BILL NUMBER: SB 1505	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Alarcon
   (Principal coauthor: Assembly Member Correa)

                        FEBRUARY 15, 2000

   An act to amend Sections 24216.5, 44386, 44395, 44396, 69532,
69535, 69535.1, 69612, 69612.5, 69613, 69613.1, 69613.5, 69613.6,
69614, 69615.4, and 69615.6 of, to amend, add, and renumber Section
44397 of, to add Chapter 3.44 (commencing with Section 44751 and
Chapter 3.55 (commencing with Section 44765) to Part 25 of, to add
Article 21 (commencing with Section 70000) to Chapter 2 of Part 42
of, and to repeal Sections 69540, 69613.3, and 69613.55 of, the
Education Code, and to add Chapter 9.5 (commencing with Section
51460) to Part 3 of Division 31 of the Health and Safety Code,
relating to teachers, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1505, as introduced, Alarcon.  Teachers: recruitment and
incentives.
   (1) Existing law exempts a member of the State Teachers'
Retirement System who is retired for service from certain limitations
on the amount of compensation the member may earn for performing
certain creditable activities without suffering a reduction in his or
her retirement allowance if the member is employed to mitigate the
effects of teacher shortages attributable to recent class size
reduction legislation affecting kindergarten and grades 1 to 3,
inclusive.
   This bill would instead, commencing in the 2000-01 school year,
exempt a member who retired for service effective January 1, 2000,
and is employed to provide direct classroom instruction to pupils in
kindergarten or any of grades 1 to 12, inclusive, or to provide
support to new teachers, individuals completing student teaching
assignments or participating in the Preinternship Teaching Program,
an alternative certification program, or the School Paraprofessional
Teacher Training Program.
   (2) Existing law provides incentive grant funding to school
districts and county offices of education that operate or propose to
operate an alternative certification program and limits the amount of
a grant to $1,500 per intern per year.
   This bill would increase the maximum amount of a grant to $2,500.

   (3) Existing law establishes the National Board for Professional
Teaching Standards Certification Incentive Program to provide
one-time $10,000 merit awards to teachers who are employed by school
districts or charter schools, are assigned to teach in the public
schools, and have attained certification from the National Board for
Professional Teaching Standards.
   This bill would provide an additional $20,000 to the recipient if
the teacher agrees to teaching for 4 years in a low-performing school
and would define a low-performing school as one that is in the
bottom half of all schools based on the Academic Performance Index.
The bill would require the Commission on Teacher Credentialing to
adopt rules and regulations for the enforcement of the agreement to
teach for 4 years in a low-performing school and to recover funds
owed to the state for failure to honor that agreement.
   (4) Existing law requires the governing board of a school district
to employ for positions requiring certification qualifications only
persons who possess the qualifications for those positions.  Existing
law authorizes the waiver of provisions governing the preparation or
licensing of educators for certain purposes, including to provide a
credential candidate additional time to complete a credential
requirement, to allow a school district or school to implement an
education reform or restructuring plan, and when deemed appropriate
by the commission.  Existing law authorizes the Commission on Teacher
Credentialing to issue or renew emergency teaching or specialist
permits if certain conditions are met and requires the holder of an
emergency permit, among other things, to participate in ongoing
training, coursework, or seminars designed to prepare the individual
to become a fully credentialed teacher or other educator in the
subject area in which he or she is assigned to teach or serve.
   This bill would establish the Teaching as a Priority Program to be
administered by the Commission on Teacher Credentialing.  Under the
program, a low-performing school in a participating school district
would receive $2,000 for each fully credentialed, appropriately
assigned teacher who is hired and replaces an emergency permit
teacher and a fully credentialed, appropriately assigned teacher who
is hired by a participating school district to teach in a
low-performing school would receive $2,000.  The bill would require a
participating school district to attain a districtwide reduction in
the percentage of emergency permit teachers employed, followed by
further reductions in the percentage of emergency permit teachers
employed in each of the remaining 3 years of program participation.
A school district that fails to attain this reduction would have its
revenue limit funding reduced on a one-time basis by $4,000 for each
emergency permit teacher that is in excess of the target.
   (5) Existing law requires the establishment and operation of a
resource center that collects and maintains information regarding
programs that encourage or assist military personnel, upon
retirement, to enter the teaching profession.  Existing law
establishes the California School Paraprofessional Teacher Training
Program to recruit paraprofessionals to participate in a program
designed to encourage them to enroll in teacher training programs and
to provide instructional service as teachers in the public schools.
Existing law establishes the Science, Mathematics, and Technology
Teacher Pipeline Program to identify, support, and assist elementary,
secondary, and postsecondary students to become teachers of science,
mathematics, or technology.  Existing law establishes the California
Center on Teaching Careers to recruit individuals into the teaching
profession.
   This bill would establish the Teacher Recruitment Initiative
Program, to be administered by the Sacramento County Office of
Education.  The Sacramento County Office of Education would award, by
January 1, 2001, up to 5 grants on a competitive basis to consortia
to operate regional recruitment centers that would focus on
recruiting teachers to low-performing schools, especially those with
a teaching staff that has more than 20% emergency permit holders.
The bill would require the Sacramento County Office of Education to
provide statewide oversight and technical assistance for regional
recruitment centers.
   (6) Existing law establishes the Cal Grant Program as a state
educational opportunity grant program under which Cal Grant T awards
are made to students who have completed a baccalaureate degree and
are admitted to a program of professional teacher preparation for
tuition and student fees for a maximum of one academic year of
full-time attendance at program of profession teacher preparation.
   This bill would eliminate the Cal Grant T award.
   (7) Existing law establishes an Assumption Program of Loans for
Education under which an applicant enrolled in a participating
institution of postsecondary education, or an applicant who agrees to
participate in a teacher trainee or teacher internship program, and
who further agrees to obtain a teaching credential in subject areas
that are designated as current or projected shortage areas or to
provide classroom instruction in schools that serve large populations
of pupils from low-income families, serve rural areas, or have a
high percentage of teachers holding emergency permits, is eligible to
receive a conditional warrant for loan assumption, to be redeemed
pursuant to a prescribed procedure upon becoming employed as a
teacher. Existing law requires an applicant to enroll in at least 10
semester units or the equivalent.  Existing law sets aside 40% of the
warrants for applicants who agree to obtain teaching credentials in
any subject area and to teach in schools that serve large populations
of pupils from low-income families and 60% of the warrants for
applicants who agree to obtain a teaching credential in a subject
area that is currently or is projected to be a shortage area.
   This bill would also make an applicant enrolled in a participating
institution of postsecondary education or an applicant who agrees to
participate in a teacher trainee or teacher internship program, and
who further agrees to teach in a low-performing school, as defined,
eligible for a warrant.  The bill would require an applicant to be
enrolled on at least a half-time basis rather than 10 semester units
and would eliminate the set asides.  The bill would require the
Student Aid Commission to reexamine its outreach and marketing
strategies relative to the program.
   (8) Existing law requires the annual distribution of 500 warrants
under the Assumption Program of Loans for Education for the
recruitment of out-of-state teachers.
   This bill would instead authorize the distribution of warrants
without reference to the number of warrants to be distributed.
   (9) Existing law requires the annual distribution of a minimum of
2,000 of the warrants under the Assumption Program of Loans for
Education Program to applicants who agree to obtain a teaching
credential in mathematics or science and 50 warrants to project
centers of the Science, Mathematics, and Technology Teacher Pipeline
Program for participants in that program.
   This bill would delete these provisions.
   (10) Existing law requires the distribution for the 1999-2000
school year of a maximum 5,500 student loans for participants of the
Assumption Program of Loans for Education Program.  Notwithstanding
this maximum, existing law requires the issuing of warrants in a
quantity determined by the Legislature in the annual Budget Act for
the assumption of student loans for applicants who agree to teach in
rural schools and schools with a high percentage of teachers holding
emergency permits.
   This bill would increase the maximum number of student loans to
6,500 and would require the issuing of warrants in a quantity
determined by the Governor and Legislature in the annual Budget Act
for the assumption of student loans regardless of the eligibility
category of the applicant, but would allow a set aside of 100
warrants for applicants who agree to teach in school districts
serving rural areas.
   (11) Existing law establishes the Cal Grant T Program described in
paragraph (6) above and the Assumption Program of Loans for
Education described in paragraphs (7) to (11), inclusive, above.
   This bill would establish the Governor's Teaching Fellowship
Program to be administered by the Chancellor's Office of the
California State University and under which $20,000 nonrenewable
graduate teaching fellowships would be awarded to graduate students
who agree to teach at a low-performing school for 4 years.  The
fellowships would be used to defer tuition and living expenses for a
teacher certification program at any accredited postsecondary
institution in California.  The bill would establish an
intersegmental review committee to review all fellowship
applications.
   (12) Existing law establishes the Homebuyer Down Payment
Assistance Program to provide assistance in the amount of the
applicable school facility fee on affordable housing developments.
   This bill would provide up to $10,000 in down payment assistance
to a person who is currently employed as a full-time teacher in a
low-performing school and who holds the appropriate credential for
the subject and grade level the teacher is assigned to teach.  The
down payment assistance would be a deferred payment, low-interest
subordinate mortgage loan in second lien position with a term not
longer than the term of the first mortgage.  The loan would be
forgiven if the teacher meets certain conditions, among which are
remaining employed at a low-performing school and maintaining the
residence for which the down payment assistance was granted as the
teacher's principal residence.
   (13) This bill would declare that it to take effect immediately as
an urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares as follows:
   (1) California is facing a teacher shortage for the foreseeable
future. It is estimated that in the next 10 years 300,000 new
teachers will be needed to fill vacancies caused by teacher attrition
and pupil growth.  The state has increased its capacity to train
teachers since 1997 when class size reduction exacerbated existing
shortages.  Yet, even with the number of teachers being trained on
the rise, the number of individuals who immediately enter the
classroom after being prepared is estimated to be as low as 50
percent.  Left untapped, this pool of trained teachers who are not
teaching represents a wasted investment of state resources.  In
addition, retired teachers are discouraged from reentering the
profession due to postretirement earnings limitations.
   (2) Low-performing schools with a history of having high teacher
turnover and inexperienced staff need more qualified teachers to
substantially improve pupil achievement.  While no one approach will
likely meet the challenge of attracting and retaining individuals
into hard to staff schools, financial incentives ought to be an
important element in any effective strategy.
   (3) Attracting qualified teachers to low-performing schools
necessitates that these schools make the hiring of fully credentialed
staff a high priority.
   (4) Ultimately, school districts are responsible for setting the
standard for the quality of teachers that they employ.
   (b) It is the intent of the Legislature in enacting this act to
accomplish the following:
   (1) Provide financial incentives to attract fully credentialed
teachers to teach in low-performing schools, to reduce school
districts' reliance on emergency permits by rewarding schools that
hire credentialed teachers in appropriate assignments.  The
incentives are designed both to recruit qualified teachers to hard to
staff schools and to provide low-performing schools with some
additional discretionary moneys.
   (2) Dissuade school districts, even under the most difficult
circumstances, from hiring teachers who hold emergency permits by
holding a district accountable through a system of incentives and
penalties that obliges school districts to consistently reduce the
number of emergency permit teachers it employs.
   (3) Provide incentives and support for individuals who pursue
traditional and alternative routes to teacher certification through a
teaching fellowship, more accessible college loan assumption, and
enhanced teaching internships.
  SEC. 2.  Section 24216.5 of the Education Code is amended to read:

   24216.5.  (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:

   (1) The member retired for service with an effective date on or
before  July 1, 1998   January 1, 2000  .
   (2) The member retired for service is employed by a school
district to provide  either one   any  of
the following:
   (A) Direct classroom instruction to  students 
 in classrooms that were created to meet the objectives of a
program to reduce class sizes pursuant to Part 28 (commencing with
Section 51000)   pupils enrolled in kindergarten or any
grades 1 to 12, inclusive  .  
   (B) Is temporarily filling a position that was vacated due to a
teacher transferring to a classroom within the same district that was
created to meet the objectives of a program to reduce class sizes
pursuant to Part 28 (commencing with Section 51000).  
   (B) Support and assessment for new teachers through the Beginning
Teacher Support and Assessment program authorized by Section 44279.1.

   (C) Support to individuals completing student teaching
assignments.
   (D) Support to individuals participating in the following
programs:
   (i) Pre-Internship Teaching Program authorized pursuant to Article
5.6 (commencing with Section 44305) of Chapter 2 of Part 25.
   (ii) Alternative certification programs authorized pursuant to
Article 11 (commencing with Section 44380) of Chapter 2 of Part 25.
   (iii) School Paraprofessional Teacher Training Program established
pursuant to Article 12 (commencing with Section 44390) of Chapter 2
of Part 25. 
   (3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service shall not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district.  The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
   (4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision.
   (b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
   (c) This section shall not apply to the compensation earned for
creditable service performed by a member retired for service for
 a county office of education or  a community
college district.
   (d) The amendments made to this section by an act enacted in the
 first   second  year of the 1999-2000
Regular Session shall apply to the  1999-2000  
2000-01  school year and all subsequent school years.
   (e) This section shall remain in effect only until July 1,
 2002   2005  , and as of that date is
repealed unless a later enacted statute which is enacted before July
1,  2002   2005  , deletes or extends that
date.
  SEC. 3.  Section 44386 of the Education Code is amended to read:
   44386.  From funds appropriated for the purposes of this article,
the Commission on Teacher Credentialing shall award incentive grants
to qualifying school districts or county offices of education.  Each
school district or county office of education that receives a grant
shall provide matching funds from any available source in an amount
equal to 50 percent of the cost of the alternative certification
program.  Grants shall be awarded by the commission for the remaining
50 percent of the cost of the alternative certification program, but
in no event shall the grant amount awarded to any school district or
county office of education exceed  one   two
 thousand five hundred dollars  ($1,500)  
($2,500)  per intern per year, except that the commission may
require a lesser local contribution, or provide a larger grant per
intern per year, in hardship cases.
  SEC. 4.  Section 44395 of the Education Code is amended to read:
   44395.  (a) The National Board for Professional Teaching Standards
Certification Incentive Program is hereby established to award
grants to school districts for the purpose of providing 
merit awards to teachers who are employed by school
districts or charter schools, are assigned to teach in California
public schools, and have attained certification from the National
Board for Professional Teaching Standards.   The amount of
the merit award   The following awards shall be granted
to the extent that funds have been appropriated for this purpose in
the annual Budget Act:
   (1) A teacher attaining National Board certification  shall
be  eligible for a one-time merit award of  ten thousand
dollars ($10,000)  per teacher and shall be of a one-time
nature on behalf of any one teacher   , except as
specified in paragraph (2)  .  
   (2) In addition to the award specified in subdivision (1),
commencing July 1, 2000, any teacher that has attained certification
from the National Board for Professional Teaching Standards is
eligible to receive an award of up to twenty thousand dollars
($20,000) if he or she agrees to teach at a low-performing school for
at least four years.  Teaching service before July 1, 2000, may not
be counted towards satisfaction of this four-year commitment.  Awards
granted pursuant to this subdivision shall be disbursed in a single
lump sum, as described in subdivision (d) of Section 44396, upon
approval of a district-certified application pursuant to the
guidelines of subdivision (c) of Section 44396. 
   (b) The State Department of Education shall administer the
 program   awards authorized by subdivision (a),
 and shall develop, in consultation with the Commission on
Teacher Credentialing, certification and  merit 
award information, criteria, procedures, and applications, all of
which shall be submitted to the State Board of Education for
approval.  Amendments requested by the State Board of Education to
that information, criteria, procedures, and applications shall be
made before the dissemination of  information  
the material  and the  award   granting
 of any  grants   award  under this
article.
   (c) The State Department of Education shall distribute  the
materials described in subdivision (b)  to school districts
 information developed pursuant to subdivision (b) about the
certification process established by the National Board for
Professional Teaching Standards along with application materials and
instructions for the merit award program  .  Each school
district  shall make every effort   is strongly
encouraged  to ensure that teachers employed by the district or
by charter schools affiliated with the district are informed about
the program and can acquire the necessary application and information
materials.
   (d) School districts are encouraged to provide for adequate
release time and support for a teacher to complete the certification
process.  As a condition to providing that release time and support,
a school district may require that a teacher serve in a mentor
teacher capacity.
   (e) For purposes of this article,  "school  
the following definitions apply:
   (1)  "School  district" means school district, county board
of education, county superintendent of schools,  a state operated
program, such as a special school, or an education program providing
instruction in kindergarten or any of grades 1 to 12, inclusive, that
is offered by a state agency, including the California Youth
Authority and the State Department of Developmental Services.  
   (2) "Low-performing school" means a school in the bottom half of
all schools based on the Academic Performance Index rankings
established pursuant to subdivision (a) of Section 52056.  This
designation shall be determined as of the date of the agreement by
the teacher in paragraph (2) of subdivision (a) of this section.

  SEC. 5.  Section 44396 of the Education Code is amended to read:
   44396.  (a) (1) To the extent that funds are available for that
purpose, a teacher who meets the criteria approved by the State Board
of Education pursuant to subdivision (b) of Section 44395 is
eligible  for a merit award  and may apply for
 the   an  award by following the
procedures and instructions developed pursuant to  that 
subdivision  (b) of Section 44395  .
   (2) A teacher who attained certification from the National Board
for Professional Teaching Standards before the effective date of the
act adding this section and who was employed by a school district or
charter school and assigned to teach in a California public school on
the date of certification may apply for  a merit 
 an  award  authorized pursuant to this article  if
he or she meets all the other requirements  for that award
specified by   of this article.   For
awards pursuant to this subdivision, teaching service before July 1,
2000, may not be counted toward satisfaction of the teacher's
four-year agreement to teach in a low-performing school. 
   (b) Teachers shall submit their  application 
 applications for an award authorized by this article  to
the school district employing them.  Teachers employed by a charter
school shall submit their application through the school district
granting the school's charter.
   (c) When a school district receives an application  for an
award authorized by this article  , it shall certify that the
applicant is employed by the district or a charter school operating
under a charter granted by the school district and that the applicant
has met all the criteria established pursuant to subdivision (b) of
Section 44395.  The school district shall then submit the application
to the State Department of Education for its review and approval.
   (d) The State Department of Education shall approve  an
application   applications  that  meets
  meet  the criteria established pursuant to
subdivision (b) of Section 44395.  To the extent funds are available,
the State Department of Education shall apportion funds to the 
appropriate  school  district   districts
 in the amount of  ten thousand dollars ($10,000)
  the award authorized by Section 44395  for each
approved application.  The school district shall use funds
apportioned to it pursuant to this subdivision to provide  a
one-time merit   the amount of the  award 
of ten thousand dollars ($10,000)   authorized by
subdivision (a) of Section 44395  to each teacher whose
application is approved  by the State Department of Education
 .
  SEC. 6.  Section 44397 of the Education Code is amended and
renumbered to read:  
   44397.  
   44398.   Notwithstanding any provision of law except Sections
44332.6, 44340, 44346.1, and 44830.1, a teacher who is licensed to
teach in a state other than California and who is certified by the
National Board for Professional Teaching Standards shall be issued a
clear teaching credential authorizing the teacher to teach in the
subject area in which the teacher has received national
certification.
  SEC. 7.  Section 44397 is added to the Education Code, to read:
   44397.  (a) The Commission on Teacher Credentialing shall adopt
any rules and regulations it deems necessary for the enforcement of
the agreement made pursuant to this article and the recovery of any
funds it determines are owed to the state.  The rules and regulations
adopted by the commission pursuant to this section shall also
include a provision authorizing the commission to impose a civil
penalty on a recipient of funds pursuant to this article, in an
amount not to exceed five thousand dollars ($5,000) per year for each
year or portion thereof that the recipient of funds is determined by
the commission to have failed to fulfill his or her commitment to
teach in a low-performing school pursuant to Section 44395.
   (b) Any moneys recovered pursuant to this section shall be
deposited into the General Fund.
  SEC. 8.  Chapter 3.44 (commencing with Section 44751) is added to
Part 25 of the Education Code, to read:

      CHAPTER 3.44.  TEACHER RECRUITMENT INCENTIVE PROGRAM

   44751.  (a) The Teacher Recruitment Incentive Program is hereby
created, to be administered by the Sacramento County Office of
Education.  The Superintendent of Public Instruction shall allocate
funds appropriated for the purpose of this program to the Sacramento
County Office of Education, which shall allocate those funds as
specified in Section 44751.5.
   (b) For purposes of this chapter, the following terms have the
following meanings:
   (1) "Low-performing school" means a school in the bottom half of
the Academic Performance Index rankings established pursuant to
subdivision (a) of Section 52052.
   (2) "Regional teacher recruitment center" means an entity operated
by a consortium that may include school districts, county offices of
education, colleges, universities, or other public education
entities in the region to be served.
   44751.5.  The Sacramento County Office of Education shall award,
by January 1, 2001, five grants on a competitive basis to establish
regional teacher recruitment centers.  One region shall serve
northern California.  Two regions shall serve Los Angeles.  One
region shall serve the Central Valley. One region shall include the
Inland Empire.  The Sacramento County Office of Education may serve
as the regional recruitment center for northern California, but may
choose to award its grant to another northern California grant
applicant through the competitive process.
   44752.  Criteria for awarding the grants shall be established by
the Sacramento County Office of Education, but shall include, at a
minimum, all of the following:
   (a) A plan for collaboration among the consortium members.
   (b) A recruitment plan of highly effective recruitment strategies.

