Amended in Senate June 16, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 108


Introduced by Committee on Budget (Weber (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, Ting, and Williams)

January 9, 2015


begin deleteAn act relating to the Budget Act of 2015. end deletebegin insertAn act to amend Sections 8152, 69431.7, 69432, 69437, 70022, 70023, 79148, 79149.3, 84750.5, 89772, 92493, 92495, and 92495.5 of, to add Sections 52334.7, 68075.7, 70022.5, 84044, 84751.6, 84751.7, and 94874.9 to, to add Article 8 (commencing with Section 79240) to Chapter 9 of Part 48 of Division 7 of Title 3 of, to add Part 53 (commencing with Section 88700) and Part 54 (commencing with Section 88800) to Division 7 of Title 3 of, and to repeal and add Section 88540 of, the Education Code, to amend Sections 17039, 17053.86, 23036, and 23686 of, and to add and repeal Sections 12207, 17053.87, and 23687 of, the Revenue and Taxation Code, and to add Item 6910-102-0001 to Section 2.00 of the Budget Act of 2014 (Chapters 25 and 663 of the Statutes of 2014), relating to postsecondary education, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 108, as amended, Committee on Budget. begin deleteBudget Act of 2015. end deletebegin insertPostsecondary education: budget.end insert

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(1) Existing law provides for the attendance of apprentices at local educational agencies, defined to mean a school district or county office of education, and community colleges under vocational education program standards that are established with the participation of the State Department of Education, the Chancellor of the California Community Colleges, and the Division of Apprenticeship Standards of the Department of Industrial Relations. Existing law requires the chancellor to allocate the hours for instruction related and supplemental to on-the-job training, to be paid from funds appropriated by the Legislature directly to participating local educational agencies and community colleges that contract with apprenticeship programs.

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This bill would require the chancellor to notify participating local educational agencies and community colleges of the initial allocation of related and supplemental hours within 30 days of the enactment of the annual Budget Act. The bill would require the chancellor to report certain information relating to allocated hours to the California Apprenticeship Council within 30 days of each apportionment period for each participating local educational agency and community college.

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(2) Existing law authorizes various career technical education programs, including regional occupational centers and programs, specialized secondary programs, partnership academies, and agricultural career technical education programs.

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The bill would authorize the Superintendent of Public Instruction to certify, by name, each regional occupational center or program, county office of education, or adult education program that provides a program of training to prepare adult students for gainful employment in a recognized occupation, to legally authorize the center, program, or office to provide an educational program beyond secondary education, as specified.

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(3) Existing law exempts certain students of the California State University and the California Community Colleges from paying nonresident tuition.

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This bill would provide that, effective for academic terms beginning after July 1, 2015, a student enrolled at a campus of the California Community Colleges or the California State University who resides in California, meets the definition of “covered individual” under a specified federal statute, and is eligible for education benefits under either of 2 specified federal “GI Bill” programs, is exempt from paying nonresident tuition and any other fees exclusively applicable to nonresident students at that campus.

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The bill would provide that a student who qualifies under this bill for an exemption from paying nonresident tuition and other fees exclusively applicable to nonresident students would be exempt from paying nonresident tuition and these other fees for each academic term for which he or she enrolls while he or she is continuously enrolled, as defined, at the campus he or she attends. To the extent that this provision would create new duties for community college districts, it would constitute a state-mandated local program.

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The bill would authorize a community college district to report the attendance of a student who is exempt from nonresident tuition and other fees under this bill for apportionment purposes.

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(4) The Cal Grant Program establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer 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 establishes the maximum tuition award amount for each Cal Grant A and B award for new recipient students attending private nonprofit postsecondary educational institutions at $9,084 for the 2014-15 award year and $8,056 for the 2015-16 award year and each award year thereafter.

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This bill would increase the maximum tuition award amount for Cal Grant A and B for new recipients at private nonprofit postsecondary educational institutions to $9,084 for the 2015-16 and 2016-17 award year.

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(5) Under existing law, the Cal Grant Program requires, among other things, that a total of 22,500 Competitive Cal Grant A and B awards be granted annually.

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This bill would instead, commencing with the 2015-16 academic year, require that a total of 25,750 Competitive Cal Grant A and B awards be granted annually. The bill would also make conforming changes and delete an obsolete provision.

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(6) 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. The programs administered by the commission include the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program and the Middle Class Scholarship Program.

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The Middle Class Scholarship 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, and meeting certain requirements, is eligible for a scholarship award that, combined with other federal, state, and institutionally administered grants and fee waivers, is for an amount of up to 40% of the systemwide tuition and fees. Under existing law, a student receiving an award under the Middle Class Scholarship Program is required to have an annual household income that does not exceed $150,000, satisfy specified requirements for a Cal Grant award, be a California resident or exempt from paying nonresident tuition, file specified financial aid forms, timely apply for publicly funded student financial aid for which he or she is eligible, maintain at least a 2.0 grade point average, be pursuing his or her first undergraduate baccalaureate degree or be enrolled in a specified professional teacher preparation program, and be enrolled at least parttime.

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This bill would require that a student meet these requirements each academic year, to the satisfaction of the commission, to be eligible for an award under the Middle Class Scholarship Program. The bill would provide that $150,000 maximum annual household income amount would be adjusted, beginning in 2016-17 academic year, for changes in the cost of living, as defined. The bill, beginning with awards distributed for the 2015-16 academic year, would prohibit a student from receiving an award under the program if that student’s household asset level exceeds $150,000, as adjusted, beginning in the 2016-17 academic year, for changes in the cost of living. The bill would provide that a scholarship awarded under the Middle Class Scholarship Program can be renewed, as specified.

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(7) Existing law requires specified amounts to be transferred, upon order of the Director of Finance, from the General Fund to the Middle Class Scholarship Fund each fiscal year commencing with the 2014-15 fiscal year. Existing law appropriates these funds to the Student Aid Commission for allocation pursuant to the Middle Class Scholarship Program. Existing law provides that, upon order of the Director of Finance, if the May Revision projects a deficit for the next fiscal year, the amounts specified for transfer may be reduced by up to 33% and, beginning with the 2016-17 fiscal year, and each year thereafter, to an amount greater than or equal to $200,000,000.

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This bill would reduce the amounts specified for transfer to the Middle Class Scholarship Fund for the 2015-16, 2016-17, and 2017-18 fiscal years from $152,000,000 to $82,000,000, from $228,000,000 to $116,000,000, and from $305,000,000 to $159,000,000, respectively, subject to a further 33% reduction as specified above, and would express the Legislature’s intent that any savings realized in this regard be used to support higher education.

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(8) This bill would require funds appropriated to the board of governors for the Foster Care Education Program to be used for foster parent and relative/kinship care provider education, as specified.

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(9) Existing law establishes various student equity-related programs, including the Student Success and Basic Skills Students program, the Student Financial Aid Administration program, the Student Success and Support Program, and the Telecommunications and Technology Infrastructure program.

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This bill would require the Chancellor of the California Community Colleges to submit reports to the Department of Finance and the Legislature, by December 31 of each fiscal year, on the use of funds appropriated in the Budget Act for the prior fiscal year for the Student Success and Basic Skills Students program, the Student Financial Aid Administration program, the technical assistance provided to community college districts pursuant to the Student Success and Support Program, and the Telecommunications and Technology Infrastructure program, as specified.

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(10) 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 attendance and for other specified reasons.

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This bill, if the annual budget act identifies funds appropriated to do so, would require the chancellor to adjust the budget request formula, as specified.

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(11) The Schools and Local Public Safety Protection Act of 2012, an initiative measure approved by the voters at the November 6, 2012, statewide general election, among other things, increased certain tax rates and deposited the revenues from those increases in tax into the Education Protection Account. The act provides that all moneys in the Education Protection Account are continuously appropriated for the support of school districts, county offices of education, charter schools, and community college districts, and requires 11% of the moneys appropriated to be allocated quarterly by the Board of Governors of the California Community Colleges to community college districts to provide general purpose funding to community college districts, as specified. The act requires that allocation to be offset by certain amounts, provided that no community college district receives less than $100 per full-time equivalent student.

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This bill would require an amount to be determined by the Director of Finance to be appropriated, on or before June 30 of each fiscal year, from the General Fund to the Board of Governors of the California Community Colleges if the revenues distributed to community college districts that are intended to offset the Education Protection Account allocation are less than the estimated amount reflected in the Budget Act for that year. If the revenues distributed to community college districts that are intended to offset the Education Protection Account allocation exceed the estimated amount reflected in the Budget Act for that fiscal year, the bill would require the Director of Finance to reduce a specified item of that Budget Act that appropriates funds to the board of governors by the excess amount.

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(12) This bill would require an amount to be determined by the Director of Finance to be appropriated, on or before June 30 of each fiscal year from the General Fund to the Board of Governors of the California Community Colleges if specified redevelopment-related revenues distributed to community college districts are less than the estimated amount reflected in the Budget Act for that fiscal year. If the specified redevelopment-related revenues distributed to community college districts exceed the estimated amount reflected in the Budget Act for that fiscal year, the bill would require the Director of Finance to reduce a specified item of that Budget Act that appropriates funds to the board of governors by the excess amount.

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(13) Existing law, until June 30, 2015, establishes the Career Technical Education Pathways Program, which requires the Chancellor of the California Community Colleges and the Superintendent of Public Instruction to assist economic and workforce regional development centers and consortia, community colleges, middle schools, high schools, and regional occupational centers and programs to improve linkages and career technical education pathways between high schools and community colleges, as specified.

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This bill would continue the operation of the program until July 1, 2016, and would appropriate $48,000,000 for the support of the program.

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(14) 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.

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This bill would establish a financial and professional development grant funding program, which would authorize the governing board of a community college district to apply to the Chancellor of the California Community Colleges for, and would require the chancellor to distribute, multiyear financial and professional development grant funding upon appropriation of funds for that purpose for community colleges within the district to adopt or expand the use of evidence-based models of academic assessment and placement, remediation, and student support that accelerate the progress of underprepared students toward achieving postsecondary educational and career goals. The bill would require community colleges that receive these grants to report specified information to the chancellor’s office on program outcomes. The bill would make the chancellor’s office responsible for administering the grant program and distributing and monitoring awards to recipient community college districts, developing application criteria, administrative guidelines, and other requirements for purposes of administering the grant program, and providing the information submitted by community college districts to the Legislative Analyst’s Office. The bill would require the Legislative Analyst’s Office to report to the Legislature on the progress of the grant program in achieving its prescribed purpose, as specified.

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This bill would appropriate the sum of $60,000,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to community college districts under the financial grant and professional development funding program described above.

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(15) Under existing law, the Board of Governors of the California Community Colleges appoints a Chancellor of the California Community Colleges to serve as the chief executive officer of the segment.

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This bill would require the chancellor to solicit, from community college districts that choose to apply for a grant under this bill, applications seeking funding for plans to provide instruction in basic skills to students enrolled, or who will enroll at, California State University campuses. The bill would specify information that would be included in these applications.

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The bill would require the chancellor to award grants of $2,000,000 each to 5 of the applicant community college districts in accordance with specified criteria. The bill would require, no later than April 1, 2017, that, based on specified data provided by the districts that received the grants, the chancellor, following consultation with the Chancellor of the California State University, report to the Legislature, the Legislative Analyst’s Office, and the Department of Finance on the effectiveness of the plans in delivering instruction in basic skills to the targeted students.

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The bill would appropriate $10,000,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to community college districts under the bill.

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(16) Existing law authorizes 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. Existing law authorizes the California State University to fund debt service for capital expenditures, as defined, from its General Fund support appropriation, as specified.

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Existing law prohibits the California State University from using its General Fund support appropriation to fund certain capital expenditures and certain capital outlay projects before obtaining approval from the Department of Finance pursuant to specified procedures. Under existing law, if the California State University plans to use any of its support appropriation in the annual budget for the subsequent fiscal year for certain capital expenditures or for certain capital outlay projects, the California State University is required to simultaneously submit, on or before September 1, 10 months before the commencement of that fiscal year, a report to specified committees of the Legislature and the Department of Finance.

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This bill instead would require the California State University, if the university plans to use any authorized moneys for the subsequent fiscal year for those capital expenditures or capital outlay projects, to simultaneously submit, on or before September 1, 10 months before the commencement of that fiscal year, a preliminary report to specified committees and subcommittees of the Legislature and the Department of Finance. The bill would require the California State University to submit a final report, on or before December 1, to those same entities, as specified.

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This bill would, commencing with the 2014-15 fiscal year, authorize the California State University to use its support appropriation in the annual budget for the capital expenditures and capital outlay projects identified in the resolution approved by the Trustees of the California State University on January 28, 2015, titled “Approval to Issue Trustees of the California State University, Systemwide Revenue Bonds and Related Debt Instruments for Systemwide Infrastructure Improvement Projects (RFIN 01-15-04),” thereby making an appropriation.

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This bill would, commencing with the 2015-16 fiscal year, authorize the California State University to use its support appropriation in the annual budget for the capital expenditures and capital outlay projects identified in the “2015-2016 CSU/State Funded Capital Outlay Program” referenced in the resolution approved by the Trustees of the California State University on November 13, 2014, titled “Approval of the 2015-2016 Capital Outlay Program and the 2015-2016 through 2019-2020 Five-Year Capital Improvement Program (RCPBG 11-14-17).”

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(17) Under existing law, the University of California is established, under the administration of the Regents of the University of California, as one of the segments of public postsecondary education in this state. The University of California provides instruction to students at campuses in Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz.

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Existing law authorizes the University of California to 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.

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This bill would authorize the University of California to also pledge its annual General Fund support appropriation to secure payment for availability payments, as defined, lease payments, installment payments, and other similar or related payments. The bill would authorize the university to make availability payments, lease payments, installment payments, and other similar or related payments from its annual General Fund support appropriation, as specified. The bill would, for capital expenditures related to the Merced 2020 Project, provide that the University of California may proceed with capital expenditures or capital outlay projects only if all work traditionally performed by persons with University of California Service Unit (SX) job classifications is performed only by employees of the University of California. The bill would also make conforming changes.

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(18) Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act exempts specified institutions, including an independent institution of higher education that is accredited by the Accrediting Commission for Senior Colleges and Universities, Western Association of Schools and Colleges, or the Accrediting Commission for Community and Junior Colleges, Western Association of Schools and Colleges, from its provisions, and is repealed on January 1, 2017.

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This bill would, among other things, authorize an independent institution of higher education that is exempt from the act as accredited by one of these accrediting agencies to execute a contract with the bureau for the bureau to review and, as appropriate, act on complaints concerning the institution.

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(19) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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. Under the Cal Grant B Entitlement Program, awards may be made for access costs, defined as living expenses and expenses for transportation, supplies, and books, in an amount not to exceed $1,551 annually, as adjusted in the annual Budget Act.

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Existing law requires the Treasurer to certify the amount of moneys available in an academic year from the College Access Tax Credit Fund for distribution, and provides that an amount determined by the Student Aid Commission is available for expenditure from this fund, upon appropriation to the commission by the Legislature in the annual Budget Act, for distribution to students to supplement Cal Grant B access cost awards to bring those students’ total annual awards for access costs to not more than $5,000, and for the commission’s related administrative costs.

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This bill would instead provide that the moneys deposited in the College Access Tax Credit Fund would be continuously appropriated to the commission for the purpose of making those awards.

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(20) The Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2014, and before January 1, 2017, allow a credit equal to a certain percentage of a contribution to the College Access Tax Credit Fund for specified education purposes, as provided. Existing law specifies that the aggregate amount of credit that may be allocated under both laws shall not exceed $500,000,000 for each calendar year, as specified, and requires the California Educational Facilities Authority to perform certain duties with regard to allocating and certifying the tax credits allowed under these provisions. Existing state constitutional law governing insurance taxation imposes an annual tax on the gross premiums of an insurer, as defined, doing business in this state at specified rates.

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This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2018, would establish similar credits under the Personal Income Tax Law, the Corporation Tax Law, and the law governing insurance taxation, which would allow a credit equal to a certain percentage of a contribution to the College Access Tax Credit Fund. The bill would limit the aggregate amount of these new credits to be allocated from exceeding a total of $500,000,000 for that year, as specified, and would require the California Educational Facilities Authority to perform certain duties in order to allocate and certify these new credits.

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(21) The Personal Income Tax Law and the Corporation Tax Law provide for an alternative minimum tax and provide that, except for specified credits, no credit shall reduce the regular tax, as defined, below the tentative minimum tax. Existing state constitutional law prohibits the Legislature from making any gift, or authorizing the making of any gift, of any public money or thing of value to any individual, municipal or other corporation.

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This bill, for taxable years beginning on or after January 1, 2014, would add to those specified credits, the credit for contributions to the College Access Tax Credit Fund and would make legislative findings and declarations regarding the statewide public purpose served by these provisions.

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(22) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as the 3 segments of public postsecondary education in this state. The Master Plan for Higher Education in California, originally prepared in 1959, set forth, among other things, the basic goals and functions of these segments.

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This bill would require the Legislative Analyst’s Office to conduct a study, including specified analyses, to assess the need for new campuses of the California State University or the University of California. The bill would require these 2 segments to provide data needed by the Legislative Analyst’s Office to meet the requirements of this bill upon that office’s request. The bill would require the Legislative Analyst’s Office to submit to the Legislature and the Department of Finance: a report relating to the California State University and containing the data and analysis required by the bill on or before January 1, 2017; and a report relating to the University of California and containing the data and analysis required by the bill on or before January 1, 2018.

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(23) The Budget Act of 2012 appropriated $4,750,000 from the 2006 University Capital Outlay Bond Fund for a classroom and academic office building on the campus of the University of California, Merced. The Budget Act of 2013 authorized moneys appropriated to the University of California from the General Fund to be used to fund the construction phase of that classroom and academic office building.

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This bill would authorize the University of California to use any project savings from the 2012 appropriation referenced above for the construction phase of the classroom and academic office building at the University of California, Merced. The bill would also provide that the unencumbered balance of the funds appropriated for that building in the 2012 appropriation referenced above would be available for encumbrance until June 30, 2016. These provisions would constitute an appropriation.

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(24) This bill would appropriate the sum of $48,000,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to community college districts to provide funding for specified purposes relating to facilities, hazardous substances response, architectural barrier removal, seismic retrofit projects, instructional equipment and library materials, and water conservation projects, as specified. The bill would require the chancellor to allocate funds to community college districts on the basis of actual reported full-time equivalent students, except as provided. The bill would authorize the chancellor to establish guidelines for the use of the moneys allocated.

