BILL NUMBER: SB 860	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 12, 2014

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 9, 2014

    An act relating to the Budget Act of 2014.  
An act to amend Sections 69432, 69432.7, 69433.6, 70022, 70023,
79200,   81821, 84321.6, 84750.5, 84751, 87482, 89295,
92493, 92494, 92495, 92495.5, and 92675 of, to amend the heading of
Article 5 (commencing with Section 79200) of Chapter 9 of Part 48 of
Division 7 of Title 3 of, to add Sections 79204, 79205, 79206, 79207,
79208, 79209, 84750.6, 84754.6, 89712, 90083, 92495.6, and 94102.1
to, to add Article 1.5 (commencing with Section 78220) to Chapter 2
of Part 48 of Division 7 of Title 3 of, to add Article 5 (commencing
with Section 89770) to Chapter 6 of Part 55 of Division 8 of Title 3
of, and to add Chapter 15 (commencing with Section 92985) to Part 57
of Division 9 of Title 3 of, the Education Code, to   amend
Sections 17581.7 and 68926.3 of the Government Code, to amend Section
13146 of the Health and Safety Code, and to amend Sections 10726 and
10742 of the Public Contract Code, relating to postsecondary
education, and making an appropriation therefor, to take effect
immediately, bill related to the budget. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 860, as amended, Committee on Budget and Fiscal Review.
 Budget Act of 2014.   Education finance:
education omnibus trailer bill.  
   (1) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program (Cal Grant Program), establishes the Cal Grant A and B
Entitlement Awards, the California Community College Transfer Cal
Grant Entitlement Awards, the Competitive Cal Grant A and B Awards,
the Cal Grant C Awards, and the Cal Grant T Awards under the
administration of the Student Aid Commission, and establishes
eligibility requirements for awards under these programs for
participating students attending qualifying institutions. Existing
law provides that a qualifying institution with a graduation rate of
30% or less for students taking 150% or less of the expected time to
complete degree requirements is ineligible for initial and renewal
Cal Grant awards, unless the institution has a 3-year cohort default
rate that is less than 10% and a graduation rate above 20% for
students taking 150% or less of the expected time to complete degree
requirements. Existing law sets the maximum Cal Grant A and B awards
for new recipients attending private nonprofit postsecondary
education institutions at $8,056 for the 2014-15 award year and each
award year thereafter.  
   This bill would specify eligibility criteria that, commencing with
the 2014-15 academic year, would apply to Cal Grant award recipients
who were determined to be ineligible for a renewal award because
they exceeded the maximum household income or asset level, or failed
to meet the minimum need threshold, as specified, but who
subsequently meet eligibility requirements for a Cal Grant award. The
bill would also increase from 10% to 15.5% the maximum allowable
3-year cohort default rate for an institution with a 20% to 30%
graduation rate for students taking no more than 150% of the expected
time to complete degree requirements to be eligible for Cal Grant
awards. The bill would increase the maximum Cal Grant A and B awards
for new recipients attending a private nonprofit postsecondary
institution, for the 2014-15 award year only, to $9,084.  
   (2) Existing law establishes the Student Aid Commission as the
primary state agency for the administration of state-authorized
student financial aid programs available to students attending all
segments of postsecondary education. Existing law establishes the
Middle Class Scholarship Program under the administration of the
Student Aid Commission. The program provides that, subject to an
available and sufficient appropriation, commencing with the 2014-15
academic year, an undergraduate student enrolled at the University of
California or the California State University is eligible for a
scholarship award that, combined with other publicly funded student
financial aid, is up to 40% of the amount charged to that student for
mandatory systemwide tuition in that fiscal year if the student
meets the following conditions: has an annual household income that
does not exceed $150,000; satisfies specified requirements for a Cal
Grant award; is a resident of this state or exempt from paying
nonresident tuition; files specified financial aid forms; makes
timely application or applications for publicly funded student
financial aid, as defined, for which he or she is eligible; and
maintains at least a 2.0 grade point average.  
   This bill would, among other things, specify that the scholarship
award under the Middle Class Scholarship Program, combined with other
federal, state, and institutionally administered grants and fee
waivers, would be for up to 40% of the systemwide tuition and fees.
The bill would require a recipient to be enrolled at least part-time,
and would require the recipient to be pursuing his or her first
undergraduate baccalaureate degree, unless he or she is enrolled in a
specified professional teacher preparation program. The bill would
also provide that minimum scholarship amount for any full-time
student who qualifies for a scholarship award of $1 is $90, and would
prohibit discrimination against part-time students in the selection
of award recipients.  
   (3) 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 authorizes the establishment of
community college districts under the administration of community
college governing boards, and authorizes these districts to provide
instruction at community college campuses throughout the state.
Existing law requires the governing board of each community college
district to prepare and submit to the Board of Governors of the
California Community Colleges a plan for capital construction for
community college purposes of the district, as specified. Existing
law requires a 5-year plan for capital construction to set out the
estimated capital construction needs of the district with reference
to specified elements, including enrollment projections for each
community college district, formulated by the Department of Finance
with the cooperation of each community college district.  
   This bill would make reference to certain of these specified
elements optional, requiring reference only to elements relating to
the current enrollment capacity of the district and the district
office, library, and supporting facility capacities. The bill would
also provide that enrollment projections, if used, would instead be
formulated with the cooperation of the Chancellor of the California
Community Colleges.  
   (4) Existing law requires the Board of Governors of the California
Community Colleges to adopt regulations providing for the payment of
apportionments to community college districts on a specified
schedule that includes a first principal apportionment to be
certified on or before February 20 of each year, and a 2nd principal
apportionment to be certified on or before June 25 of each year.
Existing law defers the drawing of those warrants, as specified.
Existing law appropriates $592,456,000 from the General Fund to the
board of governors, for expenditure during the 2014-15 fiscal year,
in satisfaction of specified moneys whose payment to the California
Community Colleges has been deferred.  
   This bill would, for purposes of calculations required by the
California Constitution, instead provide that $138,602,000,
$296,354,000, and $157,500,000 of the $592,456,000 appropriated to
the Board of Governors of the California Community Colleges for the
2014-15 fiscal year in satisfaction of deferred payments shall be
deemed General Fund revenues and included in the total allocations to
school districts and community college districts for the 2012-13,
2013-14, and 2014-15 fiscal years, respectively, as specified. This
bill would also provide for the deferral of $94,465,000 from June
2015 to July 2015, and would appropriate money in July 2015 to pay
for that deferred amount, which would be deemed General Fund revenues
and included in the total allocations to school districts and
community college districts for the 2015-16 fiscal year.  
   (5) Existing law provides for the California Work Opportunity and
Responsibility to Kids (CalWORKs) program under which each county
provides cash assistance and other benefits to qualified low-income
families and individuals. Existing law requires that, to the extent
that funding is provided in the annual Budget Act, a community
college shall receive funding for educational services provided to
CalWORKs recipients based on the number of CalWORKs recipients that
are enrolled at the community college and the scope and number of
programs that the college plans to offer to assist CalWORKs
recipients to obtain employment. Existing law also requires that,
prior to receiving funding, a community college shall submit to the
chancellor a Request for Application that contains a plan for
curriculum development or redesign, including participation by the
county welfare department to establish that the programs being
developed or redesigned will provide CalWORKs recipients with the
training and experience necessary to secure employment. Existing law
also provides that, to the extent that funding is provided in the
annual Budget Act, funds received by a community college for
curriculum development or redesign for CalWORKs recipients may be
expended for various purposes, including the development or redesign
of vocational curricula for CalWORKs recipients so that courses may
be offered as part of a short-term intensive program, including Open
Entry and Open Exit programs.  
   This bill would state that a community college district shall
receive funding for providing specified additional services to
current and, under certain condition, certain prior CalWORKs
recipients, including job placement, coordination with county welfare
offices and other local agencies, child care and workstudy,
instruction, postemployment skills training and related skills
training, and case management, as specified. The bill would require
the Chancellor of the California Community Colleges to develop an
equitable method for allocating funds under these provisions to all
community college districts, and to compile a report on the program
annually from specified information required to be provided by the
community college districts and colleges. By requiring certain
actions by community college districts, this bill would impose a
state-mandated local program.  
   (6) Existing law provides, in calculating each community college
district's revenue level each fiscal year, that the Board of
Governors of the California Community Colleges shall subtract, from
the total revenues owed, certain amounts, including certain amounts
received by certain provisions of existing law relating to
redevelopment that, for purposes of community college revenue levels,
are considered to be from property tax revenues.  
   This bill would, notwithstanding the required reduction, provide
that specified revenues received after April 15, 2014, April 15,
2015, and April 15, 2016, shall be counted as revenues received in
the 2014-15, 2015-16, and 2016-17 fiscal years, respectively. 

   (7) Existing law requires the Board of Governors of the California
Community Colleges to develop criteria and standards, in accordance
with specified statewide minimum requirements, for the purposes of
making the annual budget request for the California Community
Colleges to the Governor and the Legislature, and allocating state
general apportionment revenues. Those statewide minimum requirements
include, among other things, a requirement that the calculations of
each community college district's revenue level for each fiscal year
be based on specified criteria, with revenue adjustments being made
for increases or decreases in full-time equivalent students and for
other specified purposes.   
   This bill would require the Chancellor of the California Community
Colleges to develop, and the board of governors to adopt, a revised
apportionment growth formula for use commencing with the 2015-16
fiscal year. The bill would provide that the revised formula shall
support the primary missions of the segment, and shall be based on
certain factors, as specified, and would require the chancellor, on
or before October 15, 2015, and each year thereafter, to report to
the Legislature on certain matters related to the revised
apportionment growth formula. The bill would, notwithstanding certain
apportionment related provisions for the 2014-15 and 2015-16 fiscal
years, require the board of governors to provide the San Francisco
Community College District with revenues, as specified, if, on the
effective date of this bill, the board of governors finds that the
community college district or a campus of the community college
district is in imminent jeopardy of losing its accreditation, the
board of governors has exercised its authority pursuant to specified
provisions, and the institution is in compliance with a regulation
requiring it to be accredited by a specified agency. The bill would
require the board of governors to additionally provide the San
Francisco Community College District with revenues for the 2016-17
fiscal year under the same conditions applicable to the 2014-15 and
2015-16 fiscal years, but only if the Fiscal Crisis Management
Assistance Team makes a finding no sooner than April 1, 2016, that
the San Francisco Community College District is meeting or exceeding
specified fiscal benchmarks. 
   This bill would, among other things, require the chancellor, in
coordination with community college districts, to approve and
publicly post annual segmentwide and community college district
goals, and would require the chancellor, in coordination with
stakeholders, specified committees of the Legislature, and the
Department of Finance, to develop, and the board of governors to
adopt, a framework of indicators designed to measure and assess the
ongoing condition of a community college's operational environment in
specified areas. The bill would, subject to the availability of
funding in the annual Budget Act, require the board of governors and
the chancellor to assess the degree to which each community college
district is improving, as provided.   
   (8) Existing law, the Seymour-Campbell Student Success Act of
2012, provides that the purpose of the act is to increase California
community college student access and success by providing effective
core matriculation services of orientation, assessment and placement,
counseling, and other education planning services, and academic
interventions. The act specifies the responsibilities of students and
institutions in entering into the matriculation process, and
requires the Board of Governors of the California Community Colleges
to develop a formula for allocating funding for the Student Success
and Support Program that would be implemented under the act. 

   This bill would require, as a condition for receiving Student
Success and Support Program funding, that the governing board of each
community college district maintain a student equity plan, as
specified, and would require the chancellor to make an annual report
related to those plans. By adding to the duties of community college
districts, the bill would impose a state-mandated local program.
 
   (9) Existing law establishes the California State University,
under the administration of the Trustees of the California State
University, and the University of California, administered by the
Regents of the University of California, as 2 of the segments of
public postsecondary education in the state. Existing law authorizes
the California State University and the University of California to
each issue revenue bonds, secured by a specified pledge of revenues.
Existing law authorizes the University of California to pledge its
annual General Fund support appropriation, less certain amounts, to
secure the payment of its general revenue bonds or commercial paper
associated with the general revenue bond program. Existing law
authorizes the University of California to fund debt service for
capital expenditures, as defined, from its General Fund support
appropriation, as specified. Existing law also authorizes the
University of California to fund pay-as-you-go capital outlay
projects from its General Fund support appropriation, as specified.
Existing law, for purposes of these provisions, requires the
University of California to obtain approval from the Department of
Finance pursuant to specified procedures.  
   This bill would authorize the California State University to
pledge its annual General Fund support appropriation, less certain
amounts, to secure the payment of its debt obligations issued by the
Trustees pursuant to the State University Revenue Bond Act of 1947.
The bill would authorize the California State University to fund debt
service for capital expenditures, as defined, from its General Fund
support appropriation, as specified. The bill would authorize the
California State University to secure bonds for capital expenditures
and certain projects with revenues received in accordance with these
provisions, as specified. The bill would provide that "capital
expenditures" and "capital outlay projects" shall include the cost to
design, construct, or equip energy conservation projects. The bill
would also authorize the California State University to fund
pay-as-you-go capital outlay projects from its General Fund support
appropriation, as specified. The bill would, for purposes of these
provisions, provide procedures for the California State University
to, and would revise the procedures for the University of California
to, obtain approval from the Department of Finance, as specified.
 
   (10) Existing law requires the California State University and the
University of California to report, by March 1 of each year, on
specified performance measures, including various calculations of
graduation rates and amounts spent per degree, for the preceding
academic year.  
   This bill would revise those provisions to, among other things,
extend the due date for the report to March 15, add a 4-year transfer
graduation rate as a performance measure for the California State
University, and limit transfer student performance measures to
transfer students from the California Community Colleges.  
   (11) Notwithstanding existing law that imposes greater limits on
temporary employment of faculty, existing law provides that a person
serving as full-time clinical nursing faculty or as part-time
clinical nursing faculty may be employed by any one district for up
to 4 semesters or 6 quarters within any period of 3 consecutive
academic years between July 1, 2007, to June 30, 2014, inclusive.
 
   This bill would extend that authorization to December 31, 2015.
 
   (12) Existing law authorizes the trustees by rule to require all
persons to pay fees, rents, deposits, and charges for services,
facilities, or materials provided by the trustees to those persons.
Existing law prohibits specified California State University
campus-based mandatory fees from being reallocated without an
affirmative vote of the majority of the members of either the student
body or a specified campus fee advisory committee voting on the fee
reallocation, unless the vote that established the fee authorizes an
alternative or automatic reallocation mechanism for that fee. 

   This bill would prohibit a campus or the Chancellor of the
California State University from approving a student success fee, as
defined, before January 1, 2016. This bill would require the
chancellor to conduct a review of the trustees' fee policy related to
student success fees, submit recommended changes to the fee policy
to the trustees, consider specified information in conducting that
review and in preparing his or her recommended changes to the policy,
and submit a report regarding those proposed changes to the
Department of Finance and the appropriate fiscal and policy
committees of the Legislature, on or before February 1, 2015. 

   (13) Existing law establishes various health research grant
programs, including the Cancer Research Program, the Breast Cancer
Research Program, and the Spinal Cord Injury Research Program. 

   This bill would enact the California Blueprint for Research to
Advance Innovations in Neuroscience (Cal-BRAIN) Act of 2014, and
would request the Regents of the University of California to
establish the Cal-BRAIN program to leverage California's research
assets and the federal BRAIN Initiative's funding opportunities to
accelerate the development of brain mapping techniques, including the
development of new technologies, in order to achieve certain goals.
The bill would additionally request the University of California to
convene certain stakeholders to develop a governing structure for the
Cal-BRAIN program designed to do specified tasks, and to provide
information about the program through an Internet Web site. These
provisions would only be implemented to the extent that adequate
funding is appropriated to the University of California, as
specified.  
   (14) Existing law, the California Educational Facilities Authority
Act, authorizes the California Educational Facilities Authority to,
among other things, hold or invest in student loans, create pools of
student loans, and sell bonds bearing interest on a taxable or
tax-exempt basis or other interests backed by the pools of student
loans. Existing law, for purposes of the act, defines "student loan"
as a loan having terms and conditions acceptable to the authority
that is made to finance or refinance the costs of attendance at a
private college or public college and that is approved by the
authority, if the loan is originated pursuant to a program that is
approved by the authority. Existing law establishes the Assumption
Program of Loans for Education, administered by the Student Aid
Commission, under which any person enrolled in a eligible institution
of postsecondary education or any person who agrees to participate
in a teacher trainee or teacher internship program, is eligible to
enter into an agreement for loan assumption, as specified.  

