BILL NUMBER: AB 655 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 3, 2003
AMENDED IN ASSEMBLY APRIL 10, 2003
INTRODUCED BY Assembly Member Liu
(Coauthor: Assembly Member Jackson)
FEBRUARY 19, 2003
An act to amend Sections 11001, 66010.6, 66021.2, 66022,
66903, 69432.7, 69506.5, 69507.5, 69508, 69515, 69517, 69517.5,
69518, 69532, 69534.1, 69534.4, 69535.5, 69541, 69546, 69546.5,
69561, 69561.5, 69562, 69563, 69613, 69618, 69618.3, 69620, 69622,
69623, 69625, 69626, 69627, 69730, 69731, 69740, 69763.1, 69763.2,
69763.3, 69763.4, 69766, 69769.5, 69951, 69952, 69954, 69958, 69965,
69966, 69967, 69984, 89347, 94155, 94719.5, 94724, 94728.5, 94770,
94771, 94774.5, 94804, 94835, 94846, 94920, 94930, 94931, 94948,
94965, and 94995 of, to amend the heading of Article 2 (commencing
with Section 69510) of Chapter 2 of Part 42 of, to add Sections
66903.5 and to, 66904 to, to add Chapter 11.1 (commencing with
Section 66910) to Part 40 of, to repeal and add Sections 66901 and
69510, to repeal Sections 69511, 69511.5, and 94990 of, to repeal
Chapter 3 (commencing with Section 94301) of Part 59 of, and to
repeal Article 16 (commencing with Section 94999) of Chapter 7 of
Part 59 of, the Education Code, to amend Sections 127929 and 128445
of the Health and Safety Code, to amend Sections 4709 and 4728 of the
Labor Code, to amend Section 10340 of the Public Contract Code, to
amend Sections 19533 and 19557 of the Revenue and Taxation Code, and
to amend Section 5024 of the Vehicle Code, relating to
postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
AB 655, as amended, Liu. Postsecondary education:
California Higher Education Policy and Finance Commission:
California Postsecondary Education Commission: Student Aid
Commission: Bureau for Private Postsecondary and Vocational
Education.
Existing law known as the Donahoe Higher Education Act, sets
forth, among other things, the missions and functions of California's
public and independent segments of higher education, and their
respective institutions of higher education. Among other things, the
act establishes the 17-member California Postsecondary Education
Commission (CPEC) for, among other purposes, the collection of data
pertinent to the planning and coordination of the higher education
system of the state.
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. Under existing law, the commission,
among other things, administers the Cal Grant Program, the Student
Opportunity and Access Program, the Assumption Program of Loans for
Education, the Graduate Assumption Program of Loans for Education,
the Public Interest Attorney Loan Repayment Program, and the
California State Work-Study Program. The Student Aid Commission also
oversees the state's participation in the Federal Family Education
Loan Program.
Existing law, known as the Private Postsecondary and Vocational
Education Reform Act of 1989, generally sets minimum standards of
instructional quality, ethical and business practices, health and
safety, and fiscal responsibility for private postsecondary and
vocational educational institutions, as defined. The act establishes
the Bureau for Private Postsecondary and Vocational Education, which,
among other things, is required to review and investigate all
institutions, programs, and courses of instruction approved under the
act. By its own terms, the act is repealed as of January 1, 2005.
This bill would reconstitute CPEC as a 9-member
commission as of July 1, 2005. The bill would repeal the statute
establishing the Student Aid Commission, and place all of its
functions under the administration of the California Higher
Education Policy and Finance Commission, which the bill would
establish. The bill would remove the Bureau of Private Postsecondary
and Vocational Education from the Department of Consumer Affairs,
and place it and its functions under the administration of the
California Higher Education Policy and Finance Commission.
The bill would also delete the January 1, 2005, repeal date for
the Private Postsecondary and Vocational Education Reform Act of
1989, thereby extending the existence of the act indefinitely. All
provisions of the bill other than the deletion of that repeal date
would become operative on July 1, 2005.
The bill would also make numerous technical and conforming changes
express the intent of the Legislature to consolidate
the program responsibilities of the Student Aid Commission, the
Bureau for Private Postsecondary and Vocational Education, and CPEC
into a single state entity .
Vote: majority. Appropriation: no. Fiscal committee:
yes no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to consolidate the
program responsibilities of the Student Aid Commission, the Bureau
for Private Postsecondary and Vocational Education, and the
California Postsecondary Education Commission into the
California Higher Education Policy and Finance Commission
a single state entity and, in so doing, accomplish all of
the following:
(a) Consolidate within a single state agency key responsibilities
for higher education planning and analysis, program administration,
and information system management.
(b) Establish a strong capacity for independent and objective
higher education policy planning and analysis.
(c) Fully integrate the resources of the private postsecondary
sector, in combination with the public and independent sectors, in
accommodating enrollment growth and finance policies.
(d) Fully integrate student fee policy and financial aid policy
with institutional funding and finance policies.
(e) Establish and maintain a comprehensive higher education
information system, integrating all sectors of postsecondary
education including financial aid, and providing accurate current and
historical data about higher education.
(f) Take into account the views and perspectives of all
stakeholders, including, but not necessarily limited to, the segments
of public postsecondary education and all affected state agencies.
SEC. 2. Section 11001 of the Education Code is amended to read:
11001. (a) The Chancellor of the California State University
shall establish an advisory committee to assist in selecting
proposals to be funded and developing criteria for project
evaluation. The committee shall be composed of the following
members:
(1) Two certificated secondary teachers, including at least one
junior high or intermediate teacher, appointed by the Superintendent
of Public Instruction.
(2) Two certificated secondary school employees with
responsibility for curriculum administration, appointed by the
Superintendent of Public Instruction.
(3) Two persons, including one director of a regional consortium
participating in the California Student Opportunity Access Program
established pursuant to Chapter 113 of the Statutes of 1978,
appointed by the California Higher Education Policy and Finance
Commission.
(4) Two representatives of the California Community Colleges, to
be appointed by the Board of Governors of the California Community
Colleges, at least one of whom shall be a faculty member.
(5) Two representatives of the California State University, to be
appointed by the Chancellor of the California State University, at
least one of whom shall be a faculty member.
(6) Two representatives of the University of California, appointed
by the President of the University of California, at least one of
whom shall be a faculty member.
(b) A faculty appointment to the advisory committee shall be made
by the appropriate appointing authority through consultation with the
faculty senate.
SEC. 3. Section 66010.6 of the Education Code is amended to read:
66010.6. (a) The California Higher Education Policy and Finance
Commission is the statewide policy and planning agency for higher
education. The commission is an advisor to the Governor, the
Legislature, and to the segments of higher education. The commission
shall serve as a principal fiscal and program adviser to the
Governor and the Legislature on postsecondary educational policy.
Consistent with Section 66903, the commission's responsibilities
shall include, but not necessarily be limited to, all of the
following:
(1) Analysis and recommendations related to long-range planning
for public postsecondary education.
(2) Analysis of state policy and programs involving the
independent and private postsecondary educational sectors.
(3) Analysis and recommendations related to program and policy
review.
(4) Resource analysis.
(5) Maintenance and publication of pertinent public information
relating to all aspects of postsecondary education.
(6) Administration of state-authorized student financial aid
programs available to students attending all segments of
postsecondary education.
(7) Maintenance and publication of pertinent public information
relating to all aspects of postsecondary education.
(8) Approving and regulating private postsecondary educational
institutions and developing state policies for private postsecondary
and vocational education in California.
(b) The commission shall consult with the postsecondary
educational segments and with relevant state agencies, including the
Student Aid Commission, the Superintendent of Public Instruction, and
other relevant parties, in its preparation of analyses and
recommendations to the Governor and the Legislature. However, the
commission shall remain an independent and nonpartisan body
responsible for providing an integrated and segmentally unbiased view
for purposes of state policy formulation and evaluation.
SEC. 4. Section 66021.2 of the Education Code is amended to read:
66021.2. Consistent with the state's historic commitment to
provide educational opportunity by ensuring both student access to
and selection of an institution of higher education for students with
financial need, the long-term policy of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established
pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42
shall be as follows:
(a) Commencing with the 2001-02 academic year and every year
thereafter, an applicant for a Cal Grant A or B award shall receive
an award that is not in excess of the financial need amount
determined by the California Higher Education Policy and Finance
Commission pursuant to Section 69432.9 if he or she complies with all
of the following requirements:
(1) Demonstrates financial need under the criteria adopted
pursuant to Section 69432.9.
(2) Attains a grade point average, as defined in Section 69432.7,
meeting the requirements of Chapter 1.7 (commencing with Section
69430) of Part 42.
(3) Complies with each of the eligibility criteria applicable to
the type of Cal Grant award for which he or she is applying.
(b) (1) The maximum Cal Grant A award for a student attending the
University of California or the California State University shall
equal the mandatory systemwide fees in each of those segments.
(2) The maximum Cal Grant B award for a student to which this
subdivision is applicable shall equal the mandatory systemwide fees
in the segment attended by the student, except for community college
students who receive waivers from the Board of Governors of the
California Community Colleges, plus the access award calculated as
specified in Article 3 (commencing with Section 69435) of Chapter 1.7
of Part 42, except that in the first year of enrollment in a
qualifying institution, the maximum award shall be only for the
amount of the access award.
(c) The maximum Cal Grant awards for students attending nonpublic
institutions shall be as follows:
(1) The maximum Cal Grant A award shall equal the tuition award
level established in the Budget Act of 2000, or the amount as
adjusted in subsequent annual budget acts.
(2) The maximum Cal Grant B award shall equal the amount of the
tuition award as established in the Budget Act of 2000, or the amount
as adjusted in subsequent annual budget acts, plus the amount of the
access costs specified in Section 69435, except that, in the first
year of enrollment in a qualifying institution, the maximum award
shall be only for the amount of the access award.
(d) Commencing with the 2000-01 academic year, and each academic
year thereafter, the Cal Grant C award shall be utilized only for
occupational or technical training.
(e) Commencing with the 2000-01 academic year, and each academic
year thereafter, the Cal Grant T award shall be used only for one
academic year of full-time attendance in a program of professional
preparation that has been approved by the California Commission on
Teacher Credentialing.
(f) An institution of higher education in this state that
participates in the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant
Program shall not reduce its level of per capita need-based
institutional financial aid to undergraduate students, excluding
loans, below the total level awarded in the 2000-01 academic year.
(g) The implementation of the policy set forth in this section
shall maintain a balance between the state's policy goals of ensuring
student access to and selection of an institution of higher
education for students with financial need and academic merit.
(h) It is the policy of the State of California that the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program supplement
the federal Pell Grant program.
(i) An award under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program shall not guarantee admission to an institution of
higher education or admission to a specific campus or program.
SEC. 5. Section 66022 of the Education Code is amended to read:
66022. (a) (1) The governing board of every community college
district, the Trustees of the California State University, the
Regents of the University of California, and the Board of Directors
of the Hastings College of the Law shall adopt regulations providing
for the withholding of institutional services from students or former
students who have been notified in writing at the student's or
former student's last known address that he or she is in default on a
loan or loans under the Federal Family Education Loan Program.
(2) "Default," for purposes of this section, means the failure of
a borrower to make an installment payment when due, or to meet other
terms of the promissory note under circumstances where the guarantee
agency finds it reasonable to conclude that the borrower no longer
intends to honor the obligation to repay, provided that this failure
persists for 180 days for a loan repayable in monthly installments,
or 240 days for a loan repayable in less frequent installments.