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(25) Existing law authorizes the Board of Governors of the California Community Colleges, in consultation with the California State University and the University of California, to establish a statewide baccalaureate degree pilot program at not more than 15 community college districts, with one baccalaureate degree program each, to be determined by the Chancellor of the California Community Colleges and approved by the board of governors.

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This bill would appropriate the sum of $6,000,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to community college districts to support the implementation of the baccalaureate degree pilot program. The bill would authorize the use of these funds to support professional development activities.

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(26) This bill would appropriate the sum of $1,000,000 from the General Fund for use pursuant to legislation enacted in the first year of the 2015-16 Regular Session of the Legislature related to a study of those eligible for admission to the University of California and the California State University.

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(27) The Budget Act of 2014 made appropriations for the support of state government for the 2014-15 fiscal year.

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This bill would amend the Budget Act of 2014 by making an additional appropriation of $23,000,000 from the General Fund for the Awards for Innovation in Higher Education program.

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(28) 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.

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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.

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(29) 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, as specified.

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(30) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

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Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P14   1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 8152 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

8152.  

(a) The reimbursement rate shall be established in the
4annual Budget Act and the rate shall be commonly applied to all
5providers of instruction specified in subdivision (d).

6(b) For purposes of this section, each hour of teaching time may
7include up to 10 minutes of passing time and breaks.

8(c) This section also applies to isolated apprentices, as defined
9in Section 3074 of the Labor Code, for which alternative methods
10of instruction are provided.

11(d) The Chancellor of the California Community Colleges shall
12make the reimbursements specified in this section for teaching
13time provided by local educational agencies.

14(e) The hours for related and supplemental instruction derived
15from funds appropriated pursuant to subdivision (b) of Section
168150 shall be allocated by the Chancellor of California Community
17Colleges directly to participating local educational agencies that
18contract with apprenticeship programs pursuant to subdivision (f).

19(f) Reimbursements may be made under this section for related
20and supplemental instruction provided to indentured apprentices
21only if the instruction is provided by a program approved by the
22Division of Apprenticeship Standards of the Department of
23Industrial Relations in accordance with Chapter 4 (commencing
24with Section 3070) of Division 3 of the Labor Code.

25(g) The initial allocation of hours made pursuant to subdivision
26(e) for related and supplemental instruction at the beginning of a
27fiscal year, when multiplied by the hourly reimbursement rate,
28shall equal 100 percent of the total appropriation for
29apprenticeships.begin insert The Chancellor of the California Community
30Colleges shall notify participating local educational agencies of
P15   1the initial allocation within 30 days of the enactment of the annual
2Budget Act.end insert

3(h) If funds remain from the appropriation pursuant to
4subdivision (b) of Section 8150, the Chancellor of the California
5Community Colleges shall reimburse local educational agencies
6for unfunded related and supplemental instruction hours from any
7of the three previous fiscal years, in the following order:

8(1) Reported related and supplemental instruction hours, as
9described in subdivision (b) of Section 8154, that were paid at a
10rate less than the hourly rate specified in the Budget Act.

11(2) Reported related and supplemental instruction hours that
12were not reimbursed.

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13(i) The Chancellor of the California Community Colleges shall
14report to the California Apprenticeship Council within 30 days of
15each apportionment period the following information for each
16participating local educational agency:

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17(1) The number of related and supplemental instruction hours
18allocated to the local educational agency.

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19(2) The number of related and supplemental instruction hours
20reported by the local educational agency.

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21(3) At the final or recalculation apportionment, the hourly rate
22paid for related and supplemental instruction hours reported above
23the local educational agency’s initial allocation of hours for related
24and supplemental instruction.

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25begin insert

begin insertSEC. 2.end insert  

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begin insertSection 52334.7 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
26read:end insert

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27

begin insert52334.7.end insert  

(a) The Superintendent may certify, by name, any
28regional occupational center or program, county office of
29education, or adult education program established pursuant to
30Section 52501 that provides a program of training to prepare adult
31students for gainful employment in a recognized occupation, to
32legally authorize the center, program, or office to provide an
33educational program beyond secondary education, including an
34education program that leads to a degree or certificate, for
35purposes of the center, program, or office participating in any
36student financial assistance program authorized by Title IV of the
37federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
381070 et seq.).

39(b) A regional occupational center or program, county office
40of education, or adult education program established pursuant to
P16   1Section 52501 applying for certification pursuant to subdivision
2(a) shall comply with all of the following:

3(1) It shall admit as regular students to its program of training
4only those students who meet one or more of the following
5requirements:

6(A) Have a high school diploma.

7(B) Have the recognized equivalent of a high school diploma.

8(C) Are beyond the age of compulsory school attendance.

9(2) It shall provide an eligible program of training, as defined
10in Section 668.8 of Title 34 of the Code of Federal Regulations,
11as this section reads on July 1, 2015, to prepare students for gainful
12employment in a recognized occupation.

13(3) It shall be accredited or preaccredited.

14(4) It shall have been in existence for at least two years as
15described in subsection (b) of Section 600.6 of Title 34 of the Code
16of Federal Regulations, as this section reads on July 1, 2015.

17(5) It shall be an institution or site physically located in the
18state.

19(6) It shall agree to submit any dispute involving the final denial,
20withdrawal, or termination of its accreditation to initial arbitration
21before initiating any other legal action.

22(7) It shall satisfy all applicable eligibility requirements
23specified in federal rulemaking pursuant to Sections 600.6, 600.7,
24and 600.9 of Title 34 of the Code of Federal Regulations, as these
25sections read on July 1, 2015, other than the authorization provided
26for in subdivision (a).

27(8) It shall apply in writing to the Superintendent, as an
28individual center, program, or office, to be considered for
29certification pursuant to subdivision (a).

30(c) Any person may file a complaint under the Uniform
31Complaint Procedures, as set forth in Title 5 of the California
32Code of Regulations, regarding an alleged violation by a local
33agency of federal or state law or regulations governing adult
34education programs established pursuant to Section 52501 or
35regional occupational centers and programs.

36(d) The Superintendent shall adopt regulations that authorize
37any person to file a complaint under the Uniform Complaint
38Procedures, as set forth in Title 5 of the California Code of
39Regulations, regarding an alleged violation by a county office of
40education of federal or state law or regulations governing that
P17   1county office’s participation in any student financial assistance
2program authorized by Title IV of the federal Higher Education
3Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).

4(e) The Superintendent may decertify, for purposes of
5participating in any student financial aid assistance program
6authorized by Title IV of the federal Higher Education Act of 1965,
7as amended (20 U.S.C. Sec. 1070 et seq.), a regional occupational
8center or program, county office of education, or adult education
9program established pursuant to Section 52501 previously certified
10in accordance with subdivision (a) if the Superintendent determines
11that the regional occupational center or program, county office
12of education, or adult education program established pursuant to
13Section 52501 is no longer in compliance with the requirements
14outlined in subdivision (b).

end insert
15begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 68075.7 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert68075.7.end insert  

Notwithstanding any other law:

18(a) Effective for academic terms beginning after July 1, 2015,
19a student enrolled at a campus of the California Community
20Colleges or the California State University who meets all of the
21following requirements shall be exempt from paying nonresident
22tuition or any other fee that is exclusively applicable to nonresident
23students:

24(1) The student resides in California.

25(2) The student meets the definition of “covered individual,”
26as that term is defined in subsection (c) of Section 3679 of Title
2738 of the United States Code, as that provision read on July 1,
282015.

29(3) The student is eligible for education benefits under either
30the federal Montgomery GI Bill-Active Duty program (Chapter
3130 (commencing with Section 3001) of Title 38 of the United States
32Code) or the Post-9/11 GI Bill program (Chapter 33 (commencing
33with Section 3301) of Title 38 of the United States Code), as each
34read on July 1, 2015.

35(b) After the expiration of the three-year period following
36discharge or death as described in subsection (c) of Section 3679
37of Title 38 of the United States Code, a student who qualifies for
38an exemption from paying nonresident tuition and other applicable
39fees under subdivision (a) shall be deemed to maintain “covered
40individual” status as long as the student remains continuously
P18   1enrolled at a campus, even if the student enrolls in multiple
2programs, and the student shall continue to be exempt from paying
3nonresident tuition and other fees that are exclusively applicable
4to nonresident students. As used in this section, “continuously
5enrolled” means enrolled for at least the fall and spring semesters
6of an academic year, or for at least three of the quarters in an
7academic year for an institution using the quarter system.

8(c) The attendance of a community college student who is exempt
9from paying nonresident tuition and other fees pursuant to this
10section may be reported by the community college district of
11attendance for apportionment purposes.

end insert
12begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 69431.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
13read:end insert

14

69431.7.  

(a) As used in this section, “fund” means the College
15Access Tax Credit Fund created bybegin delete Sectionend deletebegin insert Sectionsend insert 17053.86begin insert and
1617053.87end insert
of the Revenue and Taxation Code.

17(b) Any moneysbegin delete that may be appropriatedend deletebegin insert allocated to the
18commissionend insert
from the fund for purposes of this section shall be in
19addition to, and are intended to supplement, other moneys
20appropriated for the Cal Grant Program. Upon the creation of the
21fund, and during its existence, the amount of the Cal Grant B access
22award as established in the annual Budget Act shall not be adjusted
23below the amount set forth in the Budget Act of 2012.

24(c) begin delete On Aprilend deletebegin insert (1)end insertbegin insertend insertbegin delete 1, 2015, and on April 1 annually thereafter,
25the Treasurer shall certify the amount of moneys available for
26distribution from the fund for the academic year commencing the
27following July 1.end delete
Thebegin delete amount available for distribution in any
28academic year shall not exceed 85 percent of the certified fund
29balance. Notwithstanding any other law, the commission shall
30thereafter determine the amount of the supplemental awardsend delete
begin insert moneys
31allocatedend insert
tobegin delete be granted andend delete thebegin delete administrative costs that will be
32incurred, and include these amounts in the budget change proposals
33submitted each fiscal yearend delete
begin insert commissionend insert pursuant tobegin delete Section 69518.
34The amount determined byend delete
begin insert Sections 17053.86 and 17053.87 ofend insert
35 thebegin delete commission under this subdivisionend deletebegin insert Revenue and Taxation Codeend insert
36 shall bebegin delete available, upon appropriation by the Legislature to the
37commission in the annual Budget Act,end delete
begin insert availableend insert for the purpose
38of making awards to students in accordance with this section.

begin delete end deletebegin delete

P19   1(d) If, after making supplemental awards pursuant to subdivision
2(e), moneys remain in the fund, those moneys shall remain in the
3fund for allocation in future fiscal years.

end delete
begin delete end deletebegin delete end deletebegin delete

4(e) Disbursements shall be made upon annual appropriation by
5the Legislature to the commission under this section for both of
6the following purposes:

end delete
begin delete end deletebegin delete

7(1)

end delete

8begin insert(2)end insert Tobegin insert the extent feasible, the commission shall make annual
9disbursements from the moneys allocated to the commission toend insert

10 supplement awards made for access costs under Article 3
11(commencing with Section 69435), Article 4 (commencing with
12Section 69436), and Article 5 (commencing with Section 69437).
13The amount of the supplemental award, when added to the amount
14of the award made for access costs established by the annual
15Budget Act, shall not exceed five thousand dollars ($5,000). An
16award under this section is payable only to the extent that moneys
17are available from the fund. The commission shall inform each
18recipient of an award under this section that the award is for one
19academic year only, is not an entitlement, and that future
20supplemental awards are subject to the availability of moneys in
21the fund.

begin delete

22(2)

end delete

23begin insert(d)end insertbegin delete To defrayend deletebegin insert If, after making supplemental awards pursuant
24to subdivision (c), moneys remain inend insert
thebegin delete administrative costs
25incurred byend delete
begin insert fund, those moneys shall remain inend insert thebegin delete commissionend delete
26begin insert fund for allocationend insert inbegin delete implementing this section.end deletebegin insert future fiscal years.end insert

27begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 69432 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
28read:end insert

29

69432.  

(a) Cal Grant Program awards shall be known as “Cal
30Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,”
31“California Community College Transfer Entitlement Awards,”
32“Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,”
33and “Cal Grant T Awards.”

34(b) Maximum award amounts for students at independent
35institutions and for Cal Grant C and T awards shall be identified
36in the annual Budget Act. Maximum award amounts for Cal Grant
37A and B awards for students attending public institutions shall be
38referenced in the annual Budget Act.

39(c) (1) Notwithstanding subdivision (b), and subdivision (c) of
40Section 66021.2, commencing with the 2013-14 award year, the
P20   1maximum tuition award amounts for Cal Grant A and B awards
2for students attending private for-profit and nonprofit
3postsecondary educational institutions shall be as follows:

4(A) Four thousand dollars ($4,000) for new recipients attending
5private for-profit postsecondary educational institutions.

6(B) For thebegin delete 2014-15end deletebegin insert 2015-16 and 2016-17end insert awardbegin delete year,end deletebegin insert years,end insert
7 nine thousand eighty-four dollars ($9,084) for new recipients
8attending private nonprofit postsecondary educational institutions.
9For thebegin delete 2015-16end deletebegin insert 2017-18end insert award year and each award year
10thereafter, eight thousand fifty-six dollars ($8,056) for new
11recipients attending private nonprofit postsecondary educational
12institutions.

13(2) The renewal award amount for a student whose initial award
14is subject to a maximum award amount specified in this subdivision
15shall be calculated pursuant to paragraph (2) of subdivision (a) of
16Section 69433.

17(3) Notwithstanding subparagraph (A) of paragraph (1), new
18recipients attending private for-profit postsecondary educational
19institutions that are accredited by the Western Association of
20Schools and Colleges as of July 1, 2012, shall have the same
21maximum tuition award amounts as are set forth in subparagraph
22(B) of paragraph (1).

23begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 69437 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

69437.  

(a) Commencing with the 2001-02 academic year, and
26each academic year thereafter, there shall be established the
27Competitive Cal Grant A and B award program for students who
28did not receive a Cal Grant A or B entitlement award pursuant to
29Article 2 (commencing with Section 69434), Article 3
30(commencing with Section 69435), or Article 4 (commencing with
31Section 69436). Awards made under this section are not
32entitlements. The submission of an application by a student under
33this section shall not entitle that student to an award. The selection
34of students under this article shall be determined pursuant to
35subdivision (c) and other relevant criteria established by the
36commission.

37(b) begin delete Aend deletebegin insert Commencing with the 2015-16 academic year, aend insert total of
38begin delete 22,500end deletebegin insert 25,750end insert Cal Grant A and B awards shall be granted annually
39under this article on a competitive basis for applicants who meet
40the general eligibility criteria established in Article 1 (commencing
P21   1with Section 69430) and the priorities established by the
2commission pursuant to subdivision (c).

3(1) Fifty percent of the awards referenced in this subdivision
4are available to all students, including California community
5college students, who meet the financial need and academic
6requirements established pursuant to this article. A student
7enrolling at a qualifying baccalaureate degree granting institution
8shall apply by the March 2 deadline. A California community
9college student is eligible to apply at the March 2 or the September
102 deadline.

11(2) Fifty percent of the awards referenced in this subdivision
12are reserved for students who will be enrolled at a California
13community college. The commission shall establish a second
14application deadline of September 2 for community college
15students to apply for these awards effective with the fall term or
16semester of the 2001-02 academic year.

17(3) If any awards are not distributed pursuant to paragraphs (1)
18and (2) upon initial allocation of the awards under this article, the
19commission shall make awards to as many eligible students as
20possible, beginning with the students with the lowest expected
21family contribution and highest academic merit, consistent with
22the criteria adopted by the commission pursuant to subdivision
23(c), as practicable without exceeding an annual cumulative total
24ofbegin delete 22,500end deletebegin insert 25,750end insert awards.

25(c) (1) On or before February 1, 2001, acting pursuant to a
26public hearing process that is consistent with the Bagley-Keene
27Open Meeting Act (Article 9 (commencing with Section 11120)
28of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
29Code), the commission shall establish selection criteria for Cal
30Grant A and B awards under the competitive program that give
31special consideration to disadvantaged students, taking into
32consideration those financial, educational, cultural, language,
33home, community, environmental, and other conditions that hamper
34a student’s access to, and ability to persist in, postsecondary
35education programs.

36(2) Additional consideration shall be given tobegin delete eachend deletebegin insert bothend insert of the
37following:

begin delete end deletebegin delete

38(A) Students who graduated from high school or its equivalent
39prior to the 2000-01 academic year. This subparagraph shall not
40be applicable after the 2004-05 academic year.

end delete
begin delete end deletebegin delete

P22   1(B)

end delete

2begin insert(A)end insert Students pursuing Cal Grant B awards who reestablish their
3grade point averages.

begin delete

4(C)

end delete

5begin insert(B)end insert Students who did not receive awards pursuant to Article 2
6(commencing with Section 69434), Article 3 (commencing with
7Section 69435), or Article 4 (commencing with Section 69436).

8(d) All other students who meet the eligibility requirements
9pursuant to Article 1 (commencing with Section 69430) are eligible
10to compete for an award pursuant to this article.

11begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 70022 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
12read:end insert

13

70022.  

(a) (1) Subject to an available and sufficient
14appropriation, commencing with the 2014-15 academic year, an
15undergraduate student enrolled in the California State University
16or the University of California who meets the requirements of
17paragraph (2) is eligible for a scholarship award as described in
18that paragraph.

