INSIDE HIGHER ED. JUNE 10, 2013. A controversial California proposal to expand the state public colleges' use of online education has passed the Senate, though it's been amended again. Early versions of the bill would have required the state’s 145 public colleges and universities to grant credit for low-cost online courses offered by outside groups, including classes offered by for-profit companies. The latest version, which cleared the Senate late last month and is pending in the state Assembly, would create an "incentive grant program" to encourage faculty and campuses to work either with each other across the state's tri-part higher education system or with private companies to offer online classes in high-demand subjects to college and high school students. Faculty representatives, which came out strongly against earlier versions of the bill, reportedly remain opposed.