(b) The regulations adopted pursuant to subdivision (a) shall
provide that the services withheld may be provided during a period
when the facts are in dispute or when the student or former student
demonstrates to either the governing board of the community college
district, the Trustees of the California State University, the
Regents of the University of California, or the Board of Directors of
the Hastings College of the Law, as appropriate, or to the
California Higher Education Policy and Finance Commission, or both
the California Higher Education Policy and Finance Commission and the
appropriate entity or its designee, that reasonable progress has
been made to repay the loan or that there exists a reasonable
justification for the delay as determined by the institution. The
regulations shall specify the services to be withheld from the
student and may include, but are not limited to, the following:
(1) The provision of grades.
(2) The provision of transcripts.
(3) The provision of diplomas.
The adopted regulations shall not include the withholding of
registration privileges.
(c) When it has been determined that an individual is in default
on a loan or loans specified in subdivision (a), the California
Higher Education Policy and Finance Commission shall give notice of
the default to all institutions through which that individual
acquired the loan or loans.
(d) This section shall not impose any requirement upon the
University of California or the Hastings College of the Law unless
the Regents of the University of California or the Board of Directors
of the Hastings College of the Law, respectively, by resolution,
make this section applicable.
(e) Guarantors, or those who act as their agents or act under
their control, who provide information to postsecondary educational
institutions pursuant to this section, shall defend, indemnify, and
hold harmless the governing board of every community college
district, the Trustees of the California State University, the
Regents of the University of California, and the Board of Directors
of the Hastings College of the Law from action resulting from
compliance with this section when the action arises as a result of
incorrect, misleading, or untimely information provided to the
postsecondary educational institution by the guarantors, their
agents, or those acting under the control of the guarantors.
SEC. 6. Section 66901 of the Education Code is repealed.
SEC. 7. Section 66901 is added to the Education Code, to read:
66901. (a) The California Postsecondary Education Commission is
hereby established with nine members, to be appointed as follows:
(1) Five members shall be appointed by, and serve at the pleasure
of, the Governor.
(2) Two members shall be appointed by, and serve at the pleasure
of, the Senate Rules Committee.
(3) Two members shall be appointed by, and serve at the pleasure
of, the Speaker of the Assembly.
(b) The commission shall choose a chairperson from among its
members.
(c) The commission may meet as often as it deems necessary to
carry out its duties and responsibilities.
(d) The membership of the commission appointed pursuant to this
section shall assume its duties as of July 1, 2004.
SEC. 8. Section 66903 of the Education Code is amended to read:
66903. The commission has the following functions and
responsibilities:
(a) In its capacity as the statewide postsecondary education
planning and coordinating agency and adviser to the Legislature and
the Governor, the commission shall do all of the following:
(1) Require the governing boards of the segments of public
postsecondary education to develop and submit to the commission
institutional and systemwide long-range plans in a form determined by
the commission after consultation with the segments.
(2) Prepare a five-year state plan for postsecondary education
that shall integrate the planning efforts of the public segments with
other pertinent plans. The commission shall seek to resolve
conflicts or inconsistencies among segmental plans in consultation
with the segments. If these consultations are unsuccessful, the
commission shall report the unresolved issues to the Legislature with
recommendations for resolution. In developing the plan, the
commission shall consider at least the following factors:
(A) The need for, and location of, new facilities.
(B) The range and kinds of programs appropriate to each
institution or system.
(C) The budgetary priorities of the institutions and systems of
postsecondary education.
(D) The impact of various types and levels of student charges on
students and on postsecondary education programs and institutions.
(E) Appropriate levels of state-funded student financial aid.
(F) Access and admission of students to postsecondary education.
The educational programs and resources of independent and private
postsecondary institutions.
(3) Update the state plan every third year.
(4) Participate in appropriate stages of the executive and the
legislative budget processes as requested by the executive and the
legislative branches, and advise the executive and the legislative
branches as to higher education funding recommendations. It is not
intended that the commission hold independent budget hearings.
(5) Advise the Legislature and the Governor regarding the need
for, and location of, new institutions and campuses of public higher
education.
(6) Review proposals by the public segments for new programs, and
make recommendations regarding those proposals to the Legislature and
the Governor.
(7) Collect or conduct, or both collect and conduct, studies of
projected manpower supply and demand, in cooperation with appropriate
state agencies, and disseminate the results of those studies to
institutions of postsecondary education and to the public in order to
improve the information base upon which student choices are made.
(8) Act as a clearinghouse for postsecondary education information
and as a primary source of information for the Legislature, the
Governor, and other agencies, and develop and maintain a
comprehensive database that ensures comparability of data from
diverse sources.
(9) Review all proposals for changes in eligibility pools for
admission to public institutions and segments of postsecondary
education, and make recommendations to the Legislature, the Governor,
and institutions of postsecondary education.
(10) Upon request of the Legislature or the Governor, submit to
the Legislature and the Governor a report on all matters so requested
that are compatible with its role as the statewide postsecondary
education planning and coordinating agency. The commission may, from
time to time, submit to the Legislature and the Governor a report
that contains recommendations as to necessary or desirable changes,
if any, in the functions, policies, and programs of the several
segments of public and private postsecondary education.
(11) Undertake other functions and responsibilities that are
compatible with its role as the statewide postsecondary education
planning and coordinating agency.
(b) (1) The commission shall administer state-authorized student
financial aid programs pursuant to Chapter 2 (commencing with Section
69500) of Part 42. Whenever, by the provisions of any act of
Congress, a program of scholarships or grants or other aid for
undergraduate students is established that permits administration of
the program within a state by a state agency, the commission shall
administer the act within the state if the Governor and the
commission, by a majority vote of its entire membership, determine
that the particpiation by the state in the federal program under the
act would not interfere with or jeopardize the continuation of the
Cal Grant program established in Chapter 1.7 (commencing with Section
69430) of Part 42.
(2) The commission shall constitute the state commission on
federal scholarships or grants and may formulate a plan for
development and administration of any federal scholarship or grant
program within the state. Subject to Chapter 2 (commencing with
Section 69500) of Part 42, the commission is hereby vested with all
necessary power and authority to cooperate with the government of the
United States, or any agency or agencies thereof, in the
administration of any act of Congress establishing a scholarship or
grant program and the rules and regulations adopted thereunder.
Before adopting a state plan, the commission, acting as the state
commission on federal scholarships or grants, shall hold public
hearings as provided by the Administrative Procedure Act.
(c) (1) The commission shall approve and regulate private
postsecondary educational institutions and develop state policies for
private postsecondary and vocational institutions pursuant to
Chapter 7 (commencing with Section 94700) of Part 59.
(2) It is the intent of the Legislature that the commission's
responsibilities under this subdivision be funded solely through
approval fees and federal funding provided to implement the approval
process for courses offered to veterans by vocational and degree
granting institutions.
SEC. 9. Section 66903.5 is added to the Education Code, to read:
66903.5. (a) (1) There is established an advisory committee to
the commission and the director, consisting of the chief executive
officers of each of the public segments, or their designees, the
Superintendent of Public Instruction or his or her designee, an
executive officer of an independent college or university, and an
executive officer of a private postsecondary educational institution.
Commission meeting agenda items and associated documents shall be
provided to the committee in a timely manner for its consideration
and comments.
(2) The responsibilities of the advisory committee shall include,
but not necessarily be limited to, all of the following:
(A) Identifying issues and problems that involve all of the
segments of higher education and elementary and secondary education,
and working to develop a common approach to addressing the major
issues.
(B) Responding proactively to directions taken by the commission,
both by encouraging the segments to be active participants in the
conversation and by expressing the concerns of the segments to the
commission.
(C) Coordinating policy responses to commission proposals across
the segments.
(D) Providing a "first-alert" mechanism to raise issues and
concerns from any segment of the higher education community to the
state and the public.
(E) Providing support and assistance for commission projects and
studies.
(b) (1) There is established an advisory committee to the
commission and the director, consisting of the following:
(A) One representative from each of the following: the Board of
Cosmetology, the Board of Barber Examiners, the Board of Vocational
Nurse and Psychiatric Technician Examiners, the Board of Behavioral
Science Examiners, the California Committee of Bar Examiners, and the
Commissioner of Real Estate.
(B) Three representatives from private degree granting
institutions approved under Article 8 (commencing with Section 94900)
of Chapter 7 of Part 59 and three representatives from vocational
institutions approved under Article 9 (commencing with Section
949151) of Chapter 7 of Part 59.
(2) Commission meeting agenda items and associated documents
relevant to private postsecondary and vocational educational
institutions shall be provided to the committee in a timely manner
for its consideration and comments.
(c) The commission may appoint any subcommittee or advisory
committees it deems necessary to advise the commission on matters of
educational policy. The advisory committees may consist of commission
members or nonmembers, or both, including students, faculty members,
segmental representatives, governmental representatives, and
representatives of the public.
SEC. 10. Section 66904 is added to the Education Code, to read:
66904. The California Higher Education Policy and Finance
Commission shall succeed to the powers, duties, functions, and
obligations of the Student Aid Commission, and the Bureau for Private
Postsecondary and Vocational Education, commencing on January 1,
2004. On or before that date, the Private Postsecondary and
Vocational Education Administration Fund, the Student Tuition
Recovery Fund, and all ongoing projects, information and files
maintained by the Student Aid Commission and the Bureau for Private
Postsecondary and Vocational Education shall be transferred to the
California Postsecondary Education Commission. All state civil
service employees carrying out functions transferred to the
California Postsecondary Education Commission shall be transferred on
January 1, 2004.
SEC. 10.5. Chapter 11.1 (commencing with Section 66910) is added
to Part 40 of the Education Code, to read:
CHAPTER 11.1. CALIFORNIA HIGHER EDUCATION POLICY AND FINANCE
COMMISSION
66910. The responsibilities of the California Higher Education
Policy and Finance Commission include, but are not necessarily
limited to, all of the following:
(a) Identifying and advocating the public agenda for California
higher education with respect to the value and role of higher
education in
California's social, cultural, and economic development.
(b) Identifying and developing positions on the major budgetary
and policy issues related to the current and future direction of
higher education in California.
(c) Providing leadership by educating the public and policymakers
about the major higher education issues and proposing recommendations
to address these issues.
(d) Conducting quality research and public policy analysis leading
to concrete recommendations on the major issues facing higher
education.
(e) Effectively administering California's student financial
assistance programs, with high-quality service for all students.
(f) Effectively administering California's oversight laws for
private postsecondary and vocational schools with high-quality
service for private school educators and students.
SEC. 11. Section 69432.7 of the Education Code is amended to read:
69432.7. As used in this chapter, the following terms have the
following meanings:
(a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
(b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
(c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
(d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
(e) "Commission" means the California Postsecondary Education
Commission.
(f) "Enrollment status" means part-time status or full-time
status.
(1) Part time, for purposes of Cal Grant eligibility, is defined
as 6 to 11 semester units, inclusive, or the equivalent.
(2) Full time, for purposes of Cal Grant eligibility, is defined
as 12 or more semester units or the equivalent.
(g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
(h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
(i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
(j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
(k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants in the Cal Grant Program, as defined and adopted in
regulations by the commission for the 2001-02 academic year, which
shall be set pursuant to the following income and asset ceiling
amounts:
CAL GRANT PROGRAM INCOME CEILINGS
--------------------------------------------------------
' Cal Grant A, '
' C, and T Cal Grant B '
'------------------------------------------------------'
' Dependent and Independent students with dependents* '
' Family Size '
' Six or more $74,100 $40,700 '
' Five $68,700 $37,700 '
' Four $64,100 $33,700 '
' Three $59,000 $30,300 '
' Two $57,600 $26,900 '
' '
' Independent '
' Single, no dependents $23,500 $23,500 '
' Married $26,900 $26,900 '
--------------------------------------------------------
*Applies to independent students with dependents other than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS
-------------------------------------------------------
' Cal Grant A, '
' C, and T Cal Grant B '
'------------------------------------------------------'
' '
' Dependent** $49,600 $49,600 '
' Independent $23,600 $23,600 '
'------------------------------------------------------'
**Applies to independent students with dependents other than a
spouse.
