BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       AB 1480|
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                                    THIRD READING


          Bill No:  AB 1480
          Author:   Assembly Budget Committee
          Amended:  8/13/14 in Senate
          Vote:     21


           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  14-0, 8/14/14
          AYES:  Leno, Nielsen, Anderson, Beall, Berryhill, Block,  
            Corbett, Jackson, Liu, Mitchell, Monning, Roth, Torres, Wyland
          NO VOTE RECORDED:  Hancock, Morrell

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT :    Budget Act of 2014:  Education Trailer Bill

           SOURCE  :     Author


           DIGEST  :    This bill provides for statutory changes necessary to  
          enact education-related provisions of the Budget Act of 2014.

           ANALYSIS  :    This bill makes statutory changes necessary to  
          implement the Budget Act of 2014-15.  These changes provide  
          clarification or correct errors made when the budget and related  
          trailer bills were enacted in June 2014.  Specifically, this  
          bill:

           1. Clarifies that the regional market reimbursement rate, which  
             is used to reimburse child care providers who accept  
             vouchers, is set at the 85th percentile of the 2009 Regional  
             Market Rate Survey, as reduced by a deficit factor of 10.11%.  
              This amendment aligns the deficit factor to the amount of  
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             funding appropriated in SB 852 (Committee on Budget and  
             Fiscal Review, Chapter 25, Statutes of 2014).

           2. Clarifies that the increase to maximum reserve fund balances  
             established by SB 858 (Committee on Budget and Fiscal Review,  
             Chapter 32, Statutes of 2014) applies only to agencies  
             contracting with the Department of Education under the  
             California state preschool program.  Further, specifies that  
             the additional 10% that these agencies may separately retain  
             for use on professional development is part of an overall 15%  
             reserve.

           3. Specifies that funds provided through the Child Care  
             Facilities Revolving Fund for specified renovation, repair,  
             or improvement of existing buildings are to be provided as  
             loans, and that those loans must be repaid within 10 years.

           4. Clarifies that a permit issued by the Commission on Teacher  
             Credentialing that may satisfy specified requirements for  
             transitional kindergarten teachers is a "child development  
             teacher permit."  Further, clarifies that the specified  
             education or experience requirements apply to credentialed  
             teachers.

           5. Specifies that $15 million of the funding provided in SB 852  
             shall be allocated to the Department of Education to fund  
             professional development stipends for teachers, to be  
             administered by local planning councils.  Further,  
             establishes priorities for the use of those funds, including  
             first priority for transitional kindergarten teachers and  
             second priority for teachers in the California state  
             preschool program.

           6. Specifies that if more than 10% of the average daily  
             attendance (ADA) of a local educational agency is claimed  
             through a new independent study option available in 2015-16,  
             then the ADA for that entity shall be reduced by the  
             statewide average rate of absence, as specified.  Further,  
             clarifies that nothing in the section of law establishing  
             that new option shall prohibit the right to collectively  
             bargain any subject within the scope of representation  
             pursuant to Government Code Section 3543.2.

           7. Specifies that a Regional Occupational Center or Program  

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             operated by a Joint Powers Authority may be a grant recipient  
             under the Career Pathways Trust grant program.

           8. Specifies that if the University of California (UC) plans to  
             use any of its support appropriation in the annual budget act  
             for capital expenditures or capital outlay projects, as  
             defined, it must submit a report, by September 1 of each  
             year, describing the projects to the committees in each house  
             of the Legislature that consider the state Budget, the  
             appropriate budget subcommittees, and the Department of  
             Finance (DOF).  Further, specifies that the DOF must 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 appropriate budget subcommittees for  
             review and response.  Currently, these UC capital  
             expenditures and capital outlay projects are reported to the  
             Joint Legislative Budget Committee.  These changes conform to  
             the process for California State University (CSU) capital  
             projects and expenditures, which was established in the  
             Higher Education Omnibus Trailer Bill, SB 860 (Committee on  
             Budget and Fiscal Review, Chapter 34, Statutes of 2014).

           9. Allows the UC to provide public notice of construction  
             projects to bidders electronically on the Internet Web site  
             of the university.  This change is consistent with authority  
             granted to the CSU in SB 860.

           10.Specifies that goal frameworks developed by community  
             colleges and the board of governors for the California  
             Community Colleges (CCCs) must be guided by the statewide  
             goals outlined in Section 66010.91 of the Education Code and  
             express the intent of the Legislature that the goals be  
             challenging and quantifiable, address achievement gaps for  
             underrepresented populations, and align the educational  
             attainment of California's adult population to the workforce  
             and economic needs of the state.

           11.Expresses the intent of the Legislature that the appropriate  
             policy and fiscal committees of the Legislature review  
             specific UC and CSU performance measures in a collaborative  
             process that includes the DOF, the Legislative Analyst's  
             Office, individuals with expertise in statewide  
             accountability efforts, the UC, the CSU, and, for the  

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             purposes of data integrity and consistency, the CCCs and  
             consider any recommendations for modification and refinement.  
              Further, expresses the intent of the Legislature that any  
             modification or refinement of the performance measures be  
             guided by the legislative intent included in Section 66010.93  
             of the Education Code.

           12.Specifies that 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 existing law.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Budget and Fiscal Review Committee,  
          funds appropriated in this bill will count, as applicable,  
          toward the minimum funding requirements for school and community  
          college districts imposed by Section 8 of Article XVI of the  
          California Constitution (Proposition 98).


          JA:nl  8/14/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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