BILL NUMBER: SB 131 CHAPTERED 10/10/99 CHAPTER 651 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 6, 1999 PASSED THE SENATE SEPTEMBER 10, 1999 PASSED THE ASSEMBLY SEPTEMBER 9, 1999 AMENDED IN ASSEMBLY SEPTEMBER 7, 1999 AMENDED IN ASSEMBLY AUGUST 16, 1999 AMENDED IN ASSEMBLY JULY 15, 1999 AMENDED IN SENATE MAY 28, 1999 AMENDED IN SENATE MAY 6, 1999 AMENDED IN SENATE APRIL 29, 1999 AMENDED IN SENATE APRIL 15, 1999 AMENDED IN SENATE APRIL 8, 1999 INTRODUCED BY Senator Baca (Coauthor: Senators Hayden and O'Connell) (Coauthors: Assembly Members Jackson, Romero, and Washington) DECEMBER 23, 1998 An act to amend Sections 69612, 69612.5, 69613, 69613.1, 69615.4, and 69615.6 of the Education Code, relating to teacher training. LEGISLATIVE COUNSEL'S DIGEST SB 131, Baca. Teacher training: Assumption Program of Loans for Education. Existing law establishes an Assumption Program of Loans for Education under which an applicant enrolled in a participating institution of postsecondary education, or an applicant who agrees to participate in a teacher trainee or teacher internship program, and who further agrees to obtain a teaching credential in subject areas that are designated as current or projected shortage areas or to provide classroom instruction in schools that serve large populations of pupils from low-income families, is eligible to receive a conditional warrant for loan assumption, to be redeemed pursuant to a prescribed procedure upon becoming employed as a teacher. Existing law provides that, for the 1999-2000 school year, and each school year thereafter, the Student Aid Commission is authorized to issue warrants for the assumption of up to 5,500 loans under this program. This bill would, commencing with the 2000-01 school year, extend the Assumption Program of Loans for Education to applicants who agree to provide classroom instruction in school districts with a high percentage of teachers holding emergency permits. The bill would provide that, in the 2000-01 school year and each school year thereafter, warrants for the assumption of student loans for applicants who agree to teach in school districts with a high percentage of teachers holding emergency permits would be issued in a quantity determined by the Legislature in the annual Budget Act, notwithstanding the limit of 5,500 loans. The bill would require the Superintendent of Public Instruction to furnish to the Student Aid Commission a list of schools with a high percentage of teachers holding emergency permits and would require the list to be established according to criteria determined by the Superintendent of Public Instruction. The bill would authorize the commission to recommend an annual limit under this section that is higher than 5,500 and submit that recommendation to the Legislative Analyst for review and comment. The bill would state the intent of the Legislature that the amount appropriated for purposes of this provision in the Budget Act reflect consideration of the information provided by the commission and the Legislative Analyst. This bill incorporates additional changes in Sections 69612, 69612.5, 69613, 69613.1, 69615.4, and 69615.6 of the Education Code, proposed by AB 31, to be operative if AB 31 and this bill are both enacted and become effective on or before January 1, 2000, and this bill is enacted last. 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) (1) The Legislature hereby recognizes that there is a growing shortage of high quality classroom teachers and that there is a need for qualified teachers throughout California. The teacher shortage is most serious in particular subject areas, partly due to the shortage of students in these fields who enter the teaching profession. The Legislature also recognizes that many school districts have difficulty recruiting and retaining high-quality teachers for pupils with special needs, for schools serving large populations of students from low-income and linguistic minority families, and schools with a high percentage of teachers holding emergency permits. (2) The Legislature finds that the rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make loan repayment options an important consideration in a student's decision to pursue a postsecondary education. The availability of financial aid and loan repayment assistance are important considerations for many students, especially economically disadvantaged students, in making their educational decisions. (b) It is the intent of the Legislature that the Assumption Program of Loans for Education be designed to encourage persons to enter into the teaching profession in designated subject matter shortage areas and in schools serving large populations of students from low-income families, schools with a high percentage of teachers holding emergency permits, or schools with any or all of these characteristics. It is further the intent of the Legislature in enacting this article to do all of the following: (1) 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. (2) Provide persons who agree to become teacher trainees or teacher interns in a subject matter shortage area with the assurance of financial assistance to encourage them to complete the additional coursework necessary to obtain a teaching credential. (3) Identify subject matter areas or schools in which there are shortages of fully credentialed teachers and provide incentives for persons to obtain teaching credentials and seek teaching positions in those areas. (4) Identify schools serving large populations of students from low-income families and schools with a high percentage of teachers holding emergency permits, and provide incentives for persons to obtain teaching credentials and seek teaching positions in those schools. SEC. 1.5. Section 69612 of the Education Code is amended to read: 69612. (a) (1) The Legislature hereby recognizes that there is a growing shortage of