Amended in Assembly June 26, 2014

Amended in Senate May 27, 2014

Amended in Senate May 6, 2014

Amended in Senate April 21, 2014

Amended in Senate March 25, 2014

Senate BillNo. 1028


Introduced by Senator Jackson

(Coauthor: Assembly Member Williams)

February 14, 2014


An act to amend Section 69439 of the Education Code,begin insert and to amend Section 1095 of the Unemployment Insurance Code,end insert relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

SB 1028, as amended, Jackson. Student financial aid: Cal Grant C awards.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, establishes the Cal Grant C program under the administration of the Student Aid Commission and establishes eligibility requirements for awards under this program. The act requires that a Cal Grant C award be used only for occupational or technical training, as defined, in a course of not less than 4 months. The act requires the commission, after consultation with state and federal agencies, to determine the areas of occupational or technical training for which Cal Grant C awards shall be awarded. Existing law also requires the Student Aid Commission to develop, and regularly review and update at least every 5 years, the areas of occupational or technical training for which students may utilize Cal Grant C awards and to give priority in granting the awards to students pursuing occupational or technical training in areas that meet specified criteria. The act requires the commission to give priority in granting the awards to students pursuing occupational or technical training in areas that meet specified criteria.

This bill would revise and recast the act in regard to Cal Grant C awards to, among other things, require the commission to give special consideration to the social and economic situations of the students applying for the grants, giving additional weight to applicants facing specified challenges. In determining the individual award amounts, the bill would additionally require the commission to take into account the financial means available to the student to fund his or her course of study and costs of attendance. The bill would revise the criteria that areas of occupational or technical training are required to meet to be given priority for awards, as specified. The bill would require the commission, in consultation with specified entities, for purposes of the Cal Grant C program, to prioritize occupational training programs and industry clusters. The bill would require the commission to consult with specified public entities to develop a plan to publicize the grant award program to California’s long-term unemployed to be used by those specified public entities when they come into contact with members of the population who are likely to be experiencing long-term unemployment and would require the commission to develop a plan to make students receiving awards aware of job search and placement services available through specified public entities. The bill would specify that the local workforce investment boards are required to participate in the outreach efforts only to the extent that the those efforts are a part of their existing responsibilities under federal law.

begin insert

Existing law authorizes the Director of Employment Development to use information in his or her possession to the extent necessary to achieve specified purposes.

end insert
begin insert

This bill would authorize the director, to the extent permitted by federal law and regulations, to provide the commission with wage information to verify the employment status of an individual applying for a Cal Grant C award.

end insert

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

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

P3    1

SECTION 1.  

Section 69439 of the Education Code is amended
2to read:

3

69439.  

(a) For the purposes of this section, the following terms
4have the following meanings:

5(1) “Career pathway” has the same meaning as set forth in
6Section 88620.

7(2) “Economic security” has the same meaning as set forth in
8Section 14005 of the Unemployment Insurance Code.

9(3) “Industry cluster” has the same meaning as set forth in
10Section 88620.

11(4) “Long-term unemployed” means, with respect to an award
12applicant, a person who has been unemployed for more than 26
13weeks at the time of submission to the commission of his or her
14application.

15(5) “Occupational or technical training” means that phase of
16education coming after the completion of a secondary school
17program and leading toward recognized occupational goals
18approved by the commission.

19(b) A Cal Grant C award shall be utilized only for occupational
20or technical training in a course of not less than four months. There
21shall be the same number of Cal Grant C awards each year as were
22made in the 2000-01 fiscal year. The maximum award amount
23and the total amount of funding shall be determined each year in
24the annual Budget Act.

25(c) The commission may use criteria it deems appropriate in
26selecting students to receive grants for occupational or technical
27training and shall give special consideration to the social and
28economic situations of the students applying for these grants, giving
29additional weight to disadvantaged applicants, applicants who face
30economic hardship, and applicants who face particular barriers to
31employment. Criteria to be considered for these purposes shall
32include, but are not limited to, all of the following:

33(1) Family income and household size.

34(2) Student’s or the students’ parent’s household status,
35including whether the student is a single parent or child of a single
36parent.