   (c) A focus on recruiting teachers to low-performing schools,
especially those with a teaching staff that has more than 20 percent
emergency permit teachers.
   44752.5.  (a) The amount of an award shall be based on the number
of teachers a regional teacher recruitment center commits to recruit
and shall be no more than seven hundred dollars ($700) per recruited
teacher.  The Sacramento County Office of Education shall determine
the allocation of grants awards and whether funds should be provided
with a start-up grant and then a reimbursement for teachers
recruited, or some other manner.
   (b) If the number of teachers needed to be recruited would result
in allocation of funds in excess of available funding, the regional
teacher recruitment centers shall be allocated funds based on a
proration of the number of teachers needed so as not to exceed
available funding.
   44753.  The Sacramento County Office of Education shall provide
statewide oversight and technical assistance for the regional teacher
recruitment centers and perform the following responsibilities:
   (a) Provide advice to the CalTeach program within the California
State University system regarding the regional media campaign for
recruiting teachers.
   (b) Consult with the Commission on Teacher Credentialing on
delivering technical assistance in credentials counseling through the
regional teacher recruitment centers.
   (c) Develop, publish, and distribute a guide of all available
state-level incentives to attract and retain teachers.
   (d) Report teacher placement data to the appropriate fiscal and
policy committees of the Legislature, the Office of the Secretary for
Education, the Department of Finance, the Legislative Analyst's
Office, and the Commission on Teacher Credentialing.
   44753.5.  Regional teacher recruitment centers shall perform the
following duties:
   (a) Employ full-time recruiters to recruit teachers and provide
credential and career counseling to prospective teachers.
   (b) Make available information on available state-funded
incentives to potential teachers.
   (c) Conduct college campus and community-based information
sessions on job opportunities in teaching.
   (d) Provide outreach to potential teachers using electronic,
print, radio, and other forms of advertising.
   (e) Screen and distribute applications of prospective teachers to
participating schools.
   (f) Schedule interviews between prospective teachers and school
administrators.
   (g) Refer candidates to teacher preparation and alternative
certification programs.
   (h) Coordinate with the County Office Fiscal Crisis and Management
Assistance Team established pursuant to Section 42127.8 on the
provision of technical assistance to school districts in methods to
streamline the hiring process.
   (i) Report regional recruitment data to the Sacramento County
Office of Education as specified in the grant award.
   44754.  School districts, county offices of education, colleges,
universities, and other public education entities participating in
the Teacher Recruitment Incentive Program are encouraged to include
in their submitted plans a financial commitment to teacher
recruitment.
  SEC. 9.  Chapter 3.55 (commencing with Section 44765) is added to
Part 25 of the Education Code, to read:

      CHAPTER 3.55.  TEACHING AS A PRIORITY PROGRAM

   44765.  The Teaching As A Priority Program is hereby established,
and shall be administered by the Commission on Teacher Credentialing.
  Beginning in the 2000-01 fiscal year, school districts and county
offices of education with low-performing schools are eligible to
participate, on a voluntary basis, in the Teaching As A Priority
Program.
   44765.1.  For purposes of this chapter, the following terms have
the following meanings:
   (a) "Appropriately assigned teacher" means a credentialed teacher
assigned to teach only in the subject area of his or her credential.

   (b) "Credentialed teacher" means an individual holding at a
minimum a preliminary teaching credential.
   (c) "Low-performing school" means a school in the bottom half of
the Academic Performance Index rankings established pursuant to
subdivision (a) of Section 52056.
   44765.5.  A school district or county office of education with
low-performing schools may apply to participate in the Teaching as a
Priority Program.  Participation includes schoolsite incentives for
hiring credentialed, appropriately assigned teachers and for reducing
the number of emergency permit teachers and also includes required
districtwide reductions in the percentage of emergency permit
teachers within specified timelines in order to maintain incentive
funding.
   44765.7.  (a) A low-performing school within a participating
school district shall receive incentives in the following manner:
   (1) A two thousand dollar ($2,000) incentive shall be provided to
each fully credentialed, appropriately assigned teacher who is hired
by a participating school district to teach in a low-performing
school.  This incentive is to be used by the teacher for one-time
expenditures for his or her classroom.  These funds shall not be used
for any form of teacher compensation.
   (2) A two thousand dollar ($2,000) incentive shall be provided to
the low-performing school for each fully credentialed, appropriately
assigned teacher who is hired and replaces an emergency permit
teacher.  These funds shall be expended at the discretion of the
schoolsite for a one-time purpose to increase the school's ability to
attract and retain teachers, but shall not be used for any form of
teacher compensation.
   (b) A credentialed teacher employed in a school that is not low
performing at the time the act adding this section is enacted is
eligible for incentives if he or she elects to transfer and become
employed in a low-performing school.
   (c) A credentialed teacher is not eligible for the incentives for
changing employment between low-performing schools.
   (d) A emergency permit teacher employed to teach  at a
low-performing school who earns a teaching credential is eligible for
incentives.
   44766.  (a) In the first two years of program participation, a
school district shall attain a cumulative districtwide reduction in
the percentage of emergency permit teachers employed, followed by
further reductions in the percentage of emergency permit teachers
employed in each of the remaining three years of program
participation.  A school district that is not able to attain the
reduction in emergency permit teachers in the timeline designated
shall have its revenue limit funding reduced on a one-time basis by
four thousand dollars ($4,000) per emergency permit teacher in excess
of the target, not to exceed the amount of incentive that has been
received for that period.
   (b) The Commission on Teacher Credentialing shall assess a school
district's progress towards its target during the first two-year
period and each fiscal year thereafter.  If a participating school
district fails to meet the target, the commission shall report to the
Controller the amount of funds to be collected from the school
district.  The Controller shall withhold from the school district's
next principal apportionment the amount reported by the Commission on
Teacher Credentialing.
  SEC. 10.  Section 69532 of the Education Code is amended to read:
   69532.  Cal Grant Program awards shall be known as "Cal Grant A
awards," "Cal Grant B awards,"  and  "Cal Grant C awards
 ," and "Cal Grant T awards  ."  The maximum award
in each category shall be determined in the annual Budget Act.
   (a) Cal Grant A awards shall be used only for tuition and student
fees in an instructional program of no less than two academic years.
Commencing as soon as feasible, but no later than the award cycle
that provides awards for the 1999-2000 academic year, the eligibility
criteria for first-time Cal Grant award recipients who are community
college students and transfer to a four-year college or university
shall be no more stringent than the eligibility criteria for other
first-time Cal Grant award recipients attending a four-year college
or university.
   (b) Cal Grant B awards shall be used only for tuition, student
fees, and subsistence costs in an instructional program of no less
than one academic year.  Subsistence costs are living expenses,
transportation, supplies, and books.  Commencing as soon as feasible,
but no later than the award cycle that provides awards for the
1999-2000 academic year, the eligibility criteria for first-time Cal
Grant award recipients who are community college students and
transfer to a four-year college or university shall be no more
stringent than the eligibility criteria for other first-time Cal
Grant award recipients attending a four-year college or university.
   (c) Cal Grant C awards shall be used only for occupational or
technical training in a course of no less than four months.  There
shall be a minimum of 1,570 new Cal Grant C awards each year.

   (d) Cal Grant T awards shall be used only for tuition and student
fees for a maximum of one academic year of full-time attendance in a
program of professional preparation that has been approved by the
                                             Commission on Teacher
Credentialing.  There shall be a minimum of 3,000 new Cal Grant T
awards each year. 
  SEC. 11.  Section 69535 of the Education Code is amended to read:
   69535.  (a) Cal Grant Program awards shall be based upon the
financial need of the applicant.  The level of financial need of each
applicant shall be determined by the commission pursuant to Article
1.5 (commencing with Section 69503).
   (b) For the applicants so qualifying, academic criteria or
criteria related to past performances shall be utilized as the
criteria in determining eligibility for grants.
   (c) All Cal Grant Program award recipients shall be residents of
California, as determined by the commission pursuant to Part 41
(commencing with Section 68000), and shall remain eligible only if
they are in attendance and making satisfactory progress through the
instructional programs, as determined by the commission.
   (d) Part-time students shall not be discriminated against in the
selection of Cal Grant Program award recipients, and awards to
part-time students shall be roughly proportional to the time spent in
the instructional program, as determined by the commission.
First-time Cal Grant Program award recipients who are part-time
students shall be eligible for a full-time renewal award.
   (e) Cal Grant Program awards shall be awarded without regard to
race, religion, creed, sex, or age.
   (f) No applicant shall receive more than one type of Cal Grant
Program award concurrently.  Except as provided in 
subdivisions   subdivision  (b)  and (c)
 of Section 69535.1, no applicant shall:
   (1) Receive one or a combination of Cal Grant Program awards in
excess of a total of four years of full-time attendance in an
undergraduate program.
   (2) Have obtained a baccalaureate degree prior to receiving a Cal
Grant Program award  , except as provided in Section 69540
 .
   (g) Cal Grant Program awards  , except as provided in
subdivision (c) of Section 69535.1,  may only be used for
educational expenses of a program of study leading directly to an
undergraduate degree or certificate, or for expenses of undergraduate
coursework in a program of study leading directly to a first
professional degree, but for which no baccalaureate degree is
awarded.
   (h) Commencing in 1999, the commission shall, for students who
accelerate college attendance, increase the amount of award
proportional to the period of additional attendance resulting from
attendance in classes that fulfill requirements or electives for
graduation during summer terms, sessions, or quarters.  In the
aggregate, the total amount a student may receive in a four-year
period may not be increased as a result of accelerating his or her
progress to a degree by attending summer terms, sessions, or
quarters.
   (i) The commission shall notify Cal Grant award recipients of the
availability of funding for the summer term, session, or quarter
through prominent notice in financial aid award letters, materials,
guides, electronic information, and other means that may include, but
not be limited to, surveys, newspaper articles, or attachments to
communications from the commission and any other published documents.

