(1)Existing provisions of the California Constitution require the Legislature to encourage, by all suitable means, the promotion of intellectual, scientific, moral, and agricultural improvement. The California Constitution also requires the Legislature to provide for a system of common schools by which a free school is kept up and supported in each district at least 6 months in every year. The California Constitution also prohibits public money from being appropriated for the support of any sectarian or denominational school or for any school not under the exclusive control of the officers of the public schools.

This measure, notwithstanding the constitutional provisions referenced above or any other provision of the California Constitution, would authorize the state, and every agency or political subdivision of the state, to disburse funds pursuant to an agreement between the state and a parent or legal guardian of an eligible child for tuition and education related expenses, as provided by statute, and to provide tax or other public benefits to educational institutions, irrespective of religious affiliation, to further the promotion of intellectual, scientific, moral, and agricultural improvement.

(2)Existing provisions of the California Constitution establish the University of California as a public trust under the administration of the Regents of the University of California. The California Constitution grants to the regents all the powers necessary or convenient for the effective administration of this public trust. These provisions limit the extent of legislative control over the university to the control that is necessary to ensure the security of its funds and compliance with the terms of the endowments of the university and competitive bidding procedures as may be made applicable to the university by statute for the letting of construction contracts, sales of real property, and purchasing of materials, goods, and services.

This measure would provide that the University of California is also subject to legislative control as may be necessary to provide for priority in admissions for California residents.

Resolved by the Senate, the Assembly concurring, That the Legislature of the State of California at its 201718 Regular Session commencing on the fifth day of December 2016, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

Notwithstanding any other provision of this Constitution, including Section 8 of this article and Section 5 of Article XVI, the State, and every agency or political subdivision of the State, may disburse funds pursuant to an agreement between the State and a parent or legal guardian of an eligible child for tuition and education related expenses, as provided by statute, and to provide tax or other public benefits to educational institutions, irrespective of religious affiliation, to further the purposes of Section 1 of this article.

(a)The University of California shall constitute a public trust, to be administered by the existing corporation known as The Regents of the University of California, with full powers of organization and government, subject only to such legislative control as may be necessary to insure provide for priority in admissions for California residents, to ensure the security of its funds and compliance with the terms of the endowments of the university and such competitive bidding procedures as may be made applicable to the university by statute for the letting of construction contracts, sales of real property, and purchasing of materials, goods, and services. Said The corporation shall be in form a board composed of seven voting ex officio members, which who shall be: the Governor, the Lieutenant Governor, the Speaker of the Assembly, the Superintendent of Public Instruction, the president and the vice president of the alumni association of the university and the acting president of the university, and 18 appointive members appointed by the Governor and approved by the Senate, a majority of the membership concurring; provided, however that the present appointive members shall hold office until the expiration of their present terms.

(b)(1)The terms of the members appointed prior to November 5, 1974, shall be 16 years; the terms of two appointive members to expire as heretofore on March 1st of every even-numbered calendar year, and two members shall be appointed for terms commencing on March 1, 1976, and on March 1 of each year thereafter; provided that no such appointments shall be made for terms to commence on March 1, 1979, or on March 1 of each fourth year thereafter, to the end that no appointment to the regents for a newly commencing term shall be made during the first year of any gubernatorial term of office. The terms of the members appointed for terms commencing on and after March 1, 1976, shall be 12 years. During the period of transition until the time when the appointive membership is comprised exclusively of persons serving for terms of 12 years, the total number of appointive members may exceed the numbers specified in the preceeding paragraph.

(2)In case of any vacancy, the term of office of the appointee to fill such that vacancy, who shall be appointed by the Governor and approved by the Senate, a majority of the membership concurring, shall be for the balance of the term for which such that vacancy exists.

(c)The members of the board may, in their discretion, following procedures established by them and after consultation with representatives of faculty and students of the university, including appropriate officers of the academic senate and student governments, appoint to the board either or both of the following persons as members with all rights of participation: a member of the faculty at a campus of the university or of another institution of higher education; a person enrolled as a student at a campus of the university for each regular academic term during his or her service as a member of the board. Any person so appointed shall serve for not less than one year commencing on July 1.

(d)Regents shall be able persons broadly reflective of the economic, cultural, and social diversity of the State, including ethnic minorities and women. However, it is not intended that formulas or specific ratios be applied in the selection of regents.

