Bill Text: CA SB81 | 2015-2016 | Regular Session | Chaptered
Bill Title: Postsecondary education: budget.
Spectrum: Unknown
Status: (Passed) 2015-06-24 - Chaptered by Secretary of State. Chapter 22, Statutes of 2015. [SB81 Detail]
Download: California-2015-SB81-Chaptered.html
BILL NUMBER: SB 81 CHAPTERED
BILL TEXT
CHAPTER 22
FILED WITH SECRETARY OF STATE JUNE 24, 2015
APPROVED BY GOVERNOR JUNE 24, 2015
PASSED THE SENATE JUNE 19, 2015
PASSED THE ASSEMBLY JUNE 19, 2015
AMENDED IN ASSEMBLY JUNE 16, 2015
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2015
An act to amend Sections 8152, 69431.7, 69432, 69437, 70022,
70023, 79148, 79149.3, 84750.5, 89772, 92493, 92495, and 92495.5 of,
to add Sections 52334.7, 68075.7, 70022.5, 84044, 84751.6, 84751.7,
and 94874.9 to, to add Article 8 (commencing with Section 79240) to
Chapter 9 of Part 48 of Division 7 of Title 3 of, to add Part 53
(commencing with Section 88700) and Part 54 (commencing with Section
88800) to Division 7 of Title 3 of, and to repeal and add Section
88540 of, the Education Code, to amend Sections 17039, 17053.86,
23036, and 23686 of, and to add and repeal Sections 12207, 17053.87,
and 23687 of, the Revenue and Taxation Code, and to add Item
6910-102-0001 to Section 2.00 of the Budget Act of 2014 (Chapters 25
and 663 of the Statutes of 2014), relating to postsecondary
education, and making an appropriation therefor, to take effect
immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 81, Committee on Budget and Fiscal Review. Postsecondary
education: budget.
(1) Existing law provides for the attendance of apprentices at
local educational agencies, defined to mean school districts and
county offices of education, and community colleges under vocational
education program standards that are established with the
participation of the State Department of Education, the Chancellor of
the California Community Colleges, and the Division of
Apprenticeship Standards of the Department of Industrial Relations.
Existing law requires the chancellor to allocate the hours for
instruction related and supplemental to on-the-job training, to be
paid from funds appropriated by the Legislature directly to
participating local educational agencies and community colleges that
contract with apprenticeship programs.
This bill would require the chancellor to notify participating
local educational agencies and community colleges of the initial
allocation of related and supplemental hours within 30 days of the
enactment of the annual Budget Act. The bill would require the
chancellor to report certain information relating to allocated hours
to the California Apprenticeship Council within 30 days of each
apportionment period for each participating local educational agency
and community college.
(2) Existing law authorizes various career technical education
programs, including regional occupational centers and programs,
specialized secondary programs, partnership academies, and
agricultural career technical education programs.
The bill would authorize the Superintendent of Public Instruction
to certify, by name, each regional occupational center or program,
county office of education, or adult education program that provides
a program of training to prepare adult students for gainful
employment in a recognized occupation, to legally authorize the
center, program, or office to provide an educational program beyond
secondary education, as specified.
(3) Existing law exempts certain students of the California State
University and the California Community Colleges from paying
nonresident tuition.
This bill would provide that, effective for academic terms
beginning after July 1, 2015, a student enrolled at a campus of the
California Community Colleges or the California State University who
resides in California, meets the definition of "covered individual"
under a specified federal statute, and is eligible for education
benefits under either of 2 specified federal "GI Bill" programs, is
exempt from paying nonresident tuition and any other fees exclusively
applicable to nonresident students at that campus.
The bill would provide that a student who qualifies under this
bill for an exemption from paying nonresident tuition and other fees
exclusively applicable to nonresident students would be exempt from
paying nonresident tuition and these other fees for each academic
term for which he or she enrolls while he or she is continuously
enrolled, as defined, at the campus he or she attends. To the extent
that this provision would create new duties for community college
districts, it would constitute a state-mandated local program.
The bill would authorize a community college district to report
the attendance of a student who is exempt from nonresident tuition
and other fees under this bill for apportionment purposes.
(4) 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. Existing law establishes
the maximum tuition award amount for each Cal Grant A and B award for
new recipient students attending private nonprofit postsecondary
educational institutions at $9,084 for the 2014-15 award year and
$8,056 for the 2015-16 award year and each award year thereafter.
This bill would increase the maximum tuition award amount for Cal
Grant A and B for new recipients at private nonprofit postsecondary
educational institutions to $9,084 for the 2015-16 and 2016-17 award
year.
(5) Under existing law, the Cal Grant Program requires, among
other things, that a total of 22,500 Competitive Cal Grant A and B
awards be granted annually.
This bill would instead, commencing with the 2015-16 academic
year, require that a total of 25,750 Competitive Cal Grant A and B
awards be granted annually. The bill would also make conforming
changes and delete an obsolete provision.
(6) Existing law establishes the Student Aid Commission as the
primary state agency for the administration of state-authorized
student financial aid programs available to students attending all
segments of postsecondary education. The programs administered by the
commission include the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program and the Middle Class Scholarship Program.
The Middle Class Scholarship Program provides that, subject to an
available and sufficient appropriation, commencing with the 2014-15
academic year, an undergraduate student enrolled at the University of
California or the California State University, and meeting certain
requirements, is eligible for a scholarship award that, combined with
other federal, state, and institutionally administered grants and
fee waivers, is for an amount of up to 40% of the systemwide tuition
and fees. Under existing law, a student receiving an award under the
Middle Class Scholarship Program is required to have an annual
household income that does not exceed $150,000, satisfy specified
requirements for a Cal Grant award, be a California resident or
exempt from paying nonresident tuition, file specified financial aid
forms, timely apply for publicly funded student financial aid for
which he or she is eligible, maintain at least a 2.0 grade point
average, be pursuing his or her first undergraduate baccalaureate
degree or be enrolled in a specified professional teacher preparation
program, and be enrolled at least parttime.
This bill would require that a student meet these requirements
each academic year, to the satisfaction of the commission, to be
eligible for an award under the Middle Class Scholarship Program. The
bill would provide that $150,000 maximum annual household income
amount would be adjusted, beginning in 2016-17 academic year, for
changes in the cost of living, as defined. The bill, beginning with
awards distributed for the 2015-16 academic year, would prohibit a
student from receiving an award under the program if that student's
household asset level exceeds $150,000, as adjusted, beginning in the
2016-17 academic year, for changes in the cost of living. The bill
would provide that a scholarship awarded under the Middle Class
Scholarship Program can be renewed, as specified.
(7) Existing law requires specified amounts to be transferred,
upon order of the Director of Finance, from the General Fund to the
Middle Class Scholarship Fund each fiscal year commencing with the
2014-15 fiscal year. Existing law appropriates these funds to the
Student Aid Commission for allocation pursuant to the Middle Class
Scholarship Program. Existing law provides that, upon order of the
Director of Finance, if the May Revision projects a deficit for the
next fiscal year, the amounts specified for transfer may be reduced
by up to 33% and, beginning with the 2016-17 fiscal year, and each
year thereafter, to an amount greater than or equal to $200,000,000.
This bill would reduce the amounts specified for transfer to the
Middle Class Scholarship Fund for the 2015-16, 2016-17, and 2017-18
fiscal years from $152,000,000 to $82,000,000, from $228,000,000 to
$116,000,000, and from $305,000,000 to $159,000,000, respectively,
subject to a further 33% reduction as specified above, and would
express the Legislature's intent that any savings realized in this
regard be used to support higher education.
(8) This bill would require funds appropriated to the board of
governors for the Foster Care Education Program to be used for foster
parent and relative/kinship care provider education, as specified.
(9) Existing law establishes various student equity-related
programs, including the Student Success and Basic Skills Students
program, the Student Financial Aid Administration program, the
Student Success and Support Program, and the Telecommunications and
Technology Infrastructure program.
This bill would require the Chancellor of the California Community
Colleges to submit reports to the Department of Finance and the
Legislature, by December 31 of each fiscal year, on the use of funds
appropriated in the Budget Act for the prior fiscal year for the
Student Success and Basic Skills Students program, the Student
Financial Aid Administration program, the technical assistance
provided to community college districts pursuant to the Student
Success and Support Program, and the Telecommunications and
Technology Infrastructure program, as specified.
(10) Existing law requires the Board of Governors of the
California Community Colleges to develop criteria and standards, in
accordance with specified statewide minimum requirements, for the
purposes of making the annual budget request for the California
Community Colleges to the Governor and the Legislature, and
allocating state general apportionment revenues. Those statewide
minimum requirements include, among other things, a requirement that
the calculations of each community college district's revenue level
for each fiscal year be based on specified criteria, with revenue
adjustments being made for increases or decreases in attendance and
for other specified reasons.
This bill, if the annual budget act identifies funds appropriated
to do so, would require the chancellor to adjust the budget request
formula, as specified.
(11) The Schools and Local Public Safety Protection Act of 2012,
an initiative measure approved by the voters at the November 6, 2012,
statewide general election, among other things, increased certain
tax rates and deposited the revenues from those increases in tax into
the Education Protection Account. The act provides that all moneys
in the Education Protection Account are continuously appropriated for
the support of school districts, county offices of education,
charter schools, and community college districts, and requires 11% of
the moneys appropriated to be allocated quarterly by the Board of
Governors of the California Community Colleges to community college
districts to provide general purpose funding to community college
districts, as specified. The act requires that allocation to be
offset by certain amounts, provided that no community college
district receives less than $100 per full-time equivalent student.
This bill would require an amount to be determined by the Director
of Finance to be appropriated, on or before June 30 of each fiscal
year, from the General Fund to the Board of Governors of the
California Community Colleges if the revenues distributed to
community college districts that are intended to offset the Education
Protection Account allocation are less than the estimated amount
reflected in the Budget Act for that year. If the revenues
distributed to community college districts that are intended to
offset the Education Protection Account allocation exceed the
estimated amount reflected in the Budget Act for that fiscal year,
the bill would require the Director of Finance to reduce a specified
item of that Budget Act that appropriates funds to the board of
governors by the excess amount.
(12) This bill would require an amount to be determined by the
Director of Finance to be appropriated, on or before June 30 of each
fiscal year from the General Fund to the Board of Governors of the
California Community Colleges if specified redevelopment-related
revenues distributed to community college districts are less than the
estimated amount reflected in the Budget Act for that fiscal year.
If the specified redevelopment-related revenues distributed to
community college districts exceed the estimated amount reflected in
the Budget Act for that fiscal year, the bill would require the
Director of Finance to reduce a specified item of that Budget Act
that appropriates funds to the board of governors by the excess
amount.
(13) Existing law, until June 30, 2015, establishes the Career
Technical Education Pathways Program, which requires the Chancellor
of the California Community Colleges and the Superintendent of Public
Instruction to assist economic and workforce regional development
centers and consortia, community colleges, middle schools, high
schools, and regional occupational centers and programs to improve
linkages and career technical education pathways between high schools
and community colleges, as specified.
This bill would continue the operation of the program until July
1, 2016, and would appropriate $48,000,000 for the support of the
program.
(14) Existing law establishes the California Community Colleges,
under the administration of the Board of Governors of the California
Community Colleges, as one of the segments of public postsecondary
education in this state. Existing law authorizes the establishment of
community college districts under the administration of community
college governing boards, and authorizes these districts to provide
instruction at community college campuses throughout the state.
This bill would establish a financial and professional development
grant funding program, which would authorize the governing board of
a community college district to apply to the Chancellor of the
California Community Colleges for, and would require the chancellor
to distribute, multiyear financial and professional development grant
funding upon appropriation of funds for that purpose for community
colleges within the district to adopt or expand the use of
evidence-based models of academic assessment and placement,
remediation, and student support that accelerate the progress of
underprepared students toward achieving postsecondary educational and
career goals. The bill would require community colleges that receive
these grants to report specified information to the chancellor's
office on program outcomes. The bill would make the chancellor's
office responsible for administering the grant program and
distributing and monitoring awards to recipient community college
districts, developing application criteria, administrative
guidelines, and other requirements for purposes of administering the
grant program, and providing the information submitted by community
college districts to the Legislative Analyst's Office. The bill would
require the Legislative Analyst's Office to report to the
Legislature on the progress of the grant program in achieving its
prescribed purpose, as specified.
This bill would appropriate the sum of $60,000,000 from the
General Fund to the Chancellor of the California Community Colleges
for allocation to community college districts under the financial
grant and professional development funding program described above.
(15) Under existing law, the Board of Governors of the California
Community Colleges appoints a Chancellor of the California Community
Colleges to serve as the chief executive officer of the segment.
This bill would require the chancellor to solicit, from community
college districts that choose to apply for a grant under this bill,
applications seeking funding for plans to provide instruction in
basic skills to students enrolled, or who will enroll at, California
State University campuses. The bill would specify information that
would be included in these applications.
The bill would require the chancellor to award grants of
$2,000,000 each to 5 of the applicant community college districts in
accordance with specified criteria. The bill would require, no later
than April 1, 2017, that, based on specified data provided by the
districts that received the grants, the chancellor, following
consultation with the Chancellor of the California State University,
report to the Legislature, the Legislative Analyst's Office, and the
Department of Finance on the effectiveness of the plans in delivering
instruction in basic skills to the targeted students.
The bill would appropriate $10,000,000 from the General Fund to
the Chancellor of the California Community Colleges for allocation to
community college districts under the bill.
(16) Existing law authorizes the California State University to
pledge its annual General Fund support appropriation, less certain
amounts, to secure the payment of its debt obligations issued by the
trustees pursuant to the State University Revenue Bond Act of 1947.
Existing law authorizes the California State University to fund debt
service for capital expenditures, as defined, from its General Fund
support appropriation, as specified.
Existing law prohibits the California State University from using
its General Fund support appropriation to fund certain capital
expenditures and certain capital outlay projects before obtaining
approval from the Department of Finance pursuant to specified
procedures. Under existing law, if the California State University
plans to use any of its support appropriation in the annual budget
for the subsequent fiscal year for certain capital expenditures or
for certain capital outlay projects, the California State University
is required to simultaneously submit, on or before September 1, 10
months before the commencement of that fiscal year, a report to
specified committees of the Legislature and the Department of
Finance.
This bill instead would require the California State University,
if the university plans to use any authorized moneys for the
subsequent fiscal year for those capital expenditures or capital
outlay projects, to simultaneously submit, on or before September 1,
10 months before the commencement of that fiscal year, a preliminary
report to specified committees and subcommittees of the Legislature
and the Department of Finance. The bill would require the California
State University to submit a final report, on or before December 1,
to those same entities, as specified.
This bill would, commencing with the 2014-15 fiscal year,
authorize the California State University to use its support
appropriation in the annual budget for the capital expenditures and
capital outlay projects identified in the resolution approved by the
Trustees of the California State University on January 28, 2015,
titled "Approval to Issue Trustees of the California State
University, Systemwide Revenue Bonds and Related Debt Instruments for
Systemwide Infrastructure Improvement Projects (RFIN 01-15-04),"
thereby making an appropriation.
