BILL NUMBER: AB 1271 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 6, 2014
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Bonta
FEBRUARY 22, 2013
An act to add Article 3 (commencing with Section 14030)
to Chapter 3 of Division 7 of the Unemployment Insurance Code,
relating to workforce development. amend Section 8481
0.5 of the Education Code, relating to community colleges.
LEGISLATIVE COUNSEL'S DIGEST
AB 1271, as amended, Bonta. Workforce development.
Community colleges: inmate education programs:
computation of apportionments.
(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.
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.
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.
(2) Existing law provides for the method of computing
apportionments for purposes of these inmate education programs.
This bill would make revisions to that method of computation.
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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 84810.5 of the
Education Code is amended to read:
84810.5. (a) Notwithstanding open (1)
Open course provisions in statute or
regulations of the board of governors, the
governors shall be waived for a governing board of a community
college district that provides classes for inmates of any
a city, county, or city and county jail, road
camp, farm for adults, or state or federal correctional
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. 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.
(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.
(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:
(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.
(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.
(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.
(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.
(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.
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.