P4    1(3) The employment status of the applicant and whether the
2applicant is unemployed, giving greater weight to the long-term
3unemployed.

4(d) The Cal Grant C award recipients shall be eligible for
5renewal of their grants until they have completed their occupational
6or technical training in conformance with terms prescribed by the
7commission. A determination by the commission for a subsequent
8award year that the program under which a Cal Grant C award was
9initially awarded is no longer deemed to receive priority shall not
10affect an award recipient’s renewal. In no case shall the grants
11exceed two calendar years.

12(e) Cal Grant C awards may be used for institutional fees,
13charges, and other costs, including tuition, plus training-related
14costs, such as special clothing, local transportation, required tools,
15equipment, supplies, books, and living expenses. In determining
16the individual award amounts, the commission shall take into
17account the financial means available to the student to fund his or
18her course of study and costs of attendance as well as other state
19and federal programs available to the applicant.

20(f) (1) To ensure alignment with the state’s dynamic economic
21needs, the commission, in consultation with appropriate state and
22federal agencies, including the Economic and Workforce
23Development Division of the Office of the Chancellor of the
24California Community Colleges and the California Workforce
25Investment Board, shall identify areas of occupational and technical
26training for which students may utilize Cal Grant C awards. The
27commission, to the extent feasible, shall also consult with
28representatives of the state’s leading competitive and emerging
29industry clusters, workforce professionals, and career technical
30educators, to determine which occupational training programs and
31industry clusters should be prioritized.

32(2) (A) Except as provided in subparagraph (B), the areas of
33occupational and technical training developed pursuant to
34paragraph (1) shall be regularly reviewed and updated at least
35every five years, beginning in 2012.

36(B) By January 1, 2016, the commission shall update the priority
37areas of occupational and technical training.

38(3) (A) The commission shall give priority in granting Cal
39Grant C awards to students pursuing occupational or technical
P5    1training in areas that meet two of the following criteria pertaining
2to job quality:

3(i) High employer need or demand for the specific skills offered
4in the program.

5(ii) High employment growth in the occupational field or
6industry cluster for which the student is being trained.

7(iii) High employment salary and wage projections for workers
8employed in the occupations for which they are being trained.

9(iv) The occupation or training program is part of a
10well-articulated career pathway to a job providing economic
11security.

12(B) To receive priority pursuant to subparagraph (A), at least
13one of the criteria met shall be specified in clause (iii) or (iv) of
14that subparagraph.

15(g) The commission shall determine areas of occupational or
16technical training that meet the criteria described in paragraph (3)
17of subdivision (f) in consultation with the Employment
18Development Department, the Economic and Workforce
19Development Division of the Office of the Chancellor of the
20California Community Colleges, and the California Workforce
21 Investment Board using projections available through the Labor
22Market Information Data Library. The commission may supplement
23the analyses of the Employment Development Department’s Labor
24Market Information Data Library with the labor market analyses
25developed by the Economic and Workforce Development Division
26of the Office of the Chancellor of the California Community
27Colleges and the California Workforce Investment Board, as well
28as the projections of occupational shortages and skills gap
29developed by industry leaders. The commission shall publish, and
30retain, on its Internet Web site a current list of the areas of
31occupational or technical training that meet the criteria described
32in paragraph (3) of subdivision (f), and update this list as necessary.

33(h) begin deleteThe end deletebegin insertUsing the best available data, the end insertcommission shall
34examine the graduation rates and job placementbegin delete dataend deletebegin insert data, or salary
35data,end insert
of eligible programs. Commencing with the 2014-15
36academic year, the commission shall give priority to Cal Grant C
37award applicants seeking to enroll in programs that rate high in
38graduation rates and job placementbegin insert data, or salaryend insert data.

39(i) (1) The commission shall consult with the Employment
40Development Department, the Office of the Chancellor of the
P6    1California Community Colleges, the California Workforce
2Investment Board, and the local workforce investment boards to
3develop a plan to publicize the existence of the grant award
4program to California’s long-term unemployed to be used by those
5consulting agencies when they come in contact with members of
6the population who are likely to be experiencing long-term
7unemployment. The outreach plan shall use existing administrative
8and service delivery processes making use of existing points of
9contact with the long-term unemployed. The local workforce
10investment boards are required to participate only to the extent
11that the outreach efforts are a part of their existing responsibilities
12under the federal Workforce Investment Act of 1998 (Public Law
13105-220).

