Amended in Senate April 7, 2015

Amended in Senate March 18, 2015

Senate Bill No. 62

Introduced by Senators Pavley, Block, and Huff

(Coauthors: Senators begin insert Hancock, end insert Hertzberg, Vidak, and Wieckowski)

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

December 30, 2014

An act to amend Sections 69612, 69612.5, 69613, 69613.1, 69615.4, 70000, begin delete and end delete 70001 begin insert , 70003, and 70005 end insert of, 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, 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 Education: Governor’s Teaching Fellowships Program.

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.

This bill begin delete would end delete begin insert would, end insert 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.

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.

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 begin delete which end delete with begin insert which end insert the chancellor is required to collaborate, and would begin delete change the definition of end delete begin insert delete the definition of a end insert “high-priority school” begin insert and define an “eligible school” end insert for begin delete these purposes, end delete begin insert purposes of implementation and administration of the program, end insert as specified.

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 begin delete 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 delete begin insert specified purposes. end insert

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

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

SECTION 1.  

Section 69612 of the Education Code is amended
to read:

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 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 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 begin insert and self-contained classrooms end insert or in schools serving a large
population of pupils from low-income families or schools with a
high percentage of teachers holding emergency-type permits.

SEC. 2.  

Section 69612.5 of the Education Code is amended to
read:

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 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 delete begin insert serves a percentage of unduplicated pupils, as
defined in Section 42238.02, as determined by the Superintendent
of Public Instruction 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.

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

SEC. 3.  

Section 69613 of the Education Code is amended to
read:

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.

begin delete

(4) The applicant has received, or is approved to receive, a loan

end delete begin delete

from a program approved by the Student Aid Commission.

end delete begin insert

(4) The applicant has received, or is approved to receive, an
educational loan from a program approved by the Student Aid
Commission.

end insert

(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.

(6) The applicant has demonstrated financial need.

begin delete

(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 delete

(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.

SEC. 4.  

Section 69613.1 of the Education Code is amended to
read:

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 determined by eligibility for begin delete services
pursuant to Section 11(a)(1)(F) of the Richard B. Russell National
School Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F)) end delete begin insert supplemental
funding under the Local Control Funding Formula 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.

SEC. 5.  

Section 69613.7 of the Education Code is repealed.

SEC. 6.  

Section 69613.7 is added to the Education Code, to
read:

69613.7.  

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:

(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.

begin insert

(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.

end insert begin delete

(b)

end delete

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

begin delete

(c)

end delete

begin insert ( end insert begin insert d) end insert  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.

SEC. 7.  

Section 69613.8 of the Education Code is repealed.

SEC. 8.  

Section 69615.4 of the Education Code is amended to
read:

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.

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

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

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

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

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

SEC. 9.  

Section 69615.5 is added to the Education Code, to
read:

69615.5.  

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

SEC. 10.  

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

69615.9.  

The commission shall continue to implement the
program as it read on January 1, 2015, for begin delete purposes of end delete begin insert end insert begin insert the
allocation of funds for loan assumption agreements made before
January 1, 2015, and end insert collecting payments from former program
participants required to repay program costs as of January 1, 2016,
for failing to satisfy the program’s requirements.

SEC. 11.  

Section 70000 of the Education Code is amended to
read:

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 Superintendent of Public Instruction,
the California Student Aid Commission, 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.

SEC. 12.  

Section 70001 of the Education Code is amended to
read:

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 begin delete a high-priority school end delete begin insert an eligible school end insert 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 begin delete a high-priority
school end delete begin insert an eligible school end insert .

(C) Faculty and employer evaluations.

(D) Interviews.

(E) Letters of recommendation.

(b) For the purposes of this article, begin delete a “high-priority school” is
a school that 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 delete begin insert an “eligible school” is a school that meets the
criteria of end insert begin insert paragraph (1) of subdivision (b) of Section 69612.5 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 loses its qualification under
begin delete Section 11(a)(1)(F) of the Richard B. Russell National School
Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F)) end delete begin insert paragraph (1) of
subdivision (b) of Section 69612.5 end insert .

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 70003 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

70003.  

(a) A fellowship recipient shall agree to teach in begin delete a
high-priority end delete begin insert an eligible end insert school for four years and shall have four
years, upon completion of his or her preparation program, to meet
that obligation. Except as provided in subdivision (c), a fellowship
recipient shall agree to repay the state five thousand dollars
($5,000) annually for each year the recipient fails to complete
either the teacher preparation program or the required teaching
service, up to full repayment of twenty thousand dollars ($20,000).

(b) Nonperformance of the commitment to teach in begin delete a
high-priority end delete begin insert an eligible end insert school for four years shall be certified by
the Commission on Teacher Credentialing to the chancellor’s
office.

(c) Any exceptions to the requirement for repayment shall be
defined by the chancellor’s office.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 70005 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

70005.  

(a) The Chancellor’s office of the California State
University shall adopt any rules and regulations it deems necessary
for the administration of this section and the recovery of funds it
determines are owed to the state. The rules and regulations adopted
by the chancellor’s office pursuant to this section shall also include
a provision authorizing the chancellor’s office to seek a civil
penalty on a recipient of funds under this program, in an amount
not to exceed five thousand dollars ($5,000) per year for each year
that the recipient of funds is determined by the Commission on
Teacher Credentialing to have failed to fulfill his or her obligation
to teach in begin delete a high-priority end delete begin insert an eligible end insert school.

(b) Any moneys derived from the assessment of penalties
pursuant to this section shall be deposited into the General Fund.

begin delete SEC. 13. end delete
begin insert SEC. 15. end insert   

Section 70006 is added to the Education Code, to
read:

70006.  

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.

begin delete SEC. 14. end delete
begin insert SEC. 16. end insert   

Section 70007 is added to the Education Code, to
read:

70007.  

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.

begin delete SEC. 15. end delete
begin insert SEC. 17. end insert   

Section 70008 is added to the Education Code, to
read:

70008.  

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