Amended in Senate March 18, 2015

Senate Bill No. 62

Introduced by begin delete Senator end delete begin insert Senators end insert Pavley begin insert , Block, and Huff end insert

begin insert

(Coauthors: Senators Hertzberg, Vidak, and Wieckowski)

end insert begin insert

(Coauthors: Assembly Members Chu, Dodd, Cristina Garcia, Olsen, and Rodriguez)

end insert

December 30, 2014

An act to begin delete add and repeal Section 69615.9 end delete begin insert amend Sections 69612, 69612.5, 69613, 69613.1, end insert begin insert 69615.4, 70000, and 70001 end insert of begin insert , to add Sections 69615.5, 69615.9, 70006, 70007, and 70008 to, to repeal Section 69613.8 of, and to repeal and add Section 69613.7 of, end insert the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

SB 62, as amended, Pavley. Student financial aid: Assumption Program of Loans for begin delete Education. end delete begin insert Education: Governor’s Teaching Fellowships Program end insert begin insert . end insert

Existing law establishes the Assumption Program of Loans for Education, administered by the Student Aid Commission, under which any person enrolled in a participating institution of postsecondary education, or any person who agrees to participate in a teacher trainee or teacher internship program, is eligible to enter into an agreement for loan assumption, to be redeemed pursuant to a prescribed procedure upon becoming employed as a teacher if he or she satisfies certain conditions.

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This bill would among other things, require a program participant to teach in a teaching field with a critical shortage of teachers and to demonstrate financial need, revise the information that the Superintendent is required to furnish to the commission annually regarding the program, and make conforming changes.

end insert begin insert

Existing law establishes the Governor’s Teaching Fellowships Program to be administered by the Chancellor’s office of the California State University. The program requires the chancellor to collaborate with the University of California, the California Community Colleges, the Association of Independent California Colleges and Universities, the State Department of Education, and the Commission on Teacher Credentialing to ensure that access to the fellowships is available to students in a variety of teaching preparation programs, and defines a “high-priority school” for purposes of implementation and administration of the program.

end insert begin insert

This bill would remove the State Department of Education and add the Superintendent of Public Instruction and the California Student Aid Commission to the list of entities which with the chancellor is required to collaborate, and would change the definition of “high-priority school” for these purposes, as specified.

end insert begin insert

The bill would prohibit a person from participating in the Assumption Program of Loans for Education and the Governor’s Teaching Fellowships Program concurrently, and would require both programs to continue to be implemented as they read on January 1, 2015, for purposes of collecting payments from former program participants required to repay costs as of January 1, 2016, for failing to satisfy the requirements for participation.

end insert begin delete

Existing law requires the Student Aid Commission to make an annual report to the Legislature that includes specified information about program participants.

end delete begin delete

This bill would require the State Department of Education, in conjunction with the Student Aid Commission, to report to the Legislature on or before January 1, 2017, on the need for the program, any modifications that may be needed to improve the program’s effectiveness in increasing the supply of high-quality teachers for high-needs and low-performing schools, and the need to establish new recruitment and financial aid programs to accomplish that objective.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 69612 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

69612.  

(a) The Legislature finds and declares all of the
following:

(1) The growing shortage of high-quality teachers is most serious
in particular subject areas, partly due to the shortage of students
in these fields who enter the teaching profession.

(2) Many school districts have difficulty recruiting and retaining
high-quality teachers for begin delete schools ranked in decile 1 or 2 on the
Academic Performance Index, for end delete pupils with special needs, for
schools serving rural areas or large populations of pupils from
low-income and linguistic minority families, and for schools with
a high percentage of teachers holding emergency-type permits.

(3) The rising costs of higher education, coupled with a shift in
available financial aid from scholarships and grants to loans, make
the availability of financial aid and loan repayment assistance
options an important consideration in a student’s decision to pursue
a postsecondary education.

(b) It is, therefore, the intent of the Legislature that the
Assumption Program of Loans for Education be designed to
provide begin delete veteran teachers and end delete outstanding postsecondary students,
particularly economically disadvantaged students, with the
assurance of financial assistance to encourage them to complete
postsecondary education programs leading to teaching credentials,
and to seek employment as teachers in designated subject-matter
shortage areas or in schools serving a large population of pupils
from low-income begin delete families, end delete begin insert families or end insert schools with a high
percentage of teachers holding emergency-type begin delete permits, or schools
ranked in the lowest two deciles on the Academic Performance
Index. end delete begin insert permits. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 69612.5 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69612.5.  

For purposes of this article, the following terms have
the following definitions:

(a) “Eligible institution” means a postsecondary institution that
is determined by the Student Aid Commission to meet both of the
following requirements:

(1) The institution is eligible to participate in state and federal
financial aid programs.

(2) The institution maintains a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.