high-quality classroom teachers, and that there is a need for qualified teachers throughout California. The teacher shortage is most serious in particular subject areas, partly due to the shortage of students in these fields who enter the teaching profession. The Legislature also recognizes that 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 students from low-income and linguistic minority families, and schools with a high percentage of teachers holding emergency permits. (2) The Legislature finds that the rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make loan repayment options an important consideration in a student's decision to pursue a postsecondary education. The availability of financial aid and loan repayment assistance are important considerations for many students, especially economically disadvantaged students, in making their educational decisions. (b) It is the intent of the Legislature that the Assumption Program of Loans for Education be designed to encourage persons to enter into the teaching profession in designated subject matter shortage areas and in schools serving large populations of students from low-income families, schools serving rural areas, schools with a high percentage of teachers holding emergency permits, or schools with any or all of these characteristics. It is further the intent of the Legislature in enacting this article to do all of the following: (1) 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. (2) Provide persons who agree to become teacher trainees or teacher interns in a subject matter shortage area with the assurance of financial assistance to encourage them to complete the additional coursework necessary to obtain a teaching credential. (3) Identify subject matter areas or schools in which there are shortages of fully credentialed teachers and provide incentives for persons to obtain teaching credentials and seek teaching positions in those areas. (4) Identify schools serving rural areas, schools serving large populations of students from low-income families, or both, and schools with a high percentage of teachers holding emergency permits, and provide incentives for persons to obtain teaching credentials and seek teaching positions in those schools. SEC. 2. Section 69612.5 of the Education Code is amended to read: 69612.5. It is the intent of the Legislature that, commencing with the 1985-86 school year, all persons eligible to receive conditional warrants for loan assumptions pursuant to this article shall be persons who need to complete training or coursework in order to be fully credentialed to teach in a designated subject matter shortage area, or in schools serving a large population of students from low-income families or, commencing with the 2000-01 school year, in schools with a high percentage of teachers holding emergency permits. SEC. 2.5. Section 69612.5 of the Education Code is amended to read: 69612.5. It is the intent of the Legislature that, commencing with the 1985-86 school year, all persons eligible to receive conditional warrants for loan assumptions pursuant to this article shall be persons who need to complete training or coursework in order to be fully credentialed to teach in a designated subject matter shortage area, or in schools serving a large population of students from low-income families and within these categories, commencing with the 2000-01 school year, those persons who agree to teach in schools serving rural areas, or commencing with the 2000-01 school year, in schools with a high percentage of teachers holding emergency permits. SEC. 3. Section 69613 of the Education Code is amended to read: 69613. (a) Any person enrolled in an institution of postsecondary education participating in the loan assumption program set forth in this article, or any person who agrees to participate in a teacher trainee or teacher internship program, may be eligible to receive a conditional warrant for loan assumption, to be redeemed pursuant to Section 69613.2 upon becoming employed as a teacher. In order to be eligible to receive a loan assumption warrant, an applicant shall satisfy all of the conditions specified in either subdivision (b) or (c). (b) (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 a participating institution, 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 in, at least 10 semester units, or the equivalent. The applicant shall agree to maintain not less than 10 semester units per semester, or the equivalent, and to maintain satisfactory academic progress. (3) The applicant has been judged by his or her postsecondary institution 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. (4) In order to meet the costs associated with obtaining a baccalaureate degree or a California teaching credential, the applicant has received, or is approved to receive, a loan under one or more of the following designated loan programs: (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.). (B) Any loan program approved by the Student Aid Commission. (5) The applicant has agreed to teach in a public school in this state for at least four consecutive academic years after obtaining a teaching credential. (c) (1) The applicant holds a baccalaureate degree and agrees to participate in a teacher trainee program or teacher internship program, or is a person who will continue to be employed full time in a field other than teaching while completing the necessary coursework for a teaching credential, or is a noncredentialed teaching paraprofessional, as described in Section 44323, who will continue to serve as a teaching paraprofessional while completing the necessary coursework for a California teaching credential. (2) (A) The applicant is enrolled in, or has been admitted to, a participating institution and agrees to maintain satisfactory academic progress in an academic program leading to a baccalaureate degree or in