   This bill would, for purposes of the California Educational
Facilities Authority Act, provide that "student loan" may also mean a
loan assumption pursuant to the Assumption Program of Loans for
Education.  
   (15) Under the California Constitution, whenever the Legislature
or a state agency mandates a new program or higher level of service
on any local government, including a school district and a community
college district, the state is required to provide a subvention of
funds to reimburse the local government, with specified exceptions.
Existing law makes certain funds appropriated in the annual Budget
Act for reimbursement of the cost of a new program or increased level
of service of an existing program mandated by statute or executive
order available as a block grant to school districts, charter
schools, county offices of education, and community college
districts, to support specified state-mandated local programs.
Existing law provides that a school district, charter school, county
office of education, or community college district that submits a
letter of intent to the Superintendent of Public Instruction or the
Chancellor of the California Community Colleges, as appropriate, and
receives this block grant funding is not eligible to submit a claim
for reimbursement for those specified mandated programs for the
fiscal year for which the block grant funding is received.  

   This bill would revise the list of programs that are authorized
for block grant funding in lieu of program-specific reimbursement.
 
   (16) Existing law imposes a filing fee of $605 to file a notice of
appeal in a civil case. Existing law requires, until January 1,
2015, that $65 of this fee be deposited into the California State Law
Library Special Account for the support of the California State Law
Library.  
   This bill would extend the operation of these provisions until
January 1, 2020.  
   (17) Existing law allocates responsibility for enforcement of
building standards adopted by the State Fire Marshal and published in
the California Building Standards Code relating to fire and panic
safety and other regulations of the State
                Fire Marshal, as provided. Existing law provides that
the State Fire Marshal shall enforce the building standards and
other regulations of the State Fire Marshal on all University of
California campuses and properties administered or occupied by the
University of California, and, for each university campus or
property, authorizes the State Fire Marshal to delegate that
responsibility to a person of his or her choice.  
   This bill would also require the State Fire Marshal to enforce the
building standards and other regulations of the State Fire Marshal
on all California State University campuses and properties
administered or occupied by the California State University. 

   (18) Existing authorizes the Trustees of the California State
University to receive bids for the construction of several public
works projects at one campus of the California State University as a
single project. Existing law requires, when it appears that the
estimated contract price will exceed $15,000, that public notice to
bidders be given by publication, as specified.  
   This bill would delete the one-campus restriction on taking bids
for several public works as a single project. The bill would also
authorize notice by publication electronically on the California
State University's Internet Web site.  
   (19) Item 6870-139-8080 of the Budget Act of 2013, as added by
Chapter 20 of the Statues of 2013, appropriated $47,000,000 to the
Board of Governors of the California Community Colleges for local
assistance, payable from the Clean Energy Job Creation Fund. 

   This bill would reappropriate the balances of those amounts to the
board of governors, for the same purposes, and would provide that
those funds would be available for encumbrance until June 30, 2018.
 
   (20) This bill would require amounts to be determined by the
Director of Finance to be appropriated, on or before June 30, 2015,
from the General Fund to the Board of Governors of the California
Community Colleges in the event that specified revenues distributed
to community colleges are less than estimated amounts reflected in
the Budget Act of 2014.  
   (21) This bill would require amounts to be determined by the
Director of Finance to be appropriated, on or before June 30, 2015,
from the General Fund to the Board of Governors of the California
Community Colleges in augmentation of a certain schedule of an item
of the Budget Acts of 2012 and 2013, and would require these funds to
only be available for revenues distributed to a net excess tax
community college district, as determined by the Director of Finance.
 
   (22) This bill would authorize the University of California to use
General Fund appropriations made pursuant to specified sections of
the Education Code for the Tolman Hall Seismic Replacement Building
project at the University of California, Berkeley, campus, as
described.  
   (23) This bill would make conforming changes, delete obsolete
provisions, correct cross-references, and make other nonsubstantive
changes.  
   (24) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   (25) Funds appropriated by this bill would be applied toward the
minimum funding requirements for school districts and community
college districts imposed by Section 8 of Article XVI of the
California Constitution.  
   (26) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 69432 of the  
Education Code   is amended to read: 
   69432.  (a) Cal Grant Program awards shall be known as "Cal Grant
A Entitlement Awards," "Cal Grant B Entitlement Awards," "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."

   (b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act. Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act.
   (c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the maximum
tuition award amounts for Cal Grant A and B awards for students
attending private for-profit and nonprofit postsecondary educational
institutions shall be as follows:
   (A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.
   (B) For the  2013-14   2014-15  award
year, nine thousand eighty-four dollars ($9,084) for new recipients
attending private nonprofit postsecondary educational institutions.
For the  2014-15   2015-16  award year and
each award year thereafter, eight thousand fifty-six dollars ($8,056)
for new recipients attending private nonprofit postsecondary
educational institutions.
   (2) The renewal award amount for a student whose initial award is
subject to a maximum award amount specified in this subdivision shall
be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.
   (3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same maximum
tuition award amounts as are set forth in subparagraph (B) of
paragraph (1).
   SEC. 2.    Section 69432.7 of the  
Education Code   is amended to read: 
   69432.7.  As used in this chapter, the following terms have the
following meanings:
   (a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
   (b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
   (c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
   (d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
   (e) "Commission" means the Student Aid Commission.
   (f) "Enrollment status" means part- or full-time status.
   (1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
   (2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
   (g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
   (h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
   (i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
   (j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
   (k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by the
commission for the 2001-02 academic year, which shall be set pursuant
to the following income and asset ceiling amounts:
         CAL GRANT PROGRAM INCOME CEILINGS


+--------------------+--------------+--------------+
|                        Cal Grant                 |
|                           A,                     |
|                        C, and T      Cal Grant B |
+--------------------+--------------+--------------+
|Dependent and Independent students with           |
|dependents*                                       |
+--------------------+--------------+--------------+
|Family Size                                       |
+--------------------+--------------+--------------+
|  Six or more             $74,100        $40,700  |
+--------------------+--------------+--------------+
|  Five                    $68,700        $37,700  |
+--------------------+--------------+--------------+
|  Four                    $64,100        $33,700  |
+--------------------+--------------+--------------+
|  Three                   $59,000        $30,300  |
+--------------------+--------------+--------------+
|  Two                     $57,600        $26,900  |
+--------------------+--------------+--------------+
|Independent                                       |
+--------------------+--------------+--------------+
|  Single, no              $23,500        $23,500  |
|dependents                                        |
+--------------------+--------------+--------------+
|  Married                 $26,900        $26,900  |
+--------------------+--------------+--------------+


   *Applies to independent students with dependents other than a
spouse.
          CAL GRANT PROGRAM ASSET CEILINGS


+----------------------+-------------+-------------+
|                         Cal Grant                |
|                             A,                   |
|                          C, and T    Cal Grant B |
+----------------------+-------------+-------------+
|Dependent**                $49,600       $49,600  |
+----------------------+-------------+-------------+
|Independent                $23,600       $23,600  |
+----------------------+-------------+-------------+


   **Applies to independent students with dependents other than a
spouse.


   The commission shall annually adjust the maximum household income
and asset levels based on the percentage change in the cost of living
within the meaning of paragraph (1) of subdivision (e) of Section 8
of Article XIII B of the California Constitution. The maximum
household income and asset levels applicable to a renewing recipient
shall be the greater of the adjusted maximum household income and
asset levels or the maximum household income and asset levels at the
time of the renewing recipient's initial Cal Grant award. For a
recipient who was initially awarded a Cal Grant for an academic year
before the 2011-12 academic year, the maximum household income and
asset levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal recipient
who qualifies to be considered under the simplified needs test
established by federal law for student assistance shall be presumed
to meet the asset level test under this section. Prior to disbursing
any Cal Grant funds, a qualifying institution shall be obligated,
under the terms of its institutional participation agreement with the
commission, to resolve any conflicts that may exist in the data the
institution possesses relating to that individual.
   (  l  ) (1) "Qualifying institution" means an institution
that complies with paragraphs (2) and (3) and is any of the
following:
   (A) A California private or independent postsecondary educational
institution that participates in the Pell Grant Program and in at
least two of the following federal campus-based student aid programs:

   (i) Federal Work-Study.
   (ii) Perkins Loan Program.
   (iii) Supplemental Educational Opportunity Grant Program.
   (B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
   (C) A California public postsecondary educational institution.
   (2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
   (B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
   (3) (A) The commission shall certify by October 1 of each year the
institution's latest three-year cohort default rate and graduation
rate as most recently reported by the United States Department of
Education.
   (B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the institution, except as provided in
subparagraph (F).
   (C) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and every
year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the institution, except as provided in subparagraph
(F).
   (D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or (G), as applicable.
   (ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or (G), as applicable, and the correction
or revision results in the institution's three-year cohort default
rate or graduation rate satisfying those requirements, that
institution shall immediately regain its eligibility for the academic
year to which the corrected or revised three-year cohort default
rate or graduation rate would have been applied.
   (E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally eligible
to participate in the Cal Grant Program until a three-year cohort
default rate or graduation rate has been reported for the institution
by the United States Department of Education.
   (F) (i) An institution that is ineligible for initial and renewal
Cal Grant awards at the institution under subparagraph (B), (C), or
(G) shall be eligible for renewal Cal Grant awards for recipients who
were enrolled in the ineligible institution during the academic year
before the academic year for which the institution is ineligible and
who choose to renew their Cal Grant awards to attend the ineligible
institution. Cal Grant awards subject to this subparagraph shall be
reduced as follows:
   (I) The maximum Cal Grant A and B awards specified in the annual
Budget Act shall be reduced by 20 percent.
   (II) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section 69435.

   (ii) This subparagraph shall become inoperative on July 1, 2013.
   (G) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
graduation rate of 30 percent or less for students taking 150 percent
or less of the expected time to complete degree requirements, as
reported by the United States Department of Education and as
certified by the commission pursuant to subparagraph (A), shall be
ineligible for initial and renewal Cal Grant awards at the
institution, except as provided for in subparagraphs (F) and (I).
   (H) Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education for
the academic year two years before the year in which the commission
is certifying the three-year cohort default rate or graduation rate
pursuant to subparagraph (A).
   (I) Notwithstanding subparagraph (G), an otherwise qualifying
institution with a three-year cohort default rate that is less than
 10   15.5 percent and a graduation rate
above 20 percent for students taking 150 percent or less of the
expected time to complete degree requirements, as certified by the
commission pursuant to subparagraph (A), shall  remain
  be  eligible for initial and renewal Cal Grant
awards at the institution through the 2016-17 academic year.
   (J) The commission shall do all of the following:
   (i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or (G) that the institution
is ineligible for initial Cal Grant awards for the academic year for
which the student received an initial Cal Grant award.
   (ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or (G) that the student's Cal
Grant award will be reduced by 20 percent, or eliminated, as
appropriate, if the student attends the ineligible institution in an
academic year in which the institution is ineligible.
   (iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial
and renewal Cal Grant awards at the institution under subparagraph
(C) or (G) with a complete list of all California postsecondary
educational institutions at which the student would be eligible to
receive an unreduced Cal Grant award.
   (K) By January 1, 2013, the Legislative Analyst shall submit to
the Legislature a report on the implementation of this paragraph. The
report shall be prepared in consultation with the commission, and
shall include policy recommendations for appropriate measures of
default risk and other direct or indirect measures of quality or
effectiveness in educational institutions participating in the Cal
Grant Program, and appropriate scores for those measures. It is the
intent of the Legislature that appropriate policy and fiscal
committees review the requirements of this paragraph and consider
changes thereto.
   (m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards.
   SEC. 3.    Section 69433.6 of the  
Education Code   is amended to read: 
   69433.6.  (a) Cal Grant A awards and Cal Grant B awards may be
renewed for a total of the equivalent of four years of full-time
attendance in an undergraduate program provided that minimum
financial need as defined in paragraph (3) of subdivision (b) of
Section 69432.9 continues to exist. Commencing with the 2001-02
academic year, the total number of years of eligibility for grants
pursuant to this section shall be based on the student's educational
level in his or her course of study as designated by the institution
of attendance when the recipient initially receives payment for a
grant. 
   (b) (1) Commencing with the 2014-15 academic year, a recipient who
was determined to be ineligible for a renewal award in the 2012-13
or 2013-14 academic year because he or she exceeded the maximum
household income or asset level established by subdivision (k) of
Section 69432.7, or failed to meet the minimum need threshold
established by paragraph (3) of subdivision (b) of Section 69432.9,
shall be eligible to receive a renewal award if the recipient meets
all program eligibility requirements for the program from which he or
she was previously disqualified and the recipient has remaining
renewal award eligibility. For purposes of determining a student's
remaining renewal award eligibility, an academic year during which a
student was ineligible shall reduce his or her renewal award
eligibility by one full-time equivalent year.  
   (2) Commencing with the 2015-16 academic year, a recipient who is
determined to be ineligible for a renewal award because, during the
immediately preceding academic year, he or she exceeded the maximum
household income or asset level established by subdivision (k) of
Section 69432.7, or failed to meet the minimum need threshold
established by paragraph (3) of subdivision (b) of Section 69432.9,
shall be eligible to receive a renewal award if the recipient meets
all program eligibility requirements for the program from which he or
she was previously disqualified and the recipient has remaining
renewal award eligibility. For purposes of determining a student's
remaining renewal award eligibility, an academic year during which a
student was ineligible shall reduce his or her renewal award
eligibility by one full-time equivalent year.  
   (b) 
    (c)  For a student enrolled in an institutionally
prescribed five-year undergraduate program, Cal Grant A awards and
Cal Grant B awards may be renewed for a total of five years of
full-time attendance, provided that minimum financial need, as
defined in paragraph (3) of subdivision (b) of Section 69432.9,
continues to exist. 
   (c) 
    (d)  (1) A Cal Grant Program award recipient who has
completed a baccalaureate degree, and who has been admitted to and is
enrolled in a program of professional teacher preparation at an
institution approved by the California Commission on Teacher
Credentialing is eligible for, but not entitled to, renewal of a Cal
Grant Program award for an additional year of full-time attendance,
if minimum financial need, as defined in paragraph (3) of subdivision
(b) of Section 69432.9, continues to exist.
   (2) Payment for an additional year is limited to only those
courses required for an initial teaching authorization. An award made
under this subdivision may not be used for other courses. 
   (d) 
    (3)  A student's Cal Grant  Program  renewal
eligibility shall not have lapsed more than 15 months  prior
to   before  the payment of an award for purposes
of this  section.   subdivision. 
   SEC. 4.    Section 70022 of the   Education
Code   is amended to read: 
   70022.  (a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University or
the University of California who meets the requirements of paragraph
(2) is eligible for a scholarship award as described in that
paragraph.
   (2) Each academic year, except as provided in paragraphs (3) and
(4), a student shall receive a scholarship award in an amount that,
combined with other  publicly funded  federal,
state, or institutionally administered  student 
financial aid   grants or fee waivers  received by
an eligible student, is up to 40 percent of the amount charged to
that student in that academic year for mandatory systemwide tuition
and fees, if all of the following requirements are met:
   (A) The student's annual household income does not exceed one
hundred fifty thousand dollars ($150,000). For purposes of this
article, annual household income shall be calculated in a manner that
is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7
(commencing with Section 69430)) and Section 69506.
   (B) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student who is
exempt from nonresident tuition under Section 68130.5 shall not be
required to satisfy the requirements of subdivision (a) of Section
69433.9.
   (C) The student is exempt from paying nonresident tuition.
   (D) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application.  The FAFSA must be
submitted or postmarked by no later than March 2.  If the
student is not able to complete a FAFSA application, the student
 submits   may satisfy this subparagraph by
submitting  an application determined by the commission to be
equivalent to the FAFSA application for purposes of this 
article.   article by March 2. 
   (E) The student makes a timely application or applications for
 publicly funded student financial aid from programs
  all other federal, state, or institutionally
administered grants or fee waivers  for which  he or she
is eligible, other than  the  program established
by this article. For purposes of this article, "publicly funded
 student  financial aid" shall be defined as the
federal Pell Grant Program, the Cal Grant Program, and institutional
need-based grants.   is eligible. 
   (F) The student maintains satisfactory academic progress in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to
subdivision (m) of Section 69432.7. 
   (G) The student is pursuing his or her first undergraduate
baccalaureate degree or has completed a baccalaureate degree and has
been admitted to, and is enrolled in, a program of professional
teacher preparation at an institution approved by the California
Commission on Teacher Credentialing.  
   (H) The student is enrolled at least part time. 
   (3)  (A)    The  scholarship award under
this article to a student whose annual household income is greater
than one hundred thousand dollars ($100,000), and who otherwise meets
the requirements of   percentage specified in 
paragraph  (2),   (2)  shall be reduced by
0.6-percent  increments, from a maximum 40 percent of
mandatory systemwide tuition and fees for an academic year to a
minimum 10 percent of mandatory systemwide tuition and fees for an
academic year,   increments  per one thousand
dollars ($1,000) of annual household income in excess of one hundred
thousand dollars ($100,000),  to a minimum 10 percent of
mandatory systemwide tuition and fees for an academic year, 
provided that no scholarship award shall be provided to a student
with an annual household income exceeding one hundred fifty thousand
dollars ($150,000). This reduction shall be in addition to any
reduction required by subdivision (e) of Section 70023. 
   (B) Notwithstanding subparagraph (A), for any student who
qualifies for a scholarship award of at least one dollar ($1), the
minimum annual scholarship amount for full-time enrollment is ninety
dollars ($90). 
   (4) For the 2014-15, 2015-16, and 2016-17 academic years, the
maximum amount of a student's scholarship award shall be 35 percent,
50 percent, and 75 percent, respectively, of the total scholarship
award amount that the student would otherwise be eligible to receive.

