the
State Department of Developmental Services shall plan with the
University of California, private universities, and the California
Commission on Higher Education Performance and Accountability for the
development of programs for the training of psychiatrists and
psychologists with forensic skills. 
                                                   
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