a program of professional preparation that has been approved by the Commission on Teacher Credentialing, and the applicant satisfies the conditions specified in paragraphs (3), (4), and (5) of subdivision (b). (B) No applicant who has completed fewer than 60 units, or the equivalent, shall be eligible under this subdivision to participate in the loan assumption program set forth in this article. (d) Sixty percent of the warrants distributed each year pursuant to subdivisions (b) and (c) at each participating institution shall be awarded by that institution to applicants who agree to obtain a teaching credential in subject areas that are designated as current or projected shortage areas by the Superintendent of Public Instruction. The warrant shall remain valid even if the subject area ceases to be a designated shortage field by the time the applicant becomes a teacher. (e) The remaining 40 percent of the warrants distributed each year pursuant to subdivisions (b) and (c) at each participating institution shall be awarded to applicants who agree to obtain teaching credentials in any subject area and to provide classroom instruction in schools that serve large populations of students from low-income families, as designated by the superintendent for purposes of the Perkins Loan Program or otherwise. The warrant shall remain valid even if the school ceases to be so designated during the applicant's second, third, or fourth year of teaching. (f) Notwithstanding the percentages set forth in subdivisions (d) and (e), commencing with the 2000-01 school year, and every year thereafter, the number of warrants issued to applicants who agree to teach in schools with a high percentage of teachers holding emergency permits shall be determined and funded by the Legislature in the annual Budget Act. (g) A person participating in the program pursuant to this section shall not receive more than one warrant. (h) The Student Aid Commission shall adopt rules and regulations regarding the reallocation of warrants where a participating institution is unable to utilize its allocated warrants or is unable to distribute them proportionately to subdivisions (d) and (e) within a reasonable period of time. SEC. 3.5. Section 69613 of the Education Code is amended to read: 69613. (a) Any person enrolled in an institution of postsecondary education participating in the loan assumption program set forth in this article, or any person who agrees to participate in a teacher trainee or teacher internship program, may be eligible to receive a conditional warrant for loan assumption, to be redeemed pursuant to Section 69613.2 upon becoming employed as a teacher. In order to be eligible to receive a loan assumption warrant, an applicant shall satisfy all of the conditions specified in either subdivision (b) or (c). (b) (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 a participating institution, 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 in, at least 10 semester units, or the equivalent. The applicant shall agree to maintain not less than 10 semester units per semester, or the equivalent, and to maintain satisfactory academic progress. (3) The applicant has been judged by his or her postsecondary institution 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. (4) In order to meet the costs associated with obtaining a baccalaureate degree, or a California teaching credential, the applicant has received, or is approved to receive, a loan under one or more of the following designated loan programs: (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.). (B) Any loan program approved by the Student Aid Commission. (5) The applicant has agreed to teach in a public school in this state for at least four consecutive academic years after obtaining a teaching credential. (c) (1) The applicant holds a baccalaureate degree and agrees to participate in a teacher trainee program or teacher internship program, or is a person who will continue to be employed full time in a field other than teaching while completing the necessary coursework for a teaching credential, or is a noncredentialed teaching paraprofessional, as described in Section 44323, who will continue to serve as a teaching paraprofessional while completing the necessary coursework for a California teaching credential. (2) (A) The applicant is enrolled in, or has been admitted to, a participating institution and agrees to maintain satisfactory academic progress in an academic program leading to a baccalaureate degree or in a program of professional preparation that has been approved by the Commission on Teacher Credentialing, and the applicant satisfies the conditions specified in paragraphs (3), (4), and (5) of subdivision (b). (B) No applicant who has completed fewer than 60 units, or the equivalent, shall be eligible under this subdivision to participate in the loan assumption program set forth in this article. (d) Sixty percent of the warrants distributed each year pursuant to subdivisions (b) and (c) at each participating institution shall be awarded by that institution to applicants who agree to obtain a teaching credential in subject areas that are designated as current or projected shortage areas by the Superintendent of Public Instruction. The warrant shall remain valid even if the subject area ceases to be a designated shortage field by the time the applicant becomes a teacher. (e) The remaining 40 percent of the warrants distributed each year pursuant to subdivisions (b) and (c) at each participating institution shall be awarded to applicants who agree to obtain teaching credentials in any subject area and to provide classroom instruction in schools that serve large populations of students from low-income families, as designated by the superintendent for purposes of the Perkins Loan Program or otherwise. The warrant shall remain valid even if the school ceases to be