Bill Text: CA AB167 | 2025-2026 | Regular Session | Enrolled

California Assembly Bill 167

Bill Title: Higher education budget trailer bill.

Sponsorship: Committee Bill

Status: (Enrolled) 2026-08-31 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0.). [AB167 Detail]

Download: California-2025-AB167-Enrolled.html

Enrolled September 01, 2026

Passed IN Senate August 31, 2026

Passed IN Assembly August 31, 2026

Amended IN Senate August 28, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 167

Introduced by Committee on Budget (Assembly Members Gabriel (Chair), Addis, Ahrens, Alvarez, Bennett, Bonta, Caloza, Connolly, Fong, Haney, Hart, Jackson, Lee, Ortega, Patel, Petrie-Norris, Quirk-Silva, Ramos, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, and Wilson)

January 08, 2025

An act to amend Sections 69436, 69743.5, 69745, 69746, 84750.4, and 89526 of, and to repeal Section 84750.7 of, the Education Code, to amend Sections 15820.200, 15820.201, 15820.202, 15820.203, and 15820.205 of, and to add Section 15820.208 to, the Government Code, to amend Sections 1627, 1629.5, and 1630 of the Health and Safety Code, to amend Section 27 of Chapter 9 of the Statutes of 2025, and to amend Section 41 of Chapter 79 of the Statutes of 2026, relating to postsecondary education, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL'S DIGEST

AB 167, Committee on Budget. Higher education budget trailer bill.

Existing law prohibits a student who will be 28 years of age or older by December 31 of an award year from receiving a California Community College Transfer Cal Grant Entitlement Award except, from the 2026–27 award year to the 2030–31 award year, inclusive, existing law instead prohibits a student who will be 30 years of age or older by December 31 of an award year from receiving a California Community College Transfer Cal Grant Entitlement Award.

This bill instead would prohibit, from the 2027–28 award year to the 2031–32 award year, inclusive, a student who will be 30 years of age or older by December 31 of an award year from receiving a California Community College Transfer Cal Grant Entitlement Award.

Existing law establishes the Public Interest Attorney Loan Repayment Program, under the administration of the Student Aid Commission, for licensed attorneys who practice or agree to practice in public interest areas of the law, as defined, and who meet established eligibility criteria. Existing law requires loan repayment of the eligible participant to be made to the lender, as provided.

This bill would authorize loan repayment under the Public Interest Attorney Loan Repayment Program to also be made to the participant, and would make related and conforming changes.

Existing law requires the office of the Chancellor of the California State University to annually develop, and to report on or before February 15 of each year, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Department of Finance enrollment targets and related data for each California State University campus, as provided.

This bill would instead require the chancellor’s office to report the enrollment targets and related data on or before March 15 of each year.

Existing law appropriates $49,734,000 in the 2025–26 fiscal year from the Public School System Stabilization Account for allocation for the Student Centered Funding Formula, as specified.

This bill would repeal that appropriation.

Existing law authorizes the Board of Governors of the California Community Colleges, a participating college, as defined, and the State Public Works Board (SPWB) to acquire, design, construct, and equip a student housing project, as described, and to acquire the site or sites upon which a student housing project is located. To be eligible for financing for a student housing project, existing law requires a participating college to, among other things, certify to the SPWB that the student housing project design includes the number of beds for low-income students specified in a certain application, as provided. Existing law requires the board of governors, a participating college, and the SPWB to enter into an agreement for each student housing project, as provided.

This bill would revise and recast the provisions governing the above-described student housing projects, as specified, including, among other revisions, deleting the above-described authority to acquire a student housing project and to acquire the site or sites upon which a student housing project is located. For student housing projects selected for financing on or after June 30, 2026, the bill would instead require the board of governors to provide SPWB with specified information, including, among other things, documentation that the participating college has fee title ownership of the property upon which the project will be constructed, and documentation of the participating college’s unmet demand for student housing, as specified.

Existing law requests the University of California to establish and administer the Umbilical Cord Blood Collection Program, until January 1, 2027, for the purpose of collecting units of umbilical cord blood for public use, as defined, in transplantation and providing nonclinical units for specified research. Existing law requires the university, by January 1, 2026, if it elects to administer the program, to provide a report to the Assembly and Senate Committees on Health that addresses specified information relating to the program, including the number of cord blood units collected and registered under the program, disaggregated by race and ethnicity.

This bill would extend the provisions of the program until January 1, 2032. The bill would require the university, by January 1, 2031, if it elects to administer the program, to provide a report to the Assembly and Senate Committees on Health that addresses specified information relating to the program.

Existing law appropriates $60,000,000 in the 2025–26 fiscal year, and $147,208,000 in the 2026–27 fiscal year, from the General Fund to the board of governors for the Student Support Block Grant. Existing law authorizes these funds to be expended until June 30, 2029, for specified purposes, including, among other purposes, student basic needs assistance and mental health services, as provided. Existing law requires community college districts, as a condition of receiving these funds, to submit a report to the office of the Chancellor of the California Community Colleges on or before December 31, 2026, and on or before December 31 each year thereafter until December 31, 2029, as provided. Existing law requires the chancellor’s office to submit an interim report on or before July 1, 2028, and a final report on or before July 1, 2030, to the Department of Finance and the relevant policy and fiscal committees of the Legislature, as provided.

This bill would appropriate an additional $325,000 in the 2026–27 fiscal year for the Student Support Block Grant. The bill would instead authorize the funds appropriated for the Student Support Block Grant to be expended until June 30, 2030, for any student support program purpose, including, but not limited to, the above-described purposes. The bill would extend by one year the above-described deadlines and sunset date for the annual report submitted by community college districts, and would require the chancellor’s office to submit the above-described interim report on or before December 31, 2028, and the above-described final report on or before December 31, 2031.

Existing law appropriates $15,000,000 in the 2026–27 fiscal year from the General Fund to the board of governors to support lesbian, gay, bisexual, transgender, and queer students. For purposes of allocating and expending this funding, existing law requires the chancellor’s office to provide grants of up to $900,000 for participating community college districts based on the proportional share of students they serve and equity metrics to ensure that small rural colleges are also able to access the grants, and authorizes participating community college districts to encumber the funds over a 5-year period.

This bill would delete the above-described grant requirement and encumbrance provision.

The funds appropriated by the bill would be applied toward meeting the minimum funding requirements for school district and community college districts imposed by Section 8 of Article XVI of the California Constitution, as specified.

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

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO

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

SECTION 1.

Section 69436 of the Education Code is amended to read:

69436.

(a) A student who was not awarded a Cal Grant A or B award pursuant to Article 2 (commencing with Section 69434) or Article 3 (commencing with Section 69435), respectively, at the time of their high school graduation but, at the time of transfer from a California community college to a qualifying baccalaureate program or upon matriculation into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, meets all of the criteria set forth in subdivision (b), shall be entitled to a Cal Grant A or B award.

(b) Any California resident transferring from a California community college to a qualifying institution that offers a baccalaureate degree or who matriculates into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, is entitled to receive, and the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall award, a Cal Grant A or B award depending on the eligibility determined pursuant to subdivision (c), if all of the following criteria are met:

(1) A complete official financial aid application has been submitted or postmarked pursuant to Section 69432.9, no later than the March 2 of the year immediately preceding the award year.

(2) The student demonstrates financial need pursuant to Section 69433.

(3) The student has earned a community college grade point average of at least 2.4 on a 4.0 scale and is eligible to transfer to a qualifying institution that offers a baccalaureate degree.

(4) The student’s household has an income and asset level not exceeding the limits set forth in Section 69432.7.

(5) The student is pursuing a baccalaureate degree that is offered by a qualifying institution.

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

(7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430).

(8) (A) Except as provided in subparagraph (B), the student will not be 28 years of age or older by December 31 of the award year.

(B) Notwithstanding subparagraph (A), for the 2027–28 award year through the 2031–32 award year, inclusive, the student will not be 30 years of age or older by December 31 of the award year.

(9) The student graduated from a California high school or its equivalent during or after the 2000–01 academic year.

(10) (A) Except as provided for in subparagraph (B), the student attended a California community college in the academic year immediately preceding the academic year for which the award will be used.

