BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 108|
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THIRD READING
Bill No: AB 108
Author: Committee on Budget
Amended: 6/16/15 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 16-0, 6/18/15
AYES: Leno, Nielsen, Allen, Anderson, Beall, Block, Hancock,
Mitchell, Monning, Moorlach, Nguyen, Pan, Pavley, Roth, Stone,
Wolk
ASSEMBLY FLOOR: Not relevant
SUBJECT: Postsecondary education: budget
SOURCE: Author
DIGEST: This bill provides for statutory changes necessary to
enact postsecondary education-related provisions of the Budget
Act of 2015.
ANALYSIS: This bill makes the following statutory changes to
implement the 2015-16 Budget. Specifically, this bill:
1) State Authorization for Regional Occupational Programs.
Authorizes the Superintendent of Public Instruction (SPI),
for purposes of participation in Title IV of the federal
Higher Education Act of 1965, which authorizes federal
student financial assistance programs, to: (a) certify by
name, a regional occupational center and program, or a
county office of education or an adult education program to
legally authorize the center, program or county office to
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provide an educational program beyond secondary education,
including an education program that leads to a degree or
certificate; (b) adopt regulations that authorize a
complaint process under the Uniform Complaint Procedures
outlined in specified regulations; and (c) decertify any
program no longer in compliance with specified requirements
consistent with federal regulations, among other provisions.
2) Community College Veterans Access, Choice and
Accountability Act. Requires the California Community
Colleges (CCC) and California State University (CSU) to
exempt students from nonresident tuition starting on July 1,
2015, if they the meet all of the following requirements:
(a) student resides in California; (b) student meets the
definition of "covered individual," as defined under Title
38 of the United States Code, federal statute; and (c)
student is eligible for education benefits under either the
federal Montgomery GI Bill or Post 9/11 GI Bill program, and
are continuously enrolled at the campus they attend.
3) Cal Grant Maximum Award. Delays, by two years, a
reduction in the maximum amount of the Cal Grant A and B
awards for students attending private, non-profit colleges
or accredited for-profit colleges in 2015-16 and 2016-17.
In 2015-16 and 2016-17, eligible students will receive
$9,084 for tuition expenses each year.
4) Community College Foster Care Education Program. Requires
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 by the
Chancellor, in consultation with an advisory committee.
Specifies that each college receiving funds for this program
shall have a plan for foster parent and relative/kinship
care provider education that includes provisions of
training, and complies with all reporting requirements,
guidelines and other conditions specified by the Chancellor.
5) CCC Reporting Requirements. Codifies various reporting
requirements for the Student Success and Basic Skills
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Students program, the Student Financial Aid Administration
program, technical assistance provided to community college
districts pursuant to the Student Success and Support
Program, and the Telecommunications and Technology program.
Requires the Chancellor to annually submit reports for the
prior fiscal year to the Department of Finance and the
Legislature by December 31.
6) CCC Adjust Base Allocation. Authorizes the Chancellor's
Office to adjust the general apportionment formula to
recognize funds appropriated to address increased operating
costs and to improve instruction. Authorizes the
Chancellor's Office to make conforming adjustments to the
community college budgetary standards and criteria, and
requires the chancellor to notify the Department of Finance
and the Legislature of the specific adjustments made.
7) CCC Local Property Tax Revenues and Education Protection
Account. Provides the Department of Finance the authority to
modify and update Proposition 98 General Fund appropriations
to CCC based on updated revenue estimates for redevelopment
agencies and Education Protection Account (Proposition 30).
Proposition 98 General Funds would be used to offset any
difference between (a) estimated revenues for community
colleges from redevelopment agencies and the Education
Protection Account (Proposition 30) and (b) the amounts
distributed to colleges from these sources by June 30. This
change will allow districts to have more certainty when
preparing their fiscal plans.
8) Career Technical Education Pathways Program. Extends the
sunset date for the Career Technical Education Pathways
Program from June 30, 2015, to July 1, 2016, and
appropriates $48 million one-time Proposition 98 funds for
the program.
9) CSU Capital Outlay Reporting Timeline. Makes changes to
CSU's capital outlay program to better align its reporting
to the Department of Finance on proposed capital projects
with the timing of Board of Trustees' decisions.
10) State Authorization for Private Colleges and Universities.
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Responds to new federal regulations by authorizing private
colleges and universities to operate in the state, and sets
up a complaint process for students through the Bureau for
Private Postsecondary Education.
