BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 173
                                                                  Page  1

          Date of Hearing:   August 14, 2013

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                      SB 173 (Liu) - As Amended:  August 8, 2013

           SENATE VOTE  :   36-1
           
          SUBJECT  :   Education funding: adult health and safety education

           SUMMARY  :   Establishes guidelines and recommendations for adult  
          education programs in the areas of assessment, performance  
          accountability, and teacher requirements; and eliminates  
          specified classes and courses authorized to be funded from the  
          adult education fund and California Community Colleges (CCC)  
          adult education noncredit apportionments.  Specifically,  this  
          bill  :   

          1)Requires the California Department of Education (CDE), in  
            conjunction with the CCC Chancellor's Office (CCCCO), to  
            coordinate and issue assessment policy guidelines regarding  
            assessments to be used by school districts and community  
            college districts for purposes of placement in adult education  
            courses.

          2)Requires the CCCCO and the CDE to do the following:

             a)   Jointly establish and implement a comprehensive  
               performance accountability system for adult education  
               courses; and, 

             b)   Develop guidelines and procedures for all adult  
               education funded providers for assessment, evaluation, and  
               data collection to document participant outcomes and  
               placement and other performance measures they deem  
               appropriate.  Specifies that performance measures may  
               include receipt of a secondary school diploma or its  
               recognized equivalent, placement in a postsecondary  
               educational institution, training, and employment.   
               Specifies that to the extent possible, these performance  
               measures shall be consistent with those required and  
               implemented pursuant to the federal Workforce Investment  
               Act (WIA) of 1998, Title II, Adult Education and Family  
               Literacy Act.  Requires all funded programs to annually  
               submit demographic and other student-level outcome  








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               information.

          3)Defines "chancellor's office" as the Office of the Chancellor  
            of the CCC, and "department" to mean the CDE.

          4)Removes, as of July 1, 2015, the following classes from the  
            list of authorized classes and courses offered by school  
            districts and county superintendent of schools for  
            apportionment purposes from the adult education fund:

             a)   Adult programs in parenting, including parent  
               cooperative preschools, and classes in child growth and  
               development, parent-child relationships, and parenting;

             b)   Adult programs for older adults;

             c)   Adult programs in home economics; and, 

             d)   Adult programs in health and safety education.  

          5)Specifies that nothing in the bill shall limit the authority  
            of a school district to offer adult education programs and  
            course for older adults, in health and safety education, or  
            programs in parenting, or both, provided that those programs  
            or courses are funded through alternative funding sources,  
            including fees, if the school district is authorized to charge  
            fees for these purposes.

          6)Specifies that for purposes of this bill "alternative funding  
            sources" include any sources of state or nonstate funding  
            other than funding from a state apportionment as defined;  
            defines "state apportionment" as funds received pursuant to  
            Budget Act appropriations for adult education, but does not  
            include funds received pursuant to Budget Act appropriations  
            from other state or nonstate funding sources or the revenue  
            limit apportionment made pursuant to Article 2 (commencing  
            with §42238) of Chapter 7.

          7)Authorizes the governing board of a community college district  
            to charge a fee for classes it offers, except for classes in  
            English and citizenship in order to ensure that community  
            college districts (CCD) have the capacity to meet the demand  
            for adult education courses for recent immigrants.  Specifies  
            that any CCD that chooses to charge a fee shall report the  
            amount of the fee, the number of classes, and enrollment in  








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            those classes to the CCCCO.  Requires the CCCCO to make the  
            information available to the Legislative Analyst's Office  
            (LAO).  Requires the LAO to provide a summary and analysis of  
            the reported information to the Assembly Budget, Education and  
            Higher Education Committees, and the Senate Budget and Fiscal  
            Review and Education Committees by January 1, 2016.

          8)Removes, as of July 1, 2015,the following noncredit adult  
            education courses and classes as eligible classes for state  
            apportionment funding:

             a)   Parenting, including parent cooperative preschools,  
               classes in child growth and development and parent-child  
               relationships;

             b)   Education programs for older adults; 

             c)   Education programs for home economics; and,

             d)   Health and safety education.