   (b) In order for students enrolled in their respective segments to
remain eligible to receive a scholarship  award  under this
article, the University of California and the California State
University shall not supplant their respective institutional
need-based grants with the funds provided for scholarships under this
article, and shall maintain their funding amounts at a level that,
at a minimum, is equal to the level maintained for undergraduate
students during the 2013-14 academic year.
   (c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section
                 66021.1. 
   (d) A Middle Class Scholarship Program award authorized pursuant
to this article shall be defined as a full-time equivalent grant. An
award to a part-time student shall be a fraction of a full-time
grant, as determined by the proportionate amount charged for
systemwide tuition and fees. A part time student shall not be
discriminated against in the selection of Middle Class Scholarship
Program awards. For purposes of this section, "full-time student" and
"part-time student" have the same meaning as specified in
subdivision (f) of Section 69432.7. 
   SEC. 5.    Section 70023 of the   Education
Code   is amended to read: 
   70023.  (a) For each academic year, the commission shall determine
an amount sufficient, when combined with  Cal Grants, Pell
Grants, and institutional need-based   other federal,
state, or institutionally administered student  grants  or
fee waivers  received by eligible students from other sources,
to provide scholarships to eligible students in the amounts described
in paragraphs (2) and (3) of subdivision (a) of Section 70022. The
University of California and the California State University shall
provide the commission with any financial aid data that are necessary
for the determination of these amounts.
   (b) The commission shall annually determine if the amounts
appropriated under this section in each fiscal year are sufficient to
cover the costs of the scholarships as projected to be awarded
pursuant to the program. If those amounts are not sufficient for this
purpose, the scholarships shall be reduced proportionately by an
equal percentage for all recipients of scholarships under this
article.
   (c) The commission may adopt regulations necessary to carry out
the purposes of this article under subdivision (b) as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of the Administrative Procedure Act, including Section
11349.6 of the Government Code, the adoption of those regulations
shall be deemed to be an emergency and necessary for the immediate
preservation of the public peace, health and safety, or general
welfare, notwithstanding subdivision (e) of Section 11346.1 of the
Government Code. Notwithstanding subdivision (e) of Section 11346.1
of the Government Code, any regulation adopted pursuant to this
section shall not remain in effect more than 180 days unless the
commission complies with all provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, as required by subdivision (e) of Section 11346.1 of
the Government Code.
   (d) The unencumbered balance, as of June 30 of each fiscal year,
of the amount appropriated from the Middle Class Scholarship Fund
pursuant to paragraph (1) of subdivision (e) shall revert to the
General Fund.
   (e) (1) Upon order of the Director of Finance, the following
amounts shall be transferred from the General Fund to the Middle
Class Scholarship Fund, and are hereby appropriated to the commission
for allocation pursuant to this article:
   (A) For the 2014-15 fiscal year, one hundred seven million dollars
($107,000,000).
   (B) For the 2015-16 fiscal year, one hundred fifty-two million
dollars ($152,000,000).
   (C) For the 2016-17 fiscal year, two hundred twenty-eight million
dollars ($228,000,000).
   (D) For the 2017-18 fiscal year and for each fiscal year
thereafter, three hundred five million dollars ($305,000,000).
   (2) An annual appropriation to the commission is hereby
established in the amounts and for the fiscal years described in
paragraph (1) to carry out the purposes of this section and Section
70022.
   (3) The funds transferred and appropriated pursuant to paragraph
(1) shall only be available for encumbrance in the fiscal year in
which they are transferred, and the General Fund shall have no
liability or any obligation beyond the transfers explicitly
authorized in paragraph (1) unless a subsequent transfer or
allocation is required pursuant to statute.
   (4)  In any fiscal year, additional appropriations may be enacted
pursuant to statute to carry out the purposes of this article.
   (5) (A) Beginning with the Governor's Budget proposal for the
2014-15 fiscal year, and in the Governor's Budget for each fiscal
year thereafter, the Department of Finance shall include a fund
condition statement for the Middle Class Scholarship Fund for the
fiscal year of the proposed budget and the two immediately preceding
fiscal years prepared in accordance with existing law.
   (B) Upon order of the Director of Finance and commencing with the
2013-14 fiscal year, if the May Revision projects a budget deficit
for the next fiscal year, the amount specified in paragraph (1) for
the fiscal year for which the budget deficit is projected may be
reduced by up to 33 percent. Upon order of the Director of Finance,
beginning with the 2016-17 fiscal year, and each year thereafter, if
the May Revision projects a deficit for the next fiscal year, the
amount specified in paragraph (1) may be reduced to an amount greater
than or equal to two hundred million dollars ($200,000,000).
   (f) Subject to an appropriation in the annual Budget Act for its
purposes, the commission may begin implementation of, and establish
outreach services relating to, this article.
   SEC. 6.    Article 1.5 (commencing with Section
78220) is added to Chapter 2 of Part 48 of Division 7 of Title 3 of
the   Education Code   , to read:  

      Article 1.5.  Student Equity Plans


   78220.  (a) As a condition for receiving Student Success and
Support Program funding, and in order to ensure equal educational
opportunities and to promote student success for all students,
regardless of race, gender, age, disability, or economic
circumstances, the governing board of each community college district
shall maintain a student equity plan that includes all of the
following for each community college in the community college
district:
   (1) Campus-based research as to the extent of student equity by
gender and for each of the following categories of students:
   (A) Current or former foster youth.
   (B) Students with disabilities.
   (C) Low-income students.
   (D) Veterans.
   (E) Students in the following ethnic and racial categories, as
they are defined by the United States Census Bureau for the 2010
Census for reporting purposes:
   (i) American Indian or Alaska Native.
   (ii) Asian.
   (iii) Black or African American.
   (iv) Hispanic or Latino.
   (v) Native Hawaiian or other Pacific Islander.
   (vi) White.
   (vii) Some other race.
   (viii) More than one race.
   (2) Goals for access to, and completion of, basic skills, career
technical education and workforce training, and transfer courses for
the overall student population and for each population group of
high-need or disadvantaged students, and a determination of what
activities are most likely to effectively meet those goals.
   (3) Whether significant underrepresentation is found to exist
pursuant to paragraphs (1) and (2), measures for addressing the
disparities in those areas, implementation activities designed to
attain the goals specified in paragraph (2), including, but not
limited to, the adoption of evidence-based models of remediation,
implementation of placement tests and policies that more accurately
predict student success and identify students' remedial needs, and a
means of coordinating with, at a minimum, the following student
equity-related categorical programs or campus-based programs:
   (A) Students with disabilities.
   (B) Extended Opportunity Programs and Services and Special
Services.
   (C) Fund for Student Success.
   (D) Student Success and Support Program.
   (E) Programs for foster youth.
   (F) Programs for veterans.
   (G) Special Services for CalWORKS Recipients.
   (H) Student Financial Aid Administration.
   (I) Student Success for Basic Skills Students.
   (4) Sources of funds for the activities in the plan.
   (5) A schedule and process for evaluation.
   (6) An executive summary that includes, at a minimum, the students
groups for whom goals have been set, the goals, the initiatives that
the community college or community college district will undertake
to achieve these goals, the resources that have been budgeted for
that purpose, and the community college district official to contact
for further information. Commencing with 2016-17 academic year, the
executive summary shall also include a detailed accounting of how
funding was expended and an assessment of the progress made in
achieving the identified goals.
   (b) Student equity plans shall be developed with the active
involvement of all groups on campus as required by law, including,
but not limited to, the academic senate, academic faculty and staff,
student services, and students, and with the involvement of
appropriate people from the community.
   (c) The plan shall be adopted by the governing board of the
community college district and submitted to the Chancellor of the
California Community Colleges on or before January 1, 2015, who shall
publish all executive summaries, sending copies to the appropriate
policy and budget committees of the Legislature, the Department of
Finance, every community college and community college district, each
consultation group identified in subdivision (b) that so requests,
and additional individuals and organizations as deemed appropriate.
   (d) The plan shall be updated every three academic years and plan
updates shall be submitted to the Chancellor of the California
Community Colleges for publication and distribution as provided for
in subdivision (c).
   78221.  The Chancellor of the California Community Colleges shall
allocate funds provided for purposes of successfully implementing the
activities and goals specified in the student equity plans adopted
pursuant to Section 78220, consistent with all of the following:
   (a) The chancellor shall ensure a community college district has
submitted a student equity plan that is consistent with Section
78220. For purposes of allocating funding appropriated in the 2014-15
Budget Act, a community college district that has not submitted a
student equity plan shall provide the chancellor with an outline for
the community college district's completion of the student equity
plan on or before January 1, 2015.
   (b) The chancellor shall ensure that community college districts
that serve greater populations of students who are high-need students
or disadvantaged students receive greater resources to provide
services to students, consistent with the goals and activities
specified in their student equity plans.
   (c) The chancellor shall establish criteria for calculating the
number of high-need and disadvantaged students in a community college
district. For purposes of this article, "high-need students" mean
students who have an expected family contribution, as defined in
subdivision (g) of Section 69432.7, at any time during those students'
matriculation at the institution, that would qualify those students
to receive federal Pell Grants and students from zip codes in the
bottom two quintiles of college attainment. The calculation of a
student's expected family contribution shall be based on the Free
Application for Federal Student Aid (FAFSA) application or an
application determined by the California Student Aid Commission to be
equivalent to the FAFSA application submitted by that student. For
purposes of this article, the determination of who are "disadvantaged"
students shall take into account the college participation rate of
the college-aged population of, and the socioeconomic status of, a
community college district population.
   (d) (1) The chancellor shall establish a list of eligible and
ineligible expenditures and activities to ensure that funding is used
to support the implementation of student equity plan goals and the
coordination of services for the targeted student populations.
   (2) Notwithstanding Section 10231.5 of the Government Code, by
March 15, 2016, and by March 15 annually thereafter, the chancellor
shall report to the Department of Finance, the Legislative Analyst,
and the appropriate policy and fiscal committees of the Legislature,
on the expenditure of funds for purposes of this article during the
previous fiscal year. 
   SEC. 7.    The heading of Article 5 (commencing with
Section 79200) of Chapter 9 of Part 48 of Division 7 of Title 3 of
the   Education Code   is amended to read: 

      Article 5.   Curriculum Development for 
CalWORKs Recipients  Education Program 


   SEC. 8.    Section 79200 of the   Education
Code   is amended to read: 
   79200.   (a) There is in the California Community Colleges the
CalWORKs Recipients Education Program. 
    (b)    As used in this article, "CalWORKs
recipient" means a recipient of aid under Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code or any successor program.
   SEC. 9.    Section 79204 is added to the  
Education Code   , to read:  
   79204.  (a) In addition to the funding received pursuant to
Section 79202, and to the extent that funding is provided in the
annual Budget Act, a community college district shall receive funding
for purposes of providing special services for CalWORKs recipients.
   (b) Special services for CalWORKs recipients shall assist CalWORKs
recipient students and those students transitioning off of CalWORKs
in achieving long-term self-sufficiency through coordinated student
services offered at a community college. Special services may include
any of the services funded in accordance with subdivision (e).
   (c) Services funded pursuant to this section shall be provided
only to the following:
   (1) Current CalWORKs recipients until their initial educational
objectives are met.
   (2) Former CalWORKs recipients for a period of not more than two
years, subject to the conditions of Section 79208.
   (d) Funds received for purposes of this section shall be used to
supplement, and not supplant, existing funds and services provided
for CalWORKs recipients attending a community college.
   (e) The chancellor shall develop an equitable method for
allocating these funds to all community college districts based on
the relative number of CalWORKs recipients in attendance in each
district and shall allocate funds for the following purposes:
   (1) Job placement.
   (2) Coordination with county welfare offices and other local
agencies, including, but not limited to, local workforce investment
boards.
   (3) Child care and workstudy.
   (4) Instruction.
   (5) Postemployment skills training and related skills training.
   (6) Campus-based case management, limited to on-campus assistance
and services not provided by county caseworkers that do not supplant
other counseling and academic support services funded through
existing California Community Colleges categorical programs. 
   SEC. 10.    Section 79205 is added to the  
Education Code   , to read:  
   79205.  (a) Funds allocated pursuant to Section 79204 for the
purposes of subsidized child care shall be utilized only for children
of CalWORKs recipients through campus-based centers or parental
choice vouchers subject to rules consistent with those applied to
related programs operated by the State Department of Education,
including those rules relating to eligibility, reimbursement rates,
and parental contribution schedules.
   (b) Subsidized campus child care shall be provided to CalWORKs
recipients only if they are engaged in welfare-to-work activities
pursuant to Section 11320.1 of the Welfare and Institutions Code,
through the completion of their initial education and training plan
and for up to three months thereafter or until the end of the
academic year, whichever period of time is greater.
   (c) Funds allocated pursuant to Section 79204 for workstudy shall
be used for payments to those employers that currently participate in
campus-based workstudy programs or are providing work experiences
that are directly related to and in furtherance of student
educational programs and work participation requirements. Those
payments shall not exceed 75 percent of the wage for the workstudy
positions, and the employers shall pay at least 25 percent of the
wage for the workstudy positions. These funds may be expended on
behalf of a CalWORKs recipient only if the recipient's total hours of
education, employment, and workstudy meet the recipient's
obligations as specified in Section 11322.8 of the Welfare and
Institutions Code. 
   SEC. 11.    Section 79206 is added to the  
Education Code   , to read:  
   79206.  (a) Funds allocated pursuant to Section 79204 may be used
to provide additional sections of credit or noncredit classes for
CalWORKs recipient students if the chancellor determines that a
community college district is otherwise unable to offer the
additional instructional services to meet the demand for CalWORKs
students.
   (b) The determination described in subdivision (a) shall be based
on fall enrollment information and community college districts shall
submit applications to the Chancellor of the California Community
Colleges by December 1 of each year.
   (c) If the chancellor approves the use of funds for direct
instructional workload pursuant to subdivision (a), the Chancellor of
the California Community Colleges shall submit a report to the
Department of Finance and the Joint Legislative Budget Committee by
February 15 of each year that includes at least all of the following
information:
   (1) The enrollment of new CalWORKs recipient students.
   (2) An explanation of why additional classes were needed to
accommodate the needs of CalWORKs recipient students.
   (3) An expenditure plan for the balance of these funds. 
   SEC. 12.    Section 79207 is added to the  
Education Code   , to   read:  
   79207.  (a) As a condition of continued receipt of the funds
allocated pursuant to Section 79204, by the fourth week following the
end of the semester or quarter term commencing in January of each
year, community college districts and colleges shall submit to the
Chancellor of the California Community Colleges a report, in the
format specified by the chancellor, in consultation with the State
Department of Social Services, that includes, but is not limited to,
all of the following information:
   (1) How the moneys received for the funded components of special
services, as specified in subdivision (e) of Section 79204, were
spent.
   (2) The number of hours of child care services provided.
   (3) The average monthly enrollment of CalWORKs recipient
dependents served in child care.
   (4) The number of work study hours provided.
   (5) The hourly salaries and type of jobs in which CalWORKs
recipients were placed.
   (6) The number of students receiving case management.
   (7) The student participation rates, and other outcome data.
   (b) It is the intent of the Legislature that, to the extent
practicable, reporting from colleges utilize data gathered for
federal reporting requirements at the state and local level.
   (c) The Chancellor of the California Community Colleges shall
compile the information received pursuant to subdivision (a) for
annual reports to the Legislature, Governor, the Legislative Analyst,
the Department of Finance, and the State Department of Social
Services, notwithstanding Section 10231.5 of the Government Code, by
February 15 of each year.
   (d) A report to the Legislature pursuant to subdivision (c) shall
be submitted pursuant to Section 9795 of the Government Code. 
   SEC. 13.    Section 79208 is added to the  
Education Code   , to read:  
   79208.  (a) First priority for expenditures of any funds allocated
in Section 79204 shall be for the support of current CalWORKs
recipients.
   (b) If the needs of current CalWORKs recipients are insufficient
to fully utilize all of the funding allocated pursuant to Section
79204 in a cost-effective way, the chancellor, in consultation with
the State Department of Social Services, may allocate a portion of
the funds allocated pursuant to Section 79204 for the purpose of
providing postemployment services to former CalWORKs recipients.
   (c) Prior to an allocation of funds for postemployment services
pursuant to subdivision (b), the chancellor shall secure the approval
of the Department of Finance for the allocations, complete a
cumulative report on the outcomes, activities, and cost-effectiveness
of the program of funding specified in Section 79204 no later than
February 15 of each year, and provide the rationale and justification
for the proposed allocation of funds for postemployment services by
community college districts for former CalWORKs recipients.
   (d) Funds allocated pursuant to subdivision (b) shall be used only
for former CalWORKs recipients who have been off of cash assistance
for not longer than two years to assist them in upgrading skills, job
retention, and advancement, by means of one or more of the
following:
   (1) Direct instruction that cannot be funded by other means.
   (2) Child care to support attendance in classes consistent with
this article for periods commensurate with a student's need for
postemployment training within the two-year period.
   (3) Job development and placement services.
   (4) Career counseling and assessment activities that cannot be
funded through other programs. 
   SEC. 14.   Section 79209 is added to the  
Education Code   , to read:  
   79209.  (a) If a community college district is unable to fully
expend its share of funds allocated for child care pursuant to
Section 79204, it may request that the chancellor approve a
reallocation to other CalWORKs purposes authorized by this article,
subject to all pertinent limitations and any district match required
for those purposes.
   (b) Funds allocated pursuant to Section 79204 shall be budgeted to
meet the state's Temporary Assistance for Needy Families maintenance
of effort requirement pursuant to the federal Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193) and may not be expended in any way that would
cause their disqualification as a federally allowable maintenance of
effort expenditure. 
   SEC. 15.    Section 81821 of the   Education
Code   is amended to read: 
   81821.   (a)    The five-year plan for capital
construction shall set out the estimated capital construction needs
of the district with reference to  elements including
 at least  all   both  of the
 following:   following elements:  
   (1) The current enrollment capacity of the district expressed in
terms of weekly student contact hours and based upon the space and
utilization standards for community college classrooms and
laboratories adopted by the board of governors.  
   (2) District office, library, and supporting facility capacities
as derived from the physical plant standards for office, library, and
supporting facilities adopted by the board of governors.  
   (b) The five-year plan for capital construction may also set out
the estimated capital construction needs of the district with
reference to other elements, including, but not limited to: 

