BILL NUMBER: SB 1688 CHAPTERED 09/12/00 CHAPTER 404 FILED WITH SECRETARY OF STATE SEPTEMBER 12, 2000 APPROVED BY GOVERNOR SEPTEMBER 11, 2000 PASSED THE SENATE JULY 6, 2000 PASSED THE ASSEMBLY JUNE 22, 2000 AMENDED IN ASSEMBLY JUNE 15, 2000 AMENDED IN ASSEMBLY JUNE 14, 2000 INTRODUCED BY Senators Polanco and Rainey (Coauthors: Senators Alarcon, Alpert, Costa, Hughes, McPherson, O' Connell, Sher, Schiff, and Soto) (Coauthors: Assembly Members Alquist, Aroner, Bates, Campbell, Cardenas, Cardoza, Cedillo, Corbett, Correa, Cunneen, Davis, Dickerson, Dutra, Gallegos, Hertzberg, Honda, Longville, Lowenthal, Machado, Mazzoni, Nakano, Pescetti, Reyes, Scott, Shelley, Torlakson, Villaraigosa, Washington, Wiggins, and Zettel) FEBRUARY 22, 2000 An act to amend Sections 42239.2 and 69981 of, to add Sections 42239.15 and 99223 to, to add Chapter 17 (commencing with Section 53081) to Part 28 of, and to add Article 20 (commencing with Section 69995) to Chapter 2 of Part 42 of, the Education Code, relating to education, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1688, Polanco. Education. (1) Existing law makes each school district eligible for reimbursements for hours of pupil attendance claimed for intensive reading programs, pursuant to prescribed calculations. This bill would make each school district and charter school eligible for reimbursement for hours of pupil attendance claimed for intensive algebra academies, pursuant to prescribed calculations. (2) Existing law establishes the California State Summer School for Mathematics and Science to establish a multidisciplinary academic development program in mathematics and science and to enable pupils with demonstrated academic excellence in mathematics and science to receive intensive educational enrichment in these subjects. This bill would establish the Intensive Algebra Instruction Academies Program, which would authorize a school district or charter school that maintains grade 7 or 8, or both, to operate a program that provides multiple, intensive opportunities for pupils in those grades to practice skills in prealgebra, algebra, or both. The bill would require the Superintendent of Public Instruction to allocate a minimum of $6,766 for the Intensive Algebra Instruction Academies Program established in each school district meeting certain size and instructional time requirements. The Superintendent of Public Instruction would be required to evaluate the program by November 1, 2002. (3) Existing law establishes the Golden State Scholarshare Trust Act, pursuant to which and under regulations adopted by the Scholarshare Investment Board, participants invest money in the Golden State Scholarshare Trust for the benefit of a specific beneficiary for the advance savings for the beneficiary's higher education expenses, as defined, at certain postsecondary educational institutions. This bill would require the Scholarshare Investment Board to administer the Governor's Scholarship Programs established by this bill. Within the Governor's Scholarship Programs, the bill would establish the Governor's Scholars Program, under which a $1,000 scholarship would be awarded to each public high school pupil who demonstrates high academic achievement on certain tests. Also within the Governor's Scholarship Programs, the bill would establish the Governor's Distinguished Mathematics and Science Scholars Program, under which a $2,500 scholarship would be awarded to high school pupils who, in addition to demonstrating high academic achievement on the statewide achievement test, take and attain a specified score on an advanced placement calculus examination and an advanced placement examination in biology, chemistry, or physics. (4) Existing law requests the Regents of the University of California to jointly develop with the Trustees of the California State University and the independent colleges and universities, the California Reading Professional Development Institutes to provide instruction in the teaching of reading. The bill would also request the development of the Algebra Academies Professional Development Institutes to provide instruction in the teaching of prealgebra and algebra. After attending these institutes, teachers would serve as instructors in the programs established by the bill for pupils enrolled in grades 7 and 8. (5) Existing law establishes in the State Treasury the Special Fund for Economic Uncertainties, a continuously appropriated fund. Existing law authorizes the Controller to transfer amounts as needed to meet the cash needs of the General Fund and requires the Controller to return moneys so transferred as soon as there are sufficient moneys in the General Fund. Existing law authorizes the Director of Finance to allocate funds from the Special Fund for Economic Uncertainties for disaster relief by notifying the Joint Legislative Budget Committee. This bill would appropriate $118,000,000 to the Scholarshare Investment Board for the 2000-01 fiscal year for the purpose of making scholarships under the Governor's Scholarship Program. The bill would also authorize the Director of Finance to authorize the augmentation, from the Special Fund for Economic Uncertainties, of the amount appropriated annually for the purposes of scholarships under the Governor's Scholarship