BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1476|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1476
Author: Assembly Budget Committee
Amended: 8/24/12 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 10-4, 8/23/12
AYES: Leno, Alquist, DeSaulnier, Hancock, Liu, Lowenthal,
Negrete McLeod, Simitian, Wolk, Wright
NOES: Emmerson, Fuller, Gaines, La Malfa
NO VOTE RECORDED: Anderson, Evans
ASSEMBLY FLOOR : Not relevant
SUBJECT : 2012-13 Budget Trailer Bill: Education
SOURCE : Author
DIGEST : This bill makes various changes to state laws
regarding K-12 and higher education, including financial
aid programs, necessary for the implementation of the
Budget Act of 2012.
Senate Floor Amendments of 8/24/12 make changes in the
following education areas: (1) charter schools, (2) the
Quality Education Investment Act, (3) Behavior Intervention
Plan mandate, (4) Cal-Grant Program, and (5) the
Scholarshare Trust Fund.
Senate Floor Amendments of 8/22/12 delete the prior version
of the bill concerning Education budget items and replace
CONTINUED
AB 1476
Page
2
it with new Education items to reflect the follow-up
agreement to the Budget enacted in June.
ANALYSIS : This bill makes the following statutory
revisions affecting K-12 and higher education, including
postsecondary financial aid, as part of the 2012-13 Budget,
as follows:
1. K-12 Education
A. Technical Revisions to Proposition 98
Reappropriations . Amends the Budget Act of 2011 to
correct scoring that is a part of a Proposition 98
funding swap for special education utilized to
achieve one-time budget savings in 2011-12.
B. Technical Correction to Quality Education
Investment Act (QEIA) Appropriation . Corrects the
appropriations for the QEIA program in 2013-14 to
reflect amounts agreed to as a part of the 2012-13
Budget.
C. Technical Clean-Up Affecting Financing of Working
Capital for Charter Schools . Makes changes to
existing statute to ensure that intercept payments
relating to facilities working capital financing/
bond issuances under the California School Financing
Authority for districts, counties, and charter
schools include funds dispersed pursuant to the
Education Protection Account should the tax
initiative pass. This language is needed to
implement charter school facilities working capital
refinancing options enacted as a part of the 2012-13
Budget.
D. Technical Update for Education Mandates Funding .
Adds five, small mandates to the K-12 education
mandate block grant established by the 2012-13
Budget. These very small mandates were inadvertently
left off the mandates block grant list.
The August 24, 2012 amendments correct a fiscal
year cross reference in Section 3 of the August 22,
2012 amendments, which currently correct the 2013-14
CONTINUED
AB 1476
Page
3
QEIA appropriations.
E. Modification of Behavior Intervention Plan Mandate
to Eliminate Unnecessary Costs . Makes statutory
changes regarding positive behavior interventions for
students with disabilities in order to maintain
protections for students contained in federal law and
specific state regulations, and to reduce state
mandate costs. More specifically, the amendments
clarify state law in order to conform to federal law
governing the use of positive behavior interventions
for students with disabilities whose behavior
interferes with his or her learning or that of
others. The amendments repeal existing regulations
found to be mandated activities while also codifying
provisions of these current state regulations that
both prohibit behavior interventions that are harmful
to students, and continue emergency interventions and
emergency reports. In addition, the amendments also
appropriate one-time federal carryover funds to the
Department of Education to develop procedures and
provide technical assistance to school districts
about the use of positive behavior interventions.
The August 24, 2012 amendments made a technical
revision to specifically reference the actual
subsections of Section 3001, of Title 5 of the
California Code of Regulation (CCR). The August 22,
2012 amendments referenced the "applicable
provisions" of this section of the CCR and more
generally made statutory changes regarding positive
behavior interventions for students with disabilities
in order to maintain protections for students
contained in federal law and specific state
regulations, and to reduce state mandate costs.
