Bill Text: CA SB174 | 2013-2014 | Regular Session | Amended

California Senate Bill 174 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Student financial aid: Cal Grant Program.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2014-09-16 - Chaptered by Secretary of State. Chapter 363, Statutes of 2014. [SB174 Detail]

Download: California-2013-SB174-Amended.html
BILL NUMBER: SB 174	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator  Liu   De Le�n 
    (   Coauthor:   Senator   Liu
  ) 

                        FEBRUARY 5, 2013

   An act to  amend Section 41976 of   add
Section 69431.7 to  the Education Code, relating to 
adult education   student financial aid, and declaring
the urgency thereof, to take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 174, as amended,  Liu   De Le�n  .
 Adult education: apportionments.  Student
financial aid: Cal Grant Program.  
   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.  
   This bill would require the Treasurer to certify the amount of
moneys available in an academic year from the College Access Tax
Credit Fund for distribution, and provide that an amount determined
by the Student Aid Commission would be available for expenditure,
upon appropriation to the commission by the Legislature in the annual
Budget Act, from the College Access Tax Credit Fund, 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 to defray the administrative costs incurred by
the commission in implementing the bill.  
   The bill would become operative only if SB 798 is enacted and
becomes operative on or before January 1, 2015.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   Existing law establishes a system of public elementary and
secondary schools in this state, and provides for their funding
through, among other types of funding, the apportionment of state
funds to local educational agencies in accordance with prescribed
criteria. Existing law authorizes school districts and county
superintendents of schools to provide specified adult education
classes and courses that qualify for the apportionment of state funds
from the Adult Education Fund.  
   This bill would recast and revise the list of classes and courses
that qualify for this funding, and would specify that this funding
could be claimed by high school districts, unified school districts,
and county offices of education. The bill would include courses of
preparation for the California High School Exit Examination and the
General Education Development (GED) test among the courses qualifying
for the apportionment of state funds. The bill would authorize the
charging of a fee for adult educations courses when apportionment of
state funds does not cover the cost of providing the course. The bill
would prohibit the apportionment of state funds for adult education
courses unless they are approved by the governing board of the local
educational agency and receive annual approval from the State
Department of Education. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) In addressing California's fiscal crisis, state budget
solutions over the last several fiscal years have included deep cuts
and payment deferrals that have resulted in the loss of billions of
dollars in funding for all segments of postsecondary education. 

   (b) In the 2011-12 fiscal year, the state contributed $16.4
billion to postsecondary education. However, the share of
expenditures borne by California State University students in the
form of fees has nearly doubled, from 18 percent in 2007-08, to 30
percent in 2011-12. A public postsecondary education has become
unaffordable for the middle class. Most students are leaving school
thousands of dollars in debt, and they end up sending monthly
payments to out-of-state banks rather than contributing to the local
economy.  
   (c) With less access to postsecondary education due to courses
being cut, each year students are taking longer and longer to
graduate. It now takes the average student seven years to graduate
from a California Community College campus, six and one-half years to
graduate from a California State University campus, and four and
one-half years to graduate from a University of California campus.
 
   (d) Educational attainment levels predict the overall economic
performance of states and nations. California was always among the
top states in degree-completion rates, but it now ranks among the
bottom 10 states.  
   (e) By 2018, 63 percent of all jobs in the United States will
require some form of postsecondary education or training, according
to estimates by the Georgetown University Center on Education and the
Workforce. The United States is on track to deliver only a fraction
of this education. Currently, only 38 percent of America's young
adults have a college degree, compared to 58 percent in South Korea.
 