Program. By authorizing the expenditure of money in a continuously appropriated fund for a new purpose, the bill would make an appropriation. Funds appropriated by the bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution. (6) This bill would provide that it is to become operative only if SB 1644 is enacted. (7) This bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 42239.15 is added to the Education Code, to read: 42239.15. (a) For the 2000-01 fiscal year and each fiscal year thereafter, each school district and charter school shall be eligible for reimbursement for hours of pupil attendance claimed for intensive algebra instruction academies offered pursuant to Chapter 17 (commencing with Section 53081) of Part 28 in an amount up to 6 percent of the total enrollment in grades 7 and 8 of the school district or charter school for the prior fiscal year multiplied by 120 hours, multiplied by the hourly rate for the current fiscal year determined pursuant to subdivision (c) of Section 42239. This amount shall be provided in addition to the amount provided pursuant to Section 42239. (b) When expending funds received pursuant to this section, a school district shall give first priority for the purpose specified in paragraph (1) of subdivision (d) of Section 53082. SEC. 2. Section 42239.2 of the Education Code is amended to read: 42239.2. (a) Notwithstanding any other provision of law, the Superintendent of Public Instruction shall allocate a minimum of six thousand seven hundred sixty-six dollars ($6,766) for supplemental summer school programs established pursuant to Article 1 (commencing with Section 53025) of Chapter 16 of Part 28, from funds appropriated therefor, in each school district that, for the prior fiscal year, maintained less than 500 units of average daily attendance and that offers at least 1,500 hours of supplemental summer school instruction. A school district that, for the prior fiscal year, maintained less than 500 units of average daily attendance that offers less than 1,500 hours of supplemental summer school offerings shall receive a proportionate reduction in its allocation. (b) Notwithstanding any other provision of law, the Superintendent of Public Instruction shall allocate a minimum of six thousand seven hundred sixty-six dollars ($6,766) for Intensive Algebra Instructional Academies established pursuant to Section 53081, from funds appropriated therefor, in each school district that, for the prior fiscal year, maintained less than 333 units of average daily attendance for pupils in grades 7 and 8 and that offers at least 1,500 hours of intensive algebra instruction. A school district that, for the prior fiscal year, maintained less than 333 units of average daily attendance for pupils in grades 7 and 8 and that offers less than 1,500 hours of Intensive Algebra Instructional Academy offerings shall receive a proportionate reduction in its allocation. (c) Minimum allocations for supplemental summer school programs required pursuant to subdivisions (a) and (b) shall be adjusted for inflation in the 2000-01 fiscal year, and each fiscal year thereafter, in accordance with Section 42238.1. (d) For purposes of this section a charter school is a schoolsite and is not a school district. SEC. 3. Chapter 17 (commencing with Section 53081) is added to Part 28 of the Education Code, to read: CHAPTER 17. INTENSIVE ALGEBRA INSTRUCTION ACADEMIES PROGRAM 53081. This chapter shall be known and may be cited as the Intensive Algebra Instruction Academies Program. 53082. (a) A school district or charter school that maintains grade 7 or 8, or both, may operate a program that provides multiple, intensive opportunities for pupils in either of these grades to practice skills in prealgebra, algebra, or both. Funding for the program established pursuant to this chapter shall be provided pursuant to Section 42239.15. (b) As a condition of receiving funding for this program, a school district or charter school in which one or more teachers participate in the program authorized by Section 99223 is required to offer instruction as described in subdivision (a), to be provided by the teachers attending that program. These school districts and charter schools shall offer this instruction only after those teachers have completed the program authorized by Section 99223. Nothing in this subdivision shall be interpreted as precluding teachers in these school districts who have not participated in the program authorized by Section 99223 from providing instruction as described in subdivision (a). (c) Pupils shall remain eligible for participation in the program established pursuant to this chapter for three calendar months after completing grade 8. (d) The purposes of the program established by this chapter include, but are not limited to, both of the following: (1) To provide pupils who are experiencing difficulty learning prealgebra and algebra with increased instructional opportunities. (2) To provide stimulating and enriching opportunities for pupils to increase their prealgebra and algebra skills. (e) (1) Instruction provided pursuant to this program shall include all of the following components: (A) Mathematics principles generally used in a prealgebra course or an introductory algebra course. (B) Ongoing diagnostic techniques that inform teaching and assessment. (C) Early intervention techniques. (2) Instruction provided pursuant to this chapter shall be consistent with state-adopted academic content standards and with the curriculum framework on mathematics adopted by the State Board of Education for kindergarten and grades 1 to 12, inclusive. 