   (j) The commission may provide by appropriate rules and
regulations for reports, accounting, and statements from the award
winner and college or university of attendance pertaining to the use
or application of the award as the commission may deem proper.
   (k) The commission may establish Cal Grant Program awards in one
hundred dollar ($100) increments.
   (l) A Cal Grant Program award may be utilized only at the
following institutions or programs:
   (1) Any California private or independent postsecondary
educational institution or program that participates in two of the
three federal campus-based student aid programs and whose students
participate in the Pell Grant program.
   (2) Any nonprofit regionally accredited 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 the purposes of
institutionally funded student financial aid in the form of grants
and that demonstrates to the commission that it has the
administrative capacity to administer the funds.
   (3) Any California public postsecondary educational institution or
program.
  SEC. 12.  Section 69535.1 of the Education Code is amended to read:

   69535.1.  (a) Cal Grant A awards and Cal Grant B awards may be
renewed for a total of four years of full-time attendance in an
undergraduate program provided that financial need continues to
exist.  Commencing with the 1989-90 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.
   (b) 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 financial need continues to exist.

   (c) Cal Grant Program award recipients who have completed a
baccalaureate degree and who have been admitted to and are enrolled
in a program of professional teacher preparation at an institution
approved by the California Commission on Teacher Credentialing are
eligible for renewal of a Cal Grant Program award for an additional
year of full-time attendance, if financial need continues to exist.
   Payment for this additional year is limited to only those courses
required for an initial teaching authorization.  Awards under this
section may not be used for other courses.
   This section applies to those students who complete a
baccalaureate degree in or after 1989.  A student's Cal Grant renewal
eligibility shall not have lapsed more than 15 months prior to the
payment of an award for purposes of this section. 
  SEC. 13.  Section 69540 of the Education Code is repealed.

   69540.  (a) Students who have completed a baccalaureate degree and
who have been admitted to a program of professional teacher
preparation at an institution approved by the California Commission
on Teacher Credentialing are eligible to receive a Cal Grant T award
for the equivalent of one year of full-time attendance.  Payment for
this additional year is limited to only those courses required for an
initial teaching authorization.  An award under this section may not
be used for other courses.
   (b) The commission shall allocate Cal Grant T awards using
academic criteria or criteria related to past performance similar to
that used in awarding Cal Grant A awards. 
  SEC. 14.  Section 69612 of the Education Code is amended to read:
   69612.  (a) (1) The Legislature hereby recognizes that there is a
growing shortage of high-quality classroom teachers, and that there
is a need for qualified teachers throughout California.   The
Legislature finds one of the most important elements in a pupil's
success at learning is the quality of the teacher.   The teacher
shortage is most serious in particular subject areas, partly due to
the shortage of students in these fields who enter the teaching
profession.  The Legislature also recognizes that many school
districts have difficulty recruiting and retaining high-quality
teachers for  low-performing schools, for  pupils with
special needs, for schools serving rural areas or large populations
of  students   pupils  from low-income and
linguistic minority families, and schools with a high percentage of
teachers holding emergency permits.
   (2) The Legislature finds that the rising costs of higher
education, coupled with a shift in available financial aid from
scholarships and grants to loans, make loan repayment options an
important consideration in a student's decision to pursue a
postsecondary education.  The availability of financial aid and loan
repayment assistance are important considerations for many students,
especially economically disadvantaged students, in making their
educational decisions.
   (b) It is the intent of the Legislature that the Assumption
Program of Loans for Education be designed to encourage persons to
enter into the teaching profession in designated subject matter
shortage areas and in schools serving large populations of 
students   pupils  from low-income families,
schools serving rural areas, schools with a high percentage of
teachers holding emergency permits, or schools with any or all of
these characteristics.  It is further the intent of the Legislature
in enacting this article to do all of the following:
   (1) Provide outstanding postsecondary students, particularly
economically disadvantaged students, with the assurance of financial
assistance to encourage them to complete postsecondary education
programs leading to teaching credentials, and to seek employment as
teachers.
   (2) Provide persons who agree to become teacher trainees or
teacher interns in a subject matter shortage area with the assurance
of financial assistance to encourage them to complete the additional
coursework necessary to obtain a teaching credential.
   (3) Identify subject matter areas or schools in which there are
shortages of fully credentialed teachers and provide incentives for
persons to obtain teaching credentials and seek teaching positions in
those areas.
   (4) Identify schools serving rural areas, schools serving large
populations of students from low-income families, or both, and
schools with a high percentage of teachers holding emergency permits,
and provide incentives for persons to obtain teaching credentials
and seek teaching positions in those schools.  
   (5) Identify low-performing schools and provide incentives for
persons to obtain teaching credentials and seek teaching positions in
those schools. For the purpose of this article, "low-performing
school" means a school in the bottom half of the Academic Performance
Index rankings established pursuant to subdivision (a) of Section
52056 at the time that a teacher is hired. 
  SEC. 15.  Section 69612.5 of the Education Code is amended to read:

   69612.5.   It is the intent of the Legislature that,
commencing with the 1985-86 school year   Commencing
with the 2000-01 school year  , all persons eligible to receive
conditional warrants for loan assumptions pursuant to this article
shall be persons who need to complete training or coursework in order
to be fully credentialed  and who agree  to  obtain a
credential and  teach in a designated subject matter shortage
area  ,  or in  schools serving a large
population of students from low-income families and within these
categories, commencing with the 2000-01 school year, those persons
who agree to teach in schools serving rural areas, or commencing with
the 2000-01 school year, in schools with a high percentage of
teachers holding emergency permits   a school that, at
the time that the teacher is hired, meets any of the following
criteria:
   (a) Serves a large population of pupils from low-income families.