(B) A student otherwise eligible to receive an award pursuant to this section, who attended a California community college in the 2011–12 academic year, may use the award for the 2012–13 and 2013–14 academic years.

(1) For applicants with income and assets at or under the Cal Grant A limits, the award amount shall be the amount established pursuant to Article 2 (commencing with Section 69434).

(2) For applicants with income and assets at or under the Cal Grant B limits, the award amount shall be the amount established pursuant to Article 3 (commencing with Section 69435).

(d) (1) A student meeting the requirements of paragraph (9) of subdivision (b) by means of high school graduation, rather than its equivalent, shall be required to have graduated from a California high school, unless that California resident graduated from a high school outside of California due solely to orders received from a branch of the United States Armed Forces by that student or by that student’s parent or guardian that required that student to be outside of California at the time of high school graduation.

(2) For the purposes of this article, all of the following are exempt from the requirements of paragraph (4) of subdivision (a) of Section 69433.9 and paragraph (9) of subdivision (b) of this section:

(A) A student for whom a claim under this article was paid before December 1, 2005.

(B) A student for whom a claim under this article for the 2004–05 award year or the 2005–06 award year was or is paid on or after December 1, 2005, but no later than October 15, 2006.

(C) Commencing with the 2017–18 academic year, a student who did not graduate from high school or its equivalent and was a California resident, as determined pursuant to Article 5 (commencing with Section 68060) of Chapter 1 of Part 41, on their 18th birthday.

(3) (A) The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall make preliminary awards to all applicants currently eligible for an award under this article. At the time an applicant receives a preliminary award, the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall require that applicant to affirm, in writing, under penalty of perjury, that they meet the requirements set forth in paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall notify each person who receives a preliminary award under this paragraph that their award is subject to an audit pursuant to subparagraph (B).

(B) The commission shall select, at random, a minimum of 10 percent of the new and renewal awards made under subparagraph (A), and shall require, before the disbursement of Cal Grant funds to the affected postsecondary institution, that the institution verify that the recipient meets the requirements of paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. An award that is audited under this paragraph and found to be valid shall not be subject to a subsequent audit.

(C) Pursuant to Section 69517.5, the commission shall seek repayment of any and all funds found to be improperly disbursed under this article.

(D) On or before November 1 of each year, the commission shall submit a report to the Legislature and the Governor, including, but not limited to, both of the following:

(i) The number of awards made under this article in the preceding 12 months.

(ii) The number of new and renewal awards selected, in the preceding 12 months, for verification under subparagraph (B), and the results of that verification with respect to students at the University of California, at the California State University, at independent nonprofit institutions, and at independent for-profit institutions.

SEC. 2.

Section 69743.5 of the Education Code is amended to read:

69743.5.

The commission shall select, from the qualified applicants, the individuals who are eligible to participate in the program. After each year-long period of full-time, or full-time equivalent, employment in a public interest area of the law, the loan repayment of the eligible participant shall be made to the participant or the lender, as elected by the participant, in accordance with this article.

SEC. 3.

Section 69745 of the Education Code is amended to read:

69745.

(a) Loans from both government sources and financial institutions may be repaid by the program. Each participant shall agree to allow the commission access to loan records and to acquire information from lenders necessary to verify eligibility and to determine payments. Loans may not be renegotiated with lenders to accelerate repayment.

(b) Payments shall be made annually to the participant or the lender, as elected by the participant, until the loan is repaid, fulfilled, or until the required service obligation is fulfilled and eligibility discontinues, whichever comes first.

(c) Upon confirmation of the disbursement of the final payment, the commission shall verify that payments provided to participants pursuant to subdivision (b) were used in accordance with this article.

(d) If the participant discontinues practicing in a public interest area of the law, payments to the participant or the lender made against the loans issued pursuant to subdivision (b) shall cease to be effective on the date that the participant discontinues service.

SEC. 4.

Section 69746 of the Education Code is amended to read:

69746.

The commission is not responsible for any outstanding payments on principal and interest to any participant or lender once a participant’s eligibility expires.

SEC. 5.

Section 84750.4 of the Education Code is amended to read:

84750.4.

(a) (1) The board of governors, in accordance with this section, 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 purpose 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.

(2) It is the intent of the Legislature in enacting this section to adopt a formula for general purpose apportionments that encourages access for underrepresented students, provides additional funding in recognition of the need to provide additional support for low-income students, rewards colleges’ progress on improving student success metrics, and improves overall equity and predictability so that community college districts may more readily plan and implement instruction and programs.

(3) It is the intent of the Legislature to determine the amounts appropriated for purposes of this section through the annual Budget Act. This section shall not be construed as limiting the authority of either the Governor to propose, or the Legislature to approve, appropriations for the California Community Colleges programs or purposes.

(4) It is the intent of the Legislature that for the 2020–21 fiscal year, 70 percent of funding for the Student Centered Funding Formula is for the base allocation provided to districts, 20 percent is for the supplemental allocation provided to districts, and 10 percent is for student success allocation provided to districts.

(b) (1) Commencing with the 2018–19 fiscal year, and each fiscal year thereafter, the chancellor’s office shall annually calculate a base allocation, a supplemental allocation, and a student success allocation for each community college district in the state pursuant to this section. This calculation applies only to the allocation of credit revenue. Noncredit instruction, and instruction in career development and college preparation full-time equivalent students (FTES) shall be funded pursuant to the requirements of paragraphs (3) and (4), respectively, of subdivision (d) of Section 84750.5, as that section read on January 1, 2018.

(2) (A) As used in this paragraph, a public safety agency includes, but is not limited to, a fire department, a police department, a sheriff’s office, a public agency employing paramedics or emergency medical technicians, the Department of the California Highway Patrol, and the Department of Corrections and Rehabilitation.

(B) Commencing with the 2022–23 academic year, each community college district with an instructional service agreement with a public safety agency may annually submit a copy of its most up-to-date instructional service agreement to the chancellor’s office for review. If an agreement is renewed or updated it may be submitted to the chancellor’s office at the time it is renewed or updated.

(C) Beginning January 1, 2024, each community college district with an instructional service agreement with a public safety agency may annually submit data to the chancellor’s office on course offerings, student enrollment and FTES, and course completion, including data from the 2020–21, 2021–22, and 2022–23 academic years.

(D) On or before December 31, 2024, upon review and analysis of the community college district agreements and program data submitted pursuant to subparagraphs (B) and (C), the chancellor’s office shall issue a recommendation to the Department of Finance and the Legislature, consistent with Section 9795 of the Government Code, on the instructional service agreement FTES apportionment that community college districts are eligible to claim.

(3) For purposes of this section, unless otherwise specified in the annual Budget Act, the cost-of-living adjustment shall be the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year.

(c) For purposes of computing the base allocation, the marginal funding rate for credit revenue per FTES shall be as follows:

(1) For the 2018–19 fiscal year, three thousand seven hundred twenty-seven dollars ($3,727).

(2) For the 2019–20 fiscal year, four thousand nine dollars ($4,009).

(3) Commencing with the 2020–21 fiscal year, the rate specified in paragraph (2) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.

(d) (1) The base allocation shall be computed for each community college district as follows:

(A) Each community college district shall receive a basic allocation based on the number of colleges and comprehensive centers in the community college district that is consistent with the basic allocation formula established by the board of governors pursuant to paragraph (2) of subdivision (d) of Section 84750.5 as of the 2015–16 fiscal year.

(B) Unless otherwise specified in subparagraph (C), each community college district shall receive an allocation based on credit base revenues associated with funded FTES as computed pursuant to subparagraph (A) of paragraph (2) at the rate pursuant to subdivision (c).

(C) Notwithstanding the rate in subdivision (c), for community college districts that had higher rates used to calculate their 2017–18 general purpose apportionments, the following rates shall be used to calculate their base allocations:

(i) For the 2018–19 fiscal year, as follows:

(I) For Foothill-De Anza Community College District, the rate shall be no less than three thousand seven hundred forty-five dollars ($3,745).

(II) For Lake Tahoe Community College District, the rate shall be no less than three thousand eight hundred eighteen dollars ($3,818).

(III) For Lassen Community College District, the rate shall be no less than three thousand seven hundred ninety-four dollars ($3,794).

