BILL ANALYSIS                                                                                                                                                                                                    






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 1602|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 1602
          Author:   Committee on Budget   
          Amended:  6/13/16 in Senate
          Vote:     21 

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  14-1, 6/15/16
           AYES:  Leno, Nielsen, Beall, Block, Glazer, Hancock, Mitchell,  
            Monning, Moorlach, Nguyen, Pan, Pavley, Roth, Wolk
           NOES:  Anderson
           NO VOTE RECORDED:  Allen, Stone

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   Education


          SOURCE:    Author

          DIGEST:   This bill makes various statutory changes necessary to  
          implement the postsecondary education-related provisions of the  
          Budget Act of 2016.

          ANALYSIS:   This bill provides for the following:

           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. 









                                                                    AB 1602  
                                                                    Page  2


           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  
             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.








                                                                    AB 1602  
                                                                    Page  3


           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 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 30 to a two-part report due on October 30  
             and January 1 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  
             (CTE) Regional Consortia will collaborate with other public  
             institutions, such local education agencies, and relevant  
             stakeholders to increase the number of CTE offerings. Each  







                                                                    AB 1602  
                                                                    Page  4


             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 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  
             (UC) and California State University (CSU) 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)         UC Admission of California Residents. Specifies  
             that, as a condition of receiving funds in the 2016 Budget  
             Act, the UC 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)         UC Subject Matter Projects. Repeals the sunset date  
             for UC Subject Matter Projects, which is scheduled to sunset  
             on June 30, 2017.








                                                                    AB 1602  
                                                                    Page  5


           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 entities.

           16)         California Firearm Violence Research Center. States  
             legislative intent to establish a center for research into  
             firearm-related violence at the UC. 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)         UC A-G Courses. Provides $4 million one-time  
             General Fund to the UC 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)         CSU Graduation Plan. Provides $35 one-time General  
             Fund to the CSU to increase graduation rates. Funding is  







                                                                    AB 1602  
                                                                    Page  6


             contingent upon the adoption of a graduation rate 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.:YesLocal:   No


          SUPPORT:   (Verified6/14/16)


          None received


          OPPOSITION:   (Verified6/14/16)


          None received
           



          Prepared by:Anita Lee / B. & F.R. / (916) 651-4103
          6/16/16 8:55:17


                                   ****  END  ****


          











                                                                    AB 1602  
                                                                    Page  7