BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW 
                              Senator Mark Leno, Chair
                                2015 - 2016 Regular 

          Bill No:            AB 1602         Hearing Date:    June 15,  
          2016
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          |Author:   |Committee on Budget                                   |
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          |Version:  |June 13, 2016    As amended                           |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Anita Lee                                             |
          |:         |                                                      |
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                                 Subject:  Education


          Summary: This bill makes various statutory changes necessary to  
          implement the postsecondary education-related provisions of the  
          Budget Act of 2016.
          
          Proposed  
          Law:  
          
             1)   California Library Services Act. Updates and modernizes  
               the California Library Services Act to reflect local  
               libraries' increasing use of and sharing of digital  
               materials, and eliminates references to a reimbursement  
               program among libraries that is no longer utilized.  
               Provides $3 million one-time General Fund to the State  
               Library for the California Library Services Act, and  
               requires the State Library to report on the use of  
               additional funds. 

             2)   Compton Community College. Adjusts the interest rate on  
               three Compton Community College District emergency  
               apportionments to 2.307 percent, which is reflective of the  
               rate recently provided to other K-12 agencies. 

             3)   Innovation Awards. Implements the Innovation Awards for  
               2016-17, which will provide grants to community college  
               programs that reduce students' time to degree or total cost  
               of attendance in three categories: programs that redesign  







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               curriculum and instruction, such as implementation of  
               three-year bachelor's degrees; programs that allow students  
               to make progress toward degrees by allowing credit based on  
               demonstration of knowledge and competencies, such as  
               military training or prior experiences; and, programs that  
               make financial aid more accessible or reduce other student  
               costs.  Grants will be awarded by a committee, which will  
               give preference to programs that improve outcomes for  
               students from groups that are underrepresented in higher  
               education.

             4)   Middle Class Scholarship. Adjusts the Middle Class  
               Scholarship program statutory appropriation in 2016-17 and  
               beyond with a $42 million General Fund decrease. Funds  
               available in 2016-17 will be $74 million; with the  
               allocation growing to $117 million in 2017-18 and beyond.

             5)   Community College Zero-Textbook-Cost Degree Grant  
               Program. Establishes the Zero-Textbook-Cost Degree Grant  
               Program, which provides $5 million one-time Proposition 98  
               General Fund to community colleges that implement these  
               programs. Zero-textbook-cost degrees are associate degrees  
               or career technical education certificates earned by  
               completing courses that eliminate conventional textbook  
               costs by using alternative instructional materials, such as  
               open educational resources. This bill provides a maximum  
               grant of $200,000 to community college districts for each  
               degree developed or implemented that eliminates textbook  
               costs for students. 

             6)   San Francisco Community College District. Provides San  
               Francisco City College with five years of restoration  
               enrollment by authorizing the college ability to earn back  
               enrollment funding for five years, beginning in 2017-18, if  
               the college exceeds the systemwide enrollment target during  
               this period.

             7)   Adult Education Technical Assistance. Provides $5  
               million Proposition 98 General Fund to support technical  
               assistance to adult education regional consortia.  Funding  
               will allow a chosen community college district or local  
               education agency to provide statewide leadership activities  
               for consortia, including disseminating best practices,  
               providing professional development and evaluating the adult  








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               education program.

             8)   Adult Education.  Requires reporting from the Chancellor  
               of the Community Colleges and the Superintendent of Public  
               Instruction no later than August 1, 2017 on options for  
               integrating the adult education assessments into the common  
               assessment system developed by the community colleges.   
               Extends the deadline for annual reporting on adult  
               education outcomes from Sept 30th to a two-part report due  
               on October 30th and January 1st of each year.

             9)   Career Technical Education Pathways. Extends the sunset  
               date for the Career Technical Education Pathways Program  
               from June 30, 2016, to July 1, 2017.

             10)         Student Success Basic Skills Program. Creates the  
               Student Success for Basic Skills program and eliminates the  
               Basic Skills Initiative. The new program provides  
               categorical funding to help improve outcomes for students  
               in pre-collegiate level courses. Funding supports the  
               implementation of evidence-based practices and will be  
               distributed, beginning in 2017-18, using a three-part  
               formula: 50 percent will be based on colleges' ability to  
               transition students from remedial courses to college-level  
               English and math courses within one -year or two -years; 25  
               percent will be based on the percentage of low-income  
               students at a college; and, 25 percent will be based on the  
               number of basic skills students enrolled in courses that  
               use evidence-based practices at a college.

