BILL NUMBER: SB 1437 CHAPTERED 09/30/08 CHAPTER 718 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008 APPROVED BY GOVERNOR SEPTEMBER 30, 2008 PASSED THE SENATE AUGUST 28, 2008 PASSED THE ASSEMBLY AUGUST 25, 2008 AMENDED IN ASSEMBLY AUGUST 20, 2008 AMENDED IN ASSEMBLY AUGUST 18, 2008 AMENDED IN ASSEMBLY AUGUST 8, 2008 AMENDED IN ASSEMBLY JULY 3, 2008 AMENDED IN ASSEMBLY JUNE 26, 2008 AMENDED IN ASSEMBLY JUNE 11, 2008 AMENDED IN SENATE APRIL 22, 2008 AMENDED IN SENATE MARCH 24, 2008 INTRODUCED BY Senator Padilla (Principal coauthor: Assembly Member Portantino) (Coauthors: Senators Romero, Simitian, and Torlakson) (Coauthors: Assembly Members Krekorian and Levine) FEBRUARY 21, 2008 An act to amend Section 48800 of, to add Section 71096 to, and to add and repeal Article 2 (commencing with Section 78910.10) of Chapter 7 of Part 48 of Division 7 of Title 3 of, the Education Code, and to amend Section 280 of the Public Utilities Code, relating to education. LEGISLATIVE COUNSEL'S DIGEST SB 1437, Padilla. Education technology: California Virtual Campus: pupils of public high schools: community college enrollment. (1) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes various programs for the purpose of enhancing and implementing education technology at community college districts. This bill would, pursuant to funding provided to the Board of Governors of the California Community Colleges, authorize the California Virtual Campus to pursue specified purposes relating to education technology to the extent funding is available. The bill would authorize the California Virtual Campus to partner with other educational entities and community-based organizations to facilitate ongoing collaboration and joint efforts relating to the use of technology resources and Internet connectivity. The bill would authorize the California Virtual Campus grant recipients to accomplish specified objectives relating to online education. The bill would require the board of governors, by February 28, 2009, to require the California Virtual Campus to establish a memorandum of understanding with at least 10 community-based organizations, as specified, that provide residents in low-income neighborhoods with access to high-speed networking and computers. The bill would require that the 10 community-based organizations be selected by a 6-member committee convened by the California Virtual Campus. The bill would require the California Virtual Campus to ensure that pilot program participants have access to adequate technical and operational support. The bill would require, on or before July 1, 2013, the lead agency for the California Virtual Campus to contract for an independent evaluation of, and submit a report to the Public Utilities Commission on, the achievements of the California Virtual Campus' joint efforts with community-based organizations. The bill would limit community college local assistance expenditures to extend high-speed network connectivity to the community-based organizations to $100,000. The bill would apply to the University of California to the extent that the Regents of the University of California, acting by appropriate resolution, make it applicable. The bill would repeal these provisions of law on January 1, 2014. (2) Existing law requires the Public Utilities Commission to develop, implement, and administer a program to advance universal service by providing discounted rates to qualifying schools, libraries, hospitals, health clinics, and community organizations, consistent with a specific law. This bill would specify that a qualifying school under that program must maintain kindergarten or any of grades 1 to 12, inclusive, and would make community colleges eligible for receipt of funding under the program. The bill would require the office of the Chancellor of the California Community Colleges to report specified discount amount information to the Department of Finance no later than September 1 of each year for the immediately preceding fiscal year. (3) Existing law authorizes the governing board of a school district, upon recommendation of the principal of a pupil's school of attendance, and with parental consent, to authorize a pupil who would benefit from advanced scholastic or vocational work to attend community college as a special part-time student to undertake one or more courses of instruction at the community college level in order to provide educational enrichment opportunities for a limited number of eligible pupils. Existing law prohibits a principal from recommending, for any particular grade level, for community college summer session attendance, more than 5% of the total number of pupils who completed that grade immediately prior to the time of recommendation. The 5% limitation exempts high school pupils who meet specified criteria. Existing law makes inoperative the exemption and related provisions on January 1, 2009. This bill would extend the operation of those provisions by making them inoperative on January 1, 2014. (4) This bill would incorporate additional changes in Section 48800 of the Education Code proposed by AB 1821, that would become operative only if AB 1821 and this bill are both chaptered and become effective on or before January 1, 2009, and this bill is chaptered last. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 48800 of the Education Code is amended to read: 48800. (a) The governing board of a school district may determine which pupils would benefit from advanced scholastic or vocational work. The intent of this section is to provide educational enrichment opportunities for a limited number of eligible pupils, rather than to reduce current course requirements of elementary and secondary schools, and also to help ensure a smoother transition from high school to college for pupils by providing them with greater exposure to the collegiate atmosphere. The governing board may authorize those pupils, upon recommendation of the principal of the pupil's school of attendance, and with parental consent, to attend a community college during any session or term as special part-time or full-time students and to undertake one or more courses of instruction offered at the community college level. (b) If the governing board denies a request for a special part-time or full-time enrollment at a community college for any session or term for a pupil who is identified as highly gifted, the governing board shall issue its written recommendation and the reasons for the denial within 60 days. The written recommendation and denial shall be issued at the next regularly scheduled board meeting that falls at least 30 days after the request has been submitted. (c) A pupil shall receive credit for community college courses that he or she completes at the level determined appropriate by the governing boards of the school district and community college district. (d) (1) The principal of a school may recommend a pupil for community college summer session only if that pupil meets all of the following criteria: (A) Demonstrates adequate preparation in the discipline to be studied. (B) Exhausts all opportunities to enroll in an equivalent course, if any, at his or her school of attendance. (2) For any particular grade level, a principal shall not recommend for community college summer session attendance more than 5 percent of the total number of pupils who completed that grade immediately prior to the time of recommendation. (3) A high school pupil recommended by his or her principal for enrollment in a course shall not be included in the 5 percent limitation of pupils allowed to be recommended pursuant to paragraph (2) if the course in which the pupil is enrolled meets one of the criterion listed in subparagraphs (A) to (C), inclusive, and the high school principal who recommends the pupil for enrollment provides the Chancellor of the California Community Colleges, upon the request of that office, with the data required for purposes of paragraph (4). (A) The course is a lower division, college-level course for credit that is designated as part of the Intersegmental General Education Transfer Curriculum or applies toward the general education breadth requirements of the California State University. (B) The course is a college-level, occupational course for credit assigned a priority code of "A," "B," or "C," pursuant to the Student Accountability Model, as defined by the Chancellor of the California Community Colleges and reported in the management information system, and the course is part of a sequence of vocational or career technical education courses leading to a degree or certificate in the subject area covered by the sequence. (C) The course is necessary to assist a pupil who has not passed the California High School Exit Examination (CAHSEE), does not offer college credit in English language arts or mathematics, and the pupil meets both of the following requirements: (i) The pupil is in his or her senior year of high school. (ii) The pupil has completed all other graduation requirements prior to the end of his or her senior year, or will complete all remaining graduation requirements during a community college summer session, which he or she is recommended to enroll in, following his or her senior year of high school. (4) On or before November 1, 2007, and on or before January 1 of each year thereafter, the Chancellor of the California Community Colleges shall report to the Department of Finance the number of pupils recommended pursuant to paragraph (3) who enroll in community college summer session courses and who receive a passing grade. (5) The Board of Governors of the California Community Colleges shall not include enrollment growth attributable to paragraph (3) as part of its annual budget request for the California Community Colleges. (6) Notwithstanding Article 3 (commencing with Section 33050) of Chapter 1 of Part 20 of Division 2, compliance with this subdivision shall not be waived. (e) Paragraphs (3), (4), and (5) of subdivision (d) shall become inoperative on January 1, 2014. SEC. 1.5. Section 48800 of the Education Code is amended to read: 48800. (a) The governing board of a school district may determine which pupils would benefit from advanced scholastic or vocational work. The intent of this section is to provide educational enrichment opportunities for a limited number of eligible pupils, rather than to reduce current course requirements of elementary and secondary schools, and also to help ensure a smoother transition from high school to college for pupils by providing them with greater exposure to the collegiate atmosphere. The governing board may authorize those pupils, upon recommendation of the principal of the pupil's school of attendance, and with parental consent, to attend a community college during any session or term as special part-time or full-time students and to undertake one or more courses of instruction offered at the community college level. (b) If the governing board denies a request for a special part-time or full-time enrollment at a community college for any session or term for a pupil who is identified as highly gifted, the board shall issue its written recommendation and the reasons for the denial within 60 days. The written recommendation and denial shall be issued at the next regularly scheduled board meeting that falls at least 30 days after the request has been submitted. (c) A pupil shall receive credit for community college courses that he or she completes at the level determined appropriate by the governing boards of the school district and community college district. (d) (1) The principal of a school may recommend a pupil for community college summer session only if that pupil meets all of the following criteria: (A) Demonstrates adequate preparation in the discipline to be studied. (B) Exhausts all opportunities to enroll in an equivalent course, if any, at his or her school of attendance. (2) For any particular grade level, a principal shall not recommend for community college summer session attendance more than 5 percent of the total number of