(IV) For Marin Community College District, the rate shall be no less than four thousand two hundred sixty-one dollars ($4,261).

(V) For MiraCosta Community College District, the rate shall be no less than three thousand seven hundred thirty-four dollars ($3,734).

(VI) For San Francisco Community College District, the rate shall be no less than three thousand seven hundred fifty-six dollars ($3,756).

(VII) For San Jose-Evergreen Community College District, the rate shall be no less than three thousand seven hundred forty-four dollars ($3,744).

(VIII) For Santa Monica Community College District, the rate shall be no less than three thousand seven hundred seventy-six dollars ($3,776).

(IX) For South Orange Community College District, the rate shall be no less than three thousand eight hundred twenty-six dollars ($3,826).

(X) For West Kern Community College District, the rate shall be no less than four thousand nine hundred thirty-four dollars ($4,934).

(ii) For the 2019–20 fiscal year, as follows:

(I) For Foothill-De Anza Community College District, the rate shall be no less than four thousand twenty-eight dollars ($4,028).

(II) For Lake Tahoe Community College District, the rate shall be no less than four thousand one hundred seven dollars ($4,107).

(III) For Lassen Community College District, the rate shall be no less than four thousand eighty-one dollars ($4,081).

(IV) For Marin Community College District, the rate shall be no less than four thousand five hundred eighty-three dollars ($4,583).

(V) For MiraCosta Community College District, the rate shall be no less than four thousand sixteen dollars ($4,016).

(VI) For San Francisco Community College District, the rate shall be no less than four thousand forty dollars ($4,040).

(VII) For San Jose-Evergreen Community College District, the rate shall be no less than four thousand twenty-seven dollars ($4,027).

(VIII) For Santa Monica Community College District, the rate shall be no less than four thousand sixty-two dollars ($4,062).

(IX) For South Orange Community College District, the rate shall be no less than four thousand one hundred fifteen dollars ($4,115).

(X) For West Kern Community College District, the rate shall be no less than five thousand three hundred seven dollars ($5,307).

(iii) Commencing with the 2020–21 fiscal year, the rates specified in clause (ii) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.

(2) To calculate the base allocation for each community college district, the chancellor’s office shall calculate the three-year rolling average comprised of funded FTES from the current year, the prior year, and the year before the prior year, as follows:

(A) Commencing with the 2018–19 fiscal year, the chancellor’s office shall compute the sum of annually funded credit FTES from the current year, the prior year, and the year before the prior year, and divide the sum by three.

(B) (i) In computing the three-year average pursuant to subparagraph (A), credit FTES associated with enrollment growth proposed in the annual Budget Act shall be excluded from the three-year average and shall instead be added to the computed three-year rolling average.

(ii) In computing the three-year average pursuant to subparagraph (A), credit FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be excluded.

(C) The sum of a community college district’s computed three-year FTES rolling average and current year funded FTES growth shall be multiplied by a community college district’s applicable base allocation funding rate pursuant to subdivision (c), or subparagraph (C) of paragraph (1), as applicable, to compute a community college district’s base allocation.

(D) Community college districts are entitled to the restoration of any reductions in their base allocation due to decreases in FTES during the three years following the initial year of decrease if there is a subsequent increase in FTES.

(E) For the calculation of the three-year rolling average for the base allocation for the 2020–21 fiscal year, the sum of funded credit FTES for the 2019–20 fiscal year, as adjusted for shifts in summer enrollment between fiscal years, may be used in place of funded credit FTES for the 2020–21 fiscal year.

(F) Notwithstanding subparagraph (A), for purposes of calculating the base allocation pursuant to this subdivision for the 2026–27 fiscal year and each fiscal year thereafter, a community college district’s funded credit FTES shall be the greater of the following:

(i) The three-year rolling average of funded credit FTES calculated pursuant to subparagraph (A).

(ii) The community college district’s current year credit FTES that are eligible for funding pursuant to this paragraph.

(3) In addition to the amounts computed pursuant to paragraphs (1) and (2), each community college district shall receive an allocation based on credit base revenues associated with funded FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004. FTES generated by students who meet the requirements of subdivision (a) of Section 84810.5 and special admit students pursuant to Sections 76002, 76003, and 76004 shall be multiplied by a community college district’s applicable credit revenue rate computed for the 2017–18 fiscal year pursuant to Section 84750.5, as that section read on January 1, 2018, as adjusted for 2018–19 fiscal year cost-of-living adjustment and other base adjustments, and adjusted for the changes in the cost-of-living and other base adjustments in subsequent annual budget acts.

(4) The chancellor shall allocate any funding appropriated in the Budget Act for enrollment growth to support the following:

(A) First, for the stated percentage of enrollment growth in the Budget Act and consistent with the growth formula used by the board of governors in the 2015–16 fiscal year.

(B) Second, for the amount of uncapped growth attributable to increases in the amount of a community college district’s supplemental allocation.

(C) Third, for the amount of uncapped growth attributable to increases in the amount of a community college district’s student success allocation.

(e) Commencing with the 2018–19 fiscal year, a supplemental allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:

(1) The marginal funding rate per point for computing a supplemental allocation shall be as follows:

(A) For the 2018–19 fiscal year, nine hundred nineteen dollars ($919).

(B) For the 2019–20 fiscal year, nine hundred forty-eight dollars ($948).

(C) (i) Commencing with the 2020–21 fiscal year, the rate specified in subparagraph (B) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.

(ii) For the calculation of the supplemental allocation for the 2020–21 fiscal year, data from the 2018–19 fiscal year, for purposes of paragraphs (2), (3), and (4), may be used in place of data from the 2019–20 fiscal year.

(2) Each community college district shall be granted one point for each student who is a recipient of financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) based on headcount data of students in the prior year.

(3) Each community college district shall be granted one point for each student who is granted an exemption from nonresident tuition pursuant to Section 68130.5, based on headcount data of students in the prior year.

(4) Each community college district shall be granted one point for each student who receives a fee waiver pursuant to Section 76300, based on headcount data of students in the prior year.

(5) For the purpose of calculating the supplemental allocation, the number of students shall be defined as the number of students served by the community college district.

(6) It is the intent of the Legislature that the annual Budget Act fully fund increases in the supplemental allocations computed under this section.

(f) Commencing with the 2018–19 fiscal year, a student success allocation shall be computed for each community college district based on the total points calculated for each community college district in accordance with all of the following:

(1) (A) (i) The marginal funding rate per point for computing student success allocation revenue shall be as follows:

(I) For the 2018–19 fiscal year, four hundred forty dollars ($440).

(II) For the 2019–20 fiscal year, five hundred fifty-nine dollars ($559).

(III) Commencing with the 2020–21 fiscal year, the rate specified in subclause (II) adjusted for changes in the cost-of-living adjustment and other base adjustments in subsequent annual budget acts.

(ii) (I) Commencing with the 2019–20 fiscal year, to calculate the student success allocation for each community college district, the chancellor’s office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellor’s office shall compute the sum of data for that metric from the prior year, the year before the prior year, and the year before the year before the prior year, and divide the sum by three.

(II) For the calculation of the three-year rolling average for the student success allocation for the 2020–21 fiscal year, data from the 2018–19 fiscal year, for purposes of subparagraphs (B), (C), (D), (E), and (F), may be used in place of data from the 2019–20 fiscal year.

(B) Each community college district shall be granted, for each student, points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:

(i) Three points for each chancellor’s office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(ii) Four points for each chancellor’s office approved associate degree for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(iii) (I) Two points for each chancellor’s office approved credit certificate requiring 18 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(II) Chancellor’s office approved credit certificates requiring 16 or more units granted may be used to compute these points if the chancellor’s office adopts regulations authorizing the approval and issuance of certificates requiring 16 or more units.

(C) Each community college district shall be granted two points for each student who successfully completes both transfer-level mathematics and English courses within the student’s first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(D) (i) Each community college district shall be granted one and one-half points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(ii) The chancellor’s office may reduce a community college district’s transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that has not demonstrated a track record of providing its students with a baccalaureate degree that leads to a majority of the private for-profit college’s baccalaureate degree program students obtaining a regional living wage within one year of completing their degree program.