   (a) 
    (1)  The plans of the district concerning its future
academic and student services programs, and the effect on estimated
construction needs  which   that  may arise
because of particular courses of instruction or subject matter areas
or student services to be emphasized. 
   (b) 
   (2)  The enrollment projections for each district
formulated by the Department of Finance, expressed in terms of weekly
student contact hours. The enrollment projections for each
individual college and educational center within a district shall be
made cooperatively by the Department of Finance and the 
community college district.   Chancellor of the
California Community Colleges.  
   (c) The current enrollment capacity of the district expressed in
terms of weekly student contact hours and based upon the space and
utilization standards for community
               college classrooms and laboratories adopted by the
board of governors in consultation with the California Postsecondary
Education Commission and consistent with its standards. 

   (d) District office, library, and supporting facility capacities
as derived from the physical plant standards for office, library, and
supporting facilities adopted by the board of governors in
consultation with the California Postsecondary Education Commission
and consistent with its standards.  
   (e) 
   (3)  An annual inventory of all facilities and land of
the district using standard definitions, forms, and instructions
adopted by the board of governors. 
   (f) 
    (4)  An estimate of district funds  which
  that  shall be made available for capital outlay
matching purposes pursuant to regulations adopted by the board of
governors.
   SEC. 16.    Section 84321.6 of the  
Education Code   is amended to read: 
   84321.6.  (a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to
community college districts pursuant to Sections 84320 and 84321
shall be adjusted by the following:
   (1) For the month of  February,   February
2014,  fifty-two million four hundred fifty-six thousand dollars
($52,456,000) shall be deferred to  July.  
July 2014. 
   (2) For the month of  March,   March 2014,
 one hundred thirty-five million dollars ($135,000,000) shall be
deferred to  July.   July 2014. 
   (3) For the month of  April,   April 2014,
 one hundred thirty-five million dollars ($135,000,000) shall be
deferred to  July.   July 2014. 
   (4) For the month of  May,   May 2014, 
one hundred thirty-five million dollars ($135,000,000) shall be
deferred to  July.   July 2014. 
   (5) For the month of  June,   June 2014,
 one hundred thirty-five million dollars ($135,000,000) shall be
deferred to  July.   July 2014.  
   (6) For the month of June 2015, ninety-four million four hundred
sixty-five thousand dollars ($94,465,000) shall be deferred to July
2015. 
   (b)  (1)    In satisfaction of the moneys
deferred pursuant to  paragraphs (1) to (5), inclusive, of 
subdivision (a), the sum of five hundred ninety-two million four
hundred fifty-six thousand dollars ($592,456,000) is hereby
appropriated in July of the 2014-15 fiscal year from the General Fund
to the Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure during
the 2014-15 fiscal year, to be expended in accordance with Schedule
(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2013.

   (2) In satisfaction of the moneys deferred pursuant to paragraph
(6) of subdivision (a), the sum of ninety-four million four hundred
sixty-five thousand dollars ($94,465,000) is hereby appropriated in
July of the 2015-16 fiscal year from the General Fund to the Board of
Governors of the California Community Colleges for apportionments to
community college districts, for expenditure during the 2015-16
fiscal year, to be expended in accordance with Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2014. 
   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution,  one hundred
thirty-eight million six hundred two thousand dollars ($138,602,000)
of  the appropriations made by  paragraph (1) of 
subdivision (b) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the  2014-15 
 2012-13  fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202, for the 
2014-15   2012-13  fiscal year. 
   (d) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, two hundred ninety-six
million three hundred fifty-four thousand dollars ($296,354,000) of
the appropriations made by paragraph (1) of subdivision (b) shall be
deemed to be "General Fund revenues appropriated for community
college districts," as defined in subdivision (d) of Section 41202,
for the 2013-14 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202, for the 2013-14
fiscal year.  
   (e) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, one hundred
fifty-seven million five hundred thousand dollars ($157,500,000) of
the appropriations made by paragraph (1) of subdivision (b) shall be
deemed to be "General Fund revenues appropriated for community
college districts," as defined in subdivision (d) of Section 41202,
for the 2014-15 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202, for the 2014-15
fiscal year.  
   (f) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, ninety-four million
four hundred sixty-five thousand dollars ($94,465,000) of the
appropriations made by paragraph (2) of subdivision (b) shall be
deemed to be "General Fund revenues appropriated for community
college districts," as defined in subdivision (d) of Section 41202,
for the 2015-16 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202, for the 2015-16
fiscal year.  
   (d) 
    (g)  This section shall become operative on December 15,
2013. 
   (e) 
    (h)  This section shall remain in effect only until
January 1,  2015,   2017,  and as of that
date is repealed, unless a later enacted statute, that is enacted
before January 1,  2015,   2017,  deletes
or extends that date.
   SEC. 17.    Section 84750.5 of the  
Education Code   is amended to read: 
   84750.5.  (a) The board of governors, in accordance with the
statewide requirements contained in paragraphs (1) to (11),
inclusive, of subdivision (d), and in consultation with institutional
representatives of the California Community Colleges and statewide
faculty and staff organizations, so as to ensure their participation
in the development and review of policy proposals, shall develop
criteria and standards for the purposes of making the annual budget
request for the California Community Colleges to the Governor and the
Legislature, and for the purpose of allocating the state general
apportionment revenues.
   (b) In developing the criteria and standards, the board of
governors shall utilize and strongly consider the recommendations and
work product of the "System Office Recommendations Based on the
Report of the Work Group on Community College Finance" that was
adopted by the board at its meeting of March 7, 2005. The board 
of governors  shall complete the development of these criteria
and standards, accompanied by the necessary procedures, processes,
and formulas for utilizing its criteria and standards, by March 1,
2007, and shall submit on or before that date a report on these items
to the Legislature and the Governor.
   (c) (1) It is the intent of the Legislature in enacting this
section to improve the equity and predictability of general
apportionment and growth funding for community college districts in
order that the districts may more readily plan and implement
instruction and related programs, more readily serve students
according to the policies of the state's master plan for higher
education, and enhance the quality of instruction and related
services for students.
   (2) It is the intent of the Legislature to determine the amounts
to be appropriated for the purposes of this section through the
annual Budget Act. Nothing in this section shall be construed as
limiting the authority either of the Governor to propose, or the
Legislature to approve, appropriations for California Community
Colleges programs or purposes.
   (d) The board of governors shall develop the criteria and
standards within the following statewide minimum requirements:
   (1) The calculations of each community college district's revenue
level for each fiscal year shall be based on the level of general
apportionment revenues (state and local) the district received for
the prior year plus any amount attributed to a deficit from the
adopted standards to be developed pursuant to this section, with
revenue adjustments being made for increases or decreases in 
full time   full-time  equivalent students (FTES),
for equalization of funding per credit FTES, for necessary alignment
of funding per FTES between credit and noncredit programs, for
inflation, and for other purposes authorized by law.
   (2) Commencing with the 2006-07 fiscal year, the funding mechanism
developed pursuant to this section shall recognize the need for
community college districts to receive an annual allocation based on
the number of colleges and comprehensive centers in the district. In
addition to this basic allocation, the marginal amount of credit
revenue allocated per FTES shall be funded at a rate not less than
four thousand three hundred sixty-seven dollars ($4,367), as adjusted
for the change in the cost-of-living in subsequent annual budget
acts.
   (A) To the extent that the Budget Act of 2006 contains an
appropriation of one hundred fifty-nine million four hundred
thirty-eight thousand dollars ($159,438,000) for community college
equalization, the Legislature finds and declares that community
college equalization for credit FTES has been effectively
accomplished as of March 31, 2007.
   (B) The chancellor shall develop criteria for the allocation of
one-time grants for those districts that would have qualified for
more equalization under prior law than pursuant to this section and
the Budget Act of 2006, and for those districts that would have
qualified for more funding under a proposed rural college access
grant than pursuant to this section and the Budget Act of 2006, as
determined by the chancellor. Appropriations for the one-time grants
shall be provided pursuant to paragraph (24) of subdivision (a) of
Section 43 of Chapter 79 of the Statutes of 2006.
   (3) Noncredit instruction shall be funded at a uniform rate of two
thousand six hundred twenty-six dollars ($2,626) per FTES, as
adjusted for the change in the cost-of-living provided in subsequent
annual budget acts.
   (4) Funding for instruction in career development and college
preparation, as authorized pursuant to Section 84760.5, shall be
provided as follows:
   (A)  (i)    Beginning in the 2006-07 fiscal
year, career development and college preparation FTES may be funded
at a rate of three thousand ninety-two dollars ($3,092) per FTES for
courses in programs that conform to the requirements of Section
84760.5. This rate shall be adjusted for the change in the
cost-of-living or as otherwise provided in subsequent annual budget
acts. 
   (ii) Beginning in the 2015-16 fiscal year, career development and
college preparation FTES shall be funded at the same level as the
credit rate specified in paragraph (2). This rate shall be adjusted
for the change in the cost-of-living or as otherwise provided in
subsequent annual budget acts.  
   (iii) The Legislative Analyst shall report to the Legislature on
or before March 1, 2017, regarding the change in funding specified in
clause (ii), including whether community colleges offered additional
classes or programs related to career development or college
preparation, and whether there was any change in FTES.  
   (iv) (I) The requirement for submitting a report imposed under
clause (iii) is inoperative on March 30, 2019, pursuant to Section
10231.5 of the Government Code.  
   (II) A report submitted pursuant to clause (iii) shall be
submitted in compliance with Section 9795 of the Government Code.

   (B) Changes in career development and college preparation FTES
shall result in adjustments to revenues as follows:
   (i) Increases in career development and college preparation FTES
shall result in an increase in revenues in the year of the increase
and at the average rate per career development and college
preparation FTES, including any cost-of-living adjustment authorized
by statute or by the annual Budget Act.
   (ii) Decreases in career development and college preparation FTES
shall result in a revenue reduction in the year following the
decrease and at the average rate per career development and college
preparation FTES.
   (5) Except as otherwise provided by statute, current categorical
programs providing direct services to students, including extended
opportunity programs and services, and disabled students programs and
services, shall continue to be funded separately through the annual
Budget Act, and shall not be assumed under the budget formula
otherwise specified by this section.
   (6) For credit and noncredit instruction, changes in FTES shall
result in adjustments in district revenues as follows:
   (A) Increases in FTES shall result in an increase in revenues in
the year of the increase and at the amount per FTES provided for in
paragraph (2) or (3), as appropriate, including any cost-of-living
adjustment authorized by statute or by the annual Budget Act.
   (B) Decreases in FTES shall result in revenue reductions beginning
in the year following the initial year of decrease in FTES, and at
the district's marginal funding per FTES.
   (C) Districts shall be entitled to the restoration of any
reductions in apportionment revenue due to decreases in FTES during
the three years following the initial year of decrease in FTES if
there is a subsequent increase in FTES.
   (7) Revenue adjustments shall be made to reflect cost changes,
using the same inflation adjustment as required for school districts
pursuant to subdivision (b) of Section 42238.1. These revenue
adjustments shall be made to the college and center basic
allocations, credit and noncredit FTES funding rates, and career
development and college preparation FTES funding rates.
   (8) The statewide requested increase in budgeted workload FTES
shall be based, at a minimum, on the sum of the following
computations:
   (A) Determination of an equally weighted average of the rate of
change in the California population of persons between the ages of 19
and 24 and the rate of change in the California population of
persons between the ages of 25 and 65, both as determined by the
Department of Finance's Demographic Research Unit as determined for
the preceding fiscal year.
   (B) To the extent the California unemployment rate exceeds 5
percent for the most recently completed fiscal year, that positive
difference shall be added to the rate computed in subparagraph (A).
In no event shall that positive difference exceed 2 percent.
   (C) The chancellor may also add to the amounts calculated pursuant
to subparagraphs (A) and (B) the number of FTES in the areas of
transfer, vocational education, and basic skills that were unfunded
in the current fiscal year. For this purpose, the following
computation shall be determined for each district, and a statewide
total shall be calculated:
   (i) Establish the base level of FTES earned in the prior fiscal
year for transfer courses consisting of courses meeting the
California State University breadth or Intersegmental General
Education Transfer Curriculum requirements or major course
prerequisites accepted by the University of California or the
California State University.
   (ii) Establish the base level of FTES earned in the prior fiscal
year for vocational education courses consisting of courses defined
by the chancellor's office Student Accountability Model codes A and B
that are consistent with the courses used for measuring success in
this program area under the accountability system established
pursuant to Section 84754.5.
   (iii) Establish the base level of FTES in the prior fiscal year
for basic skills courses, both credit and noncredit.
   (iv) Add the sum of FTES for clauses (i) to (iii), inclusive.
   (v) Multiply the result of the calculation made under clause (iv)
by one plus the district's funded growth rate in the current fiscal
year. This figure shall represent the maintenance of effort level for
the budget year.
   (vi) FTES in transfer, vocational education, and basic skills that
are in excess of the total calculated pursuant to clause (v), shall
be considered in excess of the maintenance of effort level, and shall
be eligible for overcap growth funding if the district exceeds its
overall funded FTES.
   (vii) In no event shall the amount calculated pursuant to clause
(vi) exceed the total unfunded FTES for that fiscal year. To the
extent the computation specified in subdivision (c) requires the
reporting of additional data by community college districts, that
reporting shall be a condition of the receipt of apportionment for
growth pursuant to this section and those funds shall be available to
offset any and all costs of providing the data.
   (9) Except as provided in subparagraph (B) of paragraph (6), for
the 2006-07 fiscal year or for the first fiscal year for which this
section is implemented by the board of governors, whichever is later,
all districts shall receive at least the amount of revenue received
for the prior fiscal year, adjusted for the cost-of-living adjustment
specified in subdivision (b) of Section 42238.1 and adjusted for the
actual increase in FTES not to exceed the district's funded growth
cap. Thereafter, allocations shall be made pursuant to this section,
as implemented by the board of governors pursuant to the annual
Budget Act.
   (10) Except as specifically provided in statute, regulations of
the board of governors for determining and allocating the state
general apportionment to the community college districts shall not
require district governing boards to expend the allocated revenues in
specified categories of operation or according to the workload
measures developed by the board of governors.
   (e)  This section   (1)    
The Chancellor of the Community Colleges  shall  become
operative   develop, and the board of governors shall
adopt, a revised apportionment growth formula for use commencing with
the 2015-16 fiscal year. The chancellor shall allocate
apportionments pursuant to the revised formula only after the revised
formula, and any formulas for adjustment pursuant to paragraph (2),
have been adopted by the board of governors. The revised
apportionment growth formula shall support the primary missions of
the segment, and shall be based  on  October 1, 2006.
  each community's need for access to the community
colleges, as determined by local demographics. In developing the
revised formula, the chancellor shall consider multiple factors in
determining need; however, the primary factors shall be:  
   (A) (i) The number of persons under 25 years of age without a
college degree, within a community college district's boundaries, and
the number of persons 25 to 64 years of age, inclusive, without a
college degree, within a community college district's boundaries.
 
