BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1028|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1028
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  8/30/12
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    2012-13 Budget Trailer Bill:  Education

           SOURCE  :     Author


           DIGEST  :    This bill makes necessary statutory changes in 
          the area of education in order to enact modifications to 
          the 2012-13 Budget Act.

           Assembly Amendments  delete the intent of the Legislature to 
          enact statutory changes relating to the Budget Act of 2012, 
          and insert the above language.

           ANALYSIS  :    This bill makes necessary statutory changes in 
          the area of education in order to enact modifications to 
          the 2012-13 Budget Act.  Specifically, this bill:

          1. Amends the Budget Act of 2011 to make a technical 
             scoring correction that is a part of a Proposition 98 
             funding swap for special education utilized to achieve 
             one-time budget savings in 2011-12.  

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          2. Corrects the appropriations for the Quality Education 
             Investment Act (QEIA) program in 2013-14 to reflect 
             amounts agreed to as a part of the 2012-13 Budget Act. 

          3. Makes changes to existing statute to ensure that 
             intercept payments related to facilities working capital 
             financing and bond issuances through the California 
             School Finance Authority for districts, counties, 
             charter schools and community colleges includes all 
             funds dispersed to them, as specified, regardless of 
             fund source. 

          4. Adds five small mandates to the K-12 education mandate 
             block grant established by the 2012-13 Budget that were 
             inadvertently left off the mandates block grant list.  

          5. Requires the State Board of Education, the Health and 
             Human Services Agency and the Department of Social 
             Services to repeal regulations related to county mental 
             health services that are no longer supported by statute.

          6. Reinstates the expectation that the University of 
             California (UC) will enroll a total of 209,977 
             state-supported full-time equivalent students during the 
             2012-13 academic year.  This target was included in the 
             Budget Act of 2012 but was subsequently vetoed by the 
             Governor.  As a condition of receipt of state General 
             Fund (GF) in 2012-13, requires the UC to report to the 
             Legislature by May 1, 2013, on whether it has met the 
             enrollment goal.

          7. Appropriates $4.75 million in 2006 General Obligation 
             (GO) bond funds for the costs of preliminary plans and 
             working drawings for a new Classroom and Academic Office 
             Building at UC Merced.  Includes budget bill provisional 
             language, which has been included in the past several 
             budgets on GO-bond funded UC capital outlay projects, to 
             authorize expenditure of any savings as specified and 
             require payment of prevailing wage rates.

          8. Clarifies existing law, adopted as part of the 2011 
             Budget Act, that an institution that is ineligible to 
             participate in the Cal Grant program shall regain its 
             eligibility in the academic year for which it satisfies 

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             the eligibility requirements.  Under current law, 
             federally reported cohort default rate (CDR) and 
             graduation rate data is certified by the California 
             Student Aid Commission (CSAC) in October of each year.  
             That data becomes the basis for program eligibility in 
             the following academic year.  Existing law also 
             specifies that an institution must have a CDR under 
             15.5% and a graduation rate greater than 30% to be 
             eligible for the program.  This amendment clarifies that 
             an institution that is ineligible in the 2012-13 
             academic year shall regain its eligibility in the 
             2013-14 academic year if it satisfies the eligibility 
             tests based on the fall 2012 data.  The CSAC has 
             interpreted current law to read as a two-year exclusion 
             from the program.

          9. Appropriate $5 million from the golden State 
             Scholarshare Trust Fund to the Chancellor of the 
             California State University to fund the establishment 
             and maintenance of the California Open Education 
             Resources Council and the California Digital Open 
             Sources Library, and the development or acquisition of 
             open education resources, pursuant to legislation.  
             Further, the amendments allow the Chancellor to 
             reimburse California community colleges and the UC for 
             any of their costs associated with these activities.  
             Moneys appropriated would be required to be matched 100% 
             by private funds prior to being encumbered. 

          10.Contains an appropriation allowing this bill take effect 
             immediately upon enactment.

           Comments  
           
          This bill makes necessary technical and clarifying changes 
          in the area of education in order to enact modifications to 
          the 2012-13 Budget Act.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

          Appropriates $230,000 in federal Individuals with 
          Disabilities Act carryover funds to the California 
          Department of Education for oversight and technical 

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          monitoring related to behavior intervention plans.  
          Appropriates $4.75 million in 2006 GO bond funds for the 
          costs of preliminary plans and working drawings for a new 
          classroom and academic office building at UC Merced.  
          Appropriates $361 million for the QEIA in 2013-14.  
          Appropriates $5 million from State Scholarshare funds to 
          the California State University, pursuant to legislation as 
          specified.


          PQ:k  8/31/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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