(iii) The chancellor’s office may reduce a community college district’s transfer points if a community college district enters into, or expands, a transfer partnership with a private for-profit college that does not meet the qualifications to offer its students federal financial aid.

(iv) (I) For the 2018–19 fiscal year, the data for this metric shall be compiled using publicly available data on transfer students to in-state private and out-of-state institutions, based upon the definition of transfer students reflected in the Transfer Volume to In-State Private and Out-of-State Baccalaureate Granting Institutions Report from the community college management information system as of January 1, 2019, publicly reported transfer data from the California State University, and publicly reported transfer data from the University of California.

(II) Commencing with the 2019–20 fiscal year, the data for this metric shall be based upon a student meeting the following criteria:

(ia) The student has an enrollment record in a community college district in the year before the prior year.

(ib) The student has completed 12 or more semester units, or the equivalent, systemwide through the end of the prior year.

(ic) The student does not have an enrollment record systemwide in the prior year.

(id) The student enrolled in a four-year university in the prior year.

(ie) The student has completed 12 or more semester units, or the equivalent, in the community college district in the year before the prior year.

(E) Each community college district shall be granted one point for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(F) Each community college district shall be granted one point for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(2) (A) (i) Each community college district shall also be granted additional points for an equity component of the student success allocation. The marginal funding per point for the equity component of the student success allocation revenue shall be as follows:

(I) For the 2018–19 fiscal year, one hundred eleven dollars ($111).

(II) For the 2019–20 fiscal year, one hundred forty-one dollars ($141).

(ii) (I) Commencing with the 2019–20 fiscal year, to calculate the equity component of the student success allocation for each community college district, the chancellor’s office shall calculate a three-year rolling average for each metric described in this paragraph. To compute the three-year average for each metric, the chancellor’s office shall compute the sum of data for that metric from the prior year, the year before the prior year, and the year before the year before the prior year, and divide the sum by three.

(II) For the calculation of the three-year rolling average for the equity component of the student success allocation for the 2020–21 fiscal year, data from the 2018–19 fiscal year, for purposes of subparagraphs (B) and (C), may be used in place of data from the 2019–20 fiscal year.

(B) Each community college district shall receive points for a student who received a fee waiver pursuant to Section 76300 and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A). For each student identified pursuant to this subparagraph, the community college district shall receive the number of points equal to the number of points that the community college was granted for that student for each of the metrics described in paragraph (1).

(C) (i) Each community college district shall receive points for a student who received financial aid under the Federal Pell Grant program (20 U.S.C. Sec. 1070a) and generated points for any of the metrics described in paragraph (1), based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(ii) Each community college district shall receive, for each student identified pursuant to clause (i), points for one of the following, with the community college district receiving points based on the outcome that would generate the highest number of points and with the points counted only if the student was enrolled in the community college district in the academic year in which the award was granted:

(I) Four and one-half points for each chancellor’s office approved associate degree or approved baccalaureate degree granted, excluding an associate degree for transfer granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(II) Six points for each chancellor’s office approved associate for transfer degree granted pursuant to Article 3 (commencing with Section 66745) of Chapter 9.2 of Part 40 of Division 5, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(III) Three points for each chancellor’s office approved credit certificate requiring 16 or more units granted, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(iii) Each community college district shall receive, for each student identified pursuant to clause (i), the number of points equal to the following:

(I) Three points for each student who successfully completes transfer-level mathematics and English courses within the student’s first academic year of enrollment, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(II) Two and one-quarter points for each student who successfully transfers to a four-year university, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(III) One and one-half points for each student who successfully completes nine or more career technical education units, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(IV) One and one-half points for each student who obtains a regional living wage within one year of community college completion, based on the three-year rolling average for this metric calculated pursuant to clause (ii) of subparagraph (A).

(3) It is the intent of the Legislature that the annual Budget Act fully fund increases in the student success allocations computed under this section.

(g) To establish a hold harmless protection for community college districts pursuant to the funding allocation established in this section, a minimum funding level for all community college districts shall be computed as follows:

(1) For the 2018–19 and 2019–20 fiscal years, a level of funding to ensure that all community college districts receive at a minimum the total computational revenue the district received in the 2017–18 fiscal year, defined as a district’s final entitlement for general purpose apportionment based on FTES and the number of colleges and comprehensive centers the district operates.

(2) Commencing with the 2020–21 fiscal year, and each year thereafter, community college districts shall receive the higher of (A) the funding level determined by the formula established in this section, or (B) the level of funding determined by multiplying the community college district’s new FTES by the associated credit, noncredit, and career development and college preparation rate received by the district in the 2017–18 fiscal year. The level of funding shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 2017–18 fiscal year.

(3) (A) From the 2019–20 fiscal year to the 2025–26 fiscal year, inclusive, for the San Francisco Community College District and the Compton Community College District, the rates for computing the hold harmless provisions pursuant to paragraphs (1) and (2) shall be multiplied each year by the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases to FTES. The level of funding for the San Francisco Community College District and the Compton Community College District shall be adjusted to include a basic allocation based on the number of colleges and comprehensive centers in the district consistent with the basic allocation rates used in the 2017–18 fiscal year multiplied by the 2018–19 fiscal year cost-of-living adjustment, and adjusted for changes in the cost-of-living in subsequent annual budget acts. The intent of these adjustments is to provide the San Francisco Community College District and the Compton Community College District with the greater of the amount that would have been calculated pursuant to the requirements of Section 84750.5, as that section read on January 1, 2018, adjusted for annual changes in the cost-of-living adjustment identified in the annual Budget Act and adjusted for increases in FTES, or the amount computed pursuant to the funding formula established in this section.

(B) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the 2017–18 fiscal year, the San Francisco Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 2012–13 fiscal year, if there is a subsequent increase in FTES.

(C) (i) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the board of governors shall provide allocations to the Compton Community College District in an amount not less than the total amount that the district would receive if the level of attendance of FTES was the same level of attendance as in the 2017–18 fiscal year. The amount shall be adjusted to reflect cost-of-living adjustments, deficits in apportionments, or both, as appropriate for the applicable fiscal years.

(ii) For purposes of computing the FTES attributable to this paragraph and subdivision (d), for seven fiscal years beginning in the fiscal year the Compton Community College District is accredited under the governing authority of the Board of Trustees of the Compton Community College District, the Compton Community College District shall be entitled to restoration of any reduction in apportionment revenue due to decreases in FTES, up to the level of attendance of FTES funded in the 2017–18 fiscal year, if there is a subsequent increase in FTES.

(iii) In computing statewide entitlements to funding based upon the attendance of FTES, the Compton Community College District shall not be credited with more FTES than were actually enrolled and in attendance.

(4) (A) Commencing with the 2020–21 fiscal year, decreases in a community college district’s total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall result in the associated reduction beginning in the year following the initial year of decreases, adjusted for changes in the cost-of-living adjustment.

(B) For the 2019–20 fiscal year, a community college district’s total revenue computed pursuant to the sum of subdivisions (d), (e), and (f), or computed pursuant to this subdivision shall be no less than its 2017–18 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for the cost-of-living adjustments for fiscal years 2018–19 and 2019–20.

(h) (1) For the fiscal years 2018–19 to 2024–25, inclusive, each community college district whose increase in 2017–18 general purpose apportionment funding computed pursuant to Section 84750.5, compared to apportionment funding computed pursuant to this section, is less than the year-over-year cost-of-living adjustments applicable to those fiscal years, shall receive discretionary resources in an amount needed to ensure that the community college district receives no less than its 2017–18 general purpose apportionment funding computed pursuant to Section 84750.5 adjusted for annual year-over-year cost-of-living adjustments.

(2) For the 2025–26 fiscal year, each community college district shall receive the greater of either of the following:

(A) A community college district’s total revenue computed pursuant to the sum of subdivisions (d), (e), and (f) for that fiscal year.

(B) A community college district’s general purpose apportionment funding computed for the 2024–25 fiscal year, including the greater of discretionary resources received by the district pursuant to paragraph (1) for the 2024–25 fiscal year or revenue received by the district pursuant to paragraph (4) of subdivision (g) for the 2024–25 fiscal year.