The commission shall annually adjust the maximum household income
and asset levels based on the percentage change 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.
(l) "Qualifying institution" means any of the following:
(1) Any California private or independent postsecondary
educational institution that participates in the Pell Grant program
and in at least two of the following federal campus-based student aid
programs:
(A) Federal Work-Study.
(B) Perkins Loan Program.
(C) Supplemental Educational Opportunity Grant Program.
(2) Any nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for the purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
(3) Any California public postsecondary educational institution.
(m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards.
SEC. 12. Section 69506.5 of the Education Code is amended to read:
69506.5. Notwithstanding Section 69506, the California
Postsecondary Education Commission may, whenever it is determined to
be in the best interest of the state, develop and adopt regulations
that modify the methodology set forth in federal law or regulation
for determining the expected family contribution of students seeking
any state-funded financial assistance or the federal definition for
establishing the dependent and independent status of students seeking
any state-funded financial assistance. It is the Legislature's
intent that these regulations promote consistency between federal and
state standards, encourage the maximum contribution from parents
while being sensitive to individual student financial and personal
circumstances, and encourage a simple financial aid application
process.
(a) The regulations developed pursuant to this section shall be
adopted as California Postsecondary Education Commission regulations
in accordance with the provisions of Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code.
(b) Prior to adopting or amending regulations pursuant to this
section, the commission shall conduct, and make public, a full
analysis which includes at least an examination and explanation of
the cost of the change, the effect on student applicant and recipient
eligibility and award levels, and the effects of implementing the
criteria on those programs administered by the commission.
(c) Not later than July 1 of the year following any modifications
to the methodology for determining expected family contribution or
the federal definition of student dependence or independence made
pursuant to this section, the commission shall report to the Governor
and the Legislature the impact of the changes on those programs
administered by the commission.
SEC. 13. Section 69507.5 of the Education Code is amended to read:
69507.5. (a) Except as provided in subdivision (b), no student
shall receive a grant or fellowship administered by the California
Postsecondary Education Commission if he or she has previously
defaulted on any student loan, or has failed to repay a federal or
state student grant where required to do so.
(b) If a student has made satisfactory arrangements to repay a
default on a previous student loan, or to repay grant funds where
required to do so, the student may be eligible to receive a grant or
fellowship administered by the Student Aid Commission.
SEC. 14. Section 69508 of the Education Code is amended to read:
69508. When federal regulations defining the financial
independence of students are altered, the California Postsecondary
Education Commission shall as soon as possible, report to the
Legislature on what changes are necessary to conform this article to
federal standards.
SEC. 15. The heading of Article 2 (commencing with Section 69510)
of Chapter 2 of Part 42 of the Education Code is amended to read:
Article 2. The California Postsecondary Education Commission
SEC. 16. Section 69510 of the Education Code is repealed.
SEC. 17. Section 69510 is added to the Education Code, to read:
69510. (a) The California Postsecondary Education Commission
shall do all of the following:
(1) Report, on or before April 1 of each year, statistical data
examining the impact and effectiveness of state-funded student
financial aid programs. The commission shall utilize common criteria
in determining the impact of these programs and shall have the
authority to obtain any data from postsecondary educational
institutions necessary for the reports.
(2) Collect and disseminate data concerning the financial
resources and needs of students and potential students, and the scope
and impact of existing state, federal, and institutional student aid
programs.
(3) Report, on or before April 1 of each year, the aggregate
financial need of individuals seeking access to postsecondary
education and the degree to which current student aid programs meet
this legitimate financial need.
(4) Develop and report annually the distribution of funds and
awards among income groups, ethnic groups, grade point average
levels, and postsecondary education segments.
(5) Prepare and disseminate information regarding the criteria
utilized in distributing available student aid funds.
(b) The commission may expend funds for the purpose of
disseminating information about all institutional, state, and federal
student aid programs to potential applicants. This distribution of
information shall primarily focus on potential applicants with the
greatest financial need.
SEC. 18. Section 69511 of the Education Code is repealed.
SEC. 19. Section 69511.5 of the Education Code is repealed.
SEC. 20. Section 69515 of the Education Code is amended to read:
69515. As used in this division, "commission" means the
California Postsecondary Education Commission created by this
article.
SEC. 21. Section 69517 of the Education Code is amended to read:
69517. (a) The commission, in consultation with an advisory
committee of students and representatives of postsecondary
institutions, may make adjustments to award selection procedures and
selection criteria. In determining adjustments, the commission shall
consider at least all of the following factors:
(1) The impact of the adjustments on the distribution of funds and
awards among income groups, ethnic groups, and grade point average
levels.
(2) The impact of the adjustments on the distribution of funds and
awards among postsecondary education segments.
(3) The costs of implementing proposed adjustments.
(4) The availability of financial aid from other sources for
students who qualify for an award.
(b) The commission may also consider the impact of inflation in
the proposed adjustments pursuant to subdivision (a).
(c) In proposing changes to the procedures and criteria for award
selection that would result in a substantive change in the recipient
population, the commission shall submit the proposed changes for
public review and comment in accordance with procedures established
in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code.
SEC. 22. Section 69517.5 of the Education Code is amended to read:
69517.5. The commission shall, with the assistance of the
Attorney General's office, seek refunds on any awards to students in
this chapter which resulted from the student or his or her parents,
or both, reporting information concerning their status incorrectly,
with the incorrect information leading to the establishment of the
student's financial eligibility to receive an award.
SEC. 23. Section 69518 of the Education Code is amended to read:
69518. (a) By September 15 of each fiscal year, the commission
shall submit budget change proposals to the Department of Finance for
inclusion in the Governor's Budget prepared pursuant to Section 12
of Article IV of the California Constitution.
(b) The budget change proposals submitted pursuant to subdivision
(a) shall include, but not be limited to, an analysis of the impact
of any proposed adjustments in the distribution of funds and awards.
(c) Any supporting materials prepared for the Student Aid
Commission's consideration and public review and comment pursuant to
this section, including, when it becomes available, data pertaining
to the impact of any proposed adjustments on the distribution of
funds and awards among income groups, ethnic groups, grade point
average levels, and postsecondary education segments, shall be
incorporated within the expenditure plan.
(d) If the commission proposes, in its budget change proposals,
adjustments to the maximum grant, number of grants, and the income
ceiling for grant awards made pursuant to Section 69532, at least the
following factors shall be considered in determining the appropriate
adjustments:
(1) The impact of inflation.
(2) The availability of financial aid from other sources for
students who would qualify for a grant award.
(3) Any changes in the level of educational support provided to
students at public colleges and universities in the state.
(4) The impact of proposed adjustments in the maximum grant and in
the income ceiling upon the utilization of public and private
postsecondary educational institutions.
(5) The number of applicants eligible to receive an award in the
previous year who did not receive an award in the previous year.
SEC. 24. Section 69532 of the Education Code is amended to read:
69532. Cal Grant Program awards shall be known as "Cal Grant A
awards," "Cal Grant B awards," "Cal Grant C awards," and "Cal Grant T
awards." The maximum award in each category shall be determined in
the annual Budget Act.
(a) Cal Grant A awards shall be used only for tuition and student
fees in an instructional program of no less than two academic years.
Commencing as soon as feasible, but no later than the award cycle
that provides awards for the 1999-2000 academic year, the eligibility
criteria for first-time Cal Grant award recipients who are community
college students and transfer to a four-year college or university
shall be no more stringent than the eligibility criteria for other
first-time Cal Grant award recipients attending a four-year college
or university.
(b) Cal Grant B awards shall be used only for tuition, student
fees, and subsistence costs in an instructional program of no less
than one academic year. Subsistence costs are living expenses,
transportation, supplies, and books. Commencing as soon as feasible,
but no later than the award cycle that provides awards for the
1999-2000 academic year, the eligibility criteria for first-time Cal
Grant award recipients who are community college students and
transfer to a four-year college or university shall be no more
stringent than the eligibility criteria for other first-time Cal
Grant award recipients attending a four-year college or university.
(c) Cal Grant C awards shall be used only for occupational or
technical training in a course of no less than four months. There
shall be a minimum of 1,570 new Cal Grant C awards each year.
(d) Cal Grant T awards shall be used only for tuition and student
fees for a maximum of one academic year of full-time attendance in a
program of professional preparation that has been approved by the
Commission on Teacher Credentialing. There shall be a minimum of
3,000 new Cal Grant T awards each year. As a condition of receiving
a Cal Grant T award, a recipient shall teach for one year in a
low-performing school as defined in subdivision (c) of Section 44765
for each two thousand dollar ($2,000) incentive provided pursuant to
Section 69532 through the Cal Grant T Program, for a period not to
exceed four years. Any recipient who fails to meet his or her
teaching obligation shall repay the Cal Grant T award.
(e) The California Postsecondary Education Commission shall
evaluate the Cal Grant T Award program from its inception to
determine, of the total number of recipients, the number of
recipients who become employed as public school teachers. This
evaluation shall be reported on an annual basis to the Governor and
the Legislature beginning July 1, 2001.
SEC. 25. Section 69534.1 of the Education Code is amended to read:
69534.1. (a) The California Postsecondary Education Commission
shall authorize the use of standardized student financial aid
application forms for California. These forms shall be simple in
nature and collect common data elements required by the federal
government and those elements needed to meet the objectives of
state-funded and institutional financial aid programs.
(b) These forms shall be utilized for the Cal Grant Program, all
other programs funded by the state or a public institution of
postsecondary education (except for the Board of Governors' Financial
Assistance Program authorized by Chapter 1118 of the Statutes of
1987, for which a simplified form designed for that sole purpose may
be used), and all federal programs administered by a public
postsecondary education institution.
(c) Supplemental forms may be utilized if the forms are essential
to accomplishing the objectives of individual programs. All
supplemental forms utilized by public postsecondary educational
institutions shall be subject to approval by the commission, and
forms shall be identical for programs with similar objectives, as
determined by the commission.
(d) Public postsecondary institutions are encouraged to, but may
decide whether to, use the standard application forms for funds
provided by private donors.
(e) The Legislature finds and declares that it is in the best
interest of students that all postsecondary education institutions in
California participating in federal and state-funded financial aid
programs accept the standard application forms authorized by the
Student Aid Commission.
SEC. 26. Section 69534.4 of the Education Code is amended to read:
69534.4. The California Postsecondary Education Commission may
enter into contracts with a public agency or a private entity to
improve the processing and distribution of grants, fellowships, and
loans through the use of electronic networks and unified databases.
SEC. 27. Section 69535.5 of the Education Code is amended to read:
69535.5. The California Postsecondary Education Commission may
determine that an advanced payment is essential to ensure that funds
provided pursuant to this chapter to assist students to enroll in
postsecondary education are available at the time students enroll.
Upon making that determination, the commission may, based on
institutional academic calendars, advance per term to authorized
postsecondary educational institutions the funds for eligible
students who have indicated they will attend those institutions less
an amount based on historical claim enrollment attrition information.
Each institution shall disburse the funds in accordance with the
provisions set forth in the Institutional Agreement between the
commission and the institution.
SEC. 28. Section 69541 of the Education Code is amended to read:
69541. (a) The California Postsecondary Education Commission, to
the extent funds are appropriated for the purposes of this section in
the annual Budget Act, shall provide a supplemental grant equal to
two thousand eight hundred dollars ($2,800) to recipients of Cal
Grant awards who fulfill the following requirements:
(1) The person has been declared a dependent or ward of the court
pursuant to Section 300 or Section 602 of the Welfare and
Institutions Code.
