Amended in Senate June 12, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1465

Introduced by Committee on Budget (Skinner (Chair), Bloom, Campos, Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin, Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

January 9, 2014

begin delete An act relating to the Budget Act of 2014. end delete begin insert An act to amend Sections 69432, 69432.7, 69433.6, 70022, 70023, 79200, 81821, 84321.6, 84750.5, 84751, 87482, 89295, 92493, 92494, 92495, 92495.5, and 92675 of, to amend the heading of Article 5 (commencing with Section 79200) of Chapter 9 of Part 48 of Division 7 of Title 3 of, to add Sections 79204, 79205, 79206, 79207, 79208, 79209, 84750.6, 84754.6, 89712, 90083, 92495.6, and 94102.1 to, to add Article 1.5 (commencing with Section 78220) to Chapter 2 of Part 48 of Division 7 of Title 3 of, to add Article 5 (commencing with Section 89770) to Chapter 6 of Part 55 of Division 8 of Title 3 of, and to add Chapter 15 (commencing with Section 92985) to Part 57 of Division 9 of Title 3 of, the Education Code, to amend Sections 17581.7 and 68926.3 of the Government Code, to amend Section 13146 of the Health and Safety Code, and to amend Sections 10726 and 10742 of the Public Contract Code, relating to postsecondary education, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1465, as amended, Committee on Budget. begin delete Budget Act of 2014. end delete begin insert Education finance: education omnibus trailer bill. end insert

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(1) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program), establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law provides that a qualifying institution with a graduation rate of 30% or less for students taking 150% or less of the expected time to complete degree requirements is ineligible for initial and renewal Cal Grant awards, unless the institution has a 3-year cohort default rate that is less than 10% and a graduation rate above 20% for students taking 150% or less of the expected time to complete degree requirements. Existing law sets the maximum Cal Grant A and B awards for new recipients attending private nonprofit postsecondary education institutions at $8,056 for the 2014-15 award year and each award year thereafter.

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This bill would specify eligibility criteria that, commencing with the 2014-15 academic year, would apply to Cal Grant award recipients who were determined to be ineligible for a renewal award because they exceeded the maximum household income or asset level, or failed to meet the minimum need threshold, as specified, but who subsequently meet eligibility requirements for a Cal Grant award. The bill would also increase from 10% to 15.5% the maximum allowable 3-year cohort default rate for an institution with a 20% to 30% graduation rate for students taking no more than 150% of the expected time to complete degree requirements to be eligible for Cal Grant awards. The bill would increase the maximum Cal Grant A and B awards for new recipients attending a private nonprofit postsecondary institution, for the 2014-15 award year only, to $9,084.

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(2) Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education. Existing law establishes the Middle Class Scholarship Program under the administration of the Student Aid Commission. The program provides that, subject to an available and sufficient appropriation, commencing with the 2014-15 academic year, an undergraduate student enrolled at the University of California or the California State University is eligible for a scholarship award that, combined with other publicly funded student financial aid, is up to 40% of the amount charged to that student for mandatory systemwide tuition in that fiscal year if the student meets the following conditions: has an annual household income that does not exceed $150,000; satisfies specified requirements for a Cal Grant award; is a resident of this state or exempt from paying nonresident tuition; files specified financial aid forms; makes timely application or applications for publicly funded student financial aid, as defined, for which he or she is eligible; and maintains at least a 2.0 grade point average.

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This bill would, among other things, specify that the scholarship award under the Middle Class Scholarship Program, combined with other federal, state, and institutionally administered grants and fee waivers, would be for up to 40% of the systemwide tuition and fees. The bill would require a recipient to be enrolled at least part-time, and would require the recipient to be pursuing his or her first undergraduate baccalaureate degree, unless he or she is enrolled in a specified professional teacher preparation program. The bill would also provide that minimum scholarship amount for any full-time student who qualifies for a scholarship award of $1 is $90, and would prohibit discrimination against part-time students in the selection of award recipients.

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(3) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state. Existing law requires the governing board of each community college district to prepare and submit to the Board of Governors of the California Community Colleges a plan for capital construction for community college purposes of the district, as specified. Existing law requires a 5-year plan for capital construction to set out the estimated capital construction needs of the district with reference to specified elements, including enrollment projections for each community college district, formulated by the Department of Finance with the cooperation of each community college district.

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This bill would make reference to certain of these specified elements optional, requiring reference only to elements relating to the current enrollment capacity of the district and the district office, library, and supporting facility capacities. The bill would also provide that enrollment projections, if used, would instead be formulated with the cooperation of the Chancellor of the California Community Colleges.

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(4) Existing law requires the Board of Governors of the California Community Colleges to adopt regulations providing for the payment of apportionments to community college districts on a specified schedule that includes a first principal apportionment to be certified on or before February 20 of each year, and a 2nd principal apportionment to be certified on or before June 25 of each year. Existing law defers the drawing of those warrants, as specified. Existing law appropriates $592,456,000 from the General Fund to the board of governors, for expenditure during the 2014-15 fiscal year, in satisfaction of specified moneys whose payment to the California Community Colleges has been deferred.

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This bill would, for purposes of calculations required by the California Constitution, instead provide that $138,602,000, $296,354,000, and $157,500,000 of the $592,456,000 appropriated to the Board of Governors of the California Community Colleges for the 2014-15 fiscal year in satisfaction of deferred payments shall be deemed General Fund revenues and included in the total allocations to school districts and community college districts for the 2012-13, 2013-14, and 2014-15 fiscal years, respectively, as specified. This bill would also provide for the deferral of $94,465,000 from June 2015 to July 2015, and would appropriate money in July 2015 to pay for that deferred amount, which would be deemed General Fund revenues and included in the total allocations to school districts and community college districts for the 2015-16 fiscal year.

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(5) Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program under which each county provides cash assistance and other benefits to qualified low-income families and individuals. Existing law requires that, to the extent that funding is provided in the annual Budget Act, a community college shall receive funding for educational services provided to CalWORKs recipients based on the number of CalWORKs recipients that are enrolled at the community college and the scope and number of programs that the college plans to offer to assist CalWORKs recipients to obtain employment. Existing law also requires that, prior to receiving funding, a community college shall submit to the chancellor a Request for Application that contains a plan for curriculum development or redesign, including participation by the county welfare department to establish that the programs being developed or redesigned will provide CalWORKs recipients with the training and experience necessary to secure employment. Existing law also provides that, to the extent that funding is provided in the annual Budget Act, funds received by a community college for curriculum development or redesign for CalWORKs recipients may be expended for various purposes, including the development or redesign of vocational curricula for CalWORKs recipients so that courses may be offered as part of a short-term intensive program, including Open Entry and Open Exit programs.

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This bill would state that a community college district shall receive funding for providing specified additional services to current and, under certain condition, certain prior CalWORKs recipients, including job placement, coordination with county welfare offices and other local agencies, child care and workstudy, instruction, postemployment skills training and related skills training, and case management, as specified. The bill would require the Chancellor of the California Community Colleges to develop an equitable method for allocating funds under these provisions to all community college districts, and to compile a report on the program annually from specified information required to be provided by the community college districts and colleges. By requiring certain actions by community college districts, this bill would impose a state-mandated local program.

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(6) Existing law provides, in calculating each community college district’s revenue level each fiscal year, that the Board of Governors of the California Community Colleges shall subtract, from the total revenues owed, certain amounts, including certain amounts received by certain provisions of existing law relating to redevelopment that, for purposes of community college revenue levels, are considered to be from property tax revenues.

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This bill would, notwithstanding the required reduction, provide that specified revenues received after April 15, 2014, April 15, 2015, and April 15, 2016, shall be counted as revenues received in the 2014-15, 2015-16, and 2016-17 fiscal years, respectively.

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(7) Existing law requires the Board of Governors of the California Community Colleges to develop criteria and standards, in accordance with specified statewide minimum requirements, for the purposes of making the annual budget request for the California Community Colleges to the Governor and the Legislature, and allocating state general apportionment revenues. Those statewide minimum requirements include, among other things, a requirement that the calculations of each community college district’s revenue level for each fiscal year be based on specified criteria, with revenue adjustments being made for increases or decreases in full-time equivalent students and for other specified purposes.

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This bill would require the Chancellor of the California Community Colleges to develop, and the board of governors to adopt, a revised apportionment growth formula for use commencing with the 2015-16 fiscal year. The bill would provide that the revised formula shall support the primary missions of the segment, and shall be based on certain factors, as specified, and would require the chancellor, on or before October 15, 2015, and each year thereafter, to report to the Legislature on certain matters related to the revised apportionment growth formula. The bill would, notwithstanding certain apportionment related provisions for the 2014-15 and 2015-16 fiscal years, require the board of governors to provide the San Francisco Community College District with revenues, as specified, if, on the effective date of this bill, the board of governors finds that the community college district or a campus of the community college district is in imminent jeopardy of losing its accreditation, the board of governors has exercised its authority pursuant to specified provisions, and the institution is in compliance with a regulation requiring it to be accredited by a specified agency. The bill would require the board of governors to additionally provide the San Francisco Community College District with revenues for the 2016-17 fiscal year under the same conditions applicable to the 2014-15 and 2015-16 fiscal years, but only if the Fiscal Crisis Management Assistance Team makes a finding no sooner than April 1, 2016, that the San Francisco Community College District is meeting or exceeding specified fiscal benchmarks.

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This bill would, among other things, require the chancellor, in coordination with community college districts, to approve and publicly post annual segmentwide and community college district goals, and would require the chancellor, in coordination with stakeholders, specified committees of the Legislature, and the Department of Finance, to develop, and the board of governors to adopt, a framework of indicators designed to measure and assess the ongoing condition of a community college’s operational environment in specified areas. The bill would, subject to the availability of funding in the annual Budget Act, require the board of governors and the chancellor to assess the degree to which each community college district is improving, as provided.

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(8) Existing law, the Seymour-Campbell Student Success Act of 2012, provides that the purpose of the act is to increase California community college student access and success by providing effective core matriculation services of orientation, assessment and placement, counseling, and other education planning services, and academic interventions. The act specifies the responsibilities of students and institutions in entering into the matriculation process, and requires the Board of Governors of the California Community Colleges to develop a formula for allocating funding for the Student Success and Support Program that would be implemented under the act.

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This bill would require, as a condition for receiving Student Success and Support Program funding, that the governing board of each community college district maintain a student equity plan, as specified, and would require the chancellor to make an annual report related to those plans. By adding to the duties of community college districts, the bill would impose a state-mandated local program.

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(9) Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, administered by the Regents of the University of California, as 2 of the segments of public postsecondary education in the state. Existing law authorizes the California State University and the University of California to each issue revenue bonds, secured by a specified pledge of revenues. Existing law authorizes the University of California to pledge its annual General Fund support appropriation, less certain amounts, to secure the payment of its general revenue bonds or commercial paper associated with the general revenue bond program. Existing law authorizes the University of California to fund debt service for capital expenditures, as defined, from its General Fund support appropriation, as specified. Existing law also authorizes the University of California to fund pay-as-you-go capital outlay projects from its General Fund support appropriation, as specified. Existing law, for purposes of these provisions, requires the University of California to obtain approval from the Department of Finance pursuant to specified procedures.

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This bill would authorize the California State University to pledge its annual General Fund support appropriation, less certain amounts, to secure the payment of its debt obligations issued by the Trustees pursuant to the State University Revenue Bond Act of 1947. The bill would authorize the California State University to fund debt service for capital expenditures, as defined, from its General Fund support appropriation, as specified. The bill would authorize the California State University to secure bonds for capital expenditures and certain projects with revenues received in accordance with these provisions, as specified. The bill would provide that “capital expenditures” and “capital outlay projects” shall include the cost to design, construct, or equip energy conservation projects. The bill would also authorize the California State University to fund pay-as-you-go capital outlay projects from its General Fund support appropriation, as specified. The bill would, for purposes of these provisions, provide procedures for the California State University to, and would revise the procedures for the University of California to, obtain approval from the Department of Finance, as specified.

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(10) Existing law requires the California State University and the University of California to report, by March 1 of each year, on specified performance measures, including various calculations of graduation rates and amounts spent per degree, for the preceding academic year.

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This bill would revise those provisions to, among other things, extend the due date for the report to March 15, add a 4-year transfer graduation rate as a performance measure for the California State University, and limit transfer student performance measures to transfer students from the California Community Colleges.

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(11) Notwithstanding existing law that imposes greater limits on temporary employment of faculty, existing law provides that a person serving as full-time clinical nursing faculty or as part-time clinical nursing faculty may be employed by any one district for up to 4 semesters or 6 quarters within any period of 3 consecutive academic years between July 1, 2007, to June 30, 2014, inclusive.

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This bill would extend that authorization to December 31, 2015.

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(12) Existing law authorizes the trustees by rule to require all persons to pay fees, rents, deposits, and charges for services, facilities, or materials provided by the trustees to those persons. Existing law prohibits specified California State University campus-based mandatory fees from being reallocated without an affirmative vote of the majority of the members of either the student body or a specified campus fee advisory committee voting on the fee reallocation, unless the vote that established the fee authorizes an alternative or automatic reallocation mechanism for that fee.

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This bill would prohibit a campus or the Chancellor of the California State University from approving a student success fee, as defined, before January 1, 2016. This bill would require the chancellor to conduct a review of the trustees’ fee policy related to student success fees, submit recommended changes to the fee policy to the trustees, consider specified information in conducting that review and in preparing his or her recommended changes to the policy, and submit a report regarding those proposed changes to the Department of Finance and the appropriate fiscal and policy committees of the Legislature, on or before February 1, 2015.

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(13) Existing law establishes various health research grant programs, including the Cancer Research Program, the Breast Cancer Research Program, and the Spinal Cord Injury Research Program.

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This bill would enact the California Blueprint for Research to Advance Innovations in Neuroscience (Cal-BRAIN) Act of 2014, and would request the Regents of the University of California to establish the Cal-BRAIN program to leverage California’s research assets and the federal BRAIN Initiative’s funding opportunities to accelerate the development of brain mapping techniques, including the development of new technologies, in order to achieve certain goals. The bill would additionally request the University of California to convene certain stakeholders to develop a governing structure for the Cal-BRAIN program designed to do specified tasks, and to provide information about the program through an Internet Web site. These provisions would only be implemented to the extent that adequate funding is appropriated to the University of California, as specified.

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(14) Existing law, the California Educational Facilities Authority Act, authorizes the California Educational Facilities Authority to, among other things, hold or invest in student loans, create pools of student loans, and sell bonds bearing interest on a taxable or tax-exempt basis or other interests backed by the pools of student loans. Existing law, for purposes of the act, defines “student loan” as a loan having terms and conditions acceptable to the authority that is made to finance or refinance the costs of attendance at a private college or public college and that is approved by the authority, if the loan is originated pursuant to a program that is approved by the authority. Existing law establishes the Assumption Program of Loans for Education, administered by the Student Aid Commission, under which any person enrolled in a eligible institution of postsecondary education or any person who agrees to participate in a teacher trainee or teacher internship program, is eligible to enter into an agreement for loan assumption, as specified.

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This bill would, for purposes of the California Educational Facilities Authority Act, provide that “student loan” may also mean a loan assumption pursuant to the Assumption Program of Loans for Education.

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(15) Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, including a school district and a community college district, the state is required to provide a subvention of funds to reimburse the local government, with specified exceptions. Existing law makes certain funds appropriated in the annual Budget Act for reimbursement of the cost of a new program or increased level of service of an existing program mandated by statute or executive order available as a block grant to school districts, charter schools, county offices of education, and community college districts, to support specified state-mandated local programs. Existing law provides that a school district, charter school, county office of education, or community college district that submits a letter of intent to the Superintendent of Public Instruction or the Chancellor of the California Community Colleges, as appropriate, and receives this block grant funding is not eligible to submit a claim for reimbursement for those specified mandated programs for the fiscal year for which the block grant funding is received.

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This bill would revise the list of programs that are authorized for block grant funding in lieu of program-specific reimbursement.

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(16) Existing law imposes a filing fee of $605 to file a notice of appeal in a civil case. Existing law requires, until January 1, 2015, that $65 of this fee be deposited into the California State Law Library Special Account for the support of the California State Law Library.

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This bill would extend the operation of these provisions until January 1, 2020.

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(17) Existing law allocates responsibility for enforcement of building standards adopted by the State Fire Marshal and published in the California Building Standards Code relating to fire and panic safety and other regulations of the State Fire Marshal, as provided. Existing law provides that the State Fire Marshal shall enforce the building standards and other regulations of the State Fire Marshal on all University of California campuses and properties administered or occupied by the University of California, and, for each university campus or property, authorizes the State Fire Marshal to delegate that responsibility to a person of his or her choice.

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This bill would also require the State Fire Marshal to enforce the building standards and other regulations of the State Fire Marshal on all California State University campuses and properties administered or occupied by the California State University.

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(18) Existing authorizes the Trustees of the California State University to receive bids for the construction of several public works projects at one campus of the California State University as a single project. Existing law requires, when it appears that the estimated contract price will exceed $15,000, that public notice to bidders be given by publication, as specified.

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This bill would delete the one-campus restriction on taking bids for several public works as a single project. The bill would also authorize notice by publication electronically on the California State University’s Internet Web site.

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(19) Item 6870-139-8080 of the Budget Act of 2013, as added by Chapter 20 of the Statues of 2013, appropriated $47,000,000 to the Board of Governors of the California Community Colleges for local assistance, payable from the Clean Energy Job Creation Fund.

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This bill would reappropriate the balances of those amounts to the board of governors, for the same purposes, and would provide that those funds would be available for encumbrance until June 30, 2018.

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(20) This bill would require amounts to be determined by the Director of Finance to be appropriated, on or before June 30, 2015, from the General Fund to the Board of Governors of the California Community Colleges in the event that specified revenues distributed to community colleges are less than estimated amounts reflected in the Budget Act of 2014.

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(21) This bill would require amounts to be determined by the Director of Finance to be appropriated, on or before June 30, 2015, from the General Fund to the Board of Governors of the California Community Colleges in augmentation of a certain schedule of an item of the Budget Acts of 2012 and 2013, and would require these funds to only be available for revenues distributed to a net excess tax community college district, as determined by the Director of Finance.

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(22) This bill would authorize the University of California to use General Fund appropriations made pursuant to specified sections of the Education Code for the Tolman Hall Seismic Replacement Building project at the University of California, Berkeley, campus, as described.

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(23) This bill would make conforming changes, delete obsolete provisions, correct cross-references, and make other nonsubstantive changes.

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(24) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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(25) Funds appropriated by this 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.

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(26) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 69432 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

69432.  

(a) Cal Grant Program awards shall be known as “Cal
Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,”
“California Community College Transfer Entitlement Awards,”
“Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,”
and “Cal Grant T Awards.”

(b) Maximum award amounts for students at independent
institutions and for Cal Grant C and T awards shall be identified
in the annual Budget Act. Maximum award amounts for Cal Grant
A and B awards for students attending public institutions shall be
referenced in the annual Budget Act.

(c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the
maximum tuition award amounts for Cal Grant A and B awards
for students attending private for-profit and nonprofit
postsecondary educational institutions shall be as follows:

(A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.

(B) For the begin delete 2013-14 end delete begin insert 2014- end insert begin insert 15 end insert award year, nine thousand
eighty-four dollars ($9,084) for new recipients attending private
nonprofit postsecondary educational institutions. For the begin delete 2014-15 end delete
begin insert 2015- end insert begin insert 16 end insert award year and each award year thereafter, eight thousand
fifty-six dollars ($8,056) for new recipients attending private
nonprofit postsecondary educational institutions.

(2) The renewal award amount for a student whose initial award
is subject to a maximum award amount specified in this subdivision
shall be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.

(3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same
maximum tuition award amounts as are set forth in subparagraph
(B) of paragraph (1).

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begin insert SEC. 2. end insert   

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begin insert Section 69432.7 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69432.7.  

As used in this chapter, the following terms have the
following meanings:

(a) An “academic year” is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in
which it is included.

(b) “Access costs” means living expenses and expenses for
transportation, supplies, and books.

(c) “Award year” means one academic year, or the equivalent,
of attendance at a qualifying institution.

(d) “College grade point average” and “community college
grade point average” mean a grade point average calculated on the
basis of all college work completed, except for nontransferable
units and courses not counted in the computation for admission to
a California public institution of higher education that grants a
baccalaureate degree.

(e) “Commission” means the Student Aid Commission.

(f) “Enrollment status” means part- or full-time status.

(1) “Part time,” for purposes of Cal Grant eligibility, means 6
to 11 semester units, inclusive, or the equivalent.

(2) “Full time,” for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.

(g) “Expected family contribution,” with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
1070 et seq.)) and applicable rules and regulations adopted by the
commission.

(h) “High school grade point average” means a grade point
average calculated on a 4.0 scale, using all academic coursework,
for the sophomore year, the summer following the sophomore
year, the junior year, and the summer following the junior year,
excluding physical education, reserve officer training corps
(ROTC), and remedial courses, and computed pursuant to
regulations of the commission. However, for high school graduates
who apply after their senior year, “high school grade point average”
includes senior year coursework.

(i) “Instructional program of not less than one academic year”
means a program of study that results in the award of an associate
or baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer from
a community college to a baccalaureate degree program.

(j) “Instructional program of not less than two academic years”
means a program of study that results in the award of an associate
or baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.

(k) “Maximum household income and asset levels” means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by
the commission for the 2001-02 academic year, which shall be
set pursuant to the following income and asset ceiling amounts:

 

CAL GRANT PROGRAM INCOME CEILINGS

 

 

	Cal Grant A, C, and T	Cal Grant B
Dependent and Independent students with dependents*
Family Size
Six or more	$74,100	$40,700
Five	$68,700	$37,700
Four	$64,100	$33,700
Three	$59,000	$30,300
Two	$57,600	$26,900
Independent
Single, no dependents	$23,500	$23,500
Married	$26,900	$26,900

 

*Applies to independent students with dependents other than a
spouse.

 

CAL GRANT PROGRAM ASSET CEILINGS

 

 

	Cal Grant A, C, and T	Cal Grant B
Dependent**	$49,600	$49,600
Independent	$23,600	$23,600

 

**Applies to independent students with dependents other than a
spouse.

 

The commission shall annually adjust the maximum household
income and asset levels based on the percentage change in the cost
of living within the meaning of paragraph (1) of subdivision (e)
of Section 8 of Article XIII B of the California Constitution. The
maximum household income and asset levels applicable to a
renewing recipient shall be the greater of the adjusted maximum
household income and asset levels or the maximum household
income and asset levels at the time of the renewing recipient’s
initial Cal Grant award. For a recipient who was initially awarded
a Cal Grant for an academic year before the 2011-12 academic
year, the maximum household income and asset levels shall be the
greater of the adjusted maximum household income and asset
levels or the 2010-11 academic year maximum household income
and asset levels. An applicant or renewal recipient who qualifies
to be considered under the simplified needs test established by
federal law for student assistance shall be presumed to meet the
asset level test under this section. Prior to disbursing any Cal Grant
funds, a qualifying institution shall be obligated, under the terms
of its institutional participation agreement with the commission,
to resolve any conflicts that may exist in the data the institution
possesses relating to that individual.

(l) (1) “Qualifying institution” means an institution that
complies with paragraphs (2) and (3) and is any of the following:

(A) A California private or independent postsecondary
educational institution that participates in the Pell Grant Program
and in at least two of the following federal campus-based student
aid programs:

(i) Federal Work-Study.

(ii) Perkins Loan Program.

(iii) Supplemental Educational Opportunity Grant Program.

(B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution’s operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation
with the Department of Finance. A regionally accredited institution
that was deemed qualified by the commission to participate in the
Cal Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation status.

(C) A California public postsecondary educational institution.

(2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, “provide” may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information
is also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems
with multiple campuses, or on applications for enrollment or other
program information distributed to prospective students.

(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph
(A).

(3) (A) The commission shall certify by October 1 of each year
the institution’s latest three-year cohort default rate and graduation
rate as most recently reported by the United States Department of
Education.

(B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the institution, except as provided in
subparagraph (F).

(C) For purposes of the 2012-13 academic year, and every
academic year thereafter, an otherwise qualifying institution with
a three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and
every year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the institution, except as provided in subparagraph
(F).

(D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or (G), as applicable.

(ii) If the United States Department of Education corrects or
revises an institution’s three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or (G), as applicable, and the correction
or revision results in the institution’s three-year cohort default rate
or graduation rate satisfying those requirements, that institution
shall immediately regain its eligibility for the academic year to
which the corrected or revised three-year cohort default rate or
graduation rate would have been applied.

(E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally
eligible to participate in the Cal Grant Program until a three-year
cohort default rate or graduation rate has been reported for the
institution by the United States Department of Education.

(F) (i) An institution that is ineligible for initial and renewal
Cal Grant awards at the institution under subparagraph (B), (C),
or (G) shall be eligible for renewal Cal Grant awards for recipients
who were enrolled in the ineligible institution during the academic
year before the academic year for which the institution is ineligible
and who choose to renew their Cal Grant awards to attend the
ineligible institution. Cal Grant awards subject to this subparagraph
shall be reduced as follows:

(I) The maximum Cal Grant A and B awards specified in the
annual Budget Act shall be reduced by 20 percent.

(II) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section
69435.

(ii) This subparagraph shall become inoperative on July 1, 2013.

(G) For purposes of the 2012-13 academic year, and every
academic year thereafter, an otherwise qualifying institution with
a graduation rate of 30 percent or less for students taking 150
percent or less of the expected time to complete degree
requirements, as reported by the United States Department of
Education and as certified by the commission pursuant to
subparagraph (A), shall be ineligible for initial and renewal Cal
Grant awards at the institution, except as provided for in
subparagraphs (F) and (I).

(H) Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education
for the academic year two years before the year in which the
commission is certifying the three-year cohort default rate or
graduation rate pursuant to subparagraph (A).

(I) Notwithstanding subparagraph (G), an otherwise qualifying
institution with a three-year cohort default rate that is less than begin delete 10 end delete
begin insert 15.5 end insert percent and a graduation rate above 20 percent for students
taking 150 percent or less of the expected time to complete degree
requirements, as certified by the commission pursuant to
subparagraph (A), shall begin delete remain end delete begin insert be end insert eligible for initial and renewal
Cal Grant awards at the institution through the 2016-17 academic
year.

(J) The commission shall do all of the following:

(i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or (G) that the institution
is ineligible for initial Cal Grant awards for the academic year for
which the student received an initial Cal Grant award.

(ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or (G) that the student’s Cal
Grant award will be reduced by 20 percent, or eliminated, as
appropriate, if the student attends the ineligible institution in an
academic year in which the institution is ineligible.

(iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial and
renewal Cal Grant awards at the institution under subparagraph
(C) or (G) with a complete list of all California postsecondary
educational institutions at which the student would be eligible to
receive an unreduced Cal Grant award.

(K) By January 1, 2013, the Legislative Analyst shall submit
to the Legislature a report on the implementation of this paragraph.
The report shall be prepared in consultation with the commission,
and shall include policy recommendations for appropriate measures
of default risk and other direct or indirect measures of quality or
effectiveness in educational institutions participating in the Cal
Grant Program, and appropriate scores for those measures. It is
the intent of the Legislature that appropriate policy and fiscal
committees review the requirements of this paragraph and consider
changes thereto.

(m) “Satisfactory academic progress” means those criteria
required by applicable federal standards published in Title 34 of
the Code of Federal Regulations. The commission may adopt
regulations defining “satisfactory academic progress” in a manner
that is consistent with those federal standards.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 69433.6 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69433.6.  

(a) Cal Grant A awards and Cal Grant B awards may
be renewed for a total of the equivalent of four years of full-time
attendance in an undergraduate program provided that minimum
financial need as defined in paragraph (3) of subdivision (b) of
Section 69432.9 continues to exist. Commencing with the 2001-02
academic year, the total number of years of eligibility for grants
pursuant to this section shall be based on the student’s educational
level in his or her course of study as designated by the institution
of attendance when the recipient initially receives payment for a
grant.

begin insert

(b) (1) Commencing with the 2014-15 academic year, a
recipient who was determined to be ineligible for a renewal award
in the 2012-13 or 2013-14 academic year because he or she
exceeded the maximum household income or asset level established
by subdivision (k) of Section 69432.7, or failed to meet the
minimum need threshold established by paragraph (3) of
subdivision (b) of Section 69432.9, shall be eligible to receive a
renewal award if the recipient meets all program eligibility
requirements for the program from which he or she was previously
disqualified and the recipient has remaining renewal award
eligibility. For purposes of determining a student’s remaining
renewal award eligibility, an academic year during which a student
was ineligible shall reduce his or her renewal award eligibility by
one full-time equivalent year.

end insert begin insert

(2) Commencing with the 2015-16 academic year, a recipient
who is determined to be ineligible for a renewal award because,
during the immediately preceding academic year, he or she
exceeded the maximum household income or asset level established
by subdivision (k) of Section 69432.7, or failed to meet the
minimum need threshold established by paragraph (3) of
subdivision (b) of Section 69432.9, shall be eligible to receive a
renewal award if the recipient meets all program eligibility
requirements for the program from which he or she was previously
disqualified and the recipient has remaining renewal award
eligibility. For purposes of determining a student’s remaining
renewal award eligibility, an academic year during which a student
was ineligible shall reduce his or her renewal award eligibility by
one full-time equivalent year.

end insert begin delete

(b)

end delete

begin insert (c) end insert  For a student enrolled in an institutionally prescribed
five-year undergraduate program, Cal Grant A awards and Cal
Grant B awards may be renewed for a total of five years of full-time
attendance, provided that minimum financial need, as defined in
paragraph (3) of subdivision (b) of Section 69432.9, continues to
exist.

begin delete

(c)

end delete

begin insert (d) end insert  (1) A Cal Grant Program award recipient who has completed
a baccalaureate degree, and who has been admitted to and is
enrolled in a program of professional teacher preparation at an
institution approved by the California Commission on Teacher
Credentialing is eligible for, but not entitled to, renewal of a Cal
Grant Program award for an additional year of full-time attendance,
if minimum financial need, as defined in paragraph (3) of
subdivision (b) of Section 69432.9, continues to exist.

(2) Payment for an additional year is limited to only those
courses required for an initial teaching authorization. An award
made under this subdivision may not be used for other courses.

begin delete

(d)

end delete

begin insert (3) end insert  A student’s Cal Grant begin insert Program end insert renewal eligibility shall not
have lapsed more than 15 months begin delete prior to end delete begin insert before end insert the payment of
an award for purposes of this begin delete section. end delete begin insert subdivision. end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 70022 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

70022.  

(a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University
or the University of California who meets the requirements of
paragraph (2) is eligible for a scholarship award as described in
that paragraph.

(2) Each academic year, except as provided in paragraphs (3)
and (4), a student shall receive a scholarship award in an amount
that, combined with other begin delete publicly funded student financial aid end delete
begin insert federal, state, or institutionally administered student grants or fee
waivers end insert received by an eligible student, is up to 40 percent of the
amount charged to that student in that academic year for mandatory
systemwide tuition and fees, if all of the following requirements
are met:

(A) The student’s annual household income does not exceed
one hundred fifty thousand dollars ($150,000). For purposes of
this article, annual household income shall be calculated in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
(Chapter 1.7 (commencing with Section 69430)) and Section
69506.

(B) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student
who is exempt from nonresident tuition under Section 68130.5
shall not be required to satisfy the requirements of subdivision (a)
of Section 69433.9.

(C) The student is exempt from paying nonresident tuition.

(D) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. begin insert The FAFSA must be
submitted or postmarked by no later than March 2. end insert If the student
is not able to complete a FAFSA application, the student begin delete submits end delete
begin insert may satisfy this subparagraph by submitting end insert an application
determined by the commission to be equivalent to the FAFSA
application for purposes of this article begin insert by March 2 end insert .

(E) The student makes a timely application or applications for
begin delete publicly funded student financial aid from programs for which he
or she is eligible, other than the program established by this article.
For purposes of this article, “publicly funded student financial aid”
shall be defined as the federal Pell Grant Program, the Cal Grant
Program, and institutional need-based grants. end delete begin insert all other federal,
state, or institutionally administered grants or fee waivers for
which the student is eligible. end insert

(F) The student maintains satisfactory academic progress in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
pursuant to subdivision (m) of Section 69432.7.

begin insert

(G) The student is pursuing his or her first undergraduate
baccalaureate degree or has completed a baccalaureate degree
and has been admitted to, and is enrolled in, a program of
professional teacher preparation at an institution approved by the
California Commission on Teacher Credentialing.

end insert begin insert

(H) The student is enrolled at least part time.

end insert

(3)  begin insert (A) end insert begin insert   end insert The begin delete scholarship award under this article to a student
whose annual household income is greater than one hundred
thousand dollars ($100,000), and who otherwise meets the
requirements of paragraph (2), end delete begin insert percentage specified in paragraph
(2) end insert shall be reduced by 0.6-percent begin delete increments, from a maximum
40 percent of mandatory systemwide tuition and fees for an
academic year to a minimum 10 percent of mandatory systemwide
tuition and fees for an academic year, end delete begin insert increments end insert per one thousand
dollars ($1,000) of annual household income in excess of one
hundred thousand dollars ($100,000), begin insert to a minimum 10 percent of
mandatory systemwide tuition and fees for an academic year, end insert
provided that no scholarship award shall be provided to a student
with an annual household income exceeding one hundred fifty
thousand dollars ($150,000). This reduction shall be in addition
to any reduction required by subdivision (e) of Section 70023.

begin insert

(B) Notwithstanding subparagraph (A), for any student who
qualifies for a scholarship award of at least one dollar ($1), the
minimum annual scholarship amount for full-time enrollment is
ninety dollars ($90).

end insert

(4) For the 2014-15, 2015-16, and 2016-17 academic years,
the maximum amount of a student’s scholarship award shall be 35
percent, 50 percent, and 75 percent, respectively, of the total
scholarship award amount that the student would otherwise be
eligible to receive.

(b) In order for students enrolled in their respective segments
to remain eligible to receive a scholarship begin insert award end insert under this article,
the University of California and the California State University
shall not supplant their respective institutional need-based grants
with the funds provided for scholarships under this article, and
shall maintain their funding amounts at a level that, at a minimum,
is equal to the level maintained for undergraduate students during
the 2013-14 academic year.

(c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1.

begin insert

(d) A Middle Class Scholarship Program award authorized
pursuant to this article shall be defined as a full-time equivalent
grant. An award to a part-time student shall be a fraction of a
full-time grant, as determined by the proportionate amount charged
for systemwide tuition and fees. A part time student shall not be
discriminated against in the selection of Middle Class Scholarship
Program awards. For purposes of this section, “full-time student”
and “part-time student” have the same meaning as specified in
subdivision (f) of Section 69432.7.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 70023 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

70023.  

(a) For each academic year, the commission shall
determine an amount sufficient, when combined with begin delete Cal Grants,
Pell Grants, and institutional need-based grants end delete begin insert other federal, state,
or institutionally administered student grants or fee waivers end insert
received by eligible students from other sources, to provide
scholarships to eligible students in the amounts described in
paragraphs (2) and (3) of subdivision (a) of Section 70022. The
University of California and the California State University shall
provide the commission with any financial aid data that are
necessary for the determination of these amounts.

(b) The commission shall annually determine if the amounts
appropriated under this section in each fiscal year are sufficient to
cover the costs of the scholarships as projected to be awarded
pursuant to the program. If those amounts are not sufficient for
this purpose, the scholarships shall be reduced proportionately by
an equal percentage for all recipients of scholarships under this
article.

(c) The commission may adopt regulations necessary to carry
out the purposes of this article under subdivision (b) as emergency
regulations in accordance with Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code. For purposes of the Administrative Procedure Act, including
Section 11349.6 of the Government Code, the adoption of those
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 180 days unless the commission complies with all provisions
of 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.

(d) The unencumbered balance, as of June 30 of each fiscal
year, of the amount appropriated from the Middle Class Scholarship
Fund pursuant to paragraph (1) of subdivision (e) shall revert to
the General Fund.

(e) (1) Upon order of the Director of Finance, the following
amounts shall be transferred from the General Fund to the Middle
Class Scholarship Fund, and are hereby appropriated to the
commission for allocation pursuant to this article:

(A) For the 2014-15 fiscal year, one hundred seven million
dollars ($107,000,000).

(B) For the 2015-16 fiscal year, one hundred fifty-two million
dollars ($152,000,000).

(C) For the 2016-17 fiscal year, two hundred twenty-eight
million dollars ($228,000,000).

(D) For the 2017-18 fiscal year and for each fiscal year
thereafter, three hundred five million dollars ($305,000,000).

(2) An annual appropriation to the commission is hereby
established in the amounts and for the fiscal years described in
paragraph (1) to carry out the purposes of this section and Section
70022.

(3) The funds transferred and appropriated pursuant to paragraph
(1) shall only be available for encumbrance in the fiscal year in
which they are transferred, and the General Fund shall have no
liability or any obligation beyond the transfers explicitly authorized
in paragraph (1) unless a subsequent transfer or allocation is
required pursuant to statute.

(4)  In any fiscal year, additional appropriations may be enacted
pursuant to statute to carry out the purposes of this article.

(5) (A) Beginning with the Governor’s Budget proposal for the
2014-15 fiscal year, and in the Governor’s Budget for each fiscal
year thereafter, the Department of Finance shall include a fund
condition statement for the Middle Class Scholarship Fund for the
fiscal year of the proposed budget and the two immediately
preceding fiscal years prepared in accordance with existing law.

(B) Upon order of the Director of Finance and commencing
with the 2013-14 fiscal year, if the May Revision projects a budget
deficit for the next fiscal year, the amount specified in paragraph
(1) for the fiscal year for which the budget deficit is projected may
be reduced by up to 33 percent. Upon order of the Director of
Finance, beginning with the 2016-17 fiscal year, and each year
thereafter, if the May Revision projects a deficit for the next fiscal
year, the amount specified in paragraph (1) may be reduced to an
amount greater than or equal to two hundred million dollars
($200,000,000).

(f) Subject to an appropriation in the annual Budget Act for its
purposes, the commission may begin implementation of, and
establish outreach services relating to, this article.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Article 1.5 (commencing with Section 78220) is added
to Chapter 2 of Part 48 of Division 7 of Title 3 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 1.5. end insert   Student Equity Plans

 

begin insert 78220. end insert   

(a) As a condition for receiving Student Success and
Support Program funding, and in order to ensure equal educational
opportunities and to promote student success for all students,
regardless of race, gender, age, disability, or economic
circumstances, the governing board of each community college
district shall maintain a student equity plan that includes all of
the following for each community college in the community college
district:

(1) Campus-based research as to the extent of student equity
by gender and for each of the following categories of students:

(A) Current or former foster youth.

(B) Students with disabilities.

(C) Low-income students.

(D) Veterans.

(E) Students in the following ethnic and racial categories, as
they are defined by the United States Census Bureau for the 2010
Census for reporting purposes:

(i) American Indian or Alaska Native.

(ii) Asian.

(iii) Black or African American.

(iv) Hispanic or Latino.

(v) Native Hawaiian or other Pacific Islander.

(vi) White.

(vii) Some other race.

(viii) More than one race.

(2) Goals for access to, and completion of, basic skills, career
technical education and workforce training, and transfer courses
for the overall student population and for each population group
of high-need or disadvantaged students, and a determination of
what activities are most likely to effectively meet those goals.

(3) Whether significant underrepresentation is found to exist
pursuant to paragraphs (1) and (2), measures for addressing the
disparities in those areas, implementation activities designed to
attain the goals specified in paragraph (2), including, but not
limited to, the adoption of evidence-based models of remediation,
implementation of placement tests and policies that more
accurately predict student success and identify students’ remedial
needs, and a means of coordinating with, at a minimum, the
following student equity-related categorical programs or
campus-based programs:

(A) Students with disabilities.

(B) Extended Opportunity Programs and Services and Special
Services.

(C) Fund for Student Success.

(D) Student Success and Support Program.

(E) Programs for foster youth.

(F) Programs for veterans.

(G) Special Services for CalWORKS Recipients.

(H) Student Financial Aid Administration.

(I) Student Success for Basic Skills Students.

(4) Sources of funds for the activities in the plan.

(5) A schedule and process for evaluation.

(6) An executive summary that includes, at a minimum, the
students groups for whom goals have been set, the goals, the
initiatives that the community college or community college district
will undertake to achieve these goals, the resources that have been
budgeted for that purpose, and the community college district
official to contact for further information. Commencing with
2016-17 academic year, the executive summary shall also include
a detailed accounting of how funding was expended and an
assessment of the progress made in achieving the identified goals.

(b) Student equity plans shall be developed with the active
involvement of all groups on campus as required by law, including,
but not limited to, the academic senate, academic faculty and staff,
student services, and students, and with the involvement of
appropriate people from the community.

(c) The plan shall be adopted by the governing board of the
community college district and submitted to the Chancellor of the
California Community Colleges on or before January 1, 2015,
who shall publish all executive summaries, sending copies to the
appropriate policy and budget committees of the Legislature, the
Department of Finance, every community college and community
college district, each consultation group identified in subdivision
(b) that so requests, and additional individuals and organizations
as deemed appropriate.

(d) The plan shall be updated every three academic years and
plan updates shall be submitted to the Chancellor of the California
Community Colleges for publication and distribution as provided
for in subdivision (c).

begin insert 78221. end insert   

The Chancellor of the California Community Colleges
shall allocate funds provided for purposes of successfully
implementing the activities and goals specified in the student equity
plans adopted pursuant to Section 78220, consistent with all of
the following:

(a) The chancellor shall ensure a community college district
has submitted a student equity plan that is consistent with Section
78220. For purposes of allocating funding appropriated in the
2014-15 Budget Act, a community college district that has not
submitted a student equity plan shall provide the chancellor with
an outline for the community college district’s completion of the
student equity plan on or before January 1, 2015.

(b) The chancellor shall ensure that community college districts
that serve greater populations of students who are high-need
students or disadvantaged students receive greater resources to
provide services to students, consistent with the goals and activities
specified in their student equity plans.

(c) The chancellor shall establish criteria for calculating the
number of high-need and disadvantaged students in a community
college district. For purposes of this article, “high-need students”
mean students who have an expected family contribution, as defined
in subdivision (g) of Section 69432.7, at any time during those
students’ matriculation at the institution, that would qualify those
students to receive federal Pell Grants and students from zip codes
in the bottom two quintiles of college attainment. The calculation
of a student’s expected family contribution shall be based on the
Free Application for Federal Student Aid (FAFSA) application or
an application determined by the California Student Aid
Commission to be equivalent to the FAFSA application submitted
by that student. For purposes of this article, the determination of
who are “disadvantaged” students shall take into account the
college participation rate of the college-aged population of, and
the socioeconomic status of, a community college district
population.

(d) (1) The chancellor shall establish a list of eligible and
ineligible expenditures and activities to ensure that funding is used
to support the implementation of student equity plan goals and the
coordination of services for the targeted student populations.

(2) Notwithstanding Section 10231.5 of the Government Code,
by March 15, 2016, and by March 15 annually thereafter, the
chancellor shall report to the Department of Finance, the
Legislative Analyst, and the appropriate policy and fiscal
committees of the Legislature, on the expenditure of funds for
purposes of this article during the previous fiscal year.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert The heading of Article 5 (commencing with Section
79200) of Chapter 9 of Part 48 of Division 7 of Title 3 of the end insert begin insert Education Code end insert begin insert is amended to read: end insert

 

Article 5.  begin delete Curriculum Development for end delete CalWORKs Recipients
begin insert Education Program end insert

 

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 79200 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

79200.  

begin delete As end delete begin insert (a) end insert begin insert   end insert begin insert There is in the California Community Colleges
the CalWORKs Recipients Education Program. end insert

begin insert (b) end insert begin insert   end insert begin insert As end insert used in this article, “CalWORKs recipient” means a
recipient of aid under Chapter 2 (commencing with Section 11200)
of Part 3 of Division 9 of the Welfare and Institutions Code or any
successor program.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 79204 is added to the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

begin insert 79204. end insert   

(a) In addition to the funding received pursuant to
Section 79202, and to the extent that funding is provided in the
annual Budget Act, a community college district shall receive
funding for purposes of providing special services for CalWORKs
recipients.

(b) Special services for CalWORKs recipients shall assist
CalWORKs recipient students and those students transitioning off
of CalWORKs in achieving long-term self-sufficiency through
coordinated student services offered at a community college.
Special services may include any of the services funded in
accordance with subdivision (e).

(c) Services funded pursuant to this section shall be provided
only to the following:

(1) Current CalWORKs recipients until their initial educational
objectives are met.

(2) Former CalWORKs recipients for a period of not more than
two years, subject to the conditions of Section 79208.

(d) Funds received for purposes of this section shall be used to
supplement, and not supplant, existing funds and services provided
for CalWORKs recipients attending a community college.

(e) The chancellor shall develop an equitable method for
allocating these funds to all community college districts based on
the relative number of CalWORKs recipients in attendance in each
district and shall allocate funds for the following purposes:

(1) Job placement.

(2) Coordination with county welfare offices and other local
agencies, including, but not limited to, local workforce investment
boards.

(3) Child care and workstudy.

(4) Instruction.

(5) Postemployment skills training and related skills training.

(6) Campus-based case management, limited to on-campus
assistance and services not provided by county caseworkers that
do not supplant other counseling and academic support services
funded through existing California Community Colleges
categorical programs.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 79205 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 79205. end insert   

(a) Funds allocated pursuant to Section 79204 for the
purposes of subsidized child care shall be utilized only for children
of CalWORKs recipients through campus-based centers or parental
choice vouchers subject to rules consistent with those applied to
related programs operated by the State Department of Education,
including those rules relating to eligibility, reimbursement rates,
and parental contribution schedules.

(b) Subsidized campus child care shall be provided to
CalWORKs recipients only if they are engaged in welfare-to-work
activities pursuant to Section 11320.1 of the Welfare and
Institutions Code, through the completion of their initial education
and training plan and for up to three months thereafter or until
the end of the academic year, whichever period of time is greater.

(c) Funds allocated pursuant to Section 79204 for workstudy
shall be used for payments to those employers that currently
participate in campus-based workstudy programs or are providing
work experiences that are directly related to and in furtherance
of student educational programs and work participation
requirements. Those payments shall not exceed 75 percent of the
wage for the workstudy positions, and the employers shall pay at
least 25 percent of the wage for the workstudy positions. These
funds may be expended on behalf of a CalWORKs recipient only
if the recipient’s total hours of education, employment, and
workstudy meet the recipient’s obligations as specified in Section
11322.8 of the Welfare and Institutions Code.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 79206 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 79206. end insert   

(a) Funds allocated pursuant to Section 79204 may
be used to provide additional sections of credit or noncredit classes
for CalWORKs recipient students if the chancellor determines that
a community college district is otherwise unable to offer the
additional instructional services to meet the demand for
CalWORKs students.

(b) The determination described in subdivision (a) shall be
based on fall enrollment information and community college
districts shall submit applications to the Chancellor of the
California Community Colleges by December 1 of each year.

(c) If the chancellor approves the use of funds for direct
instructional workload pursuant to subdivision (a), the Chancellor
of the California Community Colleges shall submit a report to the
Department of Finance and the Joint Legislative Budget Committee
by February 15 of each year that includes at least all of the
following information:

(1) The enrollment of new CalWORKs recipient students.

(2) An explanation of why additional classes were needed to
accommodate the needs of CalWORKs recipient students.

(3) An expenditure plan for the balance of these funds.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 79207 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 79207. end insert   

(a) As a condition of continued receipt of the funds
allocated pursuant to Section 79204, by the fourth week following
the end of the semester or quarter term commencing in January
of each year, community college districts and colleges shall submit
to the Chancellor of the California Community Colleges a report,
in the format specified by the chancellor, in consultation with the
State Department of Social Services, that includes, but is not limited
to, all of the following information:

(1) How the moneys received for the funded components of
special services, as specified in subdivision (e) of Section 79204,
were spent.

(2) The number of hours of child care services provided.

(3) The average monthly enrollment of CalWORKs recipient
dependents served in child care.

(4) The number of work study hours provided.

(5) The hourly salaries and type of jobs in which CalWORKs
recipients were placed.

(6) The number of students receiving case management.

(7) The student participation rates, and other outcome data.

(b) It is the intent of the Legislature that, to the extent
practicable, reporting from colleges utilize data gathered for
federal reporting requirements at the state and local level.

(c) The Chancellor of the California Community Colleges shall
compile the information received pursuant to subdivision (a) for
annual reports to the Legislature, Governor, the Legislative
Analyst, the Department of Finance, and the State Department of
Social Services, notwithstanding Section 10231.5 of the
Government Code, by February 15 of each year.

(d) A report to the Legislature pursuant to subdivision (c) shall
be submitted pursuant to Section 9795 of the Government Code.

end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 79208 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 79208. end insert   

(a) First priority for expenditures of any funds
allocated in Section 79204 shall be for the support of current
CalWORKs recipients.

(b) If the needs of current CalWORKs recipients are insufficient
to fully utilize all of the funding allocated pursuant to Section
79204 in a cost-effective way, the chancellor, in consultation with
the State Department of Social Services, may allocate a portion
of the funds allocated pursuant to Section 79204 for the purpose
of providing postemployment services to former CalWORKs
recipients.

(c) Prior to an allocation of funds for postemployment services
pursuant to subdivision (b), the chancellor shall secure the
approval of the Department of Finance for the allocations,
complete a cumulative report on the outcomes, activities, and
cost-effectiveness of the program of funding specified in Section
79204 no later than February 15 of each year, and provide the
rationale and justification for the proposed allocation of funds for
postemployment services by community college districts for former
CalWORKs recipients.

(d) Funds allocated pursuant to subdivision (b) shall be used
only for former CalWORKs recipients who have been off of cash
assistance for not longer than two years to assist them in upgrading
skills, job retention, and advancement, by means of one or more
of the following:

(1) Direct instruction that cannot be funded by other means.

(2) Child care to support attendance in classes consistent with
this article for periods commensurate with a student’s need for
postemployment training within the two-year period.

(3) Job development and placement services.

(4) Career counseling and assessment activities that cannot be
funded through other programs.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 79209 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 79209. end insert   

(a) If a community college district is unable to fully
expend its share of funds allocated for child care pursuant to
Section 79204, it may request that the chancellor approve a
reallocation to other CalWORKs purposes authorized by this
article, subject to all pertinent limitations and any district match
required for those purposes.

(b) Funds allocated pursuant to Section 79204 shall be budgeted
to meet the state’s Temporary Assistance for Needy Families
maintenance of effort requirement pursuant to the federal Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193) and may not be expended in any way that
would cause their disqualification as a federally allowable
maintenance of effort expenditure.

end insert

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 81821 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

81821.  

begin insert

(a) The five-year plan for capital construction shall
set out the estimated capital construction needs of the district with
reference to at least both of the following elements:

end insert begin insert

(1) The current enrollment capacity of the district expressed in
terms of weekly student contact hours and based upon the space
and utilization standards for community college classrooms and
laboratories adopted by the board of governors.

end insert begin insert

(2) District office, library, and supporting facility capacities as
derived from the physical plant standards for office, library, and
supporting facilities adopted by the board of governors.

end insert

begin insert (b) end insert begin insert   end insert The five-year plan for capital construction begin delete shall end delete begin insert may also end insert
set out the estimated capital construction needs of the district with
reference to begin delete elements including at least all of the following: end delete begin insert other
elements, including, but not limited to: end insert

begin delete

(a)

end delete

begin insert (1) end insert  The plans of the district concerning its future academic and
student services programs, and the effect on estimated construction
needs begin delete which end delete begin insert that end insert may arise because of particular courses of
instruction or subject matter areas or student services to be
emphasized.

begin delete

(b)

end delete

begin insert (2) end insert  The enrollment projections for each district formulated by
the Department of Finance, expressed in terms of weekly student
contact hours. The enrollment projections for each individual
college and educational center within a district shall be made
cooperatively by the Department of Finance and the begin delete community
college district. end delete begin insert Chancellor of the California Community Colleges. end insert

begin delete

(c) The current enrollment capacity of the district expressed in
terms of weekly student contact hours and based upon the space
and utilization standards for community college classrooms and
laboratories adopted by the board of governors in consultation
with the California Postsecondary Education Commission and
consistent with its standards.

end delete begin delete

(d) District office, library, and supporting facility capacities as
derived from the physical plant standards for office, library, and
supporting facilities adopted by the board of governors in
consultation with the California Postsecondary Education
Commission and consistent with its standards.

end delete begin delete

(e)

end delete

begin insert (3) end insert  An annual inventory of all facilities and land of the district
using standard definitions, forms, and instructions adopted by the
board of governors.

begin delete

(f)

end delete

begin insert (4) end insert  An estimate of district funds begin delete which end delete begin insert that end insert shall be made
available for capital outlay matching purposes pursuant to
regulations adopted by the board of governors.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 84321.6 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

84321.6.  

(a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to
community college districts pursuant to Sections 84320 and 84321
shall be adjusted by the following:

(1) For the month of February begin insert 2014 end insert , fifty-two million four
hundred fifty-six thousand dollars ($52,456,000) shall be deferred
to begin delete July. end delete begin insert July 2014. end insert

(2) For the month of March begin insert 2014 end insert , one hundred thirty-five
million dollars ($135,000,000) shall be deferred to begin delete July. end delete begin insert July 2014. end insert

(3) For the month of April begin insert 2014 end insert , one hundred thirty-five million
dollars ($135,000,000) shall be deferred to begin delete July. end delete begin insert July 2014. end insert

(4) For the month of May begin insert 2014 end insert , one hundred thirty-five million
dollars ($135,000,000) shall be deferred to begin delete July. end delete begin insert July 2014. end insert

(5) For the month of June begin insert 2014 end insert , one hundred thirty-five million
dollars ($135,000,000) shall be deferred to begin delete July. end delete begin insert July 2014. end insert

begin insert

(6) For the month of June 2015, ninety-four million four hundred
sixty-five thousand dollars ($94,465,000) shall be deferred to July
2015.

end insert

(b)  begin insert (1) end insert begin insert   end insert In satisfaction of the moneys deferred pursuant to
begin insert paragraphs (1) to (5), inclusive, of end insert subdivision (a), the sum of five
hundred ninety-two million four hundred fifty-six thousand dollars
($592,456,000) is hereby appropriated in July of the 2014-15 fiscal
year from the General Fund to the Board of Governors of the
California Community Colleges for apportionments to community
college districts, for expenditure during the 2014-15 fiscal year,
to be expended in accordance with Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2013.

begin insert

(2) In satisfaction of the moneys deferred pursuant to paragraph
(6) of subdivision (a), the sum of ninety-four million four hundred
sixty-five thousand dollars ($94,465,000) is hereby appropriated
in July of the 2015-16 fiscal year from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure
during the 2015-16 fiscal year, to be expended in accordance with
Schedule (1) of Item 6870-101-0001 of Section 2.00 of the Budget
Act of 2014.

end insert

(c) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, begin insert one hundred
thirty-eight million six hundred two thousand dollars
($138,602,000) of end insert the appropriations made by begin insert paragraph (1) of end insert
subdivision (b) shall be deemed to be “General Fund revenues
appropriated for community college districts,” as defined in
subdivision (d) of Section 41202, for the begin delete 2014-15 end delete begin insert 2012-13 end insert fiscal
year, and included within the “total allocations to school districts
and community college districts from General Fund proceeds of
taxes appropriated pursuant to Article XIII B,” as defined in
subdivision (e) of Section 41202, for the begin delete 2014-15 end delete begin insert 2012-13 end insert fiscal
year.

begin insert

(d) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, two hundred
ninety-six million three hundred fifty-four thousand dollars
($296,354,000) of the appropriations made by paragraph (1) of
subdivision (b) shall be deemed to be “General Fund revenues
appropriated for community college districts,” as defined in
subdivision (d) of Section 41202, for the 2013-14 fiscal year, and
included within the “total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B,” as defined in subdivision
(e) of Section 41202, for the 2013-14 fiscal year.

end insert begin insert

(e) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, one hundred
fifty-seven million five hundred thousand dollars ($157,500,000)
of the appropriations made by paragraph (1) of subdivision (b)
shall be deemed to be “General Fund revenues appropriated for
community college districts,” as defined in subdivision (d) of
Section 41202, for the 2014-15 fiscal year, and included within
the “total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated
pursuant to Article XIII B,” as defined in subdivision (e) of Section
41202, for the 2014-15 fiscal year.

end insert begin insert

(f) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, ninety-four million
four hundred sixty-five thousand dollars ($94,465,000) of the
appropriations made by paragraph (2) of subdivision (b) shall be
deemed to be “General Fund revenues appropriated for community
college districts,” as defined in subdivision (d) of Section 41202,
for the 2015-16 fiscal year, and included within the “total
allocations to school districts and community college districts
from General Fund proceeds of taxes appropriated pursuant to
Article XIII B,” as defined in subdivision (e) of Section 41202, for
the 2015-16 fiscal year.

end insert begin delete

(d)

end delete

begin insert (g) end insert  This section shall become operative on December 15, 2013.

begin delete

(e)

end delete

begin insert (h) end insert  This section shall remain in effect only until January 1, begin delete 2015, end delete
begin insert 2017, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2015, end delete begin insert 2017, end insert deletes or extends
that date.

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 84750.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

84750.5.  

(a) The board of governors, in accordance with the
statewide requirements contained in paragraphs (1) to (11),
inclusive, of subdivision (d), and in consultation with institutional
representatives of the California Community Colleges and
statewide faculty and staff organizations, so as to ensure their
participation in the development and review of policy proposals,
shall develop criteria and standards for the purposes of making the
annual budget request for the California Community Colleges to
the Governor and the Legislature, and for the purpose of allocating
the state general apportionment revenues.

(b) In developing the criteria and standards, the board of
governors shall utilize and strongly consider the recommendations
and work product of the “System Office Recommendations Based
on the Report of the Work Group on Community College Finance”
that was adopted by the board at its meeting of March 7, 2005.
The board begin insert of governors end insert shall complete the development of these
criteria and standards, accompanied by the necessary procedures,
processes, and formulas for utilizing its criteria and standards, by
March 1, 2007, and shall submit on or before that date a report on
these items to the Legislature and the Governor.

(c) (1) It is the intent of the Legislature in enacting this section
to improve the equity and predictability of general apportionment
and growth funding for community college districts in order that
the districts may more readily plan and implement instruction and
related programs, more readily serve students according to the
policies of the state’s master plan for higher education, and enhance
the quality of instruction and related services for students.

(2) It is the intent of the Legislature to determine the amounts
to be appropriated for the purposes of this section through the
annual Budget Act. Nothing in this section shall be construed as
limiting the authority either of the Governor to propose, or the
Legislature to approve, appropriations for California Community
Colleges programs or purposes.

(d) The board of governors shall develop the criteria and
standards within the following statewide minimum requirements:

(1) The calculations of each community college district’s
revenue level for each fiscal year shall be based on the level of
general apportionment revenues (state and local) the district
received for the prior year plus any amount attributed to a deficit
from the adopted standards to be developed pursuant to this section,
with revenue adjustments being made for increases or decreases
in begin delete full time end delete begin insert full-time end insert equivalent students (FTES), for equalization
of funding per credit FTES, for necessary alignment of funding
per FTES between credit and noncredit programs, for inflation,
and for other purposes authorized by law.

(2) Commencing with the 2006-07 fiscal year, the funding
mechanism developed pursuant to this section shall recognize the
need for community college districts to receive an annual allocation
based on the number of colleges and comprehensive centers in the
district. In addition to this basic allocation, the marginal amount
of credit revenue allocated per FTES shall be funded at a rate not
less than four thousand three hundred sixty-seven dollars ($4,367),
as adjusted for the change in the cost-of-living in subsequent annual
budget acts.

(A) To the extent that the Budget Act of 2006 contains an
appropriation of one hundred fifty-nine million four hundred
thirty-eight thousand dollars ($159,438,000) for community college
equalization, the Legislature finds and declares that community
college equalization for credit FTES has been effectively
accomplished as of March 31, 2007.

(B) The chancellor shall develop criteria for the allocation of
one-time grants for those districts that would have qualified for
more equalization under prior law than pursuant to this section
and the Budget Act of 2006, and for those districts that would have
qualified for more funding under a proposed rural college access
grant than pursuant to this section and the Budget Act of 2006, as
determined by the chancellor. Appropriations for the one-time
grants shall be provided pursuant to paragraph (24) of subdivision
(a) of Section 43 of Chapter 79 of the Statutes of 2006.

(3) Noncredit instruction shall be funded at a uniform rate of
two thousand six hundred twenty-six dollars ($2,626) per FTES,
as adjusted for the change in the cost-of-living provided in
subsequent annual budget acts.

(4) Funding for instruction in career development and college
preparation, as authorized pursuant to Section 84760.5, shall be
provided as follows:

(A)  begin insert (i) end insert begin insert   end insert Beginning in the 2006-07 fiscal year, career
development and college preparation FTES may be funded at a
rate of three thousand ninety-two dollars ($3,092) per FTES for
courses in programs that conform to the requirements of Section
84760.5. This rate shall be adjusted for the change in the
cost-of-living or as otherwise provided in subsequent annual budget
acts.

begin insert

(ii) Beginning in the 2015-16 fiscal year, career development
and college preparation FTES shall be funded at the same level
as the credit rate specified in paragraph (2). This rate shall be
adjusted for the change in the cost-of-living or as otherwise
provided in subsequent annual budget acts.

end insert begin insert

(iii) The Legislative Analyst shall report to the Legislature on
or before March 1, 2017, regarding the change in funding specified
in clause (ii), including whether community colleges offered
additional classes or programs related to career development or
college preparation, and whether there was any change in FTES.

end insert begin insert

(iv) (I) The requirement for submitting a report imposed under
clause (iii) is inoperative on March 30, 2019, pursuant to Section
10231.5 of the Government Code.

end insert begin insert

(II) A report submitted pursuant to clause (iii) shall be submitted
in compliance with Section 9795 of the Government Code.

end insert

(B) Changes in career development and college preparation
FTES shall result in adjustments to revenues as follows:

(i) Increases in career development and college preparation
FTES shall result in an increase in revenues in the year of the
increase and at the average rate per career development and college
preparation FTES, including any cost-of-living adjustment
authorized by statute or by the annual Budget Act.

(ii) Decreases in career development and college preparation
FTES shall result in a revenue reduction in the year following the
decrease and at the average rate per career development and college
preparation FTES.

(5) Except as otherwise provided by statute, current categorical
programs providing direct services to students, including extended
opportunity programs and services, and disabled students programs
and services, shall continue to be funded separately through the
annual Budget Act, and shall not be assumed under the budget
formula otherwise specified by this section.

(6) For credit and noncredit instruction, changes in FTES shall
result in adjustments in district revenues as follows:

(A) Increases in FTES shall result in an increase in revenues in
the year of the increase and at the amount per FTES provided for
in paragraph (2) or (3), as appropriate, including any cost-of-living
adjustment authorized by statute or by the annual Budget Act.

(B) Decreases in FTES shall result in revenue reductions
beginning in the year following the initial year of decrease in FTES,
and at the district’s marginal funding per FTES.

(C) Districts shall be entitled to the restoration of any reductions
in apportionment revenue due to decreases in FTES during the
three years following the initial year of decrease in FTES if there
is a subsequent increase in FTES.

(7) Revenue adjustments shall be made to reflect cost changes,
using the same inflation adjustment as required for school districts
pursuant to subdivision (b) of Section 42238.1. These revenue
adjustments shall be made to the college and center basic
allocations, credit and noncredit FTES funding rates, and career
development and college preparation FTES funding rates.

(8) The statewide requested increase in budgeted workload
FTES shall be based, at a minimum, on the sum of the following
computations:

(A) Determination of an equally weighted average of the rate
of change in the California population of persons between the ages
of 19 and 24 and the rate of change in the California population
of persons between the ages of 25 and 65, both as determined by
the Department of Finance’s Demographic Research Unit as
determined for the preceding fiscal year.

(B) To the extent the California unemployment rate exceeds 5
percent for the most recently completed fiscal year, that positive
difference shall be added to the rate computed in subparagraph
(A). In no event shall that positive difference exceed 2 percent.

(C) The chancellor may also add to the amounts calculated
pursuant to subparagraphs (A) and (B) the number of FTES in the
areas of transfer, vocational education, and basic skills that were
unfunded in the current fiscal year. For this purpose, the following
computation shall be determined for each district, and a statewide
total shall be calculated:

(i) Establish the base level of FTES earned in the prior fiscal
year for transfer courses consisting of courses meeting the
California State University breadth or Intersegmental General
Education Transfer Curriculum requirements or major course
prerequisites accepted by the University of California or the
California State University.

(ii) Establish the base level of FTES earned in the prior fiscal
year for vocational education courses consisting of courses defined
by the chancellor’s office Student Accountability Model codes A
and B that are consistent with the courses used for measuring
success in this program area under the accountability system
established pursuant to Section 84754.5.

(iii) Establish the base level of FTES in the prior fiscal year for
basic skills courses, both credit and noncredit.

(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.

(v) Multiply the result of the calculation made under clause (iv)
by one plus the district’s funded growth rate in the current fiscal
year. This figure shall represent the maintenance of effort level
for the budget year.

(vi) FTES in transfer, vocational education, and basic skills that
are in excess of the total calculated pursuant to clause (v), shall be
considered in excess of the maintenance of effort level, and shall
be eligible for overcap growth funding if the district exceeds its
overall funded FTES.

(vii) In no event shall the amount calculated pursuant to clause
(vi) exceed the total unfunded FTES for that fiscal year. To the
extent the computation specified in subdivision (c) requires the
reporting of additional data by community college districts, that
reporting shall be a condition of the receipt of apportionment for
growth pursuant to this section and those funds shall be available
to offset any and all costs of providing the data.

(9) Except as provided in subparagraph (B) of paragraph (6),
for the 2006-07 fiscal year or for the first fiscal year for which
this section is implemented by the board of governors, whichever
is later, all districts shall receive at least the amount of revenue
received for the prior fiscal year, adjusted for the cost-of-living
adjustment specified in subdivision (b) of Section 42238.1 and
adjusted for the actual increase in FTES not to exceed the district’s
funded growth cap. Thereafter, allocations shall be made pursuant
to this section, as implemented by the board of governors pursuant
to the annual Budget Act.

(10) Except as specifically provided in statute, regulations of
the board of governors for determining and allocating the state
general apportionment to the community college districts shall not
require district governing boards to expend the allocated revenues
in specified categories of operation or according to the workload
measures developed by the board of governors.

begin delete

(e) This section shall become operative on October 1, 2006.

end delete begin insert

(e) (1) The Chancellor of the Community Colleges shall
develop, and the board of governors shall adopt, a revised
apportionment growth formula for use commencing with the
2015-16 fiscal year. The chancellor shall allocate apportionments
pursuant to the revised formula only after the revised formula, and
any formulas for adjustment pursuant to paragraph (2), have been
adopted by the board of governors. The revised apportionment
growth formula shall support the primary missions of the segment,
and shall be based on each community’s need for access to the
community colleges, as determined by local demographics. In
developing the revised formula, the chancellor shall consider
multiple factors in determining need; however, the primary factors
shall be:

end insert begin insert

(A) (i) The number of persons under 25 years of age without a
college degree, within a community college district’s boundaries,
and the number of persons 25 to 64 years of age, inclusive, without
a college degree, within a community college district’s boundaries.

end insert begin insert

(ii) Notwithstanding clause (i), the chancellor may use
alternative age ranges depending on the availability of data.

end insert begin insert

(B) The number of persons who are unemployed, have limited
English skills, who are in poverty, or who exhibit other signs of
being disadvantaged, as determined by the chancellor, within a
community college district’s boundaries.

end insert begin insert

(2) Beginning with the 2016-17 fiscal year, the chancellor shall
adjust upward the need determination based on each community
college’s effectiveness in serving residents of neighborhoods,
within or outside of the community college district’s boundaries,
that exhibit the highest levels of need in the state.

end insert begin insert

(3) The chancellor shall calculate each community college
district’s proportionate share of the statewide need for access to
the community colleges based on the application of this formula
described in paragraph (1), as adjusted pursuant to paragraph
(2).

end insert begin insert

(4) The chancellor shall calculate the difference between each
community college district’s proportionate share of the statewide
need for access to the community colleges, as calculated pursuant
to paragraph (3), and its current proportionate share of statewide
enrollment in the community colleges.

end insert begin insert

(5) (A) Until a community college district reaches its highest
level of apportionment revenues previously received, its
apportionment revenues shall be eligible to increase by the lesser
of 1 percent of its current apportionment base, or one-half of the
statewide growth allocation on an proportionate basis, regardless
of need.

end insert begin insert

(B) After a community college district reaches its highest level
of apportionment revenues previously received, it shall be eligible
to increase its apportionment revenues by the lesser of one-half
of 1 percent of its current apportionment base, or one-quarter of
the statewide growth allocation on an proportionate basis,
regardless of its need.

end insert begin insert

(6) The remainder of the apportionment growth funding shall
be allocated to allow each community college district to grow its
apportionment revenues based on its relative share of the difference
between the amounts calculated in paragraph (4), up to a maximum
of its apportionment base for the preceding fiscal year appropriate
to ensure that community college district is advancing the primary
missions of the segment. The maximum established by the
chancellor shall not be less than 5 percent nor greater than 10
percent of a community college district’s apportionment base for
the preceding fiscal year.

end insert begin insert

(7) Unless otherwise agreed upon by the board of governors,
apportionment reductions shall be allocated proportionally based
on the most recent levels of apportionment revenues.

end insert begin insert

(8) (A) It is the intent of the Legislature, consistent with
direction provided in the 2014-15 Budget Act, that apportionment
growth funding be expended for purposes of increasing the number
of FTES in courses or programs that support the primary missions
of the segment.

end insert begin insert

(B) (i) Notwithstanding Section 10231.5 of the Government
Code, on or before October 15, 2015, and each year thereafter,
the chancellor shall report to the Legislature on the course sections
and FTES added at each community college that received
apportionment growth funding in the prior fiscal year, including
the number of course sections and if any course sections and FTES
were added that are within the primary missions of the segment
and those that are not within the primary missions of the segment.

end insert begin insert

(ii) A report submitted to the Legislature pursuant to clause (i)
shall be submitted in compliance with Section 9795 of the
Government Code.

end insert begin insert

(C) For purposes of this section, “primary missions of the
segment” means credit courses and those noncredit courses
specified in paragraphs (2) to (6), inclusive, of subdivision (a) of
Section 84757.

end insert

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 84750.6 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 84750.6. end insert   

(a) Notwithstanding Section 84750.5, the board of
governors shall provide the San Francisco Community College
District with revenues, as specified in subdivision (b), if, on the
effective date of the act that adds this section, both of the following
conditions are satisfied:

(1) The board of governors finds that the community college
district or a campus of the community college district is in
imminent jeopardy of losing its accreditation.

(2) The board of governors has exercised its authority pursuant
to Section 84040 of this code and Section 58312 of Title 5 of the
California Code of Regulations as that regulation read on April
15, 2014.

(b) If the number of full-time equivalent students (FTES) of the
community college district decreases from the number in the
2012-13 fiscal year, the board of governors shall provide revenues
to the community college district, as follows:

(1) For the 2014-15 fiscal year, an amount not less than the
total amount that the community college district would receive if
the level of attendance of FTES was the same level of attendance
as in the 2012-13 fiscal year.

(2) For the 2015-16 fiscal year, an amount not less than 95
percent of the total amount that the community college district
would receive if the level of attendance of FTES was the same level
of attendance as in the 2012-13 fiscal year.

(3) (A)   For the 2016-17 fiscal year, an amount not less than 90
percent of the total amount that the community college district
would receive if the level of attendance of FTES was the same level
of attendance as in the 2012-13 fiscal year.

(B) Funds shall be provided under this paragraph only if the
Fiscal Crisis Management Assistance Team makes a finding no
sooner than April 1, 2016, that the San Francisco Community
College District is meeting or exceeding all of the following
benchmarks:

(i) Effective fiscal controls and systems are in place.

(ii) The City College of San Francisco has, and is adhering to,
prudent fiscal policies and practices, as corroborated by an
analysis of multiyear projections of no less than three fiscal years
commencing with the 2016-17 fiscal year.

(iii) The City College of San Francisco is applying resources
in accordance with a budget plan approved by the special trustee.

(iv) The City College of San Francisco is maintaining
appropriate fiscal reserves.

(v) The City College of San Francisco has, and is adhering to,
a viable plan to address long-term liabilities including, but not
necessarily limited to, “other postemployment benefits,” as that
term is used in accordance with generally accepted accounting
principles defined by the Governmental Accounting Standards
Board as of April 15, 2014.

(c) The amounts calculated in paragraphs (1) to (3), inclusive,
of subdivision (b) shall be adjusted by the chancellor to reflect
cost-of-living adjustments, deficits in apportionments, or both, as
appropriate for the applicable fiscal years.

(d) Subdivision (b) shall only be used to determine the
apportionment funding to be allocated to the San Francisco
Community College District. In computing statewide entitlements
to funding based upon the attendance of FTES, the San Francisco
Community College District shall not be credited with more FTES
than were actually enrolled and in attendance.

(e) Subdivision (b) shall only be operative for a fiscal year in
which the San Francisco Community College District is in
compliance with Section 51016 of Title 5 of the California Code
of Regulations as that regulation read on April 15, 2014.

(f)    It is the intent of the Legislature that any amounts necessary
to make the apportionments required pursuant to subdivision (b)
be drawn from the state general apportionment revenues for
community college districts.

(g) (1) The Chancellor of the City College of San Francisco
shall submit all of the following to the appropriate policy and
fiscal committees of the Legislature, the Office of the Governor,
the Legislative Analyst’s Office, and the Department of Finance
on or before April 15, 2015:

(A) An overview of the college’s current accreditation status,
including a description of any identified accreditation deficiencies
and activities underway to address those deficiencies.

(B) Enrollment totals for the current and prior years.

(C) Updated enrollment projections for the two subsequent
fiscal years.

(D) The number of course sections offered in the current and
prior fiscal years.

(E) A thorough explanation of the district’s level of budgetary
reserves and sources of revenue.

(F) A thorough multiyear budget plan that explains, at a
minimum, both revenue sources and areas of expenditure.

(2) The Chancellor of the City College of San Francisco shall
submit updates to the report submitted under paragraph (1) on or
before the following dates:

(A) October 15, 2015.

(B) April 15, 2016.

(C) October 15, 2016, but only if funding is provided pursuant
to paragraph (3) of subdivision (b).

(D) April 15, 2017, but only if funding is provided pursuant to
paragraph (3) of subdivision (b).

end insert

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 84751 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

84751.  

begin insert (a) end insert begin insert   end insert In calculating each community college district’s
revenue level for each fiscal year pursuant to subdivision (a) of
Section begin delete 84750 end delete begin insert 84750.5 end insert , the board of governors shall subtract, from
the total revenues owed, all of the following:

begin delete

(a)

end delete

begin insert (1) end insert  The local property tax revenue specified by law for general
operating support, exclusive of bond interest and redemption.

begin delete

(b)

end delete

begin insert (2) end insert  Ninety-eight percent of the fee revenues collected pursuant
to Section 76300.

begin delete

(c)

end delete

begin insert (3) end insert  Timber yield tax revenues received pursuant to Section
38905.1 of the Revenue and Taxation Code.

begin delete

(d)

end delete

begin insert (4) end insert  Any amounts received pursuant to Section 33492.15,
33607.5, or 33607.7 of the Health and Safety Code, and Section
33676 of the Health and Safety Code begin insert , end insert as amended by Section 2 of
Chapter 1368 of the Statutes of 1990, that are considered to be
from property tax revenues pursuant to those sections for begin delete the end delete
purposes of community college revenue levels, except those
amounts that are allocated exclusively for educational facilities.

begin insert

(b) Notwithstanding subdivision (a), for the 2013-14 fiscal year,
revenues received pursuant to Sections 34177, 34179.5, 34179.6,
and 34188 of the Health and Safety Code after April 15, 2014,
shall be counted as revenues received in the 2014-15 fiscal year.

end insert begin insert

(c) Notwithstanding subdivision (a), for the 2014-15 fiscal year,
revenues received pursuant to Sections 34177, 34179.5, 34179.6,
and 34188 of the Health and Safety Code after April 15, 2015,
shall be counted as revenues received in the 2015-16 fiscal year.

end insert begin insert

(d) Notwithstanding subdivision (a), for the 2015-16 fiscal year,
revenues received pursuant to Sections 34177, 34179.5, 34179.6,
and 34188 of the Health and Safety Code after April 15, 2016,
shall be counted as revenues received in the 2016-17 fiscal year.

end insert

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 84754.6 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 84754.6. end insert   

(a) The Chancellor of the California Community
Colleges, in coordination with community college stakeholder
groups, the appropriate fiscal and policy committees of the
Legislature, and the Department of Finance, shall develop, and
the board of governors shall adopt, a framework of indicators
designed to measure the ongoing condition of a community
college’s operational environment in the following areas:

(1) Accreditation status.

(2) Fiscal viability.

(3) Student performance and outcomes.

(4) Programmatic compliance with state and federal guidelines.

(b) As a condition of receipt of funds appropriated for purposes
of Article 1 (commencing with Section 78210) of Chapter 2 of Part
48 of Division 7, each community college within a community
college district shall develop, adopt, and publicly post a goals
framework that addresses at least all of the areas specified in
subdivision (a).

(c) Before the commencement of the 2015-16 fiscal year, and
before the commencement of each fiscal year thereafter, the
Chancellor of the California Community Colleges shall publicly
post both of the following:

(1) Annually developed systemwide goals adopted by the board
of governors.

(2) Locally developed and adopted community college or
community college district goals and targets.

(d) Subject to the availability of funding in the annual Budget
Act, the board of governors and the Chancellor of the California
Community Colleges shall assess the degree to which each
community college district is improving its outcomes in regard to
the areas specified in subdivision (a) and any additional issues
addressed in the goals frameworks described in paragraph (b),
and shall offer technical assistance to community college districts
that are not improving.

(e) If a community college district is receiving technical
assistance pursuant to subdivision (d), the community college
district shall submit a turnaround plan that details all of the
following:

(1) The problem the technical assistance is attempting to solve.

(2) How the identified problem will be addressed in a plan
adopted by the governing board of the community college district.

(3) A timetable of major milestones for improvement.

(4) Updates that will be submitted to the Chancellor of the
California Community Colleges on the outcomes in regard to those
milestones, as scheduled by the Chancellor.

end insert

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 87482 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

87482.  

(a) (1) Notwithstanding Section 87480, the governing
board of a community college district may employ any qualified
individual as a temporary faculty member for a complete school
year, but not less than a complete semester or quarter during a
school year. The employment of those persons shall be based upon
the need for additional faculty during a particular semester or
quarter because of the higher enrollment of students during that
semester or quarter as compared to the other semester or quarter
in the academic year, or because a faculty member has been granted
leave for a semester, quarter, or year, or is experiencing long-term
illness, and shall be limited, in number of persons so employed,
to that need, as determined by the governing begin delete board. end delete begin insert board of the
community college district. end insert

(2) Employment of a person under this subdivision may be
pursuant to contract fixing a salary for the entire semester or
quarter.

(b) A person, other than a person serving as clinical nursing
faculty and exempted from this subdivision pursuant to paragraph
(1) of subdivision (c), shall not be employed by any one district
under this section for more than two semesters or three quarters
within any period of three consecutive years.

(c) (1) Notwithstanding subdivision (b), a person serving as
full-time clinical nursing faculty or as part-time clinical nursing
faculty teaching the hours per week described in Section 87482.5
may be employed by any one begin insert community college end insert district under
this section for up to four semesters or six quarters within any
period of three consecutive academic years between July 1, 2007,
and begin delete June 30, 2014, end delete begin insert December 31, 2015, end insert inclusive.

(2) A begin insert community college end insert district that employs faculty pursuant
to this subdivision shall provide data to the chancellor’s office as
to the number of faculty members hired under this subdivision,
and what the ratio of full-time to part-time faculty was for each of
the three academic years prior to the hiring of faculty under this
subdivision and for each academic year for which faculty is hired
under this subdivision. This data shall be submitted, in writing, to
the chancellor’s office on or before June 30, 2012.

(3) The begin delete chancellor end delete begin insert Chancellor of the California Community
Colleges end insert shall report, in writing, to the Legislature and the
Governor on or before September 30, 2012, in accordance with
data received pursuant to paragraph (2), the number of begin insert community
college end insert districts that hired faculty under this subdivision, the
number of faculty members hired under this subdivision, and what
the ratio of full-time to part-time faculty was for these begin insert community
college end insert districts in each of the three academic years prior to the
operation of this subdivision and for each academic year for which
faculty is hired under this subdivision.

(4) A begin insert community college end insert district may not employ a person
pursuant to this subdivision if the hiring of that person results in
an increase in the ratio of part-time to full-time nursing faculty in
that district.

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 89295 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

89295.  

(a) For purposes of this section, the following terms
are defined as follows:

(1) The “four-year graduation rate” means the percentage of a
cohort begin delete that end delete begin insert of undergraduate students who end insert entered the university
as freshmen begin delete that successfully graduated end delete begin insert at any campus and
graduated from any campus end insert within four years.

(2) The “six-year graduation rate” means the percentage of a
cohort begin delete that end delete begin insert of undergraduate students who end insert entered the university
as freshmen begin delete that successfully graduated end delete begin insert at any campus and
graduated from any campus end insert within six years.

(3) The “two-year transfer graduation rate” means the percentage
of a cohort begin delete that end delete begin insert of undergraduate students who end insert entered the
university begin insert at any campus end insert as junior-level transfer students from the
California Community Colleges begin delete that successfully graduated end delete begin insert and
graduated from any campus end insert within two years.

(4) The “three-year transfer graduation rate” means the
percentage of a cohort begin delete that end delete begin insert of undergraduate students who end insert entered
the university as junior-level transfer students from the California
Community Colleges begin delete that successfully graduated end delete begin insert at any campus
and graduated from any campus end insert within three years.

begin insert

(5) The “four-year transfer graduation rate” means the
percentage of a cohort of undergraduate students who entered the
university as junior-level transfer students from the California
Community Colleges at any campus and graduated from any
campus within four years.

end insert begin delete

(5)

end delete

begin insert (6) end insert  “Low-income begin delete students” end delete begin insert student end insert begin insert ” end insert means begin delete students end delete begin insert an
undergraduate student end insert who begin delete receive a Pell Grant at any time during
their matriculation at the institution. end delete begin insert has an expected family
contribution, as defined in subdivision (g) of Section 69432.7, at
any time during the student’s matriculation at the institution that
would qualify the student to receive a federal Pell Grant. The
calculation of a student’s expected family contribution shall be
based on the Free Application for Federal Student Aid (FAFSA)
application or an application determined by the California Student
Aid Commission to be equivalent to the FAFSA application
submitted by that applicant. end insert

(b) Commencing with the 2013-14 academic year, the California
State University shall report, by March begin delete 1 end delete begin insert 15 end insert of each year, on the
following performance measures for the preceding academic year,
to inform budget and policy decisions and promote the effective
and efficient use of available resources:

(1) The number of begin insert California Community College end insert transfer
students enrolled begin delete annually from the California Community
Colleges, end delete and the percentage of begin insert California Community College end insert
transfer students as a proportion of the total begin delete undergraduate student
population. end delete begin insert number of undergraduate students enrolled. end insert

begin insert

(2) The number of new California Community College transfer
students enrolled and the percentage of new California Community
College transfer students as a proportion of the total number of
new undergraduate students enrolled.

end insert begin delete

(2)

end delete

begin insert (3) end insert  The number of low-income students enrolled begin delete annually end delete and
the percentage of low-income students as a proportion of the total
begin delete student population. end delete begin insert number of undergraduate students enrolled. end insert

begin insert

(4) The number of new low-income students enrolled and the
percentage of low-income students as a proportion of the total
number of new undergraduate students enrolled.

end insert begin delete

(3)

end delete

begin insert (5) end insert  The begin delete systemwide end delete four-year begin delete and six-year end delete graduation begin delete rates end delete begin insert rate end insert
for begin delete each cohort of end delete students begin insert who entered the university four years
prior end insert and, separately, for low-income begin delete students. end delete begin insert students in that
cohort. end insert

begin insert

(6) The four-year and six-year graduation rates for students
who entered the university six years prior and, separately, for
low-income students in that cohort.

end insert begin delete

(4)

end delete

begin insert (7) end insert  The begin delete systemwide end delete two-year begin delete and three-year end delete transfer graduation
begin delete rates for each cohort of end delete begin insert rate for end insert students begin insert who entered the university
two years prior end insert and, separately, for begin delete each cohort of end delete low-income
begin delete students. end delete begin insert students in that cohort. end insert

begin insert

(8) The two-year and three-year transfer graduation rates for
students who entered the university three years prior and,
separately, for low-income students in that cohort.

end insert begin insert

(9) The two-year, three-year, and four-year transfer graduation
rates for students who entered the university four years prior and,
separately, for low-income students in that cohort.

end insert begin delete

(5)

end delete

begin insert (10) end insert  The number of degree completions annually, in total and
for the following categories:

(A) Freshman entrants.

(B)  begin delete Transfer end delete begin insert California Community College transfer end insert students.

(C) Graduate students.

(D) Low-income students.

begin delete

(6)

end delete

begin insert (11) end insert  The percentage of begin delete first-year undergraduates end delete begin insert freshman
entrants end insert who have earned sufficient course credits by the end of
their first year of enrollment to indicate begin insert that end insert they will begin delete complete a
degree in end delete begin insert graduate within end insert four years.

begin insert

(12) The percentage of California Community College transfer
students who have earned sufficient course credits by the end of
their first year of enrollment to indicate that they will graduate
within two years.

end insert begin delete

(7)

end delete

begin insert (13) end insert  For all students, the total amount of funds received from
all sources identified in subdivision (c) of Section 89290 for the
year, divided by the number of degrees awarded that same year.

begin delete

(8)

end delete

begin insert (14) end insert  For undergraduate students, the total amount of funds
received from all sources identified in subdivision (c) of Section
89290 for the year expended for undergraduate education, divided
by the number of undergraduate degrees awarded that same year.

begin delete

(9)

end delete

begin insert (15) end insert  The average number of begin insert California State University end insert course
credits begin delete accumulated by students at the time they complete their
degrees, disaggregated by freshman entrants and transfers. end delete begin insert and the
total course credits, including credits accrued at other institutions,
accumulated by all undergraduate students who graduated, and
separately for freshman entrants and California Community
College transfer students. end insert

begin delete

(10)

end delete

begin insert (16) end insert  (A) The number of degree completions in science,
technology, engineering, and mathematics (STEM) fields,
begin delete disaggregated by end delete begin insert in total, and separately for end insert undergraduate
students, graduate students, and low-income students.

(B) For purposes of subparagraph (A), “STEM fields” include,
but are not necessarily limited to, all of the following: computer
and information sciences, engineering and engineering
technologies, biological and biomedical sciences, mathematics
and statistics, physical sciences, and science technologies.

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 89712 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 89712. end insert   

(a) A campus of the California State University, or the
Chancellor of the California State University, or both, shall not
approve a student success fee, as defined in subdivision (d), before
January 1, 2016.

(b) During the 2014-15 fiscal year, the chancellor shall conduct
a review of the California State University Student Fee Policy
relating to student success fees and recommend to the trustees
changes to the fee policy. In conducting the review and preparing
recommended changes to the fee policy, the chancellor shall
consider all of the following:

(1) The approval process for student success fees, including,
but not limited to, the benefit of utilizing a student election or the
consultative process in the approval process.

(2) The need for statewide policies governing a student election,
the consultative process, or both, for approving a proposed student
success fee, including, but not necessarily limited to, policies
requiring campuses to issue a voter pamphlet, or other
informational document, or both, that provides an objective
analysis of the proposed fee, a detailed description of the proposed
fee uses, statements for and against the proposed fee action, and
a notification to students regarding the dates, times, and locations
available to either vote, for purposes of a student election, or
confer with campus leadership, for purposes of the consultative
process, regarding a proposed fee.

(3) The means to improve transparency and accountability
regarding a campus’ use of student success fee funds for the benefit
of members of the campus’ community, including, but not
necessarily limited to, students, faculty, staff, and the general
public.

(4) The development of an annual report describing the use of
student success fee funds by each campus in the prior academic
year, to be posted on each campus’ Internet Web site.

(5) The approval of a statewide policy to prohibit a campus
from implementing a student success fee for a period exceeding
five years unless a continuance of that fee is approved by an
affirmative vote of the majority of the student body voting, or
through the consultative process. Approval to continue an approved
fee shall be required every five years.

(6) The impact of student success fees on campuses’ academic
programs and services available for students, including, but not
necessarily limited to, low-income students.

(7) A provision for financial assistance to offset the cost of the
fee for low-income students.

(c) (1) The chancellor shall report to the Department of Finance
and the appropriate fiscal and policy committees of the Legislature,
on or before February 1, 2015, regarding the chancellor’s
proposed revisions to the California State University Student Fee
Policy related to student success fees.

(2) This subdivision is inoperative on January 1, 2019, pursuant
to Section 10231.5 of the Government Code.

(d) For purposes of this section, the following terms have the
following meanings:

(1) “Low-income student” means an undergraduate student
who has an expected family contribution, as defined in subdivision
(g) of Section 69432.7, at any time during the student’s
matriculation at the institution that would qualify the student to
receive a federal Pell Grant. The calculation of a student’s
expected family contribution shall be based on the Free Application
for Federal Student Aid (FAFSA) application or an application
determined by the California Student Aid Commission to be
equivalent to the FAFSA application submitted by that applicant.

(2) A “student success fee” is a type of category II
campus-based mandatory fee that must be paid by a student to
enroll or attend a campus of the California State University, as
determined by that campus or the Chancellor of the California
State University.

end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Article 5 (commencing with Section 89770) is added
to Chapter 6 of Part 55 of Division 8 of Title 3 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 5. end insert   Use of General Fund Support Appropriations for
Capital Expenditures and Capital Outlay Projects

 

begin insert 89770. end insert   

(a) (1) The California State University may pledge,
in addition to any of its other revenues that the university chooses
to pledge, its annual General Fund support appropriation less the
amount of that appropriation required to fund general obligation
bond payments and State Public Works Board rental payments, to
secure the payment of debt obligations issued by the Trustees of
the California State University pursuant to the State University
Revenue Bond Act of 1947 (Article 2 (commencing with Section
90010) of Chapter 8).

(2) To the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature.

(3) The university may fund debt service for capital expenditures
defined in subdivision (b), and the costs or expenses incidental to
the issuance and sale of bonds to finance those costs, including,
but not limited to, capitalized interest on the bonds, from its
General Fund support appropriation pursuant to Sections 89772
and 89773.

(4) The state hereby covenants with the holders of the
university’s obligations, secured by the pledge of the university
authorized by this section, so long as any of the obligations referred
to in this subdivision remain outstanding, the state will not impair
or restrict the ability of the university to pledge any support
appropriation or support appropriations that may be enacted for
the university. The university may include this covenant of the state
in the agreements or other documents underlying the university’s
obligations to this effect.

(b) For purposes of this section, “capital expenditures” means
any of the following:

(1) The costs to acquire real property to design, construct, or
equip academic facilities to address seismic and life safety needs,
enrollment growth, or modernization of out-of-date facilities, and
renewal or expansion of infrastructure to serve academic
programs.

(2) The debt service amount associated with refunding,
defeasing, or retiring State Public Works Board lease revenue
bonds.

(3) The costs to design, construct, or equip energy conservation
projects.

(4) The costs of deferred maintenance of academic facilities
and related infrastructure.

(c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount
to support the California State University.

(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future increases
in student tuition, additional employee layoffs, or reductions in
employee compensation at the California State University.

begin insert 89771. end insert   

(a) The California State University may fund
pay-as-you-go capital outlay projects from its General Fund
support appropriation pursuant to Sections 89772 and 89773.

(b) For purposes of this section, a “capital outlay project”
means the costs to acquire real property to design, construct, or
equip academic facilities to address seismic and life safety needs,
enrollment growth, or modernization of out-of-date facilities;
renewal or expansion of infrastructure to serve academic
programs; and the costs to design, construct, or equip energy
conservation projects.

begin insert 89772. end insert   

(a) (1) Commencing with the 2014-15 fiscal year, and
for each fiscal year thereafter, if the California State University
plans to use any of its support appropriation in the annual budget
for the subsequent fiscal year for capital expenditures, pursuant
to and as defined in paragraph (1) of subdivision (b) of Section
89770, for capital outlay projects pursuant to Section 89771, it
shall simultaneously submit, on or before September 1, 10 months
before the commencement of that fiscal year, a report to the
committees in each house of the Legislature that consider the State
Budget, the budget subcommittees in each house of the Legislature
that consider appropriations for the California State University,
and the Department of Finance.

(2) The report shall detail the scope of all capital expenditures
and capital outlay projects and how those capital expenditures
and capital outlay projects will be funded, and it shall provide the
same level of detail as a capital outlay budget change proposal.

(3) The Department of Finance shall review the report and
submit, by February 1, a list of preliminarily approved capital
expenditures and capital outlay projects to the committees in each
house of the Legislature that consider the State Budget and the
budget subcommittees in each house of the Legislature that
consider appropriations for the California State University. These
committees may review and respond to the list of preliminarily
approved capital expenditures and capital outlay projects before
April 1.

(4) The Department of Finance shall submit a final list of
approved capital expenditures and capital outlay projects to the
California State University by no earlier than April 1, three months
before the commencement of the fiscal year of the planned
expenditures.

(b) The Department of Finance may approve capital
expenditures, as defined in paragraphs (3) and (4) of subdivision
(b) of Section 89770, no sooner than 30 days after submitting, in
writing, a list of expenditures being considered for approval to
the chairpersons of the committees in each house of the Legislature
that consider appropriations, the chairpersons of the committees
and the appropriate subcommittees in each house of the Legislature
that consider the State Budget, and the Chairperson of the Joint
Legislative Budget Committee.

(c) The California State University shall not use its General
Fund support appropriation to fund any capital expenditures, as
defined in paragraphs (1), (3), and (4) of subdivision (b) of Section
89770, or capital outlay projects defined in subdivision (b) of
Section 89771 before receiving approval from the Department of
Finance pursuant to this section.

(d) (1) For the 2014-15 fiscal year only, if the California State
University plans to use any of its support appropriation in the
annual budget for the 2014-15 fiscal year for capital expenditures
defined in paragraph (1) of subdivision (b) of Section 89770 or
for capital outlay projects pursuant to Section 89771, the
California State University shall simultaneously submit, on or
before August 1, 2014, a report to the committees in each house
of the Legislature that consider the State Budget, the budget
subcommittees in each house of the Legislature that consider
appropriations for the California State University, and the
Department of Finance. This report shall detail the scope of all
capital expenditures and capital outlay projects and how those
capital expenditures and capital outlay projects will be funded.
This report shall include the same level of detail as a capital outlay
budget change proposal.

(2) The Department of Finance shall review, by November 1,
2014, the report and submit a list of preliminarily approved capital
expenditures and capital outlay projects to the committees in each
house of the Legislature that consider the State Budget, and the
budget subcommittees in each house of the Legislature that
consider appropriations for the California State University. These
committees may review and respond to the list of preliminarily
approved capital expenditures and capital outlay projects before
December 1, 2014.

(3) The Department of Finance shall submit a final list of
approved projects to the California State University no earlier
than December 1, 2014.

(4) The California State University shall not proceed with any
capital expenditures defined in paragraph (1) of subdivision (b)
of Section 89770 or capital outlay projects defined in Section
89771, before receiving approval from the Department of Finance
pursuant to this subdivision.

(e) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2015-16 fiscal year, on or before February
1 of each fiscal year, the California State University shall
simultaneously submit a progress report to the Joint Legislative
Budget Committee and the Department of Finance detailing the
scope, funding, and current status of all capital expenditures
undertaken pursuant to Section 89770 and for all capital outlay
projects undertaken pursuant to Section 89771.

begin insert 89773. end insert   

The California State University shall manage its debt
programs in a manner so that not more than 12 percent of its
General Fund support appropriation, less the amount of that
appropriation that is required to fund general obligation bond
payments and State Public Works Board rental payments, is used
for the total of both of the following:

(a) Debt service for capital expenditures pursuant to Section
89770.

(b) Pay-as-you-go capital outlay projects pursuant to Section
89771.

begin insert 89774. end insert   

Notwithstanding any other law, excluding Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code, the California State University may proceed
with capital expenditures and capital outlay projects pursuant to
Sections 89772 and 89773 without the need for any further
limitations or approvals, except those delineated in Sections 89772
and 89773.

end insert

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 90083 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 90083. end insert   

The board may pledge revenues received in accordance
with Section 89770 to secure bonds issued in accordance with this
article for capital expenditures, as defined in Section 89770, or
for projects, as defined in Section 90011, and may pay all costs
and expenses incident to the issuance and sale of the bonds,
including, but not limited to, capitalized interested on bonds, from
the proceeds of the sale of the bonds.

end insert

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 92493 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

92493.  

(a)  begin insert (1) end insert begin insert   end insert The University of California may pledge, along
with its other revenues, its annual General Fund support
appropriation less the amount of that appropriation that is required
to fund general obligation bond payments and the State Public
Works Board rental payments, to secure the payment of any of the
university’s general revenue bonds or commercial paper associated
with the general revenue bond program. begin delete To end delete

begin insert (2) end insert begin insert   end insert begin insert To end insert the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature. begin delete The end delete

begin insert (3) end insert begin insert   end insert begin insert T end insert begin insert he end insert university may fund debt service for capital expenditures
defined in subdivision (b) from its General Fund support
appropriation pursuant to Sections 92495 and 92495.5. begin delete The end delete

begin insert (4) end insert begin insert   end insert begin insert The end insert state hereby covenants with the holders of the
university’s obligations secured by the pledge of the university
permitted by this section that, so long as any of the obligations
referred to in this subdivision remain outstanding, the state will
not impair or restrict the ability of the university to pledge any
support appropriation or support appropriations that may be enacted
for the university. The university may include this covenant of the
state in the agreements or other documents underlying the
university’s obligations to this effect.

(b) For purposes of this section, “capital expenditures” begin delete shall
mean (1) the end delete begin insert means any of the following: end insert

begin insert (1) end insert begin insert   end insert begin insert The end insert costs to design, construct, or equip academic facilities
to address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion
of infrastructure to serve academic begin delete programs, or (2) the end delete begin insert programs. end insert

begin insert (2) end insert begin insert   end insert begin insert T end insert begin insert he end insert debt service amount associated with refunding,
defeasing, or retiring State Public Works Board lease revenue
bonds.

begin insert

(3) The costs to design, construct, or equip energy conservation
projects.

end insert

(c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount to
support the University of California.

(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future increases
in student tuition, additional employee layoffs, or reductions in
employee compensation at the University of California.

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 92494 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

92494.  

(a) The University of California may fund
pay-as-you-go capital outlay projects from its General Fund support
appropriation pursuant to Sections 92495 and 92495.5.

(b) For purposes of this section, “capital outlay project” begin delete shall
mean the end delete begin insert means both of the following: end insert

begin insert (1) end insert begin insert   end insert begin insert The end insert costs to design, construct, or equip academic facilities
to address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion
of infrastructure to serve academic programs.

begin insert

(2) The costs to design, construct, or equip energy conservation
projects.

end insert

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 92495 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

92495.  

(a)  begin insert (1) end insert begin insert   end insert Commencing with the 2013-14 fiscal year and
for each fiscal year thereafter, if the University of California plans
to use any of its support appropriation in the annual budget for the
subsequent fiscal year for capital expenditures pursuant to Section
92493, as defined in paragraph (1) of subdivision (b) of that
section, or for capital outlay projects pursuant to Section 92494,
begin insert as defined in paragraph (1) of subdivision (b) of that section, end insert it
shall simultaneously submit, on or before September 1 begin delete nine end delete begin insert , 10 end insert
months before the commencement of that fiscal year, a report to
the Joint Legislative Budget Committee and the Department of
Finance. begin delete This end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert report shall detail the scope of begin delete each capital outlay project
or expenditure end delete begin insert capital expenditures or the capital outlay project end insert
and how begin delete it end delete begin insert the capital expenditures or the capital outlay project end insert
will be funded, and it shall provide the same level of detail as a
capital outlay budget change proposal. begin delete The end delete

begin insert (3) end insert begin insert   end insert begin insert The end insert Department of Finance shall review the report and
submit a list of preliminarily approved begin insert capital expenditures and
capital outlay end insert projects to the Joint Legislative Budget Committee
by February 1. The Department of Finance shall submit a final list
of approved begin insert capital expenditures and capital outlay end insert projects to
the University of California no earlier than April 1, three months
before the commencement of the fiscal year of the planned
expenditures. begin delete The end delete

begin insert

(b) The Department of Finance may approve capital
expenditures defined in paragraph (3) of subdivision (b) of Section
92493, or capital outlay projects defined in paragraph (2) of
subdivision (b) of Section 92494, no sooner than 30 days after
submitting, in writing, a list of expenditures and projects being
considered for approval to the chairpersons of the committees in
each house of the Legislature that consider appropriations, the
chairpersons of the committees and the appropriate subcommittees
in each house of the Legislature that consider the state budget,
and the Chairperson of the Joint Legislative Budget Committee.

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert University of California shall not begin delete proceed with any end delete begin insert use
its General Fund end insert begin insert support appropriation to fund a end insert capital
begin delete expenditures pursuant to Section 92493, as end delete begin insert expenditure end insert defined
in paragraph (1) begin insert or (3) end insert of subdivision (b) of begin delete that section, end delete begin insert Section
92493, end insert or capital outlay begin delete projects pursuant to end delete begin insert project defined in
subdivision (b) of end insert Section 92494, begin delete prior to end delete begin insert before end insert receiving approval
from the Department of Finance pursuant to this begin delete subdivision end delete
begin insert section end insert .

begin delete

(b)

end delete

(d)  begin insert (1) end insert begin insert   end insert For the 2013-14 fiscal year only, if the University of
California plans to use any of its support appropriation in the
annual budget for the 2013-14 fiscal year for capital expenditures
pursuant to Section 92493, as defined in paragraph (1) of
subdivision (b) of that section, or for capital outlay projects
pursuant to Section 92494, it shall simultaneously submit, on or
before August 1 of that fiscal year, a report to the Joint Legislative
Budget Committee and the Department of Finance. This report
shall detail the scope of each capital outlay project or expenditure
and how it will be funded, and it shall provide the same level of
detail as a capital outlay budget change proposal. begin delete The end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert Department of Finance shall review the report and
submit a list of preliminarily approved projects to the Joint
Legislative Budget Committee by November 1 of that fiscal year.
begin delete The end delete

begin insert (3) end insert begin insert   end insert begin insert The end insert Department of Finance shall submit a final list of
approved projects to the University of California no earlier than
December 1 of that fiscal year. begin delete The end delete

begin insert (4) end insert begin insert   end insert begin insert The end insert University of California shall not proceed with any
capital expenditures pursuant to Section 92493, as defined in
paragraph (1) of subdivision (b) of that section, or capital outlay
projects pursuant to Section 92494, begin delete prior to end delete begin insert before end insert receiving
approval from the Department of Finance pursuant to this
subdivision.

begin delete

(c)

end delete

begin insert (e) end insert  Notwithstanding subdivision (b), the University of California
may use the authority provided in Section 92493 for the Merced
Classroom and Academic Office Building, as specified in Provision
3 of Item 6440-001-0001 of Section 2.00 of the Budget Act of
2013.

begin delete

(d)

end delete

begin insert (f) end insert  Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2014-15 fiscal year, on or before February
1 of each fiscal year, the University of California shall
simultaneously submit a progress report to the Joint Legislative
Budget Committee and the Department of Finance detailing the
scope, funding, and current status of begin delete each end delete begin insert all end insert capital begin delete expenditure end delete
begin insert expenditures end insert undertaken pursuant to Section 92493 begin delete , as defined in
paragraph (1) of subdivision (b) of that section, end delete and for begin delete each end delete begin insert all end insert
capital outlay begin delete project end delete begin insert projects end insert undertaken pursuant to Section
92494.

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 92495.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

92495.5.  

The university shall manage its general revenue bond
program in a manner so that not more than 15 percent of its General
Fund support appropriation, less the amount of that appropriation
that is required to fund general obligation bond payments and State
Public Works Board rental payments, is used for the total of all of
the following:

(a) Debt service for capital expenditures pursuant to Section
92493.

(b) Pay-as-you-go capital outlay begin insert projects end insert pursuant to Section
92494.

(c) State Public Works Board rental payments.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 92495.6 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 92495.6. end insert   

Notwithstanding Sections 13332.11 and 13332.19 of
the Government Code or any other law, the University of California
may proceed with capital expenditures and capital outlay projects
pursuant to Sections 92495 and 92495.5 without any further
limitations or approvals, except those delineated in Sections 92495
and 92495.5.

end insert

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 92675 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

92675.  

(a) For purposes of this section, the following terms
are defined as follows:

(1) The “four-year graduation rate” means the percentage of a
cohort begin delete that end delete begin insert of undergraduate students who end insert entered the university
as freshmen begin delete that successfully graduated end delete begin insert at any campus and
graduated from any campus end insert within four years.

(2) The “two-year transfer graduation rate” means the percentage
of a cohort begin delete that end delete begin insert of undergraduate students who end insert entered the
university begin insert at any campus end insert as junior-level transfer students from the
California Community Colleges begin delete that successfully end delete begin insert and end insert graduated
begin insert from any campus end insert within two years.

(3) “Low-income begin delete students” end delete begin insert student end insert begin insert ” end insert means begin delete students end delete begin insert an
undergraduate student end insert who begin delete receive a Pell Grant at any time during
their matriculation at the institution. end delete begin insert has an expected family
contribution, as defined in subdivision (g) of Section 69432.7, at
any time during the student’s matriculation at the institution that
would qualify the student to receive a federal Pell Grant. The
calculation of a student’s expected family contribution shall be
based on the Free Application for Federal Student Aid (FAFSA)
application or an application determined by the California Student
Aid Commission to be equivalent to the FAFSA application
submitted by that applicant. end insert

(b) Commencing with the 2013-14 academic year, the
University of California shall report, by March begin delete 1 end delete begin insert 15 end insert of each year,
on the following performance measures for the preceding academic
year, to inform budget and policy decisions and promote the
effective and efficient use of available resources:

(1) The number of transfer students enrolled begin delete annually end delete from the
California Community Colleges, and the percentage of begin insert California
Community College end insert transfer students as a proportion of the total
begin delete undergraduate student population. end delete begin insert number of undergraduate
students enrolled. end insert

begin insert

(2) The number of new transfer students enrolled from the
California Community Colleges, and the percentage of California
Community College transfer students as a proportion of the total
number of new undergraduate students enrolled.

end insert begin delete

(2)

end delete

begin insert (3) end insert  The number of low-income students enrolled begin delete annually end delete and
the percentage of low-income students as a proportion of the total
begin delete student population. end delete begin insert number of undergraduate students enrolled. end insert

begin insert

(4) The number of new low-income students enrolled and the
percentage of low-income students as a proportion of the total
number of new undergraduate students enrolled.

end insert begin delete

(3)

end delete

begin insert (5) end insert  The begin delete systemwide end delete four-year graduation begin delete rates end delete begin insert rate end insert for begin delete each
cohort of end delete students begin insert who entered the university four years prior end insert and,
separately, for begin delete each cohort of end delete low-income begin delete students. end delete begin insert students in
that cohort. end insert

begin delete

(4)

end delete

begin insert (6) end insert  The begin delete systemwide end delete two-year transfer graduation begin delete rates end delete begin insert rate end insert for
begin delete each cohort of end delete students begin insert who entered the university two years prior end insert
and, separately, for begin delete each cohort of end delete low-income begin delete students. end delete begin insert students
in that cohort. end insert

begin delete

(5)

end delete

begin insert (7) end insert  The number of degree begin delete completions annually, end delete begin insert completions, end insert
in total and for the following categories:

(A) Freshman entrants.

(B)  begin delete Transfer end delete begin insert California Community College transfer end insert students.

(C) Graduate students.

(D) Low-income students.

begin delete

(6)

end delete

begin insert (8) end insert  The percentage of begin delete first-year undergraduates end delete begin insert freshman
entrants end insert who have earned sufficient course credits by the end of
their first year of enrollment to indicate they will begin delete complete a degree
in end delete begin insert graduate within end insert four years.

begin insert

(9) The percentage of California Community College transfer
students who have earned sufficient course credits by the end of
their first year of enrollment to indicate they will graduate within
two years.

end insert begin delete

(7)

end delete

begin insert (10) end insert  For all students, the total amount of funds received from
all sources identified in subdivision (c) of Section 92670 for the
year, divided by the number of degrees awarded that same year.

begin delete

(8)

end delete

begin insert (11) end insert  For undergraduate students, the total amount of funds
received from the sources identified in subdivision (c) of Section
92670 for the year expended for undergraduate education, divided
by the number of undergraduate degrees awarded that same year.

begin delete

(9)

end delete

begin insert (12) end insert  The average number of begin insert University of California end insert course
credits begin insert and total course credits, including credit accrued at other
institutions, end insert accumulated by begin insert all undergraduate end insert students begin delete at the time
they complete their degrees, disaggregated by freshman entrants
and transfers. end delete begin insert who graduated end insert begin insert , and separately for freshman entran end insert begin insert ts end insert
begin insert and California Community College transfer students. end insert

begin delete

(10)

end delete

begin insert (13) end insert  (A) The number of degree completions in science,
technology, engineering, and mathematics (STEM) fields,
begin delete disaggregated by end delete begin insert in total, and separately for end insert undergraduate
students, graduate students, and low-income students.

(B) For purposes of subparagraph (A), “STEM fields” include,
but are not necessarily limited to, all of the following: computer
and information sciences, engineering and engineering
technologies, biological and biomedical sciences, mathematics
and statistics, physical sciences, and science technologies.

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Chapter 15 (commencing with Section 92985) is
added to Part 57 of Division 9 of Title 3 of the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

 

Chapter   begin insert 15. end insert The California Blueprint for Research to
Advance Innovations in Neuroscience Act of 2014

 

begin insert 92985. end insert   

This act shall be known, and may be cited, as the
California Blueprint for Research to Advance Innovations in
Neuroscience (Cal-BRAIN) Act of 2014.

begin insert 92985.5. end insert   

(a) In April 2013, President Obama unveiled the
Brain Research through Advancing Innovative Neurotechnologies
(BRAIN) Initiative -- a collaborative program that will map the
activity of every neuron in the human brain with a programmed
total investment of more than three hundred million dollars
($300,000,000) per year over 10 years.

(b) The BRAIN Initiative is launching with approximately one
hundred ten million dollars ($110,000,000) in funding for research
in 2014, as well as additional private sector investment from
institutes and foundations based in California.

(c) California is poised to be a world leader in this research
effort given the prominent role of scientists and industry leaders
throughout the state.

(d) Four of the six scientists who proposed the BRAIN Initiative
and six of the 15 members of the Advisory Committee to the
Director of the National Institutes of Health for the BRAIN
Initiative are from California.

(e) Some California-based corporations have indicated they
are interested in collaborating with brain research institutions on
research for the BRAIN Initiative to bring new discoveries to the
marketplace.

(f) The BRAIN Initiative has the potential to be a major driver
of new industries and jobs in biotechnology, artificial intelligence,
and information technologies, as well as a catalyst for major
breakthroughs in brain-related diseases, injuries, and illnesses,
including Alzheimer’s disease, which is programmed to cost
California over thirty billion dollars ($30,000,000,000) a year by
2030.

(g) The products of scientific research improve the quality of
our lives and health and provide us with high-quality jobs that
employ and demand a highly skilled workforce.

(h) Given California’s assets and capacity for collaboration,
entrepreneurship, and innovation, a state investment to expand
and accelerate this research in the state and to promote the
translation of breakthroughs into the marketplace is an important
investment in the intellectual infrastructure for California’s
economic future.

begin insert 92986. end insert   

(a) The Regents of the University of California are
requested to establish the Cal-BRAIN program to leverage
California’s vast research assets and the federal BRAIN Initiative’s
funding opportunities to accelerate the development of brain
mapping techniques, including the development of new
technologies, which will create new, high-paying jobs in California
while advancing patient care and improving lives, in order to
achieve the following goals:

(1) Maintain California’s leadership role in neuroscience
innovation.

(2) Develop a dynamic map of the human brain that provides
researchers, physicians, and engineers with the knowledge
necessary to develop new treatments and technologies that will
improve lives and reduce the costs of providing health care.

(3) Grow California’s economy through the expansion of
California’s high technology and biotechnology sectors.

(4) Train the next generation of scientists for the neuroscience
and engineering jobs of the future.

(b) The University of California is requested to utilize
California’s unique collaborative research environment by
convening stakeholders from public and private research
institutions, national laboratories, biotechnology and high
technology companies, and venture capital firms to develop the
governing structure for the Cal-BRAIN program.

(c) The governing structure shall be designed to do all of the
following:

(1) Adopt a research plan that identifies milestones for achieving
the goals of the Cal-BRAIN program.

(2) Establish competitive, merit-based opportunities for
interested public and private California research institutions and
national laboratories to apply for Cal-BRAIN program funding.

(3) Maintain the flexibility to adjust the Cal-BRAIN program’s
priorities and focus based upon knowledge gained from scientific
discoveries.

(4) Establish a technology transfer program to identify and
accelerate the commercial application of both early and late-stage
discoveries and technologies from the Cal-BRAIN program into
the marketplace and to promote new and expanded technology
sectors in the state.

(5) Solicit contributions to the Cal-BRAIN program with a goal
of achieving a nonstate funding match that meets or exceeds the
financial investment by the state.

begin insert 92987. end insert   

The Regents of the University of California are
requested to provide information about the Cal-BRAIN program
through an Internet Web site, including a brief description of
funded projects and activities.

begin insert 92988. end insert   

This chapter shall be implemented only to the extent
that adequate funding for its purposes, as determined by the
Regents of the University of California, is appropriated to the
University of California in the annual Budget Act or other statute.

end insert

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 94102.1 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 94102.1. end insert   

In addition to the definition provided in Section 94110,
“student loan” may also mean loan assumptions pursuant to
Article 5 (commencing with Section 69612) of Chapter 2 of Part
42 of Division 5.

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 17581.7 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

17581.7.  

(a) Funding apportioned pursuant to this section shall
constitute reimbursement pursuant to Section 6 of Article XIII B
of the California Constitution for the performance of any state
mandates included in the statutes and executive orders identified
in subdivision (e).

(b) Any community college district may elect to receive block
grant funding pursuant to this section.

(c) (1) A community college district that elects to receive block
grant funding pursuant to this section in a given fiscal year shall
submit a letter requesting funding to the Chancellor of the
California Community Colleges on or before August 30 of that
fiscal year.

(2) The Chancellor of the California Community Colleges shall
apportion, in the month of November of each year, block grant
funding appropriated in Item 6870-296-0001 of Section 2.00 of
the annual Budget Act to all community college districts that
submitted letters requesting funding in that fiscal year according
to the provisions of that item.

(3) A community college district that receives block grant
funding pursuant to this section shall not be eligible to submit
claims to the Controller for reimbursement pursuant to Section
17560 for any costs of any state mandates included in the statutes
and executive orders identified in subdivision (e) incurred in the
same fiscal year during which the community college district
received funding pursuant to this section.

(d) All funding apportioned pursuant to this section is subject
to annual financial and compliance audits required by Section
84040 of the Education Code.

(e) Block grant funding apportioned pursuant to this section is
specifically intended to fund the costs of the following programs:

(1) Agency Fee Arrangements (00-TC-17 and 01-TC-14;
Chapter 893 of the Statutes of 2000; and Chapter 805 of the
Statutes of 2001).

(2) Cal Grants (02-TC-28; Chapter 403 of the Statutes of 2000).

(3) California State Teachers’ Retirement System (CalSTRS)
Service Credit (02-TC-19; Chapter 603 of the Statutes of 1994;
Chapters 383, 634, and 680 of the Statutes of 1996; Chapter 838
of the Statutes of 1997; Chapter 965 of the Statutes of 1998;
Chapter 939 of the Statutes of 1999; and Chapter 1021 of the
Statutes of 2000).

(4) Collective Bargaining and Collective Bargaining Agreement
Disclosure (CSM 4425 and 97-TC-08; Chapter 961 of the Statutes
of 1975; Chapter 1213 of the Statutes of 1991).

begin delete

(5) Community College Construction (02-TC-47; Chapter 910
of the Statutes of 1980; Chapters 470 and 891 of the Statutes of
1981; Chapter 973 of the Statutes of 1988; Chapter 1372 of the
Statutes of 1990; Chapter 1038 of the Statutes of 1991; and Chapter
758 of the Statutes of 1995).

end delete begin delete

(6)

end delete

begin insert (5) end insert  Discrimination Complaint Procedures (02-TC-42 and
portions of 02-TC-25 and 02-TC-31; Chapter 1010 of the Statutes
of 1976; Chapter 470 of the Statutes of 1981; Chapter 1117 of the
Statutes of 1982; Chapter 143 of the Statutes of 1983; Chapter
1371 of the Statutes of 1984; Chapter 973 of the Statutes of 1988;
Chapter 1372 of the Statutes of 1990; Chapter 1198 of the Statutes
of 1991; Chapter 914 of the Statutes of 1998; Chapter 587 of the
Statutes of 1999; and Chapter 1169 of the Statutes of 2002).

begin delete

(7)

end delete

begin insert (6) end insert  Enrollment Fee Collection and Waivers (99-TC-13 and
00-TC-15).

begin delete

(8)

end delete

begin insert (7) end insert  Health Fee Elimination (CSM 4206; Chapter 1 of the Statutes
of 1984, Second Extraordinary Session).

begin delete

(9)

end delete

begin insert (8) end insert  Minimum Conditions for State Aid (02-TC-25 and 02-TC-31;
Chapter 802 of the Statutes of 1975; Chapters 275, 783, 1010, and
1176 of the Statutes of 1976; Chapters 36 and 967 of the Statutes
of 1977; Chapters 797 and 977 of the Statutes of 1979; Chapter
910 of the Statutes of 1980; Chapters 470 and 891 of the Statutes
of 1981; Chapters 1117 and 1329 of the Statutes of 1982; Chapters
143 and 537 of the Statutes of 1983; Chapter 1371 of the Statutes
of 1984; Chapter 1467 of the Statutes of 1986; Chapters 973 and
1514 of the Statutes of 1988; Chapters 1372 and 1667 of the
Statutes of 1990; Chapters 1038, 1188, and 1198 of the Statutes
of 1991; Chapters 493 and 758 of the Statutes of 1995; Chapters
365, 914, and 1023 of the Statutes of 1998; Chapter 587 of the
Statutes of 1999; Chapter 187 of the Statutes of 2000; and Chapter
1169 of the Statutes of 2002).

begin delete

(10)

end delete

begin insert (9) end insert  Prevailing Wage Rate (01-TC-28; Chapter 1249 of the
Statutes of 1978).

begin insert

(10) Public Contracts (02-TC-35; Chapter 1073 of the Statutes
of 1985; Chapter 1408 of the Statutes 1988; Chapter 330 of the
Statutes of 1989; Chapter 1414 of the Statutes of 1990; Chapter
321 of the Statutes of 1990; Chapter 799 of the Statutes of 1992;
and Chapter 726 of the Statutes of 1994).

end insert

(11) Reporting Improper Governmental Activities (02-TC-24;
Chapter 416 of the Statutes of 2001; and Chapter 81 of the Statutes
of 2002).

(12) Threats Against Peace Officers (CSM 96-365-02; Chapter
1249 of the Statutes of 1992; and Chapter 666 of the Statutes of
1995).

(13) Tuition Fee Waivers (02-TC-21; Chapter 36 of the Statutes
of 1977; Chapter 580 of the Statutes of 1980; Chapter 102 of the
Statutes of 1981; Chapter 1070 of the Statutes of 1982; Chapter
753 of the Statutes of 1988; Chapters 424, 900, and 985 of the
Statutes 1989; Chapter 1372 of the Statutes of 1990; Chapter 455
of the Statutes of 1991; Chapter 8 of the Statutes of 1993; Chapter
389 of the Statutes of 1995; Chapter 438 of the Statutes of 1997;
Chapter 952 of the Statutes of 1998; Chapters 571 and 949 of the
Statutes of 2000; Chapter 814 of the Statutes of 2001; and Chapter
450 of the Statutes of 2002).

(f) Notwithstanding Section 10231.5, on or before November
1 of each fiscal year, the Chancellor of the California Community
Colleges shall produce a report that indicates the total amount of
block grant funding each community college district received in
the current fiscal year pursuant to this section. The chancellor shall
provide this report to the appropriate fiscal and policy committees
of the Legislature, the Controller, the Department of Finance, and
the Legislative Analyst’s Office.

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 68926.3 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

68926.3.  

(a) Notwithstanding any other begin delete provision of end delete law,
sixty-five dollars ($65) of each fee collected in a civil case by the
clerk of each court of appeal pursuant to subdivision (a) of Section
68926 shall be paid into the State Treasury for deposit in a special
account in the General Fund to be known as the California State
Law Library Special Account, which account is hereby established.

(b) Moneys deposited in the California State Law Library
Special Account shall be available for the support of the California
State Law Library upon appropriation thereto by the Legislature
in the annual Budget Act.

(c) This section shall remain in effect only until January 1, begin delete 2015, end delete
begin insert 2020, end insert and as of that date, is repealed, unless a later statute that is
enacted before that date extends or repeals that date.

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 13146 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

13146.  

The responsibility for enforcement of building standards
adopted by the State Fire Marshal and published in the California
Building Standards Code relating to fire and panic safety and other
regulations of the State Fire Marshal shall be as follows:

(a) The city, county, or city and county with jurisdiction in the
area affected by the standard or regulation shall delegate the
enforcement of the building standards relating to fire and panic
safety and other regulations of the State Fire Marshal as they relate
to R-3 dwellings, as described in Section begin delete 1201 end delete begin insert 310.5 end insert of Part 2 of
the California Building Standards Code, to either of the following:

(1) The chief of the fire authority of the city, county, or city and
county, or his or her authorized representative.

(2) The chief building official of the city, county, or city and
county, or his or her authorized representative.

(b) The chief of any city, county, or city and county fire
department or of any fire protection district, and their authorized
representatives, shall enforce within its jurisdiction the building
standards and other regulations of the State Fire Marshal, except
those described in subdivision (a) or (d).

(c) The State Fire Marshal shall have authority to enforce the
building standards and other regulations of the State Fire Marshal
in areas outside of corporate cities and districts providing fire
protection services.

(d) The State Fire Marshal shall have authority to enforce the
building standards and other regulations of the State Fire Marshal
in corporate cities and districts providing fire protection services
upon request of the chief fire official or the governing body.

(e) The State Fire Marshal shall enforce the building standards
and other regulations of the State Fire Marshal on all University
of California campuses and properties administered or occupied
by the University of begin delete California. end delete begin insert California and on all California
State University campuses and properties administered or occupied
by the California State University. end insert For each university campus or
property the State Fire Marshal may delegate that responsibility
to the person of his or her choice who shall be known as the
Designated Campus Fire Marshal.

(f) Any fee charged pursuant to the enforcement authority of
this section shall not exceed the estimated reasonable cost of
providing the service for which the fee is charged, pursuant to
Section 66014 of the Government Code.

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 10726 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10726.  

The trustees may receive bids for the construction of
several public works projects at begin delete one campus of end delete the California State
University as a single project. Where more than one appropriation
has been made for the several projects united as a single project
under the provisions of this section, payments for the single project
shall be made from the separate appropriations on such proportional
basis as may be determined by the trustees and approved by the
Department of Finance.

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 10742 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10742.  

begin delete When end delete begin insert If end insert it appears that the estimated contract price will
exceed fifteen thousand dollars ($15,000), public notice to bidders
shall be given by publication once a week for at least two
consecutive weeks, or once a week for more than two consecutive
weeks if such longer period of advertising is deemed necessary by
the trustees, next preceding the day set for the receiving of bids:

(a) In two trade papers of general circulation, one published in
Los Angeles and one in San Francisco, devoted primarily to the
dissemination of contract and building news among contracting
and building material supply firms; or

(b)  begin delete In the discretion of the trustees, in end delete begin insert In end insert one newspaper of
general circulation published in the county in which the major
portion of the project is located, and in one such trade paper
published in the county group, as defined in Section 187 of the
Streets and Highways Code, in which the work is to be begin delete done. end delete begin insert done;
or end insert

begin insert

(c) Electronically on the California State University’s Internet
Web site.

end insert

begin insert

begin insert SEC. 39. end insert   

end insert begin insert

The balances of the appropriations provided by Item
6870-139-8080 of Section 2.00 of the Budget Act of 2013, as added
by Chapters 20 and 354 of the Statutes of 2013, payable from the
Clean Energy Job Creation Fund, are hereby reappropriated for
the purposes of, and subject to, that item, and, notwithstanding
any other law, shall be available for encumbrance until June 30,
2018.

end insert

begin insert

begin insert SEC. 40. end insert   

end insert begin insert

(a) On or before June 30, 2015, an amount to be
determined by the Director of Finance shall be appropriated from
the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2014.

end insert begin insert

(b) The funds appropriated in subdivision (a) shall only be
available to the extent that revenues distributed to community
colleges pursuant to Sections 34177, 34179.5, 34179.6, and 34188
of the Health and Safety Code are less than the estimated amount
reflected in the Budget Act of 2014, as determined by the Director
of Finance.

end insert begin insert

(c) On or before June 30, 2015, the Director of Finance shall
determine if the revenues distributed to community college districts
pursuant to Sections 34177, 34179.5, 34179.6, and 34188 of the
Health and Safety Code exceed the estimated amount reflected in
the Budget Act of 2014 and shall reduce Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2014 by the
amount of that excess.

end insert begin insert

(d) In making the determinations pursuant to subdivisions (b)
and (c), the Director of Finance shall consider any other local
property tax revenues and student fee revenues collected in excess
or in deficit of the estimated amounts reflected in the Budget Act
of 2014.

end insert begin insert

(e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his
or her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
property tax shortfall determined pursuant to subdivision (b) or
the amount of the reduction made pursuant to subdivision (c). The
Controller shall make the funds available not sooner than five
days after this notification and the Chancellor of the California
Community Colleges shall work with the Controller to allocate
these funds to community college districts as soon as practicable.

end insert begin insert

(f) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be “General Fund
revenues appropriated for community college districts,” as defined
in subdivision (d) of Section 41202 of the Education Code, for the
2014-15 fiscal year, and included within the “total allocations to
school districts and community college districts from General
Fund proceeds of taxes appropriated pursuant to Article XIII B,”
as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2014-15 fiscal year.

end insert

begin insert

begin insert SEC. 41. end insert   

end insert begin insert

(a) On or before June 30, 2015, an amount to be
determined by the Director of Finance shall be appropriated from
the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2014.

end insert begin insert

(b) The funds appropriated in subdivision (a) shall only be
available to the extent that offsetting revenues distributed to
community colleges pursuant to subparagraph (A) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution are less than the estimated amount reflected in the
Budget Act of 2014, as determined by the Director of Finance.

end insert begin insert

(c) On or before June 30, 2015, the Director of Finance shall
determine if the offsetting revenues distributed to community
college districts pursuant to subparagraph (A) of paragraph (3)
of subdivision (e) Section 36 of Article XIII of the California
Constitution exceed the estimated amount reflected in the Budget
Act of 2014, and shall reduce Schedule (1) of Item 6870-101-0001
of Section 2.00 of the Budget Act of 2014 by that same amount.

end insert begin insert

(d) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his
or her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
Education Protection Account shortfall determined pursuant to
subdivision (b) or the amount of the reduction made pursuant to
subdivision (c). The Controller shall make the funds available not
sooner than five days after this notification and the Office of the
Chancellor of the California Community Colleges shall work with
the Controller to allocate these funds to community college districts
as soon as practicable.

end insert begin insert

(e) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be “General Fund
revenues appropriated for community college districts,” as defined
in subdivision (d) of Section 41202 of the Education Code, for the
2014-15 fiscal year, and included within the “total allocations to
school districts and community college districts from General
Fund proceeds of taxes appropriated pursuant to Article XIII B,”
as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2014-15 fiscal year.

end insert

begin insert

begin insert SEC. 42. end insert   

end insert begin insert

(a) On or before June 30, 2015, an amount to be
determined by the Director of Finance shall be appropriated from
the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2013.

end insert begin insert

(b) The funds appropriated in subdivision (a) shall only be
available for revenues distributed to a net excess tax community
college district pursuant to subparagraph (A) of paragraph (3) of
subdivision (e) of Section 36 of Article XIII of the California
Constitution, as determined by the Director of Finance.

end insert begin insert

(c) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his
or her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a), and the amount needed to
address the Education Protection Account shortfall determined
pursuant to subdivision (b). The Controller shall make the funds
available not sooner than five days after this notification and the
Office of the Chancellor of the California Community Colleges
shall work with the Controller to allocate these funds to community
college districts as soon as practicable.

end insert begin insert

(d) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be
“General Fund revenues appropriated for community college
districts,” as defined in subdivision (d) of Section 41202 of the
Education Code, for the 2013-14 fiscal year, and included within
the “total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated
pursuant to Article XIII B,” as defined in subdivision (e) of Section
41202 of the Education Code, for the 2013-14 fiscal year.

end insert

begin insert

begin insert SEC. 43. end insert   

end insert begin insert

(a) On or before June 30, 2015, an amount to be
determined by the Director of Finance shall be appropriated from
the General Fund to the Board of Governors of the California
Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act of 2012.

end insert begin insert

(b) The funds appropriated in subdivision (a) shall only be
available for revenues distributed to a net excess tax community
college district pursuant to subparagraph (A) of paragraph (3) of
subdivision (e) of Section 36 of Article XIII of the California
Constitution, as determined by the Director of Finance.

end insert begin insert

(c) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his
or her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a), and the amount needed to
address the Education Protection Account shortfall determined
pursuant to subdivision (b). The Controller shall make the funds
available not sooner than five days after this notification and the
Office of the Chancellor of the California Community Colleges
shall work with the Controller to allocate these funds to community
college districts as soon as practicable.

end insert begin insert

(d) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be
“General Fund revenues appropriated for community college
districts,” as defined in subdivision (d) of Section 41202 of the
Education Code, for the 2012-13 fiscal year, and included within
the “total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated
pursuant to Article XIII B,” as defined in subdivision (e) of Section
41202 of the Education Code, for the 2012-13 fiscal year.

end insert

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Notwithstanding subdivisions (a), (b), and (c) of
Section 92495 of the Education Code, the University of California
may use General Fund appropriations pursuant to Sections 92493
and 92494 of the Education Code for the Tolman Hall Seismic
Replacement Building project at the University of California,
Berkeley campus, as described in a letter from the university to
the Director of Finance and the Chairperson of the Joint
Legislative Budget Committee dated March 17, 2014. end insert

begin insert

begin insert SEC. 45. end insert   

end insert begin insert

In regard to Section 18 of this act, the Legislature
finds and declares that a special law is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the unique accreditation and fiscal challenges facing the San
Francisco Community College District.

end insert

begin insert

begin insert SEC. 46. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin insert

begin insert SEC. 47. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2014.

end delete