   (f) California's postsecondary education system has helped build
and sustain an entrepreneurial spirit that has shaped new sectors of
the state's economy. During tough times like these, we need novel
approaches to steer the state back on track.  
   (g) Estimates show that the College Access Tax Credit Fund will be
fully subscribed for each of the three years of the program,
allowing the California Student Aid Commission to fund larger access
grants to California's neediest students.  
   (h) All Californians deserve access to an affordable postsecondary
education. 
   SEC. 2.    Section 69431.7 is added to the  
Education Code   , to read:  
   69431.7.  (a) As used in this section, "fund" means the College
Access Tax Credit Fund created by Section 17053.86 of the Revenue and
Taxation Code.
   (b) Any moneys that may be appropriated 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) On April 1, 2015, and on April 1 annually thereafter, the
Treasurer shall certify the amount of moneys available for
distribution from the fund for the academic year commencing the
following July 1. The amount available for distribution in any
academic year shall not exceed 85 percent of the certified fund
balance. Notwithstanding any other law, the commission shall
thereafter determine the amount of the supplemental awards to be
granted and the administrative costs that will be incurred, and
include these amounts in the budget change proposals submitted each
fiscal year pursuant to Section 69518. The amount determined by the
commission under this subdivision shall be available, upon
appropriation by the Legislature to the commission in the annual
Budget Act, for the purpose of making awards to students in
accordance with this section.
   (d) If, after making supplemental awards pursuant to subdivision
(e), moneys remain in the fund, those moneys shall remain in the fund
for allocation in future fiscal years.
   (e) Disbursements shall be made upon annual appropriation by the
Legislature to the commission under this section for both of the
following purposes:
   (1)   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.
   (2) To defray the administrative costs incurred by the commission
in implementing this section. 
   SEC. 3.    This act shall become operative only if
Senate Bill 798 is enacted and becomes operative on or before January
1, 2015. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   As our state economy is recovering, it is important to provide
adequate funding for Cal Grant B access awards beginning in the
2015-16 academic year so that students receiving these awards can
stay enrolled, and it is therefore necessary that this act take
effect immediately so that this program may be funded by donations to
the College Access Tax Credit Fund made during 2014.  
  SECTION 1.    Section 41976 of the Education Code
is amended to read:
   41976.  (a) For purposes of this chapter, adult academic,
workforce preparation, and civic engagement programs are authorized
to be offered by high school districts, unified school districts, and
county offices of education to claim apportionments from the Adult
Education Fund, except as provided in subdivision (b). The primary
focus of adult education is to provide for dropout recovery and
support the transition of adult students to postsecondary education,
training, and into the workforce. Adult education programs shall
include all of the following:
   (1) Adult basic and secondary academic programs, including
elementary basic skills and secondary courses required for the high
school diploma, pursuant to Section 51225.3, and dropout recovery.
Courses under this section may include preparation for the California
High School Exit Examination, the General Education Development
(GED) test, or any high school diploma certification as approved by
the department.
   (2) Education programs in English as a second language and
citizenship preparation, including programs for immigrants eligible
for educational services in citizenship, civic participation, and
workforce preparation. These courses include the English literacy
skills of speaking, listening, reading, writing, mathematics,
decisionmaking, and problem solving skills, and other classes
required for preparation to participate in job specific career and
technical training.
   (3) Career technical education, including programs promoting a
skilled workforce with high-growth and high-wage employment
potential, leading to industry certifications, or that meet the
required prerequisites and foundations for advanced postsecondary
programs. These courses, developed within designated career sectors,
shall incorporate academic, career preparation, and job readiness
skills with possible apprenticeships or internships.
   (4) Civic engagement programs, including specialized courses
focusing on any of the following: issues of aging; assisting disabled
adults to become self-reliant, productive, and effective community
members; parenting and family literacy; health and financial
literacy; and civic participation skills.
   (b) Only the program curriculum incorporated within the programs
described in paragraphs (1) to (3), inclusive, of subdivision (a) may
be funded from an apportionment from the Adult Education Fund.
   (c) If an adult education course is not eligible for funding from
an apportionment from the Adult Education Fund, or if such an
apportionment does not cover the entire cost of providing the course,
a fee may be charged to cover this cost.
   (d) No state apportionment for adult education courses or classes
developed within programs shall be made for any course or class that
is not set forth in subdivision (a). Further, no state apportionment
shall be made for purposes of this section without the approval of
the governing board of the local educational agency offering the
course and the annual approval of the department.