   (ii) Notwithstanding clause (i), the chancellor may use
alternative age ranges depending on the availability of data. 

    (B) The number of persons who are unemployed, have limited
English skills, who are in poverty, or who exhibit other signs of
being disadvantaged, as determined by the chancellor, within a
community college district's boundaries.  
   (2) Beginning with the 2016-17 fiscal year, the chancellor shall
adjust upward the need determination based on each community college'
s effectiveness in serving residents of neighborhoods, within or
outside of the community college district's boundaries, that exhibit
the highest levels of need in the state.  
   (3) The chancellor shall calculate each community college district'
s proportionate share of the statewide need for access to the
community colleges based on the application of this formula described
in paragraph (1), as adjusted pursuant to paragraph (2).  
   (4) The chancellor shall calculate the difference between each
community college district's proportionate share of the statewide
need for access to the community colleges, as calculated pursuant to
paragraph (3), and its current proportionate share of statewide
enrollment in the community colleges.  
   (5) (A) Until a community college district reaches its highest
level of apportionment revenues previously received, its
apportionment revenues shall be eligible to increase by the lesser of
1 percent of its current apportionment base, or one-half of the
statewide growth allocation on an proportionate basis, regardless of
need.  
   (B) After a community college district reaches its highest level
of apportionment revenues previously received, it shall be eligible
to increase its apportionment revenues by the lesser of one-half of 1
percent of its current apportionment base, or one-quarter of the
statewide growth allocation on an proportionate basis, regardless of
its need.  
   (6) The remainder of the apportionment growth funding shall be
allocated to allow each community college district to grow its
apportionment revenues based on its relative share of the difference
between the amounts calculated in paragraph (4), up to a maximum of
its apportionment base for the preceding fiscal year appropriate to
ensure that community college district is advancing the primary
missions of the segment. The maximum established by the chancellor
shall not be less than 5 percent nor greater than 10 percent of a
community college district's apportionment base for the preceding
fiscal year.  
   (7) Unless otherwise agreed upon by the board of governors,
apportionment reductions shall be allocated proportionally based on
the most recent levels of apportionment revenues.  
   (8) (A) It is the intent of the Legislature, consistent with
direction provided in the 2014-15 Budget Act, that apportionment
growth funding be expended for purposes of increasing the number of
FTES in courses or programs that support the primary missions of the
segment.  
   (B) (i) Notwithstanding Section 10231.5 of the Government Code, on
or before October 15, 2015, and each year thereafter, the chancellor
shall report to the Legislature on the course sections and FTES
added at each community college that received apportionment growth
funding in the prior fiscal year, including the number of course
sections and if any course sections and FTES were added that are
within the primary missions of the segment and those that are not
within the primary missions of the segment.  
   (ii) A report submitted to the Legislature pursuant to clause (i)
shall be submitted in compliance with Section 9795 of the Government
Code.  
   (C) For purposes of this section, "primary missions of the segment"
means credit courses and those noncredit courses specified in
paragraphs (2) to (6), inclusive, of subdivision (a) of Section
84757. 
   SEC. 18.    Section 84750.6 is added to the 
 Education Code   , to read:  
   84750.6.  (a) Notwithstanding Section 84750.5, the board of
governors shall provide the San Francisco Community College District
with revenues, as specified in subdivision (b), if, on the effective
date of the act that adds this section, both of the following
conditions are satisfied:
   (1) The board of governors finds that the community college
district or a campus of the community college district is in imminent
jeopardy of losing its accreditation.
   (2) The board of governors has exercised its authority pursuant to
Section 84040 of this code and Section 58312 of Title 5 of the
California Code of Regulations as that regulation read on April 15,
2014.
   (b) If the number of full-time equivalent students (FTES) of the
community college district decreases from the number in the 2012-13
fiscal year, the board of governors shall provide revenues to the
community college district, as follows:
   (1) For the 2014-15 fiscal year, an amount not less than the total
amount that the community college district would receive if the
level of attendance of FTES was the same level of attendance as in
the 2012-13 fiscal year.
   (2) For the 2015-16 fiscal year, an amount not less than 95
percent of the total amount that the community college district would
receive if the level of attendance of FTES was the same level of
attendance as in the 2012-13 fiscal year.
   (3) (A) For the 2016-17 fiscal year, an amount not less than 90
percent of the total amount that the community college district would
receive if the level of attendance of FTES was the same level of
attendance as in the 2012-13 fiscal year.
                                (B) Funds shall be provided under
this paragraph only if the Fiscal Crisis Management Assistance Team
makes a finding no sooner than April 1, 2016, that the San Francisco
Community College District is meeting or exceeding all of the
following benchmarks:
   (i) Effective fiscal controls and systems are in place.
   (ii) The City College of San Francisco has, and is adhering to,
prudent fiscal policies and practices, as corroborated by an analysis
of multiyear projections of no less than three fiscal years
commencing with the 2016-17 fiscal year.
   (iii) The City College of San Francisco is applying resources in
accordance with a budget plan approved by the special trustee.
   (iv) The City College of San Francisco is maintaining appropriate
fiscal reserves.
   (v) The City College of San Francisco has, and is adhering to, a
viable plan to address long-term liabilities including, but not
necessarily limited to, "other postemployment benefits," as that term
is used in accordance with generally accepted accounting principles
defined by the Governmental Accounting Standards Board as of April
15, 2014.
   (c) The amounts calculated in paragraphs (1) to (3), inclusive, of
subdivision (b) shall be adjusted by the chancellor to reflect
cost-of-living adjustments, deficits in apportionments, or both, as
appropriate for the applicable fiscal years.
   (d) Subdivision (b) shall only be used to determine the
apportionment funding to be allocated to the San Francisco Community
College District. In computing statewide entitlements to funding
based upon the attendance of FTES, the San Francisco Community
College District shall not be credited with more FTES than were
actually enrolled and in attendance.
   (e) Subdivision (b) shall only be operative for a fiscal year in
which the San Francisco Community College District is in compliance
with Section 51016 of Title 5 of the California Code of Regulations
as that regulation read on April 15, 2014.
   (f)  It is the intent of the Legislature that any amounts
necessary to make the apportionments required pursuant to subdivision
(b) be drawn from the state general apportionment revenues for
community college districts.
   (g) (1) The Chancellor of the City College of San Francisco shall
submit all of the following to the appropriate policy and fiscal
committees of the Legislature, the Office of the Governor, the
Legislative Analyst's Office, and the Department of Finance on or
before April 15, 2015:
   (A) An overview of the college's current accreditation status,
including a description of any identified accreditation deficiencies
and activities underway to address those deficiencies.
   (B) Enrollment totals for the current and prior years.
   (C) Updated enrollment projections for the two subsequent fiscal
years.
   (D) The number of course sections offered in the current and prior
fiscal years.
   (E) A thorough explanation of the district's level of budgetary
reserves and sources of revenue.
   (F) A thorough multiyear budget plan that explains, at a minimum,
both revenue sources and areas of expenditure.
   (2) The Chancellor of the City College of San Francisco shall
submit updates to the report submitted under paragraph (1) on or
before the following dates:
   (A) October 15, 2015.
   (B) April 15, 2016.
   (C) October 15, 2016, but only if funding is provided pursuant to
paragraph (3) of subdivision (b).
   (D) April 15, 2017, but only if funding is provided pursuant to
paragraph (3) of subdivision (b). 
   SEC. 19.    Section 84751 of the   Education
Code   is amended to read:
   84751.   (a)    In calculating each community
college district's revenue level for each fiscal year pursuant to
subdivision (a) of Section  84750,   84750.5,
 the board of governors shall subtract, from the total revenues
owed, all of the following: 
   (a) 
    (1)  The local property tax revenue specified by law for
general operating support, exclusive of bond interest and
redemption. 
   (b) 
    (2)  Ninety-eight percent of the fee revenues collected
pursuant to Section 76300. 
   (c) 
    (3)  Timber yield tax revenues received pursuant to
Section 38905.1 of the Revenue and Taxation Code. 
   (d) 
    (4) Any amounts received pursuant to Section 33492.15,
33607.5, or 33607.7 of the Health and Safety Code, and Section 33676
of the Health and Safety  Code   Code,  as
amended by Section 2 of Chapter 1368 of the Statutes of 1990, that
are considered to be from property tax revenues pursuant to those
sections for  the  purposes of community college
revenue levels, except those amounts that are allocated exclusively
for educational facilities. 
   (b) Notwithstanding subdivision (a), for the 2013-14 fiscal year,
revenues received pursuant to Sections 34177, 34179.5, 34179.6, and
34188 of the Health and Safety Code after April 15, 2014, shall be
counted as revenues received in the 2014-15 fiscal year.  
   (c) Notwithstanding subdivision (a), for the 2014-15 fiscal year,
revenues received pursuant to Sections 34177, 34179.5, 34179.6, and
34188 of the Health and Safety Code after April 15, 2015, shall be
counted as revenues received in the 2015-16 fiscal year.  
   (d) Notwithstanding subdivision (a), for the 2015-16 fiscal year,
revenues received pursuant to Sections 34177, 34179.5, 34179.6, and
34188 of the Health and Safety Code after April 15, 2016, shall be
counted as revenues received in the 2016-17 fiscal year. 
   SEC. 20.    Section 84754.6 is added to the 
 Education Code   , to read:  
   84754.6.  (a) The Chancellor of the California Community Colleges,
in coordination with community college stakeholder groups, the
appropriate fiscal and policy committees of the Legislature, and the
Department of Finance, shall develop, and the board of governors
shall adopt, a framework of indicators designed to measure the
ongoing condition of a community college's operational environment in
the following areas:
   (1) Accreditation status.
   (2) Fiscal viability.
   (3) Student performance and outcomes.
   (4) Programmatic compliance with state and federal guidelines.
   (b) As a condition of receipt of funds appropriated for purposes
of Article 1 (commencing with Section 78210) of Chapter 2 of Part 48
of Division 7, each community college within a community college
district shall develop, adopt, and publicly post a goals framework
that addresses at least all of the areas specified in subdivision
(a).
   (c) Before the commencement of the 2015-16 fiscal year, and before
the commencement of each fiscal year thereafter, the Chancellor of
the California Community Colleges shall publicly post both of the
following:
   (1) Annually developed systemwide goals adopted by the board of
governors.
   (2) Locally developed and adopted community college or community
college district goals and targets.
   (d) Subject to the availability of funding in the annual Budget
Act, the board of governors and the Chancellor of the California
Community Colleges shall assess the degree to which each community
college district is improving its outcomes in regard to the areas
specified in subdivision (a) and any additional issues addressed in
the goals frameworks described in paragraph (b), and shall offer
technical assistance to community college districts that are not
improving.
   (e) If a community college district is receiving technical
assistance pursuant to subdivision (d), the community college
district shall submit a turnaround plan that details all of the
following:
   (1) The problem the technical assistance is attempting to solve.
   (2) How the identified problem will be addressed in a plan adopted
by the governing board of the community college district.
   (3) A timetable of major milestones for improvement.
   (4) Updates that will be submitted to the Chancellor of the
California Community Colleges on the outcomes in regard to those
milestones, as scheduled by the Chancellor. 
   SEC. 21.    Section 87482 of the   Education
Code   is amended to read: 
   87482.  (a) (1) Notwithstanding Section 87480, the governing board
of a community college district may employ any qualified individual
as a temporary faculty member for a complete school year, but not
less than a complete semester or quarter during a school year. The
employment of those persons shall be based upon the need for
additional faculty during a particular semester or quarter because of
the higher enrollment of students during that semester or quarter as
compared to the other semester or quarter in the academic year, or
because a faculty member has been granted leave for a semester,
quarter, or year, or is experiencing long-term illness, and shall be
limited, in number of persons so employed, to that need, as
determined by the governing  board.   board of
the community college district. 
   (2) Employment of a person under this subdivision may be pursuant
to contract fixing a salary for the entire semester or quarter.
   (b) A person, other than a person serving as clinical nursing
faculty and exempted from this subdivision pursuant to paragraph (1)
of subdivision (c), shall not be employed by any one district under
this section for more than two semesters or three quarters within any
period of three consecutive years.
   (c) (1) Notwithstanding subdivision (b), a person serving as
full-time clinical nursing faculty or as part-time clinical nursing
faculty teaching the hours per week described in Section 87482.5 may
be employed by any one  community college  district under
this section for up to four semesters or six quarters within any
period of three consecutive academic years between July 1, 2007, and
 June 30, 2014,  December 31, 2015, 
inclusive.
   (2) A  community college  district that employs faculty
pursuant to this subdivision shall provide data to the chancellor's
office as to the number of faculty members hired under this
subdivision, and what the ratio of full-time to part-time faculty was
for each of the three academic years prior to the hiring of faculty
under this subdivision and for each academic year for which faculty
is hired under this subdivision. This data shall be submitted, in
writing, to the chancellor's office on or before June 30, 2012.
   (3) The  chancellor   Chancellor of the
California Community Colleges  shall report, in writing, to the
Legislature and the Governor on or before September 30, 2012, in
accordance with data received pursuant to paragraph (2), the number
of  community college  districts that hired faculty under
this subdivision, the number of faculty members hired under this
subdivision, and what the ratio of full-time to part-time faculty was
for these  community college  districts in each of the
three academic years prior to the operation of this subdivision and
for each academic year for which faculty is hired under this
subdivision.
   (4) A  community college  district may not employ a
person pursuant to this subdivision if the hiring of that person
results in an increase in the ratio of part-time to full-time nursing
faculty in that district.
   SEC. 22.    Secti   on 89295 of the 
 Education Code   is amended to read: 
   89295.  (a) For purposes of this section, the following terms are
defined as follows:
   (1) The "four-year graduation rate" means the percentage of a
cohort  that   of undergraduate students who
 entered the university as freshmen  that successfully
  at any campus and  graduated  from any campus
 within four years.
   (2) The "six-year graduation rate" means the percentage of a
cohort  that   of undergraduate students who
 entered the university as freshmen  that successfully
  at any campus and  graduated  from any campus
 within six years.
   (3) The "two-year transfer graduation rate" means the percentage
of a cohort  that   of undergraduate students
who  entered the university  at any campus  as
junior-level transfer students from the California Community Colleges
 that successfully   and  graduated 
from any campus  within two years.
   (4) The "three-year transfer graduation rate" means the percentage
of a cohort  that   of undergraduate students
who  entered the university as junior-level transfer students
from the California Community Colleges  that successfully
  at any campus and  graduated  from any campus
 within three years.
   (5)  "Low-income students"   The "four-year
transfer graduation rate"    means  the percentage
of a cohort of undergraduate  students who  receive a
Pell Grant   entered the university as junior-level
transfer students from the California Community Colleges  at any
 time during their matriculation at the institution.
  campus and graduated from any campus within four
years.  
   (6) "Low-income student" means an undergraduate student who has an
expected family contribution, as defined in subdivision (g) of
Section 69432.7, at any time during the student's matriculation at
the institution that would qualify the student to receive a federal
Pell Grant. The calculation of a student's expected family
contribution shall be based on the Free Application for Federal
Student Aid (FAFSA) application or an application determined by the
California Student Aid Commission to be equivalent to the FAFSA
application submitted by that applicant. 
   (b) Commencing with the 2013-14 academic year, the California
State University shall report, by March  1   15
 of each year, on the following performance measures for the
preceding academic year, to inform budget and policy decisions and
promote the effective and efficient use of available resources: 
   (1) The number of California Community College transfer students
enrolled and the percentage of California Community College transfer
students as a proportion of the total number of undergraduate
students enrolled.  
   (1) 
    (2)  The number of  transfer students enrolled
annually from the California Community Colleges,   new
California Community College transfer students enrolled  and the
percentage of  new California Community College  transfer
students as a proportion of the total  number of new 
undergraduate  student population.   students
enrolled.  
   (2) 
    (3)  The number of low-income students enrolled 
annually  and the percentage of low-income students as a
proportion of the total  student population.  
number of undergraduate students enrolled.  
   (4) The number of new low-income students enrolled and the
percentage of low-income students as a proportion of the total number
of new undergraduate students enrolled.  
   (5) The four-year graduation rate for students who entered the
university four years prior and, separately, for low-income students
in that cohort.  
   (3) 
    (6)  The  systemwide  four-year and
six-year graduation rates for  each cohort of students
  students who entered the university six years prior
 and, separately, for low-income  students. 
 students in that cohort. 
   (7) The two-year transfer graduation rate for students who entered
the university two years prior and, separately, for low-income
students in that cohort.  
   (4) 
    (8)  The  systemwide  two-year and
three-year transfer graduation rates for  each cohort of
students   students who entered the university three
years prior  and, separately, for  each cohort of
low-income students.   low-income students in that
cohort.  
   (9) The two-year, three-year, and four-year transfer graduation
rates for students who entered the university four years prior and,
separately, for low-income students in that cohort.  
   (5) 
    (10)  The number of degree completions annually, in
total and for the following categories:
   (A) Freshman entrants.
   (B)  Transfer   California Community College
transfer    students.
   (C) Graduate students.
   (D) Low-income students. 
   (6) 
    (11)  The percentage of  first-year
undergraduates   freshman entrants  who have earned
sufficient course credits by the end of their first year of
enrollment to indicate  that  they will  complete a
degree in   graduate within  four years. 
   (12) The percentage of California Community College transfer
students who have earned sufficient course credits by the end of
their first year of enrollment to indicate that they will graduate
within two years.  
   (7) 
    (13)  For all students, the total amount of funds
received from all sources identified in subdivision (c) of Section
89290 for the year, divided by the number of degrees awarded that
same year. 
   (8) 
    (14)  For undergraduate students, the total amount of
funds received from all sources identified in subdivision (c) of
Section 89290 for the year expended for undergraduate education,
divided by the number of undergraduate degrees awarded that same
year. 
   (9) 
    (15)  The average number of  California State
University  course credits  and the total course credits,
including credits accrued at other institutions,  accumulated by
 all undergraduate  students  at the time they
complete their degrees, disaggregated by   who
graduated, and separat   ely for  freshman entrants and
 transfers.   California Community College
transfer students.  
   (10) 
    (16)  (A) The number of degree completions in science,
technology, engineering, and mathematics (STEM) fields, 
disaggregated by   in total, and separately for 
undergraduate students, graduate students, and low-income students.
   (B) For purposes of subparagraph (A), "STEM fields" include, but
are not necessarily limited to, all of the following: computer and
information sciences, engineering and engineering technologies,
biological and biomedical sciences, mathematics and statistics,
physical sciences, and science technologies.
   SEC. 23.    Section 89712 is added to the  
Education Code   , to read:  
   89712.  (a) A campus of the California State University, or the
Chancellor of the California State University, or both, shall not
approve a student success fee, as defined in subdivision (d), before
January 1, 2016.
   (b) During the 2014-15 fiscal year, the chancellor shall conduct a
review of the California State University Student Fee Policy
relating to student success fees and recommend to the trustees
changes to the fee policy. In conducting the review and preparing
recommended changes to the fee policy, the chancellor shall consider
all of the following:
   (1) The approval process for student success fees, including, but
not limited to, the benefit of utilizing a student election or the
consultative process in the approval process.
   (2) The need for statewide policies governing a student election,
the consultative process, or both, for approving a proposed student
success fee, including, but not necessarily limited to, policies
requiring campuses to issue a voter pamphlet, or other informational
document, or both, that provides an objective analysis of the
proposed fee, a detailed description of the proposed fee uses,
statements for and against the proposed fee action, and a
notification to students regarding the dates, times, and locations
available to either vote, for purposes of a student election, or
confer with campus leadership, for purposes of the consultative
process, regarding a proposed fee.
   (3) The means to improve transparency and accountability regarding
a campus' use of student success fee funds for the benefit of
members of the campus' community, including, but not necessarily
limited to, students, faculty, staff, and the general public.
   (4) The development of an annual report describing the use of
student success fee funds by each campus in the prior academic year,
to be posted on each campus' Internet Web site.
   (5) The approval of a statewide policy to prohibit a campus from
implementing a student success fee for a period exceeding five years
unless a continuance of that fee is approved by an affirmative vote
of the majority of the student body voting, or through the
consultative process. Approval to continue an approved fee shall be
required every five years.
   (6) The impact of student success fees on campuses' academic
programs and services available for students, including, but not
necessarily limited to, low-income students.
   (7) A provision for financial assistance to offset the cost of the
fee for low-income students.
   (c) (1) The chancellor shall report to the Department of Finance
and the appropriate fiscal and policy committees of the Legislature,
on or before February 1, 2015, regarding the chancellor's proposed
revisions to the California State University Student Fee Policy
related to student success fees.
   (2) This subdivision is inoperative on January 1, 2019, pursuant
to Section 10231.5 of the Government Code.
   (d) For purposes of this section, the following terms have the
following meanings:
   (1) "Low-income student" means an undergraduate student who has an
expected family contribution, as defined in subdivision (g) of
Section 69432.7, at any time during the student's matriculation at
the institution that would qualify the student to receive a federal
Pell Grant. The calculation of a student's expected family
contribution shall be based on the Free Application for Federal
Student Aid (FAFSA) application or an application determined by the
California Student Aid Commission to be equivalent to the FAFSA
application submitted by that applicant.
   (2) A "student success fee" is a type of category II campus-based
mandatory fee that must be paid by a student to enroll or attend a
campus of the California State University, as determined by that
campus or the Chancellor of the California State University. 
   SEC. 24.    Article 5 (commencing with Section 89770)
is added to Chapter 6 of Part 55 of Division 8 of Title 3 of the
  Education Code   , to read:  