14(2) The commission shall consult with the Workforce Services
15Branch of the Employment Development Department, the Office
16of the Chancellor of the California Community Colleges, the
17California Workforce Investment Board, and the local workforce
18investment boards to develop a plan to make students receiving
19awards aware of job search and placement services available
20through the Employment Development Department and the local
21workforce investment boards. Outreach shall use existing
22administrative and service delivery processes making use of
23existing points of contact with the students. The local workforce
24investment boards are required to participate only to the extent
25that the outreach efforts are a part of their existing responsibilities
26under the federal Workforce Investment Act of 1998 (Public Law
27105-220).

28(j) (1) Notwithstanding Section 10231.5 of the Government
29Code, the Legislative Analyst’s Office shall submit a report to the
30Legislature on the outcomes of the Cal Grant C program on or
31before April 1, 2015, and on or before April 1 of each
32odd-numbered year thereafter. This report shall include, but not
33necessarily be limited to, information on all of the following:

34(A) The age, gender, and segment of attendance for recipients
35in two prior award years.

36(B) The occupational and technical training program categories
37prioritized.

38(C) The number and percentage of students who received
39selection priority as defined in paragraph (3) of subdivision (f).

P7    1(D) The extent to which recipients in these award years were
2successfully placed in jobs that meet local, regional, or state
3workforce needs.

4(2) For the report due on or before April 1, 2015, the Legislative
5Analyst’s Office shall include data for two additional prior award
6years and shall compare the mix of occupational and technical
7training programs and institutions in which Cal Grant C award
8recipients enrolled before and after implementation of subdivision
9(f).

10(3) A report to be submitted pursuant to this subdivision shall
11be submitted in compliance with Section 9795 of the Government
12 Code.

13begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1095 of the end insertbegin insertUnemployment Insurance Codeend insertbegin insert is
14amended to read:end insert

15

1095.  

The director shall permit the use of any information in
16his or her possession to the extent necessary for any of the
17following purposes and may require reimbursement for all direct
18costs incurred in providing any and all information specified in
19this section, except information specified in subdivisions (a) to
20(e), inclusive:

21(a) To enable the director or his or her representative to carry
22out his or her responsibilities under this code.

23(b) To properly present a claim for benefits.

24(c) To acquaint a worker or his or her authorized agent with his
25or her existing or prospective right to benefits.

26(d) To furnish an employer or his or her authorized agent with
27information to enable him or her to fully discharge his or her
28obligations or safeguard his or her rights under this division or
29Division 3 (commencing with Section 9000).

30(e) To enable an employer to receive a reduction in contribution
31rate.

32(f) To enable federal, state, or local government departments
33or agencies, subject to federal law, to verify or determine the
34eligibility or entitlement of an applicant for, or a recipient of, public
35social services provided pursuant to Division 9 (commencing with
36Section 10000) of the Welfare and Institutions Code, or Part A of
37Title IV of the Social Security Act, where the verification or
38determination is directly connected with, and limited to, the
39administration of public social services.

P8    1(g) To enable county administrators of general relief or
2assistance, or their representatives, to determine entitlement to
3locally provided general relief or assistance, where the
4determination is directly connected with, and limited to, the
5administration of general relief or assistance.

6(h) To enable state or local governmental departments or
7agencies to seek criminal, civil, or administrative remedies in
8connection with the unlawful application for, or receipt of, relief
9provided under Division 9 (commencing with Section 10000) of
10the Welfare and Institutions Code or to enable the collection of
11expenditures for medical assistance services pursuant to Part 5
12(commencing with Section 17000) of Division 9 of the Welfare
13and Institutions Code.