(2) The person, within the 60-day period immediately prior to his
or her 18th birthday, had a permanent plan of long-term foster care
or guardianship.
(3) The person received aid pursuant to Part 3 (commencing with
Section 11000) of Division 9 of the Welfare and Institutions Code.
(b) The State Department of Social Services shall enter into an
interagency agreement with the California Postsecondary Education
Commission to allocate funds to the commission appropriated in the
Budget Act for the purposes of this section.
SEC. 29. Section 69546 of the Education Code is amended to read:
69546. The California Postsecondary Education Commission shall
each year recommend to the Legislature concerning the allocation of
funds from the federal state student incentive grant program and the
programs authorized in subdivisions (a), (b), and (c) of
Section 69532.
SEC. 30. Section 69546.5 of the Education Code is amended to read:
69546.5. The California Postsecondary Education Commission shall
allocate federal and state student incentive grant funds among the
Cal Grant A, B, and C programs.
SEC. 31. Section 69561 of the Education Code is amended to read:
69561. (a) The Student Opportunity and Access Program is
administered by the California Postsecondary Education Commission.
(b) The commission may apportion funds on a progress payment
schedule for the support of projects designed to increase the
accessibility of postsecondary educational opportunities for any of
the following elementary and secondary school students:
(1) Students who are from low-income families.
(2) Students who would be the first in their families to attend
college.
(3) Students who are from schools or geographic regions with
documented low-eligibility or college participation rates.
(c) These projects shall primarily do all of the following:
(1) Increase the availability of information for these students on
the existence of postsecondary schooling and work opportunities.
(2) Raise the achievement levels of these students so as to
increase the number of high school graduates eligible to pursue
postsecondary learning opportunities.
(d) Projects may assist community college students in transferring
to four-year institutions, to the extent that project resources are
available.
(e) Projects may provide assistance to low-income fifth and sixth
grade students and their parents in order to implement outreach
efforts designed to use the future availability of financial
assistance as a means of motivating students to stay in school and
complete college preparatory courses.
(f) Each project shall be proposed and operated through a
consortium that involves at least one secondary school district
office, at least one four-year college or university, at least one
community college, and at least one of the following agencies:
(1) A nonprofit educational, counseling, or community agency.
(2) A private vocational or technical school accredited by a
national, state, or regional accrediting association recognized by
the United States Department of Education.
(g) The commission, in awarding initial project grants, shall give
priority to proposals developed by more than three eligible
agencies. Projects shall be located throughout the state in order to
provide access to program services in rural, urban, and suburban
areas.
(h) The governing board of each project, comprising at least one
representative from each entity in the consortium, shall establish
management policy, provide direction to the project director, set
priorities for budgetary decisions that reflect the specific needs of
the project, and assume responsibility for maintaining the required
level of matching funds, including solicitations from the private
sector and corporate sources.
(i) Prior to receiving a project grant, each consortium shall
conduct a planning process and submit a comprehensive project
proposal to include, but not be limited to, the following
information:
(1) The agencies participating in the project.
(2) The students to be served by the project.
(3) The ways in which the project will reduce duplication and
related costs.
(4) The methods for assessing the project's impact.
(j) Each project shall include the direct involvement of secondary
school staff in the daily operations of the project, with preference
in funding to those projects that effectively integrate the
objectives of the Student Opportunity and Access Program with those
of the school district in providing services that are essential to
preparing students for postsecondary education.
(k) Each project shall maintain within the project headquarters a
comprehensive student-specific information system on students
receiving services through the program in grades 11 and 12 at
secondary schools within the participating districts. This
information shall be maintained in a manner consistent with the law
relating to pupil records.
(l) At least 30 percent or the equivalent of each project grant
shall be allocated for stipends to peer advisers and tutors who meet
all of the following criteria:
(1) Work with secondary school students.
(2) Are currently enrolled in a college or other postsecondary
school as an undergraduate or graduate student.
(3) Have demonstrated financial need for the stipend.
(m) Each project should work cooperatively with other projects in
the program and with the commission to establish viable student
services and sound administrative procedures and to ensure
coordination of the activities of the project with existing
educational opportunity programs. The California Postsecondary
Education Commission may develop additional regulations regarding the
awarding of project grants and criteria for evaluating the
effectiveness of the individual projects.
SEC. 32. Section 69561.5 of the Education Code is amended to read:
69561.5. (a) In collaboration with the various segments of higher
education, the California Postsecondary Education Commission shall
develop and establish a pilot program entitled "Transfer: Making It
Happen." This program shall encourage community college students to
transfer to a four-year institution of higher education, and assist
them in this endeavor by providing academic preparation and
information on financial aid opportunities. The program shall be
modeled after the "College: Making It Happen" program.
(b) The pilot program established by this section shall target
students who attend those community colleges or high schools that
participate in one of the Student Opportunity and Access Program
consortia, who are primarily from low-income households, who would be
the first in their families to attend college, or who are from
schools or geographic regions with documented low college eligibility
or college participation rates.
(c) (1) The Student Opportunity and Access Program shall provide,
in close collaboration with the personnel of the California Community
Colleges who are responsible for advising students about transfer
opportunities, each of the following direct student services under
this section:
(A) Provision of specialized academic and financial aid
information related to a transfer to an institution that grants
baccalaureate degrees.
(B) Provision of personalized attention, such as one-on-one
counseling and group workshops that inform students of opportunities
to transfer to an institution that grants baccalaureate degrees.
(C) Working closely with community college transfer centers in
strengthening direct services and outreach provided to students who
plan to transfer to an institution that grants baccalaureate degrees.
(2) The services listed in paragraph (1) shall be offered to, but
not necessarily limited to, students who indicate an interest in
transferring to an institution that grants baccalaureate degrees.
(d) (1) During the third year of the operation of the pilot
program established by this section, the California Postsecondary
Education Commission, in consultation with the Legislative Analysts'
office, shall evaluate the program in order to determine its
effectiveness. The evaluation shall include, but not necessarily be
limited to, recommendations on both of the following:
(A) How the program may improve the services it provides.
(B) How the program may be expanded beyond those community
colleges that participate in one of the Student Opportunity and
Access Program consortia.
(2) On or before December 1, 2004, the California Postsecondary
Education Commission shall submit to the Governor and the Legislature
a report including all of the findings and recommendations of its
evaluation.
(e) This section shall remain in effect only until January 1, 2006,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2006, deletes or extends that date.
SEC. 33. Section 69562 of the Education Code is amended to read:
69562. The California Postsecondary Education Commission shall
establish a 12-member project grant advisory committee to advise
project directors and the commission on the development and operation
of the projects, and consisting of the following:
(a) Three representatives of outreach programs, representing the
University of California, the California State University, and the
California Community Colleges, appointed by their respective
governing boards.
(b) One representative of private colleges and universities,
appointed by the Association of California Independent Colleges and
Universities.
(c) One representative of the California Postsecondary Education
Commission, appointed by the commission.
(d) Two secondary school staff, appointed by the Superintendent of
Public Instruction.
(e) Two persons representing the general public, one appointed by
the Speaker of the Assembly and the other by the Senate Rules
Committee.
(f) Two postsecondary students, both appointed annually by the
California Postsecondary Education Commission.
(g) One college campus financial aid officer, appointed by the
California Postsecondary Education Commission.
SEC. 34. Section 69563 of the Education Code is amended to read:
69563. The commission shall periodically review and evaluate the
Student Opportunity and Access Program as part of the commission's
regular assessment of student academic development programs in the
state. The commission shall include in the evaluation an assessment
of the admission, progress, retention, and graduation of program
participants from postsecondary institutions.
SEC. 35. Section 69613 of the Education Code is amended to read:
69613. (a) (1) Any person enrolled in an eligible institution, or
any person who agrees to participate in a teacher trainee or teacher
internship program, may be eligible to enter into an agreement for
loan assumption, to be redeemed pursuant to Section 69613.2 upon
becoming employed as a teacher. In order to be eligible to enter
into an agreement for loan assumption, an applicant shall satisfy all
of the conditions specified in subdivision (b).
(2) As used in this article, "eligible institution" means a
postsecondary institution that is determined by the California
Postsecondary Education Commission to meet both of the following
requirements:
(A) The institution is eligible to participate in state and
federal financial aid programs.
(B) The institution maintains a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.
(b) (1) The applicant has completed at least 60 semester units, or
the equivalent, and is enrolled in an academic program leading to a
baccalaureate degree at an eligible institution, has agreed to
participate in a teacher trainee program or teacher internship
program, or has been admitted to a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.
(2) The applicant is currently enrolled, or has been admitted to a
program in which he or she will be enrolled on at least a half-time
basis, as determined by the participating institution. The applicant
shall agree to maintain satisfactory academic progress and a minimum
of half-time enrollment, as defined by the participating eligible
institution.
(3) The applicant has been judged by his or her postsecondary
institution to have outstanding ability on the basis of criteria that
may include, but need not be limited to, any of the following:
(A) Grade point average.
(B) Test scores.
(C) Faculty evaluations.
(D) Interviews.
(E) Other recommendations.
(4) The applicant has received, or is approved to receive, a loan
under one or more of the following designated loan programs:
(A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071
et seq.).
(B) Any loan program approved by the California Postsecondary
Education Commission.
(5) The applicant has agreed to teach full time for at least four
consecutive academic years after obtaining a teaching credential in a
public elementary or secondary school in this state, in a subject
area that is designated as a current or projected shortage area by
the Superintendent of Public Instruction, or at a school that, at the
time that the teacher is hired, meets any of the following criteria:
(A) It serves a large population of pupils from low-income
families, as designated by the Superintendent of Public Instruction.
(B) It has 20 percent or more teachers holding emergency permits.
For the purposes of this paragraph, "teachers holding emergency
permits" includes persons who teach pursuant to waivers of credential
requirements or who are interns.
(C) It is a low-performing school.
(c) No applicant who has completed fewer than 60 units, or the
equivalent, shall be eligible under this section to participate in
the loan assumption program set forth in this article.
(d) The agreements entered into each year pursuant to subdivision
(b) at each eligible institution or participating school district or
county office of education shall be with applicants who meet the
criteria specified in paragraph (3) of subdivision (b) of Section
69612 or agree to teach in any of the subject areas listed pursuant
to that section. An agreement shall remain valid even if the subject
area under which an applicant becomes eligible to enter into an
agreement ceases to be a designated shortage field by the time the
applicant becomes a teacher.
(e) For the purposes of calculating eligible years of teaching for
the redemption of an award, the designation by the Superintendent of
Public Instruction of a newly-opened school pursuant to Section
52056 shall apply retroactively from the time of opening the school.
(f) A person participating in the program pursuant to this section
shall not enter into more than one agreement.
SEC. 36. Section 69618 of the Education Code is amended to read:
69618. (a) The Legislature hereby recognizes the growing need for
new faculty members at California's colleges and universities. This
need will be fueled largely by two factors: (1) the large number of
current faculty approaching retirement age who will need to be
replaced; and (2) the expected growth in enrollment demand in
California.
(b) The Legislature finds that the rising costs of higher
education, coupled with a shift in available financial aid from
scholarships and grants to loans, make loan repayment options an
important consideration in student's decision to pursue a graduate
education.
(c) It is the intent of the Legislature that the Graduate
Assumption Program of Loans for Education be designed to encourage
persons to complete their graduate educations and serve as faculty at
an accredited California college or university.
