SB 960

Bill Text  - SB-960 Public postsecondary education: community colleges: statewide baccalaureate degree program.
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                      |  Add To My Favorites   |  Track Bill   |   Version:  	 08/27/26 - Amended Assembly
	 06/25/26 - Amended Assembly
	 04/22/26 - Amended Senate
	 02/03/26 - Introduced
                     SB-960 Public postsecondary education: community colleges: statewide baccalaureate degree program. (2025-2026)
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               Date Published: 08/27/2026 07:37 PM
SB960:v96#DOCUMENT
       Bill Start
                Amended
               IN 
                Assembly
                 August 27, 2026
                Amended
               IN 
                Assembly
                 June 25, 2026
                Amended
               IN 
                Senate
                 April 22, 2026
                    CALIFORNIA LEGISLATURE—
                    2025–2026 REGULAR SESSION
                Senate Bill
                    No. 960  Introduced by Senator Cabaldon       February 03, 2026  An act to   amend     amend, repeal, and add   Sections 78040 and 78042 of the Education Code, relating to public postsecondary education.      LEGISLATIVE COUNSEL'S DIGEST     SB 960, as amended, Cabaldon.
                          Public postsecondary education: community colleges: statewide baccalaureate degree program.     Existing law authorizes the Board of Governors of the California Community Colleges, in consultation with the California State University and the University of California, to authorize the establishment of community college district baccalaureate degree programs, as provided.   Existing law requires a community college district to identify and document unmet workforce needs in the subject area of the baccalaureate degree to be offered and offer a baccalaureate degree at a campus in a subject area with unmet workforce needs in the local community or region of the district.   Existing law prohibits a community college district baccalaureate degree program from offering a baccalaureate degree program or program curricula already offered by the California State University or the
			 University of California.     This  Beginning January 1, 2028, this bill would specify that a community college district identify and document unmet current or projected future workforce needs and offer a baccalaureate degree at a campus in a subject area with unmet current or projected workforce needs. The   bill would instead prohibit a community college district from offering a baccalaureate degree program or program curricula already offered by the University of California, or a campus of the California State University whose local service area includes, or overlaps with, the territory of the community college   district. Beginning July 1,
			 2030, the bill would authorize a district to offer a baccalaureate degree program or program curricula offered by a campus of the California State University whose local service area includes, or overlaps with, the territory of the district if the California State University program has been impacted for 3 consecutive years before the date the program is approved,     district, except   as provided.   The bill would require a district’s eligibility to offer a baccalaureate degree program to be determined based on a tiered framework using the district’s rate of students who earned an award or transferred, as specified. Before submitting an application for a baccalaureate degree program, the bill would encourage a community college district to obtain a determination of unmet current or projected future workforce need for a
			 specific baccalaureate degree program from the Secretary of Labor and Workforce Development, as provided.       Existing law requires, as part of the application and review process, the Chancellor of the California Community Colleges to ensure, among other things, that the total number of baccalaureate degree programs offered by a community college district does not exceed 25% of the total number of associate degree programs offered by the community college district, as specified.      This bill would reduce that limitation from 25% to 15%. The bill would require the chancellor to annually report to the Legislature, on or before March 1, on the status of all
			 baccalaureate degree programs approved under these provisions, as specified.  This bill would incorporate additional changes to Section 78042 of the Education Code proposed by AB 2694 to be operative only if this bill and AB 2694 are enacted and this bill is enacted last.  This bill would make the operation of its provisions contingent upon the enactment of AB 2694 of the 2025–26 Regular Session.       Digest Key
      Vote:
       MAJORITY   
      Appropriation:
       NO   
      Fiscal Committee:
       YES   
      Local Program:
       NO        Bill Text     The people of the State of California do enact as follows:        SECTION 1.      Section 78040 of the Education Code is amended to read:  78040.    (a)   For purposes of this article, “district” means any community college district identified by the Chancellor of the California Community Colleges as participating in the statewide baccalaureate degree program.    (b) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.  SEC. 2.      Section 78040 is added to the Education Code, to read:  78040.  (a) For purposes of this article, the following definitions apply:  (1) “District” means any community college district identified by the Chancellor of the California Community Colleges as participating in the statewide baccalaureate degree program.  (2) “Local service area” means the same as defined in subdivision (c) of Section 89030.5.  (3) “Same academic discipline” means a field of study that prepares students for substantially the same academic pathway or profession, as evidenced by common lower division preparation, upper division coursework, student learning outcomes, accreditation standards, licensure or
						certification requirements, or other recognized academic or professional standards. Similarity in degree title alone shall not establish that two programs are within the same academic discipline.  (4) “Substantially similar” means that the proposed baccalaureate degree program’s curriculum, learning outcomes, or program objectives are materially overlapping with those of an existing California State University or University of California baccalaureate degree program offered within the geographic region of the community college district such that the programs serve indistinguishable academic and workforce purposes.  (5) “Unmet current or projected future workforce need” means a demonstrated gap, within the region of the district, between employer demand for workers in occupations that typically require a baccalaureate degree and the supply of qualified candidates available to meet
						that demand.  (b) This section shall become operative on January 1, 2028.  SEC. 3.      Section 78042 of the Education Code is amended to read:  78042.  (a) A district shall seek approval to offer baccalaureate degree programs through the appropriate accreditation body.  (b) When seeking approval from the Board of Governors of the California Community Colleges, a district shall maintain the primary mission of the California Community Colleges specified in paragraph (3) of subdivision (a) of Section 66010.4. The district, as part of the baccalaureate degree program, shall have the additional mission to provide high-quality undergraduate education at an affordable price for students and the state.  (c) As a condition of eligibility for consideration to participate in the statewide baccalaureate degree program, a district shall have a written policy