This bill would, commencing with the 2015-16 fiscal year,
authorize the California State University to use its support
appropriation in the annual budget for the capital expenditures and
capital outlay projects identified in the "2015-2016 CSU/State Funded
Capital Outlay Program" referenced in the resolution approved by the
Trustees of the California State University on November 13, 2014,
titled "Approval of the 2015-2016 Capital Outlay Program and the
2015-2016 through 2019-2020 Five-Year Capital Improvement Program
(RCPBG 11-14-17)."
(17) Under existing law, the University of California is
established, under the administration of the Regents of the
University of California, as one of the segments of public
postsecondary education in this state. The University of California
provides instruction to students at campuses in Berkeley, Davis,
Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco,
Santa Barbara, and Santa Cruz.
Existing law authorizes the University of California to issue
revenue bonds, secured by a specified pledge of revenues. Existing
law authorizes the University of California to pledge its annual
General Fund support appropriation, less certain amounts, to secure
the payment of its general revenue bonds or commercial paper
associated with the general revenue bond program. Existing law
authorizes the University of California to fund debt service for
capital expenditures, as defined, from its General Fund support
appropriation, as specified.
This bill would authorize the University of California to also
pledge its annual General Fund support appropriation to secure
payment for availability payments, as defined, lease payments,
installment payments, and other similar or related payments. The bill
would authorize the university to make availability payments, lease
payments, installment payments, and other similar or related payments
from its annual General Fund support appropriation, as specified.
The bill would, for capital expenditures related to the Merced 2020
Project, provide that the University of California may proceed with
capital expenditures or capital outlay projects only if all work
traditionally performed by persons with University of California
Service Unit (SX) job classifications is performed only by employees
of the University of California. The bill would also make conforming
changes.
(18) Existing law, the California Private Postsecondary Education
Act of 2009, provides, among other things, for student protections
and regulatory oversight of private postsecondary institutions in the
state. The act is enforced by the Bureau for Private Postsecondary
Education within the Department of Consumer Affairs. The act exempts
specified institutions, including an independent institution of
higher education that is accredited by the Accrediting Commission for
Senior Colleges and Universities, Western Association of Schools and
Colleges, or the Accrediting Commission for Community and Junior
Colleges, Western Association of Schools and Colleges, from its
provisions, and is repealed on January 1, 2017.
This bill would, among other things, authorize an independent
institution of higher education that is exempt from the act as
accredited by one of these accrediting agencies to execute a contract
with the bureau for the bureau to review and, as appropriate, act on
complaints concerning the institution.
(19) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program, establishes the Cal Grant A and B Entitlement awards,
the California Community College Transfer Cal Grant 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 the Cal Grant B Entitlement Program,
awards may be made for access costs, defined as living expenses and
expenses for transportation, supplies, and books, in an amount not to
exceed $1,551 annually, as adjusted in the annual Budget Act.
Existing law requires the Treasurer to certify the amount of
moneys available in an academic year from the College Access Tax
Credit Fund for distribution, and provides that an amount determined
by the Student Aid Commission is available for expenditure from this
fund, upon appropriation to the commission by the Legislature in the
annual Budget Act, for distribution to students to supplement Cal
Grant B access cost awards to bring those students' total annual
awards for access costs to not more than $5,000, and for the
commission's related administrative costs.
This bill would instead provide that the moneys deposited in the
College Access Tax Credit Fund would be continuously appropriated to
the commission for the purpose of making those awards.
(20) The Personal Income Tax Law and the Corporation Tax Law, for
taxable years beginning on or after January 1, 2014, and before
January 1, 2017, allow a credit equal to a certain percentage of a
contribution to the College Access Tax Credit Fund for specified
education purposes, as provided. Existing law specifies that the
aggregate amount of credit that may be allocated under both laws
shall not exceed $500,000,000 for each calendar year, as specified,
and requires the California Educational Facilities Authority to
perform certain duties with regard to allocating and certifying the
tax credits allowed under these provisions. Existing state
constitutional law governing insurance taxation imposes an annual tax
on the gross premiums of an insurer, as defined, doing business in
this state at specified rates.
This bill, for taxable years beginning on or after January 1,
2017, and before January 1, 2018, would establish similar credits
under the Personal Income Tax Law, the Corporation Tax Law, and the
law governing insurance taxation, which would allow a credit equal to
a certain percentage of a contribution to the College Access Tax
Credit Fund. The bill would limit the aggregate amount of these new
credits to be allocated from exceeding a total of $500,000,000 for
that year, as specified, and would require the California Educational
Facilities Authority to perform certain duties in order to allocate
and certify these new credits.
(21) The Personal Income Tax Law and the Corporation Tax Law
provide for an alternative minimum tax and provide that, except for
specified credits, no credit shall reduce the regular tax, as
defined, below the tentative minimum tax. Existing state
constitutional law prohibits the Legislature from making any gift, or
authorizing the making of any gift, of any public money or thing of
value to any individual, municipal or other corporation.
This bill, for taxable years beginning on or after January 1,
2014, would add to those specified credits, the credit for
contributions to the College Access Tax Credit Fund and would make
legislative findings and declarations regarding the statewide public
purpose served by these provisions.
(22) Existing law establishes the California Community Colleges,
under the administration of the Board of Governors of the California
Community Colleges, the California State University, under the
administration of the Trustees of the California State University,
and the University of California, under the administration of the
Regents of the University of California, as the 3 segments of public
postsecondary education in this state. The Master Plan for Higher
Education in California, originally prepared in 1959, set forth,
among other things, the basic goals and functions of these segments.
This bill would require the Legislative Analyst's Office to
conduct a study, including specified analyses, to assess the need for
new campuses of the California State University or the University of
California. The bill would require these 2 segments to
provide data needed by the Legislative
Analyst's Office to meet the requirements of this bill upon that
office's request. The bill would require the Legislative Analyst's
Office to submit to the Legislature and the Department of Finance: a
report relating to the California State University and containing the
data and analysis required by the bill on or before January 1, 2017;
and a report relating to the University of California and containing
the data and analysis required by the bill on or before January 1,
2018.
(23) The Budget Act of 2012 appropriated $4,750,000 from the 2006
University Capital Outlay Bond Fund for a classroom and academic
office building on the campus of the University of California,
Merced. The Budget Act of 2013 authorized moneys appropriated to the
University of California from the General Fund to be used to fund the
construction phase of that classroom and academic office building.
This bill would authorize the University of California to use any
project savings from the 2012 appropriation referenced above for the
construction phase of the classroom and academic office building at
the University of California, Merced. The bill would also provide
that the unencumbered balance of the funds appropriated for that
building in the 2012 appropriation referenced above would be
available for encumbrance until June 30, 2016. These provisions would
constitute an appropriation.
(24) This bill would appropriate the sum of $48,000,000 from the
General Fund to the Chancellor of the California Community Colleges
for allocation to community college districts to provide funding for
specified purposes relating to facilities, hazardous substances
response, architectural barrier removal, seismic retrofit projects,
instructional equipment and library materials, and water conservation
projects, as specified. The bill would require the chancellor to
allocate funds to community college districts on the basis of actual
reported full-time equivalent students, except as provided. The bill
would authorize the chancellor to establish guidelines for the use of
the moneys allocated.
(25) Existing law authorizes the Board of Governors of the
California Community Colleges, in consultation with the California
State University and the University of California, to establish a
statewide baccalaureate degree pilot program at not more than 15
community college districts, with one baccalaureate degree program
each, to be determined by the Chancellor of the California Community
Colleges and approved by the board of governors.
This bill would appropriate the sum of $6,000,000 from the General
Fund to the Chancellor of the California Community Colleges for
allocation to community college districts to support the
implementation of the baccalaureate degree pilot program. The bill
would authorize the use of these funds to support professional
development activities.
(26) This bill would appropriate the sum of $1,000,000 from the
General Fund for use pursuant to legislation enacted in the first
year of the 2015-16 Regular Session of the Legislature related to a
study of those eligible for admission to the University of California
and the California State University.
(27) The Budget Act of 2014 made appropriations for the support of
state government for the 2014-15 fiscal year.
This bill would amend the Budget Act of 2014 by making an
additional appropriation of $23,000,000 from the General Fund for the
Awards for Innovation in Higher Education program.
(28) 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(29) 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, as specified.
(30) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8152 of the Education Code is amended to read:
8152. (a) The reimbursement rate shall be established in the
annual Budget Act and the rate shall be commonly applied to all
providers of instruction specified in subdivision (d).
(b) For purposes of this section, each hour of teaching time may
include up to 10 minutes of passing time and breaks.
(c) This section also applies to isolated apprentices, as defined
in Section 3074 of the Labor Code, for which alternative methods of
instruction are provided.
(d) The Chancellor of the California Community Colleges shall make
the reimbursements specified in this section for teaching time
provided by local educational agencies.
(e) The hours for related and supplemental instruction derived
from funds appropriated pursuant to subdivision (b) of Section 8150
shall be allocated by the Chancellor of California Community Colleges
directly to participating local educational agencies that contract
with apprenticeship programs pursuant to subdivision (f).
(f) Reimbursements may be made under this section for related and
supplemental instruction provided to indentured apprentices only if
the instruction is provided by a program approved by the Division of
Apprenticeship Standards of the Department of Industrial Relations in
accordance with Chapter 4 (commencing with Section 3070) of Division
3 of the Labor Code.
(g) The initial allocation of hours made pursuant to subdivision
(e) for related and supplemental instruction at the beginning of a
fiscal year, when multiplied by the hourly reimbursement rate, shall
equal 100 percent of the total appropriation for apprenticeships. The
Chancellor of the California Community Colleges shall notify
participating local educational agencies of the initial allocation
within 30 days of the enactment of the annual Budget Act.
(h) If funds remain from the appropriation pursuant to subdivision
(b) of Section 8150, the Chancellor of the California Community
Colleges shall reimburse local educational agencies for unfunded
related and supplemental instruction hours from any of the three
previous fiscal years, in the following order:
(1) Reported related and supplemental instruction hours, as
described in subdivision (b) of Section 8154, that were paid at a
rate less than the hourly rate specified in the Budget Act.
(2) Reported related and supplemental instruction hours that were
not reimbursed.
(i) The Chancellor of the California Community Colleges shall
report to the California Apprenticeship Council within 30 days of
each apportionment period the following information for each
participating local educational agency:
(1) The number of related and supplemental instruction hours
allocated to the local educational agency.
(2) The number of related and supplemental instruction hours
reported by the local educational agency.
(3) At the final or recalculation apportionment, the hourly rate
paid for related and supplemental instruction hours reported above
the local educational agency's initial allocation of hours for
related and supplemental instruction.
SEC. 2. Section 52334.7 is added to the Education Code, to read:
52334.7. (a) The Superintendent may certify, by name, any
regional occupational center or program, county office of education,
or adult education program established pursuant to Section 52501 that
provides a program of training to prepare adult students for gainful
employment in a recognized occupation, to legally authorize the
center, program, or office to provide an educational program beyond
secondary education, including an education program that leads to a
degree or certificate, for purposes of the center, program, or office
participating in any student financial assistance program authorized
by Title IV of the federal Higher Education Act of 1965, as amended
(20 U.S.C. Sec. 1070 et seq.).
(b) A regional occupational center or program, county office of
education, or adult education program established pursuant to Section
52501 applying for certification pursuant to subdivision (a) shall
comply with all of the following:
(1) It shall admit as regular students to its program of training
only those students who meet one or more of the following
requirements:
(A) Have a high school diploma.
(B) Have the recognized equivalent of a high school diploma.
(C) Are beyond the age of compulsory school attendance.
(2) It shall provide an eligible program of training, as defined
in Section 668.8 of Title 34 of the Code of Federal Regulations, as
this section reads on July 1, 2015, to prepare students for gainful
employment in a recognized occupation.
(3) It shall be accredited or preaccredited.
(4) It shall have been in existence for at least two years as
described in subsection (b) of Section 600.6 of Title 34 of the Code
of Federal Regulations, as this section reads on July 1, 2015.
(5) It shall be an institution or site physically located in the
state.
(6) It shall agree to submit any dispute involving the final
denial, withdrawal, or termination of its accreditation to initial
arbitration before initiating any other legal action.
(7) It shall satisfy all applicable eligibility requirements
specified in federal rulemaking pursuant to Sections 600.6, 600.7,
and 600.9 of Title 34 of the Code of Federal Regulations, as these
sections read on July 1, 2015, other than the authorization provided
for in subdivision (a).
(8) It shall apply in writing to the Superintendent, as an
individual center, program, or office, to be considered for
certification pursuant to subdivision (a).
(c) Any person may file a complaint under the Uniform Complaint
Procedures, as set forth in Title 5 of the California Code of
Regulations, regarding an alleged violation by a local agency of
federal or state law or regulations governing adult education
programs established pursuant to Section 52501 or regional
occupational centers and programs.
(d) The Superintendent shall adopt regulations that authorize any
person to file a complaint under the Uniform Complaint Procedures, as
set forth in Title 5 of the California Code of Regulations,
regarding an alleged violation by a county office of education of
federal or state law or regulations governing that county office's
participation in any student financial assistance program authorized
by Title IV of the federal Higher Education Act of 1965, as amended
(20 U.S.C. Sec. 1070 et seq.).
(e) The Superintendent may decertify, for purposes of
participating in any student financial aid assistance program
authorized by Title IV of the federal Higher Education Act of 1965,
as amended (20 U.S.C. Sec. 1070 et seq.), a regional occupational
center or program, county office of education, or adult education
program established pursuant to Section 52501 previously certified in
accordance with subdivision (a) if the Superintendent determines
that the regional occupational center or program, county office of
education, or adult education program established pursuant to Section
52501 is no longer in compliance with the requirements outlined in
subdivision (b).
SEC. 3. Section 68075.7 is added to the Education Code, to read:
68075.7. Notwithstanding any other law:
(a) Effective for academic terms beginning after July 1, 2015, a
student enrolled at a campus of the California Community Colleges or
the California State University who meets all of the following
requirements shall be exempt from paying nonresident tuition or any
other fee that is exclusively applicable to nonresident students:
(1) The student resides in California.
(2) The student meets the definition of "covered individual," as
that term is defined in subsection (c) of Section 3679 of Title 38 of
the United States Code, as that provision read on July 1, 2015.
(3) The student is eligible for education benefits under either
the federal Montgomery GI Bill-Active Duty program (Chapter 30
(commencing with Section 3001) of Title 38 of the United States Code)
or the Post-9/11 GI Bill program (Chapter 33 (commencing with
Section 3301) of Title 38 of the United States Code), as each read on
July 1, 2015.
(b) After the expiration of the three-year period following
discharge or death as described in subsection (c) of Section 3679 of
Title 38 of the United States Code, a student who qualifies for an
exemption from paying nonresident tuition and other applicable fees
under subdivision (a) shall be deemed to maintain "covered individual"
status as long as the student remains continuously enrolled at a
campus, even if the student enrolls in multiple programs, and the
student shall continue to be exempt from paying nonresident tuition
and other fees that are exclusively applicable to nonresident
students. As used in this section, "continuously enrolled" means
enrolled for at least the fall and spring semesters of an academic
year, or for at least three of the quarters in an academic year for
an institution using the quarter system.
(c) The attendance of a community college student who is exempt
from paying nonresident tuition and other fees pursuant to this
section may be reported by the community college district of
attendance for apportionment purposes.
