Amended in Senate April 2, 2014

Senate Bill No. 1264

Introduced by Senator Pavley

February 21, 2014

An act to begin delete amend Section 69612.5 of end delete begin insert add Article 7.7 (commencing with Section 69630) to Chapter 2 of Part 42 of Division 5 of Title 3 of end insert the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

SB 1264, as amended, Pavley. Student financial aid: begin delete Assumption Program of Loans for Education. end delete begin insert Educator Excellence Program loan assumption agreements. end insert

Existing law establishes the Assumption Program of Loans for Education, administered by the Student Aid Commission, under which any person enrolled in a participating 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, to be redeemed pursuant to a prescribed procedure upon becoming employed as a teacher if he or she satisfies certain conditions.

Existing law requires the applicant to agree, among other things, to teach full time for at least 4 consecutive academic years or on a part-time basis the equivalent of 4 consecutive academic years at an eligible school. Existing law defines “eligible school” to mean, among other things, a school that is ranked in the lowest 2 deciles on the Academic Performance Index, a measure of the performance of schools and school districts.

This bill would begin delete amend the definition of “eligible school” to mean, among other things, a school that is ranked in the lowest 3 deciles on the Academic Performance Index. end delete begin insert establish the Educator Excellence Program under the administration of the Student Aid Commission. The bill would authorize the issuance, under that program, of up to 6,500 agreements for the assumption of student loans in a school year, up to a total loan assumption of $11,000 after 4 years of qualifying service in a school district that has qualified for a local control funding formula concentration grant, teaching in a subject area that has been designated by the Superintendent of Public Instruction as a current or projected shortage area. The bill would establish procedures for persons to apply for these loan assumption agreements and criteria for the determination of eligibility to enter into these agreements. 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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Article 7.7 (commencing with Section 69630) is
added to Chapter 2 of Part 42 of Division 5 of Title 3 of the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 7.7. end insert   Educator Excellence Program Loan Assumption
Agreements

 

begin insert 69630. end insert   

(a) The Legislature finds and declares all of the
following:

(1) Entry into the state’s teacher preparation programs has
been declining rapidly, even though student enrollments are on
the rise and projected to increase further over the next decade.

(2) The rising costs of higher education, coupled with a shift in
available financial aid from scholarships and grants to loans,
make the availability of financial aid and loan repayment
assistance options an important consideration in a student’s
decision to pursue a postsecondary education.

(3) Despite the layoffs that appear to create a surplus of
teachers, teacher shortages continue to exist. Current shortages
are in fields such as special education, mathematics, physical
science and bilingual education/English language development,
as well as in many high-poverty schools. Through economic
conditions, student preferences, and changes in expectations in
the teaching profession, teacher shortage areas change over time.

(4) Huge educational and financial costs of more than $7 billion
per year nationally are associated with replacing teachers and
leaders who leave schools prematurely.

(5) There is a crisis in the preparation of special education
teachers, who comprise the majority of underprepared teachers.
The most important factor in serving special education students
well is the knowledge and skills of their teachers. Without sufficient
training and certification in the field of special education, costs
increase as other services are added to compensate for inadequate
instruction.

(6) Through the Educator Excellence Program (EEP), the state
could better meet its educational needs by providing the
opportunity for financial assistance to qualified educators who
will serve California’s students in shortage fields, as determined.
Particularly in the area of special education, this investment will
reap huge benefits in better-served students who will have a much
lower need for remediation and other services, and a lower rate
of grade retention.

(7) In an effort to decrease the achievement gap and support
all students in becoming ready for college and career, California
should provide financial support to qualified persons seeking a
specialized and focused content area master’s degree in education
or teaching and National Board Certification to increase the
number of highly qualified and competent teachers teaching in
California’s lowest performing elementary and secondary schools.

(8) National Board for Professional Teaching Standards
certification is the most widely recognized certificate of educator
excellence.

(b) The Commission on Teacher Credentialing (CTC), in
consultation with the department, shall conduct a thorough study
at least every three years, as determined by the Superintendent,
to determine priority areas for EEP loan assumption agreements.
This study will identify areas of greatest need and award EEP loan
assumption agreements based on specific criteria. This study will
include the following:

(1) A list of teaching fields that have the most critical shortages
of teachers, as defined. The Superintendent shall review this list
at least every three years and revise the list based on the most
current study conducted by the CTC, in accordance with
subdivision (b). The list of areas of teacher shortage furnished
pursuant to this subdivision shall include the state special schools
as a category separate from special education.

(2) A list of schools that serve a large population of pupils from
low-income families, as designated for purposes of the federal
Perkins loan program, or according to standards that the
Superintendent deems appropriate.