pupils who completed that grade immediately prior to the time of recommendation. (3) A high school pupil recommended by his or her principal for enrollment in a course shall not be included in the 5 percent limitation of pupils allowed to be recommended pursuant to paragraph (2) if the course in which the pupil is enrolled meets one of the criterion listed in subparagraphs (A) to (C), inclusive, and the high school principal who recommends the pupil for enrollment provides the Chancellor of the California Community Colleges, upon the request of that office, with the data required for purposes of paragraph (4). (A) The course is a lower division, college-level course for credit that is designated as part of the Intersegmental General Education Transfer Curriculum or applies toward the general education breadth requirements of the California State University. (B) The course is a college-level, occupational course for credit assigned a priority code of "A," "B," or "C," pursuant to the Student Accountability Model, as defined by the Chancellor of the California Community Colleges and reported in the management information system, and the course is part of a sequence of vocational or career technical education courses leading to a degree or certificate in the subject area covered by the sequence. (C) The course is necessary to assist a pupil who has not passed the California High School Exit Examination (CAHSEE), does not offer college credit in English language arts or mathematics, and the pupil meets both of the following requirements: (i) The pupil is in his or her senior year of high school. (ii) The pupil has completed all other graduation requirements prior to the end of his or her senior year, or will complete all remaining graduation requirements during a community college summer session, which he or she is recommended to enroll in, following his or her senior year of high school. (4) On or before March 1 of each year, the Chancellor of the California Community Colleges shall report to the Department of Finance the number of pupils recommended pursuant to paragraph (3) who enroll in community college summer session courses and who receive a passing grade. The report shall be integrated with the report required in subdivision (c) of Section 76002. The combined report shall maintain the distinction between the two pupil populations referenced in this section and in Section 76002. (5) The Board of Governors of the California Community Colleges shall not include enrollment growth attributable to paragraph (3) as part of its annual budget request for the California Community Colleges. (6) Notwithstanding Article 3 (commencing with Section 33050) of Chapter 1 of Part 20 of Division 2, compliance with this subdivision may not be waived. (e) Paragraphs (3) and (5) of subdivision (d) shall become inoperative on January 1, 2014. SEC. 2. Section 71096 is added to the Education Code, to read: 71096. The office of the Chancellor of the California Community Colleges shall report to the Department of Finance no later than September 1 of each year for the preceding fiscal year both of the following: (a) The amount of discounts authorized by Section 280 of the Public Utilities Code for community colleges that reduce community college district costs. (b) The amount of discounts authorized by Section 280 of the Public Utilities Code that have the effect of reducing the cost of local assistance provided by the office of the chancellor as appropriated pursuant to Schedule (14) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2007 and any successive appropriations for the same purpose in subsequent fiscal years for maintaining connectivity for the community college districts. SEC. 3. Article 2 (commencing with Section 78910.10) is added to Chapter 7 of Part 48 of Division 7 of Title 3 of the Education Code, to read: Article 2. California Virtual Campus 78910.10. (a) (1) The California Virtual Campus, pursuant to funding provided to the Board of Governors of the California Community Colleges for this purpose in the annual Budget Act, may pursue all of the following purposes, to the extent funding is available: (A) To enrich formal and informal educational experiences and improve students' academic performance by supporting the development of highly engaging, research-based innovations in teaching and learning in K-12 public schools and the California Community Colleges, the California State University, and the University of California. (B) To enhance the awareness of, and access to, highly engaging online courses of study, emphasizing courses of study that support a diverse and highly skilled science, technology, engineering, and mathematics workforce. (C) To support education research, the implementation of research-based practices, and promote economic development through the use of next generation advanced network infrastructure, services, and network technologies that enable collaboration and resource sharing between formal and informal educators in K-12 public schools, the California Community Colleges, the California State University, the University of California, independent colleges and universities, public libraries, and community-based organizations at locations across the state. (D) To increase access to next generation Internet services, 21st century workforce development programs, and e-government services for students and staff served or employed by education entities and students served primarily online through partnerships with public libraries and community-based organizations. (E) To enhance access to health care education and training programs to current or future health care workers. (F) To manage digital assets and develop contracts for services necessary to provide the technical and management support needed to maximize the benefits of the high-speed, high-bandwidth network infrastructure available to public higher education entities in California. (G) Through the aggregation of demand for network enabled technologies and related services from public