BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2656 (O'Donnell) - Pupils:  diploma alternatives:  fee  
          waiver:  foster youth
          
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          |Version: June 9, 2016           |Policy Vote: ED. 9 - 0          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.




          


          Bill  
          Summary:  This bill extends to foster youth the fee waivers for  
          the California High School Proficiency Exam and the high school  
          equivalency exam that are currently provided to students who are  
          homeless.


          Fiscal  
          Impact:  
           The California Department of Education (CDE) anticipates costs  
            of $335,000 in the first year and $343,000 in ongoing support  
            to modify regulations for each test, renegotiate four  
            contracts that administer the test, and develop data tracking  
            mechanisms.  Additional resources may be necessary to complete  







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            the report on fee waivers for these tests due December 1,  
            2018.  (Special fund*)
           Unknown revenue loss due to waived exam fees for foster youth.  
             Assuming 200 foster youth students take either exam, revenue  
            loss would be in the low tens of thousands.  (Special fund*)
           Staff notes that the Special Deposit Fund Account surplus is  
            an unlikely sustainable funding source for the long term.   
            Once it is depleted, costs would have to be covered by either  
            by testing contractors or by other test-takers, thereby also  
            creating a General Fund cost pressure.

          * Special Deposit Fund Account


          Background:  CDE has designated the California High School Proficiency  
          Examination (CHSPE) as the test by which students may verify  
          proficiency in high school basic skills. Generally, students  
          that can take the test must be at least 16 years old. Some  
          students take the test and leave high school early to work or  
          attend college. The State Board of Education awards a  
          "certificate of proficiency" to people who achieve a passing  
          score on the proficiency exam.  The certificate of proficiency  
          is equivalent to a high school diploma. 
          The State Board of Education has approved the use of three high  
          school equivalency tests for students 18 years old and older,  
          and 17 years old in some instances, for the purpose of receiving  
          a California High School Equivalency Certificate.  These tests  
          include: (1) the General Educational Development Test (GED); the  
          High School Equivalency Test; and (3) the Test Assessing  
          Secondary Completion.  Current law provides that a California  
          high school equivalency certificate is deemed to be a high  
          school diploma for the purpose of meeting the requirements of  
          employment by all state and local public agencies in California.  
           (Education Code § 51420 and § 51425) 


          Existing law prohibits the CDE from charging the fee for the  
          high school proficiency exam and the high school equivalency  
          tests to a homeless child or youth under the age of 25 years who  
          can verify his or her status as a homeless child or youth.   
          Existing law authorizes the CDE to charge a fee for each  
          application to take the high school proficiency exam in an  
          amount sufficient to recover the costs of administering the  
          test.  Current law provides that the loss of fees due to waiving  








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          examination fees for homeless youth, is deemed to be a cost of  
          administering this test for purposes of determining the costs of  
          administering the test.


          Existing law requires that if a contractor or testing center  
          charges an examinee its own separate fee for the high school  
          equivalency exam, the contractor or testing center is prohibited  
          from charging the fee to a homeless youth.  Existing law also  
          allows the CDE to use surplus funds in the Special Deposit Fund  
          Account to reimburse contractors for the loss of fees, if any.   
          Once the surplus is depleted, the contractors are required to  
          absorb the ongoing costs of the fee waiver.




          Proposed Law:  
            This bill prohibits the CDE from charging a fee for the high  
          school proficiency examination or the high school equivalency  
          examination to a foster youth who is under the age of 25, as  
          defined.  This bill also adds foster youth to the report that  
          CDE is required to complete by December 1, 2018, that includes  
          specified information regarding the exam fee waivers.  This bill  
          defines a foster youth as any individual who is, or has ever  
          been, the subject of a petition before the juvenile court and  
          was removed from his or her home by the court.  This definition,  
          in effect, covers former foster youth as well.


          Staff  
          Comments:  The fee waivers proposed by this bill are currently  
          provided to individuals who are homeless and who are under the  
          age of 25 years. This bill extends fee waivers to foster youth.   
          The fee to take the California High School Proficiency Exam is  
          $110.  The fee for the high school equivalency tests varies, as  
          determined by each test vendor and test center; this fee is  
          generally $120-$200.  This bill does not eliminate or waive the  
          $20 fee charged by CDE for the cost of awarding certificates,  
          issuing score reports, and maintaining records, and providing  
          follow-up services related to the completion of the test.
          According to a report by WestEd done in 2013, The Invisible  
          Achievement Gap, there were 394,715 students age 17 or younger  
          enrolled in grade 12 in fall 2009, of which 2,674 were students  








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          in foster care.  Of the 12th graders in foster care, 58 percent  
          graduated high school.  A portion of the remaining 1,123 foster  
          youth students that did not graduate high school may, before  
          they turn 25 years old, choose to take either the high school  
          proficiency or equivalency test.  The estimated number of foster  
          youth that have not graduated high school and are older than 17  
          years old, who would increase the number of foster youth  
          eligible for exam fee waivers, is unknown.  Assuming 200  
          students take either test at an average test fee of $135,  
          revenue loss would be about $27,000.  The forgone fees for the  
          exams could absorbed by the Special Deposit Fund Account in the  
          short term until the surplus is depleted.  Once it is depleted,  
          costs would have to be covered by either by testing contractors  
          or by other test-takers, thereby also creating a General Fund  
          cost pressure.




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