(3) A list of schools with a high percentage of teachers holding
emergency-type permits. The list shall be established according
to criteria determined by the Superintendent.

(4) A list of schools serving rural areas.

(5) A list of the lowest performing and hardest to staff schools.

(6) A list of high-priority schools.

(7) Other information as determined by the Superintendent.

(c) Annual EEP loan forgiveness awards will be determined
based on the most current study conducted by the CTC under these
provisions.

(d) It is the intent of the Legislature that the EEP be designed
to accomplish both of the following:

(1) Provide outstanding postsecondary students, particularly
economically disadvantaged students, with financial assistance to
encourage them to complete postsecondary education programs
leading to teaching credentials.

(2) Provide veteran teachers with financial assistance to
encourage them to pursue additional teaching or content area
authorizations and credentials, a specialized and focused content
area master’s degree in an education or teaching subject matter
area other than education administration, or National Board
Certification. EEP recipients shall agree to teach in the lowest
performing, hardest to staff schools or designated subject-matter
shortage areas, based on the most current study conducted by the
CTC under these provisions.

(e) The Superintendent shall convene a working group at least
every three years to establish priorities, based on the most current
study completed by the CTC. EEP awards shall be authorized
consistent with the program goals, targeting high-need,
low-performing schools and districts in accordance with current
Assumption Program of Loans for Education program regulations
and governing federal law and regulations including, but not
necessarily limited to, paragraph (6) of subdivision (g) of Section
682.210 of Title 34 of the Code of Federal Regulations, relating
to the targeted deferment of student loan payments.

begin insert 69631. end insert   

(a) The Educator Excellence Program (EEP) is hereby
established under the administration of the Student Aid
Commission.

(b) An EEP participant shall meet all of the following eligibility
criteria prior to selection for the program, and shall continue to
meet these criteria, as appropriate, during the payment periods:

(1) For participants enrolled in postsecondary education
programs leading to initial teaching credentials, the applicant has
completed at least 60 semester units, or the equivalent, and is
enrolled in an academic program leading to a baccalaureate
degree at an eligible institution, or has been admitted to a program
of professional preparation that has been approved by the
Commission on Teacher Credentialing. Qualified candidates from
another state who have received an equivalent credential,
authorizing service for kindergarten or any of grades 1 to 12,
inclusive, as determined by the Superintendent, may also be
considered for participation in the EEP.

(2) For participants enrolled in postsecondary education
programs leading to a qualifying master’s degree in education or
teaching, National Board Certification, or an additional
authorization or credential, applicants shall meet similar
requirements consistent with enrollment in these graduate degree
and postcertification programs.

(3) For participants enrolled in postsecondary education
programs leading to initial or additional teaching credentials, the
applicant has agreed to teach full time for at least four consecutive
academic years, or on a part-time basis for the equivalent of four
full-time academic years, in a subject area that is designated as
a current or projected area of teacher shortage by the
Superintendent on the date the teacher is hired by a school district
that has qualified for a local control funding formula concentration
grant pursuant to Section 42238.02, and according to qualifying
criteria set forth by the Superintendent.

(4) For participants enrolled in postsecondary education
programs leading to a qualifying master’s degree in education or
teaching, or National Board Certification, the applicant shall have
earned a California Professional Clear Teaching Credential or
equivalent credential from another state, be a practicing educator,
and agree to teach full time for at least four consecutive academic
years, or on a part-time basis for the equivalent of four full-time
academic years, in a school district that has qualified for a local
control funding formula concentration grant pursuant to Section
42238.02, and according to qualifying criteria set forth by the
Superintendent.

(5) The terms of service for each participant in the EEP are to
be established as of the year the participant enters into the
program. Participants in the EEP must fully and completely satisfy
the requirements of the program within six years of the enrollment
date. EEP participants who do not fulfill the terms of service and
who do not satisfy their teaching requirements within six years of
entering the program must fully repay the State of California all
funds awarded them for loan assumptions resulting from their
participation in the program.

begin insert 69632. end insert   

In the academic years in which the study is completed
by the Commission on Teacher Credentialing, in consultation with
the department, pursuant to subdivision (b) of Section 69630, the
Superintendent shall develop priority areas for EEP awards, on
or before January 1 of that academic year, which shall be based
on the study findings. The Student Aid Commission shall provide
EEP loan forgiveness awards as determined by the Superintendent.

begin insert 69633. end insert   

The Student Aid Commission shall commence loan
assumption payments, as specified in Section 69634, upon
verification that the applicant is qualified based on the following:

(a) The EEP participant has received a California preliminary
credential, or an equivalent credential from another state,
authorizing service for kindergarten or any of grades 1 to 12,
inclusive, in an area of teacher shortage as determined by the
Superintendent pursuant to Section 69631.

