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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