19(2) Each academic year, except as provided in paragraphs (3)
20and (4),begin delete aend deletebegin insert an eligibleend insert student shall receive a scholarship award in
21an amount that, combined with other federal, state, or institutionally
22administered student grants or fee waivers received by an eligible
23student, is up to 40 percent of the amount charged to that student
24in that academic year for mandatory systemwide tuition and fees,
25if all of the following requirements arebegin delete met:end deletebegin insert met, to the satisfaction
26of the commission, each academic year:end insert

27(A) The student’s annual household income does not exceed
28one hundred fifty thousand dollars ($150,000). Forbegin insert awards
29distributed for the 2016-17 academic year and subsequent
30academic years, the commission shall annually adjust the maximum
31income level set under this subparagraph in accordance with the
32percentage changes in the cost of living within the meaning of
33paragraph (1) of subdivision (e) of Section 8 of Article XIIIend insert
begin insertend insertbegin insert B of
34the California Constitution. Forend insert
purposes of this article, annual
35household income shall be calculated in a manner that is consistent
36with the requirements applicable to the
37Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
38(Chapter 1.7 (commencing with Section 69430)) and Section
3969506.

begin insert

P23   1(B) Beginning with awards distributed in the 2015-16 academic
2year, the student’s household asset level shall not exceed one
3hundred fifty thousand dollars ($150,000). For awards distributed
4in the 2016-17 academic year and subsequent academic years,
5the commission shall annually adjust the maximum household
6asset level set under this subparagraph in accordance with the
7percentage changes in the cost of living within the meaning of
8paragraph (1) of subdivision (e) of Section 8 of Article XIII B of
9the California Constitution. For purposes of this article, student’s
10household asset level shall be calculated in a manner that is
11consistent with the requirements applicable to the
12Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
13(Chapter 1.7 (commencing with Section 69430)) and Section 69506.

end insert
begin delete

14(B)

end delete

15begin insert(C)end insert The student satisfies the eligibility requirements for a Cal
16Grant award pursuant to Section 69433.9, except that a student
17who is exempt from nonresident tuition under Section 68130.5
18shall not be required to satisfy the requirements of subdivision (a)
19of Section 69433.9.

begin delete

20(C)

end delete

21begin insert(D)end insert The student is exempt from paying nonresident tuition.

begin delete

22(D)

end delete

23begin insert(E)end insert The student completes and submits a Free Application for
24Federal Student Aid (FAFSA) application. The FAFSA must be
25submitted or postmarked by no later than March 2. If the student
26is not able to complete a FAFSA application, the student may
27satisfy this subparagraph by submitting an application determined
28by the commission to be equivalent to the FAFSA application for
29purposes of this article by March 2.

begin delete

30(E)

end delete

31begin insert(F)end insert The student makes a timely application or applications for
32all other federal, state, or institutionally administered grants or fee
33waivers for which the student is eligible.

begin delete

34(F)

end delete

35begin insert(G)end insert The student maintains satisfactory academic progress in a
36manner that is consistent with the requirements applicable to the
37Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
38pursuant to subdivision (m) of Section 69432.7.

begin delete

39(G)

end delete

P24   1begin insert(H)end insert The student is pursuing his or her first undergraduate
2baccalaureate degree or has completed a baccalaureate degree and
3has been admitted to, and is enrolled in, a program of professional
4teacher preparation at an institution approved by the California
5Commission on Teacher Credentialing.

begin delete

6(H)

end delete

7begin insert(I)end insert The student is enrolled at least part time.

8(3) (A) The percentage specified in paragraph (2) shall be
9reduced by 0.6-percent increments per one thousand dollars
10($1,000) of annual household income in excess of one hundred
11thousand dollars ($100,000), to a minimum 10 percent of
12mandatory systemwide tuition and fees for an academic year,
13provided that no scholarship award shall be provided to a student
14with an annual household income exceeding one hundred fifty
15thousand dollars ($150,000). This reduction shall be in addition
16to any reduction required by subdivision (e) of Section 70023.

17(B) Notwithstanding subparagraph (A), for any student who
18qualifies for a scholarship award of at least one dollar ($1), the
19minimum annual scholarship amount for full-time enrollment is
20ninety dollars ($90).

21(4) For the 2014-15, 2015-16, and 2016-17 academic years,
22the maximum amount of a student’s scholarship award shall be 35
23percent, 50 percent, and 75 percent, respectively, of the total
24scholarship award amount that the student would otherwise be
25eligible to receive.

26(b) In order for students enrolled in their respective segments
27to remain eligible to receive a scholarship award under this article,
28the University of California and the California State University
29shall not supplant their respective institutional need-based grants
30with the funds provided for scholarships under this article, and
31shall maintain their funding amounts at a level that, at a minimum,
32is equal to the level maintained for undergraduate students during
33the 2013-14 academic year.

34(c) The University of California and the California State
35University shall report on the implementation of this article as part
36of the report made pursuant to Section 66021.1.

37(d) A Middle Class Scholarship Program award authorized
38pursuant to this article shall be defined as a full-time equivalent
39grant. An award to a part-time student shall be a fraction of a
40full-time grant, as determined by the proportionate amount charged
P25   1for systemwide tuition and fees. A part-time student shall not be
2discriminated against in the selection of Middle Class Scholarship
3Program awards. For purposes of this section, “full-time student”
4and “part-time student” have the same meaning as specified in
5subdivision (f) of Section 69432.7.

6begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 70022.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
7read:end insert

begin insert
8

begin insert70022.5.end insert  

(a) A scholarship award under this article may be
9renewed for a total of the equivalent of four years of full-time
10attendance in an undergraduate program. Commencing with the
112016-17 academic year, the total number of years of eligibility
12for grants pursuant to this article shall be based on the student’s
13educational level in his or her course of study as designated by
14the institution of attendance when the recipient initially receives
15payment for a grant.

16(b) For a student enrolled in an institutionally prescribed
17five-year undergraduate program, a scholarship award under this
18article may be renewed for a total of up to five academic years of
19attendance as long as the student meets the requirements of Section
2070022.

21(c) A recipient of a scholarship award under this article who
22has completed a baccalaureate degree, and who has been admitted
23to and is enrolled in a program of professional teacher preparation
24at an institution approved by the Commission on Teacher
25Credentialing, is eligible for, but not entitled to, renewal of the
26scholarship award for an additional academic year of full-time
27attendance as long as the student meets the requirements of Section
2870022.

end insert
29begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 70023 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
30read:end insert

31

70023.  

(a) For each academic year, the commission shall
32determine an amount sufficient, when combined with other federal,
33state, or institutionally administered student grants or fee waivers
34received by eligible students from other sources, to provide
35scholarships to eligible students in the amounts described in
36paragraphs (2) and (3) of subdivision (a) of Section 70022. The
37University of California and the California State University shall
38provide the commission with any financial aid data that are
39necessary for the determination of these amounts.

P26   1(b) The commission shall annually determine if the amounts
2appropriated under this section in each fiscal year are sufficient to
3cover the costs of the scholarships as projected to be awarded
4pursuant to the program. If those amounts are not sufficient for
5this purpose, the scholarships shall be reduced proportionately by
6an equal percentage for all recipients of scholarships under this
7article.

8(c) The commission may adopt regulations necessary to carry
9out the purposes of this article under subdivision (b) as emergency
10regulations in accordance with Chapter 3.5 (commencing with
11Section 11340) of Part 1 of Division 3 of Title 2 of the Government
12Code. For purposes of the Administrative Procedure Act, including
13Section 11349.6 of the Government Code, the adoption of those
14regulations shall be deemed to be an emergency and necessary for
15the immediate preservation of the public peace, health and safety,
16or general welfare, notwithstanding subdivision (e) of Section
1711346.1 of the Government Code. Notwithstanding subdivision
18(e) of Section 11346.1 of the Government Code, any regulation
19adopted pursuant to this section shall not remain in effect more
20than 180 days unless the commission complies with all provisions
21of Chapter 3.5 (commencing with Section 11340) of Part 1 of
22Division 3 of Title 2 of the Government Code, as required by
23subdivision (e) of Section 11346.1 of the Government Code.

24(d) The unencumbered balance, as of June 30 of each fiscal
25year, of the amount appropriated from the Middle Class Scholarship
26Fund pursuant to paragraph (1) of subdivision (e) shall revert to
27the General Fund.

28(e) (1) Upon order of the Director of Finance, the following
29amounts shall be transferred from the General Fund to the Middle
30Class Scholarship Fund, and are hereby appropriated to the
31commission for allocation pursuant to this article:

32(A) For the 2014-15 fiscal year, one hundred seven million
33dollars ($107,000,000).

34(B) For the 2015-16 fiscal year,begin delete one hundred fifty-twoend delete
35begin insert eighty-twoend insert million dollarsbegin delete ($152,000,000).end deletebegin insert ($82,000,000).end insert

36(C) For the 2016-17 fiscal year,begin delete twoend deletebegin insert oneend insert hundredbegin delete twenty-eightend delete
37begin insert sixteenend insert million dollarsbegin delete ($228,000,000).end deletebegin insert ($116,000,000).end insert

38(D) For the 2017-18 fiscal year and for each fiscal year
39thereafter,begin delete threeend deletebegin insert oneend insert hundredbegin delete fiveend deletebegin insert fifty-nineend insert million dollars
40begin delete ($305,000,000).end deletebegin insert ($159,000,000).end insert

P27   1(2) An annual appropriation to the commission is hereby
2established in the amounts and for the fiscal years described in
3paragraph (1) to carry out the purposes of this section and Section
470022.

begin insert

5(3) It is the intent of the Legislature that any savings realized
6from changes made to the allocations under this subdivision by a
7bill providing for appropriations related to the Budget Bill for the
82015-16 fiscal year shall be used to support higher education.

end insert
begin delete

9(3)

end delete

10begin insert(4)end insert The funds transferred and appropriated pursuant to paragraph
11(1) shall only be available for encumbrance in the fiscal year in
12which they are transferred, and the General Fund shall have no
13liability or any obligation beyond the transfers explicitly authorized
14in paragraph (1) unless a subsequent transfer or allocation is
15required pursuant to statute.

begin delete

16(4)

end delete

17begin insert(5)end insert In any fiscal year, additional appropriations may be enacted
18pursuant to statute to carry out the purposes of this article.

begin delete

19(5)

end delete

20begin insert(6)end insert (A) Beginning with the Governor’s Budget proposal for the
212014-15 fiscal year, and in the Governor’s Budget for each fiscal
22year thereafter, the Department of Finance shall include a fund
23condition statement for the Middle Class Scholarship Fund for the
24fiscal year of the proposed budget and the two immediately
25preceding fiscal years prepared in accordance with existing law.

26(B) Upon order of the Director of Finance and commencing
27with the 2013-14 fiscal year, if the May Revision projects a budget
28deficit for the next fiscal year, the amount specified in paragraph
29(1) for the fiscal year for which the budget deficit is projected may
30be reduced by up to 33 percent.begin delete Upon order of the Director of
31Finance, beginning with the 2016-17 fiscal year, and each year
32thereafter, if the May Revision projects a deficit for the next fiscal
33year, the amount specified in paragraph (1) may be reduced to an
34amount greater than or equal to two hundred million dollars
35($200,000,000).end delete

36(f) Subject to an appropriation in the annual Budget Act for its
37purposes, the commission may begin implementation of, and
38establish outreach services relating to, this article.

39begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 79148 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
40read:end insert

P28   1

79148.  

To the extent that sufficient federal funds and other
2resources are available, the Division of Apprenticeship Standards
3of the Department of Industrial Relations, in partnership with the
4California Communitybegin delete Colleges,end deletebegin insert Colleges Chancellor’s Office,end insert
5 shall develop and implement innovative apprenticeship training
6demonstration projects in high-growth industries in emerging and
7transitioning occupations that meet local labor market needs and
8that are validated by current labor market data.

9begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 79149.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
10to read:end insert

11

79149.3.  

(a) The reimbursement rate shall be established in
12the annual Budget Act and the rate shall be commonly applied to
13all providers of instruction specified in subdivision (d).

14(b) For purposes of this section, each hour of teaching time may
15include up to 10 minutes of passing time and breaks.

16(c) This section also applies to isolated apprentices, as defined
17in Section 3074 of the Labor Code, for which alternative methods
18of instruction are provided.

19(d) The Chancellor of the California Community Colleges shall
20make the reimbursements specified in this section for teaching
21time provided by community colleges.

22(e) The hours for related and supplemental instruction derived
23from funds appropriated pursuant to subdivision (b) of Section
2479149 shall be allocated by the Chancellor of the California
25Community Colleges directly to participating community colleges
26that contract with apprenticeship programs pursuant to subdivision
27(f).

28(f) Reimbursements may be made under this section for related
29and supplemental instruction provided to indentured apprentices
30only if the instruction is provided by a program approved by the
31Division of Apprenticeship Standards of the Department of
32Industrial Relations in accordance with Chapter 4 (commencing
33with Section 3070) of Division 3 of the Labor Code.

34(g) The initial allocation of hours for related and supplemental
35instruction pursuant to subdivision (e) at the beginning of any
36fiscal year when multiplied by the hourly rate established in the
37Budget Act for that year shall equal 100 percent of total
38appropriation for apprenticeships.begin insert The Chancellor of the California
39Community Colleges shall notify participating community colleges
P29   1of the initial allocation within 30 days of the enactment of the
2annual Budget Act.end insert

3(h) If funds remain from the appropriation pursuant to
4subdivision (b) of Section 79149, the Chancellor of the California
5Community Colleges shall reimburse community colleges for
6unfunded related and supplemental instruction hours from any of
7the three previous fiscal years, in the following order:

8(1) Reported related and supplemental instruction hours as
9described in subdivision (b) of Section 79149.5 that were paid at
10a rate less than the hourly rate specified in the Budget Act.

11(2) Reported related and supplemental instruction hours that
12were not reimbursed.

begin insert

13(i) The Chancellor of the California Community Colleges shall
14report to the California Apprenticeship Council within 30 days of
15each apportionment period the following information for each
16participating community college:

end insert
begin insert

17(1) The number of related and supplemental instruction hours
18allocated to the community college.

end insert
begin insert

19(2) The number of related and supplemental instruction hours
20reported by the community college.

end insert
begin insert

21(3) At the final or recalculation apportionment, the hourly rate
22paid for related and supplemental instruction hours reported above
23the community college’s initial allocation of hours for related and
24supplemental instruction.

end insert
25begin insert

begin insertSEC. 12.end insert  

end insert

begin insertArticle 8 (commencing with Section 79420) is added
26to Chapter 9 of Part 48 of Division 7 of Title 3 of the end insert
begin insertEducation
27Code
end insert
begin insert, to read:end insert

begin insert

28 

29Article begin insert8.end insert  Foster Care Education Program
30

 

31

begin insert79420.end insert  

Funds appropriated to the Board of Governors of the
32California Community Colleges for the Foster Care Education
33Program shall be used for foster parent and relative/kinship care
34provider education in accordance with the following provisions:

35(a) The Chancellor of the California Community Colleges shall
36allocate these funds exclusively for foster parent and
37relative/kinship care provider education and training, as specified
38by the chancellor, in consultation with an advisory committee that
39includes foster parents, representatives of statewide foster parent
P30   1organizations, parent and relative/kinship care providers, and
2representatives of the State Department of Social Services.

3(b) If a community college district accepts funds for this
4program, the district shall comply with all reporting requirements,
5guidelines, and other conditions for receipt of those funds
6established by the chancellor.

7(c) Each college receiving funds for this program shall have a
8plan for foster parent and relative/kinship care provider education
9that includes the provision of training to facilitate the development
10of foster family homes, small family homes, and relative/kinship
11homes that care for no more than six children who have special
12mental, emotional, developmental, or physical needs.

13(d) The State Department of Social Services shall facilitate the
14participation of county welfare departments in the Foster Care
15Education Program.

end insert
16begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 84044 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
17read:end insert

begin insert
18

begin insert84044.end insert  

(a) No later than December 31 of each fiscal year, the
19Chancellor of the California Community Colleges shall submit
20reports to the Department of Finance and the Legislature on the
21use of funds appropriated in the Budget Act for the prior fiscal
22year for the following purposes:

23(1) The Student Success for Basic Skills Students program,
24including any outcomes associated with the use of funds.

25(2) The Student Financial Aid Administration program,
26including the distribution of the funds, specific uses of the funds,
27strategies employed to reach low-income and disadvantaged
28students potentially eligible for financial aid, the extent to which
29community college districts were successful in increasing the
30number of students accessing financial aid, and the impact on
31student enrollment.

32(3) The technical assistance provided to community college
33districts pursuant to the Student Success and Support Program.

34(4) The Telecommunications and Technology Infrastructure
35program, including summaries of allocations and expenditures by
36program and by community college district.

37(b) Reports to the Legislature pursuant to this section shall be
38submitted pursuant to Section 9795 of the Government Code.

end insert
39begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 84750.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
40to read:end insert

P31   1

84750.5.  

(a) The board of governors, in accordance with the
2statewide requirements contained in paragraphs (1) tobegin delete (11),end deletebegin insert (9),end insert
3 inclusive, of subdivision (d), and in consultation with institutional
4representatives of the California Community Colleges and
5statewide faculty and staff organizations, so as to ensure their
6participation in the development and review of policy proposals,
7shall develop criteria and standards for the purposes of making the
8annual budget request for the California Community Colleges to
9the Governor and the Legislature, and for the purpose of allocating
10the state general apportionment revenues.

11(b) In developing the criteria and standards, the board of
12governors shall utilize and strongly consider the recommendations
13and work product of the “System Office Recommendations Based
14on the Report of the Work Group on Community College Finance”
15that was adopted by the board at its meeting of March 7, 2005.
16The board of governors shall complete the development of these
17criteria and standards, accompanied by the necessary procedures,
18processes, and formulas for utilizing its criteria and standards, by
19March 1, 2007, and shall submit on or before that date a report on
20these items to the Legislature and the Governor.

21(c) (1) It is the intent of the Legislature in enacting this section
22to improve the equity and predictability of general apportionment
23and growth funding for community college districts in order that
24the districts may more readily plan and implement instruction and
25related programs, more readily serve students according to the
26policies of the state’s master plan for higher education, and enhance
27the quality of instruction and related services for students.

28(2) It is the intent of the Legislature to determine the amounts
29to be appropriated for the purposes of this section through the
30annual Budget Act. Nothing in this section shall be construed as
31limiting the authority either of the Governor to propose, or the
32Legislature to approve, appropriations for California Community
33Colleges programs or purposes.

34(d) The board of governors shall develop the criteria and
35standards within the following statewide minimum requirements:

36(1) The calculations of each community college district’s
37revenue level for each fiscal year shall be based on the level of
38general apportionment revenues (state and local) the district
39received for the prior year plus any amount attributed to a deficit
40from the adopted standards to be developed pursuant to this section,
P32   1with revenue adjustments being made for increases or decreases
2in full-time equivalent students (FTES), for equalization of funding
3per credit FTES, for necessary alignment of funding per FTES
4between credit and noncredit programs, for inflation, and for other
5purposes authorized by law.

6(2) Commencing with the 2006-07 fiscal year, the funding
7mechanism developed pursuant to this section shall recognize the
8need for community college districts to receive an annual allocation
9based on the number of colleges and comprehensive centers in the
10district. In addition to this basic allocation, the marginal amount
11of credit revenue allocated per FTES shall be funded at a rate not
12less than four thousand three hundred sixty-seven dollars ($4,367),
13as adjusted for the change in the cost-of-living in subsequent annual
14budget acts.

