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AB-1655 University of California and California State University: requests from the California State Auditor’s office: prohibition on coordination.(2017-2018)

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Date Published: 06/19/2017 09:00 PM
AB1655:v97#DOCUMENT

Amended  IN  Senate  June 19, 2017
Amended  IN  Assembly  April 04, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1655


Introduced by Assembly Member Grayson

February 17, 2017


An act to amend Section 92670 of of, and to add Section 89013 to, the Education Code, relating to public postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 1655, as amended, Grayson. Public postsecondary education: University of California: biennial report. and California State University: requests from the California State Auditor’s office: prohibition on coordination.

Existing

(1) Existing law requires the University of California to report biennially to the Legislature and the Department of Finance on its total costs of education, as specified. Under existing law, these reports are required to be submitted on or before October 1 of each even-numbered year, commencing in 2014 and continuing until the requirement for submission of these biennial reports becomes inoperative on January 1, 2021.
This bill would express the intent of the Legislature to ensure that the Legislature has accurate information upon which to base funding decisions relating to the University of California. The bill would require that the amounts included in the reports be based on publicly available information. The bill would also require that the costs reported be prior year actual expenditures. The bill would require the report to include specified information detailing all funds acquired by the Office of the President of the University of California and how those funds are classified and spent. The bill, whenever a request for information relating to the security of funds of the University of California is made by the California State Auditor’s Office pursuant to these provisions to one or more campuses of the University of California, would prohibit those campuses from coordinating their response with, or seeking counsel, advice, or similar contact regarding their response from, the Office of the President of the University of California before submitting the requested information to the California State Auditor’s Office. The bill would require the California State Auditor’s Office, when requesting information under these provisions, to include a statement in the request that it is requesting the information pursuant to these provisions and that the request for information is not to be shared with the Office of the President of the University of California. The bill would also change the date on which the requirement for submission of these biennial reports becomes inoperative to January 1, 2023.
(2) Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. Existing law authorizes the trustees to select a chief executive officer for the university, known as the Chancellor of the California State University, to employ other officers and employees, and to delegate powers and responsibilities to these individuals.
This bill, whenever a request for information of the California State University is made by the California State Auditor’s Office pursuant to these provisions to one or more campuses of the California State University, would prohibit those campuses from coordinating their response with, or seeking counsel, advice, or similar contact regarding their response from, the Office of the Chancellor of the California State University before submitting the requested information to the California State Auditor’s Office. The bill would require the California State Auditor’s Office, when requesting information under these provisions, to include a statement in the request that it is requesting the information pursuant to these provisions and that the request for information is not to be shared with the Office of the Chancellor of the California State University.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 89013 is added to the Education Code, to read:

89013.
 (a) Whenever a request for information of the California State University is made by the California State Auditor’s Office pursuant to this section to one or more campuses of the California State University, those campuses shall not coordinate their response with, or seek counsel, advice, or similar contact regarding their response from, the Office of the Chancellor of the California State University before submitting the requested information to the California State Auditor’s Office.
(b) The California State Auditor’s Office, when requesting information under this subdivision, shall include a statement in the request that it is requesting the information pursuant to subdivision (a) and that the request for information is not to be shared with the Office of the Chancellor of the California State University.

SECTION 1.SEC. 2.

 Section 92670 of the Education Code is amended to read:

92670.
 (a) (1) It is the intent of the Legislature, in enacting this section, to ensure that the Legislature has accurate information upon which to base funding decisions relating to the University of California.
(2) The University of California shall report biennially to the Legislature and the Department of Finance, on or before October 1, 2014, and on or before October 1 of each even-numbered year thereafter, on the total costs of education at the University of California. The amounts included in the reports required by this section shall be based on publicly available information.
(3) The report required in paragraph (2) shall also include all of the following information:
(A) (i) All funds acquired by the Office of the President of the University of California, from all sources, for each year of the reporting period.
(ii) All funds that the Office of the President of the University of California spent each year of the reporting period, including funds the office deems as discretionary funds or restricted funds.
(B) Which funds identified in subparagraph (A) are deemed discretionary funds or restricted funds, and the current policy used to determine which funds are deemed discretionary funds or restricted funds.
(C) What programs or projects were funded from discretionary funds or restricted funds identified in subparagraph (B), and what amount of discretionary funds, restricted funds, or both, were used for each program or project.
(b) The report shall identify the costs of undergraduate education, graduate academic education, graduate professional education, and research activities. All four categories listed in this subdivision shall be reported in total and disaggregated separately by health sciences disciplines, disciplines included in paragraph (13) of subdivision (b) of Section 92675, and all other disciplines. For purposes of this report, research for which a student earns credit toward his or her degree program shall be identified as undergraduate education or graduate education.
(c) The costs reported in the reports required by this section shall be prior year actual expenditures, and shall also be reported by fund source, including all of the following:
(1) State General Fund.
(2) Systemwide tuition and fees.
(3) Nonresident tuition and fees and other student fees.
(4) University of California General Funds, including interest on General Fund balances and the portion of indirect cost recovery and patent royalty income used for core educational purposes.
(d) For any report submitted under this section before January 1, 2017, the costs shall, at a minimum, be reported on a systemwide basis. For any report submitted under this section on or after January 1, 2017, the costs shall be reported on both a systemwide and campus-by-campus basis.
(e) A report prepared under this section on or after January 1, 2017, shall include information on costs, disaggregated by campus, based on the methodology developed by the National Association of College and University Business Officers in its February 2002 report, Explaining College Costs, and other methodologies determined by the university.
(f) (1) In order to ensure that accurate and unfiltered information is provided to the Legislature for purposes of making informed funding decisions, whenever a request for information relating to the security of funds of the University of California is made by the California State Auditor’s Office pursuant to this subdivision to one or more campuses of the University of California, those campuses shall not coordinate their response with, or seek counsel, advice, or similar contact regarding their response from, the Office of the President of the University of California before submitting the requested information to the California State Auditor’s Office.
(2) The California State Auditor’s Office, when requesting information under this subdivision, shall include a statement in the request that it is requesting the information pursuant to this subdivision and that the request for information is not to be shared with the Office of the President of the University of California.

(f)

(g) A report to be submitted to the Legislature pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

(g)

(h) Pursuant to Section 10231.5 of the Government Code, the requirement for submitting a report under this section shall be inoperative on January 1, 2023, pursuant to Section 10231.5 of the Government Code.