(e)In the selection of the Regents, regents, the Governor shall consult an advisory committee composed as follows: The the Speaker of the Assembly and two public members appointed by the Speaker, the President Pro pro Tempore of the Senate and two public members appointed by the Rules Senate Committee of the Senate, on Rules, two public members appointed by the Governor, the chairman chairperson of the regents of the university, an alumnus or alumna of the university chosen by the alumni association of the university, a student of the university chosen by the Council of Student Body Presidents, and a member of the faculty of the university chosen by the academic senate of the university. Public members shall serve for four years, except that one each of the initially appointed members selected by the Speaker of the Assembly, the President Pro pro Tempore of the Senate, and the Governor shall be appointed to serve for two years; student, alumni, and faculty members shall serve for one year and may not be regents of the university at the time of their service on the advisory committee.

(f)The Regents of the University of California shall be vested with the legal title and the management and disposition of the property of the university and of property held for its benefit and benefit. The regents shall have the power to take and hold, either by purchase or by donation, or gift, testamentary or otherwise, or in any other manner, without restriction, all real and personal property for the benefit of the university or incidentally to its conduct; provided, however, that conduct. However, sales of university real property shall be subject to such competitive bidding procedures as may be provided by statute. Said The corporation shall also have all the powers necessary or convenient for the effective administration of its trust, including the power to sue and to be sued, to use a seal, and to delegate to its committees or to the faculty of the university, or to others, such authority or functions as it may deem wise. The Regents regents shall receive all funds derived from the sale of lands pursuant to the act of Congress of July 2, 1862, and any subsequent acts amendatory thereof. The university shall be entirely independent of all political or sectarian influence and kept free therefrom in the appointment of its regents and in the administration of its affairs, and no person shall be debarred admission to any department of the university on account of race, religion, ethnic heritage, or sex.

(g)Meetings of the Regents of the University of California shall be public, with exceptions and notice requirements as may be provided by statute.

SENATE COMMITTEE ON EDUCATION

Senator Benjamin Allen, Chair

2017 - 2018 Regular

Bill No: Hearing Date: April 4, 2018

Subject:

NOTE: This measure has been referred to the Committees on Education and Elections. A "do pass" motion should include referral to the Committee on Elections.

SUMMARY

This measure proposes to amend Article IX of the State Constitution to: (1) allow the state to disburse funds and other public benefits to educational institutions irrespective of their religious affiliation, and (2) add admissions priority for California residents to the controls afforded to the Legislature over the University of California (UC).

BACKGROUND

Section 8 of Article IX and Section 5 of Article XVI of the California Constitution both bar state support for religious schools. Put simply, these sections state that no public money shall ever be appropriated for the support of any sectarian or denominational school, or any school not under the exclusive control of officers of the public schools.

Section 9 of Article IX of the California Constitution delegates to the Regents of the UC “full powers of organization and government”. This autonomy is subject to specified areas of legislative control—those necessary to insure the security of its funds and compliance with the terms of the endowments of the university and certain competitive bidding procedures.

ANALYSIS

This measure proposes to amend Article IX of the State Constitution in the following ways:

1. Notwithstanding Section 8 of Article IX and Section 5 of Article XVI, allow the State, and every agency or political subdivision of the State, to disburse funds pursuant to an agreement between the State and a parent or legal guardian of an eligible child for tuition and education related expenses, as provided by statute, and to provide tax or other public benefits to educational institutions, irrespective of religious affiliation, to further the purposes of Section 1 of Article IX of the State Constitution.
2. Add providing admissions priority for California residents to the controls afforded to the Legislature over the UC.

STAFF COMMENTS

1. Need for the bill. According to the author, “College graduation rates are significant indicators about future earning power—putting Black and Latino students at a huge long-term disadvantage in earning power and upward economic mobility.

As such, Black and Latino students face higher debt burdens to attend and graduate from college. Of those college students who borrowed money, 76% and 57% of Black and Latino students took on debt while only 45% and 47% of Asian and White students did so.

SCA 16 and SB 1344 seek to address these inequalities by helping parents save for college and guarantee qualified student’s admission to the University of California and California State University. By giving priority to California students, qualified students would be given preference over out-of-state and foreign students.”