education entities, and through partnerships with the private sector, to provide education entities with access to technical support and staff who can facilitate statewide efforts that support innovations in teaching and learning that are necessary to provide for a well-educated citizenry, and economic and 21st century workforce development. (2) To accomplish the purposes of paragraph (1), the California Virtual Campus may partner with local educational agencies, the State Department of Education, the 11 regional California Technology Assistance Projects, the California Community Colleges, the California State University, the University of California, independent colleges and universities, public libraries, and community-based organizations to facilitate ongoing collaboration and joint efforts relating to the use of technology resources and high-speed Internet connectivity to support teaching, learning, workforce development, and research. (3) Efforts conducted as a result of this chapter shall not prohibit or otherwise exclude the ability of existing or new educational technology programs from being developed, expanded, or enhanced. (b) For purposes of this article, the following terms have the following meanings: (1) "Online courses of study" means any of the following: (A) Online teaching, learning, and research resources, including, but not necessarily limited to, books, course materials, video materials, interactive lessons, tests, or software, the copyrights of which have expired, or have been released with an intellectual property license that permits their free use or repurposing by others without the permission of the original authors or creators of the learning materials or resources. (B) Professional development opportunities for formal and informal educators who desire to use the resources in subparagraph (A). (C) Online instruction. (2) "Online instruction" means technology enabled online real time (synchronous) interaction between the instructor and the student, near time (asynchronous) interaction between the instructor and the student, or any combination thereof. (c) The California Virtual Campus grant recipient may accomplish all of the following: (1) Convene at least four leadership stakeholder group meetings annually comprised of representatives from the State Department of Education, the California Technology Assistance Project, and other related programs administered through the department, local education agencies, including adult education, the California Community Colleges, the California State University, the University of California, independent colleges and universities, the California State Library, and representatives from community-based organizations to ensure the efforts affecting segments represented are appropriately meeting the needs of those segments. The leadership stakeholder group shall also coordinate and obtain assistance with the implementation of efforts delineated in this article, to identify and maintain an up-to-date list of the technology resources and tools that are necessary to support innovation in teaching and learning, and to identify opportunities for leveraging resources and expertise for meeting those needs in an efficient and cost-effective manner. (2) Lead efforts to make online courses of study available across the state that include, but are not limited to, the following: (A) Developing online courses of study that are pedagogically sound and fully accessible, in compliance with the federal Americans with Disabilities Act (Public Law 101-336), by students with varying learning styles and disabilities. (i) The development of K-12 online courses pursuant to this subparagraph shall be achieved in partnership with local education agencies and the California Technology Assistance Project. (ii) Online courses developed for grades K-12 pursuant to this subparagraph shall be aligned to the California academic content standards and guidelines for online courses. (B) Overseeing the development of at least 12 model online courses of study that, collectively, would allow students to meet the requirements of the Intersegmental General Education Transfer Curriculum (IGETC) and at least two courses that support basic skills education courses in English, English as a second language, or mathematics. (C) Encouraging the entities listed in paragraph (1) to do both of the following: (i) Make accessible to each other their courses of study that are funded by the state. (ii) Allow their courses of study to be accessible to the general public if they determine access would not inhibit their ability to provide appropriate protection of the state's intellectual property rights. (3) Ensure that the learning objects created as part of the California Virtual Campus online courses of study with state General Fund revenues are linked to digital content libraries that include information about course content freely available to California educators and students. (4) Develop formal partnership agreements between the entities listed in paragraph (1) and the California Virtual Campus, including course articulation agreements that allow qualified high school students to accelerate the completion of requirements for a high school diploma and a two-year or four-year degree and agreements that provide opportunities for part-time faculty teaching online to obtain full-time employment teaching online. (5) Develop formal partnership agreements with the entities listed in paragraph (1) and others to enhance access to professional development courses that introduce faculty, teachers, staff, and college course developers to the conceptual development, creation, and production methodologies that underlie the development of online courses of study and support students' successful completion of those courses. The professional development opportunities may include, but not necessarily be limited to, all of the following: (A) Addressing issues relating to copyright, permission for the use or reuse of material, use of resources in the public