15(A) To the extent that the Budget Act of 2006 contains an
16appropriation of one hundred fifty-nine million four hundred
17thirty-eight thousand dollars ($159,438,000) for community college
18equalization, the Legislature finds and declares that community
19college equalization for credit FTES has been effectively
20accomplished as of March 31, 2007.

21(B) The chancellor shall develop criteria for the allocation of
22one-time grants for those districts that would have qualified for
23more equalization under prior law than pursuant to this section
24and the Budget Act of 2006, and for those districts that would have
25qualified for more funding under a proposed rural college access
26grant than pursuant to this section and the Budget Act of 2006, as
27determined by the chancellor. Appropriations for the one-time
28grants shall be provided pursuant to paragraph (24) of subdivision
29(a) of Section 43 of Chapter 79 of the Statutes of 2006.

30(3) Noncredit instruction shall be funded at a uniform rate of
31two thousand six hundred twenty-six dollars ($2,626) per FTES,
32as adjusted for the change in the cost of living provided in
33 subsequent annual budget acts.

34(4) Funding for instruction in career development and college
35preparation, as authorized pursuant to Section 84760.5, shall be
36provided as follows:

37(A) (i) Beginning in the 2006-07 fiscal year, career
38development and college preparation FTES may be funded at a
39rate of three thousand ninety-two dollars ($3,092) per FTES for
40courses in programs that conform to the requirements of Section
P33   184760.5. This rate shall be adjusted for the change in the cost of
2living or as otherwise provided in subsequent annual budget acts.

3(ii) Beginning in the 2015-16 fiscal year, career development
4and college preparation FTES shall be funded at the same level as
5the credit rate specified in paragraph (2). This rate shall be adjusted
6for the change in the cost of living or as otherwise provided in
7subsequent annual budget acts.

8(iii) The Legislative Analyst shall report to the Legislature on
9or before March 1, 2017, regarding the change in funding specified
10in clause (ii), including whether community colleges offered
11additional classes or programs related to career development or
12college preparation, and whether there was any change in FTES.

13(iv) (I) The requirement for submitting a report imposed under
14clause (iii) is inoperative on March 30, 2019, pursuant to Section
1510231.5 of the Government Code.

16(II) A report submitted pursuant to clause (iii) shall be submitted
17in compliance with Section 9795 of the Government Code.

18(B) Changes in career development and college preparation
19FTES shall result in adjustments to revenues as follows:

20(i) Increases in career development and college preparation
21FTES shall result in an increase in revenues in the year of the
22increase and at the average rate per career development and college
23preparation FTES, including any cost-of-living adjustment
24authorized by statute or by the annual Budget Act.

25(ii) Decreases in career development and college preparation
26FTES shall result in a revenue reduction in the year following the
27decreasebegin delete andend delete at the average rate per career development and college
28preparation FTES.

29(5) Except as otherwise provided by statute, current categorical
30programs providing direct services to students, including extended
31opportunity programs and services, and disabled students programs
32and services, shall continue to be funded separately through the
33annual Budget Act, and shall not be assumed under the budget
34formula otherwise specified by this section.

35(6) For credit and noncredit instruction, changes in FTES shall
36result in adjustments in district revenues as follows:

37(A) Increases in FTES shall result in an increase in revenues in
38the year of the increase and at the amount per FTES provided for
39in paragraph (2) or (3), as appropriate, including any cost-of-living
40 adjustment authorized by statute or by the annual Budget Act.

P34   1(B) Decreases in FTES shall result in revenue reductions
2beginning in the year following the initial year of decrease in FTES,
3and at the district’s marginal funding per FTES.

4(C) Districts shall be entitled to the restoration of any reductions
5in apportionment revenue due to decreases in FTES during the
6three years following the initial year of decrease in FTES if there
7is a subsequent increase in FTES.

8(7) Revenue adjustments shall be made to reflect cost changes,
9using the same inflation adjustment as required for school districts
10pursuant tobegin insert paragraph (2) ofend insert subdivisionbegin delete (b)end deletebegin insert (d)end insert of Sectionbegin delete 42238.1.end delete
11begin insert 42238.02.end insert These revenue adjustments shall be made to the college
12and center basic allocations, credit and noncredit FTES funding
13rates, and career development and college preparation FTES
14funding rates.

15(8) The statewide requested increase in budgeted workload
16FTES shall be based, at a minimum, on the sum of the following
17computations:

18(A) Determination of an equally weighted average of the rate
19of change in the California population of persons between the ages
20of 19 and 24 and the rate of change in the California population
21of persons between the ages of 25 and 65, both as determined by
22the Department of Finance’s Demographic Research Unit as
23determined for the preceding fiscal year.

24(B) To the extent the California unemployment rate exceeds 5
25percent for the most recently completed fiscal year, that positive
26difference shall be added to the rate computed in subparagraph
27(A). In no event shall that positive difference exceed 2 percent.

28(C) The chancellor may also add to the amounts calculated
29pursuant to subparagraphs (A) and (B) the number of FTES in the
30areas of transfer, vocational education, and basic skills that were
31unfunded in the current fiscal year. For this purpose, the following
32computation shall be determined for each district, and a statewide
33total shall be calculated:

34(i) Establish the base level of FTES earned in the prior fiscal
35year for transfer courses consisting of courses meeting the
36California State University breadth or Intersegmental General
37Education Transfer Curriculum requirements or major course
38prerequisites accepted by the University of California or the
39California State University.

P35   1(ii) Establish the base level of FTES earned in the prior fiscal
2year for vocational education courses consisting of courses defined
3by the chancellor’s office Student Accountability Model codes A
4and B that are consistent with the courses used for measuring
5success in this program area under the accountability system
6established pursuant to Section 84754.5.

7(iii) Establish the base level of FTES in the prior fiscal year for
8basic skills courses, both credit and noncredit.

9(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.

10(v) Multiply the result of the calculation made under clause (iv)
11by one plus the district’s funded growth rate in the current fiscal
12year. This figure shall represent the maintenance of effort level
13for the budget year.

14(vi) FTES in transfer, vocational education, and basic skills that
15are in excess of the total calculated pursuant to clause (v), shall be
16considered in excess of the maintenance of effort level, and shall
17be eligible for overcap growth funding if the district exceeds its
18overall funded FTES.

19(vii) In no event shall the amount calculated pursuant to clause
20(vi) exceed the total unfunded FTES for that fiscal year. To the
21extent the computation specified in subdivision (c) requires the
22reporting of additional data by community college districts, that
23reporting shall be a condition of the receipt of apportionment for
24growth pursuant to this section and those funds shall be available
25to offset any and all costs of providing the data.

begin delete end deletebegin delete

26(9) Except as provided in subparagraph (B) of paragraph (6),
27for the 2006-07 fiscal year or for the first fiscal year for which
28this section is implemented by the board of governors, whichever
29is later, all districts shall receive at least the amount of revenue
30received for the prior fiscal year, adjusted for the cost-of-living
31adjustment specified in subdivision (b) of Section 42238.1 and
32adjusted for the actual increase in FTES not to exceed the district’s
33funded growth cap. Thereafter, allocations shall be made pursuant
34to this section, as implemented by the board of governors pursuant
35to the annual Budget Act.

end delete
begin delete end deletebegin delete

36(10)

end delete

37begin insert(9)end insert Except as specifically provided in statute, regulations of the
38board of governors for determining and allocating the state general
39apportionment to the community college districts shall not require
40district governing boards to expend the allocated revenues in
P36   1specified categories of operation or according to the workload
2measures developed by the board of governors.

3(e) (1) The Chancellor of the Community Colleges shall
4develop, and the board of governors shall adopt, a revised
5apportionment growth formula for use commencing with the
62015-16 fiscal year. The chancellor shall allocate apportionments
7pursuant to the revised formula only after the revised formula, and
8any formulas for adjustment pursuant to paragraph (2), have been
9adopted by the board of governors. The revised apportionment
10growth formula shall support the primary missions of the segment,
11and shall be based on each community’s need for access to the
12community colleges, as determined by local demographics. In
13developing the revised formula, the chancellor shall consider
14multiple factors in determining need; however, the primary factors
15shall be:

16(A) (i) The number of persons under 25 years of age without
17a college degree, within a community college district’s boundaries,
18and the number of persons 25 to 64 years of age, inclusive, without
19a college degree, within a community college district’s boundaries.

20(ii) Notwithstanding clause (i), the chancellor may use
21alternative age ranges depending on the availability of data.

22(B) The number of persons who are unemployed, have limited
23English skills, who are in poverty, or who exhibit other signs of
24being disadvantaged, as determined by the chancellor, within a
25community college district’s boundaries.

26(2) Beginning with the 2016-17 fiscal year, the chancellor shall
27adjust upward the need determination based on each community
28college’s effectiveness in serving residents of neighborhoods,
29within or outside of the community college district’s boundaries,
30that exhibit the highest levels of need in the state.

31(3) The chancellor shall calculate each community college
32district’s proportionate share of the statewide need for access to
33the community colleges based on the application of this formula
34described in paragraph (1), as adjusted pursuant to paragraph (2).

35(4) The chancellor shall calculate the difference between each
36community college district’s proportionate share of the statewide
37need for access to the community colleges, as calculated pursuant
38to paragraph (3), and its current proportionate share of statewide
39enrollment in the community colleges.

P37   1(5) (A) Until a community college district reaches its highest
2level of apportionment revenues previously received, its
3apportionment revenues shall be eligible to increase by the lesser
4of 1 percent of its current apportionment base, or one-half of the
5statewide growth allocation on an proportionate basis, regardless
6of need.

7(B) After a community college district reaches its highest level
8of apportionment revenues previously received, it shall be eligible
9to increase its apportionment revenues by the lesser of one-half of
101 percent of its current apportionment base, or one-quarter of the
11statewide growth allocation on an proportionate basis, regardless
12of its need.

13(6) The remainder of the apportionment growth funding shall
14be allocated to allow each community college district to grow its
15apportionment revenues based on its relative share of the difference
16between the amounts calculated in paragraph (4), up to a maximum
17of its apportionment base for the preceding fiscal year appropriate
18to ensure that community college district is advancing the primary
19missions of the segment. The maximum established by the
20chancellor shall not be less than 5 percent nor greater than 10
21percent of a community college district’s apportionment base for
22the preceding fiscal year.

23(7) Unless otherwise agreed upon by the board of governors,
24apportionment reductions shall be allocated proportionally based
25on the most recent levels of apportionment revenues.

26(8) (A) It is the intent of the Legislature, consistent with
27direction provided in the 2014-15 Budget Act, that apportionment
28growth funding be expended for purposes of increasing the number
29of FTES in courses or programs that support the primary missions
30of the segment.

31(B) (i) Notwithstanding Section 10231.5 of the Government
32Code, on or before October 15, 2015, and each year thereafter, the
33chancellor shall report to the Legislature on the course sections
34and FTES added at each community college that received
35apportionment growth funding in the prior fiscal year, including
36the number of course sections and if any course sections and FTES
37were added that are within the primary missions of the segment
38and those that are not within the primary missions of the segment.

P38   1(ii) A report submitted to the Legislature pursuant to clause (i)
2shall be submitted in compliance with Section 9795 of the
3Government Code.

4(C) For purposes of this section, “primary missions of the
5segment” means credit courses and those noncredit courses
6specified in paragraphs (2) to (6), inclusive, of subdivision (a) of
7Section 84757.

begin insert

8(f) (1) It is the intent of the Legislature to allow for changes to
9the criteria and standards developed pursuant to subdivisions (a)
10to (d), inclusive, in order to recognize increased operating costs
11and to improve instruction.

end insert
begin insert

12(2) (A) If the annual budget act identifies funds appropriated
13specifically for the purposes of this subdivision, the chancellor
14shall adjust the budget request formula to allocate those funds
15without altering of any adjustments described in subdivision (d).
16At least 30 days before allocating any state general apportionment
17revenues using a budget request formula revised pursuant to this
18subdivision, the chancellor shall submit to the Department of
19Finance and the Legislature a description of the specific
20adjustments made to the budget request formula.

end insert
begin insert

21(B) A report to the Legislature pursuant to subparagraph (A)
22shall be submitted in compliance with Section 9795 of the
23Government Code.

end insert
24begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 84751.6 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
25read:end insert

begin insert
26

begin insert84751.6.end insert  

(a) (1) On or before June 30 of each fiscal year, an
27amount to be determined by the Director of Finance shall be
28appropriated from the General Fund to the Board of Governors
29of the California Community Colleges in augmentation of Schedule
30(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act for
31that fiscal year.

32(2) The funds appropriated pursuant to paragraph (1) shall
33only be available to the extent that revenues distributed to
34community college districts pursuant to Sections 34177, 34179.5,
3534179.6, and 34188 of the Health and Safety Code are less than
36the estimated amount reflected in the Budget Act for that fiscal
37year, as determined by the Director of Finance.

38(b) On or before June 30 of each fiscal year, the Director of
39Finance shall determine if the revenues distributed to community
40college districts pursuant to Sections 34177, 34179.5, 34179.6,
P39   1and 34188 of the Health and Safety Code exceed the estimated
2amount reflected in the Budget Act for that fiscal year and shall
3reduce Schedule (1) of Item 6870-101-0001 of Section 2.00 of the
4Budget Act for that fiscal year by the amount of that excess.

5(c) In making the determinations pursuant to subdivisions (a)
6and (b), the Director of Finance shall consider any other local
7property tax revenues and student fee revenues collected in
8amounts greater than or less than the estimated amounts reflected
9in the Budget Act for that fiscal year.

10(d) The Director of Finance shall notify the Chairperson of the
11Joint Legislative Budget Committee of his or her intent to notify
12the Controller of the necessity to take action pursuant to either
13subdivision (a) or subdivision (b), and shall report either the
14amount to be appropriated pursuant to subdivision (a) or the
15amount to be reduced pursuant to subdivision (b).

16(e) The Controller shall make funds appropriated pursuant to
17subdivision (a) available not sooner than five days after notification
18by the Director of Finance. The Chancellor of the California
19Community Colleges shall work with the Controller to allocate
20these funds to community college districts as soon as practicable.

21(f) For purposes of making the computations required by Section
228 of Article XVI of the California Constitution, the appropriations
23made by subdivision (a) shall be deemed to be “General Fund
24revenues appropriated for community college districts,” as defined
25in subdivision (d) of Section 41202, for that fiscal year, and
26included within the “total allocations to school districts and
27community college districts from General Fund proceeds of taxes
28appropriated pursuant to Article XIII B,” as defined in subdivision
29(e) of Section 41202, for that fiscal year.

end insert
30begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 84751.7 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
31read:end insert

begin insert
32

begin insert84751.7.end insert  

(a) (1) On or before June 30 of each fiscal year, an
33amount to be determined by the Director of Finance shall be
34appropriated from the General Fund to the Board of Governors
35of the California Community Colleges in augmentation of Schedule
36(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act for
37that fiscal year.

38(2) The funds appropriated pursuant to paragraph (1) shall
39only be available to the extent that offsetting revenues distributed
40to community college districts pursuant to subparagraph (A) of
P40   1paragraph (3) of subdivision (e) of Section 36 of Article XIII of
2the California Constitution are less than the estimated amount
3reflected in the Budget Act for that fiscal year, as determined by
4the Director of Finance.

5(b) On or before June 30 of each fiscal year, the Director of
6Finance shall determine if the offsetting revenues distributed to
7community college districts pursuant to subparagraph (A) of
8paragraph (3) of subdivision (e) of Section 36 of Article XIII of
9the California Constitution exceed the estimated amount reflected
10in the Budget Act for that fiscal year and shall reduce Schedule
11(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act for
12that fiscal year by the amount of that excess.

13(c) The Director of Finance shall notify the Chairperson of the
14Joint Legislative Budget Committee of his or her intent to notify
15the Controller of the necessity to take action pursuant to either
16subdivision (a) or subdivision (b), and shall report either the
17amount to be appropriated pursuant to subdivision (a) or the
18amount to be reduced pursuant to subdivision (b).

19(d) The Controller shall make funds appropriated pursuant to
20subdivision (a) available not sooner than five days after notification
21by the Director of Finance. The Chancellor of the California
22Community Colleges shall work with the Controller to allocate
23these funds to community college districts as soon as practicable.

24(e) For purposes of making the computations required by Section
258 of Article XVI of the California Constitution, the appropriations
26made by subdivision (a) shall be deemed to be “General Fund
27revenues appropriated for community college districts,” as defined
28in subdivision (d) of Section 41202, for that fiscal year, and
29included within the “total allocations to school districts and
30community college districts from General Fund proceeds of taxes
31appropriated pursuant to Article XIII B,” as defined in subdivision
32(e) of Section 41202, for that fiscal year.

end insert
33begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 88540 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
34

88540.  

This part shall remain in effect only until June 30, 2015,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before June 30, 2015, deletes or extends that date.

end delete
37begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 88540 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
38read:end insert

begin insert
39

begin insert88540.end insert  

This part shall become inoperative on July 1, 2016,
40and, as of January 1, 2017, is repealed, unless a later enacted
P41   1statute that becomes operative on or before January 1, 2017,
2deletes or extends the dates on which it becomes inoperative and
3is repealed.

end insert
4begin insert

begin insertSEC. 19.end insert  

end insert

begin insertPart 53 (commencing with Section 88700) is added
5to Division 7 of Title 3 of the end insert
begin insertEducation Codeend insertbegin insert, to read:end insert

begin insert

6 

7PART begin insert53.end insert  Basic Skills Partnership Pilot Program

8

 

9

begin insert88700.end insert  

(a) It is the intent of the state that school districts,
10community college districts, the California State University, and
11the University of California coordinate their efforts to provide
12instruction in basic skills in an efficient and effective way.

13(b) The Chancellor of the California Community Colleges shall
14solicit applications from community college districts seeking
15funding for plans to provide instruction in basic skills to students
16enrolled, or who will enroll, at California State University
17campuses. As used in this section, “chancellor” means the
18Chancellor of the California Community Colleges.

19(c) A community college district that chooses to apply for a
20grant under this section shall include the following components
21of its plan in its application:

22(1) A list of the community colleges and the California State
23University campuses that will work jointly to develop effective
24instruction in basic skills and provide instruction to focus on
25students enrolled, or who will enroll, at California State University
26campuses.

27(2) A commitment from the California State University campuses
28listed in paragraph (1) that these campuses will direct students to
29instruction at community colleges.

30(3) A narrative explaining the strategy for directing students to
31instruction at community colleges and integrating this instruction
32with programs at California State University campuses.

33(4) A letter from each of the presidents of the California State
34University campuses listed in the application pursuant to
35paragraph (1) indicating support for the plan and identifying the
36fiscal impact for his or her particular campus.