						that requires all potential students who wish to apply for a Board of Governors Fee Waiver pursuant to Section 76300 to complete and submit either a Free Application for Federal Student Aid or a California Dream Act application in lieu of completing the Board of Governors Fee Waiver application.  (d) A district’s baccalaureate degree program shall be subject to the following limitations:  (1) A district shall identify and document unmet workforce needs in the subject area of the baccalaureate degree to be offered and offer a baccalaureate degree at a campus in a subject area with unmet workforce needs in the local community or region of the district.  (2) A baccalaureate degree program shall not offer a baccalaureate degree program or program curricula already offered by the California State University or the University
						of California.  (3) A district shall have the expertise, resources, and student interest to offer a quality baccalaureate degree in the chosen field of study.  (e) A district shall maintain separate records for students who are enrolled in courses classified in the upper division and lower division of a baccalaureate degree program. A student shall be reported as a community college student for enrollment in a lower division course and as a baccalaureate degree program student for enrollment in an upper division course.  (f) A governing board of a district seeking authorization to offer a baccalaureate degree program shall submit all of the following for review by the Chancellor of the California Community Colleges and approval by the Board of Governors of the California Community Colleges:  (1) Documentation of the district’s written policy required by subdivision (c).  (2) The administrative plan for the baccalaureate degree program, including, but not limited to, the governing board of the district’s funding plan for its specific district.  (3) A description of the baccalaureate degree program’s curriculum, faculty, and facilities.  (4) The enrollment projections for the baccalaureate degree program.  (5) Documentation regarding unmet workforce needs specifically related to the proposed baccalaureate degree program, and a written statement supporting the necessity of a four-year degree for that program. The documentation regarding unmet workforce needs shall include all of the
						following:  (A) Evidence that the district consulted with regional employers and regional workforce development boards.  (B) Statewide and regional workforce data relevant to the proposed baccalaureate degree program.  (C) Evidence that the baccalaureate degree to be offered will help address unmet workforce needs. The evidence may include, but is not limited to, information showing the following:  (i) Employers are having difficulty filling positions that require a baccalaureate degree.  (ii) Employers are willing to pay baccalaureate degree holders more than those with a related associate degree or no postsecondary degree.  (iii) Employers have a preference for candidates with the proposed baccalaureate degree.  (6) Documentation of consultation with the California State University and the University of California regarding collaborative approaches to meeting regional workforce needs.  (g) (1) The Board of Governors of the California Community Colleges shall develop, and adopt by regulation, a funding model for the support of the statewide baccalaureate degree program that is based on a calculation of the number of full-time equivalent students enrolled in all district baccalaureate degree programs.  (2) Funding for each full-time equivalent student shall be at a marginal cost calculation, as determined by the Board of Governors of the California Community Colleges, that shall not exceed the community
						college credit instruction marginal cost calculation for a full-time equivalent student, as determined pursuant to paragraph (2) of subdivision (d) of Section 84750.5.  (3) A student in a baccalaureate degree program authorized by this article shall not be charged fees higher than the mandatory systemwide fees charged for baccalaureate degree programs at the California State University.  (4) Fees for coursework in a baccalaureate degree program shall be consistent with Article 1 (commencing with Section 76300) of Chapter 2 of Part 47.  (5) A district shall, in addition to the fees charged pursuant to paragraph (4), charge a fee for upper division coursework in a baccalaureate degree program of eighty-four dollars ($84) per unit.  (h) The Chancellor of the
						California Community Colleges shall ensure all of the following for the application and review process for community college districts to participate in the baccalaureate degree program:  (1) A community college district is provided with two timelines in which to apply for a baccalaureate degree program per year. A community college district may submit an application to the Chancellor of the California Community Colleges by no later than January 15 and shall receive notice of approval or rejection on or before May 31. A community college district may submit an application to the Chancellor of the California Community Colleges by no later than August 15 and shall receive notice of approval or rejection on or before December 31.  (2) Only 15 baccalaureate degree programs are approved during each application period, allowing for a total of 30 approved baccalaureate degree programs per
						academic year.  (3) The total number of baccalaureate degree programs offered by a community college district, at any time, does not exceed 25 percent of the total number of associate degree programs offered by the community college district, including associate degrees for transfer.  (4) The review process takes no less than 30 days from the receipt of a completed application to validate the information submitted and assess the workforce value of the proposed program by the Chancellor of the California Community Colleges.  (i) (1) The Chancellor of the California Community Colleges shall consult with and seek feedback from the Chancellor of the California State University, the President of the University of California, and the President of the Association of Independent California Colleges and
						Universities about proposed baccalaureate degree programs.  (2) The Chancellor of the California Community Colleges shall notify and send relevant materials to the California State University, the University of California, and the President of the Association of Independent California Colleges and Universities who may notify institutions with physical campuses in the service area of the community college district seeking the proposed baccalaureate degree program.  (3) The California State University and the University of California may assess whether proposed baccalaureate degree programs are duplicative of existing baccalaureate programs offered by state universities, and may submit written comments to the Chancellor of the California Community Colleges regarding proposed baccalaureate degree programs. If the California State University or the University of California believes
						there is program duplication, written objections with supporting evidence shall be submitted to the Chancellor of the California Community Colleges within 30 working days of receipt of the proposal. Upon receipt of written objections, the Chancellor of the California Community Colleges shall have 30 working days to convene with the applicant and the segment or segments that raised an objection to collaborate and establish a written agreement before the program is approved.  (4) A formal objection filed by either the California State University or the University of California pursuant to paragraph (3) shall address, at a minimum, each of the following issues in order to facilitate the consultation process:  (A) The name and description of the baccalaureate degree program currently offered by the objecting segment that may be duplicated by the proposed baccalaureate degree program,
