Amended in Senate May 7, 2014

Amended in Senate April 28, 2014

Amended in Senate April 2, 2014

Senate Bill No. 1264

Introduced by Senator Pavley

February 21, 2014

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

LEGISLATIVE COUNSEL’S DIGEST

SB 1264, as amended, Pavley. Student financial aid: Educator Excellence Program loan assumption agreements.

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 establish the Educator Excellence Program under the administration of the Student Aid Commission. The bill would require the commission begin delete , in coordination with the Superintendent, end delete to develop procedures for the evaluation and selection of qualified applicants for participation in the program. The bill would specify eligibility criteria that participants in the program would be required to meet.

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, of which up to 400 would be for credentialed teachers as specified, 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 begin delete shortage end delete area begin insert of teacher shortage end insert . The bill would express the intent of the Legislature that this program be fully funded commencing with the Budget Act of 2015.

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

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

SECTION 1.  

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

 

Article 7.7.  Educator Excellence Program Loan Assumption
Agreements

 

69630.  

(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 seven
billion dollars ($7,000,000,000) 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 fields with teacher shortages, 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 schools
with a concentration of high-needs students.

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

(b) 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 in designated subject matter areas
in which there is a shortage of teachers, a specialized and focused
content area master’s degree in an education or teaching subject
matter area other than education administration, or National Board
for Professional Teaching Standards certification. EEP recipients
shall agree to teach in schools with a concentration of high-needs
students, based on the most current study conducted by the CTC
under these provisions.

69630.5.  

For purposes of this article, “agreement” means an
agreement pursuant to Section 69631 or 69632 committing the
state to assume the loans of a teacher who satisfies the terms
specified in subdivision (h) of Section 69631 and elsewhere in this
article.

69631.  

(a) The Educator Excellence Program (EEP) is hereby
established under the administration of the Student Aid
Commission. The commission shall administer this article, and
shall adopt rules and regulations for this purpose. The rules and
regulations shall include, but need not be limited to, provisions
regarding the period of time during which an agreement shall
remain valid, consistent with subdivisions (b) to (f), inclusive, the
reallocation of resources committed to program participants who
fail to satisfy the terms of an agreement, and the development of
projections for funding purposes. The commission begin delete , in coordination
with the Superintendent, end delete shall develop procedures for the
evaluation and selection of qualified applicants for participation
in the EEP.

(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.

(2) For participants enrolled in postsecondary education
programs leading to a qualifying master’s degree in education or
teaching, National Board for Professional Teaching Standards
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 at a schoolsite that has a pupil population with
a percentage of unduplicated pupils that is equal to, or greater than,
the school district’s unduplicated pupil count taken pursuant to
Section 42238.02.

(4) For participants enrolled in postsecondary education
programs leading to a qualifying master’s degree in education or
teaching, or National Board for Professional Teaching Standards
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 begin insert at a schoolsite
that has a pupil population with a percentage of unduplicated
pupils that is equal to, or greater than, the school district’s
unduplicated pupil count taken pursuant to Section 42238.02 end insert .

(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 begin delete and completely end delete satisfy the
begin insert academic and certification end insert requirements of the program within
six years of the enrollment date.

begin delete

(6) The Superintendent is authorized to designate additional
qualifying criteria for participation in the program that he or she
deems pertinent to the purposes of this article.

end delete begin insert

(c) (1) Except as provided in paragraph (3), if a program
participant fails to complete a minimum of four consecutive school
years of classroom instruction on a full-time basis or the equivalent
on a part-time basis as required by this article, under the terms
of the agreement pursuant to this article, the participant shall
retain full liability for all student loan obligations remaining after
the commission’s assumption of loan liability for the last year of
qualifying teaching service pursuant to subdivision (b).

end insert begin insert

(2) Except as provided in paragraph (3), if a program
participant who is enrolled in a postsecondary educational
program leading to a qualifying master’s degree in education or
teaching, or National Board for Professional Teaching Standards
certification, fails to complete a minimum of four consecutive
school years of classroom instruction on a full-time basis as
required by this article, under the terms of the agreement pursuant
to this article, the participant shall fully repay the state all funds
awarded to the participant for loan assumptions resulting from
his or her participation in the program.

end insert begin delete

(c)

end delete

begin insert (3) end insert  Notwithstanding paragraph (5) of subdivision (b), if a
program participant pursuing an initial credential or added
authorization becomes unable to complete one of the four
consecutive years of teaching service on a full-time basis or the
equivalent on a part-time basis due to serious illness, pregnancy,
or other natural causes, or is called to active military duty status,
the participant shall receive a deferral of the resumption of full
liability for the loan for a period not to exceed one calendar year,
unless approved by the commission for a longer period. The
commission shall make no further payments under the loan
assumption agreement until the applicable teaching requirements
specified in subdivision (b) are again satisfied.