(d) As used in this article, "commission" means the California
Postsecondary Education Commission.
SEC. 37. Section 69618.3 of the Education Code is amended to read:
69618.3. The terms of the loan assumptions granted under this
article shall be as follows, subject to the specific terms of each
warrant:
(a) After a program participant has completed one academic year,
or the equivalent of full-time teaching, at one or more regionally
accredited, eligible California colleges or universities, the
commission shall assume up to two thousand dollars ($2,000) of the
participant's outstanding liability under one or more of the
designated loan programs. The initial year of eligible teaching
shall begin within 10 years of receiving an initial conditional
warrant from the commission.
(b) After the program participant has completed two consecutive
academic years, or the equivalent of full-time teaching, at one or
more regionally accredited California colleges or universities, the
commission shall assume up to an additional two thousand dollars
($2,000) of the participant's outstanding liability under one or more
of the designated loan programs, for a total loan assumption of up
to four thousand dollars ($4,000).
(c) After a program participant has completed three consecutive
academic years, or the equivalent of full-time teaching, at one or
more regionally accredited California colleges or universities, the
commission shall assume up to an additional two thousand dollars
($2,000) of the participant's outstanding liability under one or more
of the designated loan programs, for a total loan assumption of up
to six thousand dollars ($6,000).
SEC. 38. Section 69620 of the Education Code is amended to read:
69620. There is hereby established the Child Development Teacher
and Supervisor Grant Program, to be administered by the California
Postsecondary Education Commission, with participation by students
attending California public or private two-year or four-year
postsecondary educational institutions who intend to teach or
supervise in the field of child care and development in a licensed
children's center. The California Postsecondary Education
Commission may enter into an agreement with another state or local
agency to administer this program.
SEC. 39. Section 69622 of the Education Code is amended to read:
69622. (a) Participants shall be enrolled in an approved course
of study leading to the teacher, site supervisor, or program director
level of the Child Development Permit.
(b) An applicant shall be eligible to participate if he or she
meets one of the following criteria:
(1) Is nominated by a postsecondary institution.
(2) Is nominated by his or her employing agency that holds an
approved waiver of staffing qualifications on behalf of the
applicant.
(c) From the list of applicants who are eligible under
subdivisions (a) and (b), the California Postsecondary Education
Commission, or an agency designated by the commission, shall select
participants on the basis of their demonstrated financial need and
academic achievement, which may include, but not be limited to, high
school grade-point average, college grade-point average, or academic
test scores.
(d) Participants shall maintain no less than half-time enrollment
and satisfactory academic progress as defined by the postsecondary
educational institution.
(e) Recipients of a grant may renew their participation by
maintaining satisfactory academic progress, financial need, and
intent to pursue the approved course of study leading to the teacher,
site supervisor, or program director level as provided in
subdivision (a). The maximum amount any one recipient may receive
through the grant program is six thousand dollars ($6,000).
(f) Participants may not concurrently receive benefits from the
grant program under this article and from the Child Development
Teacher Loan Assumption Program.
SEC. 40. Section 69623 of the Education Code is amended to read:
69623. (a) To receive a grant under this article, a participant
shall enter into a contractual agreement with the California
Postsecondary Education Commission under which the participant agrees
to do all of the following:
(1) Pursue a course of study leading to the Child Development
Permit at the teacher, site supervisor, or program director level.
(2) Maintain full-time employment in a licensed children's center
in California for a period of one year for each year in which grant
assistance was received and provide the California Postsecondary
Education Commission with evidence of compliance with this
requirement.
(b) Each participant shall complete and return to the California
Postsecondary Education Commission an employment verification for
each year of service as a teacher, instructor, or supervisor. A year
of employment may be based on a calendar year or a school year.
(c) The California Postsecondary Education Commission shall
develop appropriate mechanisms to document and report annually to the
State Department of Education regarding compliance with the
requirements of paragraph (2) of subdivision (a).
SEC. 41. Section 69625 of the Education Code is amended to read:
69625. (a) In order to accomplish the purposes set forth in this
article, commencing January 1, 1998, the Controller, the State
Department of Education, the State Department of Social Services, or
any other state agency receiving funds from the Child Care
Development Block Grant Act of 1990 (P.L. 97-35) shall make these
funds available to the California Postsecondary Education Commission
for this program only to the extent this program is incorporated
into, and approved in, the state plan established pursuant to
subsection (a) of Section 658E of Subchapter C as contained in
Section 5082 of the Omnibus Budget Reconciliation Act of 1990 (P.L.
101-508).
(b) For the purpose of implementing this article, the State
Department of Education or designated state agency shall enter into
an interagency agreement with the California Postsecondary Education
Commission to allocate federal funds received annually for purposes
of this program and to include funds for the administrative costs.
(c) On or before January 1, 1999, and each year thereafter, the
California Postsecondary Education Commission shall report to the
State Department of Education or designated state agency regarding
the federal funding level required to award 100 new grants and all of
the renewal grants annually. The State Department of Education or
designated state agency shall take these amounts into consideration
when developing the state plan referenced in subdivision (a). The
State Department of Education or designated state agency shall notify
the California Postsecondary Education Commission of any revision
to the federal funding level as reflected in changes to the Child
Care and Development Block Grant State Plan.
(d) This program is contingent upon the receipt of federal funds
for the childcare and development block grant for the purposes of
implementing this program.
SEC. 42. Section 69626 of the Education Code is amended to read:
69626. (a) The California Postsecondary Education Commission
shall administer the Child Development Teacher and Supervisor Grant
Program. This includes determining the application procedures and
the selection criteria for grant awards.
(b) It is the intent of the Legislature that the California
Postsecondary Education Commission consult with the Child Development
Division of the California Department of Education, postsecondary
educational institutions, and child care and development
representatives of statewide organizations regarding the development
of the program, including the program requirements and selection
criteria.
SEC. 43. Section 69627 of the Education Code is amended to read:
69627. The California Postsecondary Education Commission shall
report to the Governor and the Legislature by January 1, 2001, on the
Child Development Teacher and Supervisor Grant Program to assess the
following:
(a) The number of applicants annually.
(b) The number of participants annually.
(c) The rate of compliance with academic and employment
requirements.
(d) Participating postsecondary educational institutions.
(e) Needs assessment for program growth based on the eligible pool
of applicants.
(f) Participation and success rates for each permit.
(g) The amount of grant funds awarded each year, by institution.
SEC. 44. Section 69730 of the Education Code is amended to read:
69730. There is hereby established the Willie L. Brown, Jr.
Community Service Scholarship Program, the purpose of which shall be
to reward pupils for volunteering to serve their communities, to
address serious social and economic community needs, and to increase
the tendency of youth to be involved in public service. The program
shall be administered by the California Postsecondary Education
Commission. Pursuant to that authority, the commission shall do all
of the following:
(a) Provide information regarding the program to each school
district in this state. Any public high school of this state, other
than any continuation or alternative high school, may participate in
the program upon request. Each participating high school shall
provide adequate notice to its pupils of the availability of the
scholarships authorized under this article.
(b) Establish a model scholarship application form of no more than
one page in length, requiring no more than 25 data elements, and
provide copies of that application form to all participating high
schools. Participating high schools may use either the model form or
their own scholarship application form. Scholarship funds to be
awarded pursuant to this article shall be provided without regard to
the requirements otherwise set forth in this chapter.
(c) Conduct periodic reviews in order to ensure that the selection
of scholarship recipients is conducted in compliance with this
article.
SEC. 45. Section 69731 of the Education Code is amended to read:
69731. (a) At least one scholarship under this article shall be
made available each year to each high school participating in the
program to award to a pupil who is enrolled in that high school. One
additional scholarship shall be available each year to each
participating high school for each 1,000 pupils enrolled in that
school in excess of 1,000 pupils.
(b) Each participating high school shall establish and maintain a
community service scholarship committee that consists of the
following persons:
(1) One full-time teacher employed by the school.
(2) One employee of the school who is a classified employee or
pupil counselor, and who has contributed to the academic or personal
development of high school pupils. In the event that no person meets
those qualifications, the principal of the school shall designate
any other employee of the school to serve on the committee.
(3) One parent of any pupil who is enrolled in the high school but
is not an applicant for a scholarship under this article.
(4) Two representatives from community organizations or agencies,
as described in subdivision (c).
(c) Scholarships made available to the participating high school
shall be awarded by the community service scholarship committee to
pupil applicants determined by a majority vote of the membership of
the committee to have made significant contributions to the community
through community service. For the purposes of this article,
"community service" means volunteer work for any nonprofit
organization that meets the description set forth in paragraph (3) of
subdivision (c) of Section 501 of Title 26 of the United States
Code, or for any other community service agency or organization that
is nonprofit, nonpartisan, and nonsectarian, which work is performed
to further purposes of education, environmental quality, health care,
local, state, or federally funded public assistance, public safety
crime prevention or control, transportation, recreation, housing and
neighborhood improvement, rural development, conservation, child
care, senior citizens' quality of life, outdoor beautification, or
any other purpose of human betterment and community improvement. In
the event that the community service scholarship committee determines
that the number of applicants who qualify for a scholarship under
this subdivision exceeds the number of scholarships available to the
high school under this article, the committee shall apply the
following additional criteria in order to select scholarship
recipients:
(1) The applicant's financial status, including his or her ability
to finance a college education.
(2) The extent to which the applicant's capacity to provide
volunteer service has been limited by the applicant's other
extracurricular activities, summer or part-time employment, or
responsibilities to his or her family.
(3) Whether the applicant would be the first member of his or her
immediate family to attend an institution of higher education.
(d) Each scholarship awarded shall be for a period of one year,
subject to the requirement that no scholarship funding shall be
payable as to any academic term in which the recipient fails to both
maintain a course load of at least six semester units or the
equivalent and meet or exceed the institution's standards for
satisfactory academic progress.
(e) No later than June 15 of each year, the community service
scholarship committee of each participating high school shall notify
the California Postsecondary Education Commission of the names of the
scholarship recipients selected by the committee, or, alternatively,
that no pupil applicants were determined by the committee to qualify
for a scholarship pursuant to subdivision (c). No later than August
15 of that year, the commission shall provide funding for the
subsequent academic year for each scholarship awarded pursuant to
this section, in an amount equal to the amount of the undergraduate
student fees charged for that school year by the University of
California, except that no allotment shall be in an amount of less
than one thousand five hundred dollars ($1,500).
(f) Scholarship funding provided under this article may be applied
to educational costs incurred by the recipient pursuant to his or
her attendance at an institution of higher education. Those costs
may include, but are not necessarily limited to, tuition, fees,
instructional materials, and room and board.
(g) Scholarships shall be funded under this article to the extent
funds are made available for that purpose.
(h) This article shall not be construed to prevent any
participating high school or pupil from seeking private or other
funding sources to supplement the amount of any scholarship or
scholarships awarded under this article. Any scholarship or
scholarships awarded under this article shall augment, and not
supplant, student financial aid from other sources.
SEC. 46. Section 69740 of the Education Code is amended to read:
69740. Unless the context requires otherwise, the definitions in
this section govern the construction of this article.
(a) "Commission" means the California Postsecondary Education
Commission.
(b) "Eligible education and training programs" means education and
training programs approved by the commission that lead to
eligibility for a license to practice law as a licensed attorney.
(c) "Eligible expenses" means reasonable expenses associated with
the costs of acquiring an education such as tuition, books,
equipment, fees, room and board, and other expenses determined by the
commission.
(d) "Eligible participant" means a licensed attorney who has been
admitted to the program and is a resident of this state and who can
provide proof of residency in this state.
(e) "Licensed attorney" means an attorney who resides in this
state who has successfully passed the California bar examination and
has been admitted to practice in this state or has otherwise been
licensed to practice law in this state by the State Bar of
California.