14(i) To provide any law enforcement agency with the name,
15address, telephone number, birth date, social security number,
16physical description, and names and addresses of present and past
17employers, of any victim, suspect, missing person, potential
18witness, or person for whom a felony arrest warrant has been
19issued, when a request for this information is made by any
20investigator or peace officer as defined by Sections 830.1 and
21830.2 of the Penal Code, or by any federal law enforcement officer
22to whom the Attorney General has delegated authority to enforce
23federal search warrants, as defined under Sections 60.2 and 60.3
24of Title 28 of the Code of Federal Regulations, as amended, and
25when the requesting officer has been designated by the head of
26the law enforcement agency and requests this information in the
27course of and as a part of an investigation into the commission of
28a crime when there is a reasonable suspicion that the crime is a
29felony and that the information would lead to relevant evidence.
30The information provided pursuant to this subdivision shall be
31provided to the extent permitted by federal law and regulations,
32and to the extent the information is available and accessible within
33the constraints and configurations of existing department records.
34Any person who receives any information under this subdivision
35shall make a written report of the information to the law
36enforcement agency that employs him or her, for filing under the
37normal procedures of that agency.

38(1) This subdivision shall not be construed to authorize the
39release to any law enforcement agency of a general list identifying
40individuals applying for or receiving benefits.

P9    1(2) The department shall maintain records pursuant to this
2subdivision only for periods required under regulations or statutes
3enacted for the administration of its programs.

4(3) This subdivision shall not be construed as limiting the
5information provided to law enforcement agencies to that pertaining
6only to applicants for, or recipients of, benefits.

7(4) The department shall notify all applicants for benefits that
8release of confidential information from their records will not be
9protected should there be a felony arrest warrant issued against
10the applicant or in the event of an investigation by a law
11enforcement agency into the commission of a felony.

12(j) To provide public employee retirement systems in California
13with information relating to the earnings of any person who has
14applied for or is receiving a disability income, disability allowance,
15or disability retirement allowance, from a public employee
16retirement system. The earnings information shall be released only
17upon written request from the governing board specifying that the
18person has applied for or is receiving a disability allowance or
19disability retirement allowance from its retirement system. The
20request may be made by the chief executive officer of the system
21or by an employee of the system so authorized and identified by
22name and title by the chief executive officer in writing.

23(k) To enable the Division of Labor Standards Enforcement in
24the Department of Industrial Relations to seek criminal, civil, or
25administrative remedies in connection with the failure to pay, or
26the unlawful payment of, wages pursuant to Chapter 1
27(commencing with Section 200) of Part 1 of Division 2 of, and
28Chapter 1 (commencing with Section 1720) of Part 7 of Division
292 of, the Labor Code.

30(l) To enable federal, state, or local governmental departments
31or agencies to administer child support enforcement programs
32under Title IV of the federal Social Security Act (42 U.S.C. Sec.
33651 et seq.).

34(m) To provide federal, state, or local governmental departments
35or agencies with wage and claim information in its possession that
36will assist those departments and agencies in the administration
37of the Victims of Crime Program or in the location of victims of
38crime who, by state mandate or court order, are entitled to
39restitution that has been or can be recovered.

P10   1(n) To provide federal, state, or local governmental departments
2or agencies with information concerning any individuals who are
3or have been:

4(1) Directed by state mandate or court order to pay restitution,
5fines, penalties, assessments, or fees as a result of a violation of
6law.

7(2) Delinquent or in default on guaranteed student loans or who
8owe repayment of funds received through other financial assistance
9programs administered by those agencies. The information released
10by the director for the purposes of this paragraph shall not include
11unemployment insurance benefit information.

12(o) To provide an authorized governmental agency with any or
13all relevant information that relates to any specific workers’
14compensation insurance fraud investigation. The information shall
15be provided to the extent permitted by federal law and regulations.
16For the purposes of this subdivision, “authorized governmental
17agency” means the district attorney of any county, the office of
18the Attorney General, the Contractors’ State License Board, the
19Department of Industrial Relations, and the Department of
20Insurance. An authorized governmental agency may disclose this
21information to the State Bar, the Medical Board of California, or
22any other licensing board or department whose licensee is the
23subject of a workers’ compensation insurance fraud investigation.
24This subdivision shall not prevent any authorized governmental
25agency from reporting to any board or department the suspected
26misconduct of any licensee of that body.