(b) “Eligible school” means a school that meets any of the
following criteria:

(1) It begin delete serves a large population of pupils from low-income
families, as designated by the Superintendent of Public Instruction end delete
begin insert qualifies for funding under Section 11(a)(1)(F) of the Richard B.
Russell National School Lunch Act (42 U.S.C. Sec. 1759a
(a)(1)(F)) end insert .

(2) The institution has 20 percent or more teachers holding
emergency-type permits including, but not limited to, any of the
following:

(A) Provisional internships.

(B) Short-term staff permits.

(C) Credential waivers.

(D) Substitute permits.

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(3) It is a school that is ranked in the lowest two deciles on the
Academic Performance Index.

end delete begin delete

(4)

end delete

begin insert ( end insert begin insert 3) end insert  It is a school that serves a rural area.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 69613 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69613.  

(a) Program participants shall meet all of the following
eligibility criteria prior to selection in the program and shall
continue to meet these criteria, as appropriate, during the payment
periods:

(1) The applicant has completed at least 60 semester units, or
the equivalent, and is enrolled in an academic program leading to
a baccalaureate degree at an eligible institution, has agreed to
participate in a teacher internship program, or has been admitted
to a program of professional preparation that has been approved
by the Commission on Teacher Credentialing.

(2) The applicant is currently enrolled in, or has been admitted
to, a program in which he or she will be enrolled on at least a
half-time basis, as determined by the participating institution. The
applicant shall agree to maintain satisfactory academic progress
and a minimum of half-time enrollment, as defined by the
participating eligible institution.

(A) Except as provided in subparagraphs (B) and (C), if a person
participating in the program fails to maintain at least half-time
enrollment, as required by this article, under the terms of the
agreement pursuant to paragraph (2), the loan assumption
agreement shall be invalidated and the participant shall retain full
liability for all student loan obligations. This subparagraph shall
not apply if the participant is in his or her final semester or quarter
in school and has no additional coursework required to obtain his
or her teaching credential.

(B) Notwithstanding subparagraph (A), if a program participant
is unable to maintain at least half-time enrollment due to serious
illness, pregnancy, or other natural causes, or is called to active
military duty status, the participant is not required to retain full
liability for the student loan obligation for a period not to exceed
one calendar year, unless approved by the commission for a longer
period.

(C) If a natural disaster prevents a program participant from
maintaining at least half-time enrollment due to the interruption
of instruction at the eligible institution, the term of the loan
assumption agreement shall be extended for a period not to exceed
one calendar year, unless approved by the commission for a longer
period.

(3) The applicant has been judged by his or her postsecondary
institution, school district, or county office of education to have
outstanding ability on the basis of criteria that may include, but
need not be limited to, any of the following:

(A) Grade point average.

(B) Test scores.

(C) Faculty evaluations.

(D) Interviews.

(E) Other recommendations.

(4) The applicant has received, or is approved to receive, a loan
begin delete under one or more of the following designated loan programs: end delete

begin delete

(A) The Federal Family Education Loan Program (20 U.S.C.
Sec. 1071 et seq.).

end delete

begin delete (B) end delete begin delete   end delete begin delete Any educational loan end delete begin insert from a end insert program approved by the
Student Aid Commission.

(5) The applicant has agreed to teach full time for at least four
consecutive academic years, or on a part-time basis for the
equivalent of four full-time academic years, after obtaining a
teaching credential in a public elementary or secondary school in
this state, in a subject area that is designated as a current or
projected shortage area by the Superintendent of Public Instruction,
or, on the date the teacher is hired, at an eligible school.

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(6) The applicant has demonstrated financial need.

end insert begin insert

(7) The applicant will be teaching in a shortage area, as
determined by the Superintendent of Public Instruction pursuant
to subdivision (a) of Section 69613.1.

end insert

(b) An agreement shall remain valid even if the subject area
under which an applicant becomes eligible to enter into an
agreement ceases to be a designated shortage field by the time the
applicant becomes a teacher.

(c) For the purposes of calculating eligible years of teaching for
the redemption of an award, the inclusion by the Superintendent
of Public Instruction of a school on a list prepared pursuant to
Section 69613.1 shall apply retroactively from the date the school
first opened.

(d) A person participating in the program pursuant to this section
shall not enter into more than one agreement.

(e) A person participating in the program pursuant to this section
shall not owe a refund on any state or federal educational grant or
have defaulted on any student loan.

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(f) Notwithstanding any other provision of this section, a
credentialed teacher teaching in a public school ranked in the
lowest two deciles on the Academic Performance Index pursuant
to Section 52052, possesses a clear multiple subject or single
subject teaching credential or level II education specialist credential
and who has not otherwise participated in the program established
by this article, is eligible to enter into an agreement for loan
assumption pursuant to this article. The number of loan assumption
agreements provided pursuant to this subdivision shall not exceed
400 per year. The commission shall develop and adopt regulations
for the implementation of this subdivision by January 1, 2010.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 69613.1 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69613.1.  

On or before January 1 of each year, the
Superintendent of Public Instruction shall furnish the commission
with all of the following:

(a) A list of teaching fields that have the most critical shortage
of teachers. The Superintendent shall review this list annually and
revise the list as he or she deems necessary. The list of shortage
areas furnished pursuant to this subdivision shall include the state
special schools as a category separate from special education.

(b) A list of schools that serve a large population of pupils from
low-income families, as begin delete designated for purposes of the Perkins
Loan Program, end delete begin insert determined by eligibility for services pursuant to end insert
begin insert Section 11(a)(1)(F) of the Richard B. Russell National School
Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F)) end insert or according to
standards the Superintendent deems appropriate.

(c) A list of schools with a high percentage of teachers holding
emergency-type permits. The list shall be established according
to criteria determined by the Superintendent.

(d) A list of schools serving rural areas. The list shall be
established according to standards deemed appropriate by the
Superintendent.

begin delete

(e) A list of schools ranked in the lowest two deciles on the
Academic Performance Index.

end delete begin delete

(f) A list of high priority schools.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 69613.7 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

69613.7.  

(a) For the purposes of this article, “subject matter
shortage area” may not be construed to include teaching in a
self-contained classroom or teaching pursuant to a multiple subject
credential.

(b) The list, furnished by the Superintendent of Public
Instruction pursuant to Section 69613.1 and relating to teaching
fields that have the most critical shortage of teachers, shall not
include teaching in a self-contained classroom or teaching pursuant
to a multiple subject credential.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 69613.7 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 69613.7. end insert   

end insert begin insert

In addition to the amounts set forth in subdivision (a)
of Section 69613.4, for each of the four years of classroom
instruction referenced in that subdivision, loan assumption benefits
shall be granted as follows:

end insert begin insert

(a) One thousand dollars ($1,000) of additional liability per
year shall be assumed for a person who holds a credential
appropriate for teaching, and who teaches, mathematics, science,
or special education.

end insert begin insert

(b) Not more than a total of five million dollars ($5,000,000)
shall be expended in any academic year for purposes of this
section.

end insert begin insert

(c) The commission shall award benefits payable under this
section upon receipt of all documentation necessary to establish
eligibility for the additional loan assumption benefits. Payments
shall be made to applicants in the order that full documentation
is received until the five million dollars ($5,000,000) authorized
by subdivision (b) has been expended.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 69613.8 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

69613.8.  

In addition to the amounts set forth in subdivision (a)
of Section 69613.4, for each of the four years of classroom
instruction referenced in subdivision (a) of Section 69613.4, the
following loan assumption benefits shall be granted:

(a) One thousand dollars ($1,000) of additional liability per year
shall be assumed for a person who holds a credential appropriate
for teaching, and who teaches, mathematics, science, or special
education in the lowest 60 percentile of Academic Performance
Index rankings.

(b) One thousand dollars ($1,000) of additional liability per year
shall be assumed for a person who teaches in a school in the lowest
two deciles on the Academic Performance Index rankings.
Eligibility for the benefit set forth in this subdivision shall be
limited to a person who holds a credential appropriate for teaching,
and who teaches, mathematics, science, or special education.

(c) Not more than a total of five million dollars ($5,000,000)
shall be expended in any academic year for the purposes of this
section.

(d) The commission shall award benefits payable under this
section upon receipt of all documentation necessary to establish
eligibility for the additional loan assumption benefits. Payments
shall be made to applicants in the order received until the five
million dollars ($5,000,000) authorized by subdivision (c) has been
expended.

end delete

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 69615.4 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69615.4.  

The commission shall report annually to the
Legislature regarding all of the following, on the basis of sex, age,
and ethnicity:

(a) The total number of program participants.

(b) The number of agreements entered into with juniors, seniors,
students enrolled in teacher training programs, and persons who
agree to enroll in teacher internship programs.