   (b) Has a high percentage of teachers holding emergency permits.
   (c) Is a low-performing school  .
  SEC. 16.  Section 69613 of the Education Code is amended to read:
   69613.  (a) Any person enrolled in an institution of postsecondary
education participating in the loan assumption program set forth in
this article, or any person who agrees to participate in a teacher
trainee or teacher internship program, may be eligible to receive a
conditional warrant for loan assumption, to be redeemed pursuant to
Section 69613.2 upon becoming employed as a teacher.  In order to be
eligible to receive a loan assumption warrant, an applicant shall
satisfy all of the conditions specified in either subdivision (b) or
(c).
   (b) (1) The applicant has completed at least 60 semester units, or
the equivalent, and is enrolled in an academic program leading to a
baccalaureate degree at a participating institution, or has been
admitted to a program of professional preparation that has been
approved by the Commission on Teacher Credentialing.
   (2) The applicant is currently enrolled  in  , or
has been admitted to a program in which he or she will be enrolled
 in  ,  on  at least  a half-time
basis, as determined by the participating institution  
10 semester units, or the equivalent  .  The applicant shall
agree to maintain  at least half-time enrollment  
not less than 10 semester units per semester, or the equivalent,
 and to maintain satisfactory academic progress.
   (3) The applicant has been judged by his or her postsecondary
institution to have outstanding ability on the basis of criteria that
may include, but need not be limited to, any of the following:
   (A) Grade point average.
   (B) Test scores.
   (C) Faculty evaluations.
   (D) Interviews.
   (E) Other recommendations.
   (4) In order to meet the costs associated with obtaining a
baccalaureate degree, or a California teaching credential, the
applicant has received, or is approved to receive, a loan under one
or more of the following designated loan programs:
   (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071
et seq.).
   (B) Any loan program approved by the Student Aid Commission.
   (5) The applicant has agreed to teach in a public school in this
state for at least four consecutive academic years after obtaining a
teaching credential.
   (c) (1) The applicant holds a baccalaureate degree and agrees to
participate in a teacher trainee program or teacher internship
program, or is a person who will continue to be employed full time in
a field other than teaching while completing the necessary
coursework for a teaching credential, or is a noncredentialed
teaching paraprofessional, as described in Section 44323, who will
continue to serve as a teaching paraprofessional while completing the
necessary coursework for a California teaching credential.
   (2) (A) The applicant is enrolled in, or has been admitted to, a
participating institution and agrees to maintain satisfactory
academic progress in an academic program leading to a baccalaureate
degree or in a program of professional preparation that has been
approved by the Commission on Teacher Credentialing, and the
applicant satisfies the conditions specified in paragraphs (3), (4),
and (5) of subdivision (b).
   (B) No applicant who has completed fewer than 60 units, or the
equivalent, shall be eligible under this subdivision to participate
in the loan assumption program set forth in this article.
   (d)  Sixty percent of the   The 
warrants distributed each year pursuant to subdivisions (b) and (c)
at each participating institution shall be awarded by that
institution to applicants who  agree to obtain a teaching
credential in subject areas that are designated as current or
projected shortage areas by the Superintendent of Public Instruction
  meet the criteria specified in Section 69612.5 and
agree to teach in any of the areas listed in that section  . The
warrant shall remain valid even if the subject area  under which
an applicant became eligible for a warrant  ceases to be a
designated shortage field by the time the applicant becomes a
teacher.  
   (e) The remaining 40 percent of the warrants distributed each year
pursuant to subdivisions (b) and (c) at each participating
institution shall be awarded to applicants who agree to obtain
teaching credentials in any subject area and to provide classroom
instruction in schools that serve large populations of students from
low-income families, as designated by the superintendent for purposes
of the Perkins Loan Program or otherwise.  The warrant shall remain
valid even if the school ceases to be so designated during the
applicant's second, third, or fourth year of teaching.
   (f) (1) Within the percentages set forth in subdivisions (d) and
(e), commencing with the 2000-01 school year, and every year
thereafter, a proportional number of warrants shall be issued to
applicants who agree to provide classroom instruction in a school
serving a rural area.
   (2) Notwithstanding the percentages set forth in subdivisions (d)
and (e), commencing with the 2000-01 school year, and every year
thereafter, the number of warrants issued to applicants who agree to
teach in schools with a high percentage of teachers holding emergency
permits shall be determined and funded by the Legislature in the
annual Budget Act.
   (g)  
   (e)  A person participating in the program pursuant to this
section shall not receive more than one warrant.  
   (h)  
   (f)  The Student Aid Commission shall adopt rules and
regulations regarding the reallocation of warrants where a
participating institution is unable to utilize its allocated warrants
or is unable to distribute them  proportionately to
subdivisions (d) and (e)  within a reasonable period of
time.
  SEC. 17.  Section 69613.1 of the Education Code is amended to read:

   69613.1.  The Superintendent of Public Instruction shall furnish
the Student Aid Commission with all of the following:
   (a) Commencing January 1, 1990, and every January 1 thereafter, a
list of teaching fields that have the most critical shortage of
teachers.  The superintendent shall review this list annually and
revise the list as he or she deems necessary.
   (b) A list of schools that serve a large population of 
students   pupils  from low-income families, as
designated for purposes of the Perkins Loan Program, or according to
other standards the superintendent deems appropriate.
   (c)  (1)  Commencing January 31, 2000, and every
January 1, thereafter, a list of schools with a high percentage of
teachers holding emergency permits.  The list shall be established
according to criteria determined by the Superintendent of Public
Instruction.  
   (2)  
   (d)  Commencing January 31, 2000, and every January 1,
thereafter, a list of schools serving rural areas.  The list shall be
established according to standards deemed appropriate by the
Superintendent of Public Instruction. 
   (e) Commencing January 31, 2000, and every January 1, thereafter,
a list of low-performing schools. 
  SEC. 18.  Section 69613.3 of the Education Code is repealed.

   69613.3.  (a) Notwithstanding Section 69614, the commission may
annually distribute 50 warrants to project centers of the Science,
Mathematics, and Technology Teacher Pipeline Program specified in
Chapter 3.7 (commencing with Section 8650) of Part 6 to be awarded to
participants in that program who meet the eligibility criteria set
forth in subdivisions (a), (b), and (c) of Section 69613.
   (b) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2001, deletes or extends
that date. 
  SEC. 19.  Section 69613.5 of the Education Code is amended to read:

   69613.5.  (a) Notwithstanding Sections 69612.5 and 69614, for the
purposes of the recruitment of teachers from outside California, the
commission shall annually   may  distribute
 500  warrants to school districts to be awarded to
out-of-state teachers who fulfill the terms of Section 69613.4.  A
teacher who receives a warrant pursuant to this subdivision shall
hold a valid teaching credential, in the subject area of the
California teaching position, from the state in which he or she
resides.
   (b) The commission shall adopt rules and regulations regarding the
allocation of warrants to school districts pursuant to this section.

  SEC. 20.  Section 69613.55 of the Education Code is repealed.

   69613.55.  Within the number of warrants distributed pursuant to
paragraph (d) of Section 69613, the commission shall annually
distribute a minimum of 2,000 awards to applicants who agree to
obtain a teaching credential in mathematics or science.  The
commission shall adopt rules and regulations regarding the
reallocation of these warrants if a participating institution is
unable to utilize the warrants within a reasonable period of time.