27(p) To enable the Director of the Bureau for Private
28Postsecondary Education, or his or her representatives, to access
29unemployment insurance quarterly wage data on a case-by-case
30basis to verify information on school administrators, school staff,
31and students provided by those schools who are being investigated
32for possible violations of Chapter 8 (commencing with Section
3394800) of Part 59 of Division 10 of Title 3 of the Education Code.

34(q) To provide employment tax information to the tax officials
35of Mexico, if a reciprocal agreement exists. For purposes of this
36subdivision, “reciprocal agreement” means a formal agreement to
37exchange information between national taxing officials of Mexico
38and taxing authorities of the State Board of Equalization, the
39Franchise Tax Board, and the Employment Development
40Department. Furthermore, the reciprocal agreement shall be limited
P11   1to the exchange of information that is essential for tax
2administration purposes only. Taxing authorities of the State of
3California shall be granted tax information only on California
4residents. Taxing authorities of Mexico shall be granted tax
5information only on Mexican nationals.

6(r) To enable city and county planning agencies to develop
7economic forecasts for planning purposes. The information shall
8be limited to businesses within the jurisdiction of the city or county
9whose planning agency is requesting the information, and shall
10not include information regarding individual employees.

11(s) To provide the State Department of Developmental Services
12with wage and employer information that will assist in the
13collection of moneys owed by the recipient, parent, or any other
14legally liable individual for services and supports provided pursuant
15to Chapter 9 (commencing with Section 4775) of Division 4.5 of,
16and Chapter 2 (commencing with Section 7200) and Chapter 3
17(commencing with Section 7500) of Division 7 of, the Welfare
18and Institutions Code.

19(t) To provide the State Board of Equalization with employment
20tax information that will assist in the administration of tax
21programs. The information shall be limited to the exchange of
22employment tax information essential for tax administration
23purposes to the extent permitted by federal law and regulations.

24(u) Nothing in this section shall be construed to authorize or
25permit the use of information obtained in the administration of this
26code by any private collection agency.

27(v) The disclosure of the name and address of an individual or
28business entity that was issued an assessment that included
29penalties under Section 1128 or 1128.1 shall not be in violation
30of Section 1094 if the assessment is final. The disclosure may also
31include any of the following:

32(1) The total amount of the assessment.

33(2) The amount of the penalty imposed under Section 1128 or
341128.1 that is included in the assessment.

35(3) The facts that resulted in the charging of the penalty under
36Section 1128 or 1128.1.

37(w) To enable the Contractors’ State License Board to verify
38the employment history of an individual applying for licensure
39pursuant to Section 7068 of the Business and Professions Code.

P12   1(x) To provide any peace officer with the Division of
2Investigation in the Department of Consumer Affairs information
3pursuant to subdivision (i) when the requesting peace officer has
4been designated by the Chief of the Division of Investigation and
5requests this information in the course of and as part of an
6investigation into the commission of a crime or other unlawful act
7when there is reasonable suspicion to believe that the crime or act
8may be connected to the information requested and would lead to
9relevant information regarding the crime or unlawful act.

10(y) To enable the Labor Commissioner of the Division of Labor
11Standards Enforcement in the Department of Industrial Relations
12to identify, pursuant to Section 90.3 of the Labor Code, unlawfully
13uninsured employers. The information shall be provided to the
14extent permitted by federal law and regulations.

15(z) To enable the Chancellor of the California Community
16Colleges, in accordance with the requirements of Section 84754.5
17of the Education Code, to obtain quarterly wage data, commencing
18January 1, 1993, on students who have attended one or more
19community colleges, to assess the impact of education on the
20employment and earnings of students, to conduct the annual
21evaluation of district-level and individual college performance in
22achieving priority educational outcomes, and to submit the required
23reports to the Legislature and the Governor. The information shall
24be provided to the extent permitted by federal statutes and
25regulations.

26(aa) To enable the Public Employees’ Retirement System to
27seek criminal, civil, or administrative remedies in connection with
28the unlawful application for, or receipt of, benefits provided under
29Part 3 (commencing with Section 20000) of Division 5 of Title 2
30of the Government Code.