53083. (a) (1) Except as provided in paragraph (2), intensive prealgebra and algebra instruction provided pursuant to this chapter shall be offered four hours per day for six continuous weeks during the summer or when school is not regularly in session. (2) Due to facilities constraints or for other educational reasons, a school district may offer intensive prealgebra and algebra instruction before school, after school, on Saturdays, or during intersession, or in a combination of summer school, after school, Saturday, or intersession instruction. (b) Instruction provided pursuant to this chapter shall fulfill the requirements of subdivision (a) of Section 44830 and of Section 44831. (c) Notwithstanding Section 49550 or any other provision of law, a school district that operates a program pursuant to this chapter is not required to provide a meal or snack to pupils participating in the program. 53084. The Superintendent of Public Instruction shall provide for an evaluation of the program established pursuant to this chapter on or before November 1, 2002. If funds are needed for this purpose, it is the intent of the Legislature that funds be appropriated for this purpose in the annual Budget Act. SEC. 4. Section 69981 of the Education Code is amended to read: 69981. (a) There is hereby created an instrumentality of the State of California to be known as the Golden State Scholarshare Trust. (b) The purposes, powers, and duties of the trust are vested in, and shall be exercised by, the board. (c) The board, in the capacity of trustee, shall have the power and authority to do all of the following: (1) Sue and be sued. (2) Make and enter into contracts necessary for the administration of the scholarshare trust. (3) Adopt a corporate seal and change and amend it from time to time. (4) Cause moneys in the program fund to be held and invested and reinvested. (5) Enter into agreements with any institution of higher education or any federal or other state agency or other entity as required for the effectuation of its rights and duties. (6) Accept any grants, gifts, appropriation, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund. Except as otherwise provided in Section 69982, the trust may not accept any contribution by any nonpublic entity, person, firm, partnership, or corporation that is not designated for a specified beneficiary. (7) Enter into participation agreements with participants, as set forth in Section 69983. (8) Make payments to institutions of higher education pursuant to participation agreements on behalf of beneficiaries. (9) Make refunds to participants upon the cancellation of participation agreements pursuant to the provisions, limitations, and restrictions set forth in this article. (10) Appoint a program administrator and determine the duties of the program administrator and other staff as necessary and set their compensation. The board may authorize the program administrator to enter into contracts on behalf of the board. (11) Make provisions for the payment of costs of administration and operation of the scholarshare trust. (12) Carry out the duties and obligations of the scholarshare trust pursuant to this article and have any and all other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this article pertaining to the scholarshare trust, as set forth in Section 69982. (d) The board shall adopt regulations as it deems necessary to implement this article and Article 20 (commencing with Section 69995) consistent with the federal Internal Revenue Code and regulations issued pursuant to that code to ensure that this program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. SEC. 5. Article 20 (commencing with Section 69995) is added to Chapter 2 of Part 42 of the Education Code, to read: Article 20. Governor's Scholarship Programs 69995. (a) It is the intent of the Legislature in enacting this article to encourage high school pupils to study hard and master the California academic content standards adopted by the State Board of Education and to excel in mathematics and the sciences. (b) The Scholarshare Investment Board, known hereafter as "the board," unless otherwise specified, shall administer the programs authorized by this article, including the adoption of rules and regulations as provided by subdivision (d) of Section 69981, and in so doing shall cooperate with the State Department of Education, the Treasurer's office, the Controller, the college board, private test publishing companies, and other entities necessary to ensure the accurate and timely identification and reporting of award recipients, granting of awards, and administration of these programs. The State Department of Education shall ensure that the contract with the test publisher selected pursuant to Section 60642 reflects the reporting requirements of this article and that the publisher meets those requirements. (c) The definitions in Section 69980 apply to this article. (d) To be