						including the campuses that offer the program.  (B) The specific components of the proposed baccalaureate degree program deemed as duplicative.  (5)  The written agreement established between the objecting segment and the Chancellor of the California Community Colleges shall address, at a minimum, whether each of the elements of the original objection addressed in paragraph (4) have been resolved.  (j) (1) A community college district shall continue to offer an associate degree program in the same academic subject for which a baccalaureate degree program has been approved, unless that community college district has received approval from the Chancellor of the California Community Colleges to eliminate the associate degree program.  (2) When conducting a review to approve the elimination of an associate degree program, the Chancellor of the California Community Colleges shall evaluate both of the following:  (A) Changes to the labor market viability of the associate degree.  (B) Changes to the minimum education required to maintain program accreditation.    (k) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.  SEC. 4.      Section 78042 is added to the Education Code, to read:  78042.  (a) A district shall seek approval to offer baccalaureate degree programs through the appropriate accreditation body.  (b) When seeking approval from the Board of Governors of the California Community Colleges, a district shall maintain the primary mission of the California Community Colleges specified in paragraph (3) of subdivision (a) of Section 66010.4. Consistent with the requirements of this section, the California Community Colleges shall have the additional authorized mission, secondary to its primary mission, to offer upper division instruction to meet unmet regional workforce needs pursuant to this article.  (c) As a condition of eligibility for consideration to
						participate in the statewide baccalaureate degree program, a district shall have a written policy that requires all potential students who wish to apply for a Board of Governors Fee Waiver pursuant to Section 76300 to complete and submit either a Free Application for Federal Student Aid or a California Dream Act application in lieu of completing the Board of Governors Fee Waiver application.  (d) A district’s baccalaureate degree program shall be subject to the following limitations:  (1) A district shall identify and document unmet current or projected future workforce needs in the subject area of the baccalaureate degree to be offered and offer a baccalaureate degree at a campus in a subject area with unmet current or projected future workforce needs in the region of the district.  (2) (A) A
						district shall not offer a baccalaureate degree program or program curricula already offered by the University of California unless a written agreement has been established pursuant to paragraph (5) of subdivision (j).  (B) A district shall not offer a baccalaureate degree program or program curricula already offered by a campus of the California State University whose local service area includes, or overlaps with, the territory of the district, except as provided in subparagraph (C).  (C) Notwithstanding subparagraph (B), a district may offer a substantially similar program offered by a campus of the California State University whose local service area includes, or overlaps with, the territory of the district if the California State University campus program has a transfer acceptance rate of less than 75 percent for three consecutive years before the program is approved for
						applicants from the respective community college district who have met the program eligibility requirements for the academic program sought by the district. The Chancellor of the California State University shall make this data available on their public internet website on or before January 1, 2028, and annually on or before December 1 thereafter.  (3) (A) A district’s eligibility to offer baccalaureate degree programs shall be determined based on a tiered framework using the district’s rate of students who earned an award or transferred within three years of entering the cohort, as reported by the Chancellor of the California Community Colleges. A district shall be required to report data for each of the three applicable cohort years to be assigned an eligibility tier. The Chancellor of the California Community Colleges shall make this data available on their public internet website on or before January 1, 2028, and
						annually on or before December 1 thereafter. For purposes of this paragraph, “earned an award or transferred” means a student who earned a certificate, an associate degree, an associate degree for transfer, or a baccalaureate degree, or who transferred to a four-year institution. A district’s tier shall be determined as of the most recently available data as provided on the Chancellor of the California Community College’s internet website from when the district submits its application for the proposed baccalaureate degree program.  (B) For purposes of this paragraph, “standard deviation” means the population standard deviation of the district rates, calculated pursuant to subparagraph (A), across all districts for the applicable cohort years, and “mean rate” means the average of those district rates. The Chancellor of the California Community Colleges shall calculate and publish the mean rate and standard deviation for each applicable cohort
						period.  (C) A district whose rate, calculated pursuant to subparagraph (A), is more than one standard deviation above the mean rate shall qualify as a Tier 1 district. A Tier 1 district may offer up to 10 baccalaureate degree programs, except that a Tier 1 district with more than one campus may offer up to 11 baccalaureate degree programs and a Tier 1 district with 75,000 or more full-time equivalent students may offer up to 12 baccalaureate degree programs.  (D) A district whose rate, calculated pursuant to subparagraph (A), is above the mean rate and within one standard deviation above the mean rate shall qualify as a Tier 2 district. A Tier 2 district may offer up to 8 baccalaureate degree programs, except that a Tier 2 district with more than one campus may offer up to 9 baccalaureate degree programs and a Tier 2 district with 75,000 or more full-time equivalent students may
						offer up to 10 baccalaureate degree programs.  (E) A district whose rate, calculated pursuant to subparagraph (A), is at or below the mean rate and within one standard deviation below the mean rate shall qualify as a Tier 3 district. A Tier 3 district may offer up to six baccalaureate degree programs.  (F) A district whose rate, calculated pursuant to subparagraph (A), is more than one standard deviation below the mean rate, but less than two standard deviations below the mean rate, shall qualify as a Tier 4 district. A Tier 4 district may offer up to four baccalaureate degree programs.  (G) A district whose rate, calculated pursuant to subparagraph (A), is two or more standard deviations below the mean rate shall qualify as a Tier 5 district. A Tier 5 district may offer up to two baccalaureate degree programs.  (H) For baccalaureate degree programs approved on or after January 1, 2028, all of the following shall apply:  (i) A district shall not offer more than 10 baccalaureate degree programs at any one time, regardless of the district’s eligibility tier.  (ii) A district that falls to a lower tier may continue to operate any previously approved baccalaureate degree program but shall not receive approval for an additional program if doing so would exceed the maximum number of programs authorized for its current tier.  (iii) A baccalaureate degree program offered at more than one college within a district shall count as one program for purposes of the maximum number of baccalaureate degree programs authorized for the district’s tier.  (I) A baccalaureate degree program approved before January 1, 2028, shall not count toward the maximum number of programs authorized for the district’s tier or toward the limit of 10 baccalaureate degree programs.  (J) The Chancellor of the California Community Colleges may place a Tier 3, Tier 4, or Tier 5 district in the next highest tier if its annual rate of students who earned an award or transferred within three years of entering the cohort increased by two percentage points in each of the three most recent cohort years.  (4) A district shall not offer a baccalaureate degree program through a fully online instructional modality if the California State University or the University of California offers a substantially similar baccalaureate degree program through a fully online instructional modality.  (5) A district shall have the expertise, resources, and student interest to offer a quality baccalaureate degree in the chosen field of study.  (e) A district shall maintain separate records for students who are enrolled in courses classified in the upper division and lower division of a baccalaureate degree program. A student shall be reported as a community college student for enrollment in a lower division course and as a baccalaureate degree program student for enrollment in an upper division course.  (f) (1) Before submitting an application pursuant to subdivision (g), a district is encouraged to obtain a determination of unmet current or projected future workforce need for a specific baccalaureate degree program from the Secretary of Labor and Workforce Development.  (2) A district shall submit a request for determination to the Secretary of Labor and Workforce Development in a form specified by the secretary. The request shall include all of the following:  (A) A description of the proposed baccalaureate degree program and the occupations for which it prepares students.  (B) Regional workforce data relevant to the proposed baccalaureate degree program.  (C) Information or documentation that details existing and planned capacity of similar baccalaureate degree programs in the region of the community college district.  (D) Any other evidence a district desires to provide demonstrating an unmet current or projected future workforce need in the region of the
						district that the proposed baccalaureate degree program will help address.  (3) At the time a district submits a request for determination pursuant to paragraph (2), the district shall provide a copy of the request to the Chancellor of the California Community Colleges, the California State University, the University of California, and the Association of Independent California Colleges and Universities. Potentially impacted campuses may submit relevant information about the capacity of similar programs or the same academic discipline directly to the Secretary of Labor and Workforce Development.  (4) Within 90 days of receipt of a completed request for determination, the Secretary of Labor and Workforce Development shall make a determination if the proposed baccalaureate degree program addresses unmet current or future projected workforce need and the capacity of substantially
						similar academic programs is not sufficient to meet the regional workforce needs. In making the determination, the secretary may use all relevant data, including data and information from the Employment Development Department’s Labor Market Information Division.  (5) A determination issued pursuant to this subdivision shall be valid for four years from the date of issuance.  (g) This section shall become operative on January 1, 2028.  SEC. 4.5.      Section 78042 is added to the Education Code, to read:  78042.  (a) A district shall seek approval to offer baccalaureate degree programs through the appropriate accreditation body.  (b) When seeking approval from the Board of Governors of the California Community Colleges, a district shall maintain the primary mission of the California Community Colleges specified in paragraph (3) of subdivision (a) of Section 66010.4. Consistent with the requirements of this section, the California Community Colleges shall have the additional authorized mission, secondary to its primary mission, to offer upper division instruction to meet unmet regional workforce needs pursuant to this article.  (c) As a condition of eligibility for consideration to
						participate in the statewide baccalaureate degree program, a district shall have a written policy that requires all potential students who wish to apply for a Board of Governors Fee Waiver pursuant to Section 76300 to complete and submit either a Free Application for Federal Student Aid or a California Dream Act application in lieu of completing the Board of Governors Fee Waiver application.  (d) A district’s baccalaureate degree program shall be subject to the following limitations:  (1) A district shall identify and document unmet current or projected future workforce needs in the subject area of the baccalaureate degree to be offered and offer a baccalaureate degree at a campus in a subject area with unmet current or projected future workforce needs in the region of the district.  (2) (A) A
						district shall not offer a baccalaureate degree program or program curricula already offered by the University of California unless a written agreement has been established pursuant to paragraph (5) of subdivision (j).  (B) A district shall not offer a baccalaureate degree program or program curricula already offered by a campus of the California State University whose local service area includes, or overlaps with, the territory of the district, except as provided in subparagraph (C).  (C) Notwithstanding subparagraph (B), a district may offer a substantially similar program offered by a campus of the California State University whose local service area includes, or overlaps with, the territory of the district if the California State University campus program has a transfer acceptance rate of less than 75 percent for three consecutive years before the program is approved for
						applicants from the respective community college district who have met the program eligibility requirements for the academic program sought by the district. The Chancellor of the California State University shall make this data available on their public internet website on or before January 1, 2028, and annually on or before December 1 thereafter.  (3) (A) A district’s eligibility to offer baccalaureate degree programs shall be determined based on a tiered framework using the district’s rate of students who earned an award or transferred within three years of entering the cohort, as reported by the Chancellor of the California Community Colleges. A district shall be required to report data for each of the three applicable cohort years to be assigned an eligibility tier. The Chancellor of the California Community Colleges shall make this data available on their public internet website on or before January 1, 2028, and
						annually on or before December 1 thereafter. For purposes of this paragraph, “earned an award or transferred” means a student who earned a certificate, an associate degree, an associate degree for transfer, or a baccalaureate degree, or who transferred to a four-year institution. A district’s tier shall be determined as of the most recently available data as provided on the Chancellor of the California Community College’s internet website from when the district submits its application for the proposed baccalaureate degree program.  (B) For purposes of this paragraph, “standard deviation” means the population standard deviation of the district rates, calculated pursuant to subparagraph (A), across all districts for the applicable cohort years, and “mean rate” means the average of those district rates. The Chancellor of the California Community Colleges shall calculate and publish the mean rate and standard deviation for each applicable cohort
						period.  (C) A district whose rate, calculated pursuant to subparagraph (A), is more than one standard deviation above the mean rate shall qualify as a Tier 1 district. A Tier 1 district may offer up to 10 baccalaureate degree programs, except that a Tier 1 district with more than one campus may offer up to 11 baccalaureate degree programs and a Tier 1 district with 75,000 or more full-time equivalent students may offer up to 12 baccalaureate degree programs.  (D) A district whose rate, calculated pursuant to subparagraph (A), is above the mean rate and within one standard deviation above the mean rate shall qualify as a Tier 2 district. A Tier 2 district may offer up to 8 baccalaureate degree programs, except that a Tier 2 district with more than one campus may offer up to 9 baccalaureate degree programs and a Tier 2 district with 75,000 or more full-time equivalent students may
						offer up to 10 baccalaureate degree programs.  (E) A district whose rate, calculated pursuant to subparagraph (A), is at or below the mean rate and within one standard deviation below the mean rate shall qualify as a Tier 3 district. A Tier 3 district may offer up to six baccalaureate degree programs.  (F) A district whose rate, calculated pursuant to subparagraph (A), is more than one standard deviation below the mean rate, but less than two standard deviations below the mean rate, shall qualify as a Tier 4 district. A Tier 4 district may offer up to four baccalaureate degree programs.  (G) A district whose rate, calculated pursuant to subparagraph (A), is two or more standard deviations below the mean rate shall qualify as a Tier 5 district. A Tier 5 district may offer up to two baccalaureate degree programs.  (H) For baccalaureate degree programs approved on or after January 1, 2028, all of the following shall apply:  (i) A district shall not offer more than 10 baccalaureate degree programs at any one time, regardless of the district’s eligibility tier.  (ii) A district that falls to a lower tier may continue to operate any previously approved baccalaureate degree program but shall not receive approval for an additional program if doing so would exceed the maximum number of programs authorized for its current tier.  (iii) A baccalaureate degree program offered at more than one college within a district shall count as one program for purposes of the maximum number of baccalaureate degree programs authorized for the district’s tier.  (I) A baccalaureate degree program approved before January 1, 2028, shall not count toward the maximum number of programs authorized for the district’s tier or toward the limit of 10 baccalaureate degree programs.  (J) The Chancellor of the California Community Colleges may place a Tier 3, Tier 4, or Tier 5 district in the next highest tier if its annual rate of students who earned an award or transferred within three years of entering the cohort increased by two percentage points in each of the three most recent cohort years.  (4) A district shall not offer a baccalaureate degree program through a fully online instructional modality if the California State University or the University of California offers a substantially similar baccalaureate degree program through a fully online instructional modality.  (5) A district shall have the expertise, resources, and student interest to offer a quality baccalaureate degree in the chosen field of study.  (e) A district shall maintain separate records for students who are enrolled in courses classified in the upper division and lower division of a baccalaureate degree program. A student shall be reported as a community college student for enrollment in a lower division course and as a baccalaureate degree program student for enrollment in an upper division course.  (f) (1) Before submitting an application pursuant to subdivision (g), a district is encouraged to obtain a determination of unmet current or projected future workforce need for a specific baccalaureate degree program from the Secretary of Labor and Workforce Development.  (2) A district shall submit a request for determination to the Secretary of Labor and Workforce Development in a form specified by the secretary. The request shall include all of the following:  (A) A description of the proposed baccalaureate degree program and the occupations for which it prepares students.  (B) Regional workforce data relevant to the proposed baccalaureate degree program.  (C) Information or documentation that details existing and planned capacity of similar baccalaureate degree programs in the region of the community college district.  (D) Any other evidence a district desires to provide demonstrating an unmet current or projected future workforce need in the region of the
						district that the proposed baccalaureate degree program will help address.  (3) At the time a district submits a request for determination pursuant to paragraph (2), the district shall provide a copy of the request to the Chancellor of the California Community Colleges, the California State University, the University of California, and the Association of Independent California Colleges and Universities. Potentially impacted campuses may submit relevant information about the capacity of similar programs or the same academic discipline directly to the Secretary of Labor and Workforce Development.  (4) Within 90 days of receipt of a completed request for determination, the Secretary of Labor and Workforce Development shall make a determination if the proposed baccalaureate degree program addresses unmet current or future projected workforce need and the capacity of substantially
						similar academic programs is not sufficient to meet the regional workforce needs. In making the determination, the secretary may use all relevant data, including data and information from the Employment Development Department’s Labor Market Information Division.  (5) A determination issued pursuant to this subdivision shall be valid for four years from the date of issuance.  (6) If the Secretary of Labor and Workforce Development determines that the proposed baccalaureate degree program addresses an unmet current or projected future workforce need and the capacity of substantially similar academic programs is not sufficient to meet the regional workforce needs, the proposed baccalaureate degree program shall be exempt from the requirements applicable to a written objection filed by the California State University pursuant to subdivision (j). A determination issued pursuant to this
						subdivision does not exempt a proposed baccalaureate degree program from the requirements applicable to a written objection filed by the University of California pursuant to subdivision (j).  (g) The governing board of a district seeking authorization to offer a baccalaureate degree program shall submit all of the following for review by the Chancellor of the California Community Colleges and the Chancellor of the California State University, and approval by the Board of Governors of the California Community Colleges:  (1) Documentation of the district’s written policy required by subdivision (c).  (2) The administrative plan for the baccalaureate degree program, including, but not limited to, the governing board of the district’s funding plan for its specific district.  (3) A description of the baccalaureate degree program’s curriculum, faculty, and facilities.  (4) The enrollment projections for the baccalaureate degree program.  (5) If a determination is issued pursuant to subdivision (f), a copy of that determination. Obtaining a determination pursuant to subdivision (f) shall exempt an applicant from the requirements of paragraphs (6) and (7).  (6) Documentation regarding unmet workforce needs specifically related to the proposed baccalaureate degree program, and a written statement supporting the necessity of a four-year degree for that program. The documentation regarding unmet workforce needs shall include all of the following:  (A) Evidence that the