          9)Specifies that nothing in this bill shall limit the authority  
            of a CCD to offer adult education programs and courses for  
            older adults, in health and safety education or programs in  
            parenting, or both, provided that those programs or courses  
            are funded through alternative funding sources, including  
            fees, if the CCD is authorized to charge fees for these  
            purposes.

          10)Specifies that for purposes of this bill "alternative funding  
            sources" include any sources of state or nonstate funding  
            other than funding from a state apportionment as defined;  
            defines "state apportionment" as funds received pursuant to  
            Budget Act appropriations for adult education, but does not  
            include funds received pursuant to Budget Act appropriations  
            from other state or nonstate funding sources.  

          11)Requires, by July 1, 2015, the Commission on Teacher  
            Credentialing (CTC) and the Academic Senate for CCC to meet to  
            review their current requirements for noncredit adult  
            education and adult education instructors, and develop and  
            submit recommendations to the appropriate policy and fiscal  
            committees of the Legislature for modifying or establishing  
            reciprocity standards for instructors of adult education  
            courses. 








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          12)Expresses that it is the intent of the Legislature to  
            evaluate the performance accountability system established in  
            this bill and to consider allocating base adult education  
            funds and noncredit adult education funds to providers on the  
            basis of a combination of enrollment and performance in  
            courses offered. 

           EXISTING LAW  :

          1)Authorizes both the CCC and K-12 systems to offer and receive  
            state funding for adult education courses (Education Code  
            §41976 and §84757).

          2)Authorizes the following classes and courses to be offered by  
            the school districts and county superintendent of schools for  
            apportionment purposes from the adult education fund and  
            prohibits state apportionment to be made for any course or  
            class not specified in law:

             a)   Adult programs in parenting, including parent  
               cooperative preschools, and classes in child growth and  
               development, parent-child relationships, and parenting;

             b)   Adult programs in elementary and secondary basic skills  
               and other courses and classes required for the high school  
               diploma; 

             c)   Adult education programs in English as a second  
               language;

             d)   Adult education programs for immigrant eligible for  
               educational services in citizenship, English as a second  
               language, and workforce preparation classes in the basic  
               skills of speaking, listening, reading, writing,  
               mathematics, decisionmaking and problem solving skills, and  
               other classes required for preparation to participate in  
               job specific technical training;

             e)   Adult education programs for adults with disabilities;

             f)   Adult short-term career technical education programs  
               with high employment potential;

             g)   Adult programs for older adults;








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             h)   Adult education programs for apprentices;

             i)   Adult programs in home economics; and,

             j)   Adult programs in health and safety education (EC  
               §41976).

          3)Prohibits the local governing board of a CCD maintaining a  
            noncredit course from requiring an adult enrolled in such a  
            course to pay nonresident tuition or any fee or charge of any  
            kind for a class in English and citizenship for foreigners, a  
            class in an elementary subject, a class designated as granting  
            high school credit to an individual without a high school  
            diploma or other adult basic education programs and courses,  
            as specified (EC §76380).

          4)Authorizes a school district governing board to require a fee  
            of an adult enrolled in a class for adults and prohibits the  
            total of the fees required and revenues derived from average  
            daily attendance from exceeding the estimated cost of  
            maintaining such classes.  Current law also prohibits the  
            imposition of a charge of any kind for a class in English and  
            citizenship or a class in an elementary subject, nor for any  
            class which is designated as granting high school credit when  
            the class is taken by a person who does not hold a high school  
            diploma.  To note: for a class in English and citizenship, a  
            fee may be charged only until July 1, 2015 (EC §52612).

          5)Prohibits the CCC from requiring an adult enrolled in a  
            noncredit course to pay nonresident tuition or any fee or  
            charge of any kind for a class in English and citizenship for  
            foreigners, a class in an elementary subject, a class  
            designated by the governing board as a class for which high  
            school credit is granted when the class is taken by a person  
            who does not hold a high school diploma, or any class offered  
            by a CCD pursuant to Sections 8531, 8532, 8533, or 8534 (EC  
            §76380).

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, savings in excess of $26 million from the elimination  
          of the specified courses and potentially significant up-front  
          costs and ongoing workload for the CCCCO and the CDE to meet the  
          coordination and reporting requirements.