1. Companion legislation would create state voucher program and place restrictions on nonresident enrollment in public higher education. This constitutional amendment is a companion measure to SB 1344 (Moorlach), which would establishes the Education Savings Account Act of 2020 and restrict the University of California (UC) and California State University from admitting nonresident students, as specified. SB 1344 would only become operative if this measure is approved as part of the November 2018 election. Under SB 1344, the state would use all of the funding currently apportioned to K-14 local educational agencies as required by the Proposition 98 Guarantee and award vouchers to parents who could then use the funding to cover tuition and other services at an eligible public or private school. The policy changes and state and local mechanisms required to implement this measure and SB 1344 are very complex and would profoundly change how public (and private) education is currently funded. Given that no one knows how many parents and schools would apply for vouchers or move their children from public to private schools, it is difficult to assess the impact of this measure and SB 1344 with any meaningful precision.
2. State funding for religious schools. In California, roughly 7.5 percent of students, totaling about 500,000, attend private schools. Of those students, many attend a private school that is affiliated with a church or religion. In most states, private school tuition is paid by parents, without significant government support or subsidy. Private schools tend to be costly, not generally tax-deductible, and heavily reliant on donations to support their capital needs. Some private school students may receive certain services from a public school, including services for a student with a disability or check-ins for a student that is home-schooled. The line between private and public schooling becomes more blurred when considering school voucher programs, which SB 1344 would establish. In these programs, parents receive state-funded vouchers for use toward payment of tuition costs at a private school. Because many private schools have a religious affiliation, considerations about the separation of church and state arise. Like most states, California’s constitution prohibits the use of public money for religious schools.
3. University of California autonomy. The University of California (UC) became a “public trust” in 1879 as part of a larger revision of California’s Constitution. The new constitution gave the UC Board of Regents and its academic leaders and faculty an unusual level of autonomy from lawmakers. Previously, the UC was established in statute with a lone campus in Berkeley. After 1879, the Regents gained the exclusive power to operate, control, and administer the university, becoming a fourth branch of state government. This autonomy, however, does not give the UC the ability to operate without any regard for state lawmakers. The university generally must comply with state fiduciary laws that apply to all state agencies. Further, UC is substantially dependent on state funding, upon which the state often places certain requirements, restrictions, or incentives.
4. Admissions criteria at the higher education segments. The UC and the California State University (CSU) are responsible for setting specific admission criteria intended to reflect their respective eligibility pools. As a minimum criterion, both systems require resident high school students to complete a series of college preparatory courses known as the “A–G” series. While out-of-state and international students (nonresidents) are recognized as enhancing the college experience by bringing a diversity of backgrounds and perspectives to campuses, the state does not provide funding for nonresident students.  Current law allows each segment to set nonresident enrollment levels and fees, requiring that nonresident fees, at minimum, cover marginal costs.
5. Concerns from the higher education segments. According to the University of California, “These companion measures would effectively prohibit UC from admitting nonresident students, thereby reducing cultural and geographic diversity on UC campuses and compromising the educational resources available to California students. In addition to eliminating a critical funding source for UC, the proposed legislation would undermine the governance structure of the University, potentially eroding the role of faculty and students in developing policy and upholding the academic mission of the University of California.”

The CSU has expressed concern with this measure’s companion legislation, SB 1344 (Moorlach). Regarding SB 1344, CSU states that it “…continues to prioritize admission for California residents, as evidenced by the fact that 95.5 percent of our undergraduate students come from California. In addition, the Board has adopted policies to ensure that in instances of impaction—where campus programs or entire campuses receive more fully qualified applicants than they have the capacity to serve—admission advantages be given to applicants from the local service area of the campus. Additionally, the Board recently adopted a formal redirection policy to ensure that eligible applicants denied admission to their choice campuses are provided the opportunity to attend a CSU campus that has space available.”

1. Related Legislation

SB 1344 (Moorlach) would establish the Education Savings Account Act of 2020 and restrict the University of California and California State University from admitting nonresident students, as specified, only if this Senate Constitutional Amendment is approved as part of the November 2018 election.

SUPPORT

Choice 2020

Letters from various individuals

OPPOSITION

California School Boards Association

California State PTA

University of California

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