						district consulted with regional employers and regional workforce development boards.  (B) Evidence that the district consulted with the Labor and Workforce Development Agency to identify statewide and regional workforce data relevant to the proposed baccalaureate degree program.  (C) Evidence that the baccalaureate degree to be offered will help address unmet workforce needs identified by the Labor and Workforce Development Agency. The evidence may include, but is not limited to, information showing the following:  (i) Employers are having difficulty filling positions that require a baccalaureate degree.  (ii) Employers are willing to pay baccalaureate degree holders more than those with a related associate degree or no postsecondary degree.  (iii) Employers have a preference for candidates with the proposed baccalaureate degree.  (7) Documentation of consultation with the California State University and the University of California regarding collaborative approaches to meeting regional workforce needs, including an exploration of structured partnerships to avoid unnecessary duplication and to expand access to baccalaureate degrees. The structured partnerships may include, but not be limited to, any of the following:  (A) Guaranteed transfer agreements.  (B) 2+2 articulation agreements.  (C) Dual enrollment pathways with high school and public university partners such as 1+1+2 models.  (D) Credit for prior learning.  (E) Shared use of facilities to support colocation or cross-location delivery models.  (8) Documentation that the proposed baccalaureate degree program is not substantially similar or that the requirements of subparagraph (C) of paragraph (2) of subdivision (d) have been satisfied. The California State University may submit evidence demonstrating that the proposed program is substantially similar and that the requirements of subparagraph (C) of paragraph (2) of subdivision (d) have not been satisfied.  (h) (1) The Board of Governors of the California Community Colleges shall develop, and adopt by regulation, a funding model for the support of the statewide baccalaureate degree program that is based on a
						calculation of the number of full-time equivalent students enrolled in all district baccalaureate degree programs.  (2) Funding for each full-time equivalent student shall be at a marginal cost calculation, as determined by the Board of Governors of the California Community Colleges, that shall not exceed the community college credit instruction marginal cost calculation for a full-time equivalent student, as determined pursuant to paragraph (2) of subdivision (d) of Section 84750.5.  (3) A student in a baccalaureate degree program authorized by this article shall not be charged fees higher than the mandatory systemwide fees charged for baccalaureate degree programs at the California State University.  (4) Fees for coursework in a baccalaureate degree program shall be consistent with Article 1 (commencing with Section
						76300) of Chapter 2 of Part 47.  (5) A district shall, in addition to the fees charged pursuant to paragraph (4), charge a fee for upper division coursework in a baccalaureate degree program of eighty-four dollars ($84) per unit.  (i) The Chancellor of the California Community Colleges shall require all of the following for the application and review process for community college districts to participate in the baccalaureate degree program:  (1) A community college district is provided with two timelines in which to apply for a baccalaureate degree program per year. A community college district may submit an application to the Chancellor of the California Community Colleges by no later than January 15 and shall receive notice of approval or rejection on or before May 31. A community college district may submit an
						application to the Chancellor of the California Community Colleges by no later than August 15 and shall receive notice of approval or rejection on or before December 31.  (2) A community college district shall not submit more than three applications during an academic year.  (3) A district offering a baccalaureate degree program pursuant to this article shall not displace enrollment opportunities for students seeking associate degrees, associate degrees for transfer, certificates, or noncredit instruction, and shall maintain access to lower division instructional offerings.  (j) (1) The Chancellor of the California Community Colleges shall notify and send relevant materials to the California State University, the University of California, and the President of the Association of Independent
						California Colleges and Universities who may notify institutions with physical campuses in the service area of the community college district seeking the proposed baccalaureate degree program.  (2) (A) The California State University and the University of California may assess whether proposed baccalaureate degree programs are duplicative of existing baccalaureate programs offered by state universities, and may submit written comments to the Chancellor of the California Community Colleges regarding proposed baccalaureate degree programs. If the California State University or the University of California believes there is program duplication, consistent with paragraph (2) of subdivision (d), written objections with supporting evidence shall be submitted to the Chancellor of the California Community Colleges within 45 working days of receipt of the proposal. Upon receipt of a written objection described in paragraph (3), the
						Chancellor of the California Community Colleges shall have 30 working days to provide the application to the Secretary of Labor and Workforce Development pursuant to paragraph (4).  (B) If more than 45 applications for proposed baccalaureate degree programs are received during a single application period, the California State University and the University of California shall have 60 working days to provide written objections with supporting evidence to the Chancellor of the California Community Colleges.   (3) A formal objection filed by either the California State University or the University of California pursuant to paragraph (2) shall address, at minimum, each of the following issues in order to facilitate an appeal by the California State University, as described in paragraph (4), or an appeal by the University of California, as described in paragraph (5):  (A) The name and description of the baccalaureate degree program currently offered by the objecting segment that may be duplicated by the proposed baccalaureate degree program, including the campuses that offer the program.  (B) The specific components of the proposed baccalaureate degree program deemed as duplicative.  (4) Upon receipt of a written objection filed by the California State University to a proposed baccalaureate degree program, the Secretary of Labor and Workforce Development shall have 90 days to determine if the proposed baccalaureate degree program addresses an unmet current or projected future workforce need and if the capacity of the substantially similar academic program of the California State University is sufficient to meet the regional workforce needs. If the secretary determines that the program
						addresses an unmet current or projected future workforce need and the capacity of the substantially similar academic program of the California State University is not sufficient to meet the regional workforce needs, then the program may be established pursuant to the approval of the Board of Governors of the California Community Colleges. If the secretary determines the proposed baccalaureate degree program does not meet an unmet current or projected future workforce need, then the program shall not be established. A community college district shall not submit an application for a similar baccalaureate degree program for a period of five years after the secretary determines the proposed baccalaureate degree program does not meet an unmet current or projected future workforce need.  (5) Upon receipt of a written objection filed by the University of California to a proposed baccalaureate degree program, the Chancellor of the California Community
