BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 108| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 108 Page 2 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 AB 108 Page 3 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. AB 108 Page 4 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 AB 108 Page 5 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 AB 108 Page 6 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. AB 108 Page 7 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 **** END ****