(f) "Loan repayment" means a loan that is paid in full or in part
if the participant renders legal services in this state in a public
interest area of the law.
(g) "Participant" means a licensed attorney who has been admitted
to the program and has commenced practice as a licensed attorney in
this state in a public interest area of the law.
(h) "Program" means the Public Interest Attorney Loan Repayment
Program.
(i) "Public interest area of the law" means those areas of the law
determined by the commission, in consultation with the advisory
committee, to serve the public interest, including, but not
necessarily limited to, providing direct legal service at a local (1)
legal services organization, (2) prosecuting attorney's office, (3)
child support agency office, or (4) criminal public defender's
office. For the purposes of this article, a "legal services
organization" is a legal services provider in California that serves
a clientele over 70 percent of whom are low-income persons according
to applicable federal income guidelines.
(j) "Required service obligation" means an obligation by the
participant to provide legal services in this state in a public
interest area of the law as established pursuant to this article.
SEC. 47. Section 69763.1 of the Education Code is amended to read:
69763.1. (a) If a borrower defaults on a guaranteed student loan
and the lender's default claim has been paid, the California
Postsecondary Education Commission shall fulfill the collection
efforts required by federal law, which includes initiating a civil
suit against the borrower for repayment of the loan.
(b) After the period specified in federal law for commencing
action, the amount of the promissory note, plus interest and costs,
may be collected by the filing of a certificate requesting judgment
pursuant to subdivision (c) or by other appropriate civil action.
(c) If the loan principal, interest, and predefault and collection
costs are not paid when due, and there is evidence that the borrower
does not intend to pay under the terms of the promissory note or
promissory notes, the commission may file in the office of the Clerk
of the Superior Court of Sacramento County, or any other county, a
certificate specifying the amount of the loan principal, interest,
and predefault and collection costs due, the name and last known
address of the individual liable for the amount due, the fact that
the commission has complied with all applicable state and federal
laws in the computation of the amount due, and a request that
judgment be entered against the individual in the amount of the loan
principal, interest, and predefault and collection costs specified in
the certificate.
(d) Prior to the filing of the certificate, the commission shall,
by mail, notify the individual of the amount that is due and of the
opportunity for a hearing. If a hearing is requested, 10 days'
notice shall be given of the time and place of the hearing, which
shall be held in Sacramento County or, if properly requested, the
county of residence of the person requesting the hearing. The
hearing shall be conducted by a referee who shall submit findings and
recommendations to the director of the commission, or an authorized
representative, who shall decide the matter. The decision shall be
effective upon notice to the interested parties. The director of the
commission, or the authorized representative, may rescind the
decision and reconsider the matter for good cause shown at any time
within three years after the date the disputed loan first became due,
or within one year from the hearing, whichever is later. If no
hearing is requested within 15 days after mailing the notice required
by this subdivision, the certificate required by subdivision (b) may
be filed.
SEC. 48. Section 69763.2 of the Education Code is amended to read:
69763.2. (a) The clerk, immediately upon the filing of the
certificate specified in Section 69763.1, shall enter a judgment for
the people of the State of California against the individual in the
amount of the loan principal, interest, and predefault and collection
costs listed on the certificate. The clerk may file the judgment in
the book entitled "California Postsecondary Education Commission
Judgments."
(b) Execution shall issue upon the judgment specified in
subdivision (a) upon request of the commission in the same manner as
execution may issue upon other judgments as prescribed in the Code of
Civil Procedure.
(c) At least 10 days before executing any writ to collect, the
commission shall send notice of the intent to execute upon a writ to
the borrower and to any cosigners, by certified mail, to the most
recent addresses maintained in the files of the commission. Any
person receiving the notice of the intent to execute upon a writ may
request a hearing to contest the existence or the amount of the writ.
At the request of the individual, the commission shall conduct a
hearing pursuant to Section 69763.1, at which it shall be determined
whether the loan principal, interest, and predefault and collection
costs in the amount claimed by the commission are due and whether the
individual named on the certificate is liable for the amount. If no
hearing is requested, the execution shall be commenced for the
garnishment of wages, the attachment of property, or other legal
collection action.
SEC. 49. Section 69763.3 of the Education Code is amended to read:
69763.3. At any time before wages are garnished or a lien is
placed on property, a borrower may pay the California Postsecondary
Education Commission the amount of the recorded judgment, plus costs.
If that payment is made, wage garnishment or the attachment of
property shall not commence. The payment shall not constitute a
waiver of the right to a hearing.
SEC. 50. Section 69763.4 of the Education Code is amended to read:
69763.4. If the California Postsecondary Education Commission, or
an authorized agent, has reasonable cause to believe that a lien on
property may be jeopardized within the 10-day notice-of-intent
period, the lien may be filed without prior notice. The commission
shall provide notice of the attachment of property by lien to the
owner and to any other person known to be claiming an interest in the
property, within 48 hours after filing, excluding Saturdays,
Sundays, and the holidays specified in Section 6700 of the Government
Code. Any hearing to contest the lien shall be requested within 10
days following transmittal of the notice.
SEC. 51. Section 69766 of the Education Code is amended to read:
69766. (a) The Federal Student Loan Reserve Fund and the Student
Loan Operating Fund are hereby created in the State Treasury. On
January 1, 2000, the State Guaranteed Loan Reserve Fund shall cease
to exist, and funds deposited, or required to be deposited in that
fund, shall be transferred to the Federal Student Loan Reserve Fund
or the Student Loan Operating Fund and allocated to those funds in
accordance with the requirements of federal law.
(b) All money received for the purposes of this article from
federal, state or local governments, including any money deposited in
the State Guaranteed Loan Reserve Fund, or from other private or
public sources, shall be deposited in the Federal Student Loan
Reserve Fund or the Student Loan Operating Fund and allocated to
those funds in accordance with the requirements of federal law.
Funds deposited in the Federal Student Loan Reserve Fund or the
Student Loan Operating Fund are not part of the General Fund, as
defined in Section 16300 of the Government Code. No moneys from the
General Fund shall be deposited in the Federal Student Loan Reserve
Fund or the Student Loan Operating Fund.
(c) The contents of the Federal Student Loan Reserve Fund are
federal funds, administered in accordance with federal laws and
regulations. The contents of the Student Loan Operating Fund are
state funds within the custody and control of the California
Postsecondary Education Commission.
(d) Notwithstanding Section 13340 of the Government Code, all
moneys deposited in the Federal Student Loan Reserve Fund and the
Student Loan Operating Fund are hereby continuously appropriated,
without regard to fiscal years, for purposes of this article. The
continuous appropriation made by this section shall be available to
assume the obligation under any outstanding budget act appropriation
from the State Guaranteed Loan Reserve Fund as it existed prior to
January 1, 2000.
(e) The total amount of all outstanding debts, obligations, and
liabilities that may be incurred or created under this article,
including any obligation to repay to the United States any funds
provided under Title IV of the "Higher Education Act of 1965," and
extensions thereof or amendments thereto, or any similar act of
Congress, is limited to the amount contained in the Federal Student
Loan Reserve Fund or the Student Loan Operating Fund, and the state
shall not be liable to the United States, or to any other person or
entity, beyond the amount contained in the Federal Student Loan
Reserve Fund or the Student Loan Operating Fund for any debts,
obligations, and liabilities.
SEC. 52. Section 69769.5 of the Education Code is amended to read:
69769.5. The Loan Advisory Council shall review the activities
and policies of the Federal Family Education Loan Program and shall
regularly advise the commission of its findings and recommendations.
The Loan Advisory Council may request information and data that it
deems appropriate from the California Postsecondary Education
Commission with respect to the Federal Family Education Loan Program
or any other loan program administered by the commission.
SEC. 53. Section 69951 of the Education Code is amended to read:
69951. The California State Work-Study Program is hereby created
to provide eligible college and university students with the
opportunity to earn money to help defray their educational costs,
while gaining valuable experience in educationally beneficial or
career-related employment. The California State Work-Study Program
shall be administered by the California Postsecondary Education
Commission.
SEC. 54. Section 69952 of the Education Code is amended to read:
69952. (a) Any postsecondary educational institution currently
eligible to participate in state-funded student financial aid
programs pursuant to this chapter or in federal financial aid
programs shall be eligible to be selected to participate in the
California State Work-Study Program.
(b) Prior to participating in the program, each institution shall
sign an institutional agreement with the California Postsecondary
Education Commission, acknowledging its willingness to administer the
program pursuant to this article and program regulations and
guidelines adopted for that purpose by the commission. The agreement
shall include the procedures that the institution shall use to
ensure that each work-study position is related to the student's
course of study or career interests.
(c) Each participating institution shall be required, as a
condition of participation in the program, to comply with the
auditing or other fiscal reporting requirements established by the
commission. These requirements shall be applied by the commission so
as to ensure that no payments received by any private institution
pursuant to this article are applied to any sectarian or
denominational purpose, or to the general aid or support of the
institution.
SEC. 55. Section 69954 of the Education Code is amended to read:
69954. (a) All of the following entities shall be eligible to
employ students participating in the California State Work-Study
Program:
(1) Public postsecondary educational institutions.
(2) Public schools operated by school districts, county
superintendents of schools, the Department of the Youth Authority, or
the State Department of Education.
(3) Nonsectarian, nonpolitical organizations or corporations,
whether nonprofit or profit-seeking enterprises licensed to conduct
business in California.
(4) Out-of-state employers licensed to conduct business in their
home state, subject to the prior approval of the California
Postsecondary Education Commission.
(b) Private postsecondary educational institutions shall not be
eligible to employ students participating in the California State
Work-Study Program.
SEC. 56. Section 69958 of the Education Code is amended to read:
69958. (a) Potential work-study positions may be located by the
institution or by eligible students in cooperation with the
institution. Each position located shall be critically reviewed by
the appropriate student financial aid and experiential education
personnel to determine whether it satisfies all the conditions
specified in Section 69960. To assist the institution in assessing
the position, the employer shall submit a written statement to the
institution that provides all of the following information:
(1) The total number of positions available.
(2) A job description of each available position, including the
suggested rate of pay.
(3) The skills required of the prospective work-study employee.
(4) The educational benefits provided by the position.
(b) Once the institution has approved the work-study position, the
employer and the institution, acting as the authorized agent of the
California Postsecondary Education Commission, shall execute a
written agreement which confirms the employer's eligibility to
participate in the program and its willingness to comply with all
program requirements, and specifies the responsibilities of each of
the parties. The agreement shall be subject to annual renewal by
mutual agreement of the institution and the employer.
(c) Following execution of the agreement pursuant to subdivision
(b), the employer may interview prospective work-study employees.
The institution shall provide the employer and each applicant for the
work-study position with adequate information to facilitate a proper
placement. Provided that the priorities specified in Section 69959
have been met, the employer may indicate his or her hiring
preferences. No employer shall discriminate between applicants on
the basis of race, color, sex, religion, or national origin, or
subject any applicant to any other discriminatory practices
prohibited by state or federal law.
SEC. 57. Section 69965 of the Education Code is amended to read:
69965. (a) The California Postsecondary Education Commission, in
consultation with the advisory committee designated pursuant to
Section 69966, shall select postsecondary educational institutions to
participate in the program. In evaluating applications from
educational institutions, the commission shall primarily consider the
following factors:
(1) Administrative capability.
(2) Ability to utilize available state funds.
(b) The commission shall also consider:
(1) Geographical distribution of participating institutions.
(2) Segmental representation.
SEC. 58. Section 69966 of the Education Code is amended to read:
69966. The California
Postsecondary Education Commission shall administer the California
State Work-Study Program in consultation with an advisory committee.