      Article 5.  Use of General Fund Support Appropriations for
Capital Expenditures and Capital Outlay Projects


   89770.  (a) (1) The California State University may pledge, in
addition to any of its other revenues that the university chooses to
pledge, its annual General Fund support appropriation less the amount
of that appropriation required to fund general obligation bond
payments and State Public Works Board rental payments, to secure the
payment of debt obligations issued by the Trustees of the California
State University pursuant to the State University Revenue Bond Act of
1947 (Article 2 (commencing with Section 90010) of Chapter 8).
   (2) To the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature.
   (3) The university may fund debt service for capital expenditures
defined in subdivision (b), and the costs or expenses incidental to
the issuance and sale of bonds to finance those costs, including, but
not limited to, capitalized interest on the bonds, from its General
Fund support appropriation pursuant to Sections 89772 and 89773.
   (4) The state hereby covenants with the holders of the university'
s obligations, secured by the pledge of the university authorized by
this section, so long as any of the obligations referred to in this
subdivision remain outstanding, the state will not impair or restrict
the ability of the university to pledge any support appropriation or
support appropriations that may be enacted for the university. The
university may include this covenant of the state in the agreements
or other documents underlying the university's obligations to this
effect.
   (b) For purposes of this section, "capital expenditures" means any
of the following:
   (1) The costs to acquire real property to design, construct, or
equip academic facilities to address seismic and life safety needs,
enrollment growth, or modernization of out-of-date facilities, and
renewal or expansion of infrastructure to serve academic programs.
   (2) The debt service amount associated with refunding, defeasing,
or retiring State Public Works Board lease revenue bonds.
   (3) The costs to design, construct, or equip energy conservation
projects.
   (4) The costs of deferred maintenance of academic facilities and
related infrastructure.

        (c) Nothing in this section shall require the Legislature to
make an appropriation from the General Fund in any specific amount to
support the California State University.
   (d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future
increases in student tuition, additional employee layoffs, or
reductions in employee compensation at the California State
University.
   89771.  (a) The California State University may fund pay-as-you-go
capital outlay projects from its General Fund support appropriation
pursuant to Sections 89772 and 89773.
   (b) For purposes of this section, a "capital outlay project" means
the costs to acquire real property to design, construct, or equip
academic facilities to address seismic and life safety needs,
enrollment growth, or modernization of out-of-date facilities;
renewal or expansion of infrastructure to serve academic programs;
and the costs to design, construct, or equip energy conservation
projects.
   89772.  (a) (1) Commencing with the 2014-15 fiscal year, and for
each fiscal year thereafter, if the California State University plans
to use any of its support appropriation in the annual budget for the
subsequent fiscal year for capital expenditures, pursuant to and as
defined in paragraph (1) of subdivision (b) of Section 89770, for
capital outlay projects pursuant to Section 89771, it shall
simultaneously submit, on or before September 1, 10 months before the
commencement of that fiscal year, a report to the committees in each
house of the Legislature that consider the State Budget, the budget
subcommittees in each house of the Legislature that consider
appropriations for the California State University, and the
Department of Finance.
   (2) The report shall detail the scope of all capital expenditures
and capital outlay projects and how those capital expenditures and
capital outlay projects will be funded, and it shall provide the same
level of detail as a capital outlay budget change proposal.
   (3) The Department of Finance shall review the report and submit,
by February 1, a list of preliminarily approved capital expenditures
and capital outlay projects to the committees in each house of the
Legislature that consider the State Budget and the budget
subcommittees in each house of the Legislature that consider
appropriations for the California State University. These committees
may review and respond to the list of preliminarily approved capital
expenditures and capital outlay projects before April 1.
   (4) The Department of Finance shall submit a final list of
approved capital expenditures and capital outlay projects to the
California State University by no earlier than April 1, three months
before the commencement of the fiscal year of the planned
expenditures.
   (b) The Department of Finance may approve capital expenditures, as
defined in paragraphs (3) and (4) of subdivision (b) of Section
89770, no sooner than 30 days after submitting, in writing, a list of
expenditures being considered for approval to the chairpersons of
the committees in each house of the Legislature that consider
appropriations, the chairpersons of the committees and the
appropriate subcommittees in each house of the Legislature that
consider the State Budget, and the Chairperson of the Joint
Legislative Budget Committee.
   (c) The California State University shall not use its General Fund
support appropriation to fund any capital expenditures, as defined
in paragraphs (1), (3), and (4) of subdivision (b) of Section 89770,
or capital outlay projects defined in subdivision (b) of Section
89771 before receiving approval from the Department of Finance
pursuant to this section.
   (d) (1) For the 2014-15 fiscal year only, if the California State
University plans to use any of its support appropriation in the
annual budget for the 2014-15 fiscal year for capital expenditures
defined in paragraph (1) of subdivision (b) of Section 89770 or for
capital outlay projects pursuant to Section 89771, the California
State University shall simultaneously submit, on or before August 1,
2014, a report to the committees in each house of the Legislature
that consider the State Budget, the budget subcommittees in each
house of the Legislature that consider appropriations for the
California State University, and the Department of Finance. This
report shall detail the scope of all capital expenditures and capital
outlay projects and how those capital expenditures and capital
outlay projects will be funded. This report shall include the same
level of detail as a capital outlay budget change proposal.
   (2) The Department of Finance shall review, by November 1, 2014,
the report and submit a list of preliminarily approved capital
expenditures and capital outlay projects to the committees in each
house of the Legislature that consider the State Budget, and the
budget subcommittees in each house of the Legislature that consider
appropriations for the California State University. These committees
may review and respond to the list of preliminarily approved capital
expenditures and capital outlay projects before December 1, 2014.
   (3) The Department of Finance shall submit a final list of
approved projects to the California State University no earlier than
December 1, 2014.
   (4) The California State University shall not proceed with any
capital expenditures defined in paragraph (1) of subdivision (b) of
Section 89770 or capital outlay projects defined in Section 89771,
before receiving approval from the Department of Finance pursuant to
this subdivision.
   (e) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2015-16 fiscal year, on or before February 1 of
each fiscal year, the California State University shall
simultaneously submit a progress report to the Joint Legislative
Budget Committee and the Department of Finance detailing the scope,
funding, and current status of all capital expenditures undertaken
pursuant to Section 89770 and for all capital outlay projects
undertaken pursuant to Section 89771.
   89773.  The California State University shall manage its debt
programs in a manner so that not more than 12 percent of its General
Fund support appropriation, less the amount of that appropriation
that is required to fund general obligation bond payments and State
Public Works Board rental payments, is used for the total of both of
the following:
   (a) Debt service for capital expenditures pursuant to Section
89770.
   (b) Pay-as-you-go capital outlay projects pursuant to Section
89771.
   89774.  Notwithstanding any other law, excluding Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code, the California State University may proceed with
capital expenditures and capital outlay projects pursuant to Sections
89772 and 89773 without the need for any further limitations or
approvals, except those delineated in Sections 89772 and 89773. 

