BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 684 (Medina) - General Education Development Test Preparation
          
          Amended: August 12, 2013        Policy Vote: Education 9-0
          Urgency: No                     Mandate: No
          Hearing Date: August 12, 2013                                
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: AB 684 adds an uncodified section of law to  
          authorize the California Workforce Investment Board (CWIB) to  
          provide grants, from state and federal funds available for this  
          purpose, to accredited institutions that provide instruction to  
          persons who are preparing for the general educational  
          development test. 

          Fiscal Impact: This bill creates significant cost pressure for  
          the CWIB to provide grants to general educational development  
          test takers, to develop a program for doing so, and to adopt  
          regulations to implement the grant program. Developing the  
          program and adopting regulations would likely cost the CWIB in  
          excess of $100,000. The primary costs would be to fund the  
          actual grants, and that would be determined by the CWIB.

          Background: Existing law requires the CWIB to assist the  
          Governor in the development, oversight, and continuous  
          improvement of California's workforce investment system  
          (Unemployment Insurance Code � 14010). 

          Existing law provides that the CWIB, in collaboration with state  
          and local partners, shall develop a strategic workforce plan to  
          serve as a framework for the development of public policy,  
          fiscal investment, workforce education, and training programs to  
          address the state's economic, demographic, and workforce needs.  
          The plan is required to be updated at least every 5 years.  
          (Unemployment Insurance Code � 14020)

          The CWIB is also required to participate in the development of  
          request for proposal language and the evaluation of proposals  
          for determining grant allocations of the funds. 
          (Unemployment Insurance Code � 14022)








          AB 684 (Medina)
          Page 1



          Existing law 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 (Education Code � 51420).

          Proposed Law: AB 684 authorizes the CWIB to provide grants, from  
          state and federal funds that are available to the CWIB for this  
          purpose, to accredited institutions that provide instruction to  
          persons who are preparing for the general educational  
          development test and that apply to the CWIB to receive grants  
          pursuant to this section. This bill provides that if the CWIB  
          identifies funds available for grants, it shall develop and  
          adopt regulations and procedures for the process of receiving  
          and evaluating applications for grants under this section. This  
          bill makes legislative findings and declarations.
          
          Staff Comments: Enacting an uncodified section of law that  
          permits the CWIB to provide grants to institutions that offer  
          general educational development test preparation instruction  
          will not necessarily result in state costs, because the bill is  
          both permissive and lacks force of law. The intention of the  
          bill, as described in the legislative intent, however, is for  
          the CWIB to actually develop a program to issue the grants to  
          those institutions. The program described in this bill would  
          involve the CWIB setting up a competitive grant system, and  
          granting an unspecified amount of state and federal funds to  
          "accredited institutions" that provide instruction to persons  
          who are preparing for the general educational development test  
          and that apply to the CWIB to receive grants pursuant to this  
          section. Upfront costs would likely exceed $100,000 for program  
          development. The CWIB would determine grant funding levels, and  
          where the funding would be diverted from.