37(5) A narrative describing any effective evidence-based
38instructional strategies and practices the community colleges have
39implemented for the delivery of basic skills instruction and any
40efforts the community colleges have made to incorporate effective
P42   1evidence-based instructional strategies and practices within the
2delivery of their basic skills instruction.

3(6) A narrative describing how faculty was involved in the
4development of the plan.

5(7) A narrative describing if and how the community college
6district intends to incorporate the use of student success data to
7inform the delivery of its basic skills instruction.

8(8) A narrative describing the measures the community colleges
9listed pursuant to paragraph (1) will undertake to collaborate with
10local school districts serving kindergarten and grades 1 to 12,
11inclusive, to better articulate English and mathematics instruction
12between high schools located in the community college district
13and the community colleges and the California State University
14campuses listed pursuant to paragraph (1).

15(d) (1) The chancellor, in consultation with the Chancellor of
16the California State University, shall award grants of two million
17dollars ($2,000,000) each to five of the applicant community
18college districts.

19(2) The grants shall be awarded based on the projected success
20of the applicant districts in maximizing the following factors, which
21are listed below in order of decreasing priority:

22(A) The number of students enrolled, or who will enroll, at
23California State University campuses and who would benefit from
24access to instruction in basic skills at the community colleges
25participating in the plan.

26(B) The number of California State University campuses
27participating in the plan.

28(C) The number of community college campuses participating
29in the plan.

30(D) The likelihood that the plan would be implemented
31effectively.

32(E) The use of effective evidence-based instructional strategies
33and practices the community colleges have implemented for the
34delivery of basic skills instruction. Community college districts
35are encouraged to align the delivery of basic skills instruction with
36California State University campus programs that will accelerate
37the progress of underprepared students toward college completion.

38(e) (1) Upon awarding the grants, the chancellor shall allocate
39one million dollars ($1,000,000) of the grant funds to each
40community college district selected for a grant.

P43   1(2) The chancellor shall release the remainder of a grant amount
2only after the community college district has submitted records
3demonstrating that students enrolled, or planning to enroll, at
4California State University campuses have accessed instruction
5in basic skills at the community colleges pursuant to the plan.
6Notwithstanding this reporting condition, the chancellor shall
7release any amount of a grant that remains as of May 1, 2018, to
8the community college district by June 30, 2018.

9(f) As a condition of receiving a grant pursuant to this section,
10a community college district shall provide all of the following
11information to the chancellor by February 1, 2017:

12(1) The number of students enrolled, or who will enroll, at
13California State University campuses who were provided, or are
14being provided, instruction by community colleges pursuant to the
15adopted plan.

16(2) The number of students who successfully completed basic
17skills instruction at the community colleges, defined as
18demonstrating competency on California State University
19assessments or successful completion of appropriate college-level
20courses.

21(3) The number of students provided instruction at the
22community colleges who subsequently enrolled at a California
23State University campus and demonstrated competency on
24California State University assessments or successful completion
25of appropriate college-level courses.

26(4) To the extent available, first-year retention and success rates
27at the California State University of students who received basic
28skills instruction at the community colleges pursuant to the plan.

29(5) A qualitative description of the local successes or challenges
30that community colleges encountered when partnering with
31California State University campuses to provide instruction in
32basic skills to students enrolled, or who will enroll, at those
33campuses.

34(6) A narrative describing the use of effective evidence-based
35practices by the community colleges to deliver basic skills
36instruction to accelerate the progress of underprepared students
37toward achieving postsecondary educational and career goals.
38This narrative shall also include a description of the efforts of the
39community colleges to implement or expand the use of effective
40evidence-based practices to deliver basic skills instruction.

P44   1(7) A narrative describing the measures implemented by the
2community college district to collaborate with local school districts
3serving kindergarten and grades 1 to 12, inclusive, to better
4articulate English and mathematics instruction between high
5schools located in the community college district and the
6community colleges and the California State University campuses
7listed pursuant to paragraph (1) of subdivision (c).

8(g) No later than April 1, 2017, and following consultation with
9the Chancellor of the California State University, the chancellor
10shall analyze the information provided under subdivision (f), and
11report to the Legislature, the Legislative Analyst’s Office, and the
12Department of Finance on the effectiveness of the plans in
13delivering instruction in basic skills to students enrolled, or who
14will enroll, at California State University campuses. This report
15shall also include a report on costs avoided by the California State
16University, if any, and recommendations on expanded use of
17community colleges to deliver basic skills instruction to California
18State University students. A report to the Legislature pursuant to
19this subdivision shall be submitted in compliance with Section
209795 of the Government Code.

21(h) The attendance of students enrolled in a basic skills course
22pursuant to this section may be reported by a community college
23district for apportionment purposes.

24(i) The sum of ten million dollars ($10,000,000) is hereby
25appropriated from the General Fund to the chancellor for
26allocation to community college districts to establish a basic skills
27partnership program at five community college districts in
28accordance with this section.

29(j) For the purposes of making the computations required by
30Section 8 of Article XVI of the California Constitution, the
31appropriation made by subdivision (i) shall be deemed to be
32“General Fund revenues appropriated for community college
33districts,” as defined in subdivision (d) of Section 41202 of the
34Education Code, for the 2014-15 fiscal year, and included within
35the “total allocations to school districts and community college
36districts from General Fund proceeds of taxes appropriated
37pursuant to Article XIII B,” as defined in subdivision (e) of Section
3841202 of the Education Code, for the 2014-15 fiscal year.

end insert
39begin insert

begin insertSEC. 20.end insert  

end insert

begin insertPart 54 (commencing with Section 88800) is added
40to Division 7 of Title 3 of the end insert
begin insertEducation Codeend insertbegin insert, to read:end insert

begin insert

P45   1 

2PART begin insert54.end insert  Community Colleges Basic Skills and
3Student Outcomes Transformation Program

4

 

5Chapter  begin insert1.end insert General Provisions
6

 

7

begin insert88800.end insert  

A financial and professional development grant funding
8program, administered by the Chancellor of the California
9Community Colleges, is hereby established. The chancellor shall
10distribute multiyear grants, upon appropriation by the Legislature,
11to the governing boards of community college districts pursuant
12to applications that satisfy the requirements of this part. Moneys
13allocated pursuant to this program shall be expended for
14community colleges within a district that receives a grant to adopt
15or expand the use of evidence-based models of academic
16assessment and placement, remediation, and student support that
17accelerate the progress of underprepared students toward
18achieving postsecondary educational and career goals.

19

begin insert88805.end insert  

(a) (1) The governing board of a community college
20district may apply for funds pursuant to this part for the purpose
21of making more effective, evidence-based practices available to
22more underprepared students who enroll at campuses of the
23California Community Colleges. A community college within the
24district may receive funds to implement these evidence-based
25practices for the first time or to expand to additional students any
26evidence-based practices that are in effect as of the date of the
27district’s application for funds.

28(2) Community colleges may use funds allocated pursuant to
29this part to support remedial education curriculum redesign,
30professional development and release time for faculty, and support
31staff as appropriate, and data collection and reporting.

32(b) The evidence-based practices implemented or expanded
33pursuant to funding received as specified in subdivision (a) shall
34include basic skills improvement strategies that have demonstrated
35effectiveness in accelerating the progress of underprepared
36students toward, and increasing the number of underprepared
37students who successfully achieve in a timely manner, one or both
38of the following goals:

39(1) Completing a college-level English or mathematics course,
40or both, within a sequence of three or fewer courses after
P46   1enrollment in a community college, to prepare students for
2college-level work.

3(2) Earning an industry-relevant college certificate or degree
4within two years.

5

begin insert88810.end insert  

(a) In order to receive a grant, the governing board
6of a community college district shall demonstrate in its application
7for funding, consistent with subdivision (b) of Section 88805, that
8the community colleges that are to participate in the grant program
9will redesign their curriculum, career pathways, assessment and
10placement procedures, or any combination thereof, to implement,
11or significantly expand the use or application of, two or more of
12the following evidence-based practices and principles:

13(1) Adopting placement tests or other student assessment
14indicators and related policies that may include multiple measures
15of student performance, including grades in high school courses,
16especially overall grade point average, results from the common
17assessment system, and input from counselors.

18(2) Increasing the placement of students directly in gateway
19English and mathematics courses that are transferable to the
20University of California or the California State University and
21career pathways, with remedial instruction integrated as
22appropriate for underprepared students.

23(3) Aligning content in remedial courses with the students’
24programs of academic or vocational study to target students’ actual
25needs and increase relevance. This paragraph is intended to
26encourage the development of remedial instruction focused on a
27student’s identified academic need informed by the student’s
28intended course of study.

29(4) Contextualizing remedial instruction in foundational skills
30for the industry cluster, pathways, or both, in which the student
31seeks to advance.

32(5) Providing proactive student support services that are
33integrated with the instruction provided.

34(6) Developing two- and three-course sequences, as appropriate,
35for completion of a college-level English or mathematics course,
36or both, for underprepared students, by either utilizing technology,
37where appropriate, to enhance the adoption of the high impact
38practices specified in paragraphs (1) to (5), inclusive, or
39implementing other effective basic skills course strategies and
40practices not specified in paragraphs (1) to (5), inclusive, subject
P47   1to the college providing evidence that substantiates the practice
2is effective.

3(b) Community colleges are encouraged to collaborate with
4local school districts serving kindergarten and grades 1 to 12,
5inclusive, to better articulate English and math instruction between
6the high schools and the community colleges.

7(c) Each participating community college shall be responsible
8for all of the following:

9(1) Developing a plan based on two or more of the
10evidence-based principles and practices described in subdivision
11(a) that demonstrates a clear strategy for ensuring that both of the
12following occur within a five-year period:

13(A) A progressively increasing share of the students who enroll
14at participating community colleges within the community college
15district achieve the goals listed in subdivision (b) of Section 88805.

16(B) A significantly greater share of entering students who are
17enrolled at the community college achieve the goals listed in
18subdivision (b) of Section 88805 within a shorter time period than
19before the implementation of the plan at the community college.

20(2) Ensuring that the plan developed pursuant to paragraph (1)
21does all the following:

22(A) Describes the community college’s current practices with
23regard to the selected high impact practices and its readiness to
24implement the new interventions.

25(B) Articulates targets for the share of entering students
26projected to be served by these interventions over the three-year
27implementation period.

28(C) Sets goals for the share of entering students who complete
29a college-level English or mathematics course within three
30semesters or less after enrollment.

31(D) Identifies key strategies and implementation benchmarks
32for evaluating the progress of campus efforts to implement the
33selected interventions.

34(E) Details the number of campus faculty likely to be involved
35in all selected high impact interventions and the plan for
36addressing their professional and technical assistance needs.

37(3) Ensuring that its faculty participate in professional
38development regarding academic programs or new curriculum
39developed or expanded pursuant to the plan, using grant funds to
40support that faculty participation.

P48   1(4) Commencing in the year that a community college receives
2a grant and for the following three fiscal years, annually reporting
3to the chancellor’s office on program outcomes, disaggregated by
4the demographic characteristics, high school grade point average,
5and initial placement level of its students, for purposes of
6measuring progress compared to the community college’s
7performance before its implementation of the plan. These reports
8should include all of the following:

9(A) The total number and percentage of entering students
10identified as underprepared before receipt of the grant.

11(B) The number and percentage of entering students served by
12the grant program, disaggregated by type of practice implemented.

13(C) The number and percentage of entering students achieving
14the goals listed in subdivision (b) of Section 88805.

15(D) The number of faculty involved and faculty needs regarding
16the adoption and operation of courses under the plan.

17(E) If applicable, a narrative describing any subsequent
18adjustments to the design of the college’s basic skills course
19practices or strategies adopted pursuant to paragraph (6) of
20subdivision (a).

21(F) A description of any additional or expanded student supports
22offered.

23(G) A narrative describing the community college’s efforts to
24collaborate with local school districts serving kindergarten and
25grades 1 to 12, inclusive, to better articulate English and math
26instruction between the high schools and the community colleges.

27(5) These plans should be developed in consultation with campus
28faculty.

29(d) The office of the Chancellor of the California Community
30Colleges shall be responsible for all of the following:

31(1) Developing application criteria, administrative guidelines,
32and other requirements for purposes of administering the grant
33program. Applications that would do one or both of the following
34shall be given priority consideration within the application criteria:

35(A) Scale up existing practices.

36(B) Provide services to greater proportions of students.

37(2) Administering the grant program and distributing and
38monitoring awards to recipient community college districts.

39(3) Providing the information submitted pursuant to paragraph
40(4) of subdivision (c) to the Legislative Analyst’s Office.

P49   1(e) (1) The Legislative Analyst’s Office shall aggregate, analyze,
2and report the information submitted pursuant to paragraph (3)
3of subdivision (d) to the Legislature on the progress of the grant
4program in achieving its prescribed purpose. The Legislative
5Analyst’s Office shall issue an interim report by December 1, 2019,
6and a final report by December 1, 2021.

7(2) (A) The requirement for submitting a report imposed under
8this subdivision is inoperative on July 1, 2026, pursuant to Section
910231.5 of the Government Code.

10(B) A report to be submitted pursuant to paragraph (1) shall
11be submitted in compliance with Section 9795 of the Government
12Code.

end insert
13begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 89772 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
14read:end insert

15

89772.  

(a) (1) Commencing with the 2014-15 fiscal year, and
16for each fiscal year thereafter, if the California State University
17plans to use any of its support appropriation in the annualbegin delete budgetend delete
18begin insert budget, or any other revenues pursuant to paragraph (1) of
19subdivision (a) of Section 89770,end insert
for the subsequent fiscal year for
20capital expenditures, pursuant to and as defined in paragraph (1)
21of subdivision (b) of Section 89770,begin insert orend insert for capital outlay projects
22pursuant to Section 89771, it shall simultaneously submit, on or
23before September 1, 10 months before the commencement of that
24fiscal year, abegin insert preliminaryend insert report to the committees in each house
25of the Legislature that consider thebegin delete State Budget,end deletebegin insert state budget,end insert the
26budget subcommittees in each house of the Legislature that
27consider appropriations for the California State University, and
28the Department of Finance.

29(2) Thebegin insert preliminaryend insert report shall detail the scope of all capital
30expenditures and capital outlay projects and how those capital
31expenditures and capital outlay projects will be funded, and it shall
32provide the same level of detail as a capital outlay budget change
33proposal.

begin insert

34(3) The California State University shall submit, on or before
35December 1, a final report to the committees in each house of the
36Legislature that consider the state budget, the budget
37subcommittees in each house of the Legislature that consider
38appropriations for the California State University, and the
39Department of Finance.

end insert
begin insert

P50   1(4) The final report shall detail the scope of all capital
2expenditures and capital outlay projects and how those capital
3expenditures and capital outlay projects will be funded, and it
4shall provide the same level of detail as a capital outlay budget
5change proposal.

end insert
begin delete

6(3)

end delete

7begin insert(5)end insert The Department of Finance shall review thebegin insert finalend insert report and
8submit, by February 1, a list of preliminarily approved capital
9expenditures and capital outlay projects to the committees in each
10house of the Legislature that consider thebegin delete State Budgetend deletebegin insert state budgetend insert
11 and the budget subcommittees in each house of the Legislature
12that consider appropriations for the California State University.
13These committees may review and respond to the list of
14preliminarily approved capital expenditures and capital outlay
15projects before April 1.

begin delete

16(4)

end delete

17begin insert(6)end insert The Department of Finance shall submit a final list of
18approved capital expenditures and capital outlay projects to the
19California State University by no earlier than April 1, three months
20before the commencement of the fiscal year of the planned
21expenditures.

22(b) The Department of Finance may approve capital
23expenditures, as defined in paragraphs (3) and (4) of subdivision
24(b) of Section 89770, no sooner than 30 days after submitting, in
25writing, a list of expenditures being considered forbegin delete approvalend delete
26begin insert approval,end insert to the chairpersons of the committees in each house of
27the Legislature that consider appropriations, the chairpersons of
28the committees and the appropriate subcommittees in each house
29of the Legislature that consider thebegin delete State Budget,end deletebegin insert state budgetend insert and
30the Chairperson of the Joint Legislative Budget Committee.

31(c) The California State University shall not use its General
32Fund support appropriation to fund any capital expenditures, as
33defined in paragraphs (1), (3), and (4) of subdivision (b) of Section
3489770, or capital outlay projects defined in subdivision (b) of
35Section 89771 before receiving approval from the Department of
36Finance pursuant to this section.

37(d) (1) For the 2014-15 fiscal year only, if the California State
38University plans to use any of its support appropriation in the
39annual budget for the 2014-15 fiscal year for capital expenditures
40defined in paragraph (1) of subdivision (b) of Section 89770 or
P51   1 for capital outlay projects pursuant to Section 89771, the California
2State University shall simultaneously submit, on or before August
31, 2014, a report to the committees in each house of the Legislature
4that consider thebegin delete State Budget,end deletebegin insert state budget,end insert the budget
5subcommittees in each house of the Legislature that consider
6appropriations for the California State University, and the
7Department of Finance. This report shall detail the scope of all
8capital expenditures and capital outlay projects and how those
9capital expenditures and capital outlay projects will be funded.
10This report shall include the same level of detail as a capital outlay
11budget change proposal.

12(2) The Department of Finance shall review, by November 1,
132014, the report and submit a list of preliminarily approved capital
14expenditures and capital outlay projects to the committees in each
15house of the Legislature that consider the State Budget, and the
16budget subcommittees in each house of the Legislature that
17consider appropriations for the California State University. These
18committees may review and respond to the list of preliminarily
19approved capital expenditures and capital outlay projects before
20December 1, 2014.

21(3) The Department of Finance shall submit a final list of
22approved projects to the California State University no earlier than
23December 1, 2014.