   SEC. 25.    Section 90083 is added to the  
Education Code   , to read:  
   90083.  The board may pledge revenues received in accordance with
Section 89770 to secure bonds issued in accordance with this article
for capital expenditures, as defined in Section 89770, or for
projects, as defined in Section 90011, and may pay all costs and
expenses incident to the issuance and sale of the bonds, including,
but not limited to, capitalized interested on bonds, from the
proceeds of the sale of the bonds. 
   SEC. 26.    Section 92493 of the   Education
Code   is amended to read: 
   92493.   (a) (1) The University of California may pledge,
along with its other revenues, its annual General Fund support
appropriation less the amount of that appropriation that is required
to fund general obligation bond payments and the State Public Works
Board rental payments, to secure the payment of any of the university'
s general revenue bonds or commercial paper associated with the
general revenue bond program.  
   (2) To the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature.  
   (3) The university may fund debt service for capital expenditures
defined in subdivision (b) from its General Fund support
appropriation pursuant to Sections 92495 and 92495.5.  
   (a) 
    (4)  The  University of California may pledge,
along with its other revenues, its annual General Fund support
appropriation less the amount of that appropriation that is required
to fund general obligation bond payments and the State Public Works
Board rental payments, to secure the payment of any of the university'
s general revenue bonds or commercial paper associated with the
general revenue bond program. To the extent the university pledges
any part of its support appropriation as a source of revenue securing
any obligation, it shall provide that this commitment of revenue is
subject to annual appropriation by the Legislature. The university
may fund debt service for capital expenditures defined in subdivision
(b) from its General Fund support appropriation pursuant to Sections
92495 and 92495.5. The  state hereby covenants with the
holders of the university's obligations secured by the pledge of the
university permitted by this section that, so long as any of the
obligations referred to in this subdivision remain outstanding, the
state will not impair or restrict the ability of the university to
pledge any support appropriation or support appropriations that may
be enacted for the university. The university may include this
covenant of the state in the agreements or other documents underlying
the university's obligations to this effect. 
   (b) For purposes of this section, "capital expenditures" means any
of the following:  
   (b) 
    (1)   For purposes of this section, "capital
expenditures" shall mean (1) the   The  
costs to design, construct, or equip academic facilities to address
seismic and life safety needs, enrollment growth, or modernization of
out-of-date facilities, and renewal or expansion of infrastructure
to serve academic  programs, or (2) the debt service amount
associated with refunding, defeasing, or retiring State Public Works
Board lease revenue bonds.   programs.  
   (2) The debt service amount associated with refunding, defeasing,
or retiring State Public Works Board lease revenue bonds.  
   (3) The costs to design, construct, or equip energy conservation
projects. 
   (c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount to
support the University of California.
   (d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future
increases in student tuition, additional employee layoffs, or
reductions in employee compensation at the University of California.
   SEC. 27.    Section 92494 of the   Education
Code   is amended to read: 
   92494.  (a) The University of California may fund pay-as-you-go
capital outlay projects from its General Fund support appropriation
pursuant to Sections 92495 and 92495.5. 
   (b) For purposes of this section, "capital outlay project" means
both of the following:  
   (b) 
    (1)   For purposes of this section, "capital
outlay project" shall mean the   The   
costs to design, construct, or equip academic facilities to address
seismic and life safety needs, enrollment growth, or modernization of
out-of-date facilities, and renewal or expansion of infrastructure
to serve academic programs. 
   (2) The costs to design, construct, or equip energy conservation
projects. 
   SEC. 28.    Section 92495 of the   Education
Code   is amended to read: 
   92495.  (a)  (1)    Commencing with the 2013-14
fiscal year and for each fiscal year thereafter, if the University of
California plans to use any of its support appropriation in the
annual budget for the subsequent fiscal year for capital expenditures
pursuant to Section 92493, as defined in paragraph (1) of
subdivision (b) of that section, or for capital outlay projects
pursuant to Section 92494,  as defined in paragraph (1) of
subdivision (b) of that section,  it shall simultaneously
submit, on or before September  1 nine   1, 10
 months before the commencement of that fiscal year, a report to
the Joint Legislative Budget Committee and the Department of
Finance.  This report shall detail the scope of each capital
outlay project or expenditure and how it will be funded, and it shall
provide the same level of detail as a capital outlay budget change
proposal. The Department of Finance shall review the report and
submit a list of preliminarily approved projects to the Joint
Legislative Budget Committee by February 1. The Department of Finance
shall submit a final list of approved projects to the University of
California no earlier than April 1, three months before the
commencement of the fiscal year of the planned expenditures. The
University of California shall not proceed with any capital
expenditures pursuant to Section 92493, as defined in paragraph (1)
of subdivision (b) of that section, or capital outlay projects
pursuant to Section 92494, prior to receiving approval from the
Department of Finance pursuant to this subdivision.  
   (2) The report shall detail the scope of capital expenditures or
the capital outlay project and how the capital expenditures or the
capital outlay project will be funded, and it shall provide the same
level of detail as a capital outlay budget change proposal. 

   (3) The Department of Finance shall review the report and submit a
list of preliminarily approved capital expenditures and capital
outlay projects to the Joint Legislative Budget Committee by February
1. The Department of Finance shall submit a final list of approved
capital expenditures and capital outlay projects to the University of
California no earlier than April 1, three months before the
commencement of the fiscal year of the planned expenditures. 

   (b) The Department of Finance may approve capital expenditures
defined in paragraph (3) of subdivision (b) of Section 92493, or
capital outlay projects defined in paragraph (2) of subdivision (b)
of Section 92494, no sooner than 30 days after submitting, in
writing, a list of expenditures and projects being considered for
approval to the chairpersons of the committees in each house of the
Legislature that consider appropriations, the chairpersons of the
committees and the appropriate subcommittees in each house of the
Legislature that consider the state budget, and the Chairperson of
the Joint Legislative Budget Committee.  
   (c) The University of California shall not use its General Fund
support appropriation to fund a capital expenditure defined in
paragraph (1) or (3) of subdivision (b) of Section 92493, or capital
outlay project defined in subdivision (b) of Section 92494, before
receiving approval from the Department of Finance pursuant to this
section.  
   (b) 
    (d)   (1)    For the 2013-14 fiscal
year only, if the University of California plans to use any of its
support appropriation in the annual budget for the 2013-14 fiscal
year for capital expenditures pursuant to Section 92493, as defined
in paragraph (1) of subdivision (b) of that section, or for capital
outlay projects pursuant to Section 92494, it shall simultaneously
submit, on or before August 1 of that fiscal year, a report to the
Joint Legislative Budget Committee and the Department of Finance.
This report shall detail the scope of each capital outlay project or
expenditure and how it will be funded, and it shall provide the same
level of detail as a capital outlay budget change proposal. 
The Department of Finance shall review the report and submit a list
of preliminarily approved projects to the Joint Legislative Budget
Committee by November 1 of that fiscal year. The Department of
Finance shall submit a final list of approved projects to the
University of California no earlier than December 1 of that fiscal
year. The University of California shall not proceed with any capital
expenditures pursuant to Section 92493, as defined in paragraph (1)
of subdivision (b) of that section, or capital outlay projects
pursuant to Section 92494, prior to receiving approval from the
Department of Finance pursuant to this subdivision.  
   (2) The Department of Finance shall review the report and submit a
list of preliminarily approved projects to the Joint Legislative
Budget Committee by November 1 of that fiscal year.  
   (3) The Department of Finance shall submit a final list of
approved projects to the University of California no earlier than
December 1 of that fiscal year.  
   (4) The University of California shall not proceed with any
capital expenditures pursuant to Section 92493, as defined in
paragraph (1) of subdivision (b) of that section, or capital outlay
projects pursuant to Section 92494, before receiving approval from
the Department of Finance pursuant to this subdivision. 

   (c) 
    (e)  Notwithstanding subdivision (b), the University of
California may use the authority provided in Section 92493 for the
Merced Classroom and Academic Office Building, as specified in
Provision 3 of Item 6440-001-0001 of Section 2.00 of the Budget Act
of 2013. 
   (d) 
    (f)  Notwithstanding Section 10231.5 of the Government
Code, commencing with the 2014-15 fiscal year, on or before February
1 of each fiscal year, the University of California shall
simultaneously submit a progress report to the Joint Legislative
Budget Committee and the Department of Finance detailing the scope,
funding, and current status of  each   all 
capital  expenditure   expenditures 
undertaken pursuant to Section  92493, as defined in
paragraph (1) of subdivision (b) of that section,  92493
 and for  each   all  capital outlay
 project   projects  undertaken pursuant to
Section 92494.
   SEC. 29.    Section 92495.5 of the  
Education Code   is amended to read: 
   92495.5.  The university shall manage its general revenue bond
program in a manner so that not more than 15 percent of its General
Fund support appropriation, less the amount of that appropriation
that is required to fund general obligation bond payments and State
Public Works Board rental payments, is used for the total of all of
the following:
   (a) Debt service for capital expenditures pursuant to Section
92493.
   (b) Pay-as-you-go capital outlay  projects  pursuant to
Section 92494.
   (c) State Public Works Board rental payments.
   SEC. 30.    Section 92495.6 is added to the 
 Education Code   , to read:  
   92495.6.  Notwithstanding Sections 13332.11 and 13332.19 of the
Government Code or any other law, the University of California may
proceed with capital expenditures and capital outlay projects
pursuant to Sections 92495 and 92495.5 without any further
limitations or approvals, except those delineated in Sections 92495
and 92495.5. 
   SEC. 31.    Section 92675 of the   Education
Code   is amended to read: 
   92675.  (a) For purposes of this section, the following terms are
defined as follows:
   (1) The "four-year graduation rate" means the percentage of a
cohort  that   of undergraduate students who
 entered the university as freshmen  that successfully
  at any campus and  graduated  from any campus
 within four years.
   (2) The "two-year transfer graduation rate" means the percentage
of a cohort  that   of undergraduate students
who  entered the university  at any campus  as
junior-level transfer students from the California Community Colleges
 that successfully   and  graduated 
from any campus  within two years.
   (3) "Low-income  students"  student" 
means  students   an undergraduate student 
who  receive a Pell Grant   has an expected
family contribution, as defined in subdivision (g) of Section
69432.7,  at any time during  their   the
student's  matriculation at the  institution. 
 institution that would qualify the student to receive a federal
Pell Grant. The calculation of a student's expected family
contribution shall be based on the Free Application for Federal
Student Aid (FAFSA) application or an application determined by the
California Student Aid Commission to be equivalent to the FAFSA
application submitted by that applicant. 
   (b) Commencing with the 2013-14 academic year, the University of
California shall report, by March  1  15 
of each year, on the following performance measures for the preceding
academic year, to inform budget and policy decisions and promote the
effective and efficient use of available resources:
   (1) The number of transfer students enrolled  annually
 from the California Community Colleges, and the percentage
of  California Community College  transfer students as a
proportion of the total  number of  undergraduate 
student population.   students enrolled.  
   (2) The number of new transfer students enrolled from the
California Community Colleges, and the percentage of California
Community College transfer students as a proportion of the total
number of new undergraduate students enrolled.  
   (2) 
    (3)  The number of low-income students enrolled 
annually  and the percentage of low-income students as a
proportion of the total  student population.  
number of undergraduate students enrolled.  
   (3) 
    (4)  The  systemwide four-year graduation rates
for each cohort of   number of new low-income 
students  and, separately, for each cohort  
enrolled and the percentage  of low-income  students.
  students as a proportion of the total number of new
undergraduate students enrolled.  
   (5) The four-year graduation rate for students who entered the
university four years prior and, separately, for low-income students
in that cohort.  
   (4) 
    (6)  The  systemwide  two-year transfer
graduation  rates   rate  for 
each cohort of students  stu   dents who
entered the university two years prior  and, separately, for
 each cohort of low-income students.  
low-income students in that cohort.  
   (5) 
    (7)  The number of degree  completions annually,
  completions,  in total and for the following
categories:
   (A) Freshman entrants.
   (B)  Transfer   California Community College
transfer    students.
   (C) Graduate students.
   (D) Low-income students. 
   (6) 
    (8)  The percentage of  first-year
undergraduates   freshman entrants  who have earned
sufficient course credits by the end of their first year of
enrollment to indicate they will  complete a degree in
  graduate within  four years. 
   (9) The percentage of California Community College transfer
students who have earned sufficient course credits by the end of
their first year of enrollment to indicate they will graduate within
two years.  
   (7) 
    (10)  For all students, the total amount of funds
received from all sources identified in subdivision (c) of Section
92670 for the year, divided by the number of degrees awarded that
same year. 
   (8) 
    (11)  For undergraduate students, the total amount of
funds received from the sources identified in subdivision (c) of
Section 92670 for the year expended for undergraduate education,
divided by the number of undergraduate degrees awarded that same
year. 
   (9) 
    (12)  The average number of  University of
California  course credits  and total course credits,
including credit accrued at other institutions,  accumulated by
 all undergraduate  students  at the time they
complete their degrees, disaggregated by   who
graduated, and separately for  freshman entrants and 
transfers.   California Community College transfer
students.  
   (10) 
    (13)  (A) The number of degree completions in science,
technology, engineering, and mathematics (STEM) fields, 
disaggregated by   in total, and separately for 
undergraduate students, graduate students, and low-income students.
   (B) For purposes of subparagraph (A), "STEM fields" include, but
are not necessarily limited to, all of the following: computer and
information sciences, engineering and engineering technologies,
biological and biomedical sciences, mathematics and statistics,
physical sciences, and science technologies.
                                                      SEC. 32.
   Chapter 15 (commencing with Section 92985) is added to
Part 57 of Division 9 of Title 3 of the   Education Code
  , to read:  
      CHAPTER 15.  THE CALIFORNIA BLUEPRINT FOR RESEARCH TO ADVANCE
INNOVATIONS IN NEUROSCIENCE ACT OF 2014