(3) Commencing with the 2026–27 fiscal year, each community college district shall receive the greater of either of the following:

(A) A community college district’s total revenue computed pursuant to the sum of subdivisions (d), (e), and (f) for that fiscal year.

(B) A community college district’s general purpose apportionment funding computed for the 2024–25 fiscal year, including the greater of discretionary resources received by the district pursuant to paragraph (1) for the 2024–25 fiscal year adjusted to reflect the application of a 1.44 percent discretionary cost-of-living adjustment or revenue received by the district pursuant to paragraph (4) of subdivision (g) for the 2024–25 fiscal year adjusted to reflect the application of a 1.44 percent discretionary cost-of-living adjustment. The total amount associated with providing the 1.44 percent discretionary cost-of-living adjustment shall not exceed the amount identified in Section 84750.8 specifically for hold harmless funding levels.

(i) The board of governors shall develop the criteria and standards within the statewide minimum requirements established pursuant to this section.

(j) (1) 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 community college district governing boards to expend the allocated revenues in specified categories of operation.

(2) Except as otherwise provided by statute, current categorical programs providing direct services to students, including extended opportunity programs and services, and disabled student 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.

(k) It is the intent of the Legislature to allow for changes to the criteria and standards developed pursuant to subdivisions (a) and (i) in order to recognize increased operating costs and to improve instruction.

(l) Notwithstanding Subchapter 1 (commencing with Section 51000) of Chapter 2 of Division 6 of Title 5 of the California Code of Regulations and Section 84751, the chancellor shall allocate the ongoing funds first appropriated to paragraph (1) of subdivision (e) of provision (2) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2015 (Chapters 10 and 11 of the Statutes of 2015) to all community college districts, including districts that have offsetting local revenues that exceed the funding calculated pursuant to the district’s budget formula, on a per FTES basis by modifying each district’s budget formula pursuant to this section. Any revisions to the budget formula made for the purposes of this subdivision shall be made and reported consistent with the requirements of subdivision (i).

(m) (1) (A) The governing board of each community college district shall certify it will do all the following, no later than January 1, 2019:

(i) Adopt goals for the community college district that meet the following requirements:

(I) Are aligned with the systemwide goals identified in the Vision for Success, which were adopted by the Board of Governors of the California Community Colleges in 2017.

(II) Are measurable numerically.

(III) Specify the specific timeline for achievement.

(ii) For the meeting when the goals are considered for adoption, include in the written agenda an explanation of how the goals are consistent and aligned with the systemwide goals.

(iii) Submit the written item and summary of action to the chancellor’s office.

(B) The chancellor’s office shall make available guidance to assist governing boards of community college districts in meeting the requirements of this section. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.

(2) Each community college district shall align its comprehensive plan pursuant to paragraph (9) of subdivision (b) of Section 70901 with the adopted local plan goals and align its budget with the comprehensive plan. The funds apportioned to a community college district pursuant to this section, and for excess tax districts, the Student Equity and Achievement Program, shall be available to implement the activities required pursuant to this paragraph.

(3) If a community college district is identified as needing further assistance to make progress towards achieving specified goals, the chancellor’s office, with the approval from the board of governors, may direct the community college district to use up to 1 percent of the district’s apportionments allocation on technical assistance and professional development to support efforts to meet the district’s efforts towards their goals.

(4) (A) The chancellor’s office shall develop processes to monitor the approval of new awards, certificates, and degree programs. The chancellor’s office shall also develop a process to monitor the number of students who transfer to for-profit postsecondary educational institutions and report on the growth of transfer to these institutions compared to four-year public postsecondary educational institutions.

(B) The chancellor’s office shall also develop minimum standards, in consultation with the oversight committee established pursuant to Section 84750.41, for the approval of certificates and awards that would count towards the funding formula pursuant to this section.

(C) The board of governors shall include instructions in the audit report required by Section 84040 related to the implementation of the funding formula pursuant to this section. The chancellor may require a community college district to repay any funding associated with an audit exception identified in a community college district’s audit report pursuant to this subparagraph.

(5) Notwithstanding Section 10231.5 of the Government Code, on or before October 15, 2019, and each year thereafter, the chancellor’s office shall report to the Legislature, consistent with Section 9795 of the Government Code, 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.

(6) (A) On or before July 1, 2022, the chancellor’s office shall report to the Legislature and the Department of Finance, consistent with Section 9795 of the Government Code, a description on how community college districts are making progress on advancing the goals outlined in the system’s strategic vision plan.

(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on July 1, 2026, pursuant to Section 10231.5 of the Government Code.

(7) Commencing with the 2019–20 fiscal year, the chancellor’s office shall publicly post the data, by community college district, used to calculate the supplemental and student success allocations pursuant to subdivisions (e) and (f) on the internet website of the chancellor’s office. The chancellor’s office shall publicly post a preliminary version of the data for the most recently completed fiscal years by November 15 of each year, and a final version of that data by March 15 of each year.

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

(1) “Career development and college preparation” means courses in programs that conform to the requirements of Section 84760.5.

(2) “Chancellor’s office” means the office of the Chancellor of the California Community Colleges.

(3) “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.

SEC. 6.

Section 84750.7 of the Education Code is repealed.

SEC. 7.

Section 89526 of the Education Code is amended to read:

89526.

(a) For purposes of this section, the following definitions apply:

(1) “Campus” means a campus of the California State University.

(2) “Chancellor’s office” means the office of the Chancellor of the California State University.

(b) The chancellor’s office shall annually develop enrollment targets for each campus. These enrollment targets shall be informed by the campus’s actual enrollment history, demographics, funding, and other factors determined by the chancellor’s office.

(c) On or before March 15 of each year, the chancellor’s office shall report the enrollment targets developed under subdivision (b) for the following fiscal year to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Department of Finance.

(d) The chancellor’s office shall include, in the report described in subdivision (c), enrollment data trends that provide a comparison of actual enrollment and the enrollment targets under subdivision (b), disaggregated by campus.

(e) If the chancellor’s office determines that a campus has experienced an unusual decline in enrollment, cannot meet enrollment the targets under subdivision (b), or has failed to meet past enrollment targets under subdivision (b), the chancellor’s office may require a campus to complete a turnaround plan that details how the campus’s budget may be adjusted to reflect the campus’s actual enrollment. The chancellor’s office shall provide a copy of all data collected and reported under this section to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Department of Finance.

(f) A report submitted under this section shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 8.

Section 15820.200 of the Government Code is amended to read:

15820.200.

For purposes of this chapter, the following definitions apply:

(a) “Board” means the State Public Works Board.

(b) “Board of governors” means the Board of Governors of the California Community Colleges.

(d) “Disposition” means entering into leases, subleases, or agreements for any property or approved student housing project pursuant to Section 15820.203.

(e) “Participating college” means any college with a student housing project financed under this chapter, including, but not limited to, all of the following community colleges, including their governing districts, or community college district:

(1) Bakersfield College.

(2) Cerritos College.

(3) College of San Mateo.

(4) College of the Redwoods.

(5) College of the Siskiyous.

(6) Compton College.

(7) Cosumnes River College.

(8) Fresno City College.

(9) Lake Tahoe Community College District.

(10) Sierra College.

(11) Ventura College.

SEC. 9.

Section 15820.201 of the Government Code is amended to read:

15820.201.

(a) For purposes of this chapter, a student housing project may include construction of student housing or the renovation of former commercial properties into student housing. These student housing facilities may include, but are not limited to, dining, laundry, parking, academic and student support service spaces, basic needs centers, student health care services, student family housing, childcare spaces, and other necessary and usual attendant and related facilities and equipment.

(b) (1) For student housing projects selected for financing under this chapter before June 30, 2026, to be eligible for financing under this chapter, the participating college shall certify to the board both of the following:

(A) The student housing project is designed or will be designed to include, at a minimum, the number of beds for low-income students specified in a participating college’s application submitted pursuant to Section 17201 of the Education Code, as may be adjusted pursuant to subdivision (g) of Section 15820.202.

(B) The rent for the beds for low-income students as described in paragraph (1) shall not exceed 30 percent of 50 percent of the area median income for a single-room occupancy unit type, as may be adjusted pursuant to paragraph (3) of subdivision (b) of Section 15820.203.