(b) The EEP participant has received a qualifying master’s
degree in education or teaching, National Board Certification, or
additional teaching credential in an area of teacher shortage as
defined by the Superintendent pursuant to Section 69631.

(c) The applicant has met the requirements of the agreement
and all other pertinent conditions of this chapter.

begin insert 69634. end insert   

(a) The terms of a loan assumption granted under this
article shall be as follows, subject to the specific terms of each
agreement:

(1) After a program participant has completed one school year
of classroom instruction, verified pursuant to Section 69633, the
commission shall assume up to two thousand dollars ($2,000) of
the participant’s outstanding liability under one or more of the
designated educational loan programs.

(2) After a program participant has completed two consecutive
school years of instruction, the commission shall assume up to an
additional three thousand dollars ($3,000) of the participant’s
outstanding liability under one or more of the designated
educational loan programs, for a total loan assumption of up to
five thousand dollars ($5,000).

(3) After a program participant has completed three consecutive
school years of teaching service, the commission shall assume up
to a maximum of an additional three thousand dollars ($3,000) of
the participant’s outstanding liability under one or more of the
designated educational loan programs, for a total loan assumption
of up to eight thousand dollars ($8,000).

(4) After a program participant has completed four consecutive
school years of teaching service, the commission shall assume up
to a maximum of an additional three thousand dollars ($3,000) of
the participant’s outstanding liability under one or more of the
designated educational loan programs, for a total loan assumption
of up to eleven thousand dollars ($11,000).

(b) For purposes of this section, “school year” means at least
175 school days or its equivalent.

(c) An applicant who teaches on less than a full-time basis may
participate in the program, but shall not be eligible for loan
repayment until that person teaches for the equivalent of a full-time
academic year.

begin insert 69635. end insert   

The Superintendent shall develop priority areas for
EEP awards at least every three years, as determined by the
Superintendent, based on the most current study conducted by the
Commission on Teaching Credentialing to determine areas of
critical need in the teaching profession. The State Department of
Education shall solicit the advice of representatives from
postsecondary education institutions, the Commission on Teacher
Credentialing, school districts, and county offices of education
regarding proposed rules and regulations.

begin insert 69636. end insert   

(a) For the EEP, the Student Aid Commission shall
report annually to the Governor and the Legislature regarding all
of the following, on the basis of sex, age, and ethnicity:

(1) The total number of program participants.

(2) The number of agreements entered into with juniors, seniors,
students enrolled in teacher training programs, and current
teachers who enroll in qualifying master’s degree in education or
teaching or National Board Certification programs.

(3) The number of participants who agree to teach in an area
of teacher shortage.

(4) The number of participants who agree to teach in schools
with a high ratio of pupils from low-income families and in schools
that have been designated as the lowest performing or hardest to
staff.

(5) The number of participants who agree to teach in schools
serving rural areas.

(6) The number of participants who receive a loan assumption
benefit, classified by payment year.

(7) The number of out-of-state teachers who enter into
agreements.

(8) The number of participants who have participated in teacher
internship programs, classified by school district or county office
of education.

(9) The number of participants who agree to teach in schools
with a high percentage of students with disabilities or language
minority students.

(b) The Superintendent shall use the data reported pursuant to
subdivision (a), and other information and factors, in meeting the
requirements of Section 69635.

begin insert 69637. end insert   

For each school year, the Student Aid Commission
shall enter into agreements for the assumption of up to 6,500
student loans for program participants eligible under this chapter.

begin insert 69638. end insert   

It is the intent of the Legislature that the Educator
Excellence Program be fully funded commencing with the Budget
Act of 2015. Notwithstanding any other law, in any fiscal year,
the Student Aid Commission shall award no more than the number
of loan assumption agreements that are authorized by the Governor
and the Legislature in the annual Budget Act for that year for the
assumption of loans pursuant to this article.

end insert

begin delete

SECTION 1.  

Section 69612.5 of the Education Code is amended
to read:

69612.5.  

For purposes of this article, the following terms have
the following definitions:

(a) “Eligible institution” means a postsecondary institution that
is determined by the Student Aid Commission to meet both of the
following requirements:

(1) The institution is eligible to participate in state and federal
financial aid programs.

(2) The institution maintains a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.

(b) “Eligible school” means a school that meets any of the
following criteria:

(1) It serves a large population of pupils from low-income
families, as designated by the Superintendent.

(2) The institution has 20 percent or more teachers holding
emergency-type permits including, but not limited to, any of the
following:

(A) Provisional internships.

(B) Short-term staff permits.

(C) Credential waivers.

(D) Substitute permits.

(3) It is a school that is ranked in the lowest three deciles on the
Academic Performance Index.

(4) It is a school that serves a rural area.

end delete