  SEC. 21.  Section 69613.6 of the Education Code is amended to read:

   69613.6.  (a) Except as provided in subdivision (b),  in
the event that   if  a program participant fails to
complete a minimum of four consecutive school years of classroom
instruction as required by this article, under the terms of the
agreement pursuant to paragraph (5) of subdivision  (a)
  (b)  of Section 69613, the participant shall
assume full liability for all student loan obligations remaining
after the commission's assumption of loan liability for the last year
of qualifying teaching service pursuant to Section 69613.
   (b) Notwithstanding subdivision (a),  in the event that
  if a program participant becomes unable to
complete one of the four consecutive years of teaching service due to
serious illness, pregnancy, or other natural causes, the participant
shall receive a deferral of the resumption of full liability for the
loan for a period not to exceed one calendar year.
  SEC. 22.  Section 69614 of the Education Code is amended to read:
   69614.  (a) The Student Aid Commission shall distribute 
program information and  student applications to participate in
the loan assumption program to  all  postsecondary
institutions eligible to participate in state and federal financial
aid programs and having a program of professional preparation that
has been approved by the Commission on Teacher Credentialing. Each
eligible institution shall receive at least one application, and the
remainder shall be distributed to eligible institutions proportionate
to the number of teaching candidates from each institution who were
fully credentialed during the previous year.   In addition, the
Student Aid Commission shall reexamine its outreach and marketing
strategies to inform both potential undergraduates and persons
employed outside of academia about the availability and benefits of
the loan assumption program.  To this end, the commission shall
enlist the advice and support of the California Center for Teaching
Profession, the University of California, the California State
University, the Association of Independent California Colleges and
Universities, and private employers and their associations throughout
the state. 
   (b) Each participating institution shall sign an institutional
agreement with the commission, certifying its intent to administer
the loan assumption program according to all applicable published
rules, regulations, and guidelines, and to make special efforts to
notify students regarding the availability of the program,
particularly  economically disadvantaged students.
   (c) To the extent feasible, each participating institution shall
coordinate the loan assumption program with other existing programs
designed to recruit or encourage students to enter the teaching
profession.  These programs may include, but need not be limited to,
student internships in school districts, courses that provide early
exploratory or field work experience in elementary or secondary
schools, and work-study employment in elementary or secondary
schools.
  SEC. 23.  Section 69615.4 of the Education Code is amended to read:

   69615.4.  The commission shall report annually to the Legislature
regarding all of the following, on the basis of sex, age, and
ethnicity:
   (a) The total number of warrants awarded.
   (b) The number of warrants allocated each to juniors, seniors,
students enrolled in teacher training programs, and persons who agree
to enroll in teacher trainee programs or teacher internship
programs.
   (c) The  proportion   number  of
warrants awarded to applicants who pursue a credential in a subject
matter shortage area.
   (d) The  proportion   number  of
warrants awarded to applicants who agree to teach in schools with a
high ratio of  students   pupils  from
low-income families  and low-performing schools  .
   (e)  (1)  The number of warrants awarded to
applicants who agree to teach in schools serving rural areas.

   (2)  
   (f)  The number of warrants awarded to applicants who agree
to teach in schools with a high percentage of teachers holding
emergency permits.  
   (f)  
   (g)  The number of warrants that are redeemed by the initial
recipients.
  SEC. 24.  Section 69615.6 of the Education Code is amended to read:

   69615.6.  (a) Beginning no later than the 1986-87 school year, and
each school year thereafter up to and including the 1997-98 school
year, the commission shall issue warrants for the assumption of up to
500 student loans for program participants eligible under this
article.
   (b) For the 1998-99 school year, the commission shall issue
warrants for the assumption of up to 4,500 student loans for program
participants eligible under this article.
   (c) For the 1999-2000 school year the commission shall issue
warrants for the assumption of up to 5,500 student loans for program
participants eligible under this article.
   (d) Commencing with the 2000-01 school year, and each school year
thereafter, the following shall apply:
   (1) The commission shall issue warrants for the assumption of up
to  5,500   6,500  student loans for
program participants eligible under this article.
   (2)  (A)  Notwithstanding the limitation of
 5,500   6,500  warrants set forth in 
paragraph (1)   subdivision   (c)
 , the commission shall issue warrants in a quantity
determined by the  Governor and the  Legislature in the
annual Budget Act for the assumption of student loans  for
applicants who agree to teach in schools in rural areas.  Priority
for the issuance of the warrants shall be given to applicants who
                                       are recipients of federally
subsidized loans or other need-based loans, as determined by the
commission.
   (B) Notwithstanding the limitation of 5,500 warrants set forth in
subdivision (c), the commission shall issue warrants in a quantity
determined by the Legislature in the annual Budget Act for the
assumption of student loans for applicants who agree to teach in
schools with a high percentage of teachers holding emergency permits.
  Priority for the issuance of the warrants shall be given to
applicants who are recipients of federally subsidized loans or other
need-based loans, as determined by the commission  .
   (3)  Up   Notwithstanding Sections 69612.5
and 69614, up  to 100 of the 5,500   6,500
 warrants issued pursuant to this subdivision  shall
  may  be issued for the assumption of student
loans for applicants who agree to teach in school districts serving
rural areas.  
   (e) The commission may recommend an annual limit under subdivision
(d) that is higher than 5,500 and submit that recommendation to the
Legislative Analyst for review and comment.  It is the intent of the
Legislature that the amount appropriated for purposes of this section
in the Budget Act reflect consideration of the information provided
by the commission and the Legislative Analyst under this subdivision.
  
   (f)  
   (e)  The issuance of warrants shall be subject to funding to
be provided in the Budget Act for each fiscal year.
  SEC. 25.  Article 21 (commencing with Section 70000) is added to
Chapter 2 of Part 42 of the Education Code, to read:

      Article 21.  Governor's Teaching Fellowships

   70000.  (a) The Governor's Teaching Fellowships Program is hereby
established to be administered by the Chancellor's Office of the
California State University.  The chancellor's office shall
collaborate with the University of California, the California
Community Colleges, the Association of Independent California
Colleges and Universities, the State Department of Education, and the
Commission on Teacher Credentialing to ensure that access to the
fellowships is available to students in a variety of teaching
preparation programs.
   (b) In January 2001, 250 nonrenewable graduate teaching
fellowships in the amount of twenty thousand dollars ($20,000) each
shall be awarded, with funds disbursed half in January 2001 and half
in September 2001.
   (c) Beginning in the 2001-02 fiscal year, 1,000 nonrenewable,
graduate teaching fellowships in the amount of twenty thousand
dollars ($20,000) each shall be awarded annually.
   (d) The fellowship award may be used to defer tuition and living
expenses for a teacher certification program at any accredited
postsecondary institution in California.
   70001.  (a) The Chancellor's Office of the California State
University shall have the following duties:
   (1) Developing an application process that establishes a
merit-based fellowship program for graduate students who agree to
teach at a low-performing school for four years.
   (2) Establishing a broad and effective outreach effort to promote
the availability and the merits of the fellowship program.
   (3) Conducting the selection process for fellowship applicants.
   (4) Collaborating with the Commission on Teacher Credentialing to
develop and implement a system for monitoring program participants
through the completion of their four-year teaching obligation.
   (5) Determining the criteria for selecting teaching fellowship
candidates.  The criteria shall include, at a minimum, all of the
following:
   (A) Previous academic and employment record.
   (B) A demonstrated commitment to serve in a low-performing school.