11) CCC Deferred Maintenance, Instructional Equipment and
Drought Resistance Projects. Provides $48 million one-time
Proposition 98 General Fund for deferred maintenance,
instructional equipment and drought resistance projects at
community colleges. The funding will be distributed on a
per-student basis.
12) Innovation Awards Funding Shift. Shifts $23 million in
2014-15 funding from the Innovation in Higher Education
Awards program from the General Fund to Proposition 98
General Fund, to reflect the amount of awards distributed to
community colleges.
13) UC Merced Project Savings. Allows the University of
California (UC) to use project savings from the UC Merced
Classroom and Academic Office Building project to cover
potential deficiencies in the construction phase of the same
project.
14) Competitive Cal Grants. Increases the number of
competitive Cal Grants by 3,250 awards for a total of 25,750
awards. Eligibility for Competitive Cal Grant awards is
geared toward nontraditional students who did not go to
college right after high school, do not depend on their
family for financial support or are returning to college for
career training.
15) CCC Baccalaureate Degree Program. Provides $6 million to
the Chancellor's Office to implement the Baccalaureate Pilot
Program established pursuant to SB 850 (Block, Chapter 747,
Statutes of 2014). These funds may be used to support
professional development activities.
16) Eligibility study. Provides $1 million from the General
Fund to establish and implement a new freshman eligibility
study pursuant to legislation enacted in 2015-16 to
determine if admission requirements at the UC and CSU are
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consistent with the state's 1960 Master Plan for Higher
Education.
17) Middle Class Scholarship. Amends the Middle Class
Scholarship program to exclude students with family assets
over $150,000, sets a four- or five-year time limit for the
program similar to limits imposed in the Cal Grant program,
and allows income and asset limits to increase with the
Consumer Price Index. Also, reduces statutory
appropriations for the program in the 2015-16, 2016-17, and
2018-19 fiscal years and states legislative intent that
those savings be redirected to other higher education
programs.
18) UC Capital Outlay. Expands the UC's capital outlay
program by allowing it to use its General Fund appropriation
to make availability payments on capital expenditures. Also
requires the UC to use this funding structure for the UC
Merced 2020 project, as long as work traditionally performed
by UC employees continues to be performed by UC employees.
19) Basic Skills Partnership Pilot Program. Creates the Basic
Skills Partnership Pilot Program, which will provide five
community college districts with $2 million grants each to
develop partnerships among schools districts, community
colleges and CSU campuses to develop improved strategies to
provide remedial education for underprepared college
students.
20) Basic Skills and Student Outcomes Transformation Program.
Creates the Basic Skills and Student Outcomes Transformation
Program, which will provide $60 million Proposition 98
General Fund to assist community college districts in
improving the delivery of basic skills instruction.
21) College Access Tax Credit. Amends the College Access Tax
Credit program to add a new College Access Tax Credit for
one year in tax year 2017 under the Insurance Gross Premiums
Tax and Corporation Tax; adds the College Access Tax Credit
to the list of tax credits that can reduce the Tentative
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Minimum Tax under the Alternative Minimum Tax calculations
for Personal Income and Corporation Tax; continuously
appropriates the fund to the California Student Aid
Commission to award supplemental Cal Grants; and makes other
technical changes.
22) Apprenticeship Reporting. Requires the Community College
Chancellor's Office to report to the California
Apprenticeship Council within 30 days of each apportionment
period, information regarding the hourly rate paid to local
educational agencies and community colleges, and the number
of instruction hours allocated to, and reported by, each
local educational agency and community college.
23) Apprenticeship Allocation Deadline. Requires the
Community College Chancellor's Office to notify local
education agencies and community colleges of upcoming
allocation amounts within 30 days of the enactment of the
Budget Act.
24) Innovative Apprenticeship Program. Allows the Community
College Chancellor's Office to work with the Division of
Apprenticeship Standards to develop and implement innovative
apprenticeship programs in high-growth industries.
25) New Campus Study. Requires the Legislative Analyst's
Office to study and report on whether there is a long-term
need for a new CSU or UC campus, and if there is a need,
where campuses would be needed.
26) State Mandates. Establishes that if the Commission on
State Mandates determines that acts in this bill are costs
mandated by the state, reimbursement would occur through the
mandates process.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: Yes
According to the Senate Budget and Fiscal Review Committee,
statutory changes contained in this bill, including
appropriations, are consistent with the 2015 budget package.
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SUPPORT: (Verified6/18/15)
None received
OPPOSITION: (Verified6/18/15)
None received
Prepared by:Anita Lee / B. & F.R. / (916) 651-4103
6/19/15 8:30:13
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