eligible for an award pursuant to the programs authorized by this article, a pupil shall meet all of the following eligibility criteria: (1) Take the achievement test authorized by Section 60640 in grade 9, 10, or 11. (2) Attend a California public school for at least one continuous year prior to the administration of the achievement test specified in paragraph (1), as evidenced by his or her school records obtained as part of the process of claiming an award authorized by this article. (3) Take both of the following: (A) The nationally normed reading and mathematics portions of the achievement test, as specified by the State Board of Education and authorized by Section 60640. (B) The English/language arts and mathematics portions of the achievement test authorized by Section 60640 that are augmented and aligned, pursuant to subdivision (f) of Section 60644, with the California academic content standards, unless otherwise exempted by action of the State Board of Education. (e) Awards made pursuant to this article shall be an entitlement to pupils identified as qualifying for an award pursuant to this article. The entity contracted for the assessment authorized by Section 60640 shall annually provide the board with a digital report of award recipients pursuant to this section, no later than 30 days after the results of the assessment authorized by Section 60640 have been made public pursuant to subdivision (e) of Section 60641. Upon receipt of this report, the board shall deposit a single amount equal to the sum of the amounts of the awards earned by qualifying pupils into a single account separate and apart from all participant accounts within the Golden State Scholarshare Trust in the names of those pupils. Scholarship assets may not be commingled for investment purposes with participant accounts. Notwithstanding the provisions of Section 69991, all assets of the scholarship account, while part of the Golden State Scholarshare Trust, are owned by the state until a qualified distribution is made. (f) Deposits made to this account shall be invested according to the guidelines established by the board pursuant to the requirements of state and federal law. The deposits shall be invested through a guaranteed funding agreement with an interest rate to be declared annually by the investment manager, or through another investment determined by the board to be equally or more secure. For purposes of this section, a guaranteed funding agreement is an approved investment vehicle for state-owned scholarship funds. (g) Nothing in this article shall be construed to prevent any pupil from seeking private or other funding sources to supplement the amount of any funds awarded pursuant to this article. (h) Award recipients shall be informed that the programs authorized by this article do not guarantee in any way that higher education expenses will be equal to projections and estimates provided by the board, nor that the claimant will be guaranteed any of the following: (1) Admission to an institution of higher education. (2) If admitted, a determination that the award recipient is a resident for tuition purposes by the institution of higher education. (3) Continued attendance at the institution of higher education following admission. (4) Graduation from the institution of higher education. (5) Savings sufficient to fully cover all qualified education expenses of attending an institution of higher education. (i) Notwithstanding any other provision of state law, any funds awarded pursuant to this article shall augment and not supplant student financial aid from other public sources, inclusive of calculating eligibility for student financial aid. (j) Notwithstanding any other provision of law, the awards and earnings claimed by a recipient pursuant to this article shall be exempt from state income tax liability. (k) To the extent allowed under federal law, any funds awarded pursuant to this article may not be considered in the federal needs analysis for student financial aid, as they are an asset of the state until used for the payment of qualified higher education expenses. 69996. (a) Awards and the investment earnings accumulated pursuant to this article shall be available for the payment of qualified higher education expenses, as defined in subdivisions (g) and (l) of Section 69980. Pursuant to its authority under subdivision (d) of Section 69981, the board shall adopt rules and regulations to ensure that funds authorized by this chapter are disbursed directly to the institution of higher education indicated by an award recipient's claim form. (b) Funds authorized by this article are nontransferable to any other person or entity and may only be used for the purposes stated herein. No funds authorized by this article may be pledged as collateral for any loan. (c) (1) Awards and their investment earnings invested in the Scholarshare Trust shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses as authorized by this section, and shall remain invested in the Scholarshare Trust until they are used for the purposes authorized by this section or until the recipient achieves the age of 30, whichever occurs first. If, due to death or disability, an award recipient is unable to attend a postsecondary educational institution before reaching