BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 66                
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          |Author:    |Leyva                                                |
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          |Version:   |January 4, 2016                         Hearing      |
          |           |Date:    January 13, 2016                            |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Kathleen Chavira                                     |
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          Subject:  Career technical education


            SUMMARY
          
          This bill aligns performance accountability outcome measures for  
          the Economic and Workforce Development program with the outcome  
          measures for the federal Workforce Innovation and Opportunity  
          Act, authorizes the Department of Consumer Affairs to make  
          specified licensure information available to the California  
          Community Colleges (CCC) Chancellor's Office for purposes of  
          evaluating outcomes for students who participate in CCC career  
          technical education programs, statutorily establishes the  
          maximum Cal Grant C award at $2,462 for tuition and fees and  
          $3,000 for access costs, and authorizes adjustment of these  
          maximum amounts in the annual Budget Act.  

            BACKGROUND
          
          Current law authorizes the Cal Grant program, administered by  
          the California Student Aid Commission (CSAC), to provide grants  
          to financially needy students to attend college.  The program  
          consists of the Cal Grant A, Cal Grant B, and Cal Grant C  
          programs, and eligibility is based upon financial need, grade  
          point average, California residency, and other eligibility  
          criteria, as specified in Education Code § 69433.9. (Education  
          Code § 69430 - § 69439)

          Cal Grant C awards assist with tuition and training costs at  
          occupational or vocational programs and may be used for  







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          institutional fees, charges, and other costs, including tuition,  
          plus training-related costs, such as special clothing, local  
          transportation, required tools, equipment, supplies, and books  
          and living expenses.  Current law establishes the total number  
          of Cal Grant C awards as the number awarded in the 2000-01  
          fiscal year (7,761) with the maximum award amount and the total  
          amount of funding being determined in the annual Budget Act.  
          (Education Code § 69439)

          Current law establishes the California Community Colleges  
          Economic and Workforce Development (EWD) Program to be  
          implemented and administered by the Chancellor's Office of the  
          CCC in those fiscal years for which funds are appropriated for  
          this purpose.  Current law requires the Chancellor to implement  
          performance accountability outcome measures to annually provide  
          the Governor, Legislature, and public with information that  
          quantifies employer and student outcomes for program  
          participants. 
          (Education Code § 88600, § 88650)

           
          Current federal law, the Workforce Innovation and Opportunity  
          Act (WIOA) reauthorizes the nation's employment, training, adult  
          education, and vocational rehabilitation programs created under  
          the Workforce Investment Act of 1998.  WIOA, among other things,  
          requires states to strategically align workforce development  
          programs, promote accountability and transparency and foster  
          regional collaboration. 
          (Title 29 United States Code, Chapter 32, § 3101, et seq.)

            ANALYSIS
          
          This bill:

          1)   Requires the Department of Consumer Affairs (DCA) to make  
               available any licensure information it has in electronic  
               format for its boards, bureaus, commissions, or programs to  
               the California Community College (CCC) Chancellor's Office  
               to enable the CCC  to:

                    a)   Measure employment outcomes of students who  
                    participate in CCC career technical education  
                    programs.









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                    b)   Recommend improvements in CCC career technical  
                    education programs.

          2)   Authorizes DCA to make available the confidential  
               information outlined in (1) only to the extent that such  
               disclosure is in compliance with state and federal privacy  
               laws. 

          3)   Statutorily establishes the maximum annual amount of the  
               Cal Grant C award.  Specifically it:

                    a)             Establishes the maximum annual amount  
                    of the Cal Grant C for purposes of tuition and fees as  
                    $2,462.

                    b)             Establishes the maximum annual amount  
                    of the Cal Grant C for purposes of access costs as  
                    $3,000. 

                    c)             Authorizes the adjustment of the  
                    statutory maximum amounts in the annual Budget Act.
           
                    d)             Streamlines the current list of  
                    allowable uses of Cal Grant C awards with a  
                    cross-reference to an existing definition of access  
                    costs within the Cal Grant program.