(c) The number of participants who agree to teach in a subject
matter shortage area.

begin delete

(d) The number of participants who agree to teach in schools
with a high ratio of pupils from low-income families and in schools
ranked in the lowest two deciles on the Academic Performance
Index.

end delete begin delete

(e)

end delete

begin insert ( end insert begin insert d) end insert  The number of participants who agree to teach in schools
serving rural areas.

begin delete

(f)

end delete

begin insert ( end insert begin insert e) end insert  The number of participants who agree to teach in schools
with a high percentage of teachers holding provisional internship
permits.

begin delete

(g)

end delete

begin insert ( end insert begin insert f) end insert  The number of participants who receive a loan assumption
benefit, classified by payment year.

begin delete

(h)

end delete

begin insert ( end insert begin insert g) end insert  The number of out-of-state teachers who enter into
agreements.

begin delete

(i)

end delete

begin insert ( end insert begin insert h) end insert  The number of participants who have participated in teacher
internship programs, classified by school district or county office
of education.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 69615.5 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 69615.5. end insert   

Participants in the program shall be prohibited from
participating in the Governor’s Teaching Fellowships Program
concurrently.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 69615.9 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 69615.9. end insert   

The commission shall continue to implement the
program as it read on January 1, 2015, for purposes of collecting
payments from former program participants required to repay
program costs as of January 1, 2016, for failing to satisfy the
program’s requirements.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 70000 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

70000.  

(a) The Governor’s Teaching Fellowships Program is
hereby established to be administered by the Chancellor’s office
of the California State University. The chancellor’s office shall
collaborate with the University of California, the California
Community Colleges, the Association of Independent California
Colleges and Universities, the begin delete State Department of Education, end delete
begin insert Superintendent of Public Instruction, the California Student Aid
Commission, end insert and the Commission on Teacher Credentialing to
ensure that access to the fellowships is available to students in a
variety of teaching preparation programs.

(b) In January 2001, 250 nonrenewable graduate teaching
fellowships in the amount of twenty thousand dollars ($20,000)
each shall be awarded, with funds disbursed one-half in January
2001 and one-half in September 2001.

(c) During the 2001-02 fiscal year, 1,000 nonrenewable,
graduate teaching fellowships in the amount of twenty thousand
dollars ($20,000) each shall be awarded.

(d) Commencing with the 2002-03 fiscal year and each fiscal
year thereafter, the number of fellowships awarded shall be
determined pursuant to an appropriation in the annual Budget Act
for this purpose.

(e) The fellowship award may be used to defer tuition for a
teacher certification program at any accredited postsecondary
institution in California and for living expenses while enrolled in
that program.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 70001 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

70001.  

(a) The Chancellor’s office of the California State
University shall have the following duties:

(1) Developing an application process that establishes a
merit-based fellowship program for graduate students who agree
to teach at a high-priority school for four years.

(2) Establishing a broad and effective outreach effort to promote
the availability and the merits of the fellowship program.

(3) Conducting the selection process for fellowship applicants.

(4) Collaborating with the Commission on Teacher Credentialing
to develop and implement a system for monitoring program
participants through the completion of their four-year teaching
obligation.

(5) Determining the criteria for selecting teaching fellowship
candidates. The criteria shall include, at a minimum, all of the
following:

(A) Previous academic and employment record.

(B) A demonstrated commitment to serve in a high-priority
school.

(C) Faculty and employer evaluations.

(D) Interviews.

(E) Letters of recommendation.

(b) For the purposes of this article, a “high-priority school” is
a school begin delete in the bottom half of the Academic Performance Index
rankings established pursuant to subdivision (a) of Section 52056 end delete
begin insert that qualifies for funding under end insert begin insert Section 11(a)(1)(F) of the Richard
B. Russell National School Lunch Act (42 U.S.C. Sec. 1759a
(a)(1)(F)) end insert . If a school meets this criteria at the time a teacher is
hired, continued employment of the teacher at that school fulfills
the commitment made by the teacher, even if the school begin delete improves
its rank on the Academic Performance Index end delete begin insert loses its qualification
under end insert begin insert Section 11(a)(1)(F) of the Richard B. Russell National
School Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F)) end insert .

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 70006 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 70006. end insert   

Notwithstanding any other law, the California State
University shall award no more than the number of fellowships
that are authorized by the Governor and the Legislature in the
annual Budget Act for that year for fellowships pursuant to this
article.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 70007 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 70007. end insert   

The California State University shall continue to
implement the fellowship program as it read on January 1, 2015,
for purposes of collecting payments from former program
participants required to repay program costs as of January 1,
2016, for failing to satisfy the program’s requirements.

end insert

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 70008 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 70008. end insert   

Participants in the program shall be prohibited from
participating in the Assumption Program of Loans for Education
concurrently.

end insert

begin delete

SECTION 1.  

Section 69615.9 is added to the Education Code,
to read:

69615.9.  

(a) The department shall, in conjunction with the
commission, report to the Legislature on the need for the program
established by this article, any modifications that may be needed
to improve the program’s effectiveness in increasing the supply
of high-quality teachers for high-needs and low-performing
schools, and the need to establish new recruitment and financial
aid programs to accomplish that objective. This report shall be
submitted to the Legislature on or before January 1, 2017.

(b) (1) A report to be submitted pursuant to subdivision (a)
shall be submitted in compliance with Section 9795 of the
Government Code.

(2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2020.

end delete