Amended  IN  Assembly  March 08, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2479

Introduced by Assembly Member Voepel

February 14, 2018

An act to add Section 66027.9 to the Education Code, relating to public postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 2479, as amended, Voepel. Public postsecondary education: income share agreement: pilot program.
The Donahoe Higher Education Act provides for a public postsecondary education system in this state. This system consists of the University of California, the California State University, and the California Community Colleges. The act applies to the University of California only to the extent that the Regents of the University of California act by resolution to make it applicable.
This bill would require the University of California, Los Angeles, and the California State University, Sacramento, request the University of California and the California State University to each select a university of their respective system to establish, commencing with the 2020–21 academic year, a pilot program to waive the tuition for participating students who enter into an income share agreement with the university. The bill would require the income share agreement to be subject to specified requirements, including, among others, that the agreement provide for monthly payments to be based on a specified percentage of the student’s annual income for ten 10 years after graduation. The bill would require the pilot program to be open to students in their sophomore, junior, or senior year, and would authorize the university to impose other eligibility requirements and cap the number of participants based on the amount of moneys appropriated for the pilot program. The bill would require that implementation of the pilot program be contingent upon the appropriation of funds for purposes of the pilot program in the annual Budget Act or other statute.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 66027.9 is added to the Education Code, to read:

66027.9.
 (a) Commencing with the 2020–21 academic year, the University of California, Los Angeles, and the California State University, Sacramento, shall The University of California and the California State University are requested to each select a university of their respective system to establish a pilot program program, commencing with the 2020–21 academic year, to waive the tuition for participating students who enter into an income share agreement with the university.
(b) (1) The income share agreement under this section shall be subject to all both of the following requirements:
(A) Provide for monthly payments to be based on a specified percentage of the student’s annual income for ten 10 years after graduation.
(B) Provide that no monthly payment is owed by the student for the period of time the student’s annual income is below twenty thousand dollars ($20,000).

(C)Provide that a student shall not pay more within the ten year repayment period than the amount of tuition waived.

(D)Provide that any balance remaining after ten years of payments based on the specified percentage of the student’s annual income is waived.

(2) The university may impose additional terms or requirements in the income share agreement that are not inconsistent with this section.
(c) (1) The pilot program established under this section shall be open to students in their sophomore, junior, or senior year.
(2) The university may impose other eligibility requirements and cap the number of participants based on the amount of moneys appropriated for the pilot program.
(d) Implementation of the pilot program required requested by this section shall be contingent upon the appropriation of funds for purposes of the pilot program in the annual Budget Act or other statute.