SEC. 4. Section 69431.7 of the Education Code is amended to read:
69431.7. (a) As used in this section, "fund" means the College
Access Tax Credit Fund created by Sections 17053.86 and 17053.87 of
the Revenue and Taxation Code.
(b) Any moneys allocated to the commission from the fund for
purposes of this section shall be in addition to, and are intended to
supplement, other moneys appropriated for the Cal Grant Program.
Upon the creation of the fund, and during its existence, the amount
of the Cal Grant B access award as established in the annual Budget
Act shall not be adjusted below the amount set forth in the Budget
Act of 2012.
(c) (1) The moneys allocated to the commission pursuant to
Sections 17053.86 and 17053.87 of the Revenue and Taxation Code shall
be available for the purpose of making awards to students in
accordance with this section.
(2) To the extent feasible, the commission shall make annual
disbursements from the moneys allocated to the commission to
supplement awards made for access costs under Article 3 (commencing
with Section 69435), Article 4 (commencing with Section 69436), and
Article 5 (commencing with Section 69437). The amount of the
supplemental award, when added to the amount of the award made for
access costs established by the annual Budget Act, shall not exceed
five thousand dollars ($5,000). An award under this section is
payable only to the extent that moneys are available from the fund.
The commission shall inform each recipient of an award under this
section that the award is for one academic year only, is not an
entitlement, and that future supplemental awards are subject to the
availability of moneys in the fund.
(d) If, after making supplemental awards pursuant to subdivision
(c), moneys remain in the fund, those moneys shall remain in the fund
for allocation in future fiscal years.
SEC. 5. Section 69432 of the Education Code is amended to read:
69432. (a) Cal Grant Program awards shall be known as "Cal Grant
A Entitlement Awards," "Cal Grant B Entitlement Awards," "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."
(b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act. Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act.
(c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the maximum
tuition award amounts for Cal Grant A and B awards for students
attending private for-profit and nonprofit postsecondary educational
institutions shall be as follows:
(A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.
(B) For the 2015-16 and 2016-17 award years, nine thousand
eighty-four dollars ($9,084) for new recipients attending private
nonprofit postsecondary educational institutions. For the 2017-18
award year and each award year thereafter, eight thousand fifty-six
dollars ($8,056) for new recipients attending private nonprofit
postsecondary educational institutions.
(2) The renewal award amount for a student whose initial award is
subject to a maximum award amount specified in this subdivision shall
be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.
(3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same maximum
tuition award amounts as are set forth in subparagraph (B) of
paragraph (1).
SEC. 6. Section 69437 of the Education Code is amended to read:
69437. (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, there shall be established the Competitive
Cal Grant A and B award program for students who did not receive a
Cal Grant A or B entitlement award pursuant to Article 2 (commencing
with Section 69434), Article 3 (commencing with Section 69435), or
Article 4 (commencing with Section 69436). Awards made under this
section are not entitlements. The submission of an application by a
student under this section shall not entitle that student to an
award. The selection of students under this article shall be
determined pursuant to subdivision (c) and other relevant criteria
established by the commission.
(b) Commencing with the 2015-16 academic year, a total of 25,750
Cal Grant A and B awards shall be granted annually under this article
on a competitive basis for applicants who meet the general
eligibility criteria established in Article 1 (commencing with
Section 69430) and the priorities established by the commission
pursuant to subdivision (c).
(1) Fifty percent of the awards referenced in this subdivision are
available to all students, including California community college
students, who meet the financial need and academic requirements
established pursuant to this article. A student enrolling at a
qualifying baccalaureate degree granting institution shall apply by
the March 2 deadline. A California community college student is
eligible to apply at the March 2 or the September 2 deadline.
(2) Fifty percent of the awards referenced in this subdivision are
reserved for students who will be enrolled at a California community
college. The commission shall establish a second application
deadline of September 2 for community college students to apply for
these awards effective with the fall term or semester of the 2001-02
academic year.
(3) If any awards are not distributed pursuant to paragraphs (1)
and (2) upon initial allocation of the awards under this article, the
commission shall make awards to as many eligible students as
possible, beginning with the students with the lowest expected family
contribution and highest academic merit, consistent with the
criteria adopted by the commission pursuant to subdivision (c), as
practicable without exceeding an annual cumulative total of 25,750
awards.
(c) (1) On or before February 1, 2001, acting pursuant to a public
hearing process that is consistent with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code), the
commission shall establish selection criteria for Cal Grant A and B
awards under the competitive program that give special consideration
to disadvantaged students, taking into consideration those financial,
educational, cultural, language, home, community, environmental, and
other conditions that hamper a student's access to, and ability to
persist in, postsecondary education programs.
(2) Additional consideration shall be given to both of the
following:
(A) Students pursuing Cal Grant B awards who reestablish their
grade point averages.
(B) Students who did not receive awards pursuant to Article 2
(commencing with Section 69434), Article 3 (commencing with Section
69435), or Article 4 (commencing with Section 69436).
(d) All other students who meet the eligibility requirements
pursuant to Article 1 (commencing with Section 69430) are eligible to
compete for an award pursuant to this article.
SEC. 7. Section 70022 of the Education Code is amended to read:
70022. (a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University or
the University of California who meets the requirements of paragraph
(2) is eligible for a scholarship award as described in that
paragraph.
(2) Each academic year, except as provided in paragraphs (3) and
(4), an eligible student shall receive a scholarship award in an
amount that, combined with other federal, state, or institutionally
administered student grants or fee waivers received by an eligible
student, is up to 40 percent of the amount charged to that student in
that academic year for mandatory systemwide tuition and fees, if all
of the following requirements are met, to the satisfaction of the
commission, each academic year:
(A) The student's annual household income does not exceed one
hundred fifty thousand dollars ($150,000). For awards distributed for
the 2016-17 academic year and subsequent academic years, the
commission shall annually adjust the maximum income level set under
this subparagraph in accordance with the percentage changes in the
cost of living within the meaning of paragraph (1) of subdivision (e)
of Section 8 of Article XIII B of the California Constitution. For
purposes of this article, annual household income shall be calculated
in a manner that is consistent with the requirements applicable to
the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter
1.7 (commencing with Section 69430)) and Section 69506.
(B) Beginning with awards distributed in the 2015-16 academic
year, the student's household asset level shall not exceed one
hundred fifty thousand dollars ($150,000). For awards distributed in
the 2016-17 academic year and subsequent academic years, the
commission shall annually adjust the maximum household asset level
set under this subparagraph in accordance with the percentage changes
in the cost of living within the meaning of paragraph (1) of
subdivision (e) of Section 8 of Article XIII B of the California
Constitution. For purposes of this article, student's household asset
level shall be calculated in a manner that is consistent with the
requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos
Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and
Section 69506.
(C) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student who is
exempt from nonresident tuition under Section 68130.5 shall not be
required to satisfy the requirements of subdivision (a) of Section
69433.9.
(D) The student is exempt from paying nonresident tuition.
(E) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. The FAFSA must be submitted
or postmarked by no later than March 2. If the student is not able to
complete a FAFSA application, the student may satisfy this
subparagraph by submitting an application determined by the
commission to be equivalent to the FAFSA application for purposes of
this article by March 2.
(F) The student makes a timely application or applications for all
other federal, state, or institutionally administered grants or fee
waivers for which the student is eligible.
(G) The student maintains satisfactory academic progress in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to
subdivision (m) of Section 69432.7.
(H) The student is pursuing his or her first undergraduate
baccalaureate degree or has completed a baccalaureate degree and has
been admitted to, and is enrolled in, a program of professional
teacher preparation at an institution approved by the California
Commission on Teacher Credentialing.
(I) The student is enrolled at least part time.
(3) (A) The percentage specified in paragraph (2) shall be reduced
by 0.6-percent increments per one thousand dollars ($1,000) of
annual household income in excess of one hundred thousand dollars
($100,000), to a minimum 10 percent of mandatory systemwide tuition
and fees for an academic year, provided that no scholarship award
shall be provided to a student with an annual household income
exceeding one hundred fifty thousand dollars ($150,000). This
reduction shall be in addition to any reduction required by
subdivision (e) of Section 70023.
(B) Notwithstanding subparagraph (A), for any student who
qualifies for a scholarship award of at least one dollar ($1), the
minimum annual scholarship amount for full-time enrollment is ninety
dollars ($90).
(4) For the 2014-15, 2015-16, and 2016-17 academic years, the
maximum amount of a student's scholarship award shall be 35 percent,
50 percent, and 75 percent, respectively, of the total scholarship
award amount that the student would otherwise be eligible to receive.
(b) In order for students enrolled in their respective segments to
remain eligible to receive a scholarship award under this article,
the University of California and the California State University
shall not supplant their respective institutional need-based grants
with the funds provided for scholarships under this article, and
shall maintain their funding amounts at a level that, at a minimum,
is equal to the level maintained for undergraduate students during
the 2013-14 academic year.
(c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1.
(d) A Middle Class Scholarship Program award authorized pursuant
to this article shall be defined as a full-time equivalent grant. An
award to a part-time student shall be a fraction of a full-time
grant, as determined by the proportionate amount charged for
systemwide tuition and fees. A part-time student shall not be
discriminated against in the selection of Middle Class Scholarship
Program awards. For purposes of this section, "full-time student" and
"part-time student" have the same meaning as specified in
subdivision (f) of Section 69432.7.
SEC. 8. Section 70022.5 is added to the Education Code, to read:
70022.5. (a) A scholarship award under this article may be
renewed for a total of the equivalent of four years of full-time
attendance in an undergraduate program. Commencing with the 2016-17
academic year, the total number of years of eligibility for grants
pursuant to this article shall be based on the student's educational
level in his or her course of study as designated by the institution
of attendance when the recipient initially receives payment for a
grant.
(b) For a student enrolled in an institutionally prescribed
five-year undergraduate program, a scholarship award under this
article may be renewed for a total of up to five academic years of
attendance as long as the student meets the requirements of Section
70022.
(c) A recipient of a scholarship award under this article who has
completed a baccalaureate degree, and who has been admitted to and is
enrolled in a program of professional teacher preparation at an
institution approved by the Commission on Teacher Credentialing, is
eligible for, but not entitled to, renewal of the scholarship award
for an additional academic year of full-time attendance as long as
the student meets the requirements of Section 70022.
SEC. 9. Section 70023 of the Education Code is amended to read:
70023. (a) For each academic year, the commission shall determine
an amount sufficient, when combined with other federal, state, or
institutionally administered student grants or fee waivers received
by eligible students from other sources, to provide scholarships to
eligible students in the amounts described in paragraphs (2) and (3)
of subdivision (a) of Section 70022. The University of California and
the California State University shall provide the commission with
any financial aid data that are necessary for the determination of
these amounts.
(b) The commission shall annually determine if the amounts
appropriated under this section in each fiscal year are sufficient to
cover the costs of the scholarships as projected to be awarded
pursuant to the program. If those amounts are not sufficient for this
purpose, the scholarships shall be reduced proportionately by an
equal percentage for all recipients of scholarships under this
article.
(c) The commission may adopt regulations necessary to carry out
the purposes of this article under subdivision (b) as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of the Administrative Procedure Act, including Section
11349.6 of the Government Code, the adoption of those regulations
shall be deemed to be an emergency and necessary for the immediate
preservation of the public peace, health and safety, or general
welfare, notwithstanding subdivision (e) of Section 11346.1 of the
Government Code. Notwithstanding subdivision (e) of Section 11346.1
of the Government Code, any regulation adopted pursuant to this
section shall not remain in effect more than 180 days unless the
commission complies with all provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, as required by subdivision (e) of Section 11346.1 of
the Government Code.
(d) The unencumbered balance, as of June 30 of each fiscal year,
of the amount appropriated from the Middle Class Scholarship Fund
pursuant to paragraph (1) of subdivision (e) shall revert to the
General Fund.
(e) (1) Upon order of the Director of Finance, the following
amounts shall be transferred from the General Fund to the Middle
Class Scholarship Fund, and are hereby appropriated to the commission
for allocation pursuant to this article:
(A) For the 2014-15 fiscal year, one hundred seven million dollars
($107,000,000).
(B) For the 2015-16 fiscal year, eighty-two million dollars
($82,000,000).
(C) For the 2016-17 fiscal year, one hundred sixteen million
dollars ($116,000,000).
(D) For the 2017-18 fiscal year and for each fiscal year
thereafter, one hundred fifty-nine million dollars ($159,000,000).
(2) An annual appropriation to the commission is hereby
established in the amounts and for the fiscal years described in
paragraph (1) to carry out the purposes of this section and Section
70022.
(3) It is the intent of the Legislature that any savings realized
from changes made to the allocations under this subdivision by a bill
providing for appropriations related to the Budget Bill for the
2015-16 fiscal year shall be used to support higher education.
(4) The funds transferred and appropriated pursuant to paragraph
(1) shall only be available for encumbrance in the fiscal year in
which they are transferred, and the General Fund shall have no
liability or any obligation beyond the transfers explicitly
authorized in paragraph (1) unless a subsequent transfer or
allocation is required pursuant to statute.
(5) In any fiscal year, additional appropriations may be enacted
pursuant to statute to carry out the purposes of this article.
(6) (A) Beginning with the Governor's Budget proposal for the
2014-15 fiscal year, and in the Governor's Budget for each fiscal
year thereafter, the Department of Finance shall include a fund
condition statement for the Middle Class Scholarship Fund for the
fiscal year of the proposed budget and the two immediately preceding
fiscal years prepared in accordance with existing law.
(B) Upon order of the Director of Finance and commencing with the
2013-14 fiscal year, if the May Revision projects a budget deficit
for the next fiscal year, the amount specified in paragraph (1) for
the fiscal year for which the budget deficit is projected may be
reduced by up to 33 percent.
(f) Subject to an appropriation in the annual Budget Act for its
purposes, the commission may begin implementation of, and establish
outreach services relating to, this article.
SEC. 10. Section 79148 of the Education Code is amended to read:
79148. To the extent that sufficient federal funds and other
resources are available, the Division of Apprenticeship Standards of
the Department of Industrial Relations, in partnership with the
California Community Colleges Chancellor's Office, shall develop and
implement innovative apprenticeship training demonstration projects
in high-growth industries in emerging and transitioning occupations
that meet local labor market needs and that are validated by current
labor market data.
SEC. 11. Section 79149.3 of the Education Code is amended to read:
79149.3. (a) The reimbursement rate shall be established in the
annual Budget Act and the rate shall be commonly applied to all
providers of instruction specified in subdivision (d).
(b) For purposes of this section, each hour of teaching time may
include up to 10 minutes of passing time and breaks.
(c) This section also applies to isolated apprentices, as defined
in Section 3074 of the Labor Code, for which alternative methods of
instruction are provided.
(d) The Chancellor of the California Community Colleges shall make
the reimbursements specified in this section for teaching time
provided by community colleges.
(e) The hours for related and supplemental instruction derived
from funds appropriated pursuant to subdivision (b) of Section 79149
shall be allocated by the Chancellor of the California Community
Colleges directly to participating community colleges that contract
with apprenticeship programs pursuant to subdivision (f).
(f) Reimbursements may be made under this section for related and
supplemental instruction provided to indentured apprentices only if
the instruction is provided by a program approved by the Division of
Apprenticeship Standards of the Department of Industrial Relations in
accordance with Chapter 4 (commencing with Section 3070) of Division
3 of the Labor Code.