24(4) The California State University shall not proceed with any
25capital expenditures defined in paragraph (1) of subdivision (b) of
26Section 89770 or capital outlay projects defined in Section 89771,
27before receiving approval from the Department of Finance pursuant
28to this subdivision.

begin insert

29(e) (1) Notwithstanding subdivision (c), commencing with the
302014-15 fiscal year, the California State University may use its
31support appropriation in the annual budget for the capital
32expenditures and capital outlay projects identified in the resolution
33approved by the Trustees of the California State University on
34January 28, 2015, titled “Approval to Issue Trustees of the
35California State University, Systemwide Revenue Bonds and
36Related Debt Instruments for Systemwide Infrastructure
37Improvement Projects (RFIN 01-15-04).”

end insert
begin insert

38(2) Notwithstanding subdivision (c), commencing with the
392015-16 fiscal year, the California State University may use its
40support appropriation in the annual budget for the capital
P52   1expenditures and capital outlay projects identified in the
2“2015-2016 CSU/State Funded Capital Outlay Program”
3referenced in the resolution approved by the Trustees of the
4California State University on November 13, 2014, titled “Approval
5of the 2015-2016 Capital Outlay Program and the 2015-2016
6through 2019-2020 Five-Year Capital Improvement Program
7(RCPBG 11-14-17).”

end insert
begin delete

8(e)

end delete

9begin insert(f)end insert Notwithstanding Section 10231.5 of the Government Code,
10commencing with the 2015-16 fiscal year, on or before February
111 of each fiscal year, the California State University shall
12simultaneously submit a progress report to the Joint Legislative
13Budget Committee and the Department of Finance detailing the
14scope, funding, and current status of all capital expenditures
15undertaken pursuant to Section 89770 and for all capital outlay
16projects undertaken pursuant to Section 89771.

17begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 92493 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

92493.  

(a) (1) The University of California may pledge, along
20with its other revenues, its annual General Fund support
21appropriation less the amount of that appropriation that is required
22to fund general obligation bond payments and the State Public
23Works Board rental payments, to secure the payment of any of the
24university’s general revenue bonds or commercial paper associated
25with the general revenue bondbegin delete program.end deletebegin insert program and to secure
26payment for any availability payments, lease payments, installment
27payments, and other similar or related payments.end insert

28(2) To the extent the university pledges any part of its support
29appropriation as a source of revenue securing any obligation, it
30shall provide that this commitment of revenue is subject to annual
31appropriation by the Legislature.

32(3) The university may fund debt service for capital expenditures
33defined in subdivisionbegin delete (b)end deletebegin insert (b), and make availability payments,
34lease payments, installment payments, and other similar or related
35payments for capital expenditures defined in subdivision (b),end insert
from
36its General Fund support appropriation pursuant to Sections 92495
37and 92495.5.

38(4) The state hereby covenants with the holders of the
39university’s obligations secured by the pledge of the university
40permitted by this section that, so long as any of the obligations
P53   1referred to in this subdivision remain outstanding, the state will
2not impair or restrict the ability of the university to pledge any
3support appropriation or support appropriations that may be enacted
4for the university. The university may include this covenant of the
5state in the agreements or other documents underlying the
6university’s obligations to this effect.

7(b) For purposes of this section,begin delete “capital expenditures” means
8any of the following:end delete
begin insert the following definitions shall apply:end insert

begin insert

9(1) “Availability payments” are payments made by the university
10to a contractor for providing an available facility.

end insert
begin insert

11(2) “Capital expenditures” means any of the following:

end insert
begin delete

12(1)

end delete

13begin insert(A)end insert The costs to design, construct, or equip academic facilities
14to address seismic and life safety needs, enrollment growth, or
15modernization of out-of-date facilities, and renewal or expansion
16of infrastructure to serve academic programs.

begin delete

17(2)

end delete

18begin insert(B)end insert The debt service amount associated with refunding,
19defeasing, or retiring State Public Works Board lease revenue
20bonds.

begin delete

21(3)

end delete

22begin insert(C)end insert The costs to design, construct, or equip energy conservation
23projects.

24(c) Nothing in this section shall require the Legislature to make
25an appropriation from the General Fund in any specific amount to
26support the University of California.

27(d) The ability to utilize its support appropriation as stated in
28this section shall not be used as a justification for future increases
29in student tuition, additional employee layoffs, or reductions in
30employee compensation at the University of California.

31begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 92495 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
32read:end insert

33

92495.  

(a) (1)  Commencing with the 2013-14 fiscal year and
34for each fiscal year thereafter, if the University of California plans
35to use any of its support appropriation in the annual budget for the
36subsequent fiscal year for capital expenditures pursuant to Section
3792493, as defined inbegin insert subparagraph (A) ofend insert paragraphbegin delete (1)end deletebegin insert (2)end insert of
38subdivision (b) of that section, or for capital outlay projects
39pursuant to Section 92494, as defined in paragraph (1) of
40subdivision (b) of that section, it shall simultaneously submit, on
P54   1or before September 1, 10 months before the commencement of
2that fiscal year, a report to the committees in each house of the
3Legislature that consider the annual state budget, the budget
4subcommittees in each house of the Legislature that consider
5appropriations for the University of California, and the Department
6of Finance.

7(2) The report shall detail the scope of capital expenditures or
8capital outlay projects and how the capital expenditures or capital
9outlay projects will be funded, and it shall provide the same level
10of detail as a capital outlay budget change proposal.

11(3) The Department of Finance shall review the report and
12submit, by February 1, a list of preliminarily approved capital
13expenditures and capital outlay projects to the committees in each
14house of the Legislature that consider the annual state budget and
15the budget subcommittees in each house of the Legislature that
16consider appropriations for the University of California. These
17committees may review and respond to the list of preliminarily
18approved capital expenditures and capital outlay projects before
19April 1.

20(4) The Department of Finance shall submit a final list of
21approved capital expenditures and capital outlay projects to the
22University of California no earlier than April 1, three months before
23the commencement of the fiscal year of the planned expenditures.

24(b) The Department of Finance may approve capital expenditures
25defined inbegin insert subparagraph (C) ofend insert paragraphbegin delete (3)end deletebegin insert (2)end insert of subdivision
26(b) of Section 92493, or capital outlay projects defined in paragraph
27(2) of subdivision (b) of Section 92494, no sooner than 30 days
28after submitting, in writing, a list of capital expenditures and capital
29outlay projects being considered for approval to the chairpersons
30of the committees in each house of the Legislature that consider
31appropriations, the chairpersons of the committees and the
32appropriate subcommittees in each house of the Legislature that
33consider the State Budget, and the Chairperson of the Joint
34Legislative Budget Committee.

35(c) The University of California shall not use its General Fund
36support appropriation to fund a capital expenditure defined in
37begin delete paragraph (1)end deletebegin insert subparagraph (A)end insert orbegin delete (3)end deletebegin insert (C)end insert ofbegin insert paragraph (2) ofend insert
38 subdivision (b) of Section 92493, or capital outlay project defined
39in subdivision (b) of Section 92494, before receiving approval
40from the Department of Finance pursuant to this section.

P55   1(d) (1)  For the 2013-14 fiscal year only, if the University of
2California plans to use any of its support appropriation in the
3annual budget for the 2013-14 fiscal year for capital expenditures
4pursuant to Section 92493, as defined inbegin insert subparagraph (A) ofend insert
5 paragraphbegin delete (1)end deletebegin insert (2)end insert of subdivision (b) of that section, or for capital
6outlay projects pursuant to Section 92494, it shall simultaneously
7submit, on or before August 1 of that fiscal year, a report to the
8Joint Legislative Budget Committee and the Department of
9Finance. This report shall detail the scope of each capital outlay
10project or capital expenditure and how it will be funded, and it
11shall provide the same level of detail as a capital outlay budget
12change proposal.

13(2) The Department of Finance shall review the report and
14submit a list of preliminarily approved projects to the Joint
15Legislative Budget Committee by November 1 of that fiscal year.

16(3) The Department of Finance shall submit a final list of
17approved projects to the University of California no earlier than
18December 1 of that fiscal year.

19(4) The University of California shall not proceed with any
20capital expenditures pursuant to Section 92493, as defined in
21begin insert subparagraph (A) ofend insert paragraphbegin delete (1)end deletebegin insert (2)end insert of subdivision (b) of that
22section, or capital outlay projects pursuant to Section 92494, before
23receiving approval from the Department of Finance pursuant to
24this subdivision.

25(e) Notwithstanding subdivision (b), the University of California
26may use the authority provided in Section 92493 for the Merced
27Classroom and Academic Office Building, as specified in Provision
283 of Item 6440-001-0001 of Section 2.00 of the Budget Act of
292013.

begin insert

30(f) For capital expenditures related to the Merced 2020 Project,
31the University of California may proceed with capital expenditures
32pursuant to Section 92493, as defined in paragraph (2) of
33 subdivision (b) of that section, or capital outlay projects pursuant
34to Section 92494, only if all work traditionally performed by
35persons with University of California Service Unit (SX) job
36classifications is performed only by employees of the University
37of California.

end insert
begin delete

38(f)

end delete

39begin insert(g)end insert Notwithstanding Section 10231.5 of the Government Code,
40commencing with the 2014-15 fiscal year, on or before February
P56   11 of each fiscal year, the University of California shall
2simultaneously submit a progress report to the Joint Legislative
3Budget Committee and the Department of Finance detailing the
4scope, funding, and current status of all capital expenditures
5undertaken pursuant to Section 92493 and for all capital outlay
6projects undertaken pursuant to Section 92494.

7begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 92495.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
8to read:end insert

9

92495.5.  

The university shall manage its general revenue bond
10programbegin insert and the payments referencedend insert inbegin insert Section 92493, inend insert a
11manner so that not more than 15 percent of its General Fund
12support appropriation, less the amount of that appropriation that
13is required to fund general obligation bond payments and State
14Public Works Board rental payments, is used for the total of all of
15the following:

16(a) begin delete Debt serviceend deletebegin insert Paymentsend insert for capital expenditures pursuant to
17Section 92493.

18(b) Pay-as-you-go capital outlay projects pursuant to Section
1992494.

20(c) State Public Works Board rental payments.

21begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 94874.9 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
22read:end insert

begin insert
23

begin insert94874.9.end insert  

(a) An independent institution of higher education,
24as defined in Section 66010, that is exempt from this chapter
25pursuant to subdivision (i) of Section 94874 shall comply with all
26applicable state and federal laws, including laws relating to fraud,
27abuse, and false advertising.

28(b) An institution described in subdivision (a) may execute a
29contract with the bureau for the bureau to review and, as
30appropriate, act on complaints concerning the institution, in
31accordance with Section 600.9 of Title 34 of the Code of Federal
32Regulations.

33(c) The execution of a contract by the bureau with an institution
34pursuant to subdivision (b) shall constitute establishment by the
35state of that institution to offer programs beyond secondary
36education, including programs leading to a degree or certificate,
37in accordance with Section 600.9 of Title 34 of the Code of Federal
38Regulations.

39(d) The bureau shall use a standard form contract for purposes
40of this section.

P57   1(e) A contract executed pursuant to this section shall, at a
2minimum, do all of the following:

3(1) Require an institution to do all of the following:

4(A) Cooperate with the bureau to resolve complaints received
5pursuant to this section.

6(B) Provide the following disclosure notice in all written and
7Internet-based documentation in which the institution’s complaint
8process is described, including the student catalog, student
9handbook, and the institution’s Internet Web site:


11“An individual may contact the Bureau for Private
12Postsecondary Education for review of a complaint. The bureau
13may be contacted at (address), Sacramento, CA (ZIP Code),
14(Internet Web site address), (telephone and fax numbers).”


16(C) Designate a person at the institution to act as a liaison to
17the bureau.

18(D) Pay one thousand seventy-six dollars ($1,076) each year
19for costs incurred by the bureau to perform activities pursuant to
20the contract, unless another amount is determined by the bureau.

21(2) (A) Authorize the bureau, for any complaint it receives,
22including any complaints related to the institution’s policies or
23procedures, or both, as determined by the bureau, to refer the
24complaint to the institution, an accrediting agency, or another
25appropriate entity for resolution.

26(B) The bureau shall notify the complainant and the institution
27of a referral.

28(C) This paragraph shall not be construed to relieve the bureau
29of its responsibility to ensure that a complaint it has referred for
30purposes of resolution is resolved by the receiving entity.

31(f) The bureau may terminate a contract executed pursuant to
32this section if an institution is no longer an independent institution
33of higher education as defined in Section 66010 or fails to comply
34with the provisions of the contract.

35(g) All moneys collected by the bureau that relate to a contract
36executed pursuant to this section, including payments collected in
37accordance with subparagraph (D) of paragraph (1) of subdivision
38(e), shall be deposited in the Private Postsecondary Education
39Administration Fund.

P58   1(h) The bureau shall maintain, on its Internet Web site, both of
2the following:

3(1) The provisions of the standard form contract used for
4purposes of this section.

5(2) A list of institutions with which the bureau has executed a
6contract pursuant to this section.

7(i) On or before February 1, 2017, and each year thereafter,
8the bureau shall report to the Director of Finance and, in
9conformity with Section 9795 of the Government Code, to the
10Legislature regarding implementation of this section. The report
11shall include all of the following information:

12(1) A list of institutions with which the bureau has executed a
13contract pursuant to this section.

14(2) The total number of complaints received by the bureau
15relating to institutions listed in paragraph (1).

16(3) The general nature of those complaints.

17(4) The total number of those complaints referred to another
18entity, disaggregated by the entity to which each complaint was
19referred.

20(5) The total number of complaints resolved, disaggregated by
21the entity that resolved each complaint.

22(6) The total number of complaints pending, disaggregated by
23the entity to which each complaint was referred.

24(j) Notwithstanding any other law, the Department of General
25Services, at the request of the bureau, may exempt contracts
26executed pursuant to this section from any laws, rules, resolutions,
27or procedures that are otherwise applicable to public contracts
28that the Department of General Services administers.

end insert
29begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 12207 is added to the end insertbegin insertRevenue and Taxation
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert12207.end insert  

(a) For the taxable years beginning on or after January
321, 2017, and before January 1, 2018, there shall be allowed as a
33credit against the “tax,” as described in Section 12202 or 12231,
34an amount equal to 50 percent of the amount contributed by the
35taxpayer during the taxable year to the College Access Tax Credit
36Fund, as allocated and certified by the California Educational
37Facilities Authority.

38(b) (1) The aggregate amount of credit that may be allocated
39and certified pursuant to this section, Section 17053.87, and
P59   1Section 23687 shall be an amount equal to five hundred million
2dollars ($500,000,000).

3(2) (A) For the purposes of this section, the California
4Educational Facilities Authority shall do all of the following:

5(i) On a first-come-first-served basis, allocate and certify tax
6credits to taxpayers under this section.

7(ii) Establish a procedure for taxpayers to contribute to the
8College Access Tax Credit Fund and to obtain from the California
9Educational Facilities Authority a certification for the credit
10allowed by this section. The procedure shall require the California
11Educational Facilities Authority to certify the contribution amount
12eligible for credit within 45 days following receipt of the
13contribution.

14(iii) Provide to the Department of Insurance a copy of each
15credit certificate issued for the calendar year by March 1 of the
16calendar year immediately following the year in which those
17certificates are issued.

18(B) (i) The California Educational Facilities Authority shall
19adopt any regulations necessary to implement this paragraph.

20(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
21with Section 11340) of Part 1 of Division 3 of Title 2 of the
22Government Code) does not apply to any regulation adopted by
23the California Educational Facilities Authority pursuant to clause
24(i).

25(c) In the case where the credit allowed by this section exceeds
26the “tax,” the excess may be carried over to reduce the “tax” in
27the following year, and succeeding five years if necessary, until
28the credit is exhausted.

29(d) The tax credit allowed by subdivision (a), subdivision (a) of
30Section 17053.87, and subdivision (a) of Section 23687 for
31donations to the College Access Tax Credit Fund shall be known
32as the College Access Tax Credit.

33(e) This section shall be repealed on December 1, 2018.

end insert
34begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 17039 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
35amended to read:end insert

36

17039.  

(a) Notwithstanding any provision in this part to the
37contrary, for the purposes of computing tax credits, the term “net
38tax” means the tax imposed under either Section 17041 or 17048
39plus the tax imposed under Section 17504 (relating to lump-sum
40distributions) less the credits allowed by Section 17054 (relating
P60   1to personal exemption credits) and any amount imposed under
2paragraph (1) of subdivision (d) and paragraph (1) of subdivision
3(e) of Section 17560. Notwithstanding the preceding sentence, the
4“net tax” shall not be less than the tax imposed under Section
517504 (relating to the separate tax on lump-sum distributions), if
6any. Credits shall be allowed against “net tax” in the following
7order:

8(1) Credits that do not contain carryover or refundable
9provisions, except those described in paragraphs (4) and (5).

10(2) Credits that contain carryover provisions but do not contain
11refundable provisions, except for those that are allowed to reduce
12“net tax” below the tentative minimum tax, as defined by Section
1317062.

14(3) Credits that contain both carryover and refundable
15provisions.

16(4) The minimum tax credit allowed by Section 17063 (relating
17to the alternative minimum tax).

18(5) Credits that are allowed to reduce “net tax” below the
19tentative minimum tax, as defined by Section 17062.

20(6) Credits for taxes paid to other states allowed by Chapter 12
21(commencing with Section 18001).

22(7) Credits that contain refundable provisions but do not contain
23carryover provisions.

24The order within each paragraph shall be determined by the
25Franchise Tax Board.

26(b) Notwithstanding the provisions of Sections 17061 (relating
27to refunds pursuant to the Unemployment Insurance Code) and
2819002 (relating to tax withholding), the credits provided in those
29sections shall be allowed in the order provided in paragraph (6) of
30subdivision (a).

31(c) (1) Notwithstanding any other provision of this part, no tax
32credit shall reduce the tax imposed under Section 17041 or 17048
33plus the tax imposed under Section 17504 (relating to the separate
34tax on lump-sum distributions) below the tentative minimum tax,
35as defined by Section 17062, except the following credits:

36(A) The credit allowed by Section 17052.2 (relating to teacher
37retention tax credit).

38(B) The credit allowed by former Section 17052.4 (relating to
39solar energy).

P61   1(C) The credit allowed by former Section 17052.5 (relating to
2solar energy, repealed on January 1, 1987).

3(D) The credit allowed by former Section 17052.5 (relating to
4solar energy, repealed on December 1, 1994).

5(E) The credit allowed by Section 17052.12 (relating to research
6expenses).

7(F) The credit allowed by former Section 17052.13 (relating to
8sales and use tax credit).

9(G) The credit allowed by former Section 17052.15 (relating to
10Los Angeles Revitalization Zone sales tax credit).

11(H) The credit allowed by Section 17052.25 (relating to the
12adoption costs credit).

13(I) The credit allowed by Section 17053.5 (relating to the
14renter’s credit).

15(J) The credit allowed by former Section 17053.8 (relating to
16enterprise zone hiring credit).

17(K) The credit allowed by former Section 17053.10 (relating to
18Los Angeles Revitalization Zone hiring credit).

19(L) The credit allowed by former Section 17053.11 (relating to
20program area hiring credit).