The membership of the advisory committee, which may be an existing
advisory committee established by the commission, shall be
representative of, but need not be limited to, financial aid and
student employment administrators from each segment of postsecondary
education, students, public schools, employers, and experiential
education personnel.
SEC. 59. Section 69967 of the Education Code is amended to read:
69967. The California Postsecondary Education Commission shall do
all of the following:
(a) Adopt any necessary rules, regulations, and guidelines to
assist participating employers and institutions to administer the
program.
(b) Ensure that student placements are consistent with the
objectives stated in Section 69959.
(c) Monitor institutional expenditures to ensure proper allocation
and utilization of work-study funds.
(d) At the close of each fiscal year, compile data regarding the
population served by the program during that fiscal year.
(e) Review the administrative practices of each participating
institution to ensure compliance with program requirements.
(f) Ensure that appropriate audits of the program are conducted.
SEC. 60. Section 69984 of the Education Code is amended to read:
69984. (a) (1) The board shall segregate moneys received by the
Scholarshare trust into two funds, which shall be identified as the
program fund and the administrative fund. Notwithstanding Section
13340 of the Government Code, the program fund is hereby continuously
appropriated, without regard to fiscal years, to the board for the
purposes of this article. Funds in the administrative fund shall be
available for expenditure, upon appropriation, for the purposes
specified in this article.
(2) (A) The trust shall separately account for any moneys received
by an entity exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code or a state or local government agency,
depositing the money for the benefit of a beneficiary to be named
later pursuant to the operation of a bona fide scholarship program.
(B) There is hereby created the Scholarshare Investment Board,
which consists of the Treasurer, the Director of Finance, the
Secretary of Education, a member of the California Postsecondary
Education Commission appointed by the Governor, a member of the
public appointed by the Governor, a representative from a California
public institution of higher education appointed by the Senate
Committee on Rules, and a representative from a California
independent college or university or a state-approved college,
university, or vocational/technical school appointed by the Speaker
of the Assembly. The Treasurer shall serve as chair of the board.
The board shall appoint an administrator of the program who shall
serve at the pleasure of the board. The board shall annually prepare
and adopt a written statement of investment policy. The board shall
consider the statement of investment policy and any changes in the
investment policy at a public hearing. The board shall approve the
investment management entity or entities consistent with subparagraph
(C). Not later than 30 days after the close of each month there
shall be placed on file for public inspection during business hours a
report with respect to investments made pursuant to this section and
a report of deposits in financial institutions. The investment
manager shall report the following information to the board within 30
days following the end of each month:
(i) The type of investment, name of the issuer, date of maturity,
par and dollar amount invested in each security, investment, and
money within the program fund.
(ii) The weighted average maturity of the investments within the
program fund.
(iii) Any amounts in the program fund that are under the
management of private money managers.
(iv) The market value as of the date of the report and the source
of this valuation for any security within the program fund.
(v) A description of the compliance with the statement of
investment policy.
(C) Moneys in the program fund may be invested or reinvested by
the Treasurer or may be invested in whole or in part under contract
with private money managers, as determined by the Scholarshare
Investment Board.
(b) Transfers may be made from the program fund to the
administrative fund for the purpose of paying operating costs
associated with administering the trust and as required by this act.
On an annual basis, expenditures from the administrative fund shall
not exceed more than 1 percent of the total program fund. All costs
of administration of the trust shall be paid out of the
administration fund.
(c) All moneys paid by participants in connection with
participation agreements shall be deposited as received into the
program fund and shall be promptly invested and accounted for
separately. Deposits and interest thereon accumulated on behalf of
participants in the program fund of the Scholarshare trust may be
used for payments to any institution of higher education.
SEC. 61. Section 89347 of the Education Code is amended to read:
89347. The California Postsecondary Education Commission shall
provide outreach services and technical assistance to foster youth at
the two grade levels designated jointly by the California State
University and the California Community Colleges. The State
Department of Social Services and county welfare departments shall,
in coordination with the California Postsecondary Education
Commission, communicate with foster youth at the two grade levels
designated jointly by the California State University and the
California Community Colleges in order to facilitate the California
Postsecondary Education Commission's outreach and technical
assistance efforts for those prospective students.
SEC. 62. Section 94155 of the Education Code is amended to read:
94155. On or before March 31 in each year the authority shall
make an annual report of its activities for the preceding calendar
year to the Governor and the Legislature. This report shall set
forth a complete operating and financial statement covering the
authority's operations during the year. The authority shall cause an
audit of its books and accounts to be made at least once in each
year by certified public accountants. The authority shall also
consult with the California Postsecondary Education Commission with
respect to the need for additional financing of student loan
projects.
SEC. 63. Chapter 3 (commencing with Section 94301) of Part 59 of
the Education Code is repealed.
SEC. 64. Section 94719.5 of the Education Code is amended to read:
94719.5. "Bureau" means the Bureau for Private Postsecondary and
Vocational Education which, pursuant to Section 94770, is under the
administration of the California Postsecondary Education Commission.
SEC. 65. Section 94724 of the Education Code is amended to read:
94724. "Council" has the same meaning as the Bureau for Private
Postsecondary and Vocational Education as defined in Section 94719.5.
SEC. 66. Section 94728.5 of the Education Code is amended to read:
94728.5. "Director" means the Executive Director of the
California Postsecondary Education Commission.
SEC. 67. Section 94770 of the Education Code is amended to read:
94770. (a) There is a Bureau for Private Postsecondary and
Vocational Education under the administration of the California
Higher Education Policy and Finance Commission. The bureau shall
succeed to any and all rights and claims of the former Council for
Private Postsecondary and Vocational Education that may have been
asserted in any judicial or administrative action pending on January
1, 1998, and shall take any action reasonably necessary to assert and
realize those rights and claims in its own name. The functions of
the former council and the responsibilities the former council had
for the administration of former Chapter 7 (commencing with Section
94700) on June 29, 1997, are transferred to the bureau, effective
January 1, 1998, as provided by this act. It is the intent of the
Legislature that there be no gap in the performance of functions or
the administration of the law governing private postsecondary
educational institutions. Notwithstanding any other provision of
law, Section 19050.9 of the Government Code shall apply regardless of
the date on which former Chapter 7 (commencing with Section 94700)
became inoperative or was repealed.
(b) The bureau shall have possession and control of all records,
papers, offices, equipment, supplies, or other property, real or
personal, held for the benefit or use by the former council in the
performance of the duties, powers, purposes, responsibilities, and
jurisdictions that are vested in the bureau.
(c) The bureau has the responsibility for approving and regulating
private postsecondary educational institutions. The bureau shall
have, as its objective, the development of a strong, vigorous, and
widely respected sector of private postsecondary and vocational
education.
SEC. 68. Section 94771 of the Education Code is amended to read:
94771. (a) The duty of administering and enforcing this chapter
is vested in the Executive Director of the California Postsecondary
Education Commission, who may assign and delegate those duties to a
bureau chief, subject to the other provisions of this section.
(b) Every power granted to, or duty imposed upon, the bureau under
this chapter may be exercised or performed in the name of the
bureau, subject to any conditions and limitations the director may
prescribe. The bureau chief may redelegate any of those powers or
duties to his or her designee. The bureau chief shall be appointed
by the Governor and confirmed by the Senate, and is exempt from the
State Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code).
(c) The director, in accordance with the State Civil Service Act,
may appoint and fix the compensation of the clerical, inspection,
investigation, evaluation, and auditing personnel, that he or she
deems necessary to carry out this chapter.
(d) The proceedings under this chapter shall be conducted by the
bureau in accordance with Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code. To the
extent of any conflict between any of the provisions of this chapter
and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code, that Chapter 5 shall prevail.
(e) The director shall appoint an advisory committee, which shall
consist of representatives of institutions, student advocates, and
employers who hire students, among other parties. The advisory
committee shall be balanced to ensure that institutions and student
advocates have approximate equal representation. Institutional
representatives on the committee shall be in general proportion to
the types of institutions approved or registered pursuant to this
chapter and to the number of students served by each type of
institution. The advisory committee shall advise the bureau
concerning the bureau's administration, licensing, and enforcement
functions under this chapter.
SEC. 69. Section 94774.5 of the Education Code is amended to read:
94774.5. (a) For the purposes of administration and enforcement
of this chapter, the California Postsecondary Education Commission,
the bureau, and the director and officers and employees of the
commission and the bureau, shall have all the powers and authority
granted under this chapter and under Division 1 (commencing with
Section 100) and Division 1.5 (commencing with Section 475) of the
Business and Professions Code. In addition to satisfying the
approval, compliance, and enforcement provisions of this chapter, the
bureau shall also comply with and exercise all authority granted by
Division 1 (commencing with Section 100) and Division 1.5 (commencing
with Section 475) of the Business and Professions Code.
(b) The bureau shall establish a regular inspection program that
shall include unannounced inspections.
(c) If the bureau determines after an investigation that an
institution has violated this chapter or any of the regulations
adopted by the bureau, the bureau may do any or all of the following:
(1) Place the institution on probation.
(2) Issue an order prohibiting the enrollment of new students.
(3) Issue an administrative citation and impose an administrative
fine as authorized by, and in accordance with, Section 94957 of this
code or Section 146, 147, or 148 of the Business and Professions
Code.
(4) Issue an order of abatement or citation pursuant to Section
125.9 or 148 of the Business and Professions Code.
(5) Initiate proceedings under the Administrative Procedure Act or
this chapter to revoke or suspend the institution's approval to
operate.
(6) With the consent of the institution, refer an adjudicative
proceeding to mediation, or binding or nonbinding arbitration, in
accordance with the regulations of the Office of Administrative
Hearings, the California Postsecondary Education Commission, or the
bureau.
(7) Order reimbursement of the costs of the investigation and
enforcement in accordance with Section 94935 of this code or Section
125.3 of the Business and Professions Code. An institution shall not
be required to pay the same costs and expenses to more than one
investigating entity.
(8) Notify the telephone company to disconnect the institution's
telephone as authorized by Section 149 of the Business and
Professions Code.
SEC. 70. Section 94804 of the Education Code is amended to read:
94804. (a) The review of a private postsecondary educational
institution's original application for approval, or a renewal
application to the bureau, or an approved institution already in
operation, shall include a determination of the institution's
financial responsibility. An institution shall be considered
financially responsible if it has sufficient assets to do all of the
following:
(1) Provide the educational services stated in its official
publications and statements.
(2) Comply with the standards and requirements specified in
Article 8 (commencing with Section 94900), Article 9 (commencing with
Section 94915), or Article 9.5 (commencing with Section 94931),
whichever is applicable.
(3) Provide the administrative and financial resources to fully
comply with this article.
(4) Comply with any applicable provisions of Section 94855.
(b) An institution shall not be considered financially responsible
under any of the following conditions:
(1) The institution fails to have available sufficient funds and
accounts receivable to pay all operating expenses due within 30 days.
For the purpose of this paragraph, "funds" means cash or assets
that can be converted into cash within seven days.
(2) Under generally accepted accounting principles, the
institution had, at the end of its latest fiscal year, a ratio of
current assets to current liabilities of less than 1.25 to 1. For
the purpose of this paragraph, "current assets" does not include any
of the following: (A) intangible assets, including goodwill, going
concern value, organization expense, startup costs, long-term
prepayment of deferred charges, and nonreturnable deposits, or (B)
state or federal grant funds that are not the property of the
institution but are held for future disbursement for the benefit of
students. Unearned tuition shall be accounted for in accordance with
generally accepted accounting principles. When another government
agency requires an institution to file annual financial audit
prepared by a certified public accountant, that agency's current
ratio standard may apply in lieu of the ratio specified in this
paragraph if the ratio of current assets to current liabilities under
that standard is 1 to 1 or greater.
