Amended in Assembly January 6, 2014

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1271

Introduced by Assembly Member Bonta

February 22, 2013

An act to begin delete add Article 3 (commencing with Section 14030) to Chapter 3 of Division 7 of the Unemployment Insurance Code, relating to workforce development. end delete begin insert amend Section 84810.5 of the Education Code, relating to community colleges. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1271, as amended, Bonta. begin delete Workforce development. end delete begin insert Community colleges: inmate education programs: computation of apportionments. end insert

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(1) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as a segment of public postsecondary education in the state.

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Existing law, notwithstanding open course provisions in statute or regulations of the board of governors, authorizes the governing board of a community college district that provides classes for inmates of certain facilities, including a federal correctional facility, to include the units of full-time equivalent students generated in those classes for purposes of state apportionments.

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This bill would instead require the open course provisions in statute or regulations of the board of governors to be waived for a governing board of a community college district that provides those classes for inmates, including inmates of state correctional facilities, and would authorize the board of governors to include the units of full-time equivalent students generated in those classes for purposes of state apportionments.

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(2) Existing law provides for the method of computing apportionments for purposes of these inmate education programs.

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This bill would make revisions to that method of computation.

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The bill would prohibit a community college district from claiming, under the bill, for purposes of apportionments, a class for which a district receives full compensation for its direct education costs for the conduct of the class from a public or private agency, individual, or group of individuals, and a class offered pursuant to a contract or instructional agreement entered into between the district and a public or private agency, individual, or group of individuals that has received from another source full compensation for the costs the district incurs under that contract or instructional agreement, as prescribed.

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The California Workforce Investment Board (board) is the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system. Existing law requires that local workforce investment boards be established in each local workforce investment area of the state to assist the local chief elected official in planning, oversight, and evaluation of local workforce investment.

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This bill would establish the Economically Impacted Area Loan Repayment Program, to be administered by the board and to provide for the repayment of business school loans of participants who satisfy its requirements. The bill would require that a person agree in writing prior to completing an accredited business school based in the United States to establish a qualifying small business and employ residents of an economically impacted area in order to be eligible to participate in the program. The bill would establish that the maximum allowable amount of loan repayment is $105,000. The bill would require the board to recover the funds awarded plus interest if a program participant does not complete his or her contractual service obligation. The bill would establish the Economically Impacted Area Loan Repayment Program Fund to consist of private moneys donated to the program for deposit into the fund and any interest that accrues on those moneys. The bill would require that the fund would be used, upon appropriation by the Legislature, for the purposes of the program and would limit the funds that may be used for administrative costs, as specified. The bill would provide that these provisions are to be implemented only to the extent that the fund contains sufficient moneys to effectuate the purposes of the article as determined by the board.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 84810.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

84810.5.  

(a)  begin delete Notwithstanding open end delete begin delete end delete begin insert (1) end insert begin insert   end insert begin insert Open end insert course
provisions in statute or regulations of the board of begin delete governors, the end delete
begin insert governors shall be waived for a end insert governing board of a community
college district that provides classes for inmates of begin delete any end delete begin insert a end insert city,
county, or city and county jail, road camp, farm for adults, or begin insert state
or end insert federal correctional begin delete facility may include the units of full-time
equivalent student (FTES) generated in those classes for purposes
of state apportionment. The attendance hours generated by credit
or noncredit shall be added and counted for apportionment purposes
as noncredit attendance hours. end delete begin insert facility. This section shall not be
construed to authorize the waiver of open course provisions in any
context or situation other than those that are specifically authorized
by this section. Subject to limitations set forth in subdivision (b),
the board of governors may include the units of full-time equivalent
students (FTES) generated in those classes for purposes of state
apportionments. end insert

begin insert

(2) The attendance hours generated by credit courses shall be
funded at the marginal credit rate determined pursuant to
paragraph (2) of subdivision (d) of Section 84750.5. The
attendance hours generated by noncredit courses shall be funded
at the noncredit rate pursuant to paragraph (3) of subdivision (d)
of Section 84750.5. The attendance hours generated by instruction
in career development and college preparation shall be funded at
the rate determined pursuant to paragraph (4) of subdivision (d)
of Section 84750.5.

end insert begin insert

(b) (1) A community college district shall not claim, for
purposes of state apportionments under this section, a class for
which either of the following applies:

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(A) The district receives full compensation for its direct
education costs for the conduct of the class from a public or private
agency, individual, or group of individuals.

end insert begin insert

(B) The district has a contract or instructional agreement, or
both, for the conduct of the class with a public or private agency,
individual, or group of individuals that has received from another
source full compensation for the costs the district incurs under
that contract or instructional agreement.

