Bill Text: CA SB969 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public postsecondary education: student fee policy.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2010-08-18 - Read second time. To third reading. [SB969 Detail]

Download: California-2009-SB969-Amended.html

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BILL NUMBER: SB 969	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2010
	AMENDED IN SENATE  APRIL 28, 2010

INTRODUCED BY   Senators Liu and Romero
   (Principal coauthor: Senator Price)
   (Coauthor: Senator Hancock)

                        FEBRUARY 5, 2010

   An act to add Article 3.5 (commencing with Section 66027) to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
relating to public postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 969, as amended, Liu. Public postsecondary education: student
fee policy.
   Existing law, known as the Donahoe Higher Education Act, provides
for a public postsecondary education system in this state. This
system consists of the University of California, the California State
University, and the California Community Colleges. Existing law
authorizes these institutions to require that mandatory systemwide
fees, among other fees, be paid by students at these institutions.
The provisions of the Donahoe Higher Education Act apply to the
University of California only to the extent that the Regents of the
University of California act by resolution to make them applicable.
   This bill would limit mandatory systemwide fees that are charged
to resident undergraduate students enrolled in the University of
California and the California State University to a specified amount,
based on the average total cost of education, as defined, 
at   in  the respective  segment 
 segments  . The bill would prohibit the trustees and the
regents from increasing those mandatory systemwide fees by an amount
exceeding a specified percentage of those fees charged to students
for the immediately preceding academic year, and would prohibit a
specified mandatory systemwide fee increase adopted on or after
 January   July  1, 2011, from being
effective before 6 months have elapsed after the date on which the
fee increase is adopted. The bill would also require the regents and
the trustees to develop methodologies for the adjustment of fees in
accordance with a prescribed procedure, and would require the
California Postsecondary Education Commission to annually review, and
report to the Legislature and the Director of Finance, its findings,
conclusions, or recommendations regarding the implementation of
policies implemented pursuant to the bill.
   This bill would provide that  the act does  
its provisions would  not apply to the University of California,
except to the extent that the Regents of the University of
California adopt a resolution making  it   them
 applicable. The bill would request the regents to adopt
policies that are consistent with  the act  
this bill  . 
   These provisions would become operative on July 1, 2011. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The state has long recognized the value of providing broad
access to postsecondary education to the state's citizens. It has
demonstrated that commitment by investing in postsecondary education
and maintaining public student fee levels that are fiscally
responsible and affordable. The student fee principles expressed
herein seek to continue the state's historic commitment to ensuring
access and maintaining quality throughout the state's public
universities while recognizing the fiscal challenges that confront
both the state and postsecondary education.
   (b) Historically, the state has borne the preponderance of
responsibility for providing the fiscal resources necessary to ensure
that all eligible state residents have access to high-quality
educational opportunities at the state's public colleges and
universities. Further, the state bears the principal and overarching
responsibility for ensuring that all financially needy students have
the financial assistance necessary for them to enroll in institutions
of higher education and complete their postsecondary education
objectives.
   (c) Changes in resident student fees or in student financial aid
funding or packaging policies should take into consideration the
total cost to the student of attending the university, including
mandatory campus-based student fees, housing and living expenses, as
well as all other expenses associated with university attendance.
   (d) Any necessary increases in mandatory systemwide fees should be
accompanied by appropriate increases in funding for need-based
student financial aid.
  SEC. 2.  Article 3.5 (commencing with Section 66027) is added to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
to read:

      Article 3.5.  Student Fee Policy


   66027.  The following state policies regarding mandatory
systemwide resident fees and financial aid are established for
students enrolled in the state's public universities:
   (a) The total cost of a public postsecondary education should be a
shared responsibility of students, families, and the State of
California. However, in order to keep resident undergraduate student
fees at the state's public universities as low and affordable as
possible, the state shall bear the preponderance of responsibility
for funding postsecondary education.
   (b) So that students and their families can better prepare
financially for college expenses, any changes in resident student
fees should be gradual, moderate, and predictable. Any potential
adjustments in resident student fees should take into consideration,
and be balanced with, available state General Fund revenues to ensure
that the access, quality, and affordability of the state's public
universities are not adversely affected.
   (c) Changes in resident student fees should take into
consideration a number of factors, including the total cost of
educating a student, the appropriate share of the cost of instruction
to be paid by the student, and information concerning families'
ability to pay. Student financial aid policy and programs should
ensure affordability for students from all income levels. Recognition
of these indicators will better ensure that changes in resident
student fees are gradual and moderate.
   (d) As changes in resident student fees and financial aid
resources are considered, the state should have an understanding of
the impact that these changes will have on both current and
prospective students. Efforts should be employed to mitigate any
negative impact on financially needy students.
   (e) To the extent that budget decisions are made in a timely
manner, adequate advance notice should be provided to students
regarding future student fees, thereby allowing them and their
families greater time to prepare for the fees to be assessed.
   (f) In order to ensure that access is not precluded for any
eligible student, but particularly financially needy students, all
current and prospective students should be provided with timely
information concerning student financial aid, including the processes
associated with applying for and obtaining student financial
assistance.
   (g) Student fee and financial aid policies should encourage and
promote a student's timely completion of the requirements necessary
for degree attainment.
   (h) To ensure that financially needy students are provided with
assistance in managing the total cost of their university attendance,
financial aid programs, including institutional aid, should be
aligned with the distinct financial needs of the systems' student
populations and student fee levels.
   (i) Revenues derived from student fees should remain within the
respective university system's budget in order to provide benefits to
the students enrolled within the system.
   66027.1.  For each of the following segments of public
postsecondary education, the mandatory systemwide fees charged to
resident undergraduate students for any academic year shall not
exceed the following amounts:
   (a) For the University of California, 40 percent of the average
total cost of education for that academic year.
   (b) For the California State University, 30 percent of the average
total cost of education for that academic year.
   66027.2.  (a) In any academic year, the trustees and the regents
shall not increase the mandatory systemwide fees charged to resident
undergraduate students enrolled in the respective institutions by an
amount exceeding the percentage change in the  annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year, of the
mandatory systemwide fees charged to those students for the
immediately preceding academic year. 
    (b)     This percentage
change shall be determined using the latest data available as of May
10 of the preceding fiscal year compared with the annual average
value of the same deflator for the 12-month period ending in the
third quarter of the second preceding fiscal year, using the latest
data available as of May 10 of the preceding fiscal year, as reported
by the Department of Finance. The total amount of mandatory
systemwide fees, as increased, shall not exceed the limits described
in Section 66027.1.   state per capita personal income
in the prior fiscal year. The total amount of mandatory systemwide
fees, as increased, shall not exceed the limits described in Section
66027.1.  
    (b) If the percentage change in the state per capita personal
income as determined pursuant to subdivision (a) is negative, the
change in per capita personal income for purposes of increasing fees
shall be deemed to be zero. 
   66027.3.  Any increase in the mandatory systemwide fees charged to
a resident undergraduate student enrolled in the University of
California or the California State University that is adopted on or
after  January   July  1, 2011, shall not
become effective before six months have elapsed after the date on
which the fee increase is adopted.
   66027.4.  To carry out the responsibilities of this section, the
regents and the trustees shall each develop a rational and
transparent methodology for adjusting mandatory systemwide resident
student fees consistent with the student fee policy principles set
forth in Section 66027. These methodologies shall be developed in
consultation with appropriate student representatives through student
fee advisory committees and, once developed, shall be formally
adopted by the regents and the trustees, respectively, in open public
meetings. The annual budgets of the segments shall be drafted on the
basis that fees will change in accordance with the methodology
established under this section.
   66027.5.  Following the final action of its governing body, each
system shall employ appropriate procedures to notify students of the
student fees to be assessed in the upcoming academic year. In
addition, each system shall simultaneously provide students with
information concerning the availability of student financial aid and
the procedures for obtaining that aid in order to assist students
with meeting the increased costs of university attendance.
   66027.6.  (a) Each year, prior to March 1, the California
Postsecondary Education Commission shall review institutional
compliance with the policies set forth in this article, and report,
in writing, to the Legislature and the Director of Finance any
findings, conclusions, or recommendations of the commission regarding
the implementation of these policies.
   (b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
   66027.7.  As used in this article, the following terms have the
following meanings:
   (a) (1) "Average total cost of education" means the amount
calculated by dividing the total cost of education for the University
of California or the California State University, whichever is
applicable, by the total number of full-time equivalent students
enrolled at that segment.
   (2) For purposes of paragraph (1), "total cost of education"
means, for the University of California and the California State
University, the sum of appropriations and projected revenues from all
of the following:
   (A) The General Fund.
   (B) Higher education fees and income.
   (C) The California State Lottery Education Fund.
   (b) "Mandatory systemwide fees" means the fees that all students
enrolled in the California State University or the University of
California are required to pay in order to enroll in courses for the
academic term pursuant to any law or any policy adopted by 
its governing board   the governing boards of the
respective segments  .
   (c) "Regents" means the Regents of the University of California.
   (d) "Resident" means a student who is exempt from paying
nonresident tuition pursuant to Chapter 1 (commencing with Section
68000) of Part 41. 
   (e) "State per capita personal income" means calendar fourth
quarter California personal income for the prior fiscal year, as
estimated by the Bureau of Economic Analysis of the United States
Department of Commerce, divided by the California civilian
population, as estimated by the Department of Finance pursuant to
subdivision (d) of Section 13308 of the Government Code. 

   (e) 
    (f)  "Trustees" means the Trustees of the California
State University.
   66027.8.  (a) This  chapter   article 
shall not apply to the University of California, except to the extent
that the regents, by appropriate resolution, make this 
chapter   article  applicable.
   (b) The regents are requested to adopt policies governing
increases in mandatory systemwide fees that are consistent with this
 chapter   article  . 
   66027.9.  This article shall become operative on July 1, 2011.