   92985.  This act shall be known, and may be cited, as the
California Blueprint for Research to Advance Innovations in
Neuroscience (Cal-BRAIN) Act of 2014.
   92985.5.  (a) In April 2013, President Obama unveiled the Brain
Research through Advancing Innovative Neurotechnologies (BRAIN)
Initiative -- a collaborative program that will map the activity of
every neuron in the human brain with a programmed total investment of
more than three hundred million dollars ($300,000,000) per year over
10 years.
   (b) The BRAIN Initiative is launching with approximately one
hundred ten million dollars ($110,000,000) in funding for research in
2014, as well as additional private sector investment from
institutes and foundations based in California.
   (c) California is poised to be a world leader in this research
effort given the prominent role of scientists and industry leaders
throughout the state.
   (d) Four of the six scientists who proposed the BRAIN Initiative
and six of the 15 members of the Advisory Committee to the Director
of the National Institutes of Health for the BRAIN Initiative are
from California.
   (e) Some California-based corporations have indicated they are
interested in collaborating with brain research institutions on
research for the BRAIN Initiative to bring new discoveries to the
marketplace.
   (f) The BRAIN Initiative has the potential to be a major driver of
new industries and jobs in biotechnology, artificial intelligence,
and information technologies, as well as a catalyst for major
breakthroughs in brain-related diseases, injuries, and illnesses,
including Alzheimer's disease, which is programmed to cost California
over thirty billion dollars ($30,000,000,000) a year by 2030.
   (g) The products of scientific research improve the quality of our
lives and health and provide us with high-quality jobs that employ
and demand a highly skilled workforce.
   (h) Given California's assets and capacity for collaboration,
entrepreneurship, and innovation, a state investment to expand and
accelerate this research in the state and to promote the translation
of breakthroughs into the marketplace is an important investment in
the intellectual infrastructure for California's economic future.
   92986.  (a) The Regents of the University of California are
requested to establish the Cal-BRAIN program to leverage California's
vast research assets and the federal BRAIN Initiative's funding
opportunities to accelerate the development of brain mapping
techniques, including the development of new technologies, which will
create new, high-paying jobs in California while advancing patient
care and improving lives, in order to achieve the following goals:
   (1) Maintain California's leadership role in neuroscience
innovation.
   (2) Develop a dynamic map of the human brain that provides
researchers, physicians, and engineers with the knowledge necessary
to develop new treatments and  technologies that will improve lives
and reduce the costs of providing health care.
   (3) Grow California's economy through the expansion of California'
s high technology and biotechnology sectors.
   (4) Train the next generation of scientists for the neuroscience
and engineering jobs of the future.
   (b) The University of California is requested to utilize
California's unique collaborative research environment by convening
stakeholders from public and private research institutions, national
laboratories, biotechnology and high technology companies, and
venture capital firms to develop the governing structure for the
Cal-BRAIN program.
   (c) The governing structure shall be designed to do all of the
following:
   (1) Adopt a research plan that identifies milestones for achieving
the goals of the Cal-BRAIN program.
   (2) Establish competitive, merit-based opportunities for
interested public and private California research institutions and
national laboratories to apply for Cal-BRAIN program funding.
   (3) Maintain the flexibility to adjust the Cal-BRAIN program's
priorities and focus based upon knowledge gained from scientific
discoveries.
   (4) Establish a technology transfer program to identify and
accelerate the commercial application of both early and late-stage
discoveries and technologies from the Cal-BRAIN program into the
marketplace and to promote new and expanded technology sectors in the
state.
   (5) Solicit contributions to the Cal-BRAIN program with a goal of
achieving a nonstate funding match that meets or exceeds the
financial investment by the state.
   92987.  The Regents of the University of California are requested
to provide information about the Cal-BRAIN program through an
Internet Web site, including a brief description of funded projects
and activities.
   92988.  This chapter shall be implemented only to the extent that
adequate funding for its purposes, as determined by the Regents of
the University of California, is appropriated to the University of
California in the annual Budget Act or other statute. 
   SEC. 33.    Section 94102.1 is added to the 
 Education Code   , to read:  
   94102.1.  In addition to the definition provided in Section 94110,
"student loan" may also mean loan assumptions pursuant to Article 5
(commencing with Section 69612) of Chapter 2 of Part 42 of Division
5. 
   SEC. 34.    Section 17581.7 of the  
Government Code   is amended to read: 
   17581.7.  (a) Funding apportioned pursuant to this section shall
constitute reimbursement pursuant to Section 6 of Article XIII B of
the California Constitution for the performance of any state mandates
included in the statutes and executive orders identified in
subdivision (e).
   (b) Any community college district may elect to receive block
grant funding pursuant to this section.
   (c) (1) A community college district that elects to receive block
grant funding pursuant to this section in a given fiscal year shall
submit a letter requesting funding to the Chancellor of the
California Community Colleges on or before August 30 of that fiscal
year.
   (2) The Chancellor of the California Community Colleges shall
apportion, in the month of November of each year, block grant funding
appropriated in Item 6870-296-0001 of Section 2.00 of the annual
Budget Act to all community college districts that submitted letters
requesting funding in that fiscal year according to the provisions of
that item.
   (3) A community college district that receives block grant funding
pursuant to this section shall not be eligible to submit claims to
the Controller for reimbursement pursuant to Section 17560 for any
costs of any state mandates included in the statutes and executive
orders identified in subdivision (e) incurred in the same fiscal year
during which the community college district received funding
pursuant to this section.
   (d) All funding apportioned pursuant to this section is subject to
annual financial and compliance audits required by Section 84040 of
the Education Code.
   (e) Block grant funding apportioned pursuant to this section is
specifically intended to fund the costs of the following programs:
   (1) Agency Fee Arrangements (00-TC-17 and 01-TC-14; Chapter 893 of
the Statutes of 2000; and Chapter 805 of the Statutes of 2001).
   (2) Cal Grants (02-TC-28; Chapter 403 of the Statutes of 2000).
   (3) California State Teachers' Retirement System (CalSTRS) Service
Credit (02-TC-19; Chapter 603 of the Statutes of 1994; Chapters 383,
634, and 680 of the Statutes of 1996; Chapter 838 of the Statutes of
1997; Chapter 965 of the Statutes of 1998; Chapter 939 of the
Statutes of 1999; and Chapter 1021 of the Statutes of 2000).
   (4) Collective Bargaining and Collective Bargaining Agreement
Disclosure (CSM 4425 and 97-TC-08; Chapter 961 of the Statutes of
1975; Chapter 1213 of the Statutes of 1991). 
   (5) Community College Construction (02-TC-47; Chapter 910 of the
Statutes of 1980; Chapters 470 and 891 of the Statutes of 1981;
Chapter 973 of the Statutes of 1988; Chapter 1372 of the Statutes of
1990; Chapter 1038 of the Statutes of 1991; and Chapter 758 of the
Statutes of 1995).  
   (6) 
    (5)  Discrimination Complaint Procedures (02-TC-42 and
portions of 02-TC-25 and 02-TC-31; Chapter 1010 of the Statutes of
1976; Chapter 470 of the Statutes of 1981; Chapter 1117 of the
Statutes of 1982; Chapter 143 of the Statutes of 1983; Chapter 1371
of the Statutes of 1984; Chapter 973 of the Statutes of 1988; Chapter
1372 of the Statutes of 1990; Chapter 1198 of the Statutes of 1991;
Chapter 914 of the Statutes of 1998; Chapter 587 of the Statutes of
1999; and Chapter 1169 of the Statutes of 2002). 
   (7) 
    (6)  Enrollment Fee Collection and Waivers (99-TC-13 and
00-TC-15). 
   (8) 
    (7)  Health Fee Elimination (CSM 4206; Chapter 1 of the
Statutes of 1984, Second Extraordinary Session). 
   (9) 
    (8)  Minimum Conditions for State Aid (02-TC-25 and
02-TC-31; Chapter 802 of the Statutes of 1975; Chapters 275, 783,
1010, and 1176 of the Statutes of 1976; Chapters 36 and 967 of the
Statutes of 1977; Chapters 797 and 977 of the Statutes of 1979;
Chapter 910 of the Statutes of 1980; Chapters 470 and 891 of the
Statutes of 1981; Chapters 1117 and 1329 of the Statutes of 1982;
Chapters 143 and 537 of the Statutes of 1983; Chapter 1371 of the
Statutes of 1984; Chapter 1467 of the Statutes of 1986; Chapters 973
and 1514 of the Statutes of 1988; Chapters 1372 and 1667 of the
Statutes of 1990; Chapters 1038, 1188, and 1198 of the Statutes of
1991; Chapters 493 and 758 of the Statutes of 1995; Chapters 365,
914, and 1023 of the Statutes of 1998; Chapter 587 of the Statutes of
1999; Chapter 187 of the Statutes of 2000; and Chapter 1169 of the
Statutes of 2002). 
   (10) 
    (9)  Prevailing Wage Rate (01-TC-28; Chapter 1249 of the
Statutes of 1978). 
   (10) Public Contracts (02-TC-35; Chapter 1073 of the Statutes of
1985; Chapter 1408 of the Statutes 1988; Chapter 330 of the Statutes
of 1989; Chapter 1414 of the Statutes of 1990; Chapter 321 of the
Statutes of 1990; Chapter 799 of the Statutes of 1992; and Chapter
726 of the Statutes of 1994). 
   (11) Reporting Improper Governmental Activities (02-TC-24; Chapter
416 of the Statutes of 2001; and Chapter 81 of the Statutes of
2002).
   (12) Threats Against Peace Officers (CSM 96-365-02; Chapter 1249
of the Statutes of 1992; and Chapter 666 of the Statutes of 1995).
   (13) Tuition Fee Waivers (02-TC-21; Chapter 36 of the Statutes of
1977; Chapter 580 of the Statutes of 1980; Chapter 102 of the
Statutes of 1981; Chapter 1070 of the Statutes of 1982; Chapter 753
of the Statutes of 1988; Chapters 424, 900, and 985 of the Statutes
1989; Chapter 1372 of the Statutes of 1990; Chapter 455 of the
Statutes of 1991; Chapter 8 of the Statutes of 1993; Chapter 389 of
the Statutes of 1995; Chapter 438 of the Statutes of 1997; Chapter
952 of the Statutes of 1998; Chapters 571 and 949 of the Statutes of
2000; Chapter 814 of the Statutes of 2001; and Chapter 450 of the
Statutes of 2002).
   (f) Notwithstanding Section 10231.5, on or before November 1 of
each fiscal year, the Chancellor of the California Community Colleges
shall produce a report that indicates the total amount of block
grant funding each community college district received in the current
fiscal year pursuant to this section. The chancellor shall provide
this report to the appropriate fiscal and policy committees of the
Legislature, the Controller, the Department of Finance, and the
Legislative Analyst's Office.
   SEC. 35.    Section 68926.3 of the  
Government Code   is amended to read: 
   68926.3.  (a) Notwithstanding any other  provision of
 law, sixty-five dollars ($65) of each fee collected in a
civil case by the clerk of each court of appeal pursuant to
subdivision (a) of Section 68926 shall be paid into the State
Treasury for deposit in a special account in the General Fund to be
known as the California State Law Library Special Account, which
account is hereby established.
   (b) Moneys deposited in the California State Law Library Special
Account shall be available for the support of the California State
Law Library upon appropriation thereto by the Legislature in the
annual Budget Act.
   (c) This section shall remain in effect only until January 1,
 2015,   2020,  and as of that date, is
repealed, unless a later statute that is enacted before that date
extends or repeals that date.
   SEC. 36.    Section 13146 of the   Health
and Safety Code   is amended to read: 
   13146.  The responsibility for enforcement of building standards
adopted by the State Fire Marshal and published in the California
Building Standards Code relating to fire and panic safety and other
regulations of the State Fire Marshal shall be as follows:
   (a) The city, county, or city and county with jurisdiction in the
area affected by the standard or regulation shall delegate the
enforcement of the building standards relating to fire and panic
safety and other regulations of the State Fire Marshal as they relate
to R-3 dwellings, as described in Section  1201 
 310.5  of Part 2 of the California Building Standards Code,
to either of the following:
   (1) The chief of the fire authority of the city, county, or city
and county, or his or her authorized representative.
   (2) The chief building official of the city, county, or city and
county, or his or her authorized representative.
   (b) The chief of any city, county, or city and county fire
department or of any fire protection district, and their authorized
representatives, shall enforce within its jurisdiction the building
standards and other regulations of the State Fire Marshal, except
those described in subdivision (a) or (d).
   (c) The State Fire Marshal shall have authority to enforce the
building standards and other regulations of the State Fire Marshal in
areas outside of corporate cities and districts providing fire
protection services.
   (d) The State Fire Marshal shall have authority to enforce the
building standards and other regulations of the State Fire Marshal in
corporate cities and districts providing fire protection services
upon request of the chief fire official or the governing body.
   (e) The State Fire Marshal shall enforce the building standards
and other regulations of the State Fire Marshal on all University of
California campuses and properties administered or occupied by the
University of  California.   California and on
all California State University campuses and properties administered
or occupied by the California State University.  For each
university campus or property the State Fire Marshal may delegate
that responsibility to the person of his or her choice who shall be
known as the Designated Campus Fire Marshal.
   (f) Any fee charged pursuant to the enforcement authority of this
section shall not exceed the estimated reasonable cost of providing
the service for which the fee is charged, pursuant to Section 66014
of the Government Code.
  SEC. 37.    Section 10726 of the   Public
Contract Code   is amended to read: 
   10726.  The trustees may receive bids for the construction of
several public works projects at  one campus of  the
California State University as a single project. Where more than one
appropriation has been made for the several projects united as a
single project under the provisions of this section, payments for the
single project shall be made from the separate appropriations on
such proportional basis as may be determined by the trustees and
approved by the Department of Finance.
   SEC. 38.    Section 10742 of the   Public
Contract Code   is amended to read: 
   10742.   When   If    it
appears that the estimated contract price will exceed fifteen
thousand dollars ($15,000), public notice to bidders shall be given
by publication once a week for at least two consecutive weeks, or
once a week for more than two consecutive weeks if such longer period
of advertising is deemed necessary by the trustees, next preceding
the day set for the receiving of bids:
   (a) In two trade papers of general circulation, one published in
Los Angeles and one in San Francisco, devoted primarily to the
dissemination of contract and building news among contracting and
building material supply firms; or
   (b) In  the discretion of the trustees, in  one
newspaper of general circulation published in the county in which the
major portion of the project is located, and in one such trade paper
published in the county group, as defined in Section 187 of the
Streets and Highways Code, in which the work is to be  done.
  done; or  
   (c) Electronically on the California State University's Internet
Web site. 
   SEC. 39.    The balances of the appropriations
provided by Item 6870-139-8080 of Section 2.00 of the Budget Act of
2013, as added by Chapters 20 and 354 of the Statutes of 2013,
payable from the Clean Energy Job Creation Fund, are hereby
reappropriated for the purposes of, and subject to, that item, and,
notwithstanding any other law, shall be available for encumbrance
until June 30, 2018. 
   SEC. 40.    (a) On or before June 30, 2015, an amount
to be determined by the Director of Finance shall be appropriated
from the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2014.  
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that revenues distributed to community
colleges pursuant to Sections 34177, 34179.5, 34179.6, and 34188 of
the Health and Safety Code are less than the estimated amount
reflected in the Budget Act of 2014, as determined by the Director of
Finance.  
   (c) On or before June 30, 2015, the Director of Finance shall
determine if the revenues distributed to community college districts
pursuant to Sections 34177, 34179.5, 34179.6, and 34188 of the Health
and Safety Code exceed the estimated amount reflected in the Budget
Act of 2014 and shall reduce Schedule (1) of Item 6870-101-0001 of
Section 2.00 of the Budget Act of 2014 by the amount of that excess.
 
   (d) In making the determinations pursuant to subdivisions (b) and
(c), the Director of Finance shall consider any other local property
tax revenues and student fee revenues collected in excess or in
deficit of the estimated amounts reflected in the Budget Act of 2014.
 
   (e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
property tax shortfall determined pursuant to subdivision (b) or the
amount of the reduction made pursuant to subdivision (c). The
Controller shall make the funds available not sooner than five days
after this notification and the Chancellor of the California
Community Colleges shall work with the Controller to allocate these
funds to community college districts as soon as practicable. 

   (f) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202 of the Education Code, for the
2014-15 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2014-15 fiscal year. 
   SEC. 41.    (a) On or before June 30, 2015, an amount
to be determined by the Director of Finance shall be appropriated
from the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2014.  
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that offsetting revenues distributed to
community colleges pursuant to subparagraph (A) of paragraph (3) of
subdivision (e) of Section 36 of Article XIII of the California
Constitution are less than the estimated amount reflected in the
Budget Act of 2014, as determined by the Director of Finance. 

   (c) On or before June 30, 2015, the Director of Finance shall
determine if the offsetting revenues distributed to community college
districts pursuant to subparagraph (A) of paragraph (3) of
subdivision (e) Section 36 of Article XIII of the California
Constitution exceed the estimated amount reflected in the Budget Act
of 2014, and shall reduce Schedule (1) of Item 6870-101-0001 of
Section 2.00 of the Budget Act of 2014 by that same amount. 

   (d) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
Education Protection Account shortfall determined pursuant to
subdivision (b) or the amount of the reduction made pursuant to
subdivision (c). The Controller shall make the funds available not
sooner than five days after this notification and the Office of the
Chancellor of the California Community Colleges shall work with the
Controller to allocate these funds to community college districts as
soon as practicable.  
   (e) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202 of the Education Code, for the
2014-15 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2014-15 fiscal year. 
   SEC. 42.    (a) On or before June 30, 2015, an amount
to be determined by the Director of Finance shall be appropriated
from the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2013.  
   (b) The funds appropriated in subdivision (a) shall only be
available for revenues distributed to a net excess tax community
college district pursuant to subparagraph (A) of paragraph (3) of
subdivision (e) of Section 36 of Article XIII of the California
Constitution, as determined by the Director of Finance.  
   (c) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a), and the amount needed to
address the Education Protection Account shortfall determined
pursuant to subdivision (b). The Controller shall make the funds
available not sooner than five days after this notification and the
Office of the Chancellor of the California Community Colleges shall
work with the Controller to allocate these funds to community college
districts as soon as practicable.  
   (d) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202 of the Education Code, for the
2013-14 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2013-14 fiscal year. 
   SEC. 43.    (a) On or before June 30, 2015, an amount
to be determined by the Director of Finance shall be appropriated
from the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of
                         2012.  
   (b) The funds appropriated in subdivision (a) shall only be
available for revenues distributed to a net excess tax community
college district pursuant to subparagraph (A) of paragraph (3) of
subdivision (e) of Section 36 of Article XIII of the California
Constitution, as determined by the Director of Finance.  
   (c) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a), and the amount needed to
address the Education Protection Account shortfall determined
pursuant to subdivision (b). The Controller shall make the funds
available not sooner than five days after this notification and the
Office of the Chancellor of the California Community Colleges shall
work with the Controller to allocate these funds to community college
districts as soon as practicable.  
   (d) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202 of the Education Code, for the
2012-13 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2012-13 fiscal year. 
   SEC. 44.    Notwithstanding subdivisions (a), (b),
and (c) of Section 92495 of the Education Code, the University of
California may use General Fund appropriations pursuant to Sections
92493 and 92494 of the Education Code for the Tolman Hall Seismic
Replacement Building project at the University of California,
Berkeley campus, as described in a letter from the university to the
Director of Finance and the Chairperson of the Joint Legislative
Budget Committee dated March 17, 2014. 
   SEC. 45.    In regard to Section 18 of this act, the
Legislature finds and declares that a special law is necessary and
that a general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the unique accreditation and fiscal challenges facing the San
Francisco Community College District. 
   SEC. 46.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 
   SEC. 47.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.