BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 81|
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UNFINISHED BUSINESS
Bill No: SB 81
Author: Committee on Budget and Fiscal Review
Amended: 6/16/15
Vote: 21
SENATE FLOOR: Not relevant
ASSEMBLY FLOOR: Not available
SUBJECT: Postsecondary education: budget
SOURCE: Author
DIGEST: This bill provides for statutory changes necessary to
enact postsecondary education-related provisions of the Budget
Act of 2015.
Assembly Amendments delete the Senate version of the bill and
insert the current language.
ANALYSIS: This bill makes the following statutory changes to
implement the 2015-16 Budget. Specifically, this bill:
1) State Authorization for Regional Occupational Programs.
Authorizes the Superintendent of Public Instruction (SPI),
for purposes of participation in Title IV of the federal
Higher Education Act of 1965, which authorizes federal
student financial assistance programs, to: (a) certify by
name, a regional occupational center and program, or a county
office of education or an adult education program to legally
authorize the center, program or county office to provide an
educational program beyond secondary education, including an
education program that leads to a degree or certificate; (b)
adopt regulations that authorize a complaint process under
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the Uniform Complaint Procedures outlined in specified
regulations; and (c) decertify any program no longer in
compliance with specified requirements consistent with
federal regulations, among other provisions.
2) Community College Veterans Access, Choice and Accountability
Act. Requires the California Community Colleges (CCC) and
California State University (CSU) to exempt students from
nonresident tuition starting on July 1, 2015, if they the
meet all of the following requirements: (a) student resides
in California; (b) student meets the definition of "covered
individual," as defined under Title 38 of the United States
Code, federal statute; and (c) student is eligible for
education benefits under either the federal Montgomery GI
Bill or Post 9/11 GI Bill program, and are continuously
enrolled at the campus they attend.
3) Cal Grant Maximum Award. Delays, by two years, a reduction
in the maximum amount of the Cal Grant A and B awards for
students attending private, non-profit colleges or accredited
for-profit colleges in 2015-16 and 2016-17. In 2015-16 and
2016-17, eligible students will receive $9,084 for tuition
expenses each year.
4) Community College Foster Care Education Program. Requires
funds appropriated to the board of governors for the Foster
Care Education Program to be used for foster parent and
relative/kinship care provider education as specified by the
Chancellor, in consultation with an advisory committee.
Specifies that each college receiving funds for this program
shall have a plan for foster parent and relative/kinship care
provider education that includes provisions of training, and
complies with all reporting requirements, guidelines and
other conditions specified by the Chancellor.
5) CCC Reporting Requirements. Codifies various reporting
requirements for the Student Success and Basic Skills
Students program, the Student Financial Aid Administration
program, technical assistance provided to community college
districts pursuant to the Student Success and Support
Program, and the Telecommunications and Technology program.
Requires the Chancellor to annually submit reports for the
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prior fiscal year to the Department of Finance and the
Legislature by December 31.
6) CCC Adjust Base Allocation. Authorizes the Chancellor's
Office to adjust the general apportionment formula to
recognize funds appropriated to address increased operating
costs and to improve instruction. Authorizes the Chancellor's
Office to make conforming adjustments to the community
college budgetary standards and criteria, and requires the
chancellor to notify the Department of Finance and the
Legislature of the specific adjustments made.
7) CCC Local Property Tax Revenues and Education Protection
Account. Provides the Department of Finance the authority to
modify and update Proposition 98 General Fund appropriations
to CCC based on updated revenue estimates for redevelopment
agencies and Education Protection Account (Proposition 30).
Proposition 98 General Funds would be used to offset any
difference between (a) estimated revenues for community
colleges from redevelopment agencies and the Education
Protection Account (Proposition 30) and (b) the amounts
distributed to colleges from these sources by June 30. This
change will allow districts to have more certainty when
preparing their fiscal plans.
8) Career Technical Education Pathways Program. Extends the
sunset date for the Career Technical Education Pathways
Program from June 30, 2015, to July 1, 2016, and appropriates
$48 million one-time Proposition 98 funds for the program.
9) CSU Capital Outlay Reporting Timeline. Makes changes to
CSU's capital outlay program to better align its reporting to
the Department of Finance on proposed capital projects with
the timing of Board of Trustees' decisions.
10) State Authorization for Private Colleges and
Universities. Responds to new federal regulations by
authorizing private colleges and universities to operate in
the state, and sets up a complaint process for students
through the Bureau for Private Postsecondary Education.