(c) (1) Before any disposition of a site for purposes of financing under this chapter, the participating college shall record a covenant or restriction against the student housing project, in a form acceptable to the board, stating, in substance, that the affordability restrictions in subdivision (b) shall run with the land and be enforceable against the participating college that violates the affordability restriction and each successor in interest who continues the violation.

(2) The covenant or restriction shall expressly provide that the affordability restrictions shall be enforceable for the life of the student housing project and shall survive the termination of the leases, subleases, or other agreements entered into by the participating college pursuant to Section 15820.203.

(d) (1) (A) A participating college that received funding pursuant to Section 17201 of the Education Code shall remain subject to the permanent affordability requirements specified in paragraph (2) of subdivision (f) of Section 17201 of the Education Code until the participating college records the covenant or restriction described in subdivision (c).

(B) A participating college may elect to relinquish the authority provided under this chapter and return the funds awarded pursuant to Section 17201 of the Education Code to the state before establishing occupancy for the student housing project.

(C) Upon a participating college providing a written notice to the Department of Finance and the Joint Legislative Budget Committee, the participating college shall be considered withdrawn from eligibility for financing under this chapter.

(D) A participating college shall be released from the requirements and obligations of this chapter upon the return of the funds awarded pursuant to Section 17201 of the Education Code to the state.

(e) (1) For student housing projects selected for financing under this chapter after June 30, 2026, to be eligible for financing under this chapter, the board of governors shall provide, on behalf of the participating college, the board with all of the following:

(A) Certification that the chancellor’s office has approved an application that includes all of the following:

(i) A detailed project cost estimate.

(ii) The proposed scope of the project that details what will be constructed. The scope shall include the number of beds for low-income students, as defined in Section 17200 of the Education Code, as may be adjusted pursuant to subdivision (g) of Section 15820.202. The rent for the beds for low-income students shall not exceed 30 percent of 50 percent of the area median income for a single-room occupancy unit type, as may be adjusted pursuant to paragraph (3) of subdivision (b) of Section 15820.203.

(iii) An estimated project schedule.

(iv) Documentation of the participating college’s unmet demand for student housing as measured by the proportion of students waitlisted for on-campus housing compared to total enrollment and rental vacancy rates for housing in the county that the student housing project would be located.

(v) An estimate of the anticipated impact on the campus’ ability to accommodate California resident enrollment growth.

(vi) Information establishing the participating college’s ability to absorb costs above those identified in the project estimate described in clause (i), as substantiated by all of the following:

(I) A budget that indicates a contingency of not less than 10 percent of construction costs.

(II) A detailed description of the source or sources of the funds to be used for the project, other than financing requested under this chapter, the respective balances, and a certification by the participating college that the funds are lawfully available for use to pay costs related to, or necessary for, the student housing project.

(III) In addition to the main fund source or sources identified in subclause (II), identification of a reserve fund source, other than the financing requested under this chapter, and the respective balances that would be available to cover cost increases that are not absorbable within the 10 percent contingency reserve described in subclause (I).

(IV) Certification of the participating college’s commitment to absorb costs above those projected in the application.

(B) Documentation of approval of the board’s required financing documents by the participating college.

(C) Documentation establishing that the participating college has fee title ownership of the property on which the project will be constructed free from liens and encumbrances other than necessary utilities for the project.

(2) (A) Before any disposition of a site for financing under this chapter, the participating college shall record a covenant or restriction against the student housing project, in a form acceptable to the board, stating, in substance, that the affordability restrictions in subdivision (b) shall run with the land and be enforceable against the participating college that violates the affordability restrictions and each successor in interest who continues the violation.

(B) The covenant or restriction shall expressly provide that the affordability restrictions shall be enforceable for the life of the student housing project, and shall survive the termination of the leases, subleases, or other agreements entered into by the participating college pursuant to Section 15820.203.

(3) For student housing projects described in this subdivision, to be eligible for financing under this chapter, the board of governors shall provide a written notice certifying the accuracy of all information contained in the documentation provided pursuant to this subdivision.

SEC. 10.

Section 15820.202 of the Government Code is amended to read:

15820.202.

(a) (1) The board of governors, a participating college, and the board may design, construct, and equip a student housing project.

(2) In order for a student housing project to be eligible for financing under this chapter, the ownership interest of a participating college in the site or sites leased with respect to the financing shall be determined by the board to be adequate for purposes of its financing.

(3) The board may either approve the student housing project as the property to be leased with respect to the financing or may require a participating college to lease other property of the participating college pursuant to Section 15820.203 for purposes of financing the student housing project.

(b) (1) The Department of General Services shall approve plans and specifications for student housing projects constructed pursuant to this chapter upon the request by a participating college.

(2) A participating college may assign an inspector during the construction of the student housing project.

(c) For purposes of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), none of the board, the board of governors, or the Department of Finance shall be a lead or responsible agency, and the participating college shall be the lead agency.

(d) (1) The State Fire Marshal shall enforce the building standards and other regulations of the State Fire Marshal on student housing projects constructed pursuant to this chapter.

(2) For each student housing project constructed by a participating college pursuant to this chapter, the State Fire Marshal may delegate that responsibility to a person identified by the participating college who shall be known as the Designated Participating College Fire Marshal.

(e) The board of governors, a participating college, and the board shall enter into an agreement for each student housing project that includes, at a minimum, all of the following:

(1) Performance expectations of the parties related to the design and construction or renovation of the student housing project.

(2) The student housing project’s scope, schedule, and budget that indicates a project contingency of not less than 10 percent of construction costs.

(3) The participating college’s agreement that it will pay for any costs of a student housing project financed pursuant to this chapter in excess of the amount awarded by the state.

(4) A detailed description of the source or sources of the funds to be used for the student housing project, other than funds received pursuant to this chapter, and a certification by the participating college that such funds are lawfully available for use to pay costs related to, or necessary for, the student housing project.

(5) Guidelines and criteria for use and application of the proceeds of any interim loan and any revenue bonds, notes, or bond anticipation notes issued by the board to pay for the cost of a student housing project.

(6) Ongoing maintenance and staffing responsibilities of the participating college for the student housing project and, if applicable, the other property leased pursuant to Section 15820.203, for the term of the financing.

(f) The agreement entered into pursuant to subdivision (e) shall include a provision that the participating college agrees to indemnify, defend, and hold harmless the State of California for any and all claims and losses arising out of the acquisition, design, construction, equipping, and financing of the student housing project. The agreement may also contain additional terms and conditions that facilitate the financing by the board.

(g) (1) (A) The scope, cost, and any change thereafter to the scope and cost of a student housing project shall be subject to approval and administrative oversight by the Department of Finance and the board.

(B) A request submitted by a participating college pursuant to subparagraph (A) shall first be approved for submission to the Department of Finance and the board by the board of governors.

(C) A request submitted by a participating college pursuant to subparagraph (A) to reduce the approved bed count shall be eligible for the consideration as a scope change if the chancellor’s office certifies both of the following:

(i) The participating college has first pursued and exhausted other cost containment measures, including, but not limited to, value engineering and scope reduction other than bed count reduction.

(ii) The student housing project cannot otherwise be completed without a reduction in bed count as evidenced by the participating college having exhausted all cost reduction options described in clause (i), and having fully exhausted all funding sources available to the participating college that can lawfully be expended for the project.

(D) The chancellor’s office shall provide a written notice to the Department of Finance and the board certifying the accuracy of all information contained in the documentation provided pursuant to subparagraphs (B) and (C).

(2) The Department of Finance shall report changes to scope and cost consistent with Sections 13332.11 and 13332.19.

(3) A participating college that conducts work outside of the approved project scope without prior approval from the board and the chancellor’s office shall fund the cost of any design and construction work conducted outside of the approved project scope.

(4) If the work conducted outside of the approved project scope was duplicative of the approved project scope, or renders any elements of the approved project scope unnecessary, the state’s share of project costs shall be reduced by the budgeted cost of the impacted elements of the approved project scope.

(h) (1) For student housing projects selected for financing under this chapter after June 30, 2026, the participating college shall do both of the following:

(A) Request approval to proceed from the board at the completion of the preliminary plans or performance criteria phases.