   (C) Faculty and employer evaluations.
   (D) Interviews.
   (E) Letters of recommendation.
   (b) For the purposes of this article, a "low-performing school" is
a school in the bottom half of the Academic Performance Index
rankings established pursuant to subdivision (a) of Section 52056.
If a school meets this criteria at the time a teacher is hired,
continued employment of the teacher at that school fulfills the
commitment made by the teacher, even if the school improves its rank
on the Academic Performance Index.
   70002.  An intersegmental review committee is hereby established
to review all applications for the Governor's Teaching Fellowships.
The committee shall recommend teaching fellowship candidates to the
Chancellor's Office of the California State University.  The
committee shall consist of 12 members, appointed by the Governor to a
term of four years, based on recommendations as follows:
   (a) The Chancellor of the California State University shall
recommend six members.  Two shall be faculty members.  One shall be
an administrator from higher education.  One shall be an
administrator from a school maintaining kindergarten or any of grades
1 to 12, inclusive.  Two shall be teachers from schools maintaining
kindergarten or any of grades 1 to 12, inclusive.
   (b) The President of the University of California shall recommend
three members.  One shall be a faculty member.  One shall be an
administrator from either higher education or schools maintaining
kindergarten or any of grades 1 to 12, inclusive.  One shall be an
elementary or secondary teacher.
   (c) The Chair of the Association of Independent California
Colleges and Universities shall recommend three members.  One shall
be a faculty member. One shall be an administrator from either higher
education or schools maintaining kindergarten or any of grades 1 to
12, inclusive.  One shall be an elementary or secondary teacher.
   70003.  (a) A fellowship recipient shall agree to teach in a
low-performing school for four years and shall have four years, upon
completion of his or her preparation program, to meet that
obligation.  Except as provided in subdivision (c), a fellowship
recipient shall agree to repay the state five thousand dollars
($5,000) annually for each year the recipient fails to complete
either the teacher preparation program or the required teaching
service, up to full repayment of twenty thousand dollars ($20,000).
   (b) Nonperformance of the commitment to teach in a low-performing
school for four years shall be certified by the Commission on Teacher
Credentialing to the chancellor's office.
   (c) Any exceptions to the requirement for repayment shall be
defined by the chancellor's office.
   70004.  The Trustees of the California State University shall
provide an annual report, for each higher education institution, on
the number of fellows receiving funding, the number of fellows
completing programs, and the place of employment for each candidate.

   70005.  (a) The Chancellor's Office of the California State
University shall adopt any rules and regulations it deems necessary
for the administration of this section and the recovery of funds it
determines are owed to the state.  The rules and regulations adopted
by the chancellor's office pursuant to this section shall also
include a provision authorizing the chancellor's office to impose a
civil penalty on a recipient of funds under this program, in an
amount not to exceed five thousand dollars ($5,000) per year for each
year that the recipient of funds is determined by the Commission on
Teacher Credentialing to have failed to fulfill his or her obligation
to teach in a low-performing school.
   (b) Any moneys derived from the assessment of penalties pursuant
to this section shall be deposited into the General Fund.
  SEC. 26.  Chapter 9.5 (commencing with Section 51460) is added to
Part 3 of Division 31 of the Health and Safety Code, to read:

      CHAPTER 9.5.  NEIGHBORHOOD TEACHERS PROGRAM

   51460.  (a) It is the intent of the Legislature that an affordable
homebuyer housing down payment assistance program be implemented to
address the needs associated with recruiting and retaining public
school teachers in the state.
   (b) The Department of Housing and Community Development shall
contract with the California Housing Finance Agency for the
administration of the program established by this chapter.  The
California Housing Finance Agency shall administer these programs and
allocate funds in accordance with that agency's authority as set
forth in Part 3 (commencing with Section 50900) of Division 31.
   51461.  For the purposes of this chapter, the following terms have
the following definitions:
   (a) "Low-performing school" means a public school in the bottom
half of the Academic Performance Index rankings established pursuant
to subdivision (a) of Section 52056 of the Education Code.  This
designation shall be determined as of the date of the loan obtained
pursuant to this chapter.
   (b) "Teacher" means a person who is currently employed as a
full-time teacher in a low-performing school and who holds the
appropriate credential for the subject and grade level the teacher is
assigned to teach.
   (c) "Termination of employment" means the borrower is no longer
meeting, for whatever reason, each of the elements of the definition
of "teacher" at any time during the first five years immediately
following the date of recordation of the subordinate mortgage loan
deed of trust.  However, a termination of employment does not occur
if the borrower is still employed at the same school as at the time
of recordation of the subordinate mortgage loan and the school is no
longer a low-performing school or if the borrower accepts a teaching
position at another public school and the teacher's departure from
the low-performing school was involuntary.  The agency may establish
guidelines for consideration of hardship cases in which it may waive
this five-year continuous employment requirement.
   51462.  (a) The agency shall administer a Neighborhood Teachers
Program in accordance with this chapter for the purpose of providing
down payment assistance to teachers for the purchase of a residence
located in this state.  The agency may originate and service loans
and establish, by board resolution, guidelines for administration and
implementation of this program.
   (b) Down payment assistance shall be in the form of a
deferred-payment, low-interest subordinate mortgage loan in second
lien position and with a term not longer than the term of the first
mortgage loan.  Interest on this subordinate mortgage loan shall
accrue at a rate determined by the agency. The maximum down payment
assistance to any borrower provided shall not exceed ten thousand
dollars ($10,000).
   (c) All allocations and repayments shall be used for the purposes
of this program, including administrative costs.
   51463.  (a) To qualify for a loan under this chapter, the borrower
and the residence being financed shall meet the following criteria
at the time the assistance is provided:
   (1) The borrower shall  be a teacher as defined in subdivision (b)
of Section 51460.
   (2) The residence financed shall be intended to be the borrower's
primary residence.
   (3) The residence being financed shall be a single-family
residence, condominium, or manufactured home located within the State
of California.
   (b) The borrower's obligation to repay the assistance received
pursuant to this chapter shall be evidenced by a lien subordinate in
priority to the borrower's first mortgage lien.
   51464.  (a) To qualify for forgiveness for repayment of the
assistance provided under this chapter, a teacher shall meet the
following continued eligibility requirements on a continuous basis
for five years following the date of recordation of the lien or deed
of trust evidencing this assistance:
   (1) The borrower shall continuously occupy the residence being
purchased and financed under this chapter as his or her principal
residence.
   (2) The borrower may not have a termination of employment, as
defined in subdivision (c) of Section 51460.
   (b) If the borrower meets the continued eligibility requirements
of subdivision (a) for the full five-year continued eligibility
period, repayment of the assistance shall be forgiven and considered
a grant so long as the borrower produces records sufficient to the
agency's satisfaction that the continued eligibility requirements of
occupancy and employment have been met during that five-year period.

   (c) Repayment of the principal and accrued interest shall be due
and payable at the earlier of the following events:
   (1) Transfer of title.
   (2) Sale of the residence.
   (3) Payoff of the first mortgage loan.
   (d) The agency may agree to subordinate its lien if there is a
refinancing of the borrower's first mortgage lien at any time during
the first five year continued eligibility period if the following
conditions are met:
   (1) The borrower has been occupying, and intends to continuously
occupy, the residence as his or her principal residence.
   (2) There has not been a termination of employment.
   (3) The value of the refinanced first mortgage and the ten
thousand dollars ($10,000) of assistance combined will not exceed 100
percent of the appraised value of the property.
   The agency shall require immediate repayment of amounts then owed
if there is a refinancing of the first mortgage and these conditions
are not met or if there is a refinancing that occurs after the five
year continued eligibility period.
   (e) In the event of termination of employment by the borrower or
the borrower's failure to continuously occupy the financed residence
as his or her principal residence during the first five years
following recordation of the subordinate mortgage loan deed of trust,
the borrower shall be obligated to repay to the agency, in addition
to other amounts due on the loan, the pro rata amount of principal
and accrued interest on the loan which directly relates to the period
of time within that five-year period in which the borrower failed to
satisfy each of requirements set forth in subdivision (a).
   (f) To qualify for any pro rata forgiveness of repayment of the
loan, the borrower shall produce records to the agency's satisfaction
that all of the conditions specified in subdivision (a) have been
met for the period for which the pro rata forgiveness of the loan is
sought.
   51465.  The agency shall have all of the powers conferred upon it
by Part 3 (commencing with Section 50900) of Division 31 of the
Health and Safety Code in administering this chapter.
  SEC. 27.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to implement the Budget Act of 2000 with respect to the
public schools and institutions of higher education, it is necessary
that this act take effect immediately.