(g) The initial allocation of hours for related and supplemental
instruction pursuant to subdivision (e) at the beginning of any
fiscal year when multiplied by the hourly rate established in the
Budget Act for that year shall equal 100 percent of total
appropriation for apprenticeships. The Chancellor of the California
Community Colleges shall notify participating community colleges of
the initial allocation within 30 days of the enactment of the annual
Budget Act.
(h) If funds remain from the appropriation pursuant to subdivision
(b) of Section 79149, the Chancellor of the California Community
Colleges shall reimburse community colleges for unfunded related and
supplemental instruction hours from any of the three previous fiscal
years, in the following order:
(1) Reported related and supplemental instruction hours as
described in subdivision (b) of Section 79149.5 that were paid at a
rate less than the hourly rate specified in the Budget Act.
(2) Reported related and supplemental instruction hours that were
not reimbursed.
(i) The Chancellor of the California Community Colleges shall
report to the California Apprenticeship Council within 30 days of
each apportionment period the following information for each
participating community college:
(1) The number of related and supplemental instruction hours
allocated to the community college.
(2) The number of related and supplemental instruction hours
reported by the community college.
(3) At the final or recalculation apportionment, the hourly rate
paid for related and supplemental instruction hours reported above
the community college's initial allocation of hours for related and
supplemental instruction.
SEC. 12. Article 8 (commencing with Section 79420) is added to
Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code,
to read:
Article 8. Foster Care Education Program
79420. Funds appropriated to the Board of Governors of the
California Community Colleges for the Foster Care Education Program
shall be used for foster parent and relative/kinship care provider
education in accordance with the following provisions:
(a) The Chancellor of the California Community Colleges shall
allocate these funds exclusively for foster parent and
relative/kinship care provider education and training, as specified
by the chancellor, in consultation with an advisory committee that
includes foster parents, representatives of statewide foster parent
organizations, parent and relative/kinship care providers, and
representatives of the State Department of Social Services.
(b) If a community college district accepts funds for this
program, the district shall comply with all reporting requirements,
guidelines, and other conditions for receipt of those funds
established by the chancellor.
(c) Each college receiving funds for this program shall have a
plan for foster parent and relative/kinship care provider education
that includes the provision of training to facilitate the development
of foster family homes, small family homes, and relative/kinship
homes that care for no more than six children who have special
mental, emotional, developmental, or physical needs.
(d) The State Department of Social Services shall facilitate the
participation of county welfare departments in the Foster Care
Education Program.
SEC. 13. Section 84044 is added to the Education Code, to read:
84044. (a) No later than December 31 of each fiscal year, the
Chancellor of the California Community Colleges shall submit reports
to the Department of Finance and the Legislature on the use of funds
appropriated in the Budget Act for the prior fiscal year for the
following purposes:
(1) The Student Success for Basic Skills Students program,
including any outcomes associated with the use of funds.
(2) The Student Financial Aid Administration program, including
the distribution of the funds, specific uses of the funds, strategies
employed to reach low-income and disadvantaged students potentially
eligible for financial aid, the extent to which community college
districts were successful in increasing the number of students
accessing financial aid, and the impact on student enrollment.
(3) The technical assistance provided to community college
districts pursuant to the Student Success and Support Program.
(4) The Telecommunications and Technology Infrastructure program,
including summaries of allocations and expenditures by program and by
community college district.
(b) Reports to the Legislature pursuant to this section shall be
submitted pursuant to Section 9795 of the Government Code.
SEC. 14. Section 84750.5 of the Education Code is amended to read:
84750.5. (a) The board of governors, in accordance with the
statewide requirements contained in paragraphs (1) to (9), inclusive,
of subdivision (d), 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 purposes 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.
(b) In developing the criteria and standards, the board of
governors shall utilize and strongly consider the recommendations and
work product of the "System Office Recommendations Based on the
Report of the Work Group on Community College Finance" that was
adopted by the board at its meeting of March 7, 2005. The board of
governors shall complete the development of these criteria and
standards, accompanied by the necessary procedures, processes, and
formulas for utilizing its criteria and standards, by March 1, 2007,
and shall submit on or before that date a report on these items to
the Legislature and the Governor.
(c) (1) It is the intent of the Legislature in enacting this
section to improve the equity and predictability of general
apportionment and growth funding for community college districts in
order that the districts may more readily plan and implement
instruction and related programs, more readily serve students
according to the policies of the state's master plan for higher
education, and enhance the quality of instruction and related
services for students.
(2) It is the intent of the Legislature to determine the amounts
to be appropriated for the purposes of this section through the
annual Budget Act. Nothing in this section shall be construed as
limiting the authority either of the Governor to propose, or the
Legislature to approve, appropriations for California Community
Colleges programs or purposes.
(d) The board of governors shall develop the criteria and
standards within the following statewide minimum requirements:
(1) The calculations of each community college district's revenue
level for each fiscal year shall be based on the level of general
apportionment revenues (state and local) the district received for
the prior year plus any amount attributed to a deficit from the
adopted standards to be developed pursuant to this section, with
revenue adjustments being made for increases or decreases in
full-time equivalent students (FTES), for equalization of funding per
credit FTES, for necessary alignment of funding per FTES between
credit and noncredit programs, for inflation, and for other purposes
authorized by law.
(2) Commencing with the 2006-07 fiscal year, the funding mechanism
developed pursuant to this section shall recognize the need for
community college districts to receive an annual allocation based on
the number of colleges and comprehensive centers in the district. In
addition to this basic allocation, the marginal amount of credit
revenue allocated per FTES shall be funded at a rate not less than
four thousand three hundred sixty-seven dollars ($4,367), as adjusted
for the change in the cost-of-living in subsequent annual budget
acts.
(A) To the extent that the Budget Act of 2006 contains an
appropriation of one hundred fifty-nine million four hundred
thirty-eight thousand dollars ($159,438,000) for community college
equalization, the Legislature finds and declares that community
college equalization for credit FTES has been effectively
accomplished as of March 31, 2007.
(B) The chancellor shall develop criteria for the allocation of
one-time grants for those districts that would have qualified for
more equalization under prior law than pursuant to this section and
the Budget Act of 2006, and for those districts that would have
qualified for more funding under a proposed rural college access
grant than pursuant to this section and the Budget Act of 2006, as
determined by the chancellor. Appropriations for the one-time grants
shall be provided pursuant to paragraph (24) of subdivision (a) of
Section 43 of Chapter 79 of the Statutes of 2006.
(3) Noncredit instruction shall be funded at a uniform rate of two
thousand six hundred twenty-six dollars ($2,626) per FTES, as
adjusted for the change in the cost of living provided in subsequent
annual budget acts.
(4) Funding for instruction in career development and college
preparation, as authorized pursuant to Section 84760.5, shall be
provided as follows:
(A) (i) Beginning in the 2006-07 fiscal year, career development
and college preparation FTES may be funded at a rate of three
thousand ninety-two dollars ($3,092) per FTES for courses in programs
that conform to the requirements of Section 84760.5. This rate shall
be adjusted for the change in the cost of living or as otherwise
provided in subsequent annual budget acts.
(ii) Beginning in the 2015-16 fiscal year, career development and
college preparation FTES shall be funded at the same level as the
credit rate specified in paragraph (2). This rate shall be adjusted
for the change in the cost of living or as otherwise provided in
subsequent annual budget acts.
(iii) The Legislative Analyst shall report to the Legislature on
or before March 1, 2017, regarding the change in funding specified in
clause (ii), including whether community colleges offered additional
classes or programs related to career development or college
preparation, and whether there was any change in FTES.
(iv) (I) The requirement for submitting a report imposed under
clause (iii) is inoperative on March 30, 2019, pursuant to Section
10231.5 of the Government Code.
(II) A report submitted pursuant to clause (iii) shall be
submitted in compliance with Section 9795 of the Government Code.
(B) Changes in career development and college preparation FTES
shall result in adjustments to revenues as follows:
(i) Increases in career development and college preparation FTES
shall result in an increase in revenues in the year of the increase
and at the average rate per career development and college
preparation FTES, including any cost-of-living adjustment authorized
by statute or by the annual Budget Act.
(ii) Decreases in career development and college preparation FTES
shall result in a revenue reduction in the year following the
decrease at the average rate per career development and college
preparation FTES.
(5) Except as otherwise provided by statute, current categorical
programs providing direct services to students, including extended
opportunity programs and services, and disabled students 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.
(6) For credit and noncredit instruction, changes in FTES shall
result in adjustments in district revenues as follows:
(A) Increases in FTES shall result in an increase in revenues in
the year of the increase and at the amount per FTES provided for in
paragraph (2) or (3), as appropriate, including any cost-of-living
adjustment authorized by statute or by the annual Budget Act.
(B) Decreases in FTES shall result in revenue reductions beginning
in the year following the initial year of decrease in FTES, and at
the district's marginal funding per FTES.
(C) Districts shall be entitled to the restoration of any
reductions in apportionment revenue due to decreases in FTES during
the three years following the initial year of decrease in FTES if
there is a subsequent increase in FTES.
(7) Revenue adjustments shall be made to reflect cost changes,
using the same inflation adjustment as required for school districts
pursuant to paragraph (2) of subdivision (d) of Section 42238.02.
These revenue adjustments shall be made to the college and center
basic allocations, credit and noncredit FTES funding rates, and
career development and college preparation FTES funding rates.
(8) The statewide requested increase in budgeted workload FTES
shall be based, at a minimum, on the sum of the following
computations:
(A) Determination of an equally weighted average of the rate of
change in the California population of persons between the ages of 19
and 24 and the rate of change in the California population of
persons between the ages of 25 and 65, both as determined by the
Department of Finance's Demographic Research Unit as determined for
the preceding fiscal year.
(B) To the extent the California unemployment rate exceeds 5
percent for the most recently completed fiscal year, that positive
difference shall be added to the rate computed in subparagraph (A).
In no event shall that positive difference exceed 2 percent.
(C) The chancellor may also add to the amounts calculated pursuant
to subparagraphs (A) and (B) the number of FTES in the areas of
transfer, vocational education, and basic skills that were unfunded
in the current fiscal year. For this purpose, the following
computation shall be determined for each district, and a statewide
total shall be calculated:
(i) Establish the base level of FTES earned in the prior fiscal
year for transfer courses consisting of courses meeting the
California State University breadth or Intersegmental General
Education Transfer Curriculum requirements or major course
prerequisites accepted by the University of California or the
California State University.
(ii) Establish the base level of FTES earned in the prior fiscal
year for vocational education courses consisting of courses defined
by the chancellor's office Student Accountability Model codes A and B
that are consistent with the courses used for measuring success in
this program area under the accountability system established
pursuant to Section 84754.5.
(iii) Establish the base level of FTES in the prior fiscal year
for basic skills courses, both credit and noncredit.
(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.
(v) Multiply the result of the calculation made under clause (iv)
by one plus the district's funded growth rate in the current fiscal
year. This figure shall represent the maintenance of effort level for
the budget year.
(vi) FTES in transfer, vocational education, and basic skills that
are in excess of the total calculated pursuant to clause (v), shall
be considered in excess of the maintenance of effort level, and shall
be eligible for overcap growth funding if the district exceeds its
overall funded FTES.
(vii) In no event shall the amount calculated pursuant to clause
(vi) exceed the total unfunded FTES for that fiscal year. To the
extent the computation specified in subdivision (c) requires the
reporting of additional data by community college districts, that
reporting shall be a condition of the receipt of apportionment for
growth pursuant to this section and those funds shall be available to
offset any and all costs of providing the data.
(9) 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
district governing boards to expend the allocated revenues in
specified categories of operation or according to the workload
measures developed by the board of governors.
(e) (1) The Chancellor of the Community Colleges shall develop,
and the board of governors shall adopt, a revised apportionment
growth formula for use commencing with the 2015-16 fiscal year. The
chancellor shall allocate apportionments pursuant to the revised
formula only after the revised formula, and any formulas for
adjustment pursuant to paragraph (2), have been adopted by the board
of governors. The revised apportionment growth formula shall support
the primary missions of the segment, and shall be based on each
community's need for access to the community colleges, as determined
by local demographics. In developing the revised formula, the
chancellor shall consider multiple factors in determining need;
however, the primary factors shall be:
(A) (i) The number of persons under 25 years of age without a
college degree, within a community college district's boundaries, and
the number of persons 25 to 64 years of age, inclusive, without a
college degree, within a community college district's boundaries.
(ii) Notwithstanding clause (i), the chancellor may use
alternative age ranges depending on the availability of data.
(B) The number of persons who are unemployed, have limited English
skills, who are in poverty, or who exhibit other signs of being
disadvantaged, as determined by the chancellor, within a community
college district's boundaries.
(2) Beginning with the 2016-17 fiscal year, the chancellor shall
adjust upward the need determination based on each community college'
s effectiveness in serving residents of neighborhoods, within or
outside of the community college district's boundaries, that exhibit
the highest levels of need in the state.
(3) The chancellor shall calculate each community college district'
s proportionate share of the statewide need for access to the
community colleges based on the application of this formula described
in paragraph (1), as adjusted pursuant to paragraph (2).
(4) The chancellor shall calculate the difference between each
community college district's proportionate share of the statewide
need for access to the community colleges, as calculated pursuant to
paragraph (3), and its current proportionate share of statewide
enrollment in the community colleges.
(5) (A) Until a community college district reaches its highest
level of apportionment revenues previously received, its
apportionment revenues shall be eligible to increase by the lesser of
1 percent of its current apportionment base, or one-half of the
statewide growth allocation on an proportionate basis, regardless of
need.
(B) After a community college district reaches its highest level
of apportionment revenues previously received, it shall be eligible
to increase its apportionment revenues by the lesser of one-half of 1
percent of its current apportionment base, or one-quarter of the
statewide growth allocation on an proportionate basis, regardless of
its need.
(6) The remainder of the apportionment growth funding shall be
allocated to allow each community college district to grow its
apportionment revenues based on its relative share of the difference
between the amounts calculated in paragraph (4), up to a maximum of
its apportionment base for the preceding fiscal year appropriate to
ensure that community college district is advancing the primary
missions of the segment. The maximum established by the chancellor
shall not be less than 5 percent nor greater than 10 percent of a
community college district's apportionment base for the preceding
fiscal year.
(7) Unless otherwise agreed upon by the board of governors,
apportionment reductions shall be allocated proportionally based on
the most recent levels of apportionment revenues.
(8) (A) It is the intent of the Legislature, consistent with
direction provided in the 2014-15 Budget Act, that apportionment
growth funding be expended for purposes of increasing the number of
FTES in courses or programs that support the primary missions of the
segment.
(B) (i) Notwithstanding Section 10231.5 of the Government Code, on
or before October 15, 2015, and each year thereafter, the chancellor
shall report to the Legislature 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.
(ii) A report submitted to the Legislature pursuant to clause (i)
shall be submitted in compliance with Section 9795 of the Government
Code.
(C) For purposes of this section, "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.
(f) (1) It is the intent of the Legislature to allow for changes
to the criteria and standards developed pursuant to subdivisions (a)
to (d), inclusive, in order to recognize increased operating costs
and to improve instruction.
(2) (A) If the annual budget act identifies funds appropriated
specifically for the purposes of this subdivision, the chancellor
shall adjust the budget request formula to allocate those funds
without altering of any adjustments described in subdivision (d). At
least 30 days before allocating any state general apportionment
revenues using a budget request formula revised pursuant to this
subdivision, the chancellor shall submit to the Department of Finance
and the Legislature a description of the specific adjustments made
to the budget request formula.
(B) A report to the Legislature pursuant to subparagraph (A) shall
be submitted in compliance with Section 9795 of the Government Code.
SEC. 15. Section 84751.6 is added to the Education Code, to read:
84751.6. (a) (1) On or before June 30 of each fiscal year, an
amount to be determined by the Director of Finance shall be
appropriated from the General Fund to the Board of Governors of the
California Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act for that fiscal
year.
(2) The funds appropriated pursuant to paragraph (1) shall only be
available to the extent that revenues distributed to community
college districts pursuant to Sections 34177, 34179.5, 34179.6, and
34188 of the Health and Safety Code are less than the estimated
amount reflected in the Budget Act for that fiscal year, as
determined by the Director of Finance.
(b) On or before June 30 of each fiscal year,
the Director of Finance shall determine if the revenues distributed
to community college districts pursuant to Sections 34177, 34179.5,
34179.6, and 34188 of the Health and Safety Code exceed the estimated
amount reflected in the Budget Act for that fiscal year and shall
reduce Schedule (1) of Item 6870-101-0001 of Section 2.00 of the
Budget Act for that fiscal year by the amount of that excess.
(c) In making the determinations pursuant to subdivisions (a) and
(b), the Director of Finance shall consider any other local property
tax revenues and student fee revenues collected in amounts greater
than or less than the estimated amounts reflected in the Budget Act
for that fiscal year.
(d) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee of his or her intent to notify the
Controller of the necessity to take action pursuant to either
subdivision (a) or subdivision (b), and shall report either the
amount to be appropriated pursuant to subdivision (a) or the amount
to be reduced pursuant to subdivision (b).
(e) The Controller shall make funds appropriated pursuant to
subdivision (a) available not sooner than five days after
notification by the Director of Finance. The Chancellor of the
California Community Colleges shall work with the Controller to
allocate these funds to community college districts as soon as
practicable.
(f) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for that 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 that fiscal year.
SEC. 16. Section 84751.7 is added to the Education Code, to read:
84751.7. (a) (1) On or before June 30 of each fiscal year, an
amount to be determined by the Director of Finance shall be
appropriated from the General Fund to the Board of Governors of the
California Community Colleges in augmentation of Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act for that fiscal
year.
(2) The funds appropriated pursuant to paragraph (1) shall only be
available to the extent that offsetting revenues distributed to
community college districts pursuant to subparagraph (A) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution are less than the estimated amount reflected
in the Budget Act for that fiscal year, as determined by the Director
of Finance.
(b) On or before June 30 of each fiscal year, the Director of
Finance shall determine if the offsetting revenues distributed to
community college districts pursuant to subparagraph (A) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution exceed the estimated amount reflected in the
Budget Act for that fiscal year and shall reduce Schedule (1) of Item
6870-101-0001 of Section 2.00 of the Budget Act for that fiscal year
by the amount of that excess.
(c) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee of his or her intent to notify the
Controller of the necessity to take action pursuant to either
subdivision (a) or subdivision (b), and shall report either the
amount to be appropriated pursuant to subdivision (a) or the amount
to be reduced pursuant to subdivision (b).
(d) The Controller shall make funds appropriated pursuant to
subdivision (a) available not sooner than five days after
notification by the Director of Finance. The Chancellor of the
California Community Colleges shall work with the Controller to
allocate these funds to community college districts as soon as
practicable.
(e) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for that 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 that fiscal year.
SEC. 17. Section 88540 of the Education Code is repealed.
SEC. 18. Section 88540 is added to the Education Code, to read:
88540. This part shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 19. Part 53 (commencing with Section 88700) is added to
Division 7 of Title 3 of the Education Code, to read:
PART 53. Basic Skills Partnership Pilot Program
88700. (a) It is the intent of the state that school districts,
community college districts, the California State University, and the
University of California coordinate their efforts to provide
instruction in basic skills in an efficient and effective way.
(b) The Chancellor of the California Community Colleges shall
solicit applications from community college districts seeking funding
for plans to provide instruction in basic skills to students
enrolled, or who will enroll, at California State University
campuses. As used in this section, "chancellor" means the Chancellor
of the California Community Colleges.
(c) A community college district that chooses to apply for a grant
under this section shall include the following components of its
plan in its application:
(1) A list of the community colleges and the California State
University campuses that will work jointly to develop effective
instruction in basic skills and provide instruction to focus on
students enrolled, or who will enroll, at California State University
campuses.
(2) A commitment from the California State University campuses
listed in paragraph (1) that these campuses will direct students to
instruction at community colleges.
(3) A narrative explaining the strategy for directing students to
instruction at community colleges and integrating this instruction
with programs at California State University campuses.
(4) A letter from each of the presidents of the California State
University campuses listed in the application pursuant to paragraph
(1) indicating support for the plan and identifying the fiscal impact
for his or her particular campus.
(5) A narrative describing any effective evidence-based
instructional strategies and practices the community colleges have
implemented for the delivery of basic skills instruction and any
efforts the community colleges have made to incorporate effective
evidence-based instructional strategies and practices within the
delivery of their basic skills instruction.
(6) A narrative describing how faculty was involved in the
development of the plan.
(7) A narrative describing if and how the community college
district intends to incorporate the use of student success data to
inform the delivery of its basic skills instruction.
(8) A narrative describing the measures the community colleges
listed pursuant to paragraph (1) will undertake to collaborate with
local school districts serving kindergarten and grades 1 to 12,
inclusive, to better articulate English and mathematics instruction
between high schools located in the community college district and
the community colleges and the California State University campuses
listed pursuant to paragraph (1).
(d) (1) The chancellor, in consultation with the Chancellor of the
California State University, shall award grants of two million
dollars ($2,000,000) each to five of the applicant community college
districts.
(2) The grants shall be awarded based on the projected success of
the applicant districts in maximizing the following factors, which
are listed below in order of decreasing priority:
(A) The number of students enrolled, or who will enroll, at
California State University campuses and who would benefit from
access to instruction in basic skills at the community colleges
participating in the plan.
(B) The number of California State University campuses
participating in the plan.
(C) The number of community college campuses participating in the
plan.
(D) The likelihood that the plan would be implemented effectively.
(E) The use of effective evidence-based instructional strategies
and practices the community colleges have implemented for the
delivery of basic skills instruction. Community college districts are
encouraged to align the delivery of basic skills instruction with
California State University campus programs that will accelerate the
progress of underprepared students toward college completion.
(e) (1) Upon awarding the grants, the chancellor shall allocate
one million dollars ($1,000,000) of the grant funds to each community
college district selected for a grant.
(2) The chancellor shall release the remainder of a grant amount
only after the community college district has submitted records
demonstrating that students enrolled, or planning to enroll, at
California State University campuses have accessed instruction in
basic skills at the community colleges pursuant to the plan.
Notwithstanding this reporting condition, the chancellor shall
release any amount of a grant that remains as of May 1, 2018, to the
community college district by June 30, 2018.
(f) As a condition of receiving a grant pursuant to this section,
a community college district shall provide all of the following
information to the chancellor by February 1, 2017:
(1) The number of students enrolled, or who will enroll, at
California State University campuses who were provided, or are being
provided, instruction by community colleges pursuant to the adopted
plan.
(2) The number of students who successfully completed basic skills
instruction at the community colleges, defined as demonstrating
competency on California State University assessments or successful
completion of appropriate college-level courses.
(3) The number of students provided instruction at the community
colleges who subsequently enrolled at a California State University
campus and demonstrated competency on California State University
assessments or successful completion of appropriate college-level
courses.
(4) To the extent available, first-year retention and success
rates at the California State University of students who received
basic skills instruction at the community colleges pursuant to the
plan.
(5) A qualitative description of the local successes or challenges
that community colleges encountered when partnering with California
State University campuses to provide instruction in basic skills to
students enrolled, or who will enroll, at those campuses.
(6) A narrative describing the use of effective evidence-based
practices by the community colleges to deliver basic skills
instruction to accelerate the progress of underprepared students
toward achieving postsecondary educational and career goals. This
narrative shall also include a description of the efforts of the
community colleges to implement or expand the use of effective
evidence-based practices to deliver basic skills instruction.
(7) A narrative describing the measures implemented by the
community college district to collaborate with local school districts
serving kindergarten and grades 1 to 12, inclusive, to better
articulate English and mathematics instruction between high schools
located in the community college district and the community colleges
and the California State University campuses listed pursuant to
paragraph (1) of subdivision (c).
(g) No later than April 1, 2017, and following consultation with
the Chancellor of the California State University, the chancellor
shall analyze the information provided under subdivision (f), and
report to the Legislature, the Legislative Analyst's Office, and the
Department of Finance on the effectiveness of the plans in delivering
instruction in basic skills to students enrolled, or who will
enroll, at California State University campuses. This report shall
also include a report on costs avoided by the California State
University, if any, and recommendations on expanded use of community
colleges to deliver basic skills instruction to California State
University students. A report to the Legislature pursuant to this
subdivision shall be submitted in compliance with Section 9795 of the
Government Code.
(h) The attendance of students enrolled in a basic skills course
pursuant to this section may be reported by a community college
district for apportionment purposes.
(i) The sum of ten million dollars ($10,000,000) is hereby
appropriated from the General Fund to the chancellor for allocation
to community college districts to establish a basic skills
partnership program at five community college districts in accordance
with this section.
(j) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (i) 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 2014-15 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 2014-15 fiscal year.
SEC. 20. Part 54 (commencing with Section 88800) is added to
Division 7 of Title 3 of the Education Code, to read:
PART 54. Community Colleges Basic Skills and Student Outcomes
Transformation Program
CHAPTER 1. GENERAL PROVISIONS
88800. A financial and professional development grant funding
program, administered by the Chancellor of the California Community
Colleges, is hereby established. The chancellor shall distribute
multiyear grants, upon appropriation by the Legislature, to the
governing boards of community college districts pursuant to
applications that satisfy the requirements of this part. Moneys
allocated pursuant to this program shall be expended for community
colleges within a district that receives a grant to adopt or expand
the use of evidence-based models of academic assessment and
placement, remediation, and student support that accelerate the
progress of underprepared students toward achieving postsecondary
educational and career goals.
88805. (a) (1) The governing board of a community college
district may apply for funds pursuant to this part for the purpose of
making more effective, evidence-based practices available to more
underprepared students who enroll at campuses of the California
Community Colleges. A community college within the district may
receive funds to implement these evidence-based practices for the
first time or to expand to additional students any evidence-based
practices that are in effect as of the date of the district's
application for funds.
(2) Community colleges may use funds allocated pursuant to this
part to support remedial education curriculum redesign, professional
development and release time for faculty, and support staff as
appropriate, and data collection and reporting.
(b) The evidence-based practices implemented or expanded pursuant
to funding received as specified in subdivision (a) shall include
basic skills improvement strategies that have demonstrated
effectiveness in accelerating the progress of underprepared students
toward, and increasing the number of underprepared students who
successfully achieve in a timely manner, one or both of the following
goals:
(1) Completing a college-level English or mathematics course, or
both, within a sequence of three or fewer courses after enrollment in
a community college, to prepare students for college-level work.
(2) Earning an industry-relevant college certificate or degree
within two years.
88810. (a) In order to receive a grant, the governing board of a
community college district shall demonstrate in its application for
funding, consistent with subdivision (b) of Section 88805, that the
community colleges that are to participate in the grant program will
redesign their curriculum, career pathways, assessment and placement
procedures, or any combination thereof, to implement, or
significantly expand the use or application of, two or more of the
following evidence-based practices and principles:
(1) Adopting placement tests or other student assessment
indicators and related policies that may include multiple measures of
student performance, including grades in high school courses,
especially overall grade point average, results from the common
assessment system, and input from counselors.
(2) Increasing the placement of students directly in gateway
English and mathematics courses that are transferable to the
University of California or the California State University and
career pathways, with remedial instruction integrated as appropriate
for underprepared students.
(3) Aligning content in remedial courses with the students'
programs of academic or vocational study to target students' actual
needs and increase relevance. This paragraph is intended to encourage
the development of remedial instruction focused on a student's
identified academic need informed by the student's intended course of
study.
(4) Contextualizing remedial instruction in foundational skills
for the industry cluster, pathways, or both, in which the student
seeks to advance.
(5) Providing proactive student support services that are
integrated with the instruction provided.
(6) Developing two- and three-course sequences, as appropriate,
for completion of a college-level English or mathematics course, or
both, for underprepared students, by either utilizing technology,
where appropriate, to enhance the adoption of the high impact
practices specified in paragraphs (1) to (5), inclusive, or
implementing other effective basic skills course strategies and
practices not specified in paragraphs (1) to (5), inclusive, subject
to the college providing evidence that substantiates the practice is
effective.
(b) Community colleges are encouraged to collaborate with local
school districts serving kindergarten and grades 1 to 12, inclusive,
to better articulate English and math instruction between the high
schools and the community colleges.
(c) Each participating community college shall be responsible for
all of the following:
(1) Developing a plan based on two or more of the evidence-based
principles and practices described in subdivision (a) that
demonstrates a clear strategy for ensuring that both of the following
occur within a five-year period:
(A) A progressively increasing share of the students who enroll at
participating community colleges within the community college
district achieve the goals listed in subdivision (b) of Section
88805.
(B) A significantly greater share of entering students who are
enrolled at the community college achieve the goals listed in
subdivision (b) of Section 88805 within a shorter time period than
before the implementation of the plan at the community college.
(2) Ensuring that the plan developed pursuant to paragraph (1)
does all the following:
(A) Describes the community college's current practices with
regard to the selected high impact practices and its readiness to
implement the new interventions.
(B) Articulates targets for the share of entering students
projected to be served by these interventions over the three-year
implementation period.
(C) Sets goals for the share of entering students who complete a
college-level English or mathematics course within three semesters or
less after enrollment.
(D) Identifies key strategies and implementation benchmarks for
evaluating the progress of campus efforts to implement the selected
interventions.
(E) Details the number of campus faculty likely to be involved in
all selected high impact interventions and the plan for addressing
their professional and technical assistance needs.
(3) Ensuring that its faculty participate in professional
development regarding academic programs or new curriculum developed
or expanded pursuant to the plan, using grant funds to support that
faculty participation.
(4) Commencing in the year that a community college receives a
grant and for the following three fiscal years, annually reporting to
the chancellor's office on program outcomes, disaggregated by the
demographic characteristics, high school grade point average, and
initial placement level of its students, for purposes of measuring
progress compared to the community college's performance before its
implementation of the plan. These reports should include all of the
following:
(A) The total number and percentage of entering students
identified as underprepared before receipt of the grant.
(B) The number and percentage of entering students served by the
grant program, disaggregated by type of practice implemented.
(C) The number and percentage of entering students achieving the
goals listed in subdivision (b) of Section 88805.
(D) The number of faculty involved and faculty needs regarding the
adoption and operation of courses under the plan.
(E) If applicable, a narrative describing any subsequent
adjustments to the design of the college's basic skills course
practices or strategies adopted pursuant to paragraph (6) of
subdivision (a).
(F) A description of any additional or expanded student supports
offered.
(G) A narrative describing the community college's efforts to
collaborate with local school districts serving kindergarten and
grades 1 to 12, inclusive, to better articulate English and math
instruction between the high schools and the community colleges.
(5) These plans should be developed in consultation with campus
faculty.
(d) The office of the Chancellor of the California Community
Colleges shall be responsible for all of the following:
(1) Developing application criteria, administrative guidelines,
and other requirements for purposes of administering the grant
program. Applications that would do one or both of the following
shall be given priority consideration within the application
criteria:
(A) Scale up existing practices.
(B) Provide services to greater proportions of students.
(2) Administering the grant program and distributing and
monitoring awards to recipient community college districts.
(3) Providing the information submitted pursuant to paragraph (4)
of subdivision (c) to the Legislative Analyst's Office.
(e) (1) The Legislative Analyst's Office shall aggregate, analyze,
and report the information submitted pursuant to paragraph (3) of
subdivision (d) to the Legislature on the progress of the grant
program in achieving its prescribed purpose. The Legislative Analyst'
s Office shall issue an interim report by December 1, 2019, and a
final report by December 1, 2021.
(2) (A) The requirement for submitting a report imposed under this
subdivision is inoperative on July 1, 2026, pursuant to Section
10231.5 of the Government Code.
(B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
SEC. 21. Section 89772 of the Education Code is amended to read:
89772. (a) (1) Commencing with the 2014-15 fiscal year, and for
each fiscal year thereafter, if the California State University plans
to use any of its support appropriation in the annual budget, or any
other revenues pursuant to paragraph (1) of subdivision (a) of
Section 89770, for the subsequent fiscal year for capital
expenditures, pursuant to and as defined in paragraph (1) of
subdivision (b) of Section 89770, or for capital outlay projects
pursuant to Section 89771, it shall simultaneously submit, on or
before September 1, 10 months before the commencement of that fiscal
year, a preliminary report to the committees in each house of the
Legislature that consider the state budget, the budget subcommittees
in each house of the Legislature that consider appropriations for the
California State University, and the Department of Finance.
(2) The preliminary report shall detail the scope of all capital
expenditures and capital outlay projects and how those capital
expenditures and capital outlay projects will be funded, and it shall
provide the same level of detail as a capital outlay budget change
proposal.
(3) The California State University shall submit, on or before
December 1, a final report to the committees in each house of the
Legislature that consider the state budget, the budget subcommittees
in each house of the Legislature that consider appropriations for the
California State University, and the Department of Finance.
(4) The final report shall detail the scope of all capital
expenditures and capital outlay projects and how those capital
expenditures and capital outlay projects will be funded, and it shall
provide the same level of detail as a capital outlay budget change
proposal.
(5) The Department of Finance shall review the final report and
submit, by February 1, a list of preliminarily approved capital
expenditures and capital outlay projects to the committees in each
house of the Legislature that consider the state budget and the
budget subcommittees in each house of the Legislature that consider
appropriations for the California State University. These committees
may review and respond to the list of preliminarily approved capital
expenditures and capital outlay projects before April 1.
(6) The Department of Finance shall submit a final list of
approved capital expenditures and capital outlay projects to the
California State University by no earlier than April 1, three months
before the commencement of the fiscal year of the planned
expenditures.
(b) The Department of Finance may approve capital expenditures, as
defined in paragraphs (3) and (4) of subdivision (b) of Section
89770, no sooner than 30 days after submitting, in writing, a list of
expenditures being considered for approval, to the chairpersons of
the committees in each house of the Legislature that consider
appropriations, the chairpersons of the committees and the
appropriate subcommittees in each house of the Legislature that
consider the state budget and the Chairperson of
the Joint Legislative Budget Committee.
(c) The California State University shall not use its General Fund
support appropriation to fund any capital expenditures, as defined
in paragraphs (1), (3), and (4) of subdivision (b) of Section 89770,
or capital outlay projects defined in subdivision (b) of Section
89771 before receiving approval from the Department of Finance
pursuant to this section.
(d) (1) For the 2014-15 fiscal year only, if the California State
University plans to use any of its support appropriation in the
annual budget for the 2014-15 fiscal year for capital expenditures
defined in paragraph (1) of subdivision (b) of Section 89770 or for
capital outlay projects pursuant to Section 89771, the California
State University shall simultaneously submit, on or before August 1,
2014, a report to the committees in each house of the Legislature
that consider the state budget, the budget subcommittees in each
house of the Legislature that consider appropriations for the
California State University, and the Department of Finance. This
report shall detail the scope of all capital expenditures and capital
outlay projects and how those capital expenditures and capital
outlay projects will be funded. This report shall include the same
level of detail as a capital outlay budget change proposal.
(2) The Department of Finance shall review, by November 1, 2014,
the report and submit a list of preliminarily approved capital
expenditures and capital outlay projects to the committees in each
house of the Legislature that consider the State Budget, and the
budget subcommittees in each house of the Legislature that consider
appropriations for the California State University. These committees
may review and respond to the list of preliminarily approved capital
expenditures and capital outlay projects before December 1, 2014.
(3) The Department of Finance shall submit a final list of
approved projects to the California State University no earlier than
December 1, 2014.
(4) The California State University shall not proceed with any
capital expenditures defined in paragraph (1) of subdivision (b) of
Section 89770 or capital outlay projects defined in Section 89771,
before receiving approval from the Department of Finance pursuant to
this subdivision.
(e) (1) Notwithstanding subdivision (c), commencing with the
2014-15 fiscal year, the California State University may use its
support appropriation in the annual budget for the capital
expenditures and capital outlay projects identified in the resolution
approved by the Trustees of the California State University on
January 28, 2015, titled "Approval to Issue Trustees of the
California State University, Systemwide Revenue Bonds and Related
Debt Instruments for Systemwide Infrastructure Improvement Projects
(RFIN 01-15-04)."
(2) Notwithstanding subdivision (c), commencing with the 2015-16
fiscal year, the California State University may use its support
appropriation in the annual budget for the capital expenditures and
capital outlay projects identified in the "2015-2016 CSU/State Funded
Capital Outlay Program" referenced in the resolution approved by the
Trustees of the California State University on November 13, 2014,
titled "Approval of the 2015-2016 Capital Outlay Program and the
2015-2016 through 2019-2020 Five-Year Capital Improvement Program
(RCPBG 11-14-17)."
(f) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2015-16 fiscal year, on or before February 1 of
each fiscal year, the California State University shall
simultaneously submit a progress report to the Joint Legislative
Budget Committee and the Department of Finance detailing the scope,
funding, and current status of all capital expenditures undertaken
pursuant to Section 89770 and for all capital outlay projects
undertaken pursuant to Section 89771.
SEC. 22. Section 92493 of the Education Code is amended to read:
92493. (a) (1) The University of California may pledge, along
with its other revenues, its annual General Fund support
appropriation less the amount of that appropriation that is required
to fund general obligation bond payments and the State Public Works
Board rental payments, to secure the payment of any of the university'
s general revenue bonds or commercial paper associated with the
general revenue bond program and to secure payment for any
availability payments, lease payments, installment payments, and
other similar or related payments.
(2) To the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature.
(3) The university may fund debt service for capital expenditures
defined in subdivision (b), and make availability payments, lease
payments, installment payments, and other similar or related payments
for capital expenditures defined in subdivision (b), from its
General Fund support appropriation pursuant to Sections 92495 and
92495.5.
(4) The state hereby covenants with the holders of the university'
s obligations secured by the pledge of the university permitted by
this section that, so long as any of the obligations referred to in
this subdivision remain outstanding, the state will not impair or
restrict the ability of the university to pledge any support
appropriation or support appropriations that may be enacted for the
university. The university may include this covenant of the state in
the agreements or other documents underlying the university's
obligations to this effect.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Availability payments" are payments made by the university to
a contractor for providing an available facility.
(2) "Capital expenditures" means any of the following:
(A) The costs to design, construct, or equip academic facilities
to address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion of
infrastructure to serve academic programs.
(B) The debt service amount associated with refunding, defeasing,
or retiring State Public Works Board lease revenue bonds.
(C) The costs to design, construct, or equip energy conservation
projects.
(c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount to
support the University of California.
(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future
increases in student tuition, additional employee layoffs, or
reductions in employee compensation at the University of California.
SEC. 23. Section 92495 of the Education Code is amended to read:
92495. (a) (1) Commencing with the 2013-14 fiscal year and for
each fiscal year thereafter, if the University of California plans to
use any of its support appropriation in the annual budget for the
subsequent fiscal year for capital expenditures pursuant to Section
92493, as defined in subparagraph (A) of paragraph (2) of subdivision
(b) of that section, or for capital outlay projects pursuant to
Section 92494, as defined in paragraph (1) of subdivision (b) of that
section, it shall simultaneously submit, on or before September 1,
10 months before the commencement of that fiscal year, a report to
the committees in each house of the Legislature that consider the
annual state budget, the budget subcommittees in each house of the
Legislature that consider appropriations for the University of
California, and the Department of Finance.
(2) The report shall detail the scope of capital expenditures or
capital outlay projects and how the capital expenditures or capital
outlay projects will be funded, and it shall provide the same level
of detail as a capital outlay budget change proposal.
(3) The Department of Finance shall review the report and submit,
by February 1, a list of preliminarily approved capital expenditures
and capital outlay projects to the committees in each house of the
Legislature that consider the annual state budget and the budget
subcommittees in each house of the Legislature that consider
appropriations for the University of California. These committees may
review and respond to the list of preliminarily approved capital
expenditures and capital outlay projects before April 1.
(4) The Department of Finance shall submit a final list of
approved capital expenditures and capital outlay projects to the
University of California no earlier than April 1, three months before
the commencement of the fiscal year of the planned expenditures.
(b) The Department of Finance may approve capital expenditures
defined in subparagraph (C) of paragraph (2) of subdivision (b) of
Section 92493, or capital outlay projects defined in paragraph (2) of
subdivision (b) of Section 92494, no sooner than 30 days after
submitting, in writing, a list of capital expenditures and capital
outlay projects being considered for approval to the chairpersons of
the committees in each house of the Legislature that consider
appropriations, the chairpersons of the committees and the
appropriate subcommittees in each house of the Legislature that
consider the State Budget, and the Chairperson of the Joint
Legislative Budget Committee.
(c) The University of California shall not use its General Fund
support appropriation to fund a capital expenditure defined in
subparagraph (A) or (C) of paragraph (2) of subdivision (b) of
Section 92493, or capital outlay project defined in subdivision (b)
of Section 92494, before receiving approval from the Department of
Finance pursuant to this section.
(d) (1) For the 2013-14 fiscal year only, if the University of
California plans to use any of its support appropriation in the
annual budget for the 2013-14 fiscal year for capital expenditures
pursuant to Section 92493, as defined in subparagraph (A) of
paragraph (2) of subdivision (b) of that section, or for capital
outlay projects pursuant to Section 92494, it shall simultaneously
submit, on or before August 1 of that fiscal year, a report to the
Joint Legislative Budget Committee and the Department of Finance.
This report shall detail the scope of each capital outlay project or
capital expenditure and how it will be funded, and it shall provide
the same level of detail as a capital outlay budget change proposal.
(2) The Department of Finance shall review the report and submit a
list of preliminarily approved projects to the Joint Legislative
Budget Committee by November 1 of that fiscal year.
(3) The Department of Finance shall submit a final list of
approved projects to the University of California no earlier than
December 1 of that fiscal year.
(4) The University of California shall not proceed with any
capital expenditures pursuant to Section 92493, as defined in
subparagraph (A) of paragraph (2) of subdivision (b) of that section,
or capital outlay projects pursuant to Section 92494, before
receiving approval from the Department of Finance pursuant to this
subdivision.
(e) Notwithstanding subdivision (b), the University of California
may use the authority provided in Section 92493 for the Merced
Classroom and Academic Office Building, as specified in Provision 3
of Item 6440-001-0001 of Section 2.00 of the Budget Act of 2013.
(f) For capital expenditures related to the Merced 2020 Project,
the University of California may proceed with capital expenditures
pursuant to Section 92493, as defined in paragraph (2) of subdivision
(b) of that section, or capital outlay projects pursuant to Section
92494, only if all work traditionally performed by persons with
University of California Service Unit (SX) job classifications is
performed only by employees of the University of California.
(g) Notwithstanding Section 10231.5 of the Government Code,
commencing with the 2014-15 fiscal year, on or before February 1 of
each fiscal year, the University of California shall simultaneously
submit a progress report to the Joint Legislative Budget Committee
and the Department of Finance detailing the scope, funding, and
current status of all capital expenditures undertaken pursuant to
Section 92493 and for all capital outlay projects undertaken pursuant
to Section 92494.
SEC. 24. Section 92495.5 of the Education Code is amended to read:
92495.5. The university shall manage its general revenue bond
program and the payments referenced in Section 92493, in a manner so
that not more than 15 percent of its General Fund support
appropriation, less the amount of that appropriation that is required
to fund general obligation bond payments and State Public Works
Board rental payments, is used for the total of all of the following:
(a) Payments for capital expenditures pursuant to Section 92493.
(b) Pay-as-you-go capital outlay projects pursuant to Section
92494.
(c) State Public Works Board rental payments.
SEC. 25. Section 94874.9 is added to the Education Code, to read:
94874.9. (a) An independent institution of higher education, as
defined in Section 66010, that is exempt from this chapter pursuant
to subdivision (i) of Section 94874 shall comply with all applicable
state and federal laws, including laws relating to fraud, abuse, and
false advertising.
(b) An institution described in subdivision (a) may execute a
contract with the bureau for the bureau to review and, as
appropriate, act on complaints concerning the institution, in
accordance with Section 600.9 of Title 34 of the Code of Federal
Regulations.
(c) The execution of a contract by the bureau with an institution
pursuant to subdivision (b) shall constitute establishment by the
state of that institution to offer programs beyond secondary
education, including programs leading to a degree or certificate, in
accordance with Section 600.9 of Title 34 of the Code of Federal
Regulations.
(d) The bureau shall use a standard form contract for purposes of
this section.
(e) A contract executed pursuant to this section shall, at a
minimum, do all of the following:
(1) Require an institution to do all of the following:
(A) Cooperate with the bureau to resolve complaints received
pursuant to this section.
(B) Provide the following disclosure notice in all written and
Internet-based documentation in which the institution's complaint
process is described, including the student catalog, student
handbook, and the institution's Internet Web site:
"An individual may contact the Bureau for Private Postsecondary
Education for review of a complaint. The bureau may be contacted at
(address), Sacramento, CA (ZIP Code), (Internet Web site address),
(telephone and fax numbers)."
(C) Designate a person at the institution to act as a liaison to
the bureau.
(D) Pay one thousand seventy-six dollars ($1,076) each year for
costs incurred by the bureau to perform activities pursuant to the
contract, unless another amount is determined by the bureau.
(2) (A) Authorize the bureau, for any complaint it receives,
including any complaints related to the institution's policies or
procedures, or both, as determined by the bureau, to refer the
complaint to the institution, an accrediting agency, or another
appropriate entity for resolution.
(B) The bureau shall notify the complainant and the institution of
a referral.
(C) This paragraph shall not be construed to relieve the bureau of
its responsibility to ensure that a complaint it has referred for
purposes of resolution is resolved by the receiving entity.
(f) The bureau may terminate a contract executed pursuant to this
section if an institution is no longer an independent institution of
higher education as defined in Section 66010 or fails to comply with
the provisions of the contract.
(g) All moneys collected by the bureau that relate to a contract
executed pursuant to this section, including payments collected in
accordance with subparagraph (D) of paragraph (1) of subdivision (e),
shall be deposited in the Private Postsecondary Education
Administration Fund.
(h) The bureau shall maintain, on its Internet Web site, both of
the following:
(1) The provisions of the standard form contract used for purposes
of this section.
(2) A list of institutions with which the bureau has executed a
contract pursuant to this section.
(i) On or before February 1, 2017, and each year thereafter, the
bureau shall report to the Director of Finance and, in conformity
with Section 9795 of the Government Code, to the Legislature
regarding implementation of this section. The report shall include
all of the following information:
(1) A list of institutions with which the bureau has executed a
contract pursuant to this section.
(2) The total number of complaints received by the bureau relating
to institutions listed in paragraph (1).
(3) The general nature of those complaints.
(4) The total number of those complaints referred to another
entity, disaggregated by the entity to which each complaint was
referred.
(5) The total number of complaints resolved, disaggregated by the
entity that resolved each complaint.
(6) The total number of complaints pending, disaggregated by the
entity to which each complaint was referred.
(j) Notwithstanding any other law, the Department of General
Services, at the request of the bureau, may exempt contracts executed
pursuant to this section from any laws, rules, resolutions, or
procedures that are otherwise applicable to public contracts that the
Department of General Services administers.
SEC. 26. Section 12207 is added to the Revenue and Taxation Code,
to read:
12207. (a) For the taxable years beginning on or after January 1,
2017, and before January 1, 2018, there shall be allowed as a credit
against the "tax," as described in Section 12202 or 12231, an amount
equal to 50 percent of the amount contributed by the taxpayer during
the taxable year to the College Access Tax Credit Fund, as allocated
and certified by the California Educational Facilities Authority.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section, Section 17053.87, and Section
23687 shall be an amount equal to five hundred million dollars
($500,000,000).
(2) (A) For the purposes of this section, the California
Educational Facilities Authority shall do all of the following:
(i) On a first-come-first-served basis, allocate and certify tax
credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Department of Insurance a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) does not apply to any regulation adopted by the
California Educational Facilities Authority pursuant to clause (i).
(c) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and succeeding five years if necessary, until the
credit is exhausted.
(d) The tax credit allowed by subdivision (a), subdivision (a) of
Section 17053.87, and subdivision (a) of Section 23687 for donations
to the College Access Tax Credit Fund shall be known as the College
Access Tax Credit.
(e) This section shall be repealed on December 1, 2018.
SEC. 27. Section 17039 of the Revenue and Taxation Code is amended
to read:
17039. (a) Notwithstanding any provision in this part to the
contrary, for the purposes of computing tax credits, the term "net
tax" means the tax imposed under either Section 17041 or 17048 plus
the tax imposed under Section 17504 (relating to lump-sum
distributions) less the credits allowed by Section 17054 (relating to
personal exemption credits) and any amount imposed under paragraph
(1) of subdivision (d) and paragraph (1) of subdivision (e) of
Section 17560. Notwithstanding the preceding sentence, the "net tax"
shall not be less than the tax imposed under Section 17504 (relating
to the separate tax on lump-sum distributions), if any. Credits shall
be allowed against "net tax" in the following order:
(1) Credits that do not contain carryover or refundable
provisions, except those described in paragraphs (4) and (5).
(2) Credits that contain carryover provisions but do not contain
refundable provisions, except for those that are allowed to reduce
"net tax" below the tentative minimum tax, as defined by Section
17062.
(3) Credits that contain both carryover and refundable provisions.
(4) The minimum tax credit allowed by Section 17063 (relating to
the alternative minimum tax).
(5) Credits that are allowed to reduce "net tax" below the
tentative minimum tax, as defined by Section 17062.
(6) Credits for taxes paid to other states allowed by Chapter 12
(commencing with Section 18001).
(7) Credits that contain refundable provisions but do not contain
carryover provisions.
The order within each paragraph shall be determined by the
Franchise Tax Board.
(b) Notwithstanding the provisions of Sections 17061 (relating to
refunds pursuant to the Unemployment Insurance Code) and 19002
(relating to tax withholding), the credits provided in those sections
shall be allowed in the order provided in paragraph (6) of
subdivision (a).
(c) (1) Notwithstanding any other provision of this part, no tax
credit shall reduce the tax imposed under Section 17041 or 17048 plus
the tax imposed under Section 17504 (relating to the separate tax on
lump-sum distributions) below the tentative minimum tax, as defined
by Section 17062, except the following credits:
(A) The credit allowed by Section 17052.2 (relating to teacher
retention tax credit).
(B) The credit allowed by former Section 17052.4 (relating to
solar energy).
(C) The credit allowed by former Section 17052.5 (relating to
solar energy, repealed on January 1, 1987).
(D) The credit allowed by former Section 17052.5 (relating to
solar energy, repealed on December 1, 1994).
(E) The credit allowed by Section 17052.12 (relating to research
expenses).
(F) The credit allowed by former Section 17052.13 (relating to
sales and use tax credit).
(G) The credit allowed by former Section 17052.15 (relating to Los
Angeles Revitalization Zone sales tax credit).
(H) The credit allowed by Section 17052.25 (relating to the
adoption costs credit).
(I) The credit allowed by Section 17053.5 (relating to the renter'
s credit).
(J) The credit allowed by former Section 17053.8 (relating to
enterprise zone hiring credit).
(K) The credit allowed by former Section 17053.10 (relating to Los
Angeles Revitalization Zone hiring credit).
(L) The credit allowed by former Section 17053.11 (relating to
program area hiring credit).
(M) For each taxable year beginning on or after January 1, 1994,
the credit allowed by former Section 17053.17 (relating to Los
Angeles Revitalization Zone hiring credit).
(N) The credit allowed by Section 17053.33 (relating to targeted
tax area sales or use tax credit).
(O) The credit allowed by Section 17053.34 (relating to targeted
tax area hiring credit).
(P) The credit allowed by Section 17053.49 (relating to qualified
property).
(Q) The credit allowed by Section 17053.70 (relating to enterprise
zone sales or use tax credit).
(R) The credit allowed by Section 17053.74 (relating to enterprise
zone hiring credit).
(S) The credit allowed by Section 17054 (relating to credits for
personal exemption).
(T) The credit allowed by Section 17054.5 (relating to the credits
for a qualified joint custody head of household and a qualified
taxpayer with a dependent parent).
(U) The credit allowed by Section 17054.7 (relating to the credit
for a senior head of household).
(V) The credit allowed by former Section 17057 (relating to
clinical testing expenses).
(W) The credit allowed by Section 17058 (relating to low-income
housing).
(X) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 17059.2 (relating to GO-Biz California
Competes Credit).
(Y) The credit allowed by Section 17061 (relating to refunds
pursuant to the Unemployment Insurance Code).
(Z) Credits for taxes paid to other states allowed by Chapter 12
(commencing with Section 18001).
(AA) The credit allowed by Section 19002 (relating to tax
withholding).
(AB) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 17053.86 (relating to the College Access
Tax Credit Fund).
(AC) For taxable years beginning on or after January 1, 2017, the
credit allowed by Section 17053.87 (relating to the College Access
Tax Credit Fund).
(2) Any credit that is partially or totally denied under paragraph
(1) shall be allowed to be carried over and applied to the net tax
in succeeding taxable years, if the provisions relating to that
credit include a provision to allow a carryover when that credit
exceeds the net tax.
(d) Unless otherwise provided, any remaining carryover of a credit
allowed by a section that has been repealed or made inoperative
shall continue to be allowed to be carried over under the provisions
of that section as it read immediately prior to being repealed or
becoming inoperative.
(e) (1) Unless otherwise provided, if two or more taxpayers (other
than husband and wife) share in costs that would be eligible for a
tax credit allowed under this part, each taxpayer shall be eligible
to receive the tax credit in proportion to his or her respective
share of the costs paid or incurred.
(2) In the case of a partnership, the credit shall be allocated
among the partners pursuant to a written partnership agreement in
accordance with Section 704 of the Internal Revenue Code, relating to
partner's distributive share.
(3) In the case of a husband and wife who file separate returns,
the credit may be taken by either or equally divided between them.
(f) Unless otherwise provided, in the case of a partnership, any
credit allowed by this part shall be computed at the partnership
level, and any limitation
on the expenses qualifying for the credit or limitation upon the
amount of the credit shall be applied to the partnership and to each
partner.
(g) (1) With respect to any taxpayer that directly or indirectly
owns an interest in a business entity that is disregarded for tax
purposes pursuant to Section 23038 and any regulations thereunder,
the amount of any credit or credit carryforward allowable for any
taxable year attributable to the disregarded business entity shall be
limited in accordance with paragraphs (2) and (3).
(2) The amount of any credit otherwise allowed under this part,
including any credit carryover from prior years, that may be applied
to reduce the taxpayer's "net tax," as defined in subdivision (a),
for the taxable year shall be limited to an amount equal to the
excess of the taxpayer's regular tax (as defined in Section 17062),
determined by including income attributable to the disregarded
business entity that generated the credit or credit carryover, over
the taxpayer's regular tax (as defined in Section 17062), determined
by excluding the income attributable to that disregarded business
entity. No credit shall be allowed if the taxpayer's regular tax (as
defined in Section 17062), determined by including the income
attributable to the disregarded business entity, is less than the
taxpayer's regular tax (as defined in Section 17062), determined by
excluding the income attributable to the disregarded business entity.
(3) If the amount of a credit allowed pursuant to the section
establishing the credit exceeds the amount allowable under this
subdivision in any taxable year, the excess amount may be carried
over to subsequent taxable years pursuant to subdivisions (c) and
(d).
(h) (1) Unless otherwise specifically provided, in the case of a
taxpayer that is a partner or shareholder of an eligible pass-thru
entity described in paragraph (2), any credit passed through to the
taxpayer in the taxpayer's first taxable year beginning on or after
the date the credit is no longer operative may be claimed by the
taxpayer in that taxable year, notwithstanding the repeal of the
statute authorizing the credit prior to the close of that taxable
year.
(2) For purposes of this subdivision, "eligible pass-thru entity"
means any partnership or "S" corporation that files its return on a
fiscal year basis pursuant to Section 18566, and that is entitled to
a credit pursuant to this part for the taxable year that begins
during the last year the credit is operative.
(3) This subdivision shall apply to credits that become
inoperative on or after the operative date of the act adding this
subdivision.
SEC. 28. Section 17053.86 of the Revenue and Taxation Code is
amended to read:
17053.86. (a) (1) For taxable years beginning on or after January
1, 2014, and before January 1, 2017, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to the following:
(A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2015, 60 percent of the amount contributed by
the taxpayer for the 2014 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
(B) For each taxable year beginning on and after January 1, 2015,
and before January 1, 2016, 55 percent of the amount contributed by
the taxpayer for the 2015 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
(C) For each taxable year beginning on and after January 1, 2016,
and before January 1, 2017, 50 percent of the amount contributed by
the taxpayer for the 2016 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall be an
amount equal to the sum of all of the following:
(A) Five hundred million dollars ($500,000,000) in credits for the
2014 calendar year and each calendar year thereafter.
(B) The amount of previously unallocated and uncertified credits.
(2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
(i) On or after January 1, 2014, and before January 1, 2017,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) does not apply to any regulation adopted by the
California Educational Facilities Authority pursuant to clause (i).
(c) (1) In the case where the credit allowed by this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding five years if
necessary, until the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund
shall be allocated as follows:
(A) First to the General Fund in an amount equal to the aggregate
amount of certified credits allowed pursuant to this section and
Section 23686 for the taxable year. Funds allocated to the General
Fund shall be considered General Fund revenues for purposes of
Sections 8 and 8.5 of Article XVI of the California Constitution.
(B) Second, upon appropriation, to the Franchise Tax Board, the
California Educational Facilities Authority, the Controller, and the
Student Aid Commission for reimbursement of all administrative costs
incurred by those agencies in connection with their duties under this
section, Section 23686, and Section 69431.7 of the Education Code.
(C) Third, notwithstanding Section 13340 of the Government Code,
the remaining revenue shall be continuously appropriated to the
Student Aid Commission for purposes of awarding Cal Grants to
students subject to Section 69431.7 of the Education Code.
(2) The tax credit allowed by subdivision (a) and subdivision (a)
of Section 23686 for donations to the College Access Tax Credit Fund
shall be known as the College Access Tax Credit.
(e) This section shall be repealed on December 1, 2017.
SEC. 29. Section 17053.87 is added to the Revenue and Taxation
Code, to read:
17053.87. (a) For the taxable years beginning on or after January
1, 2017, and before January 1, 2018, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 50 percent of the amount contributed by the taxpayer during
the taxable year to the College Access Tax Credit Fund, as allocated
and certified by the California Educational Facilities Authority.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section, Section 12207, and Section 23687
shall be an amount equal to five hundred million dollars
($500,000,000).
(2) (A) For the purposes of this section, the California
Educational Facilities Authority shall do all of the following:
(i) On a first-come-first-served basis, allocate and certify tax
credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) does not apply to any regulation adopted by the
California Educational Facilities Authority pursuant to clause (i).
(c) (1) In the case where the credit allowed by this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding five years if
necessary, until the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund
shall be allocated as follows:
(A) First to the General Fund in an amount equal to the aggregate
amount of certified credits allowed pursuant to this section and
Section 23687 for the taxable year. Funds allocated to the General
Fund shall be considered General Fund revenues for purposes of
Sections 8 and 8.5 of Article XVI of the California Constitution.
(B) Second, upon appropriation, to the Department of Insurance,
the Franchise Tax Board, the California Educational Facilities
Authority, the Controller, and the Student Aid Commission for
reimbursement of all administrative costs incurred by those agencies
in connection with their duties under this section, Section 12207,
Section 23687, and Section 69431.7 of the Education Code.
(C) Third, notwithstanding Section 13340 of the Government Code,
the remaining revenue shall be continuously appropriated to the
Student Aid Commission for purposes of awarding Cal Grants to
students subject to Section 69431.7 of the Education Code.
(2) The tax credit allowed by subdivision (a), subdivision (a) of
Section 12207, and subdivision (a) of Section 23687 for donations to
the College Access Tax Credit Fund shall be known as the College
Access Tax Credit.
(e) This section shall be repealed on December 1, 2018.
SEC. 30. Section 23036 of the Revenue and Taxation Code is amended
to read:
23036. (a) (1) The term "tax" includes any of the following:
(A) The tax imposed under Chapter 2 (commencing with Section
23101).
(B) The tax imposed under Chapter 3 (commencing with Section
23501).
(C) The tax on unrelated business taxable income, imposed under
Section 23731.
(D) The tax on "S" corporations imposed under Section 23802.
(2) The term "tax" does not include any amount imposed under
paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of
subdivision (f) of Section 24667.
(b) For purposes of Article 5 (commencing with Section 18661) of
Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4,
Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7
(commencing with Section 19501) of Part 10.2, and for purposes of
Sections 18601, 19001, and 19005, the term "tax" also includes all of
the following:
(1) The tax on limited partnerships, imposed under Section 17935,
the tax on limited liability companies, imposed under Section 17941,
and the tax on registered limited liability partnerships and foreign
limited liability partnerships imposed under Section 17948.
(2) The alternative minimum tax imposed under Chapter 2.5
(commencing with Section 23400).
(3) The tax on built-in gains of "S" corporations, imposed under
Section 23809.
(4) The tax on excess passive investment income of "S"
corporations, imposed under Section 23811.
(c) Notwithstanding any other provision of this part, credits are
allowed against the "tax" in the following order:
(1) Credits that do not contain carryover provisions.
(2) Credits that, when the credit exceeds the "tax," allow the
excess to be carried over to offset the "tax" in succeeding taxable
years, except for those credits that are allowed to reduce the "tax"
below the tentative minimum tax, as defined by Section 23455. The
order of credits within this paragraph shall be determined by the
Franchise Tax Board.
(3) The minimum tax credit allowed by Section 23453.
(4) Credits that are allowed to reduce the "tax" below the
tentative minimum tax, as defined by Section 23455.
(5) Credits for taxes withheld under Section 18662.
(d) Notwithstanding any other provision of this part, each of the
following applies:
(1) A credit may not reduce the "tax" below the tentative minimum
tax (as defined by paragraph (1) of subdivision (a) of Section
23455), except the following credits:
(A) The credit allowed by former Section 23601 (relating to solar
energy).
(B) The credit allowed by former Section 23601.4 (relating to
solar energy).
(C) The credit allowed by former Section 23601.5 (relating to
solar energy).
(D) The credit allowed by Section 23609 (relating to research
expenditures).
(E) The credit allowed by former Section 23609.5 (relating to
clinical testing expenses).
(F) The credit allowed by Section 23610.5 (relating to low-income
housing).
(G) The credit allowed by former Section 23612 (relating to sales
and use tax credit).
(H) The credit allowed by Section 23612.2 (relating to enterprise
zone sales or use tax credit).
(I) The credit allowed by former Section 23612.6 (relating to Los
Angeles Revitalization Zone sales tax credit).
(J) The credit allowed by former Section 23622 (relating to
enterprise zone hiring credit).
(K) The credit allowed by Section 23622.7 (relating to enterprise
zone hiring credit).
(L) The credit allowed by former Section 23623 (relating to
program area hiring credit).
(M) The credit allowed by former Section 23623.5 (relating to Los
Angeles Revitalization Zone hiring credit).
(N) The credit allowed by former Section 23625 (relating to Los
Angeles Revitalization Zone hiring credit).
(O) The credit allowed by Section 23633 (relating to targeted tax
area sales or use tax credit).
(P) The credit allowed by Section 23634 (relating to targeted tax
area hiring credit).
(Q) The credit allowed by former Section 23649 (relating to
qualified property).
(R) For taxable years beginning on or after January 1, 2011, the
credit allowed by Section 23685 (relating to qualified motion
pictures).
(S) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 23689 (relating to GO-Biz California
Competes Credit).
(T) For taxable years beginning on or after January 1, 2016, the
credit allowed by Section 23695 (relating to qualified motion
pictures).
(U) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 23686 (relating to the College Access Tax
Credit Fund).
(V) For taxable years beginning on or after January 1, 2017, the
credit allowed by Section 23687 (relating to the College Access Tax
Credit Fund).
(2) A credit against the tax may not reduce the minimum franchise
tax imposed under Chapter 2 (commencing with Section 23101).
(e) Any credit which is partially or totally denied under
subdivision (d) is allowed to be carried over to reduce the "tax" in
the following year, and succeeding years if necessary, if the
provisions relating to that credit include a provision to allow a
carryover of the unused portion of that credit.
(f) Unless otherwise provided, any remaining carryover from a
credit that has been repealed or made inoperative is allowed to be
carried over under the provisions of that section as it read
immediately prior to being repealed or becoming inoperative.
(g) Unless otherwise provided, if two or more taxpayers share in
costs that would be eligible for a tax credit allowed under this
part, each taxpayer is eligible to receive the tax credit in
proportion to his or her respective share of the costs paid or
incurred.
(h) Unless otherwise provided, in the case of an "S" corporation,
any credit allowed by this part is computed at the "S" corporation
level, and any limitation on the expenses qualifying for the credit
or limitation upon the amount of the credit applies to the "S"
corporation and to each shareholder.
(i) (1) With respect to any taxpayer that directly or indirectly
owns an interest in a business entity that is disregarded for tax
purposes pursuant to Section 23038 and any regulations thereunder,
the amount of any credit or credit carryforward allowable for any
taxable year attributable to the disregarded business entity is
limited in accordance with paragraphs (2) and (3).
(2) The amount of any credit otherwise allowed under this part,
including any credit carryover from prior years, that may be applied
to reduce the taxpayer's "tax," as defined in subdivision (a), for
the taxable year is limited to an amount equal to the excess of the
taxpayer's regular tax (as defined in Section 23455), determined by
including income attributable to the disregarded business entity that
generated the credit or credit carryover, over the taxpayer's
regular tax (as defined in Section 23455), determined by excluding
the income attributable to that disregarded business entity. A credit
is not allowed if the taxpayer's regular tax (as defined in Section
23455), determined by including the income attributable to the
disregarded business entity is less than the taxpayer's regular tax
(as defined in Section 23455), determined by excluding the income
attributable to the disregarded business entity.
(3) If the amount of a credit allowed pursuant to the section
establishing the credit exceeds the amount allowable under this
subdivision in any taxable year, the excess amount may be carried
over to subsequent taxable years pursuant to subdivisions (d), (e),
and (f).
(j) (1) Unless otherwise specifically provided, in the case of a
taxpayer that is a partner or shareholder of an eligible pass-thru
entity described in paragraph (2), any credit passed through to the
taxpayer in the taxpayer's first taxable year beginning on or after
the date the credit is no longer operative may be claimed by the
taxpayer in that taxable year, notwithstanding the repeal of the
statute authorizing the credit prior to the close of that taxable
year.
(2) For purposes of this subdivision, "eligible pass-thru entity"
means any partnership or "S" corporation that files its return on a
fiscal year basis pursuant to Section 18566, and that is entitled to
a credit pursuant to this part for the taxable year that begins
during the last year a credit is operative.
(3) This subdivision applies to credits that become inoperative on
or after the operative date of the act adding this subdivision.
SEC. 31. Section 23686 of the Revenue and Taxation Code is amended
to read:
23686. (a) (1) For taxable years beginning on or after January 1,
2014, and before January 1, 2017, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to
the following:
(A) For taxable years beginning on and after January 1, 2014, and
before January 1, 2015, 60 percent of the amount contributed by the
taxpayer for the 2014 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the California Educational
Facilities Authority.
(B) For taxable years beginning on and after January 1, 2015, and
before January 1, 2016, 55 percent of the amount contributed by the
taxpayer for the 2015 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the California Educational
Facilities Authority.
(C) For taxable years beginning on and after January 1, 2016, and
before January 1, 2017, 50 percent of the amount contributed by the
taxpayer for the 2016 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the California Educational
Facilities Authority.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall be an
amount equal to the sum of all of the following:
(A) Five hundred million dollars ($500,000,000) for the 2014
calendar year and each calendar year thereafter.
(B) The amount of previously unallocated and uncertified credits.
(2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
(i) On or after January 1, 2014, and before January 1, 2017,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) does not apply to any regulation adopted by the
California Educational Facilities Authority pursuant to clause (i).
(c) (1) In the case where the credit allowed by this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding five years if necessary, until
the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) This section shall be repealed on December 1, 2017.
SEC. 32. Section 23687 is added to the Revenue and Taxation Code,
to read:
23687. (a) For taxable years beginning on or after January 1,
2017, and before January 1, 2018, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to 50
percent of the amount contributed by the taxpayer during the taxable
year to the College Access Tax Credit Fund, as allocated and
certified by the California Educational Facilities Authority.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section, Section 12207, and Section
17053.87 shall be an amount equal to five hundred million dollars
($500,000,000).
(2) (A) For the purposes of this section, the California
Educational Facilities Authority shall do all of the following:
(i) On a first-come-first-served basis, allocate and certify tax
credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) does not apply to any regulation adopted by the
California Educational Facilities Authority pursuant to clause (i).
(c) (1) In the case where the credit allowed by this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding five years if necessary, until
the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) The tax credit allowed by subdivision (a), subdivision (a) of
Section 12207, and Section 17053.87 for donations to the College
Access Tax Credit Fund shall be known as the College Access Tax
Credit.
(e) This section shall be repealed on December 1, 2018.
SEC. 33. The Legislature finds and declares that the retroactive
amendments made by this act to Sections 17039 and 23036 of the
Revenue and Taxation Code, which authorize the College Access Tax
Credit to reduce the tentative minimum tax below the regular tax,
serve a statewide public purpose by ensuring that the College Access
Tax Credit Fund is fully utilized, thereby benefiting students who
receive Cal Grants pursuant to Section 69431.7 of the Education Code,
and do not constitute a gift of public funds within the meaning of
Section 6 of Article XVI of the California Constitution.
SEC. 34. (a) The Legislative Analyst's Office shall conduct a
study to assess the need for new campuses of the CSU or the UC. This
study shall consist of both of the following parts:
(1) An analysis of the need within certain regions of the state
for a CSU campus and statewide for a UC campus. To the extent
applicable data are available, this analysis shall include all of the
following:
(A) Consideration of enrollment demand based on relative
demographic levels and eligible students for each county and
statewide. This shall include consideration of 5- to 10-year
projections of the college-age population and public high school
graduates. It also shall include consideration of data, for the most
recent year available, on college preparedness, including the number
and share of high school
graduates completing the "A-G" admissions requirements and the number
and share of transfer-prepared community college students.
(B) For each county and statewide, data on UC and CSU
applications, admissions, and enrollment, for the most recent
academic year available, and an estimate, based on that data, of
college-going rates to UC and CSU.
(C) Data on adult educational attainment by county and statewide
for the most recent year available.
(2) An analysis of the physical capacities of existing UC and CSU
campuses, as set forth in their respective master plans, relative to
current enrollment. This analysis shall identify UC or CSU campuses
already at maximum capacity and those with remaining physical
capacity. The analysis also shall identify which CSU campuses no
longer provide enrollment priority for local applicants.
(b) The UC and CSU shall provide data needed by the Legislative
Analyst's Office to meet the requirements of this section to that
office upon its request.
(c) (1) The Legislative Analyst's Office shall submit reports,
including, but not necessarily limited to, the data and analyses
required by this section, to the Legislature and Department of
Finance as follows:
(A) A report relating to CSU shall be submitted on or before
January 1, 2017.
(B) A report relating to UC shall be submitted on or before
January 1, 2018.
(2) The Legislative Analyst's Office shall submit the reports
required by this section in compliance with Section 9795 of the
Government Code.
SEC. 35. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 36. (a) The sum of forty-eight million dollars ($48,000,000)
is hereby appropriated from the General Fund to the Board of
Governors of the California Community Colleges for purposes of
funding the Career Technical Education Pathways Program established
pursuant to Chapter 1 (commencing with Section 88530) of Part 52 of
Division 7 of Title 3 of the Education Code.
(b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the funds appropriated
pursuant to this section 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
2014-15 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 2014-15 fiscal year.
SEC. 37. (a) The sum of forty-eight million dollars ($48,000,000)
is hereby appropriated from the General Fund to the Chancellor of the
California Community Colleges for allocation to community college
districts. A community college district shall use its allocation for
any of the following purposes:
(1) Scheduled maintenance and special repairs of facilities. As a
condition for receiving and expending funds for maintenance or
special repairs, a community college district shall certify in a
resolution that it will increase its operations and maintenance
spending from the 1995-96 fiscal year by at least the amount the
community college district uses from its allocation under this
paragraph for maintenance and special repairs. The question of
whether a community college district has complied with its resolution
shall be reviewed under the annual audit of that district.
(2) Hazardous substances abatement, clean up, and repairs.
(3) Architectural barrier removal projects that meet the
requirements of the federal Americans with Disabilities Act of 1990
(42 U.S.C. Sec. 12101 et seq.) and seismic retrofit projects limited
to four hundred thousand dollars ($400,000) per project.
(4) For replacement of instructional equipment and library
materials. As a condition for receiving and expending funds for
instructional equipment and library materials, a community college
district shall certify in a resolution that it will not use any of
its allocation under this paragraph for personnel services costs or
operating expenses. The question of whether a community college
district has complied with its resolution shall be reviewed under the
annual audit of that district.
(5) Water conservation projects to reduce water consumption in
cooperation with the Governor's Executive Order B-29-15. Projects may
include any of the following:
(A) Replacement of water intensive landscaping with drought
tolerant landscaping, synthetic turf, provided that the turf is used
only in nonathletic areas, and other nonplant materials.
(B) Drip or low-flow irrigation systems.
(C) Building improvements to reduce water usage.
(D) Installation of meters for wells to allow for monitoring of
water usage.
(b) The Chancellor of the California Community Colleges shall
allocate funds under this section to community college districts on
the basis of actual reported full-time equivalent students, except
that the chancellor may establish a minimum allocation to be received
by each district. The chancellor may establish guidelines for the
use of the moneys allocated.
(c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the funds appropriated
pursuant to this section 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
2014-15 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 2014-15 fiscal year.
SEC. 38. (a) The sum of sixty million dollars ($60,000,000) is
hereby appropriated from the General Fund to the Chancellor of the
California Community Colleges for allocation to community college
districts pursuant to Part 54 (commencing with Section 88800) of
Division 7 of Title 3 of the Education Code.
(b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the funds appropriated
pursuant to this section 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
2014-15 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 2014-15 fiscal year.
SEC. 39. (a) The sum of six million dollars ($6,000,000) is hereby
appropriated from the General Fund to the Chancellor of the
California Community Colleges for allocation to community college
districts to support the implementation of the baccalaureate degree
pilot program established pursuant to Chapter 747 of the Statutes of
2014. These funds may be used to support professional development
activities.
(b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the funds appropriated
pursuant to this section 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
2014-15 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 2014-15 fiscal year.
SEC. 40. The sum of one million dollars ($1,000,000) is hereby
appropriated from the General Fund for use pursuant to legislation
enacted in the first year of the 2015-16 Regular Session of the
Legislature related to a study of those eligible for admission to the
University of California and the California State University.
SEC. 41. Item 6910-102-0001 is added to Section 2.00 of the Budget
Act of 2014, to read:
6910-102-0001--For local assistance,
Awards for Innovation in Higher Education
(Proposition 98) ......................... 23,000,000
SEC. 42. Notwithstanding any other law:
(a) The University of California may use any project savings from
the Merced Classroom and Academic Office Building project identified
in Item 6440-301-6048 of Section 2.00 of the Budget Act of 2012, as
added by Section 9 of Chapter 575 of the Statutes of 2012, for the
construction phase of the Merced Classroom and Academic Office
Building project as authorized in Provision 3 of Item 6440-001-0001
of Section 2.00 of the Budget Act of 2013.
(b) The funds appropriated in Item 6440-301-6048 of Section 2.00
of the Budget Act of 2012 shall be available for encumbrance until
June 30, 2016.
SEC. 43. 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.