(B) Request approval to proceed from the Department of Finance at the completion of the working drawings and for the award of a contract to a bidder on design-bid-build or design-build projects.

(2) The participating college shall include, at a minimum, all of the following in each phase approval submission package:

(A) Certification that the project is within cost, scope, and schedule.

(B) Certification that the project complies with the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(3) Student housing projects described in this subdivision shall not be eligible for any augmentation, including, but not limited to, augmentation provided in subdivision (e) of Section 13332.11 and subdivisions (d) and (e) of Section 13332.19.

SEC. 11.

Section 15820.203 of the Government Code is amended to read:

15820.203.

(a) The board, board of governors, and participating college, with the consent of the board, may enter into leases or subleases, as lessor or lessee, for any property or approved student housing project in connection with the financing authorized by this chapter and may enter into contracts or other agreements for the use, maintenance, and operation of the student housing project in order to facilitate the financing authorized by this chapter.

(b) In the leases, subleases, or other agreements described in subdivision (a), the participating college shall agree to all of the following:

(1) To indemnify, defend, and hold harmless the State of California, the board, and the board of governors for any and all claims and losses accruing and resulting from or arising out of the participating college’s use and occupancy of the student housing project and any other property leased or subleased pursuant to this section.

(2) To provide all insurance coverage determined necessary by the board during construction of the student housing project and after completion of the student housing project and for any other property leased or subleased pursuant to this subdivision.

(3) That it will not charge rental rates for beds identified for low-income students in excess of 30 percent of 50 percent of the area median income for a single-room occupancy unit type, except such rental rates may be adjusted each year based on the lesser of 30 percent of 50 percent of the area median income for a single-room occupancy unit type for a given year or the percentage change in the annual average value of the California Consumer Price Index for all urban consumers for the most recent calendar year of actual data.

(4) That the student housing project will include, at a minimum, the number of beds for low-income students specified in a participating college’s application submitted pursuant to Section 17201 of the Education Code as may be adjusted pursuant to subdivision (g) of Section 15820.202.

(5) To first offer the housing available from the student housing project to low-income students.

(6) To require any students renting housing in a student housing project to take a minimum of 12 degree-applicable units per semester per term, or the quarterly equivalent, to facilitate timely degree completion. However, students renting housing in the student housing project shall be permitted to live in the student housing project for the full academic or calendar year so long as the student remains enrolled in the applicable campus.

(c) This chapter provides a complete, additional, and alternative method for performing the acts authorized by this chapter, and any sale or lease of any property or approved student housing project to or by the board of governors or any participating college for purposes of this chapter need not comply with the requirements of any other law applicable to a sale, purchase, or lease, as the case may be, by the board of governors, a community college or community college district.

SEC. 12.

Section 15820.205 of the Government Code is amended to read:

15820.205.

(a) The board may issue up to eight hundred four million seven hundred twenty-five thousand dollars ($804,725,000) in revenue bonds, notes, or bond anticipation notes, pursuant to Chapter 5 (commencing with Section 15830), to finance the design and construction, including, without limitation, renovation and equipping, of the approved student housing projects described in Section 15820.201, a reasonable construction reserve, and any additional amount authorized under Section 15849.6 to pay for the cost of financing.

(b) Proceeds from the revenue bonds, notes, or bond anticipation notes may be used to reimburse a participating college for costs incurred before the enactment of this chapter including the costs of design and construction, including, without limitation, renovation and equipping, of the approved student housing projects. Those costs may include the repayment of loans obtained pursuant to Section 15820.203 that have been applied to repay allocations to the General Fund pursuant to subparagraph (A) of paragraph (2) of subdivision (n) of Section 17201 of the Education Code, as amended by Chapter 195 of the Statutes of 2023.

(c) Notwithstanding Section 13340, funds derived pursuant to this section and Section 15820.204 are continuously appropriated for purposes of this chapter.

(d) (1) The board may augment the amount identified in subdivision (a) pursuant to Sections 13332.11 and 13332.19. Augmentations shall only be considered if the chancellor’s office has certified to the board both of the following:

(A) That the participating college has pursued and exhausted all funding sources available to the participating college that can lawfully be expended for the student housing project.

(B) That all cost containment measures, including, but not limited to, value engineering and scope reduction, not including bed count reduction, have been exhausted.

(2) Notwithstanding paragraph (3) of subdivision (e) of Section 15820.202, the board may issue bonds to pay for costs of a student housing project in excess of the dollar amount identified in paragraphs (3) and (4) of subdivision (m) of Section 17201 of the Education Code, as amended by Chapters 54 and 572 of the Statutes of 2022, and subparagraph (B) of paragraph (2) of subdivision (n) of Section 17201 of the Education Code, as amended by Chapter 195 of the Statutes of 2023, for each respective participating college if both of the following occurs:

(A) The board determines that financing of those excess costs is necessary.

(B) The financing of those costs does not cause the total amount financed under this subdivision to exceed the amount identified in subdivision (a) as that amount may be augmented pursuant to this subdivision.

SEC. 13.

Section 15820.208 is added to the Government Code, immediately following Section 15820.207, to read:

15820.208.

(a) Notwithstanding any other law, the authority allocated pursuant to subdivision (a) of Section 15820.205 to support student housing projects pursuant to this chapter that is withdrawn, relinquished, deobligated, or otherwise remains unexpended by a recipient participating college that has completed a previously authorized student housing project shall be available for reallocation by the chancellor’s office to eligible student housing project applications submitted by participating colleges to the chancellor’s office on or before July 1, 2026.

(b) The chancellor’s office shall review, score, and rank previously submitted project applications and any new student housing project applications received on or before July 1, 2026, using the same review and scoring criteria applied to student housing project applications used by the chancellor’s office in prior application cycles, and shall allocate available funds to the highest scoring eligible projects consistent with the goals of this chapter.

(c) Funding allocated pursuant to this section shall remain subject to the requirements of this chapter and any applicable provisions governing the use of funds under the Higher Education Student Housing Grant Program (Chapter 18.5 (commencing with Section 17200) of Part 10 of Division 1 of Title 1 of the Education Code).

(d) (1) The authority provided pursuant to this section shall remain in effect until all available funds identified in subdivision (a) have been awarded or reallocated, or the remaining balance is too small to reasonably be financed.

(2) The office of the Treasurer may sweep the remaining authority described in paragraph (1) upon the determination by the Department of Finance and the chancellor’s office that the remaining balance is too small to reasonably provide financing for any authorized purpose under this chapter.

SEC. 14.

Section 1627 of the Health and Safety Code is amended to read:

1627.

(a) (1) The University of California is requested to develop a plan to establish and administer the Umbilical Cord Blood Collection Program for the purpose of collecting units of umbilical cord blood for public use in transplantation and providing nonclinical units for research pertaining to biology and new clinical utilization of stem cells derived from the blood and tissue of the placenta and umbilical cord. The program shall conclude no later than January 1, 2032.

(2) For purposes of this article, “public use” means both of the following:

(A) The collection of umbilical cord blood units from genetically diverse donors that will be owned by the University of California. This inventory shall be accessible by the National Registry and by qualified California-based and other United States and international registries and transplant centers to increase the likelihood of providing suitably matched donor cord blood units to patients or research participants who are in need of a transplant.

(B) Cord blood units with a lower number of cells than deemed necessary for clinical transplantation and units that meet clinical requirements, but for other reasons are unsuitable, unlikely to be transplanted, or otherwise unnecessary for clinical use, may be made available for research.

(b) (1) In order to implement the collection goals of this program, the University of California may, commensurate with available funds appropriated to the University of California for this program, contract with one or more selected applicant entities that have demonstrated the competence to collect and ship cord blood units in compliance with federal guidelines and regulations.

(2) It is the intent of the Legislature that, if the University of California contracts with another entity pursuant to this subdivision, the following shall apply:

(A) The University of California may use a competitive process to identify the best proposals submitted by applicant entities to administer the collection and research objectives of the program, to the extent that the University of California chooses not to undertake these activities itself.