so designated during the applicant's second, third, or fourth year of teaching. (f) (1) Within the percentages set forth in subdivisions (d) and (e), commencing with the 2000-01 school year, and every year thereafter, a proportional number of warrants shall be issued to applicants who agree to provide classroom instruction in a school serving a rural area. (2) Notwithstanding the percentages set forth in subdivisions (d) and (e), commencing with the 2000-01 school year, and every year thereafter, the number of warrants issued to applicants who agree to teach in schools with a high percentage of teachers holding emergency permits shall be determined and funded by the Legislature in the annual Budget Act. (g) A person participating in the program pursuant to this section shall not receive more than one warrant. (h) The Student Aid Commission shall adopt rules and regulations regarding the reallocation of warrants where a participating institution is unable to utilize its allocated warrants or is unable to distribute them proportionately to subdivisions (d) and (e) within a reasonable period of time. SEC. 4. Section 69613.1 of the Education Code is amended to read: 69613.1. The Superintendent of Public Instruction shall furnish the Student Aid Commission with all of the following: (a) Commencing January 1, 1990, and every January 1 thereafter, 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. (b) A list of schools that serve a large population of students from low-income families, as designated for purposes of the Perkins Loan Program, or according to other standards the superintendent deems appropriate. (c) Commencing January 31, 2000, and every January 1, thereafter, a list of schools with a high percentage of teachers holding emergency permits. The list shall be established according to criteria determined by the Superintendent of Public Instruction. SEC. 4.5. Section 69613.1 of the Education Code is amended to read: 69613.1. The Superintendent of Public Instruction shall furnish the Student Aid Commission with all of the following: (a) Commencing January 1, 1990, and every January 1 thereafter, 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. (b) A list of schools that serve a large population of students from low-income families, as designated for purposes of the Perkins Loan Program, or according to other standards the superintendent deems appropriate. (c) (1) Commencing January 31, 2000, and every January 1, thereafter, a list of schools with a high percentage of teachers holding emergency permits. The list shall be established according to criteria determined by the Superintendent of Public Instruction. (2) Commencing January 31, 2000, and every January 1, thereafter, a list of schools serving rural areas. The list shall be established according to standards deemed appropriate by the Superintendent of Public Instruction. SEC. 5. 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 warrants awarded. (b) The number of warrants allocated each to juniors, seniors, students enrolled in teacher training programs, and persons who agree to enroll in teacher trainee programs or teacher internship programs. (c) The proportion of warrants awarded to applicants who pursue a credential in a subject matter shortage area. (d) The proportion of warrants awarded to applicants who agree to teach in schools with a high ratio of students from low-income families. (e) The number of warrants awarded to applicants who agree to teach in schools with a high percentage of teachers holding emergency permits. (f) The number of warrants that are redeemed by the initial recipients. SEC. 5.5. 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 warrants awarded. (b) The number of warrants allocated each to juniors, seniors, students enrolled in teacher training programs, and persons who agree to enroll in teacher trainee programs or teacher internship programs. (c) The proportion of warrants awarded to applicants who pursue a credential in a subject matter shortage area. (d) The proportion of warrants awarded to applicants who agree to teach in schools with a high ratio of students from low-income families. (e) (1) The number of warrants awarded to applicants who agree to teach in schools serving rural areas. (2) The number of warrants awarded to applicants who agree to teach in schools with a high percentage of teachers holding emergency permits. (f) The number of warrants that are redeemed by the initial recipients. SEC. 6. Section 69615.6 of the Education Code, as amended by Chapter 72 of the Statutes of 1999, is amended to read: 69615.6. (a) Beginning no later than the 1986-87 school year, and each school year thereafter up to and including the 1997-98 school year, the commission shall issue warrants for the assumption of up to 500 student loans for program participants eligible under this article. (b) For the 1998-99 school year, the commission shall issue warrants for the assumption of up to 4,500 student loans for program participants eligible under this article. (c) For the 1999-2000 school year, the commission shall issue warrants for the assumption of up to 5,500 student loans for program participants eligible under this article. (d) Commencing with the 2000-01 school year, and each school year thereafter, the following shall apply: (1) The commission shall issue warrants for the assumption of up to 5,500 student loans for program participants eligible under this article. (2) Notwithstanding the limitation of 5,500 warrants set forth in paragraph (1), the commission shall issue warrants, in a quantity determined by the Legislature in the annual Budget Act, for the assumption of student loans for applicants who agree to teach in schools with a high percentage of teachers holding emergency permits. Priority shall be given to applicants who are recipients of federally subsidized loans or other need-based loans