BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 684
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          Date of Hearing:   April 9, 2013

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                    AB 684 (Medina) - As Amended:  March 21, 2013
           
          SUBJECT  :   Workforce training: General Educational Development  
          (GED) test preparation: grants.

           SUMMARY  :   Authorizes the California Workforce Investment Board  
          (Board) to provide grants from available state and federal funds  
          to accredited institutions that provide instruction to persons  
          who are preparing for the GED test and that apply to the Board  
          to receive grants.  Specifically,  this bill  :  

          1)Declares that the Legislature believes it is important to  
            increase the number of Californians who obtain a marketable  
            and industry-recognized credential or degree; recognizes that  
            it is important to advance the education and training of  
            California students and workers so that they can keep pace  
            with the education and skill needs of the state, its regional  
            economies, and leading industry sectors; and expresses the  
            intent of the Legislature to provide funding to institutions  
            that offer instruction to persons who are preparing for the  
            GED test so that more Californians may pass the GED test and  
            become eligible to receive financial aid when they matriculate  
            to a postsecondary institution for a degree or vocational  
            training certificate.

          2)Authorizes the Board to provide grants from state and federal  
            funds that are available to the Board for the purpose of  
            workforce training, to accredited institutions that provide  
            instruction to individuals that are preparing for the GED test  
            and apply to the Board for a grant.

          3)Requires the Board to develop and adopt regulations and  
            procedures for the process of receiving and evaluating  
            applications for grants from accredited institutions offering  
            GED training.

           EXISTING LAW  :  

          1)Provides for a variety of student financial aid programs  
            including the Cal Grant programs, the CCC Board of Governors  
            (BOG) fee waiver, a variety of systemwide and/or  








                                                                  AB 684
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            campus-specific grant and/or loan programs, and other  
            state-administered financial aid programs.  Participation in  
            these programs is, among other criteria, typically needs-based  
            and limited to California residents (Education Code [EC] �  
            69433).

          2)Requires the State Superintendent of Public Instruction to  
            issue a California high school equivalency certificate to any  
            person who has not completed high school and who meets a  
            variety of requirements, including successfully passing the  
            GED (EC � 51420).

          3)Requires the California Workforce Investment Board to assist  
            the Governor in the development, oversight, and the continuous  
            improvement of California's workforce investment system  
            (Unemployment Insurance Code � 14010).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background  .  According to two recent Public Policy  
          Institute of California (PPIC) reports, by the year 2025, demand  
          for college-educated workers will outstrip the supply.   
          Researchers estimate that California will need an additional 1  
          million to 3.5 million workers with some postsecondary education  
          training.  However, the most recent statistics from the US  
          Census Bureau indicate that approximately 19% of California  
          persons do not hold a high school diploma or a GED, ranking  
          California 45th in the nation in high school completion,  
          according to a recent study by the National Center for Education  
          Statistics.   

          In the past, students without a high-school diploma or GED could  
          apply for federal financial aid through the Ability to Benefit  
          (ATB) test; however, this option was eliminated last year,  
          affecting the ability of students to enroll in programs to  
          complete their high school education.
           
          Need for the bill  .  According to the author, the elimination of  
          the ATB test reduced the opportunity for California's low-income  
          persons without a high school diploma or GED to access federal  
          financial aid.  This includes the loss of eligibility for Pell  
          Grants and other financial aid to non-high school graduates  
          interested in enrolling and preparing to take the GED test in an  
          accredited post-secondary training center on or after July 1,  
          2012.  








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          According to the author, California will receive an estimated  
          $454 million from the federal government this year in order to  
          provide services for adults, unemployed workers and youth.  
          Allocation of state Workforce Investment Act funds for adults  
          pursuing a GED while attending accredited training education  
          centers will facilitate in the ability of low-income individuals  
          having the ability to receive their GED, enabling them to  
          qualify for Pell Grants and other forms of federal financial  
          aid.

           The Workforce Investment Act of 1998 (Public Law 105-220)  .  The  
          California Workforce Investment Act established the workforce  
          investment boards in every state to provide a comprehensive  
          range of workforce development activities through statewide and  
          local organizations.  These activities, provided in local  
          communities, can benefit the unemployed of all ages, veterans,  
          persons with disabilities and employers.  

           Accredited training centers  .  According to the Western  
          Association of Schools and Colleges (WASC) Accrediting  
          Commission for Schools, there are 197 WASC-accredited training  
          centers.  These centers are relatively equally disbursed in all  
          regions throughout the state.   

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960