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           COMMENTS  :   To note:  this measure passed out of the Assembly  
          Education Committee with a 6-0 vote on June 26, 2013.

           Background  .   Adult education in California is part of a large,  
          complex, and diverse multi-provider system.  It is a vital and  
          integral part of the larger educational system that provides  
          adults with the skills and education that enable them to earn a  
          high school diploma or a general educational development (GED)  
          certificate, become American citizens, acquire specific job  
          skills, learn English, and/or become independent and productive  
          parents and members of their community.  

           Adult Education and Community College Noncredit  .  Adult  
          education instruction is offered primarily at adult schools and  
          community colleges.  Some programs are also offered at community  
          based organizations, libraries, correctional facilities, and the  
          California Conservation Corps.  California adult education  
          schools offer the following ten programs:

          1)Adult Basic Education;

          2)English as a Second Language;

          3)High School Diploma or Adult Secondary Education, including  
            GED certification;

          4)Citizenship Preparation; 

          5)Career Technical Education;

          6)Adults with Disabilities;

          7)Health and Safety;

          8)Parent Education;

          9)Home Economics; and,

          10)Courses for Older Adults.

           State apportionment  .  The majority of funding for adult  
          education and community college noncredit comes from state  
          apportionment.  The state provides approximately 90 percent of  
          the total funding for adult education and community college  
          noncredit programs.  State apportionment funds are distributed  








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          to adult schools through average daily attendance.  Funding for  
          community college noncredit is based upon a formula per Full  
          Time Equivalent Student (FTES).  The remaining financing,  
          approximately 10 percent, is provided by federal funds.
          
           Recommend changes in state funded adult education  .  In the last  
          several years various reports have been published that have  
          recommended that the state re-evaluate its current adult  
          education structure.

          In December 1998, the Joint Board Task Force on Noncredit and  
          Adult Education (a joint task force comprised of the CCC Board  
          of Governors and the California State Board of Education),  
          published "Noncredit and Adult Education:  Challenges,  
          Opportunities, Changes."   The report describes in detail local  
          and state activities required to implement the following 12  
          recommendations:  1) clarify joint authorization to offer  
          noncredit and adult education; 2) create a formal structure for  
          joint development and implementation of policy for noncredit and  
          adult education; 3) develop strategies for assuring student  
          success; 4) redistribute unused existing resources; 5) encourage  
          districts to make fair share distributions; 6) determine the  
          cost of implementing endorsed changes; 7) equalize reimbursement  
          rates within and between segments; 8) finalize and distribute  
          program standards; 9) develop a coordinated data system;10)  
          clarify scope of authorized instructional categories; 11) permit  
          reimbursement for work-based education; and, 12) establish  
          reciprocity for instructors of noncredit and adult education.

          In April 2003, the California Senate Office of Research (SOR)  
          released, "Adult Education, Will it Meet the Challenges of the  
          Future."  SOR found that state funded adult education programs  
          provide a vast array of services through multiple programs with  
          inconsistent indicators of program outcomes.  As demand for  
          adult education services continues to grow and available  
          resources are increasingly limited, policymakers and program  
          operators should explore ways to deliver services more  
          efficiently, based on objective data.  The report suggest the  
          following policy changes:  1) that the state should clarify the  
          mission of adult education and re-focus its program offerings  
          around fewer key programs; 2) identify a clear delineation of  
          function between the two governing entities (CCCCO and CDE); 3)  
          collect integrated data that represents the system as a whole;  
          4) distribute fiscal resources equitably throughout the state;  
          5) restructure state governance and local service delivery; and,  








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          5) demonstrate the return on investment of adult education  
          programs.

          In December 2012, the LAO released, "Restructuring California's  
          Adult Education System."  The report gives the following policy  
          changes:  1) focus on the six instructional programs most  
          closely aligned with adult education's core mission; 2) clearly  
          distinguish between adult education and collegiate education; 3)  
          apply a consistent set of policies for faculty and students at  
          adult schools and community colleges; 4) create a funding  
          mechanism for adult education that promotes a coordinated system  
          centered around student access and success; and, 5) collect same  
          data on student enrollment and outcomes for both adult schools  
          and community colleges (this will link the respective systems).

           2013 Budget Act and budget trailer bill  .  In January, the  
          Governor proposed in his 2013-14 budget shifting the  
          coordination and administration of all adult education programs  
          to the CCC.  The K-12 adult education program would be  
          eliminated, but CCC could contract with school districts to  
          provide instruction.  Due to concerns about the timing and  
          structure of the proposal, the Governor's May revision of the  
          budget withdrew the proposal and instead maintains the current  
          system for two years while allocating $30 million for planning  
          grants awarded to regional consortia comprised of CCC and K-12  
          districts for the purpose of creating plans to integrate  
          existing programs and determine how best to serve adult students  
          within regions throughout the state.  The budget adopted by the  
          Legislature reduced the planning grants to $25 million and  
          adopted trailer bill language in AB 86 (Chapter 48, Statutes of  
          2013).   

          The trailer bill establishes the Adult Education Consortium  
          Program with the following features:

          1)Eligibility is limited to consortiums consisting of at least  
            one CCD and at least one school district within the boundaries  
            of a CCD.  Consortia may include other entities providing  
            adult education courses, such as correctional facilities,  
            other local public entities and community-based organizations.

          2)Planning grants must be used to create and implement a plan to  
            better provide adults in its region with all of the following:

             a)   Elementary and secondary basic skills, including classes  








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               requires for a high school diploma or high school  
               equivalency certificate.

             b)   Classes and courses for immigrants eligible for  
               educational services in citizenship and English as a second  
               language, and workforce preparation classes in basic  
               skills.

             c)   Education programs for adults with disabilities.

             d)   Short-term career technical education program with high  
               employment potential.

             e)   Programs for apprentices.

          3)The regional consortium plan shall include an evaluation of  
            existing levels and types of adult education programs in the  
            region, current needs, how the parties that make up the  
            consortium will integrate their programs to create seamless  
            transitions into postsecondary education or the workforce,  
            plans to address gaps identified in the current offerings and  
            needs, plans to employ approaches to accelerate a student's  
            programs toward his or her academic or career goals, plans to  
            collaborate in the provision of ongoing professional  
            development opportunities, and plans to leverage existing  
            regional structures, including local workforce investment  
            areas.  

          The CCC Chancellor and the CDE shall submit a joint status  
          report by March 1, 2014 and a final report by March 1, 2015.   
          The intent of the Governor is to provide some level of  
          additional funding to provide adult education services through  
          the regional consortia beginning in 2015-16.  The courses  
          allowed to be provided through the consortia are consistent with  
          the intent of this bill.  CCC and K-12 districts can continue to  
          offer their existing adult education programs separate from the  
          regional consortia.  CCCs may continue to earn revenue limit  
          funding, but because categorical funds are eliminated through  
          the Local Control Funding Formula, school districts choosing to  
          continue their adult education programs would do so using their  
          base funds.  

           Purpose of this bill  .  According to the author's office, this  
          bill is based on the December 2012 LAO report (see above).  The  
          author states, "This bill begins the implementation of  








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          programmatic changes necessary to better align the bifurcated  
          system of delivering adult education and non-credit adult  
          education courses, and to begin a shift towards a more rational  
          and coordinated funding approach for K-12 adult education and  
          CCC noncredit adult education programs in California."

          The two largest providers of adult education are school  
          districts and the CCC, with, according to the LAO, the majority  
          provided by the CCC (about 66% of FTES (525 hours of  
          instructional hours) in 2009-10).  The LAO argues that the two  
          systems have unclear lines of responsibility, an overly broad  
          mission, inconsistent state-level policies, lack of coordination  
          among providers, and limited student data, despite serving the  
          same student populations.  The December report suggests that the  
          system is in need of comprehensive restructuring.  

          The LAO suggests that while all classes have value, adult  
          education programs should focus on the knowledge and skills  
          needed to participate in civic life and workforce.
          
           Non state apportionment classes  .  This bill eliminates, as of  
          July 1, 2015, the authorization to use adult education  
          apportionments to offer the following course and classes:

          1)Parenting programs:  According to the CDE, these are classes  
            that promote the healthy development of children, high-quality  
            family relationships, and children's success in school.   
            Classes in this program help individuals and families meet the  
            challenges of daily living through health and financial  
            literacy to improve the quality of home and family life.   
            Examples of classes offered include "Parenting the newborn-14  
            month old," and "Parenting an elementary school age child."

          2)Older adult programs:  According to the CDE, these are classes  
            designed specially to deal with issues related to aging.   
            These classes provide intellectual, physical, financial, and  
            social stimulation and resources addressing the demands of a  
            growing and active older population.  Classes offered include  
            "Exercise and fitness", "Ceramics", and "Understanding and  
            using computers."

          3)Home economics programs:  These classes include "cooking",  
            "knitting", and "wood working".

          4)Health and safety education:  These classes include basic CPR  








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            and first aid, aerobics, and weight management.   

          According to the CCCCO, in 2008-09, the system wide enrollment  
                                                                 for these four programs was approximately 624,836, but in  
          2009-10 (the last year comprehensive data is available), the  
          system wide enrollment for these four programs was approximately  
          519,763.  Despite an overwhelming lack of data, there is  
          evidence that many CCDs and CCCs have moved many of the four  
          programs over from the noncredit side to 100 percent fee based  
          (also known as community or continuing education).   
          Additionally, there is at least one CCC that as of fall 2013  
          will have 100 percent of these four programs on the fee based  
          side.  Lastly, according to the CCCCO, for any current noncredit  
          course that may be moved over to the for-credit side, adult  
          education students who meet certain financial criteria would be  
          eligible for the CCC Board of Governors Fee Waiver, thus not  
          having to pay the current $46/unit for their course.

          Several organizations oppose the elimination of some or all of  
          these courses, expressing concerns that their elimination will  
          decrease access.  These organizations state that these classes  
          provide some adults a second chance and recent immigrants a  
          first chance at a quality education.  They also argue that  
          courses such as parenting education offer adults critical life  
          skills.  Others oppose the elimination of programs for older  
          adults.  

           Assessment  .  CCC and the K-12 adult schools use assessments for  
          enrollment and placements.  While the CCC is required to only  
          use assessment tools approved by the CCCCO for advisory purposes  
          and not for placement of students in classes, adult schools can  
          use any assessments they choose and can use them for minimum  
          qualifications to enroll in a class or to determine appropriate  
          class placement.  This bill directs the CDE, in conjunction with  
          the CCCCO to develop assessment policy guidelines to be used by  
          both systems for purposes of placement in CCC adult education  
          and K-12courses.  The bill is silent on whether the assessment  
          can be used to determine whether a student meets minimum  
          qualification for enrollment.  

           Performance accountability.   This bill requires the CCCCO and  
          the CDE to develop guidelines and procedures for all adult  
          education funded providers for assessment, evaluation and data  
          collection to document participant outcomes and placement, and  
          other performance measures they deem appropriate, such as  








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          whether the student received a secondary school diploma,  
          placement in a postsecondary educational institution, or became  
          employed.  

          Concerns have been expressed that this provision is unnecessary  
          and duplicative.  States that receive federal WIA Title II funds  
          are already required to collect performance data.  The state  
          received $91 million in 2011-12 to provide adult elementary and  
          secondary education and English as a second language classes.   
          The CDE allocates its share of funding to providers based on  
          performance points.   

          The CCCCO already has an in-depth data collection system that  
          was augmented by the Student Success Scorecard released in April  
          this year.  The scorecard was a recommendation of the Student  
          Success Task Force, enacted by SB 1143 (Liu), Chapter 409,  
          Statutes of 2010.  The scorecard provides performance data that  
          includes completion and persistence rates that can be broken  
          down by student demographics. 

          The committee may wish to consider directing the CCCCO and the  
          CDE to develop and issue policy guidelines regarding a  
          comprehensive performance accountability system for adult  
          education courses.

           Teacher qualifications  .  CCC adult education instructors are  
          required to have a bachelor or master's degree depending on the  
          type of course taught, while K-12 adult school teachers are  
          required to have a teaching credential.  The LAO believes that  
          adult education instructors should be able to teach in either  
          system.  Requiring a teaching credential limits a CCC  
          instructor's ability to teach in K-12 adult schools; the LAO  
          recommends eliminating the requirement for adult school teachers  
          to have a teaching credential.  This bill directs the Academic  
          Senate for the CCC and the CTC to review the requirements for  
          noncredit adult education and adult school instructors, and  
          develop and submit recommendations to the appropriate policy and  
          fiscal committees of the Legislature by July 1, 2015, for  
          modifying or establishing reciprocity standards for instructors  
          of adult education courses.

           Arguments in support  .  The Association of California School  
          Administrators states, "SB 173 recognizes that both school  
          districts and community colleges are critical to providing the  
          breadth of programs to educate and train adult students and is  








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          critical to all reform efforts. SB 173 restores the coordination  
          between the two systems to improve coordination and  
          collaboration statewide."

           Arguments in opposition  .  The Community College League of  
          California states, "SB 173 would significantly decrease access  
          for adult learners in California.  The reduction of the number  
          of courses that receive state funding will result in essential  
          courses becoming inaccessible to the community.  Adult education  
          programs offer adults a second chance, and many recent  
          immigrants a first chance to a quality education.  Additionally,  
          courses in such areas help adults learn critical life skills."
          
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of California School Administrators (based on prior  
          version of the bill)
          California Adult Education Administrators Association (based on  
          prior version of the bill)
          California Association of Area Agencies on Aging 
          California Council for Adult Education (based on prior version  
          of the bill)
          San Francisco Advisory Council to Aging and Adult Services 
           
            Opposition 
           
          AARP California (based on prior version of the bill)
          Age Well Senior Services (based on prior version of the bill)
          Association of California Community College Administrators  
          (based on prior version of the bill)
          Association of Community and Continuing Education (based on  
          prior version of the bill)
          California Commission on Aging (based on prior version of the  
          bill)
          California Community College Educators of Older Adults (based on  
          prior version of the bill)
          California Community College Independents (based on prior  
          version of the bill)
          California Federation of Teachers - unless amended (based on  
          prior version of the bill)
          California Park and Recreation Society (based on prior version  
          of the bill)
          California School Employees Association (based on prior version  








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          of the bill)
          California Teachers Association (based on prior version of the  
          bill)
          Chaffey College (based on prior version of the bill)
          Coast Community College District (based on prior version of the  
          bill)
          College of the Canyons (based on prior version of the bill)
          College of Marin (based on prior version of the bill)
          Community College League of California (based on prior version  
          of the bill)
          Congress of California Seniors - unless amended (based on prior  
          version of the bill)
          Faculty Association of California Community Colleges (based on  
          prior version of the bill)
          Fullerton College (based on prior version of the bill)
          Gray Panthers Association of California Networks (based on prior  
          version of the bill)
          Imperial Valley College (based on prior version of the bill)
          Los Rios Community College District (based on prior version of  
          the bill)
          Mendocino Community College District (based on prior version of  
          the bill)
          Merced College (based on prior version of the bill)
          Mira Costa Community College District (based on prior version of  
          the bill)
          Mt. San Antonio College (based on prior version of the bill)
          North Orange County Community College District (based on prior  
          version of the bill)
          Orange County Aging Services Collaborative (based on prior  
          version of the bill)
          Partners in Care Foundation (based on prior version of the bill)
          Rancho Santiago Community College District (based on prior  
          version of the bill)
          Rio Hondo Community College District (based on prior version of  
          the bill)
          Riverside Community College District (based on prior version of  
          the bill)
          San Diego Community College District (based on prior version of  
          the bill)
          San Francisco Community College District (based on prior version  
          of the bill)
          Santa Monica College (based on prior version of the bill)
          South Orange County Community College District (based on prior  
          version of the bill)
          State Center Community College District (based on prior version  








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          of the bill)
          The Gerontological Society of America (based on prior version of  
          the bill) 
          The Lucille and Edward R. Roybal Foundation - unless amended  
          (based on prior version of the bill)
          United Teachers Los Angeles (based on prior version of the bill)
          Yosemite Community College District (based on prior version of  
          the bill)
          Numerous Individuals (based on prior version of the bill)



           Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960