21(M) For each taxable year beginning on or after January 1, 1994,
22the credit allowed by former Section 17053.17 (relating to Los
23Angeles Revitalization Zone hiring credit).

24(N) The credit allowed by Section 17053.33 (relating to targeted
25tax area sales or use tax credit).

26(O) The credit allowed by Section 17053.34 (relating to targeted
27tax area hiring credit).

28(P) The credit allowed by Section 17053.49 (relating to qualified
29property).

30(Q) The credit allowed by Section 17053.70 (relating to
31enterprise zone sales or use tax credit).

32(R) The credit allowed by Section 17053.74 (relating to
33enterprise zone hiring credit).

34(S) The credit allowed by Section 17054 (relating to credits for
35personal exemption).

36(T) The credit allowed by Section 17054.5 (relating to the credits
37for a qualified joint custody head of household and a qualified
38taxpayer with a dependent parent).

39(U) The credit allowed by Section 17054.7 (relating to the credit
40for a senior head of household).

P62   1(V) The credit allowed by former Section 17057 (relating to
2clinical testing expenses).

3(W) The credit allowed by Section 17058 (relating to
4low-income housing).

5(X) For taxable years beginning on or after January 1, 2014, the
6credit allowed by Section 17059.2 (relating to GO-Biz California
7Competes Credit).

8(Y) The credit allowed by Section 17061 (relating to refunds
9pursuant to the Unemployment Insurance Code).

10(Z) Credits for taxes paid to other states allowed by Chapter 12
11(commencing with Section 18001).

12(AA) The credit allowed by Section 19002 (relating to tax
13withholding).

begin insert

14(AB) For taxable years beginning on or after January 1, 2014,
15the credit allowed by Section 17053.86 (relating to the College
16Access Tax Credit Fund).

end insert
begin insert

17(AC) For taxable years beginning on or after January 1, 2017,
18the credit allowed by Section 17053.87 (relating to the College
19Access Tax Credit Fund).

end insert

20(2) Any credit that is partially or totally denied under paragraph
21(1) shall be allowed to be carried over and applied to the net tax
22in succeeding taxable years, if the provisions relating to that credit
23include a provision to allow a carryover when that credit exceeds
24the net tax.

25(d) Unless otherwise provided, any remaining carryover of a
26credit allowed by a section that has been repealed or made
27inoperative shall continue to be allowed to be carried over under
28the provisions of that section as it read immediately prior to being
29repealed or becoming inoperative.

30(e) (1) Unless otherwise provided, if two or more taxpayers
31(other than husband and wife) share in costs that would be eligible
32for a tax credit allowed under this part, each taxpayer shall be
33eligible to receive the tax credit in proportion to his or her
34respective share of the costs paid or incurred.

35(2) In the case of a partnership, the credit shall be allocated
36among the partners pursuant to a written partnership agreement in
37accordance with Section 704 of the Internal Revenue Code, relating
38to partner’s distributive share.

39(3) In the case of a husband and wife who file separate returns,
40the credit may be taken by either or equally divided between them.

P63   1(f) Unless otherwise provided, in the case of a partnership, any
2credit allowed by this part shall be computed at the partnership
3level, and any limitation on the expenses qualifying for the credit
4or limitation upon the amount of the credit shall be applied to the
5partnership and to each partner.

6(g) (1) With respect to any taxpayer that directly or indirectly
7owns an interest in a business entity that is disregarded for tax
8purposes pursuant to Section 23038 and any regulations thereunder,
9the amount of any credit or credit carryforward allowable for any
10taxable year attributable to the disregarded business entity shall
11be limited in accordance with paragraphs (2) and (3).

12(2) The amount of any credit otherwise allowed under this part,
13including any credit carryover from prior years, that may be applied
14to reduce the taxpayer’s “net tax,” as defined in subdivision (a),
15for the taxable year shall be limited to an amount equal to the
16excess of the taxpayer’s regular tax (as defined in Section 17062),
17determined by including income attributable to the disregarded
18business entity that generated the credit or credit carryover, over
19the taxpayer’s regular tax (as defined in Section 17062), determined
20by excluding the income attributable to that disregarded business
21entity. No credit shall be allowed if the taxpayer’s regular tax (as
22defined in Section 17062), determined by including the income
23attributable to the disregarded business entity, is less than the
24taxpayer’s regular tax (as defined in Section 17062), determined
25by excluding the income attributable to the disregarded business
26entity.

27(3) If the amount of a credit allowed pursuant to the section
28establishing the credit exceeds the amount allowable under this
29subdivision in any taxable year, the excess amount may be carried
30over to subsequent taxable years pursuant to subdivisions (c) and
31(d).

32(h) (1) Unless otherwise specifically provided, in the case of a
33taxpayer that is a partner or shareholder of an eligible pass-thru
34entity described in paragraph (2), any credit passed through to the
35taxpayer in the taxpayer’s first taxable year beginning on or after
36the date the credit is no longer operative may be claimed by the
37taxpayer in that taxable year, notwithstanding the repeal of the
38statute authorizing the credit prior to the close of that taxable year.

39(2) For purposes of this subdivision, “eligible pass-thru entity”
40means any partnership or “S” corporation that files its return on a
P64   1fiscal year basis pursuant to Section 18566, and that is entitled to
2a credit pursuant to this part for the taxable year that begins during
3the last year the credit is operative.

4(3) This subdivision shall apply to credits that become
5inoperative on or after the operative date of the act adding this
6subdivision.

7begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 17053.86 of the end insertbegin insertRevenue and Taxation Codeend insert
8begin insert is amended to read:end insert

9

17053.86.  

(a) (1) For taxable years beginning on or after
10January 1, 2014, and before January 1, 2017, there shall be allowed
11as a credit against the “net tax,” as defined in Section 17039, an
12amount equal to the following:

13(A) For each taxable year beginning on and after January 1,
142014, and before January 1, 2015, 60 percent of the amount
15contributed by the taxpayer for the 2014 taxable year to the College
16Access Tax Credit Fund, as allocated and certified by the California
17Educational Facilities Authority.

18(B) For each taxable year beginning on and after January 1,
192015, and before January 1, 2016, 55 percent of the amount
20contributed by the taxpayer for the 2015 taxable year to the College
21Access Tax Credit Fund, as allocated and certified by the California
22Educational Facilities Authority.

23(C) For each taxable year beginning on and after January 1,
242016, and before January 1, 2017, 50 percent of the amount
25contributed by the taxpayer for the 2016 taxable year to the College
26Access Tax Credit Fund, as allocated and certified by the California
27Educational Facilities Authority.

28(2) Contributions shall be made only in cash.

29(b) (1) The aggregate amount of credit that may be allocated
30and certified pursuant to this section and Section 23686 shall be
31an amount equal to the sum of all of the following:

32(A) Five hundred million dollars ($500,000,000) in credits for
33the 2014 calendar year and each calendar year thereafter.

34(B) The amount of previously unallocated and uncertified
35credits.

36(2) (A) For purposes of this section, the California Educational
37Facilities Authority shall do all of the following:

38(i) On or after January 1, 2014, and before January 1, 2017,
39allocate and certify tax credits to taxpayers under this section.

P65   1(ii) Establish a procedure for taxpayers to contribute to the
2College Access Tax Credit Fund and to obtain from the California
3Educational Facilities Authority a certification for the credit
4allowed by this section. The procedure shall require the California
5Educational Facilities Authority to certify the contribution amount
6eligible for credit within 45 days following receipt of the
7contribution.

8(iii) Provide to the Franchise Tax Board a copy of each credit
9certificate issued for the calendar year by March 1 of the calendar
10year immediately following the year in which those certificates
11are issued.

12(B) (i) The California Educational Facilities Authority shall
13adopt any regulations necessary to implement this paragraph.

14(ii) begin delete Chapterend deletebegin insert The Administrative Procedure Act (Chapterend insert 3.5
15(commencing with Section 11340) of Part 1 of Division 3 of Title
162 of the Governmentbegin delete Codeend deletebegin insert Code)end insert does not apply to any regulation
17adopted by the California Educational Facilities Authority pursuant
18to clause (i).

19(c) (1) In the case where the credit allowed by this section
20exceeds the “net tax,” the excess may be carried over to reduce
21the “net tax” in the following year, and succeeding five years if
22necessary, until the credit is exhausted.

23(2) A deduction shall not be allowed under this part for amounts
24taken into account under this section in calculating the credit
25allowed by this section.

26(d) (1) The College Access Tax Credit Fund is hereby created
27as a special fund in the State Treasury. All revenue in this special
28fund shall be allocated as follows:

29(A) First to the General Fund in an amount equal to the
30aggregate amount of certified credits allowed pursuant to this
31section and Section 23686 for the taxable year. Funds allocated to
32the General Fund shall be considered General Fund revenues for
33purposes of Sections 8 and 8.5 of Article XVI of the California
34Constitution.

begin delete end deletebegin delete

35(B) Second, upon appropriation, as follows:

end delete
begin delete end deletebegin delete

36(i)

end delete

37begin insert(B)end insertbegin delete Toend deletebegin insert Second, upon appropriation, toend insert the Franchise Tax Board,
38the California Educational Facilities Authority, the Controller, and
39the Student Aid Commission for reimbursement of all
40administrative costs incurred by those agencies in connection with
P66   1their duties under this section, Section 23686, and Sectionbegin delete 69432.7end delete
2begin insert 69431.7end insert of the Education Code.

begin delete

3(ii)

end delete

4begin insert(C)end insertbegin delete Toend deletebegin insert Third, notwithstanding Section 13340 ofend insert thebegin insert Government
5Code, the remaining revenue shall be continuously appropriated
6to theend insert
Student Aid Commission for purposes of awarding Cal
7Grants to studentsbegin delete pursuantend deletebegin insert subjectend insert to Section 69431.7 of the
8Education Code.

9(2) The tax credit allowed by subdivision (a)begin delete of this sectionend delete and
10subdivision (a) of Section 23686 for donations to the College
11Access Tax Credit Fund shall be known as the College Access
12Tax Credit.

13(e) This section shallbegin delete remain in effect only untilend deletebegin insert be repealed onend insert
14 December 1,begin delete 2017, and as of that date is repealed.end deletebegin insert 2017.end insert

15begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 17053.87 is added to the end insertbegin insertRevenue and
16Taxation Code
end insert
begin insert, to read:end insert

begin insert
17

begin insert17053.87.end insert  

(a) For the taxable years beginning on or after
18January 1, 2017, and before January 1, 2018, there shall be
19allowed as a credit against the “net tax,” as defined in Section
2017039, an amount equal to 50 percent of the amount contributed
21by the taxpayer during the taxable year to the College Access Tax
22Credit Fund, as allocated and certified by the California
23Educational Facilities Authority.

24(b) (1) The aggregate amount of credit that may be allocated
25and certified pursuant to this section, Section 12207, and Section
2623687 shall be an amount equal to five hundred million dollars
27($500,000,000).

28(2) (A) For the purposes of this section, the California
29Educational Facilities Authority shall do all of the following:

30(i) On a first-come-first-served basis, allocate and certify tax
31credits to taxpayers under this section.

32(ii) Establish a procedure for taxpayers to contribute to the
33College Access Tax Credit Fund and to obtain from the California
34Educational Facilities Authority a certification for the credit
35allowed by this section. The procedure shall require the California
36Educational Facilities Authority to certify the contribution amount
37eligible for credit within 45 days following receipt of the
38contribution.

39(iii) Provide to the Franchise Tax Board a copy of each credit
40certificate issued for the calendar year by March 1 of the calendar
P67   1year immediately following the year in which those certificates
2are issued.

3(B) (i) The California Educational Facilities Authority shall
4adopt any regulations necessary to implement this paragraph.

5(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
6with Section 11340) of Part 1 of Division 3 of Title 2 of the
7Government Code) does not apply to any regulation adopted by
8the California Educational Facilities Authority pursuant to clause
9(i).

10(c) (1) In the case where the credit allowed by this section
11exceeds the “net tax,” the excess may be carried over to reduce
12the “net tax” in the following year, and succeeding five years if
13necessary, until the credit is exhausted.

14(2) A deduction shall not be allowed under this part for amounts
15taken into account under this section in calculating the credit
16allowed by this section.

17(d) (1) The College Access Tax Credit Fund is hereby created
18as a special fund in the State Treasury. All revenue in this special
19fund shall be allocated as follows:

20(A) First to the General Fund in an amount equal to the
21aggregate amount of certified credits allowed pursuant to this
22section and Section 23687 for the taxable year. Funds allocated
23to the General Fund shall be considered General Fund revenues
24for purposes of Sections 8 and 8.5 of Article XVI of the California
25Constitution.

26(B) Second, upon appropriation, to the Department of Insurance,
27the Franchise Tax Board, the California Educational Facilities
28Authority, the Controller, and the Student Aid Commission for
29reimbursement of all administrative costs incurred by those
30agencies in connection with their duties under this section, Section
3112207, Section 23687, and Section 69431.7 of the Education Code.

32(C) Third, notwithstanding Section 13340 of the Government
33Code, the remaining revenue shall be continuously appropriated
34to the Student Aid Commission for purposes of awarding Cal
35Grants to students subject to Section 69431.7 of the Education
36Code.

37(2) The tax credit allowed by subdivision (a), subdivision (a) of
38Section 12207, and subdivision (a) of Section 23687 for donations
39to the College Access Tax Credit Fund shall be known as the
40College Access Tax Credit.

P68   1(e) This section shall be repealed on December 1, 2018.

end insert
2begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 23036 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
3amended to read:end insert

4

23036.  

(a) (1) The term “tax” includes any of the following:

5(A) The tax imposed under Chapter 2 (commencing with Section
623101).

7(B) The tax imposed under Chapter 3 (commencing with Section
823501).

9(C) The tax on unrelated business taxable income, imposed
10under Section 23731.

11(D) The tax on “S” corporations imposed under Section 23802.

12(2) The term “tax” does not include any amount imposed under
13paragraph (1) of subdivision (e) of Section 24667 or paragraph (2)
14of subdivision (f) of Section 24667.

15(b) For purposes of Article 5 (commencing with Section 18661)
16of Chapter 2, Article 3 (commencing with Section 19031) of
17Chapter 4, Article 6 (commencing with Section 19101) of Chapter
184, and Chapter 7 (commencing with Section 19501) of Part 10.2,
19and for purposes of Sections 18601, 19001, and 19005, the term
20“tax” also includes all of the following:

21(1) The tax on limited partnerships, imposed under Section
2217935, the tax on limited liability companies, imposed under
23Section 17941, and the tax on registered limited liability
24partnerships and foreign limited liability partnerships imposed
25under Section 17948.

26(2) The alternative minimum tax imposed under Chapter 2.5
27(commencing with Section 23400).

28(3) The tax on built-in gains of “S” corporations, imposed under
29Section 23809.

30(4) The tax on excess passive investment income of “S”
31corporations, imposed under Section 23811.

32(c) Notwithstanding any other provision of this part, credits are
33allowed against the “tax” in the following order:

34(1) Credits that do not contain carryover provisions.

35(2) Credits that, when the credit exceeds the “tax,” allow the
36excess to be carried over to offset the “tax” in succeeding taxable
37years, except for those credits that are allowed to reduce the “tax”
38below the tentative minimum tax, as defined by Section 23455.
39The order of credits within this paragraph shall be determined by
40the Franchise Tax Board.

P69   1(3) The minimum tax credit allowed by Section 23453.

2(4) Credits that are allowed to reduce the “tax” below the
3tentative minimum tax, as defined by Section 23455.

4(5) Credits for taxes withheld under Section 18662.

5(d) Notwithstanding any other provision of this part, each of
6the following applies:

7(1) A credit may not reduce the “tax” below the tentative
8minimum tax (as defined by paragraph (1) of subdivision (a) of
9Section 23455), except the following credits:

10(A) The credit allowed by former Section 23601 (relating to
11solar energy).

12(B) The credit allowed by former Section 23601.4 (relating to
13solar energy).

14(C) The credit allowed by former Section 23601.5 (relating to
15solar energy).

16(D) The credit allowed by Section 23609 (relating to research
17expenditures).

18(E) The credit allowed by former Section 23609.5 (relating to
19clinical testing expenses).

20(F) The credit allowed by Section 23610.5 (relating to
21low-income housing).

22(G) The credit allowed by former Section 23612 (relating to
23sales and use tax credit).

24(H) The credit allowed by Section 23612.2 (relating to enterprise
25zone sales or use tax credit).

26(I) The credit allowed by former Section 23612.6 (relating to
27Los Angeles Revitalization Zone sales tax credit).

28(J) The credit allowed by former Section 23622 (relating to
29enterprise zone hiring credit).

30(K) The credit allowed by Section 23622.7 (relating to enterprise
31zone hiring credit).

32(L) The credit allowed by former Section 23623 (relating to
33program area hiring credit).

34(M) The credit allowed by former Section 23623.5 (relating to
35Los Angeles Revitalization Zone hiring credit).

36(N) The credit allowed by former Section 23625 (relating to
37Los Angeles Revitalization Zone hiring credit).

38(O) The credit allowed by Section 23633 (relating to targeted
39tax area sales or use tax credit).

P70   1(P) The credit allowed by Section 23634 (relating to targeted
2tax area hiring credit).

3(Q) The credit allowed by former Section 23649 (relating to
4qualified property).

5(R) For taxable years beginning on or after January 1, 2011, the
6credit allowed by Section 23685 (relating to qualified motion
7pictures).

8(S) For taxable years beginning on or after January 1, 2014, the
9credit allowed by Section 23689 (relating to GO-Biz California
10Competes Credit).

11(T) For taxable years beginning on or after January 1, 2016, the
12credit allowed by Section 23695 (relating to qualified motion
13pictures).

begin insert

14(U) For taxable years beginning on or after January 1, 2014,
15the credit allowed by Section 23686 (relating to the College Access
16Tax Credit Fund).

end insert
begin insert

17(V) For taxable years beginning on or after January 1, 2017,
18the credit allowed by Section 23687 (relating to the College Access
19Tax Credit Fund).

end insert

20(2) A credit against the tax may not reduce the minimum
21franchise tax imposed under Chapter 2 (commencing with Section
2223101).

23(e) Any credit which is partially or totally denied under
24subdivision (d) is allowed to be carried over to reduce the “tax”
25in the following year, and succeeding years if necessary, if the
26provisions relating to that credit include a provision to allow a
27carryover of the unused portion of that credit.

28(f) Unless otherwise provided, any remaining carryover from a
29credit that has been repealed or made inoperative is allowed to be
30carried over under the provisions of that section as it read
31immediately prior to being repealed or becoming inoperative.