(d) (1) Notwithstanding paragraph (5) of subdivision (b), a
program participant pursuing an initial credential or added
authorization shall receive a deferral of the resumption of full
liability for the loan for a period not to exceed one calendar year,
unless approved by the commission for a longer period, if the
participant becomes unable to complete one of the four consecutive
years of teaching service due to being laid off, reassigned, or other
reasons beyond the control of the participant, as determined by
the commission.

(2) The commission shall make no further payments under the
loan assumption agreement until the applicable teaching
requirements specified in subdivision (b) are again satisfied.

(e) If a program participant pursuing an initial credential or
added authorization fails to redeem an agreement for student loan
assumption within 10 years of the agreement’s issuance, the
participant shall retain full liability for all of his or her remaining
student loan obligations.

(f) (1) If a program participant who is enrolled in a
postsecondary education program leading to a qualifying master’s
degree in education or teaching, or National Board for Professional
Teaching Standards certification, fails to redeem an agreement for
student loan assumption within six years of the agreement’s
issuance, the participant shall fully repay the state all funds
awarded to the participant for loan assumptions resulting from his
or her participation in the program.

(2) (A) Except as provided in subparagraphs (B) and (C), if a
person participating in the program fails to maintain at least
one-half time enrollment, as required by this article, under the
terms of the agreement pursuant to subdivision (b), the loan
assumption agreement shall be invalidated and the participant shall
retain full liability for all of his or her student loan obligations.
This subparagraph shall not apply if the participant is in his or her
final semester or quarter in school and has no additional
coursework required to obtain his or her teaching credential.

(B) Notwithstanding subparagraph (A), if a program participant
is unable to maintain at least one-half time enrollment due to
serious illness, pregnancy, or other natural causes, or is called to
active military duty status, the term of the loan assumption
agreement shall be extended for a period not to exceed one calendar
year, unless approved by the commission for a longer period.

(C) If a natural disaster prevents a program participant from
maintaining at least one-half time enrollment due to the interruption
of instruction at the eligible institution, the term of the loan
assumption agreement shall be extended for a period not to exceed
one calendar year, unless approved by the commission for a longer
period.

(g) For selection to the program, an applicant shall be judged
by his or her postsecondary institution, school district, or county
office of education to have outstanding ability or be deserving of
special consideration on the basis of criteria that may include, but
need not be limited to, any of the following:

(1) Grade point average.

(2) Test scores.

(3) Faculty evaluations.

(4) Interviews.

(5) Other recommendations.

(6) The applicant has received, or is approved to receive, a loan
under one or more of the following designated loan programs:

(A) The Federal Family Education Loan Program (20 U.S.C.
Sec. 1071 et seq.).

(B) Any educational loan program approved by the Student Aid
Commission.

(h) An applicant shall 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 at a schoolsite that has a
pupil population with a percentage of unduplicated pupils that is
equal to, or greater than, the districts’ unduplicated pupil count
taken pursuant to Section 42238.02, begin delete in accordance with any
additional qualifying criteria set forth by the Superintendent
pursuant to paragraph (6) of subdivision (b), end delete after obtaining a
teaching credential in a public elementary or secondary school in
this state, in a subject area that is designated as a current or
projected area of teacher shortage by the Superintendent, or on the
date the teacher is hired at an eligible school.

(i) An agreement shall remain valid even if the subject area
under which an applicant becomes eligible to enter into an
agreement ceases to be a designated area of teacher shortage by
the time the applicant becomes a teacher, begin insert or end insert if the schoolsite at
which the applicant is teaching ceases to have a pupil population
with a percentage of unduplicated pupils that is equal to, or greater
than, the school district’s unduplicated pupil count taken pursuant
to Section begin delete 42238.02, or if any additional qualifying criterion set
forth by the Superintendent pursuant to paragraph (6) of
subdivision (b) is later not satisfied due to causes not within the
participant’s responsibility end delete begin insert 42238.02 end insert .

(j) For the purposes of calculating eligible years of teaching for
the redemption of an award, the inclusion by the Superintendent
of a school on a list prepared pursuant to this section shall apply
retroactively from the date the school first opened for that school
year.

(k) A person participating in the program pursuant to this section
shall not enter into more than one agreement pursuant to this article.

(l) A person participating in the program pursuant to this section
shall not owe a refund on any state or federal educational grant or
have defaulted on any student loan.

69632.  

(a) A credentialed teacher teaching in a school district
that has qualified for a local control funding formula concentration
grant pursuant to Section 42238.02 and at a schoolsite that has a
pupil population with a percentage of unduplicated pupils that is
equal to, or greater than, the unduplicated pupil count of that school
district developed pursuant to Section 42238.02, begin delete and in accordance
with any additional qualifying criteria set forth by the
Superintendent pursuant to paragraph (6) of subdivision (b) of
Section 69631, end delete and who possesses a clear multiple subject or single
subject teaching credential or level II education specialist credential
and who has not otherwise participated in the program established
by this article, is eligible to enter into an agreement for loan
assumption pursuant to this article, subject to applicable provisions
of Section 69631.

(b) The number of loan assumption agreements provided
pursuant to this section shall not exceed 400 per year.