as determined by the commission. (3) Up to 100 of the 5,500 warrants issued pursuant to this subdivision, shall be issued for the assumption of student loans for applicants who agree to teach in school districts serving rural areas. (e) The commission may recommend an annual limit under subdivision (d) that is higher than 5,500 and submit that recommendation to the Legislative Analyst for review and comment. It is the intent of the Legislature that the amount appropriated for purposes of this section in the Budget Act reflect consideration of the information provided by the commission and the Legislative Analyst under this subdivision. (f) The issuance of warrants shall be subject to funding to be provided in the Budget Act for each fiscal year. SEC. 6.5. Section 69615.6 of the Education Code, as amended by Chapter 72 of the Statutes of 1999, is amended to read: 69615.6. (a) Beginning no later than the 1986-87 school year, and each school year thereafter up to and including the 1997-98 school year, the commission shall issue warrants for the assumption of up to 500 student loans for program participants eligible under this article. (b) For the 1998-99 school year, the commission shall issue warrants for the assumption of up to 4,500 student loans for program participants eligible under this article. (c) For the 1999-2000 school year the commission shall issue warrants for the assumption of up to 5,500 student loans for program participants eligible under this article. (d) Commencing with the 2000-01 school year, and each school year thereafter, the following shall apply: (1) The commission shall issue warrants for the assumption of up to 5,500 student loans for program participants eligible under this article. (2) (A) Notwithstanding the limitation of 5,500 warrants set forth in subdivision (c), the commission shall issue warrants in a quantity determined by the Legislature in the annual Budget Act for the assumption of student loans for applicants who agree to teach in schools in rural areas. Priority for the issuance of the warrants shall be given to applicants who are recipients of federally subsidized loans or other need-based loans, as determined by the commission. (B) Notwithstanding the limitation of 5,500 warrants set forth in subdivision (c), the commission shall issue warrants in a quantity determined by the Legislature in the annual Budget Act for the assumption of student loans for applicants who agree to teach in schools with a high percentage of teachers holding emergency permits. Priority for the issuance of the warrants shall be given to applicants who are recipients of federally subsidized loans or other need-based loans, as determined by the commission. (3) Up to 100 of the 5,500 warrants issued pursuant to this subdivision shall be issued for the assumption of student loans for applicants who agree to teach in school districts serving rural areas. (e) The commission may recommend an annual limit under subdivision (d) that is higher than 5,500 and submit that recommendation to the Legislative Analyst for review and comment. It is the intent of the Legislature that the amount appropriated for purposes of this section in the Budget Act reflect consideration of the information provided by the commission and the Legislative Analyst under this subdivision. (f) The issuance of warrants shall be subject to funding to be provided in the Budget Act for each fiscal year. SEC. 7. Section 1.5 of this bill incorporates amendments to Section 69612 of the Education Code proposed by both this bill and AB 31. It shall only become operative if (1) both bills are enacted and become effective on January 1, 2000, (2) each bill amends Section 69612 of the Education Code, and (3) this bill is enacted after AB 31, in which case Section 1 of this bill shall not become operative. SEC. 8. Section 2.5 of this bill incorporates amendments to Section 69612.5 of the Education Code, proposed by both this bill and AB 31. It shall only become operative if (1) both bills are enacted and become effective on January 1, 2000, (2) each bill amends Section 69612.5 of the Education Code, and (3) this bill is enacted after AB 31, in which case Section 2 of this bill shall not become operative. SEC. 9. Section 3.5 of this bill incorporates amendments to Section 69613 of the Education Code proposed by both this bill and AB 31. It shall only become operative if (1) both bills are enacted and become effective on January 1, 2000, (2) each bill amends Section 69613 of the Education Code, and (3) this bill is enacted after AB 31, in which case Section 3 of this bill shall not become operative. SEC. 10. Section 4.5 of this bill incorporates amendments to Section 69613.1 of the Education Code, proposed by both this bill and AB 31. It shall only become operative if (1) both bills are enacted and become effective on January 1, 2000, (2) each bill amends Section 69613.1 of the Education Code, and (3) this bill is enacted after AB 31, in which case Section 4 of this bill shall not become operative. SEC. 11. Section 5.5 of this bill incorporates amendments to Section 69615.4 of the Education Code proposed by both this bill and AB 31. It shall only become operative if (1) both bills are enacted and become effective on January 1, 2000, (2) each bill amends Section 69615.4 of the Education Code, and (3) this bill is enacted after AB 31, in which case Section 5 of this bill shall not become operative. SEC. 12. Section 6.5 of this bill incorporates amendments to Section 69615.6 of the Education Code, as amended by Chapter 72 of the Statutes of 1999, proposed by both this bill and AB 31. It shall only become operative if (1) both bills are enacted and become effective on January 1, 2000, (2) each bill amends Section 69615.6 of the Education Code, and (3) this bill is enacted after AB 31, in which case Section 6 of this bill shall not become operative.