32(g) Unless otherwise provided, if two or more taxpayers share
33in costs that would be eligible for a tax credit allowed under this
34part, each taxpayer is eligible to receive the tax credit in proportion
35to his or her respective share of the costs paid or incurred.

36(h) Unless otherwise provided, in the case of an “S” corporation,
37any credit allowed by this part is computed at the “S” corporation
38level, and any limitation on the expenses qualifying for the credit
39or limitation upon the amount of the credit applies to the “S”
40corporation and to each shareholder.

P71   1(i) (1) With respect to any taxpayer that directly or indirectly
2owns an interest in a business entity that is disregarded for tax
3purposes pursuant to Section 23038 and any regulations thereunder,
4the amount of any credit or credit carryforward allowable for any
5taxable year attributable to the disregarded business entity is limited
6in accordance with paragraphs (2) and (3).

7(2) The amount of any credit otherwise allowed under this part,
8including any credit carryover from prior years, that may be applied
9to reduce the taxpayer’s “tax,” as defined in subdivision (a), for
10the taxable year is limited to an amount equal to the excess of the
11taxpayer’s regular tax (as defined in Section 23455), determined
12by including income attributable to the disregarded business entity
13that generated the credit or credit carryover, over the taxpayer’s
14regular tax (as defined in Section 23455), determined by excluding
15the income attributable to that disregarded business entity. A credit
16is not allowed if the taxpayer’s regular tax (as defined in Section
1723455), determined by including the income attributable to the
18disregarded business entity is less than the taxpayer’s regular tax
19(as defined in Section 23455), determined by excluding the income
20attributable to the disregarded business entity.

21(3) If the amount of a credit allowed pursuant to the section
22establishing the credit exceeds the amount allowable under this
23subdivision in any taxable year, the excess amount may be carried
24over to subsequent taxable years pursuant to subdivisions (d), (e),
25and (f).

26(j) (1) Unless otherwise specifically provided, in the case of a
27taxpayer that is a partner or shareholder of an eligible pass-thru
28entity described in paragraph (2), any credit passed through to the
29taxpayer in the taxpayer’s first taxable year beginning on or after
30the date the credit is no longer operative may be claimed by the
31taxpayer in that taxable year, notwithstanding the repeal of the
32statute authorizing the credit prior to the close of that taxable year.

33(2) For purposes of this subdivision, “eligible pass-thru entity”
34means any partnership or “S” corporation that files its return on a
35fiscal year basis pursuant to Section 18566, and that is entitled to
36a credit pursuant to this part for the taxable year that begins during
37the last year a credit is operative.

38(3) This subdivision applies to credits that become inoperative
39on or after the operative date of the act adding this subdivision.

P72   1begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 23686 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
2amended to read:end insert

3

23686.  

(a) (1) Forbegin delete eachend delete taxablebegin delete yearend deletebegin insert yearsend insert beginning on or
4after January 1, 2014, and before January 1, 2017, there shall be
5allowed as a credit against the “tax,” as defined in Section 23036,
6an amount equal to the following:

7(A) For taxable years beginning on and after January 1, 2014,
8and before January 1, 2015, 60 percent of the amount contributed
9by the taxpayer for the 2014 taxable year to the College Access
10Tax Credit Fund, as allocated and certified by the California
11Educational Facilities Authority.

12(B) For taxable years beginning on and after January 1, 2015,
13and before January 1, 2016, 55 percent of the amount contributed
14by the taxpayer for the 2015 taxable year to the College Access
15Tax Credit Fund, as allocated and certified by the California
16Educational Facilities Authority.

17(C) For taxable years beginning on and after January 1, 2016,
18and before January 1, 2017, 50 percent of the amount contributed
19by the taxpayer for the 2016 taxable year to the College Access
20Tax Credit Fund, as allocated and certified by the California
21Educational Facilities Authority.

22(2) Contributions shall be made only in cash.

23(b) (1) The aggregate amount of credit that may be allocated
24and certified pursuant to this section and Section 17053.86 shall
25be an amount equal to the sum of all of the following:

26(A) Five hundred million dollars ($500,000,000) for the 2014
27calendar year and each calendar year thereafter.

28(B) The amount of previously unallocated and uncertified
29credits.

30(2) (A) For purposes of this section, the California Educational
31Facilities Authority shall do all of the following:

32(i) On or after January 1, 2014, and before January 1, 2017,
33allocate and certify tax credits to taxpayers under this section.

34(ii) Establish a procedure for taxpayers to contribute to the
35College Access Tax Credit Fund and to obtain from the California
36Educational Facilities Authority a certification for the credit
37allowed by this section. The procedure shall require the California
38Educational Facilities Authority to certify the contribution amount
39eligible for credit within 45 days following receipt of the
40contribution.

P73   1(iii) Provide to the Franchise Tax Board a copy of each credit
2certificate issued for the calendar year by March 1 of the calendar
3year immediately following the year in which those certificates
4are issued.

5(B) (i) The California Educational Facilities Authority shall
6adopt any regulations necessary to implement this paragraph.

7(ii) begin delete Chapterend deletebegin insert The Administrative Procedure Act (Chapterend insert 3.5
8(commencing with Section 11340) of Part 1 of Division 3 of Title
92 of the Governmentbegin delete Codeend deletebegin insert Code)end insert does not apply to any regulation
10adopted by the California Educational Facilities Authority pursuant
11to clause (i).

12(c) (1) In the case where the credit allowed by this section
13exceeds the “tax,” the excess may be carried over to reduce the
14“tax” in the following year, and succeeding five years if necessary,
15until the credit is exhausted.

16(2) A deduction shall not be allowed under this part for amounts
17taken into account under this section in calculating the credit
18allowed by this section.

19(d) This section shallbegin delete remain in effect only untilend deletebegin insert be repealed onend insert
20 December 1,begin delete 2017, and as of that date is repealed.end deletebegin insert 2017.end insert

21begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 23687 is added to the end insertbegin insertRevenue and Taxation
22Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert23687.end insert  

(a) For taxable years beginning on or after January
241, 2017, and before January 1, 2018, there shall be allowed as a
25credit against the “tax,” as defined in Section 23036, an amount
26equal to 50 percent of the amount contributed by the taxpayer
27during the taxable year to the College Access Tax Credit Fund,
28as allocated and certified by the California Educational Facilities
29Authority.

30(b) (1) The aggregate amount of credit that may be allocated
31and certified pursuant to this section, Section 12207, and Section
3217053.87 shall be an amount equal to five hundred million dollars
33($500,000,000).

34(2) (A) For the purposes of this section, the California
35Educational Facilities Authority shall do all of the following:

36(i) On a first-come-first-served basis, allocate and certify tax
37credits to taxpayers under this section.

38(ii) Establish a procedure for taxpayers to contribute to the
39College Access Tax Credit Fund and to obtain from the California
40Educational Facilities Authority a certification for the credit
P74   1allowed by this section. The procedure shall require the California
2Educational Facilities Authority to certify the contribution amount
3eligible for credit within 45 days following receipt of the
4contribution.

5(iii) Provide to the Franchise Tax Board a copy of each credit
6certificate issued for the calendar year by March 1 of the calendar
7year immediately following the year in which those certificates
8are issued.

9(B) (i) The California Educational Facilities Authority shall
10adopt any regulations necessary to implement this paragraph.

11(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
12with Section 11340) of Part 1 of Division 3 of Title 2 of the
13Government Code) does not apply to any regulation adopted by
14the California Educational Facilities Authority pursuant to clause
15(i).

16(c) (1) In the case where the credit allowed by this section
17exceeds the “tax,” the excess may be carried over to reduce the
18“tax” in the following year, and succeeding five years if necessary,
19until the credit is exhausted.

20(2) A deduction shall not be allowed under this part for amounts
21taken into account under this section in calculating the credit
22allowed by this section.

23(d) The tax credit allowed by subdivision (a), subdivision (a) of
24Section 12207, and Section 17053.87 for donations to the College
25Access Tax Credit Fund shall be known as the College Access Tax
26Credit.

27(e) This section shall be repealed on December 1, 2018.

end insert
28begin insert

begin insertSEC. 33.end insert  

end insert
begin insert

The Legislature finds and declares that the retroactive
29amendments made by this act to Sections 17039 and 23036 of the
30Revenue and Taxation Code, which authorize the College Access
31Tax Credit to reduce the tentative minimum tax below the regular
32tax, serve a statewide public purpose by ensuring that the College
33Access Tax Credit Fund is fully utilized, thereby benefiting students
34who receive Cal Grants pursuant to Section 69431.7 of the
35Education Code, and do not constitute a gift of public funds within
36the meaning of Section 6 of Article XVI of the California
37Constitution.

end insert
38begin insert

begin insertSEC. 34.end insert  

end insert
begin insert

(a) The Legislative Analyst’s Office shall conduct a
39study to assess the need for new campuses of the CSU or the UC.
40This study shall consist of both of the following parts:

end insert
begin insert

P75   1(1) An analysis of the need within certain regions of the state
2for a CSU campus and statewide for a UC campus. To the extent
3applicable data are available, this analysis shall include all of the
4following:

end insert
begin insert

5(A) Consideration of enrollment demand based on relative
6demographic levels and eligible students for each county and
7statewide. This shall include consideration of 5- to 10-year
8projections of the college-age population and public high school
9graduates. It also shall include consideration of data, for the most
10recent year available, on college preparedness, including the
11number and share of high school graduates completing the “A-G”
12admissions requirements and the number and share of
13transfer-prepared community college students.

end insert
begin insert

14(B) For each county and statewide, data on UC and CSU
15applications, admissions, and enrollment, for the most recent
16academic year available, and an estimate, based on that data, of
17college-going rates to UC and CSU.

end insert
begin insert

18(C) Data on adult educational attainment by county and
19statewide for the most recent year available.

end insert
begin insert

20(2) An analysis of the physical capacities of existing UC and
21 CSU campuses, as set forth in their respective master plans,
22relative to current enrollment. This analysis shall identify UC or
23CSU campuses already at maximum capacity and those with
24remaining physical capacity. The analysis also shall identify which
25CSU campuses no longer provide enrollment priority for local
26applicants.

end insert
begin insert

27(b) The UC and CSU shall provide data needed by the
28Legislative Analyst’s Office to meet the requirements of this section
29to that office upon its request.

end insert
begin insert

30(c) (1) The Legislative Analyst’s Office shall submit reports,
31including, but not necessarily limited to, the data and analyses
32required by this section, to the Legislature and Department of
33Finance as follows:

end insert
begin insert

34(A) A report relating to CSU shall be submitted on or before
35January 1, 2017.

end insert
begin insert

36(B) A report relating to UC shall be submitted on or before
37January 1, 2018.

end insert
begin insert

38(2) The Legislative Analyst’s Office shall submit the reports
39required by this section in compliance with Section 9795 of the
40Government Code.

end insert
P76   1begin insert

begin insertSEC. 35.end insert  

end insert
begin insert

If the Commission on State Mandates determines
2that this act contains costs mandated by the state, reimbursement
3to local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.

end insert
6begin insert

begin insertSEC. 36.end insert  

end insert
begin insert

(a) The sum of forty-eight million dollars
7($48,000,000) is hereby appropriated from the General Fund to
8the Board of Governors of the California Community Colleges for
9purposes of funding the Career Technical Education Pathways
10Program established pursuant to Chapter 1 (commencing with
11Section 88530) of Part 52 of Division 7 of Title 3 of the Education
12Code.

end insert
begin insert

13(b) For purposes of making the computations required by
14Section 8 of Article XVI of the California Constitution, the funds
15appropriated pursuant to this section shall be deemed to be
16“General Fund revenues appropriated for community college
17districts,” as defined in subdivision (d) of Section 41202 of the
18Education Code, for the 2014-15 fiscal year, and included within
19the “total allocations to school districts and community college
20districts from General Fund proceeds of taxes appropriated
21pursuant to Article XIII B,” as defined in subdivision (e) of Section
2241202 of the Education Code, for the 2014-15 fiscal year.

end insert
23begin insert

begin insertSEC. 37.end insert  

end insert
begin insert

(a) The sum of forty-eight million dollars
24($48,000,000) is hereby appropriated from the General Fund to
25the Chancellor of the California Community Colleges for allocation
26to community college districts. A community college district shall
27use its allocation for any of the following purposes:

end insert
begin insert

28(1) Scheduled maintenance and special repairs of facilities. As
29a condition for receiving and expending funds for maintenance or
30special repairs, a community college district shall certify in a
31resolution that it will increase its operations and maintenance
32spending from the 1995-96 fiscal year by at least the amount the
33community college district uses from its allocation under this
34paragraph for maintenance and special repairs. The question of
35whether a community college district has complied with its
36resolution shall be reviewed under the annual audit of that district.

end insert
begin insert

37(2) Hazardous substances abatement, clean up, and repairs.

end insert
begin insert

38(3) Architectural barrier removal projects that meet the
39requirements of the federal Americans with Disabilities Act of
P77   11990 (42 U.S.C. Sec. 12101 et seq.) and seismic retrofit projects
2limited to four hundred thousand dollars ($400,000) per project.

end insert
begin insert

3(4) For replacement of instructional equipment and library
4materials. As a condition for receiving and expending funds for
5instructional equipment and library materials, a community college
6district shall certify in a resolution that it will not use any of its
7allocation under this paragraph for personnel services costs or
8operating expenses. The question of whether a community college
9district has complied with its resolution shall be reviewed under
10the annual audit of that district.

end insert
begin insert

11(5) Water conservation projects to reduce water consumption
12in cooperation with the Governor’s Executive Order B-29-15.
13Projects may include any of the following:

end insert
begin insert

14(A) Replacement of water intensive landscaping with drought
15tolerant landscaping, synthetic turf, provided that the turf is used
16only in nonathletic areas, and other nonplant materials.

end insert
begin insert

17(B) Drip or low-flow irrigation systems.

end insert
begin insert

18(C) Building improvements to reduce water usage.

end insert
begin insert

19(D) Installation of meters for wells to allow for monitoring of
20water usage.

end insert
begin insert

21(b) The Chancellor of the California Community Colleges shall
22allocate funds under this section to community college districts
23on the basis of actual reported full-time equivalent students, except
24that the chancellor may establish a minimum allocation to be
25received by each district. The chancellor may establish guidelines
26for the use of the moneys allocated.

end insert
begin insert

27(c) For purposes of making the computations required by Section
288 of Article XVI of the California Constitution, the funds
29appropriated pursuant to this section shall be deemed to be
30“General Fund revenues appropriated for community college
31districts,” as defined in subdivision (d) of Section 41202 of the
32Education Code, for the 2014-15 fiscal year, and included within
33the “total allocations to school districts and community college
34districts from General Fund proceeds of taxes appropriated
35pursuant to Article XIII B,” as defined in subdivision (e) of Section
3641202 of the Education Code, for the 2014-15 fiscal year.

end insert
37begin insert

begin insertSEC. 38.end insert  

end insert
begin insert

(a) The sum of sixty million dollars ($60,000,000)
38is hereby appropriated from the General Fund to the Chancellor
39of the California Community Colleges for allocation to community
P78   1college districts pursuant to Part 54 (commencing with Section
288800) of Division 7 of Title 3 of the Education Code.

end insert
begin insert

3(b) For purposes of making the computations required by
4Section 8 of Article XVI of the California Constitution, the funds
5appropriated pursuant to this section shall be deemed to be
6“General Fund revenues appropriated for community college
7districts,” as defined in subdivision (d) of Section 41202 of the
8Education Code, for the 2014-15 fiscal year, and included within
9the “total allocations to school districts and community college
10districts from General Fund proceeds of taxes appropriated
11pursuant to Article XIII B,” as defined in subdivision (e) of Section
1241202 of the Education Code, for the 2014-15 fiscal year.

end insert
13begin insert

begin insertSEC. 39.end insert  

end insert
begin insert

(a) The sum of six million dollars ($6,000,000) is
14hereby appropriated from the General Fund to the Chancellor of
15the California Community Colleges for allocation to community
16college districts to support the implementation of the baccalaureate
17degree pilot program established pursuant to Chapter 747 of the
18Statutes of 2014. These funds may be used to support professional
19development activities.

end insert
begin insert

20(b) For purposes of making the computations required by
21Section 8 of Article XVI of the California Constitution, the funds
22appropriated pursuant to this section shall be deemed to be
23“General Fund revenues appropriated for community college
24districts,” as defined in subdivision (d) of Section 41202 of the
25Education Code, for the 2014-15 fiscal year, and included within
26the “total allocations to school districts and community college
27districts from General Fund proceeds of taxes appropriated
28pursuant to Article XIII B,” as defined in subdivision (e) of Section
2941202 of the Education Code, for the 2014-15 fiscal year.

end insert
30begin insert

begin insertSEC. 40.end insert  

end insert
begin insert

The sum of one million dollars ($1,000,000) is hereby
31appropriated from the General Fund for use pursuant to legislation
32enacted in the first year of the 2015-16 Regular Session of the
33Legislature related to a study of those eligible for admission to
34the University of California and the California State University.

end insert
35begin insert

begin insertSEC. 41.end insert  

end insert

begin insertItem 6910-102-0001 is added to Section 2.00 of the end insertbegin insert36Budget Act of 2014end insertbegin insert, to read:end insert

 

begin insert
begin insert

6910-102-0001--For local assistance, Awards for Innovation in Higher Education (Proposition 98)    

end insert
begin insert23,000,000end insert
end insert

 

P79   1begin insert

begin insertSEC. 42.end insert  

end insert
begin insert

Notwithstanding any other law:

end insert
begin insert

2(a) The University of California may use any project savings
3from the Merced Classroom and Academic Office Building project
4identified in Item 6440-301-6048 of Section 2.00 of the Budget Act
5of 2012, as added by Section 9 of Chapter 575 of the Statutes of
62012, for the construction phase of the Merced Classroom and
7Academic Office Building project as authorized in Provision 3 of
8Item 6440-001-0001 of Section 2.00 of the Budget Act of 2013.

end insert
begin insert

9(b) The funds appropriated in Item 6440-301-6048 of Section
102.00 of the Budget Act of 2012 shall be available for encumbrance
11until June 30, 2016.

end insert
12begin insert

begin insertSEC. 43.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
13to the Budget Bill within the meaning of subdivision (e) of Section
1412 of Article IV of the California Constitution, has been identified
15as related to the budget in the Budget Bill, and shall take effect
16immediately.

end insert
begin delete
17

SECTION 1.  

It is the intent of the Legislature to enact statutory
18changes relating to the Budget Act of 2015.

end delete


O

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