the age of 30 and the scholarship funds have not already been used for purposes of this article, the scholarship funds designated for the recipient shall revert to the General Fund. (2) Any funds, less any applicable penalties, collected pursuant to Section 529 of the federal Internal Revenue Code not utilized within this time period shall revert to the General Fund after the payment of any amount determined to be due the federal government as a result of the reversion. (d) The board shall establish rules and regulations for an award recipient to claim the funds deposited and accrued in the Scholarshare Trust in the name of that recipient, including, but not limited to, the claim process, necessary documentation, deadlines for the claims and the granting of awards and an appeals procedure, and any forfeiture procedures. (e) The board shall request each award recipient to voluntarily report personal information, including, but not limited to, ethnicity, gender, and family income. The board shall compile and retain this information in a confidential manner so that the personal information of any award recipient is not publicly disclosed in a manner that may be associated with particular individuals. (f) Within the annual report required pursuant to Section 69989, the board shall also include, at a minimum, the number of pupils qualifying for an award pursuant to this article, the number of awards claimed and disbursed, the rate of return earned by the funds authorized by this article in the previous five fiscal years, the amount of funds expended pursuant to this article in the previous five fiscal years, and a list, by high school, of the number of awards granted pursuant to the program authorized by this article. To the extent that information is available and can be disclosed without allowing the information to be associated with particular individuals, the board shall include information on the ethnicity, gender, and family income of award recipients. 69997. (a) The Governor's Scholars Program is hereby established. This program shall provide a scholarship of one thousand dollars ($1,000) to each public high school pupil who demonstrates high academic achievement on the achievement test authorized by Section 60640. Pupils receiving a scholarship pursuant to this section shall be known as "Governor's Scholars." (b) Until the State Board of Education determines that the English language arts and mathematics portions of the statewide pupil achievement test authorized by Section 60640 have been aligned with the California academic content standards, and the standards aligned test is both valid and reliable for high stakes purposes, a pupil shall earn a scholarship pursuant to this section by satisfying either of the following criteria: (1) Attaining a combined score on the reading and mathematics portions of the nationally normed achievement test adopted by the State Board of Education pursuant to Section 60642 that places him or her in the top 5 percent of test takers in his or her grade level statewide. (2) Attaining a combined score on the nationally normed reading and mathematics portions of the achievement test adopted by the State Board of Education pursuant to Section 60642 that places him or her in the top 10 percent of test takers in his or her grade level in the comprehensive public high school attended by that pupil. When calculating the top 10 percent, the result shall be rounded to the nearest whole integer for the purpose of determining the number of awards in any high school. If this calculation results in a number of pupils less than one in any high school, there shall be one award at that school. (c) Pupils earning an award pursuant to subdivision (b) may receive only one award in any given year. However, a pupil may earn a lifetime maximum of three awards by meeting the requirements of this section in each of grades 9, 10, and 11. (d) Once the State Board of Education has determined that the English language arts and mathematics portions of the statewide pupil achievement test authorized by Section 60640 have been aligned with the California academic content standards, and the standards aligned test is both valid and reliable for high stakes purposes, that test shall be used as the basis for the award of scholarships pursuant to subdivision (a). 69998. (a) The Governor's Distinguished Mathematics and Science Scholars Program is hereby established. This program shall provide a scholarship of two thousand five hundred dollars ($2,500) for public high school pupils who demonstrate specified high academic achievement in mathematics and the sciences. Pupils receiving a scholarship pursuant to this section shall be known as "Governor's Mathematics and Science Scholars." (b) In addition to the criteria specified in subdivision (d) of Section 69995, a pupil shall satisfy the following to be eligible to receive a scholarship pursuant to this section: (1) Earn an award pursuant to the program authorized by Section 69997. (2) Take an advanced placement calculus examination offered by the college board. (3) Take any one of the advanced placement biology, chemistry, or physics examinations offered by the college board. (4) If the provisions of subdivision (c) apply, then paragraphs (2) and (3) shall be