						Colleges shall have 30 working days to convene with the applicant and the University of California to collaborate and establish a written agreement before the program is approved. The written agreement shall address, at a minimum, whether each of the elements of the original objection addressed in paragraph (3) have been resolved. An objection filed pursuant to this paragraph shall not be referred to the Secretary of Labor and Workforce Development.  (k) (1) A community college district shall continue to offer an associate degree program in the same academic subject for which a baccalaureate degree program has been approved, unless that community college district has received approval from the Chancellor of the California Community Colleges to eliminate the associate degree program.  (2) When conducting a review to approve the elimination of an associate degree
						program, the Chancellor of the California Community Colleges shall evaluate both of the following:  (A) Changes to the labor market viability of the associate degree.  (B) Changes to the minimum education required to maintain program accreditation.  (l) (1) The Chancellor of the California Community Colleges shall annually report to the Legislature, on or before March 1, on the status of all baccalaureate degree programs approved pursuant to this article.  (2) The report shall include, but not be limited to, all of the following information for each approved baccalaureate degree program:  (A) The name of the district and baccalaureate degree program.  (B) Evidence that the district meets or exceeds the benchmarks and goals for associate degree and certificate completion, as established by the Board of Governors of the California Community Colleges.  (C) Whether a collaborative program was pursued and the outcome.  (D) Any objections received from the California State University or the University of California and the written agreements reached, and any determinations issued by the Secretary of Labor and Workforce Development pursuant to subdivision (f) or paragraph (4) of subdivision (j).  (E) Enrollment data.  (F) Student outcome data, including completion rates and employment outcomes, disaggregated by race, gender, income, and
						first-generation student status.  (G) A summary of the funding sources supporting the baccalaureate degree program, including apportionments received and fee revenue collected pursuant to subdivision (h), and any other funding used to support the program.  (3) The report shall be submitted in compliance with Section 9795 of the Government Code.  (m) This section shall become operative on January 1, 2028.  SEC. 5.    Section 4.5 of this bill adds Section 78042 to the Education Code as proposed to be added by both this bill and Assembly Bill 2694. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill adds Section 78042 to the Education Code, and (3) this bill is enacted after Assembly Bill 2694, in which case Section 4 of this bill shall not become operative.  SEC. 6.      This act shall become operative only if Assembly Bill 2694 of the 2025–26 Regular Session is enacted and becomes effective on or before January 1, 2027.  SECTION 1.  Section 78040 of the  Education Code  is amended to read:      78040.     For purposes of this article, the following definitions apply:      (a) “District” means any community college district identified by the Chancellor of the California Community Colleges as participating in the statewide baccalaureate degree program.      (b) “Impacted program” means a specific baccalaureate degree program offered by a campus of the California State University that has been designated as impacted by the California State University in accordance with its established policies and procedures and for which the number of eligible applications received in the initial filing period is greater than the number that can be accommodated by the
						program.      (c) “Local service area” means the same as defined in subdivision (c) of Section 89030.5.  SEC. 2.  Section 78042 of the  Education Code  is amended to read:      78042.     (a) A district shall seek approval to offer baccalaureate degree programs through the appropriate accreditation body.      (b) When seeking approval from the Board of Governors of the California Community Colleges, a district shall maintain the primary mission of the California Community Colleges specified in paragraph (3) of subdivision (a) of Section 66010.4. The district, as part of the baccalaureate degree program, shall have the additional mission to provide high-quality undergraduate education at an affordable price for students and the state.      (c) As a condition of eligibility for consideration to participate in the
						statewide baccalaureate degree program, a district shall have a written policy that requires all potential students who wish to apply for a Board of Governors Fee Waiver pursuant to Section 76300 to complete and submit either a Free Application for Federal Student Aid or a California Dream Act application in lieu of completing the Board of Governors Fee Waiver application.      (d) A district’s baccalaureate degree program shall be subject to the following limitations:      (1) A district shall identify and document unmet workforce needs in the subject area of the baccalaureate degree to be offered and offer a baccalaureate degree at a campus in a subject area with unmet workforce needs in the local community or region of the district.      (2) (A) A district shall not offer a baccalaureate degree program or program curricula already offered by the University of California, or by a campus of the California State University whose local service area includes, or overlaps with, the territory of the
						district, except as provided in subparagraph (B).      (B) (i) Notwithstanding subparagraph (A), beginning July 1, 2030, a district may offer a baccalaureate degree program or program curricula offered by a campus of the California State University whose local service area includes, or overlaps with, the territory of the district if the California State University program has been impacted for three consecutive years before the date the program is approved.      (ii) Before July 1, 2030, a campus of the California State University that wants to discontinue impaction for a baccalaureate degree program shall develop a plan describing how the campus will address enrollment demand and maintain student access for that program. The campus shall make the
						plan publicly available on its internet website.      (iii) A district’s baccalaureate degree program that is approved under the impaction-based duplication exception pursuant to clause (i) may continue to be offered regardless of any subsequent change in the impaction status of the corresponding California State University program.      (3) A district shall have the expertise, resources, and student interest to offer a quality baccalaureate degree in the chosen field of study.      (e) A district shall maintain separate records for students who are enrolled in courses classified in the upper division and lower division of a baccalaureate degree program. A student shall be reported as a community college student for enrollment in a
						lower division course and as a baccalaureate degree program student for enrollment in an upper division course.      (f) A governing board of a district seeking authorization to offer a baccalaureate degree program shall submit all of the following for review by the Chancellor of the California Community Colleges and approval by the Board of Governors of the California Community Colleges:      (1) Documentation of the district’s written policy required by subdivision (c).      (2) The administrative plan for the baccalaureate degree program, including, but not limited to, the governing board of the district’s funding plan for its specific district.      (3) A description
						of the baccalaureate degree program’s
						curriculum, faculty, and facilities.      (4) The enrollment projections for the baccalaureate degree program.      (5) Documentation regarding unmet workforce needs specifically related to the proposed baccalaureate degree program, and a written statement supporting the necessity of a four-year degree for that program. The documentation regarding unmet workforce needs shall include all of the following:      (A) Evidence that the district consulted with regional employers and regional workforce development boards.      (B) Evidence