2. Higher Education
A. 2012-13 Enrollment Target for the University of
California (UC) . Reinstates the expectation that the
UC will enroll a total of 209,977 state-supported
full-time equivalent students during the 2012-13
academic year. This target was included in the
Budget Act of 2012 but was subsequently vetoed by the
CONTINUED
AB 1476
Page
4
Governor. As a condition of receipt of state GF in
2012-13, requires the UC to report to the Legislature
by May 1, 2013, on whether it has met the enrollment
goal.
B. UC Merced Academic Building: Design Phase
Funding . Appropriates $4.75 million in 2006 General
Obligation bond funds for the costs of preliminary
plans and working drawings for a new Classroom and
Academic Office Building at UC Merced. Includes
budget bill provisional language, which has been
included in the past several budgets on GO-bond
funded UC capital outlay projects, to authorize
expenditure of any savings as specified and require
payment of prevailing wage rates.
C. Cal Grant Program: Institutional Eligibility .
Clarifies existing law, adopted as part of the 2011
Budget Act, that an institution that is ineligible to
participate in the Cal Grant program shall regain its
eligibility in the academic year for which it
satisfies the eligibility requirements. Under
existing law, federally reported cohort default rate
(CDR) and graduation rate data is certified by the
California Student Aid Commission (CSAC) in October
of each year. That data becomes the basis for
program eligibility in the following academic year.
Current law also specifies that an institution must
have a CDR under 15.5% and a graduation rate greater
than 30% to be eligible for the program. This
amendment clarifies that an institution that is
ineligible in the 2012-13 academic year shall regain
its eligibility in the 2013-14 academic year if it
satisfies the eligibility tests based on the fall
2012 data. CSAC has interpreted existing law to read
as a two-year exclusion from the program.
The August 24, 2012 amendments make two minor
technical clarifications to the August 22, 2012
amendments to provide further clarity that an
institution that is ineligible to participate in the
Cal Grant program shall regain its eligibility for
the academic year for which it satisfies the
eligibility requirements. Under existing law,
CONTINUED
AB 1476
Page
5
federally reported cohort default rate (CDR) and
graduation rate data is certified by CSAC in October
of each year. That data becomes the basis for
program eligibility in the following academic year.
D. Scholarshare Trust Fund . With respect to the
Scholarshare Trust Fund, the amendments:
(1) Make certain technical changes to provisions
of the budget act that provided that certain
moneys in the golden State Scholarshare Trust Fund
that are not needed for purposes of the Governor's
Scholarship Programs be transferred to the General
Fund.
(2) Provide for an appropriation of $5 million
from additional funds remaining in the trust fund
to the Chancellor of the California State
University to fund the establishment and
maintenance of the California Open Education
Resources Council and the California Digital Open
Sources Library, and the development or
acquisition of open education resources. Allow
the Chancellor to reimburse California community
colleges and the University of California for any
of their costs associated with these activities.
Moneys appropriated would be required to be
matched 100% by private funds prior to being
encumbered.
E. Technical Correction to Citation for Student
Records Mandate . Adds the remaining statutory
references to the Student Records mandate that were
inadvertently omitted from the August 22, 2012
amendments to AB 1476. The August 22, 2012
amendments added the Student Records mandate to the
mandate block grant, originally adopted in the Budget
Act of 2012.
F. Regulatory Action Related to Repeal of the State
AB 3632 Mandate Program . The Budget Act of 2011
eliminated the state AB 3632 mandate program, which
required counties to provide mental health services
to students with disabilities, and shifted
CONTINUED
AB 1476
Page
6
responsibility for providing federally required
educationally related mental health services back to
K-12 school districts. This amendment adds
uncodified language to require the appropriate state
agencies and departments to repeal regulations
related to mental health services provided by county
mental health agencies as these regulations are no
longer supported by statute. This amendment will
provide a needed signal to the Office of
Administrative Law to allow these agencies to utilize
a more expedited repeal process.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
PQ:m 8/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED