Bill Text: CA SB765 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Teachers: retired teachers: compensation limitation.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-10-13 - Chaptered by Secretary of State. Chapter 885, Statutes of 2023. [SB765 Detail]

Download: California-2023-SB765-Amended.html

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Amended  IN  Senate  April 11, 2023

Amended  IN  Senate  March 20, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 765

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Introduced by Senator Portantino

February 17, 2023

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An act to amend Sections 44415.5 and 69432.9 24214.5, 44415.5, and 69432.9 of, and to add and repeal Section 24214.1 of, the Education Code, relating to teachers, and making an appropriation therefor. teachers.

LEGISLATIVE COUNSEL'S DIGEST

SB 765, as amended, Portantino. Teachers: retired teachers: teacher preparation: student financial aid.

(1) Existing law, the Teachers’ Retirement Law, establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Under existing law, STRS is governed by the Teachers’ Retirement Board.

Existing law, the California Public Employees’ Pension Reform Act of 2013, restricts a retired person who is receiving a pension benefit from a public retirement system from being eligible to be employed for a period of 180 days following their retirement date, subject to certain exceptions, including to fill a critically needed position, as prescribed.

Existing law permits members retired for service from STRS to perform retired member activities without reinstatement into the system if certain conditions are met. Existing law, however, requires payment for the performance of retired member activities to be $0 during the first 180 calendar days after the most recent retirement of a retired member, unless certain conditions are met.

This bill would authorize a member retired from service to perform retired member activities, notwithstanding the above-mentioned 180 calendar days compensation limitation, if a request for exemption containing specified information is submitted to the system, as prescribed. This bill’s authorization to perform retirement member activities does not apply if a member has not attained a normal retirement age, if the member’s termination of employment is the basis for the need to acquire the services of the member, or if a member received additional service credit or any financial inducement to retire.

Existing law limits the postretirement compensation of a member of the Defined Benefit Program of the Teachers’ Retirement Plan to an amount calculated by STRS, as specified. If the member’s postretirement compensation exceeds this amount, the law requires the member’s retirement allowance to be reduced by the amount of excess compensation. Existing law, however, permits members retired for service from STRS to perform retired member activities activities, as defined, without being subject to the compensation limit under certain limited conditions and circumstances.

This bill would, until December 31, 2026, June 30, 2026, exempt a classroom teacher or administrator, retired member, who has returned to work after retirement to fulfill a critical need in a classroom teaching position due to the teacher shortage, from the 180-day break in service requirement and teaching position, as defined, from the postretirement compensation limitation, as specified. The bill would require a local school district, county office of education, or other local educational agency an employer to submit specified documentation, certified under penalty of perjury, to substantiate a retired member’s eligibility. By expanding the crime of perjury, the bill would impose a state-mandated local program.

This bill would prohibit a retired member from performing retired member activities until after the employer has submitted the specified documentation to the system. The bill’s exemption to existing law’s postretirement compensation limitation would commence on the date the retired member is appointed or assigned to the teaching position and end on June 30 of that fiscal year.

This bill would make these provisions inoperative on December 31, 2026, June 30, 2026, and would repeal them as of January 1, 2027. 2027.

(2) Existing law establishes the Teacher Residency Grant Program and appropriates $350,000,000 from the General Fund to the Commission on Teacher Credentialing for the 2021–22 fiscal year to award grants to certain applicant local educational agencies to support teacher residency programs that recruit and support the preparation of teachers, as provided. Under the program, a grant award can be no greater than $25,000 per teacher candidate, as provided.

This bill would, for the 2023–24 fiscal year, appropriate an unspecified amount from the General Fund to the Commission on Teacher Credentialing for the above-described purpose. This bill would increase the maximum grant award to instead be no greater than $40,000 per teacher candidate, as provided.

(3) The Cal Grant Program establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Under existing law, a requirement of the program includes determining financial need to establish an applicant’s initial eligibility for a Cal Grant award and a renewing recipient’s continued eligibility, as provided.

This bill would, commencing with the 2024–25 award year, and for each award year thereafter, require 1,000 of the awarded Cal Grants to be exempt from the above-described requirement of determining financial need if the applicant meets the other requirements of the program, as specified, and the applicant files a statement of intent with the commission stating that the applicant agrees to enroll in a teacher preparation program upon completion of a baccalaureate degree, as provided.

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

This bill would provide that no reimbursement is required by this act for a specified reason.

(5)Funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.

Digest Key

Vote: MAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

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

SECTION 1.Section 24214.1 is added to the Education Code, to read:

24214.1.

(a)The 180-day break in service requirement under subdivision (f) of Section 7522.56 of the Government Code is not applicable to a member retired for service under this part who was a classroom teacher or administrator who has returned to work after the date of retirement to fulfill a critical need in a classroom teaching position due to the teacher shortage.

(b)The postretirement compensation limitation set forth in subdivision (f) of Section 24214 is not applicable to compensation paid to a member who has returned to work under subdivision (a).

(c)(1)A local school district, county office of education, or other local educational agency exercising the exemption pursuant to subdivisions (a) and (b) is exempt from subdivisions (e) to (g), inclusive, of Section 24214.5.

(2)The local educational agency shall maintain all applicable documentation required by the system to substantiate the eligibility of the retired member for the exemption, including compliance with subdivision (e).

(3)The retired member shall not perform retired member activities until after the documentation has been received by the system.

(d)Subdivision (b) shall not apply to a retired member who has not attained normal retirement age at the time the compensation is earned by the member, received additional service credit pursuant to Section 22714 or 22715, or received from any public employer any financial inducement to retire in the previous six months. For purposes of this section, “financial inducement to retire” includes, but is not limited to, any form of compensation or other payment that is paid directly or indirectly by a public employer to the member, even if not in cash, either before or after retirement, if the member retires for service on or before a specific date or specific range of dates established by the public employer on or before the date the inducement is offered. The system shall liberally interpret this subdivision to further the Legislature’s intent to make subdivision (b) inapplicable to members if the member received a financial incentive from any public employer to retire or otherwise terminate employment with the public employer.

(e)The documentation required for subdivision (a) shall include self-certification, under penalty of perjury, of the following:

(1)The position was first advertised for appointment to current active or inactive members of the program with the necessary qualifications to perform the requirements of the position and no qualified current active or inactive member was available to be appointed.

(2)The appointing authority made a good faith effort to hire a retired member who reinstated to active membership for the position at the same salary that was offered as first advertised pursuant to paragraph (1).

(3)The appointing authority, having tried and failed to hire a current active or inactive member or a reinstated retired member, hired a retired member and the salary offered to the retired member subject to this paragraph does not exceed the salary that was offered as first advertised pursuant to paragraph (1).

(4)The salary paid shall be no greater than the salary offered to current active members for the appointed position.

(f)For purposes of this section, a “classroom teacher” means a member who was an employee of an elementary school, high school, school district, county office of education, or other local educational agency, employed in a position requiring certification qualifications and whose duties required the teacher to teach pupils in regular class days for the time for which the teacher was employed during the regular schoolday.

(g)The number of waivers granted pursuant to this section shall not exceed 400.

(h)This section shall become inoperative on December 31, 2026, and, as of January 1, 2027, is repealed.

SECTION 1.

 Section 24214.1 is added to the Education Code, to read:

24214.1.

 (a) The compensation earned by a member who retired for service under this part shall be exempt from subdivisions (d), (f), and (g) of Section 24214 if the member returns to perform retired member activities for an employer, excluding a community college district.

(b) An employer shall submit all documentation required by the system to substantiate the eligibility of the retired member for the exemption pursuant to subdivision (a), including compliance with subdivision (c).

(c) The retired member shall not perform retired member activities until after the documentation has been received by the system. The documentation required by subdivision (b) shall include certification, under penalty of perjury, of the following:

(1) The member is returning to fulfill a critical need in a teaching position as defined in subdivision (e).

(2) The teaching position was first advertised for appointment to current active or inactive members of the program with the necessary qualifications to perform the requirements of the teaching position, and no qualified current active or inactive member was available to be appointed.

(3) The appointing authority made a good faith effort to hire a retired member who reinstated to active membership for the teaching position at the same salary that was offered as first advertised pursuant to paragraph (2).

(4) The appointing authority, having tried and failed to hire a current active or inactive member or a reinstated retired member, hired a retired member, and the salary offered to the retired member subject to this paragraph does not exceed the salary that was offered as first advertised pursuant to paragraph (2).

(5) The compensation paid for the teaching position meets the requirements set forth in subdivision (b) of Section 24214.

(6) The teaching position vacancy occurred due to circumstances beyond the control of the employer. The termination of employment of the retired member with the employer is not the basis for the need to acquire the services of the retired member.

(7) The member did not receive additional service credit pursuant to Section 22714 or 22715, or receive from any public employer any financial inducement to retire. For purposes of this section, “financial inducement to retire” includes, but is not limited to, any form of compensation or other payment that is paid directly or indirectly by a public employer to the member, even if not in cash, either before or after retirement, if the member retires for service on or before a specific date or specific range of dates established by a public employer on or before the date the inducement is offered. The system shall liberally interpret this subdivision to further the Legislature’s intent to make subdivisions (d), (f), and (g) of Section 24214 inapplicable to members if the member received a financial incentive from any public employer to retire or otherwise terminate employment with a public employer.

(d) The period of exemption shall commence on the date the retired member is appointed or assigned to the teaching position and shall end on June 30 of that fiscal year, after which the limitation specified in subdivisions (d), (f), and (g) of Section 24214 shall apply.

(e) For the purposes of this section, “teaching position” means a position requiring certification qualifications authorized by the Commission on Teaching Credentialing pursuant to Section 44001, or a position requiring administrative or supervisory credentials.

(f) This section shall remain in effect only until June 30, 2026, and shall be repealed as of January 1, 2027, unless a later enacted statute deletes or extends that date.

SEC. 2.

 Section 24214.5 of the Education Code is amended to read:

24214.5.

 (a) (1) Notwithstanding subdivision (f) of Section 24214, the postretirement compensation limitation that shall apply to the compensation paid in cash to the retired member for performance of retired member activities, excluding reimbursements paid by an employer for expenses incurred by the member in which payment of the expenses by the member is substantiated, shall be zero dollars ($0) during the first 180 calendar days after the most recent retirement of a member retired for service under this part.

(2) For written agreements pertaining to the performance of retired member activities entered into, extended, renewed, or amended on or after January 1, 2014, the limitation in paragraph (1) shall also apply to payments made for the performance of retired member activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.

(b) If the retired member has attained normal retirement age at the time the compensation is earned, subdivision (a) Subdivision (a) shall not apply and Section 24214 shall apply if the appointment has been approved by the governing body of the employer in a public meeting, as reflected in a resolution adopted by the governing body of the employer prior to the performance of retired member activities, expressing its intent to seek an exemption from the limitation specified in subdivision (a). Approval of the appointment may not be placed on a consent calendar. Notwithstanding any other provision of Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code or any state or federal law incorporated by Section 7927.705 of the Government Code, the resolution shall be subject to disclosure by the entity adopting the resolution and the system. The resolution shall include the following specific information and findings: the Superintendent, the county superintendent of schools, or the chief executive officer of a community college submits a request for exemption to the system with certification of the following:

(1) The nature of the employment.

(2) A finding that That the appointment is necessary to fill a critically needed position before 180 calendar days have passed.

(3) A finding that That the member is not ineligible for application of this subdivision pursuant to subdivision (d).

(4) A finding that That the termination of employment of the retired member with the employer is not the basis for the need to acquire the services of the member.

(c) Subdivision (b) shall not apply to a retired member whose if the following conditions exist:

(1) The member has not attained normal retirement age at the time the compensation is earned.

(2) The member’s termination of employment with the employer is the basis for the need to acquire the services of the member.

(d)Subdivision (b) shall not apply if the retired member

(3) A member who received additional service credit pursuant to Section 22714 or 22715 or received from any public employer any financial inducement to retire. For purposes of this section, “financial inducement to retire” includes, but is not limited to, any form of compensation or other payment that is paid directly or indirectly by a public employer to the member, even if not in cash, either before or after retirement, if the participant member retires for service on or before a specific date or specific range of dates established by a public employer on or before the date the inducement is offered. The system shall liberally interpret this subdivision to further the Legislature’s intent to make subdivision (b) inapplicable to members if the member received a financial incentive from any public employer to retire or otherwise terminate employment with a public employer.

(e)The Superintendent, the county superintendent of schools, or the chief executive officer of a community college shall submit all documentation required by the system to substantiate the eligibility of the retired member for application of subdivision (b), including, but not limited to, the resolution adopted pursuant to that subdivision.

(f)

(d) The documentation required by this section shall be received by the system prior to the retired member’s performance of retired member activities.

(g)

(e) Within 30 calendar days after the receipt of all documentation required by the system pursuant to this section, the system shall inform the entity seeking application of the exemption specified in subdivision (b), and the retired member whether the compensation paid to the member will be subject to the limitation specified in subdivision (a).

(h)

(f) If a member retired for service under this part earns compensation for performing retired member activities in excess of the limitation specified in subdivision (a), the member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction in an individual month shall be no more than the monthly allowance payable in that month, and the total amount of the reduction shall not exceed the amount of the allowance payable during the first 180 calendar days, after a member retired for service under this part.

(i)

(g) The amendments to this section enacted during the first year of the 2013–14 Regular Session shall apply to compensation paid on or after January 1, 2014.

SEC. 2.SEC. 3.

 Section 44415.5 of the Education Code is amended to read:

44415.5.

 (a) For purposes of this section, the following definitions apply for the Teacher Residency Grant Program:

(1) “Experienced mentor teacher” means an educator who meets all of the following requirements:

(A) Has at least three years of teaching experience and holds a clear credential in the subject in which the mentor teacher will be mentoring. For programs leading to the issuance of new PK-3 early childhood education specialist credentials, the mentor teacher must have at least three years of teaching experience in prekindergarten, transitional kindergarten, kindergarten, or any of grades 1 to 3, inclusive, and hold a clear multiple subject credential.

(B) Has a record of successful teaching as demonstrated, at a minimum, by satisfactory annual performance evaluations for the preceding three years.

(C) Receives specific training for the mentor teacher role, and engages in ongoing professional learning and networking with other mentors.

(D) Receives compensation, appropriate release time, or both, to serve as a mentor in the initial preparation or beginning teacher induction component of the teacher residency program.

(2) “Teacher residency program” is a grant applicant-based program that partners with one or more commission-approved teacher preparation programs offered by a regionally accredited institution of higher education in which a prospective teacher teaches at least one-half time alongside a teacher of record, who is designated as the experienced mentor teacher, for at least one full school year while engaging in initial preparation coursework.

(b) (1)For the 2021–22 fiscal year, the sum of three hundred fifty million dollars ($350,000,000) is hereby appropriated from the General Fund to the commission for the Teacher Residency Grant Program to support teacher residency programs that recruit and support the preparation of teachers pursuant to this section. This funding shall be available for encumbrance until June 30, 2026.

(2)For the 2023–24 fiscal year, the sum of ____ ($____) is hereby appropriated from the General Fund to the commission for the Teacher Residency Grant Program to support teacher residency programs that recruit and support the preparation of teachers pursuant to this section. This funding shall be available for encumbrance until June 30, 2026.

(c) (1) The commission shall make grants to applicants to establish new teacher residency programs, or expand, strengthen, or improve access to existing teacher residency programs that support either of the following:

(A) Designated shortage fields, including, but not limited to, special education, bilingual education, science, computer science, technology, engineering, mathematics, transitional kindergarten, or kindergarten, school counselors, and any other fields identified by the commission based on an annual analysis of state and regional hiring and vacancy data.

(B) Local efforts to recruit, develop support systems for, provide outreach and communication strategies to, and retain a diverse teacher workforce that reflects a local educational agency community’s diversity.

(2) Grant recipients shall work with one or more commission-accredited teacher preparation programs and may work with other community partners or nonprofit organizations to develop and implement programs of preparation and mentoring for resident teachers who will be supported through program funds and subsequently employed by the sponsoring grant recipient.

(3) A grant applicant may consist of one or more, or any combination, of the following:

(A) A school district.

(B) A county office of education.

(C) A charter school.

(D) A regional occupational center or program operated by a joint powers authority or a county office of education.

(d) Grants allocated pursuant to subdivision (c) shall be up to forty thousand dollars ($40,000) per teacher candidate in the residency program of the jurisdiction of the grant recipient, matched by that grant recipient at a rate of 80 percent of the grant amount received per participant, as described in subdivision (f). Residents are also eligible for other forms of federal, state, and local educational agency financial assistance to support the cost of their preparation. Grant program funding shall be used for, but is not limited to, any of the following:

(1) Teacher preparation costs.

(2) Stipends for mentor teachers, including, but not limited to, housing stipends.

(3) Residency program staff costs.

(4) Mentoring and beginning teacher induction costs following initial preparation.

(e) A grant recipient shall not use more than 5 percent of a grant award for program administration costs.

(f) A grant recipient shall provide a match of grant funding in the form of one or both of the following:

(1) Eighty cents ($0.80) for every one dollar ($1) of grant funding received per participant, to be used in a manner consistent with allowable grant activities pursuant to subdivision (d).

(2) An in-kind match of program director personnel costs, mentor teacher personnel costs, or other personnel costs related to the Teacher Residency Grant Program, provided by the grant recipient.

(g) Grant recipients shall do all of the following:

(1) Ensure that candidates are prepared to earn a preliminary teaching credential, including a PK-3 early childhood education specialist credential, in furtherance of paragraph (1) of subdivision (c) upon completion of the program.

(2) Ensure that candidates are provided instruction in all of the following:

(A) Teaching the content area or areas in which the teacher will become certified to teach.

(B) Planning, curriculum development, and assessment.

(C) Learning and child development.

(D) Management of the classroom environment.

(E) Use of culturally responsive practices, supports for language development, and supports for serving pupils with disabilities.

(F) Professional responsibilities, including interaction with families and colleagues.

(3) Provide each candidate mentoring and beginning teacher induction support following the completion of the initial credential program necessary to obtain a clear credential and ongoing professional development and networking opportunities during the candidate’s first years of teaching at no cost to the candidate.

(4) Prepare candidates to teach in a school within the jurisdiction of the grant recipient in which they will work and learn the instructional initiatives and curriculum of the grant recipient.

(5) Group teacher candidates in cohorts to facilitate professional collaboration among residents, and ensure candidates are enrolled in a teaching school or professional development program that is organized to support a high-quality teacher learning experience in a supportive work environment.

(h) To receive a grant, an applicant shall submit an application to the commission at a time, in a manner, and containing information prescribed by the commission.

(i) When selecting grant recipients, the commission shall do both of the following:

(1) Require applicants to demonstrate a need for teachers in one or more designated shortage fields or for the purposes described in subparagraph (B) of paragraph (1) of subdivision (c), and to propose to establish a new, or expand, strengthen, or improve access to an existing, teacher residency program that recruits, prepares, and supports teachers to teach in either one or more such fields or in furtherance of subparagraph (B) of paragraph (1) of subdivision (c) in a school within the jurisdiction of the sponsoring grant applicant.

(2) Give priority consideration to grant applicants who demonstrate a commitment to increasing diversity in the teaching workforce, have a higher percentage than other applicants of unduplicated pupils, as defined in Section 42238.02, and have one or more schools that exhibit one or both of the following characteristics:

(A) A school where 50 percent or more of the enrolled pupils are eligible for free or reduced-price meals.

(B) A school that is located in either a rural location or a densely populated region.

(j) A candidate in a teacher residency program sponsored by a grant provided pursuant to subdivision (c) shall agree in writing to serve in a school within the jurisdiction of the grant recipient that sponsored the candidate for a period of at least four school years beginning with the school year that begins after the candidate successfully completes the initial year of preparation and obtains a preliminary teaching credential, including a PK-3 early childhood education specialist credential. A candidate who fails to earn a preliminary credential, or who fails to complete the period of the placement, shall reimburse the sponsoring grant recipient the amount of grant funding invested in the candidate’s residency training. The amount to be reimbursed shall be adjusted proportionately to reflect the service provided if the candidate taught at least one year, but less than four years, at a school within the jurisdiction of the sponsoring grant recipient. A candidate shall have five school years to complete the four-school-year teaching commitment.

(k) If a candidate is unable to complete a school year of teaching, that school year may still be counted toward the required four complete school years if any of the following occur:

(1) The candidate has completed at least one-half of the school year.

(2) The employer deems the candidate to have fulfilled their contractual requirements for the school year for the purposes of salary increases, probationary or permanent status, and retirement.

(3) The candidate was not able to teach due to the financial circumstances of the sponsoring grant recipient, including a decision to not reelect the employee for the succeeding school year.

(4) The candidate has a condition covered under the federal Family and Medical Leave Act of 1993 (29 U.S.C. Sec. 2061 et seq.) or similar state law.

(5) The candidate was called or ordered to active duty status for more than 30 days as a member of a reserve component of the Armed Forces of the United States.

(l) For purposes of administering the grant program pursuant to subdivision (c), the commission shall do all of the following:

(1) Determine the number of grants to be awarded and the total amount awarded to each grant applicant.

(2) Require grant recipients to submit program and expenditure reports, as specified by the commission, as a condition of receiving grant funds.

(3) Annually review each grant recipient’s program and expenditure reports to determine if any candidate has failed to meet their commitment pursuant to subdivision (j).

(m) If the commission determines or is informed that a sponsored candidate failed to earn a preliminary credential or failed to meet their commitment to teach pursuant to subdivision (j), the commission shall confirm with the grant recipient the applicable grant amount to be recovered from the candidate and the grant recipient. The amount to be recovered shall be adjusted proportionately to reflect the service provided if the candidate taught at least one year, but less than four years, at the sponsoring grant recipient.

(n) Upon confirming the amount to be recovered from the grant recipient pursuant to subdivision (m), the commission shall notify the grant recipient of the amount to be repaid within 60 days. The grant recipient shall have 60 days from the date of the notification to make the required repayment to the commission. If the grant recipient fails to make the required payment within 60 days, the commission shall notify the Controller and the grant recipient of the failure to repay the amount owed. The Controller shall deduct an amount equal to the amount owed to the commission from the grant recipient’s next principal apportionment or apportionments of state funds, other than basic aid apportionments required by Section 6 of Article IX of the California Constitution. If the grant recipient is a regional occupational center or program operated by a joint powers authority that does not receive a principal apportionment or apportionments of state funds, or a consortia of local educational agencies, the commission shall notify the Controller of the local educational agency where the candidate taught and the Controller shall deduct the amount owed from the applicable local educational agency’s next principal apportionment or apportionments of state funds, other than basic aid apportionments required by Section 6 of Article IX of the California Constitution.

(o) An amount recovered by the commission or deducted by the Controller pursuant to subdivision (n) shall be deposited into the Proposition 98 Reversion Account.

(p) Grant recipients may recover from a sponsored candidate who fails to earn a preliminary credential, or who fails to complete the period of placement, the amount of grant funding invested in the candidate’s residency training. The amount to be recovered shall be adjusted proportionately to reflect the service provided if the candidate taught at least one year, but less than four years, at a school within the jurisdiction of the sponsoring grant recipient.

(q) Grant recipients shall not charge a teacher resident a fee to participate in the Teacher Residency Grant Program.

(r) (1) Notwithstanding subdivision (c), the commission may allocate up to twenty-five million dollars ($25,000,000) of the amount appropriated pursuant to subdivision (b) to capacity grants that shall be awarded on a competitive basis to local educational agencies or consortia, as designated pursuant to this section, partnering with regionally accredited institutions of higher education to expand, strengthen, improve access to, or create teacher residency programs.

(2) (A) The commission shall determine the number of capacity grants to be awarded and the amount of the applicable grants.

(B) Individual capacity grants shall not exceed two hundred fifty thousand dollars ($250,000) per grant recipient.

(s) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made by subdivision (b) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the 2020–21 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202, for the 2020–21 fiscal year.

SEC. 3.SEC. 4.

 Section 69432.9 of the Education Code is amended to read:

69432.9.

 (a) A Cal Grant applicant shall submit a complete official financial aid application pursuant to Section 69433 and applicable regulations adopted by the commission. Each pupil enrolled in grade 12 in a California public school, including a charter school, other than pupils who opt out as provided in subdivision (d), shall be deemed to be a Cal Grant applicant.

(b) Financial need shall be determined to establish an applicant’s initial eligibility for a Cal Grant award and a renewing recipient’s continued eligibility using the federal financial need methodology pursuant to subdivision (a) of Section 69506 and applicable regulations adopted by the commission, and as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).

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

(2) “Financial need” means the difference between the student’s cost of attendance as determined by the commission and the expected family contribution. The calculation of financial need shall be consistent with Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).

(3) (A) The minimum financial need required for receipt of an initial and renewal Cal Grant A or C award shall be no less than the maximum annual award value for the applicable institution, plus an additional one thousand five hundred dollars ($1,500) of financial need.

(B) The minimum financial need required for receipt of an initial and renewal Cal Grant B award shall be no less than seven hundred dollars ($700).

(4) Notwithstanding paragraphs (2) and (3), for the 2020–21 and 2021–22 award years, a student with an initial or renewal Cal Grant A award impacted by a change in the student’s living status, from living on-campus to living off-campus or from living on-campus to living at home, due to the COVID-19 pandemic, shall have the student’s eligibility for the initial or renewal Cal Grant A award calculated based on what it would have been had the change in the student’s living status due to the COVID-19 pandemic not occurred.

(c) (1) The commission shall require that a grade point average be submitted to it for all Cal Grant A and B applicants, except for those permitted to provide test scores in lieu of a grade point average or as provided in subclause (II) of clause (iii) of subparagraph (B) of paragraph (2).

(2) (A) On or before January 1, 2025, the commission shall require that any grade point average data required for eligibility for student financial aid programs be submitted by local educational agencies through the California Longitudinal Pupil Achievement Data System established by Section 60900 for transmittal to the California College Guidance Initiative. The governing board of the Cradle-to-Career Data System shall be responsible for developing a timeline to guide the commission’s implementation of this paragraph.

(B) (i) The commission shall require that a grade point average be submitted to it electronically on a standardized form for all grade 12 pupils at public schools, including charter schools, no later than October 1 of each academic year, except for pupils who have opted out as provided in subdivision (d). Social security numbers shall not be included in the information submitted to the commission. However, if the commission determines that a social security number is required to complete the application for financial aid, the school, school district, or charter school may obtain permission from the parent or guardian of the pupil, or the pupil, if the pupil is 18 years of age, to submit the pupil’s social security number to the commission.

(ii) The commission shall require that each report of a grade point average include a certification, executed under penalty of perjury, by a school official, that the grade point average reported is accurately reported. The certification shall include a statement that it is subject to review by the commission or its designee.

(iii) (I) The commission shall adopt regulations that establish a grace period for receipt of the grade point average and any appropriate corrections, and that set forth the circumstances under which a student may submit a specified test score designated by the commission, by regulation, in lieu of submitting a qualifying grade point average.

(II) Notwithstanding subclause (I), for the 2021–22 award year, commission staff may waive the requirement to submit a test score in lieu of a qualifying grade point average for a student who does not have a grade point average and is unable to submit a test score due to unavailability of designated testing due to the COVID-19 pandemic. The commission shall require a student seeking a waiver under this subclause to submit a signed certification verifying they were prevented from taking and submitting a test score in lieu of a qualifying grade point average due to the COVID-19 pandemic. For purposes of consideration for a Cal Grant A or B Entitlement award when applying with a waiver under this subclause for the 2021–22 award year, students shall have until May 16, 2021, to complete and submit their financial aid application and signed certification verifying they were prevented from taking and submitting a test score in lieu of a qualifying grade point average.

(iv) The requirements of this subparagraph shall become inoperative upon the submission by the commission of any required grade point average through the Cradle-to-Career Data System pursuant to subparagraph (A).

(3) It is the intent of the Legislature that high schools and institutions of higher education certify the grade point averages of their students in time to meet the application deadlines imposed by this chapter.

(4) (A) It is the intent of the Legislature that the commission make available to each high school and school district a report identifying all grade 12 pupils within the high school or school district, respectively, who have and have not completed the Free Application for Federal Student Aid or the California Dream Act application.

(B) The requirements of this paragraph shall become inoperative upon the submission by the local educational agency of any required grade point average through the Cradle-to-Career Data System pursuant to subparagraph (A) of paragraph (2).

(d) (1) The school district or charter school shall, no later than January 1 of a pupil’s grade 11 academic year, notify, in writing, each grade 11 pupil and, for a pupil under 18 years of age, the pupil’s parent or guardian that, pursuant to subdivision (a), the pupil will be deemed a Cal Grant applicant unless the pupil opts out within a period of time specified in the notice, which shall not be less than 30 days. The required notice shall indicate when the school will first send grade point averages to the commission and the submission deadline of October 1. The school district or charter school shall provide an opportunity for the pupil to opt out of being automatically deemed a Cal Grant applicant.

(2) Until a pupil turns 18 years of age, only a parent or guardian may opt the pupil out. Once a pupil turns 18 years of age, only the pupil may opt the pupil out and, if before the conclusion of the notice period, the pupil may opt in over the prior decision of a parent or guardian to opt out.

(e) Commencing with the 2024–25 award year, and for each award year thereafter, 1,000 of the awarded Cal Grants shall be exempt from the requirements of subdivision (b) if both of the following are met:

(1) The requirements of subdivisions (c) and (d).

(2) The pupil agrees applicant files a statement of intent with the Student Aid Commission stating that the applicant agrees to enroll in a teacher preparation program that is approved by the Commission on Teacher Credentialing upon completion of the pupil’s applicant’s baccalaureate degree.

SEC. 4.SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.