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(2) In reporting a claim for apportionment to the Chancellor
of the California Community Colleges under this section, the
district shall report any partial compensation it receives from the
sources described in subparagraphs (A) and (B) of paragraph (1)
during the period for which the claim is made. The chancellor
shall subtract the amount of any partial compensation received
from the total apportionment to be paid.

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(c) This section shall not be construed as providing a source of
funds to shift, supplant, or reduce the costs incurred by the
Department of Corrections and Rehabilitation in providing inmate
education programs.

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(b)  Notwithstanding any other provision of law, no funds for
inmate education programs provided pursuant to this section shall
be considered as part of the base revenues for community college
districts in computing apportionments as prescribed in regulations
of the board of governors. When computing apportionments for
districts that provided inmate education programs in the 1994-95
fiscal year, the student workload measures generated and revenues
received for that year shall be added to their noncredit base revenue
and noncredit base workload measures for the following year.

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SECTION 1.  

Article 3 (commencing with Section 14030) is
added to Chapter 3 of Division 7 of the Unemployment Insurance
Code, to read:

 

Article 3.  Economically Impacted Area Loan Repayment
Program

 

14030.  

This article shall be known as the Economically
Impacted Area Loan Repayment Program. It shall be administered
by the board and shall provide for the repayment of business school
loans of participants who satisfy its requirements.

14032.  

For purposes of this article:

(a) “Economically impacted area” means a local workforce
investment area that, as established by the board, has a monthly
nonseasonally adjusted unemployment rate that is at least two
percentage points higher than the state average for 12 consecutive
months.

(b) “Fund” means the Economically Impacted Area Loan
Repayment Program Fund.

(c) “Program” means the Economically Impacted Area Loan
Repayment Program established pursuant to this article.

(d) “Qualifying small business” means a business to be founded
by the recipient of the program within an economically impacted
area that will employ residents of the economically impacted area
and meet other requirements as established by the board.

(e) “Selection committee” shall be determined by the board.

14034.  

(a) To be eligible to participate in the program, a person
shall agree in writing prior to completing an accredited business
school based in the United States to establish a qualifying small
business and employ residents of an economically impacted area.

(b) Leaves of absence during service obligation established
pursuant to subdivision (a) shall be permitted for serious illness,
pregnancy, or other natural causes. The selection committee shall
develop a process for determining the maximum permissible length
of an absence, the maximum permissible leaves of absences and
the process for reinstatement.

(c) The maximum allowable amount of loan repayment shall
be one hundred five thousand dollars ($105,000). These moneys
shall be distributed over the course of three years following the
founding of the qualified small business. The distribution of funds
shall increase over the course of operating the business and shall
be structured to ensure that at least 45 percent of the total
repayment award is distributed upon completion of the third year.

(d) If a program participant does not complete the service
obligation pursuant to the contractual agreement between the board
and the participant, the board shall recover the funds awarded plus
interest.

(e) The selection committee shall develop guidelines to select
loan repayment recipients only upon receipt of donations sufficient
to cover the costs of developing the guidelines.

(f) The board, in consultation with the selection committee,
shall develop a process for outreach to potentially eligible
participants.

14036.  

The Economically Impacted Area Loan Repayment
Program Fund is hereby established. The fund shall consist of
private moneys donated to the program for deposit into the fund
and any interest that accrues on those moneys.

(b) Moneys in the fund shall be used to fund loan repayment
pursuant to agreements made with recipients and as follows:

(1) Repayment shall not exceed one hundred five thousand
dollars ($105,000) per recipient.

(2) Repayment shall not exceed the amount of the educational
expenses incurred by the recipient.

(c) Moneys in the fund, upon appropriation by the Legislature,
shall be used for the purposes of this article.

(d) Moneys in the fund shall be used to pay for the cost of
administering the program and for any other purpose authorized
by this article. The cost of administering the program shall not
exceed 10 percent of the total appropriation for the program.

14038.  

This article shall be implemented only to the extent
that the fund contains sufficient moneys to effectuate the purposes
of the article as determined by the board.

end delete