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AB-2395 California State University: extension programs, special session, and self-supporting instructional programs: revenues.(2023-2024)



Current Version: 09/28/24 - Chaptered

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AB2395:v96#DOCUMENT

Assembly Bill No. 2395
CHAPTER 828

An act to amend Sections 89704 and 89721 of the Education Code, relating to the California State University, and making an appropriation therefor.

[ Approved by Governor  September 28, 2024. Filed with Secretary of State  September 28, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2395, Quirk-Silva. California State University: extension programs, special session, and self-supporting instructional programs: revenues.
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 the state. Existing law authorizes the Trustees of the California State University to transmit any revenues, including fees and charges required by the trustees, received by the trustees from extension programs, special session, and other self-supporting instructional programs to the Treasurer and if transmitted, requires the revenues to be deposited in the State University Continuing Education Revenue Fund, a continuously appropriated fund. Existing law appropriates all revenues from that fund to the trustees for the support and development of self-supporting instructional programs of the California State University.
The bill would instead appropriate all revenues from the State University Continuing Education Revenue Fund to the trustees for the support and development of instructional programs of the California State University. By expanding the scope of an existing appropriation, the bill would make an appropriation.
Existing law requires the chief fiscal officer of each campus of the California State University to deposit and maintain in specified trust accounts, or in the continuously appropriated California State University Trust Fund, specified moneys received in connection with certain sources or purposes, including fees for extension programs, special sessions, and other self-supporting instructional programs.
This bill would authorize the trustees to transmit the revenues received by the trustees from extension programs, special session, or self-supporting instructional programs to the chief fiscal officer of a university campus, and would require those transmitted moneys to be deposited in specified trust accounts or in the continuously appropriated California State University Trust Fund. By adding a potential source of revenue to a continuously appropriated fund, the bill would make an appropriation.
The bill would require, on or before March 31 of each year, the California State University to submit a report to the Department of Finance and the appropriate fiscal and policy committees of the Legislature on the revenue generated from extension programs, special session, or self-supporting instructional programs, as specified.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 89704 of the Education Code is amended to read:

89704.
 (a) Notwithstanding any other law, revenues received by the Trustees of the California State University from extension programs, special session, or self-supporting instructional programs, including, but not limited to, fees and charges required by the trustees, may be transmitted to either of the following:
(1) The Treasurer and, if transmitted, shall be deposited by that officer in the State Treasury to the credit of the State University Continuing Education Revenue Fund, which is hereby created, and which is hereby designated as successor to the State College Extension Program Revenue Fund.
(2) The chief fiscal officer of one or more campuses of the California State University, and, if transmitted, shall be deposited by the chief fiscal officer in accordance with Section 89721.
(b) All revenues in the State University Continuing Education Revenue Fund are hereby appropriated, without regard to fiscal years, to the trustees for the support and development of instructional programs of the California State University. However, proposed expenditures or obligations to be incurred during any fiscal year from the State University Continuing Education Revenue Fund, other than expenditures or obligations authorized by subdivision (d), shall be contained in the budget submitted for that fiscal year by the Governor pursuant to Section 12 of Article IV of the Constitution, and shall be subject to Article 2 (commencing with Section 13320) of Chapter 3 of Part 3 of Division 3 of Title 2 of the Government Code.
(c) Moneys in the State University Continuing Education Revenue Fund may be invested by the Treasurer, upon approval of the trustees, in those eligible securities listed in Section 16430 of the Government Code. All interest or other earnings received pursuant to the investments shall be deposited to the credit of the State University Continuing Education Revenue Fund.
(d) All revenues received by the trustees under this section may be pledged for the acquisition, construction, and improvement of facilities for extension programs, special session, and other self-supporting instructional programs pursuant to the State University Revenue Bond Act of 1947 (Article 2 (commencing with Section 90010) of Chapter 8), and may also be pledged to supplement other revenue funded projects relating to debt obligations issued by the trustees pursuant to the State University Revenue Bond Act of 1947.
(e) On or before March 31 of each year, the California State University shall submit a report on the implementation of this section to the Department of Finance and, in compliance with Section 9795 of the Government Code, the appropriate fiscal and policy committees of the Legislature. The report shall include, but is not limited to, all of the following:
(1) The total amount of revenue generated from extension programs, special session, or self-supporting instructional programs in the prior three fiscal years, by campus.
(2) Of the amounts identified in paragraph (1), the amount transmitted to the Treasurer pursuant to paragraph (1) of subdivision (a) and the amount transmitted to the chief fiscal officer of each campus pursuant to paragraph (2) of subdivision (a).
(3) The total amount of expenditures from revenue generated from extension programs, special session, or self-supporting instructional programs in the prior three fiscal years and the purposes for which those funds were expended.

SEC. 2.

 Section 89721 of the Education Code is amended to read:

89721.
 Notwithstanding any other law, the chief fiscal officer of each campus of the California State University shall deposit into and maintain in local trust accounts or in trust accounts in accordance with Sections 16305 to 16305.7, inclusive, of the Government Code, or in the California State University Trust Fund, moneys received in connection with the following sources or purposes:
(a) Gifts, bequests, devises, and donations received under Section 89720.
(b) Any student loan or scholarship fund program, including, but not limited to, student loan programs of the state, federal government, including programs referred to in Section 89723, local government, or private sources.
(c) Advance payment for anticipated expenditures or encumbrances in connection with federal grants or contracts.
(d) Room, board, and similar expenses of students enrolled in the international program of the California State University.
(e) Cafeteria replacement funds.
(f) Miscellaneous receipts in the nature of deposits subject to return upon approval of a proper application.
(g) Fees and charges for services, materials, and facilities authorized by Section 89700 if these fees or charges are required of those persons who, at their option, use the services or facilities, or are provided the materials, for which the fees or charges are made. Fees and charges so received and deposited shall be used solely to meet the costs of providing these services, materials, and facilities.
(h) Fees for instructionally related activities as defined by the trustees and as authorized by Section 89700 and revenues derived from the conduct of the instructionally related activities. The trustees shall have all authority necessary to administer and use the fees and revenues received and deposited to support such instructionally related activities.
(i) Fees for parking, health facilities or health services, and for extension programs, special sessions, or self-supporting instructional programs.
(j) Revenue received by the trustees from the California State Lottery Education Fund pursuant to Section 8880.5 of the Government Code.
(k) Moneys received by the trustees for research, workshops, conferences, institutes, and special projects.
(l) Moneys collected as higher education fees and income from students of any campus of the California State University and from other persons pursuant to Section 89700. The Controller shall have the authority to audit the expenditure of these funds.