11) CCC Deferred Maintenance, Instructional Equipment
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and Drought Resistance Projects. Provides $48 million
one-time Proposition 98 General Fund for deferred
maintenance, instructional equipment and drought resistance
projects at community colleges. The funding will be
distributed on a per-student basis.
12) Innovation Awards Funding Shift. Shifts $23
million in 2014-15 funding from the Innovation in Higher
Education Awards program from the General Fund to Proposition
98 General Fund, to reflect the amount of awards distributed
to community colleges.
13) UC Merced Project Savings. Allows the University
of California (UC) to use project savings from the UC Merced
Classroom and Academic Office Building project to cover
potential deficiencies in the construction phase of the same
project.
14) Competitive Cal Grants. Increases the number of
competitive Cal Grants by 3,250 awards for a total of 25,750
awards. Eligibility for Competitive Cal Grant awards is
geared toward nontraditional students who did not go to
college right after high school, do not depend on their
family for financial support or are returning to college for
career training.
15) CCC Baccalaureate Degree Program. Provides $6
million to the Chancellor's Office to implement the
Baccalaureate Pilot Program established pursuant to SB 850
(Block, Chapter 747, Statutes of 2014). These funds may be
used to support professional development activities.
16) Eligibility study. Provides $1 million from the
General Fund to establish and implement a new freshman
eligibility study pursuant to legislation enacted in 2015-16
to determine if admission requirements at the UC and CSU are
consistent with the state's 1960 Master Plan for Higher
Education.
17) Middle Class Scholarship. Amends the Middle Class
Scholarship program to exclude students with family assets
over $150,000, sets a four- or five-year time limit for the
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program similar to limits imposed in the Cal Grant program,
and allows income and asset limits to increase with the
Consumer Price Index. Also, reduces statutory appropriations
for the program in the 2015-16, 2016-17, and 2018-19 fiscal
years and states legislative intent that those savings be
redirected to other higher education programs.
18) UC Capital Outlay. Expands the UC's capital outlay
program by allowing it to use its General Fund appropriation
to make availability payments on capital expenditures. Also
requires the UC to use this funding structure for the UC
Merced 2020 project, as long as work traditionally performed
by UC employees continues to be performed by UC employees.
19) Basic Skills Partnership Pilot Program. Creates
the Basic Skills Partnership Pilot Program, which will
provide five community college districts with $2 million
grants each to develop partnerships among schools districts,
community colleges and CSU campuses to develop improved
strategies to provide remedial education for underprepared
college students.
20) Basic Skills and Student Outcomes Transformation
Program. Creates the Basic Skills and Student Outcomes
Transformation Program, which will provide $60 million
Proposition 98 General Fund to assist community college
districts in improving the delivery of basic skills
instruction.
21) College Access Tax Credit. Amends the College
Access Tax Credit program to add a new College Access Tax
Credit for one year in tax year 2017 under the Insurance
Gross Premiums Tax and Corporation Tax; adds the College
Access Tax Credit to the list of tax credits that can reduce
the Tentative Minimum Tax under the Alternative Minimum Tax
calculations for Personal Income and Corporation Tax;
continuously appropriates the fund to the California Student
Aid Commission to award supplemental Cal Grants; and makes
other technical changes.
22) Apprenticeship Reporting. Requires the Community
College Chancellor's Office to report to the California
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Apprenticeship Council within 30 days of each apportionment
period, information regarding the hourly rate paid to local
educational agencies and community colleges, and the number
of instruction hours allocated to, and reported by, each
local educational agency and community college.
23) Apprenticeship Allocation Deadline. Requires the
Community College Chancellor's Office to notify local
education agencies and community colleges of upcoming
allocation amounts within 30 days of the enactment of the
Budget Act.
24) Innovative Apprenticeship Program. Allows the
Community College Chancellor's Office to work with the
Division of Apprenticeship Standards to develop and implement
innovative apprenticeship programs in high-growth industries.
25) New Campus Study. Requires the Legislative
Analyst's Office to study and report on whether there is a
long-term need for a new CSU or UC campus, and if there is a
need, where campuses would be needed.
26) State Mandates. Establishes that if the Commission
on State Mandates determines that acts in this bill are costs
mandated by the state, reimbursement would occur through the
mandates process.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: Yes
According to the Senate Budget and Fiscal Review Committee,
statutory changes contained in this bill, including
appropriations, are consistent with the 2015 budget package.
SUPPORT: (Verified6/19/15)
None received
OPPOSITION: (Verified6/19/15)
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None received
Prepared by: Anita Lee / B. & F.R. / (916) 651-4103
6/19/15 10:30:35
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