domain, and other intellectual property concepts. (B) Accessibility for students with disabilities. (C) Factors to ensure that content is culturally relevant to a diverse student body. (D) Delivery options that incorporate multiple learning styles and strategies. (6) Develop formal partnership agreements with entities, including, but not limited to, those listed in paragraph (1), to ensure access to online professional learning communities that incorporate the use of Internet-based collaboration tools and to support joint discussions between K-12 educators, higher education faculty and staff, and others to examine student performance data, student learning objectives, curriculum, and other issues that relate to students' academic success and preparation for the workforce. (7) In partnership with entities, including those listed in paragraph (1), develop an e-portfolio system that allows participating students to demonstrate their attainment of academic learning objectives, skills and knowledge that relate to their career interests, and completion of prerequisites for participation in courses or training programs. The e-portfolio system may do all of the following: (A) Ensure that student privacy is protected in accordance with existing law. (B) Comply with accessibility laws for students with disabilities. (C) Be designed in a manner that supports the use of e-portfolio content in the accreditation requirements of schools, colleges, and universities. (8) In partnership with entities, including those listed in paragraph (1), identify opportunities to enhance students' access to medical education and medical services through the use of high-speed Internet connections to the campuses, and opportunities for education programs and services to support the telemedicine efforts taking place within the state. (d) The lead agency for the California Virtual Campus, in consultation with the leadership stakeholder group described in paragraph (1) of subdivision (c) if that group is convened by the California Virtual Campus grant recipient, shall contract with an independent third party with expertise in online teaching, learning, and the development of online courses of study, as approved by the board, to evaluate the California Virtual Campus. The evaluation shall include, but not be limited to, an assessment of the number of faculty, teachers, consortia, informal educators, and students that use the online courses of study, the quality of students' experiences, student grades earned, and the cost of the online course content, comparing the online course content with traditional textbooks. The board may require additional information that it determines to be necessary to evaluate the effectiveness and viability of the California Virtual Campus. This evaluation shall be submitted to the Legislature no later than three years of the enactment of this act. 78910.15. (a) By February 28, 2009, the board shall require the California Virtual Campus to establish memorandums of understanding with at least 10 community-based organizations specified in paragraph (2) of subdivision (c) of Section 280.5 of the Public Utilities Code, that provide residents in low-income neighborhoods with access to high-speed networking and computers. The memorandum of understanding shall document the California Virtual Campus' commitment to do all of the following: (1) Provide high-speed network connectivity to the site. (2) Provide access to online courses of study and tutoring services. (3) Work with the community-based organization, and partner with local educational agencies, the California Technology Assistance Project, and other state-supported K-12 educational technology programs, as appropriate, to plan and promote joint educational offerings that are delivered online and supported by the staff of a community-based organization that can facilitate student use of technology. (b) The 10 community-based organizations shall be selected on a competitive basis by a six-member selection committee convened by the California Virtual Campus. Members of the selection committee shall include: (1) Two representatives of community-based organizations appointed by the Chancellor of the California Community Colleges. (2) One community college representative appointed by the Chancellor of the California Community Colleges. (3) One representative from a K-12 school district appointed by the Superintendent of Public Instruction. (4) One representative from the California State University appointed by the Chancellor of the California State University system. (5) One representative appointed by the California Emerging Technologies Fund Committee. (c) The selection committee convened pursuant to subdivision (b) shall ensure that no less than one community-based organization is selected from each of the nine economic regions identified by the California Economic Strategy Panel, and that all sites are willing and able to support academic offerings as outlined in the request for proposals. (d) The California Virtual Campus shall ensure that pilot project participants have access to adequate technical and operational support from an individual or entity under contract with the California Virtual Campus with expertise in the operation and management of community-based organizations to enable the site to successfully meet obligations set forth in the memorandum of understanding. (e) On or before July 1, 2013, the lead agency for the California Virtual Campus shall contract for an independent evaluation, as approved by the board, and shall submit a report to the Public Utilities Commission, or its designee, that documents the extent to which the California Virtual Campus' joint efforts with the 10 community-based organizations have achieved all of the following: (1) Increased the range of offerings available at each site to address the digital divide in accordance with subdivision (e) of Section 280.5 of the Public Utilities Code. (2) Provided for equity of access to high-speed communications networks, the Internet, and other services that provide social benefits in accordance with the legislative findings and declarations contained in Section 871.7 of the Public Utilities Code, including, but not necessarily limited to, all of the following: (A) Improving the quality of life among the residents of California. (B) Expanding access to public and private resources for education, training, and commerce. (C) Increasing access to public resources enhancing public health and safety. (D) Assisting in bridging the digital divide through expanded access to new technologies by low-income, disabled, or otherwise disadvantaged Californians. (E) Shifting traffic patterns by enabling telecommuting, thereby helping to improve air quality in all areas of the state and mitigating the need for highway expansion. (3) Supported participation in online offerings provided by the California Virtual Campus in accordance with Section 78910.10. (f) In the event that the board determines that the joint efforts of the California Virtual Campus and the community-based organizations have been successful pursuant to subdivision (e), the board shall submit a plan to the Legislature and the Governor by January 1, 2015, which contains recommendations for expanding the number of sites partnering with the California Virtual Campus, conditions for expansion, and recommendations for ways of addressing any potential funding requirements. (g) Community college local assistance expenditures to extend high-speed network connectivity to community-based organizations that partner with community colleges for instructional delivery pursuant to this section shall not exceed one hundred thousand dollars ($100,000). 78910.20. (a) The California Virtual Campus may form a business advisory group to assist with the development of a plan which outlines methods for the California Virtual Campus and the entities listed in paragraph (1) of subdivision (c) of Section 78910.10 to work together to strengthen the preparation of a diverse and highly skilled science, technology, engineering, and mathematics workforce, and to address workforce shortages. The plan shall identify existing resources and programs that will be more accessible due to the use of network enabled technologies, and methods that are effective due to the use of network enabled technologies. (b) By March 1, 2009, the California Virtual Campus may submit the plan developed in accordance with subdivision (a) to the board, the Legislature, and the Governor. 78910.25. No provision of this article shall apply to the University of California except to the extent that the Regents of the University of California, by appropriate resolution, make the provision applicable. 78910.30. This article shall remain in effect until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date. SEC. 4. Section 280 of the Public Utilities Code is amended to read: 280. (a) The commission shall develop, implement, and administer a program to advance universal service by providing discounted rates to qualifying schools maintaining kindergarten or any of grades 1 to 12, inclusive, community colleges, libraries, hospitals, health clinics, and community organizations, consistent with Chapter 278 of the Statutes of 1994. (b) There is hereby created the California Teleconnect Fund Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to advance universal service by providing discounted rates to qualifying schools maintaining kindergarten or any of grades 1 to 12, inclusive, community colleges, libraries, hospitals, health clinics, and community organizations, consistent with Chapter 278 of the Statutes of 1994, and to carry out the program pursuant to the commission's direction, control, and approval. (c) All revenues collected by telephone corporations in rates authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. The commission shall transfer the moneys received to the Controller for deposit in the California Teleconnect Fund Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. (d) Moneys appropriated from the California Teleconnect Fund Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. (e) Moneys loaned from the California Teleconnect Fund Administrative Committee Fund in the Budget Act of 2003 are subject to Section 16320 of the Government Code. If the commission determines a need for moneys in the California Teleconnect Fund Administrative Committee Fund, the commission shall notify the Director of Finance of the need, as specified in Section 16320 of the Government Code. The commission may not increase the rates authorized by the commission to fund the program specified in subdivision (b) while moneys loaned from the California Teleconnect Fund Administrative Committee Fund in the Budget Act of 2003 are outstanding unless both of the following conditions are satisfied: (1) The Director of Finance, after making a determination pursuant to subdivision (b) of Section 16320 of the Government Code, does not order repayment of all or a portion of any loan from the California Teleconnect Fund Administrative Committee Fund within 30 days of notification by the commission of the need for the moneys. (2) The commission notifies the Director of Finance and the Chairperson of the Joint Legislative Budget Committee in writing that it intends to increase the rates authorized by the commission to fund the program specified in subdivision (a). The notification required pursuant to this paragraph shall be made 30 days in advance of the intended rate increase. (f) Subdivision (e) shall become inoperative upon full repayment or discharge of all moneys loaned from the California Teleconnect Fund Administrative Committee Fund in the Budget Act of 2003. SEC. 5. Section 1.5 of this bill incorporates amendments to Section 48800 of the Education Code proposed by both this bill and AB 1821. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2009, (2) each bill amends Section 48800 of the Education Code, and (3) this bill is enacted after AB 1821, in which case Section 1 of this bill shall not become operative.