(B) In order to qualify for selection under this section to receive, process, cryopreserve, or bank cord blood units, the entity shall, at a minimum, have obtained an investigational new drug (IND) exemption from the FDA or a biologic license from the FDA, as appropriate, to manufacture clinical grade cord blood stem cell units for clinical indications.

(C) In order to qualify to receive appropriate cord blood units and placental tissue to advance the research goals of this program, an entity shall, at a minimum, be a laboratory recognized as having performed peer-reviewed research on stem and progenitor cells, including those derived from placental or umbilical cord blood and postnatal tissue.

(3) A medical provider or research facility shall comply with, and shall be subject to, existing penalties for violations of all applicable state and federal laws with respect to the protection of any medical information, as defined in Section 56.05 of the Civil Code, and any personally identifiable information contained in the umbilical cord blood inventory.

(c) The University of California is encouraged to make every effort to avoid duplication or conflicts with existing and ongoing programs and to leverage existing resources.

(d) (1) All information collected pursuant to the program shall be confidential, and shall be used solely for the purposes of the program, including research. Access to confidential information shall be limited to authorized persons who are bound by appropriate institutional policies or who otherwise agree, in writing, to maintain the confidentiality of that information.

(2) Any person who, in violation of applicable institutional policies or a written agreement to maintain confidentiality, discloses any information provided pursuant to this section, or who uses information provided pursuant to this section in a manner other than as approved pursuant to this section, may be denied further access to any confidential information maintained by the University of California, and shall be subject to a civil penalty not exceeding one thousand dollars ($1,000). The penalty provided for in this section shall not be construed to limit or otherwise restrict any remedy, provisional or otherwise, provided by law for the benefit of the University of California or any other person covered by this section.

(3) Notwithstanding the restrictions of this section, an individual to whom the confidential information pertains shall have access to their own personal information.

(e) It is the intent of the Legislature that the plan and implementation of the program provide for both of the following:

(1) Limit fees for access to cord blood units to the reasonable and actual costs of storage, handling, and providing units, as well as for related services such as donor matching and testing of cord blood and other programs and services typically provided by cord blood banks and public use programs.

(2) The submittal of the plan developed pursuant to subdivision (a) to the health and fiscal committees of the Legislature.

(f) It is additionally the intent of the Legislature that the plan and implementation of the program attempt to provide for all of the following:

(1) Development of a strategy to increase voluntary participation by hospitals in the collection and storage of umbilical cord blood and identify funding sources to offset the financial impact on hospitals.

(2) Consideration of a medical contingency response program to prepare for and respond effectively to biological, chemical, or radiological attacks, accidents, and other public health emergencies where victims potentially benefit from treatment.

(3) Exploration of the feasibility of operating the program as a self-funding program, including the potential for charging users a reimbursement fee.

SEC. 15.

Section 1629.5 of the Health and Safety Code is amended to read:

1629.5.

(a) On or before January 1, 2031, if it elects to administer the Umbilical Cord Blood Collection Program, the University of California shall provide a report to the Assembly and Senate Committees on Health that addresses, at a minimum, all of the following:

(1) The number of cord blood units collected and registered under the program, disaggregated by race and ethnicity.

(2) The number of registered units transplanted as a result of the program, disaggregated by race and ethnicity.

(3) The number of California residents receiving a transplant as a result of the program.

(4) The number of units made available for research and a summary of key research findings as a result of the program.

(5) Annual budget information on the program, including revenues, spending, and beginning- and end-of-year balances.

(6) Budget information for each participating cord blood bank, including collection and storage costs and available revenues to cover those costs.

(7) Fees charged by participating cord blood banks for collecting, storing, handling, and providing units, and a summary of how these fees were determined.

(8) Nationwide data on cord blood units collected, registered, and transplanted, disaggregated by race and ethnicity.

(9) A summary of available cell sources for a hematopoietic stem cell transplant and research on the ability of underrepresented groups to find a suitable match for a transplant.

(10) Any other outcomes or data regarding the impact of the program.

(b) The requirement for submitting a report imposed under subdivision (a) is inoperative on December 31, 2031, pursuant to Section 10231.5 of the Government Code.

SEC. 16.

Section 1630 of the Health and Safety Code is amended to read:

1630.

This article shall remain in effect only until January 1, 2032, and as of that date is repealed.

SEC. 17.

Section 27 of Chapter 9 of the Statutes of 2025, as amended by Section 35 of Chapter 79 of the Statutes of 2026, is amended to read:

Sec. 27.

(a) (1) For the 2025–26 fiscal year, the sum of sixty million dollars ($60,000,000) is hereby appropriated from the General Fund to the Board of Governors of the California Community Colleges for transfer to Section B of the State School Fund for the Student Support Block Grant.

(2) For the 2026–27 fiscal year, the sum of one hundred forty-seven million five hundred thirty-three thousand dollars ($147,533,000) is hereby appropriated from the General Fund to the Board of Governors of the California Community Colleges for transfer to Section B of the State School Fund for the Student Support Block Grant.

(b) The office of the Chancellor of the California Community Colleges shall allocate the funds appropriated in this section to community college districts. In determining each district’s allocation for the applicable fiscal year, the chancellor’s office shall first provide a base amount of one hundred fifty thousand dollars ($150,000) for each college in the district. The chancellor’s office shall then allocate any remaining funds based on a formula that places equal weight on the following two measures:

(1) Student headcount for the most recent fiscal year in which the data is considered final.

(2) The sum of the following counts:

(A) The number of students receiving fee waivers pursuant to Section 76300 of the Education Code for the most recent fiscal year in which the data is considered final.

(B) The number of students receiving exemptions from nonresident tuition pursuant to Section 68130.5 of the Education Code for the most recent fiscal year in which the data is considered final.

(c) The funds appropriated pursuant to this section may be expended for any student support program purpose, including, but not limited to, all of the following:

(1) Assistance to students with food, housing, transportation, and other basic needs.

(2) Childcare subsidies or other assistance for student parents.

(3) Financial aid advising or academic counseling.

(4) Legal and other support services.

(5) Mental health services.

(6) Job placement, work-based learning, or reemployment support.

(d) It is the intent of the Legislature that community college districts align the uses of the funds appropriated in this section with existing student support programs.

(e) Community college districts shall have until June 30, 2030, to expend the funds appropriated pursuant to this section.

(f) (1) As a condition of receiving funds appropriated pursuant to this section, community college districts shall submit a report to the chancellor’s office on or before December 31, 2027, and on or before December 31 of each year thereafter until December 31, 2030. Each report shall include both of the following for the previous fiscal year:

(A) A summary of how the funds were used, including the types of services provided.

(B) The outcomes of the funds, including the number of students receiving each type of service and any available data on their academic outcomes.

(2) The chancellor’s office shall make the reports submitted by districts pursuant to paragraph (1) available to the Legislature upon request.

(3) The chancellor’s office shall submit an interim report on or before December 31, 2028, and a final report on or before December 31, 2031, to the Department of Finance and the relevant policy and fiscal committees of the Legislature, in compliance with Section 9795 of the Government Code. Each report shall include the amount of funds provided to each community college district and a summary of the key information submitted by districts pursuant to paragraph (1) for the previous two fiscal years.

(g) (1) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made pursuant to paragraph (1) of 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 2024–25 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 2024–25 fiscal year.

(2) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, one hundred million dollars ($100,000,000) of the appropriation made pursuant to paragraph (2) 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 2025–26 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 2025–26 fiscal year.

(3) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, forty-seven million five hundred thirty-three thousand dollars ($47,533,000) of the appropriation made pursuant to paragraph (2) 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 2026–27 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 2026–27 fiscal year.

SEC. 18.

Section 41 of Chapter 79 of the Statutes of 2026 is amended to read:

Sec. 41.

(a) For the 2026–27 fiscal year, the sum of fifteen million dollars ($15,000,000) is hereby appropriated from the General Fund to the Board of Governors of the California Community Colleges for transfer to Section B of the State School Fund to support Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ+) students.

(b) For the purposes of allocating and expending this funding, the office of the Chancellor of the California Community Colleges and participating community college districts shall follow the requirements set forth in Section 89 of Chapter 144 of Statutes of 2021.

(c) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made pursuant to 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 2025–26 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 2025–26 fiscal year.

SEC. 19.

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.

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