          4)   Requires, to the extent possible, the alignment of  
               performance accountability outcome measures for the  
               economic and workplace development program with the  
               performance accountability measures of the federal  
               Workforce Innovation and Opportunity Act. It also:

               a)        Deletes existing statutorily prescribed  
               performance measures.

               b)        Reduces data collection requirements.

          
          STAFF COMMENTS
          
          1)   Source of the bill. In December 2014, the Board of  
               Governors of the California Community Colleges commissioned  
               the Task Force on Workforce, Job Creation and a Strong  








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               Economy to consider strategies and recommend policies and  
               practices to meet California's anticipated shortage of one  
               million industry-valued, middle skill credentials.   
               According to the report of the Task Force, California's  
               education pipeline is not keeping pace with the higher  
               levels of skills and education required by employers and  
               must significantly increase the number of individuals with  
               industry-valued degrees, certificates and credentials. 

               The Task Force was comprised of representatives from  
               community college faculty, staff, administration, trustees  
               and students, the employer community, labor, public  
               agencies involved in workforce training and economic  
               development, K-12 education policy and community based  
               organizations.  The work of the task force involved  
               regional college conversations, town hall meetings, and  
               task force meetings.  After almost a year of public  
               meetings and stakeholder input, the Task Force issued 25  
               recommendations which were presented to the Board of  
               Governors in September 2015 and adopted in November 2015.   
               Implementation of these recommendations requires statutory,  
               regulatory and administrative changes.  

               This bill, sponsored by the Chancellor's Office of the  
               California Community Colleges, implements statutory changes  
               recommended by the Task Force in three areas in an effort  
               to improve and streamline Career Technical Education (CTE)  
               programs. These include recommendations to:

               a)        Develop, streamline, and align common outcome  
                    metrics for all state funded CTE programs and to  
                    ensure compatibility with federal reporting  
                    requirements.

               b)        Authorize the sharing of third-party  
                    licenses/certification data across government  
                    entities.

               c)        Support efforts to increase financial support  
                    under the Cal Grant C program for community college  
                    CTE students. 

          2)   Middle skills jobs.  Middle skills jobs are defined as  
               those that require more education and training than a high  








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               school diploma but less than a four-year college degree.   
               According to the National Skills Coalition (NSC), a  
               national advocacy organization governed and advised by a  
               coalition drawn from business, labor, community colleges,  
               community-based organizations, and the public workforce  
               system, while middle skills jobs make up the largest part  
               of California's labor market, key industries are unable to  
               find enough sufficiently trained workers to fill these  
               jobs. NSC reports that in 2012, 50 percent of all jobs in  
               California were middle skills but only 40 percent of the  
               workforce was trained to the level necessary to fill those  
               positions.


          3)   Cal Grant C background.  Students meeting the general  
               eligibility for the Cal Grant award may be considered for  
               the Cal Grant C.  There is no high school graduation  
               requirement, minimum grade point average or maximum age for  
               recipients.  However, students must be California  
               residents, have United States or eligible noncitizen  
               status, complete US selective service requirements, enroll  
               at least half-time at an eligible California institution,  
               maintain satisfactory academic progress (defined by the  
               institution) once enrolled, meet family income and asset  
               ceilings, and not be in default on any student loan or owe  
               any federal or state grant refund.  
           
          Funding is available for up to two years, depending on the  
          length of the program. To qualify, a student must enroll in an  
          occupational, technical, or vocational program that is at least  
          four months long at a California Community College (CCC), an  
          independent college, or a vocational/career school. 
           
          According to the 2013-14 report on Cal Grant awardees prepared  
          by the California Student Aid Commission (CSAC) almost 82  
          percent of Cal Grant C awardees are independent students. About  
          68 percent earned less than $18,000 annually, and more than 85  
          percent earned less than $30,000 annually. Almost half are over  
          age 30. 
           
          CSAC also reports that of the 15,159 Cal Grant C awardees in  
          2013-14, 12,800 attend a CCC, 2 attend a UC campus, 36 attend  
          another public institution, 105 attend an independent college  
          and 1,483 attend a private for-profit institution.  Although the  








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          vast majority of students who receive the Cal Grant C are  
          enrolled in community college programs, almost two-thirds of the  
          total funds awarded are paid to students enrolled in vocational  
          for-profit programs.  
           