(c) On or before January 1, 2016, the Student Aid Commission
shall develop and adopt regulations to implement this section.

69633.  

(a) The department, in consultation with the
Commission on Teacher Credentialing, shall conduct a thorough
study at least every three years, as determined by the
Superintendent, to be included with the report required in Section
44225.6, to determine priority areas for EEP loan assumption
agreements.

(b) The Superintendent shall convene a working group to
establish program priorities, based on the most current study
completed by the department. Program awards shall be authorized
consistent with the program goals, targeting high-need schools 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.

(c) The study conducted pursuant to this section shall identify
the areas of greatest need and begin delete award end delete begin insert recommend the awarding of end insert
EEP loan assumption agreements based on specific criteria. The
study shall include all of the following:

(1) A list of teaching fields that have the most critical shortages
of teachers. The Superintendent shall review this list at least every
three years, and shall revise the list based on the most current study
conducted by the Commission on Teacher Credentialing, in
accordance with subdivision (b). The list of areas of teacher
shortage furnished pursuant to this paragraph 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)  begin delete Additional information useful to make determinations in end delete
begin insert Other information on schools and populations, as identified in
Sections 2574 and 52060, that can assist in the determination of
priority end insert areas of educational begin delete need and direct new program awards
toward those areas of program focus end delete begin insert need end insert .

(d) In the academic years in which the study is completed by
the department, in consultation with the Commission on Teacher
Credentialing, pursuant to subdivision (a), 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.
begin delete The end delete

begin insert (e) end insert begin insert   end insert begin insert The Superintendent shall develop priority areas for EEP
awards at least every three years, end insert begin insert based on the most current study
conducted by the Commission on Teacher Credentialing to
determine areas of critical need in the teaching profession. On or
before December 31 of each year, the Superintendent shall furnish
the Student Aid Commission with information from the study
conducted pursuant to subdivision (c). The end insert Student Aid
Commission shall provide program loan forgiveness awards, based
on the most current study conducted by the Superintendent pursuant
to subdivision (c).

69634.  

The Student Aid Commission shall commence loan
assumption payments, as specified in Section 69635, 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 69633.

(b) The EEP participant has received a qualifying master’s
degree in education or teaching, National Board for Professional
Teaching Standards certification, or an 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.

69635.  

(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 69634, 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 delete

69636.  

(a) 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 Teacher 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.

(b) On or before December 31 of each year, the Superintendent
shall furnish the Student Aid Commission with all of the following:

(1) A list of teaching fields that have the most critical shortages
of teachers. The Superintendent shall review this list annually, and
shall revise the list as he or she deems necessary. The list of areas
of teacher shortage furnished pursuant to this paragraph 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 Perkins
Loan Program, or according to standards 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. The list shall be
established according to standards deemed appropriate by the
Superintendent.

(5) A list of schools that have a pupil population with a
percentage of unduplicated pupils that is equal to, or greater than,
the unduplicated pupil count of the applicable school district taken
pursuant to Section 42238.02.

(6) A list of high priority schools.

(7) Other information on schools and populations, as identified
in Sections 2574 and 52060, to make determinations in areas of
educational need and direct new program awards at those areas of
program focus.

end delete

begin delete 69637. end delete
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 for Professional Teaching Standards 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) begin delete , and other information and factors, end delete in meeting the
requirements of Section begin delete 69636 end delete begin insert 69633 end insert .

begin delete 69638. end delete
begin insert 69637. end insert   

(a) The Student Aid Commission shall solicit the advice
of representatives from postsecondary education institutions, the
department, the Commission on Teacher Credentialing, school
districts, and county offices of education regarding proposed rules
and regulations.

(b) (1) The Student Aid Commission shall distribute program
information and student applications to participate in the loan
assumption program to each eligible institution and to each school
district or county office of education operating a district intern
program pursuant to Section 44381. Each eligible institution shall
receive at least one allocation, and the remainder shall be
distributed to eligible institutions proportionate to the number of
teaching candidates from each institution who completed the
coursework required for a teaching credential based on the most
recent data available from the Commission on Teacher
Credentialing.

(2) The Student Aid Commission shall reexamine its outreach
and marketing strategies to inform both potential undergraduates
and persons employed outside of academia about the availability
and benefits of the loan assumption program. To this end, the
commission shall enlist the advice and support of the California
Center for the Teaching Profession, the University of California,
the California State University, the Association of Independent
California Colleges and Universities, and private employers and
their associations throughout the state.

(c) Each eligible institution, school district, and county office
of education shall sign an institutional agreement with the Student
Aid Commission, certifying its intent to administer the loan
assumption program according to all applicable published rules,
regulations, and guidelines, and to make special efforts to notify
students regarding the availability of the program, particularly
economically disadvantaged students.

(d) To the extent feasible, each eligible institution shall
coordinate the loan assumption program with other programs
designed to recruit students to enter the teaching profession.

begin delete 69638.5. end delete
begin insert 69637.5. 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 article.

begin delete 69638.7. end delete
begin insert 69637.7. 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.