						that the district consulted with the Labor and Workforce Development Agency to identify statewide and regional workforce data relevant to the proposed baccalaureate degree program.      (C) Evidence that the baccalaureate degree to be offered will help address unmet workforce needs identified by the Labor and Workforce Development Agency. The evidence may include, but is not limited to, information showing the following:      (i) Employers are having difficulty filling positions that require a baccalaureate degree.      (ii) Employers are willing to
						pay baccalaureate degree holders more than those with a related associate degree or no postsecondary degree.      (iii) Employers have a preference for candidates with the proposed baccalaureate degree.      (6) Documentation of consultation with the California State University and the University of California regarding collaborative approaches to meeting regional workforce needs.      (g) (1) The Board of Governors of the California Community Colleges shall develop, and adopt by regulation, a funding model for the support of the statewide baccalaureate degree program that is based on a calculation of the number of full-time equivalent students enrolled in all district baccalaureate degree programs.      (2) Funding for each full-time equivalent student shall be at a marginal cost calculation, as determined by the Board of Governors of the California Community Colleges, that shall not exceed the community college credit instruction marginal cost calculation for a full-time equivalent student, as determined pursuant to paragraph (2) of subdivision (d) of Section 84750.5.      (3) A student in a baccalaureate degree program authorized by this article shall not be charged fees higher than the mandatory systemwide fees charged for baccalaureate degree programs at the California State University.      (4) Fees for coursework in a baccalaureate degree program shall be consistent with Article 1 (commencing with Section 76300) of Chapter
						2 of Part 47.      (5) A district shall, in addition to the fees charged pursuant to paragraph (4), charge a fee for upper division coursework in a baccalaureate degree program of eighty-four dollars ($84) per unit.      (h) The Chancellor of the California Community Colleges shall ensure all of the following for the application and review process for community college districts to participate in the baccalaureate degree program:      (1) A community college district is provided with two timelines in which to apply for a baccalaureate degree program per year. A community college district may submit an application to the Chancellor of the California Community Colleges by no later than
						January 15 and shall receive notice of approval or rejection on or before May 31. A community college district may submit an application to the Chancellor of the California Community Colleges by no later than August 15 and shall receive notice of approval or rejection on or before December 31.      (2) Only 15 baccalaureate degree programs are approved during each application period, allowing for a total of 30 approved baccalaureate degree programs per academic year.      (3) The total number of baccalaureate degree programs offered by a community college district, at any time, does not exceed 15 percent of the total number of associate degree programs offered by the community college district, including associate degrees for transfer.      (4) The review process takes no less than 30 days from the receipt of a completed application to validate the information submitted and assess the workforce value of the proposed program by the Chancellor of the California Community Colleges.      (i) (1) The Chancellor of the California Community Colleges shall consult with and seek feedback from the Chancellor of the California State University, the President of the University of California, and the President of the Association of Independent California Colleges and Universities about proposed baccalaureate degree programs.      (2) The Chancellor of the California Community Colleges shall notify and send relevant materials to the California State University, the University of California, and the President of
						the Association of Independent California Colleges and Universities who may notify institutions with physical campuses in the service area of the community college district seeking the proposed baccalaureate degree program.      (3) The California State University and the University of California may assess whether proposed baccalaureate degree programs are duplicative of existing baccalaureate programs offered by state universities, and may submit written comments to the Chancellor of the California Community Colleges regarding proposed baccalaureate degree programs. If the California State University or the University of California believes there is program duplication, written objections with supporting evidence shall be submitted to the Chancellor of the California Community Colleges within 30 working days of receipt of the proposal.
						Upon receipt of written objections, the Chancellor of the California Community Colleges shall have 30 working days to convene with the applicant and the segment or segments that raised an objection to collaborate and establish a written agreement before the program is approved.      (4) A formal objection filed by either the California State University or the University of California pursuant to paragraph (3) shall address, at a minimum, each of the following issues in order to facilitate the consultation process:      (A) The name and description of the baccalaureate degree program currently offered by the objecting segment that may be duplicated by the proposed baccalaureate degree program, including the campuses that offer the program.      (B) The specific components of the proposed baccalaureate degree program deemed as duplicative.      (5) The written agreement established between the objecting segment and the Chancellor of the California Community Colleges shall address, at a minimum, whether each of the elements of the original objection addressed in paragraph (4) have been resolved.      (j) (1) A community college district shall continue to offer an associate degree program in the same academic subject for which a baccalaureate degree program has been approved, unless that community college district has received approval from the Chancellor of the California Community Colleges to eliminate the associate degree program.      (2) When conducting a review to approve the elimination of an associate degree program, the Chancellor of the California Community Colleges shall evaluate both of the following:      (A) Changes to the labor market viability of the associate degree.      (B) Changes to the minimum education required to maintain program accreditation.      (k) (1) The Chancellor of the California Community Colleges shall annually report to the Legislature, on or before March 1, on the status of all baccalaureate degree programs approved pursuant to this article.      (2) The report shall include, but not be limited to, all of the
						following information for each approved baccalaureate degree program:      (A) The name of the district and baccalaureate degree program.      (B) Evidence that the district meets or exceeds the benchmarks and goals for associate degree and certificate completion, as established by the Board of Governors.      (C) Whether a collaborative program was pursued and the outcome.      (D) Any objections received from the California State University or the University of California and the written agreements reached.      (E) Enrollment data.      (F) Student outcome data, including completion rates and employment outcomes, disaggregated by race, gender, income,
						and first-generation student status.      (3) The report shall be submitted in compliance with Section 9795 of the Government Code.