          In 2013-14, the maximum annual award was $547 for training  
          related costs and up to $2,462 more for tuition and fees for  
          attendance at other than a California Community College.
           
          4)   Impact of Cal Grant C changes?  Given the demographics of  
               the Cal Grant recipients outlined in staff comment #5, it  
               appears that most students receiving a Cal Grant C at the  
               community colleges would be eligible for a Board of  
               Governor's fee waiver.   The typical Cal Grant C award for  
               CCC students is thus $547 for costs other than tuition and  
               fees. Although SB 1028 (Jackson, Chapter 692, Statutes of  
               2014) expanded the allowable use of the Cal Grant C to  
               include living expenses, the CCC report that the Department  
               of Finance and the CSAC do not believe that the language  
               expands the allowable grant amount to community college  
               students.  According to the CCC, a 2006 student survey  
               conducted by the CSAC indicates that the average cost of  
               books and supplies alone was $795/term.  This bill would  
               establish the maximum grant amount for purposes of access  
               costs at $3000 per year, providing much need additional aid  
               to help more community college students complete their  
               Career Technical Education programs.  
           
          It is the stated intent of the bill sponsors to increase the  
          award amount to meet the financial assistance needs of community  
          college students.  As drafted, however, it appears that a  
          qualifying student who attends a higher cost institution could  
          receive a Cal Grant C for both tuition/fees and access costs,  
          for a total annual award of up to $5,462. 
           
          The Committee may wish to consider and clarify:

                  a)        Is it the intent to provide for tuition/fees  
                     or  access costs, or to increase the overall award for  
                    Cal Grant C recipients to cover both?

                  b)        Would increasing the overall award amount have  
                    the effect of incentivizing recruitment of Grant C  
                    recipient students by private and/or for-profit  








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                    institutions? Is this a desirable effect?

                  c)        Should the increase in the award amount for  
                    access costs be limited to Cal Grant C recipients who  
                    attend a public community college?

                  d)        The current number of authorized Cal Grant C  
                    awards is 7,761.  Would increasing the overall award  
                    amount of an already over-subscribed program result in  
                    fewer students receiving Cal Grant C awards?

          1)   Streamlining/alignment of outcome metrics.  Currently,  
               workforce development program funds for community college  
               Career Technical Education (CTE) offerings come from the  
               federal Carl Perkins Career and Technical Education Act,  
               the Economic and Workforce Development Program, and the  
               Career Technical Education Pathways Program.  The  
               Chancellor's Office reports that state and national policy  
               shifts have made these programs more similar in scope.   
               However, each of these funding streams requires distinct  
               metrics to be reported, creating duplicative administrative  
               burdens for both the Chancellor's Office staff and local  
               data collectors.  With the enactment of the federal  
               Workforce Innovation and Opportunity Act (WIOA), another  
               source of funding for workforce development programs, a  
               single set of common measures has been adopted for programs  
               serving both adults and youths under the Act. 

               This bill replaces existing accountability language under  
               the Economic and Workforce Development Program with  
               performance accountability outcome measures consistent with  
               that required under WIOA. Staff notes that the Legislature  
               has also recently provided funding for the development of  
               metrics to evaluate outcomes for Adult Education programs  
               and that these metrics are also expected to align with the  
               federal WIOA where applicable.  Enactment of these  
               provisions reduces the burden of data collection and  
               reporting, establishes common reporting across districts  
               and inter-segmentally, and eases the overall administrative  
               burden associated with workforce development programs.   

          2)   Data sharing and privacy protections. This bill requires  
               the Department of Consumer Affairs to share licensing data  
               with the California Community Colleges.  Information on  








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               licensure has not historically been a data element  
               collected by the community colleges. The ability to  
               reliably collect this data is impacted by the fact that  
               these are industry licenses generally awarded by certifying  
               bodies, and not the schools that provided the training.  
          The California Community Colleges (CCC) report that they have  
          already gathered similar data on apprenticeship, POST (Peace  
          Officers Standards and Training) certification, and CompTIA  
          (Computer Technology Industry Association) certification it is  
          the intent that this information be used for the Student Success  
          Scorecard as one measure of a successful completion in CTE  
          pathways and programs.  