             11)         Community College Strong Workforce. Establishes  
               the Strong Workforce Program to expand quality career  
               technical education and workforce development courses,  
               pathways, and programs at community colleges. Career  
               Technical Education Regional Consortia will collaborate  
               with other public institutions, such local education  
               agencies, and relevant stakeholders to increase the number  
               of CTE offerings. Each consortium shall submit a regional  
               plan by January 31, once every four years, to the  
               Chancellor's Office, regarding the governance model of the  
               consortium, analysis of regional labor market needs, wage  
               data for each industry sector, measurable regional goals  
               that align with the performance measures of the federal  
               Workforce Innovation Opportunity Act, among others. Forty  








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               percent of funds will be distributed to the CTE Regional  
               Consortia, and 60 percent funds will be distributed  
               directly to community college districts. In 2016-17, funds  
               shall be allocated using a three-part formula: one-third  
               will be based on the local unemployment rate; one-third  
               will be based on the regions proportion of CTE  
               full-time-equivalent students; and, one third will be based  
               on the projected job openings. Beginning in 2017-18, funds  
               shall be allocated using a four-part formula: one-third  
               will be based on the local unemployment rate; one-third  
               will be based on the regions proportion of CTE  
               full-time-equivalent students; 17 percent will be based on  
               the projected job openings; and, 17 percent based on the  
               proportion of successful workforce outcomes.  

             12)         University of California and California State  
               University Reports. Requires the University of California  
               and California State University to provide information in  
               bi-annual reports to the Legislature and Department of  
               Finance regarding the costs of educating a student based on  
               a cost of instruction model developed by the National  
               Association of College and University Business Officers.

             13)         University of California Admission of California  
               Residents. Specifies that, as a condition of receiving  
               funds in the 2016 Budget Act, the University of California  
               approve a plan and timeline, beginning in the 2016-17  
               academic year, to increase the number of California  
               resident freshman admits who meet admission requirements at  
               each campus, including students who are enrolled in high  
               schools with seventy-five percent or more unduplicated  
               pupils; and expand services and resources to students who  
               enroll at UC from these schools. 

             14)         University of California Subject Matter Projects.  
               Repeals the sunset date for UC Subject Matter Projects,  
               which is scheduled to sunset on June 30, 2017.

             15)         Precision Medicine. Establishes until January 1,  
               2020, the California Initiative to Advance Precision  
               Medicine in the Office of Planning and Research for the  
               purpose of developing, implementing, awarding funding to,  
               and evaluating demonstration projects on precision medicine  
               in collaboration with public, nonprofit, and private  








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               entities.

             16)         California Firearm Violence Research Center.  
               States legislative intent to establish a center for  
               research into firearm-related violence at the University of  
               California. Its research shall include, but not be limited  
               to, the effectiveness of existing laws and policies  
               intended to reduce firearm violence, including the criminal  
               misuse of firearms, and efforts to promote the responsible  
               ownership and use of firearms.

             17)         Community College Full-Time Faculty. Amends the  
               2015 Budget Act to clarify funding provided to increase the  
               number of full-time faculty at community colleges to be  
               distributed to all districts, including basic aid  
               districts.

             18)         Telecommunications and Technology Infrastructure.  
               Provides $7 million one-time Proposition 98 General Fund to  
               enhance network infrastructure at community colleges. 

             19)         Local Property Tax Revenue. Provides $31.7  
               million Proposition 98 General Fund to community colleges  
               to backfill for local property tax revenue that was less  
               than anticipated in the 2015 Budget Act. 

             20)         Community College Online Education. Provides $20  
               million one-time Proposition 98 General Fund to expedite  
               and enhance the development of online courses available  
               through the online course exchange of the Online Education  
               Initiative.

             21)         University of California A-G Courses. Provides $4  
               million one-time General Fund to the University of  
               California to develop online classes and curriculum for at  
               least 45 middle school and high school courses that align  
               with state Board of Education standards and UC admissions  
               standards satisfying the "a-g" subject requirements.         
                 

             22)         California State University Graduation Plan.  
               Provides $35 one-time General Fund to the California State  
               University to increase graduation rates. Funding is  
               contingent upon the adoption of a graduation rate  








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               improvement plan. The plan must specify the timeframe in  
               which the CSU and each campus will increase the four-year  
               graduation rate for freshman students and two-year  
               graduation rate for transfer students above  the graduation  
               rate of students at other postsecondary institutions; and  
               increase the four-year and two-year graduation rates of  
               low-income, students from underrepresented minority groups,  
               and first generation college students. CSU will be required  
               to report recommendations to the Legislature and the  
               Director of Finance to improve graduation rates, as  
               specified in the plan. 


          Fiscal  
          Effect:  Appropriation:               Yes Fiscal Com.:     Yes    
          Local:Yes
          
          
          Support:   None on file
          
          Opposed:  None on file
          
          
          
          
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