effective only as specified in subdivision (c). (c) (1) If the pupil's school offers an advanced placement course in a subject described in subdivision (b), only the advanced placement examination in that subject shall be allowed for the purposes of determining eligibility for an award pursuant to this section. If a pupil's school does not offer an advanced placement course in a subject identified in subdivision (b), he or she may take instead the Golden State Examination, as authorized by Article 5 (commencing with Section 60650) of Chapter 5 of Part 33, in that subject. Should there appear to be a conflict between this subdivision and any other subdivision related to this program, this subdivision shall be controlling. (2) For the science test, the Golden State Examination in second-year coordinated science may be used in place of any other Golden State Examination in science for the purposes of this subdivision. (3) For the mathematics test, only the High School Mathematics Golden State Examination may be used for the purposes of this subdivision. (d) Eligible pupils shall earn a scholarship pursuant to this section by satisfying all of the following requirements: (1) Attaining a score of five, on the advanced placement calculus AB examination, or attaining a score of four or five on the higher-level advanced placement calculus BC examination. (2) Attaining a score of five on any one of the advanced placement biology, chemistry, or physics B examinations, or attaining a score of four or five on either of the advanced placement physics C (mechanics or electricity and magnetism) examinations. (3) If a pupil is eligible for an award pursuant to paragraph (4) of subdivision (b), he or she must attain a score of six on the appropriate Golden State Examination, as described in subdivision (c). (e) As an alternative to the examination requirements set forth in subdivisions (b), (c), and (d), a pupil may be eligible to receive a scholarship pursuant to this section for performance in science and mathematics examinations that are part of the International Baccalaureate Program. The State Board of Education shall review and designate those International Baccalaureate examinations that are equivalent to the advanced placement tests or Golden State Examinations for which pupils may receive scholarships pursuant to this section. The State Board of Education shall also designate the score on International Baccalaureate examinations that is equivalent to the score required on advanced placement tests or Golden State Examinations in order to receive a scholarship. (f) The State Board of Education may modify this list of examinations as necessary to reflect additions and deletions to the series of examinations offered by the college board for advanced placement courses. The State Board of Education may also determine the relative rigor of any new examinations added to the list and whether those examinations should require a score of four or five if the added examinations and qualifying scores reflect at least the same level of rigor as the advanced placement examinations specified in this section. (g) A pupil may receive a maximum of one award pursuant to the program established by this section. (h) Paragraph (4) of subdivision (b), subdivision (c), and paragraph (3) of subdivision (d) shall become inoperative, and are repealed as of December 31, 2001. 69999. The board may adopt regulations for the purposes of this article as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). For the purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code. Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, any regulation adopted pursuant to this section shall not remain in effect more than one year unless the board complies with rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), as required by subdivision (e) of Section 11346.1 of the Government Code. SEC. 6. Section 99223 is added to the Education Code, to read: 99223. The Regents of the University of California are requested to jointly develop with the Trustees of the California State University and the independent colleges and universities, the Algebra Academies Professional Development Institutes, to be administered by the university, in partnership with the California State University and with private, independent universities in California, in accordance with all of the following criteria: (a) In July 2000, the University of California and its institutes' partners shall commence instruction for 1,000 participants who either provide direct instruction in prealgebra and algebra to pupils in grades 7 and 8, or supervise beginning teachers of algebra. (b) (1) The institutes shall provide instruction for school teams from each participating school. These school teams may include both beginning and experienced teachers and the schoolsite administrator. (2) Criteria and priority for selection of participating school teams shall include, but are not necessarily limited to, all of the following: (A) Schools whose pupils' scores on the mathematics portion of the achievement test authorized by Section 60640 are at or below the 40th percentile. (B) Teams composed of a large percentage of members of their schools' mathematics departments, which may include the chair of that