31(ab) To enable the State Department of Education, the University
32of California, the California State University, and the Chancellor
33of the California Community Colleges, pursuant to the
34requirements prescribed by the federal American Recovery and
35Reinvestment Act of 2009 (Public Law 111-5), to obtain quarterly
36wage data, commencing July 1, 2010, on students who have
37attended their respective systems to assess the impact of education
38on the employment and earnings of those students, to conduct the
39annual analysis of district-level and individual district or
40postsecondary education system performance in achieving priority
P13   1educational outcomes, and to submit the required reports to the
2Legislature and the Governor. The information shall be provided
3to the extent permitted by federal statutes and regulations.

4(ac) To provide the Agricultural Labor Relations Board with
5employee, wage, and employer information, for use in the
6investigation or enforcement of the
7Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations
8Act of 1975 (Part 3.5 (commencing with Section 1140) of Division
92 of the Labor Code). The information shall be provided to the
10extent permitted by federal statutes and regulations.

11(ad) (1) To enable the State Department of Health Care
12Services, the California Health Benefit Exchange, the Managed
13Risk Medical Insurance Board, and county departments and
14agencies to obtain information regarding employee wages,
15California employer names and account numbers, employer reports
16of wages and number of employees, and disability insurance and
17unemployment insurance claim information, for the purpose of:

18(A) Verifying or determining the eligibility of an applicant for,
19or a recipient of, state health subsidy programs, limited to the
20Medi-Cal Program, provided pursuant to Chapter 7 (commencing
21with Section 14000) of Part 3 of Division 9 of the Welfare and
22Institutions Code; the Healthy Families Program, provided pursuant
23to Part 6.2 (commencing with Section 12693) of Division 2 of the
24Insurance Code; and the Access for Infants and Mothers Program,
25provided pursuant to Part 6.3 (commencing with Section 12695)
26of Division 2 of the Insurance Code; where the verification or
27determination is directly connected with, and limited to, the
28administration of the state health subsidy programs referenced in
29this subparagraph.

30(B) Verifying or determining the eligibility of an applicant for,
31or a recipient of, federal subsidies offered through the California
32Health Benefit Exchange, provided pursuant to Title 22
33(commencing with Section 100500) of the Government Code,
34including federal tax credits and cost-sharing assistance pursuant
35to the federal Patient Protection and Affordable Care Act (Public
36Law 111-148), as amended by the federal Health Care and
37Education Reconciliation Act of 2010 (Public Law 111-152), where
38the verification or determination is directly connected with, and
39limited to, the administration of the California Health Benefit
40Exchange.

P14   1(C) Verifying or determining the eligibility of employees and
2employers for health coverage through the Small Business Health
3Options Program, provided pursuant to Section 100502 of the
4Government Code, where the verification or determination is
5directly connected with, and limited to, the administration of the
6Small Business Health Options Program.

7(2) The information provided under this subdivision shall be
8subject to the requirements of, and provided to the extent permitted
9by, federal law and regulations, including Part 603 of Title 20 of
10the Code of Federal Regulations.

11(ae) To provide any peace officer with the Investigations
12Division of the Department of Motor Vehicles with information
13 pursuant to subdivision (i), when the requesting peace officer has
14been designated by the Chief of the Investigations Division and
15requests this information in the course of, and as part of, an
16investigation into identity theft, counterfeiting, document fraud,
17or consumer fraud, and there is reasonable suspicion that the crime
18is a felony and that the information would lead to relevant evidence
19regarding the identity theft, counterfeiting, document fraud, or
20consumer fraud. The information provided pursuant to this
21subdivision shall be provided to the extent permitted by federal
22law and regulations, and to the extent the information is available
23and accessible within the constraints and configurations of existing
24department records. Any person who receives any information
25under this subdivision shall make a written report of the
26information to the Investigations Division of the Department of
27Motor Vehicles, for filing under the normal procedures of that
28division.

begin insert

29(af) To provide, to the extent permitted by federal law and
30regulations, the Student Aid Commission with wage information
31in order to verify the employment status of an individual applying
32for a Cal Grant C award pursuant to subdivision (c) of Section
3369439 of the Education Code.

end insert


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