BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 252


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          SENATE THIRD READING


          SB  
          252 (Leno)


          As Amended  August 28, 2015


          Majority vote


          SENATE VOTE:  40-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Education       |7-0  |O'Donnell, Chávez,    |                    |
          |                |     |Kim, McCarty,         |                    |
          |                |     |Santiago, Thurmond,   |                    |
          |                |     |Weber                 |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonta,         |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Nazarian, Eggman,     |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                     SB 252


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          SUMMARY:  Prohibits the California Department of Education (CDE)  
          from charging homeless youth a fee to take the California High  
          School Proficiency Exam (CHSPE) and prohibits any contractor or  
          testing center from charging homeless youth a fee to take any  
          high school equivalency test (also known as the GED).   
          Specifically, this bill:  


          1)Specifies no additional state funds will be appropriated for  
            purposes of implementing the requirements of the bill,  
            however; the bill authorizes the Superintendent of Public  
            Instruction (SPI) to use surplus funds from the special  
            deposit account established for the high school equivalency  
            test, to be used to reimburse contractors for any loss of  
            fees.


          2)Requires a contract executed by CDE for the provision of the  
            high school equivalency test to require the contracting party  
            to accept all examinees, including those that qualify for a  
            fee waiver pursuant to this bill. 


          3)Requires the CDE to include a provision in all memorandums of  
            understanding (MOUs) with contractors providing the high  
            school equivalency test, that if the surplus funds in the  
            special deposit account are depleted, the ongoing costs of a  
            fee waiver will be absorbed by the contractor. 


          4)Authorizes the CDE to adopt emergency regulations to implement  
            this bill as necessary.


          5)Defines homeless youth as an individual who lacks fixed,  
            regular, and adequate residence as defined under the federal  
            McKinney-Vento Act and; the status as a homeless youth is  








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            required to be verified by homeless services provider such as  
            a government agency or law enforcement officer.


          6)Requires the Superintendent of Public Instruction (SPI), on or  
            before December 1, 2018, to submit a report to the Legislature  
            on the number of homeless youth that took a high school  
            proficiency test in each of the 2016, 2017, and 2018 calendar  
            years; the impact of the no cost testing option on homeless  
            youth; estimated number of homeless youth that may take a high  
            school proficiency test in future years; a recommendation for  
            a permanent funding source in future years; the annual and  
            projective administrative costs to CDE and reimbursement to  
            contractors.  Sunsets the reporting requirement on January 1,  
            2020.


          7)Contains a sunset date of July 1, 2019.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)Approximately 49,000 homeless youth attended grades 10-12,  
            inclusive, according to 2013-14 data.  For illustration,  
            assuming 1% of these students take the high school equivalency  
            exam at a cost of $140 per test; this would result in annual  
            costs of $68,600.  This bill prohibits the use of additional  
            state funds to support the fee exemption; however, this bill  
            authorizes the CDE to use surplus funds from the GED special  
            deposit account through January 1, 2020, to support associated  
            costs.  The CDE estimates the fund has a surplus of  
            approximately $1.3 million. 


          2)Assuming 1% of homeless students in grades 10-12 take the  
            CHSPE at a cost of $110 per test, this would result in annual  
            costs of $53,900.  This bill prohibits additional state  








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            funding from being provided to implement fee exemptions,  
            therefore; any costs associated with a fee exemption for the  
            CHSPE would be absorbed by other test takers at the local  
            level.  (The $1.3 million identified in the GED special  
            deposit account noted above cannot be used for costs  
            associated with the CHSPE). 


          3)CDE estimates one-time administrative costs of approximately  
            $100,900 and ongoing costs of approximately $77,000 to process  
            reimbursements to vendors and to collect and process data  
            related to reporting requirements in this bill.  These costs  
            are 50% General Fund and 50% Special Funds.  In addition, CDE  
            anticipates minor costs for regulations and for DGS to process  
            the contracts with test vendors. 


          COMMENTS:  According to the author, during the 2012-2013 school  
          year, nearly 270,000 California students experienced  
          homelessness.  Twenty-seven percent of these students were  
          enrolled in grades 9-12.  California studies have found that as  
          many as 75% of older homeless youths drop out of school.   
          Exempting homeless youth from examination fees will remove  
          financial barriers and increase accessibility to the high school  
          proficiency and equivalency examinations.  


          High school equivalency exam.  The state authorizes the high  
          school equivalency test (commonly referred to as the GED) as an  
          alternative to a high school diploma.  The State Board of  
          Education has approved three high school equivalency tests for  
          use in California: one is provided by a not-for-profit company  
          and two are provided by for-profit companies.  The state has  
          established a special deposit account for fees generated from  
          the test to be used for administrative purposes.  Currently the  
          account has a surplus of $1.3 million.  This amount fluctuates  
          annually depending on administrative needs.  For example,  
          according to the CDE, last year the cost to administer the GED  
          was approximately $800,000; however, the state only collected  








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          $600,000.   


          This bill, until July 1, 2019, authorizes the CDE to use surplus  
          funds to reimburse contractors for any loss of funds as a result  
          of providing fee exemptions to homeless students.  It is not  
          clear how long the account can sustain these reimbursements.   
          The bill calls for a study to review the sustainability of this  
          funding source.  Additionally, if the surplus funds in the  
          special deposit account are depleted, the ongoing costs of a fee  
          waiver are required to be absorbed by the contractor.


          California High School Proficiency Exam (CHSPE).  The state also  
          authorizes the CHSPE as an alternative to a high school diploma.  
           CDE is responsible for the CHSPE and contracts with the  
          Sacramento County Office of Education, with support from  
          Educational Data Systems, Inc, to administer the test.  Students  
          pay a fee of $110 to take the CHSPE for those who register by  
          the deadline, $135 for late registration, and $160 for emergency  
          registration.  


          Costs associated with providing a fee exemption to homeless  
          students will be passed on to other test takers.  The CDE has  
          the authority under existing law to raise the fee as necessary  
          to cover these additional costs.




          Analysis Prepared by:                                             
          Rick Pratt / ED. / (916) 319-2087  FN: 0001720














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