department. (C) Schools with high poverty levels, as determined by the percentage of pupils eligible for free or reduced price meals. (D) Schools with a high number of beginning and noncredentialed teachers. (E) Schools that have adopted standards-based materials approved by the State Board of Education. (3) In any fiscal year, if funding is inadequate to accommodate the participation of all eligible school teams, first priority shall be given to schools that meet the criteria described in subparagraph (D) of paragraph (2). (c) (1) The institutes shall provide instruction in the teaching of prealgebra and algebra in a manner consistent with the standard for a comprehensive mathematics instruction program that is research-based and shall include all of the following components: (A) Instruction in prealgebra and algebra that will enhance the ability of teachers to prepare pupils for the achievement test authorized pursuant to Section 60640 and the high school exit examination authorized pursuant to Section 60850. (B) Ongoing diagnostic techniques that inform teaching and assessment. (C) Early intervention techniques for pupils experiencing difficulty in prealgebra and algebra. (2) Instruction provided pursuant to this section shall be consistent with state-adopted academic content standards and with the curriculum frameworks on mathematics for kindergarten and grades 1 to 12, inclusive, that are adopted by the State Board of Education. (d) Each participant who satisfactorily completes an institute authorized by this section shall receive a stipend, commensurate with the duration of the institute, of not less than one thousand dollars ($1,000) nor more than two thousand dollars ($2,000), as determined by the University of California. (e) In order to provide maximum access, the institutes shall be offered on multiple university and college campuses that are widely distributed throughout the state. Instruction at the institutes shall consist of an intensive, sustained training period of no less than 40 hours during the summer or during an intersession break, and shall be supplemented, during the following school year, with no fewer than the equivalent of five additional days of instruction and schoolsite meetings, held on at least a monthly basis, to focus on the academic progress of that school's pupils in prealgebra and algebra. (f) Teachers attending the institutes authorized by this section shall, as a condition of attendance and subsequent to that attendance, serve as instructors in the program authorized by Chapter 17 (commencing with Section 53081) of Part 28. These teachers shall continue to receive followup professional development during the same time period they are providing instruction. Followup professional development during this time period shall occur outside of instructional time. (g) It is the intent of the Legislature that a local education agency or postsecondary institution that offers an accredited program of professional preparation consider providing partial and proportional credit toward satisfaction of mathematics course requirements to an enrolled candidate who satisfactorily completes an Algebra Academies Professional Development Institute if the institute has been certified by the Commission on Teacher Credentialing as meeting mathematics standards. SEC. 7. (a) The sum of one hundred eighteen million dollars ($118,000,000) is hereby appropriated from the General Fund to the Scholarshare Investment Board for the 2000-01 fiscal year for the purpose of making scholarship awards pursuant to Article 20 (commencing with Section 69995) of Chapter 2 of Part 42 of the Education Code. It is the intent of the Legislature that administrative costs for purposes of the program established by Article 20 (commencing with Section 69995) of Chapter 2 of Part 42 of the Education Code be funded through the annual Budget Act. Administrative costs of the program established by Article 20 (commencing with Section 69995) of Chapter 2 of Part 42 of the Education Code may not be funded through the administrative fund of the trust established by Article 19 (commencing with Section 69980) of the Education Code. (b) Notwithstanding any other provision of law, the Director of Finance may authorize the augmentation, from the Special Fund for Economic Uncertainties established pursuant to Section 16418 of the Government Code, of the annual amount appropriated for the purpose of making scholarship awards pursuant to Article 20 (commencing with Section 69995) of Chapter 2 of Part 42 of the Education Code, as necessary to fully fund the number of awards authorized by that article. No augmentation may be authorized sooner than 30 days after notification in writing of the Chairperson of the Joint Legislative Budget Committee and the chairperson of the committee in each house that considers appropriations, nor sooner than whatever lesser time those persons, or their designees, may in each instance determine. SEC. 8. This act shall become operative only if Senate Bill 1644 of the 1999-2000 Regular Session is enacted. SEC. 9. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to implement the Budget Act of 2000 with respect to the public schools and institutions of higher education, it is necessary that this act take effect immediately.