BILL NUMBER: SB 42	AMENDED
	BILL TEXT

	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  Sections 66010.96, 66010.97, and 66010.98
to   and repe   al 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: 
California Commission on   Office of  Higher
Education Performance and Accountability. 
    Existing 
    (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 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 
 participation, as specified, in the identification and periodic
revision of state goals and priorities  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   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. 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:  no  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 established for the
purpose of examining and making recommendations 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 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.
   (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) 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 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) (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) 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) It shall submit reports to the Legislature in compliance with
Section 9795 of the Government Code.
   (g) 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 work group 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. 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. 
  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.