          The CCC report that they have already entered into several  
          memorandums of understanding (MOUs) with various state agencies  
          to facilitate data sharing.  These include the Employment  
          Development, the Department of Social Services, the Office of  
          Statewide Health Planning and Development, the California  
          Student Aid Commission and California's public 4-year  
          universities.  While these agencies interpret federal and state  
          law to allow such sharing of information, according to the CCC,  
          the Department of Consumer Affairs believes that state and  
          federal privacy laws restrict their ability to share licensing  
          information.  The provisions of this bill would provide the  
          statutory clarity necessary to facilitate the sharing of  
          licensure data for the purpose of evaluating programmatic  
          outcomes.

          Staff notes that examples of the MOUs governing data use and  
          exchange outline very similar conditions regarding the use,  
          maintenance and destruction of confidential data.  In order to  
          ensure consistency, as well as protection of privacy, staff  
          recommends that the broader conditions applicable to most MOU  
          agreements be statutorily incorporated into the bill's  
          provisions, and that the bill be amended as follows:

               a)        On page 4, line 13, after the period insert,  
                    "Licensure information made available by the  
                    department pursuant to this section shall not be used  
                    for any other purpose."

               b)        On page 4, line 14, strike "confidential" and on  
                    line 16, replace "is in compliance" with  "complies"









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               c)        On page 4 after line 17 insert:

                    "(c) The department may, by agreement, condition or  
                    limit the availability of licensure information  
                    pursuant to subdivision (a) in order to ensure the  
                    security of the information and protect the privacy  
                    rights of the individuals to whom the information  
                    pertains.
                    (d) Licensure information made available pursuant to  
                    subdivision (a):
                    (1) shall be limited to only that information  
                    necessary to accomplish the purpose authorized in  
                    subdivision (a); 
                    (2) shall not be used in a manner that permits third  
                    parties to personally identify the individual or  
                    individuals to whom the information pertains;
                    (3) shall not be shared with or transmitted to any  
                    other party or entity without the consent of the  
                    individual or individuals to whom the information  
                    pertains; 
                    (4) shall be protected by reasonable security  
                    procedures and practices appropriate to the nature of  
                    the information to protect that information from  
                    unauthorized access, destruction, use, modification,  
                    or disclosure; and


                    (5) shall be immediately and securely destroyed when  
                    no longer needed for the purpose authorized in  
                    subdivision (a).
                    (e)  Notwithstanding subparagraph (d)(3), the  
                    department or the Office of the Chancellor of the  
                    California Community Colleges may share licensure  
                    information with a third party who contracts to  
                    perform the function authorized in subdivision (a),  
                    provided the third party is required by contract to  
                    follow the provisions of this section."

          3)   Related Budget Proposal.  The Governor's Proposed Budget  
               for 2016-17 includes $200 million to enable community  
               colleges to expand access to additional career technical  
               education courses and programs and to implement a regional  
               accountability structure that is aligned with the  
               recommendations of the Task Force on Workforce, Job  








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               Creation, and a Strong Economy.  According to the Governor,  
               the Task Force identified an opportunity to align the  
               myriad of career technical education programs at the  
               community colleges and local education agencies with the  
               state's regional workforce needs and fouryear undergraduate  
               programs.  Community colleges will be expected to  
               collaborate regionally with their educational, workforce,  
               labor, and civic partners to expand access to career  
               technical education programs and align programmatic  
               offerings with local wo4)rkforce demand. Community colleges  
               will use the strategic plans to inform the development,  
               coordination, and availability of new and existing career  
               technical education.  In addition, the Board of Governors  
               are expected to adopt guidance, policies, and regulatory  
               reforms that enable community college districts to develop  
               and expand access to career technical education courses and  
               programs in a timely manner. 
            
          SUPPORT
          
          Board of Governors
          California Chamber of Commerce
          Community College League of California

            OPPOSITION
           
           None received. 

                                      -- END --