BILL NUMBER: SB 42	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 31, 2015
	AMENDED IN ASSEMBLY  JULY 14, 2015
	AMENDED IN ASSEMBLY  JULY 1, 2015
	AMENDED IN SENATE  APRIL 7, 2015

INTRODUCED BY   Senator Liu

                        DECEMBER 2, 2014

   An act to add and repeal Article 2.6 (commencing with Section
66010.96) of Chapter 2 of Part 40 of Division 5 of Title 3 of the
Education Code, relating to postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 42, as amended, Liu. Postsecondary education: Office of Higher
Education Performance and Accountability.
   (1) 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 establish the Office of Higher Education
Performance and Accountability as the statewide postsecondary
education coordination 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 
 an 8-member  advisory board  to the office
 for the purpose of  examining, and making
recommendations to, the office regarding the functions and operations
of the office and  reviewing and commenting on any
recommendations made by the office to the Governor and the
Legislature  , among other specified duties  .
   The bill would specify the functions and responsibilities of the
office, which would include, among other things, participation, as
specified, in the identification and periodic revision of state goals
and priorities for higher education,  reviewing and making
recommendations regarding cross-segmental and   interagency
initiatives and programs,  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 authorize the office to require the governing
boards and institutions of public postsecondary education to submit
data to the office on plans and programs, costs, selection and
retention of students, enrollments, plant capacities, and other
matters pertinent to effective planning, policy development, and
articulation and coordination. To the extent that this provision
would impose new duties on community college districts, it would
constitute a state-mandated local program.
   The bill would require the office to administer a study to
evaluate the admissions policies used by the University of California
and the California State University to determine the number of
freshman and transfer students eligible for admission to those
segments. The bill would require the office to submit a report
summarizing the methodology and findings of this study to the
Legislature and the Governor by December 1,  2016. 
 2017.  The bill would also 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.
   The bill would repeal these provisions on January 1, 2021.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Article 2.6 (commencing with Section 66010.96) is added
to Chapter 2 of Part 40 of Division 5 of Title 3 of the Education
Code, to read:

      Article 2.6.  Office of Higher Education Performance and
Accountability


   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 consulting
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) (1) An advisory board to the office is  
is hereby  established for the purpose of examining and making
recommendations  to the office  regarding the functions and
operations of the office and reviewing and commenting on any
recommendations made by the office to the Governor and the
Legislature.
   (2) The advisory board shall consist of  the chair of the
Senate Committee on Education and the chair of the Assembly Committee
on Higher Education, who shall serve as ex officio members, and
 six public members with experience in postsecondary education,
appointed to terms of four years as follows:
   (A) Three members of the advisory board shall be appointed by the
Senate Committee on Rules.
   (B) Three members of the advisory board shall be appointed by the
Speaker of the Assembly.
   (3) The office shall actively seek input from, and consult with,
the advisory board regarding its functions, operations and
recommendations, and provide the advisory board with sufficient time
to review and comment.
   (4) Advisory board meetings shall be subject to the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).
Advisory board materials shall be posted on the Internet.
   (5) The advisory board shall meet at least quarterly, and shall
appoint one of its members to represent the board for purposes of
communicating with the Legislature. 
   (6) The advisory board shall be responsible for developing an
independent annual report on the condition of higher education in
California.  
   (7) The advisory board shall be responsible for issuing an annual
review of the performance of the Executive Director of the Office of
Higher Education Performance and Accountability.  
   (8) Members of the advisory board shall serve without
compensation, but shall receive reimbursement for actual and
necessary expenses incurred in connection with the performance of
their duties as board members. 
   (e) The office shall consult with the higher education segments
and stakeholders, as appropriate, in the conduct of its duties and
responsibilities. For purposes of this subsection, higher education
segments shall have the same meaning as in Section 66010.95, and
higher education stakeholders shall include, but not necessarily be
limited to, postsecondary faculty and students, K-12 representatives,
and representatives of the business community.
   66010.962.  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, 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 takes into
consideration 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.

   (b)  
   (b) It shall review and make recommendations, as necessary,
regarding cross-segmental and interagency initiatives and programs in
areas that may include, but are not necessarily limited to,
efficiencies in instructional delivery, financial aid, transfer, and
workforce coordination. 
    (   c)  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) 
    (   d)  It shall review proposals by the public
segments for new programs, the priorities that guide the public
segments, and the degree of coordination between those segments and
nearby public, independent, and private postsecondary educational
institutions, and shall make recommendations regarding those
proposals to the Legislature and the Governor. 
   (d) 
    (   e)  (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 compatibility 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, following consultation with, and receipt of
a recommendation from, the advisory board, 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) 
    (   f)  It shall review all proposals for
changes in eligibility pools for admission to public institutions and
segments of postsecondary education, and shall make recommendations
regarding those proposals 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) 
    (   g)  It shall submit reports to the
Legislature in compliance with Section 9795 of the Government Code.

   (g) 
    (   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.
   66010.964.  Notwithstanding any other law, the office is
authorized to require the governing boards and the institutions of
public postsecondary education to submit data to the office on plans
and programs, costs, selection and retention of students,
enrollments, plant capacities, and other matters pertinent to
effective planning, policy development, and articulation and
coordination. The office shall furnish information concerning these
matters to the Governor and to the Legislature as requested by them.
   66010.966.  (a) (1) The office shall administer a study to
evaluate the admissions policies used by the University of California
and the California State University to determine the number of
freshman and transfer students eligible for admission to each of
these segments.
   (2) The director of the office, or his or her designee, shall
convene a workgroup that includes, but is not necessarily limited to,
representatives from the University of California, the California
State University, the State Department of Education, the Department
of Finance, and the Legislative Analyst's Office, to consider the
overall approach to the study.
   (b) The study shall report the number of students eligible for
admission to each segment by race, gender, ethnicity, and region, and
shall include an analysis of the factors affecting eligibility for
admission to the University of California and the California State
University, by racial or ethnic group and by income level.
   (c) The office shall submit a report summarizing the methodology
and findings of the study to the Legislature and the Governor by
December 1,  2016.   2017.  The report
shall identify whether the University of California and the
California State University are admitting students as described in
the Master Plan for Higher Education. The report shall also include a
discussion of any adjustments the University of California and the
California State University have made, or plan to make, to admissions
policies in response to the findings of the study.
   (d) The report to be submitted pursuant to subdivision (c) shall
be submitted in compliance with Section 9795 of the Government Code.
   (e) The office may execute contracts to perform the study
specified in this section. Any contracts executed for the study
specified in this section are not subject to the provisions of
Article 1 (commencing with Section 10100) of Chapter 1 of Part 2 of
Division 2 of the Public Contract Code, or Article 6 (commencing with
Section 999) of Chapter 6 of Division 4 of the Military and Veterans
Code.
   (f) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
   66010.968.  (a) 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 66010.962.
   (b) On or before January 1, 2020, the Legislative Analyst's Office
shall review and report to the Legislature regarding the performance
of the office in fulfilling its functions and responsibilities as
outlined in Section 66010.962.
   (c) This article shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.