(c) (1) In determining an institution's compliance with
subdivision (a), the bureau, at the institution's request, may
consider the financial resources of a parent corporation if the
parent corporation files with the bureau, and at all times complies
with, an irrevocable and unconditional agreement approved by its
board of directors that satisfies all of the requirements of
paragraph (2):
(2) The agreement described in paragraph (1) shall provide that
the parent corporation do all of the following:
(A) Consent to be sued in California.
(B) Consent to be subject to the administrative jurisdiction of
the bureau in connection with the institution's compliance with this
chapter.
(C) Appoint an agent for service of process in California and all
notices required by this chapter.
(D) Agree to pay any refund, claim, penalty, or judgment that the
institution is obligated to pay.
(E) File financial reports, maintain financial records, and permit
the inspection and copying of financial records to the same extent
as is required of the institution.
(3) For the purposes of this subdivision, a "parent corporation"
means a corporation that owns more than 80 percent of the stock of
the institution whose financial resources are at issue.
(d) (1) If the bureau determines that an institution is not
financially responsible, the bureau, under terms and conditions
prescribed by the council, may require the institution to submit for
its latest complete fiscal year and its current fiscal year, each of
the following:
(A) A financial audit of the institution conducted by a licensed
certified public accountant, in accordance with generally accepted
auditing standards.
(B) The institution's financial plan for establishing financial
responsibility.
(C) Any other information requested by the bureau.
(2) This subdivision does not prevent the bureau from taking any
other actions authorized under this chapter.
SEC. 71. Section 94835 of the Education Code is amended to read:
94835. (a) The bureau shall review and investigate all
institutions, programs, and courses of instruction approved under
this chapter. Consideration in the scheduling of reviews and
investigations shall be afforded to student complaints and
information collected by the Attorney General, any board within the
Department of Consumer Affairs, or any other federal, state, or local
agency. The bureau also shall conduct periodic unannounced reviews
and investigations of institutions to determine compliance with this
chapter.
(b) At the bureau's request in connection with an investigation to
determine compliance with this chapter, an institution, during its
normal business hours, shall immediately make available for
inspection and copying all records required to be maintained by this
chapter or that relate to the institution's compliance with this
chapter and permit the bureau's representatives to have immediate
access to the institution's primary administrative location and sites
of instruction during the institution's normal business hours to
examine and copy these records, to inspect the institution's physical
facilities, equipment, library and other learning resources, and to
interview school administrators, faculty, and students.
(c) The approval to operate shall be issued to the owners or the
governing body of the applicant institution, and shall be
nontransferrable. Any person that makes a proper application and
complies with this chapter and each standard and regulation
pertaining to this chapter shall be qualified to receive an approval
to operate or an approval of the transfer of ownership.
SEC. 72. Section 94846 of the Education Code is amended to read:
94846. (a) If a shift in control or change of ownership of an
institution occurs, an application for a new approval to operate for
the institution under the changed ownership or control shall be filed
with the bureau at least 20 days prior to the shift in control or
change in ownership. Whenever an institution is operated at different
locations, an application for approval shall be filed for each
location.
(b) The application for approval to operate submitted in
conjunction with a change of ownership may include pertinent portions
of the institution's previous application prepared in connection
with programs or courses of instruction that remain unchanged or
unaffected by the change in ownership.
(c) No application for ownership or transfer of ownership shall be
approved for any applicant that has been found previously in any
judicial or administrative proceeding to have violated this chapter,
or if there exists any of the grounds for denial set forth in Section
480 of the Business and Professions Code.
(d) No change in ownership of the institution shall be made until
the application is approved. If an application for a new approval to
operate is not timely filed as required by this section, the
institution's approval to operate shall terminate.
(e) For the purposes of this section, a change in ownership occurs
when there is a change of control of the institution, or where a
person that previously did not own at least 25 percent of the stock
or controlling interest of an institution or its parent corporation,
acquires ownership of at least 25 percent of the stock of the
institution or its parent corporation, or when a for-profit business
converts to nonprofit corporation status or forms a nonprofit
corporation as a subsidiary to provide the educational services for
which the for-profit business is approved to operate.
SEC. 73. Section 94920 of the Education Code is amended to read:
94920. (a) Each individual submitting an application for a
certificate of authorization for service, pursuant to paragraph (3)
of subdivision (b) of Section 94915, shall provide the bureau with
the following information:
(1) A completed application as supplied by the bureau.
(2) Certified copies of educational transcripts, where applicable.
(3) Verified employment history.
(4) Other documentation of prior experience or education as
required by the bureau for verification.
(b) To be eligible for a certificate of authorization for service,
the applicant shall fulfill the following requirements:
(1) Instructors shall have all of the following qualifications:
(A) No record of any violations of this chapter.
(B) Verification that he or she possesses a combination of at
least three years' experience and training or education in the
occupation or job title category for which the certification is
sought.
(C) An instructor for a program that leads to a degree shall
possess a degree of equal or higher level in the occupation for which
certification is sought.
(2) Directors shall have both of the following qualifications:
(A) Three years' experience in an administrative position in a
public or an approved private postsecondary school.
(B) No record of any violations of this chapter.
(3) Associate directors shall have both of the following
qualifications:
(A) Two years' experience in an administrative or other
responsible position in a public or state approved private
postsecondary school.
(B) No record of any violations of this chapter.
(4) Financial aid directors shall have all of the following
qualifications:
(A) Five years' experience in an administrative position in the
financial aid office of a public or approved private postsecondary
school.
(B) Verification of completion within the previous two years of a
training seminar or workshop certified by the California
Postsecondary Education Commission as providing up-to-date
comprehensive information on financial aid programs and policies.
(C) No record of any violations of this chapter.
(D) Any other requirements the bureau deems necessary.
(5) Financial aid officers shall possess all of the following
qualifications:
(A) Verification of completion within the previous two years of a
training seminar or workshop certified by the California
Postsecondary Education Commission as providing up-to-date
comprehensive information on financial aid programs and policies.
(B) No record of any violations of this chapter.
(C) Other requirements the bureau deems necessary.
(c) An individual who is the sole owner of an institution may
serve in the capacity of director for three years prior to meeting
the qualifications of subparagraph (A) of paragraph (2) of
subdivision (b).
(d) Any individual filling a position left vacant by a previously
certified financial aid director or financial aid officer shall
verify with the bureau completion of the training referred to in
subparagraph (A) of paragraph (5) of subdivision (b) within one year
of accepting that position.
(e) Each individual certified for authorization for service in the
positions listed in paragraphs (1), (4), and (5) of subdivision (b)
shall maintain at each private postsecondary educational institution
where he or she is employed a validated transcript evidencing the
successful completion of three continuing education units of
recognized in-service training in their education, job title
category, or employment field during every period of certification.
These units may be completed through in-service training offered by
accrediting associations, professional organizations, or
bureau-approved programs.
(f) Every certificate of authorization issued to a person who
possesses the qualifications described in paragraphs (1), (4), and
(5) of subdivision (b) shall be valid for a period of three years.
(g) In addition to the requirements set forth in this section, the
bureau may impose additional requirements by regulation.
SEC. 74. Section 94930 of the Education Code is amended to read:
94930. (a) All institutions that were certified to offer flight
instruction by the Federal Aviation Administration (FAA) and that
operated in California on December 31, 1990, pursuant to prior
authority of subdivision (a) or (b) of former Section 94311, shall
receive approval from the bureau for a period not to exceed three
years. On or before June 30, 1999, the bureau shall work in
cooperation with the FAA to review each of these institutions to
determine whether the institution is in compliance with the
requirements of this chapter. It is the intent of the Legislature
that all institutions whose cumulative gross student loan default
rate is above 40 percent, as determined by the California
Postsecondary Education Commission, shall be reviewed by the FAA and
the bureau to determine if these institutions are in compliance with
the requirements of this chapter and should continue to be approved
to offer educational programs in California. It is further the
intent of the Legislature that the bureau develop a memorandum of
understanding with the FAA to delineate the responsibilities of each
agency for the approval and monitoring of these institutions that
were operating on December 31, 1990, under the prior authority of
subdivision (a) or (b) of former Section 94311.
(b) Institutions certified to offer flight instruction by the FAA,
or its successor agency, shall comply with all of the requirements
of Sections 94800, 94810, 94814, and 94816, Sections 94820 to 94826,
inclusive, and Sections 94828 and 94829 and Article 7 (commencing
with Section 94850) if applicable, but shall not be required to file
any materials with the bureau that are not required by the FAA or its
successor agency, except those minimally necessary to administer the
Student Tuition Recovery Fund as determined by the bureau. The
responsibility for monitoring and enforcing institutional compliance
for these institutions shall be with the bureau.
(c) This chapter does not apply to individual flight instructors
not requiring any advance payments, who do not negotiate a formal
contract of indebtedness, and who do not have an established place of
business other than their residences.
SEC. 75. Section 94931 of the Education Code is amended to read:
94931. (a) No private postsecondary educational institution,
except those offering degrees and approved under Article 8
(commencing with Section 94900) or offering vocational and nondegree
granting programs and approved under Article 9 (commencing with
Section 94915), or those that are exempt from this chapter, may offer
educational services or programs unless the institution has been
registered by the bureau as meeting the requirements of this section.
(b) An institution approved to offer degrees under Article 8
(commencing with Section 94900) or approved to offer vocational and
nondegree granting programs under Article 9 (commencing with Section
94915) may offer registered programs without affecting its status
under either of those articles so long as the registered program is
disclosed in its approval to operate application or the institution
completes a registration application and receives specific
authorization for the program, maintains compliance for all
registered programs in conformity with this article, and maintains a
set of student records for registered programs separate from its
approved programs. Any registered institution that offers an
educational program not specified in subdivision (c) or not otherwise
exempt from this chapter shall be approved under Article 8
(commencing with Section 94900) or Article 9 (commencing with Section
94915), and shall comply with this chapter.
(c) Except as otherwise provided in this article, this chapter
does not apply to an educational service that qualifies for
registration status and that complies with this article. The
educational services that qualify for registration status are limited
to:
(1) An educational service, as defined in Section 94733, that is
offered to provide an intensive English language program.
(2) An educational service, as defined in Section 94742.1, that is
offered to provide short-term career training.
(3) An educational service, as defined in Section 94742.2, that is
offered to provide short-term seminar training.
(4) An educational service that is offered to assist students to
prepare for an examination for licensure, except as provided in
Section 94787.
(5) An educational service that consists of continuing education
not otherwise exempt from this chapter.
(d) An institution that qualifies under any of paragraphs (1) to
(4), inclusive, of subdivision (c) shall complete a registration form
provided by the bureau, including a signed declaration by the chief
executive officer of the institution under penalty of perjury, and
provide all of the following information for public disclosure:
(1) The owner's legal name, headquarters address, and the name of
an agent for the service of process within California.
(2) All names, whether real or fictitious, under which the owner
is doing and will do business.
(3) The names and addresses of the principal officers of the
institution.
(4) A list of all California locations at which the institution
operates, its offerings, and, if previously registered, the number of
students enrolled in California during the preceding year.
(5) A copy of the registration form or agreement that enrolls the
student in the educational service that contains all of the
following:
(A) The name and address of the location where instruction will be
provided.
(B) The title of the educational program.
(C) The total amount the student is obligated to pay for the
educational service.
(D) A clear and conspicuous statement that the enrollment form or
agreement is a legally binding instrument when signed by the student
and accepted by the institution.
(E) The refund policy developed by the institution unless this
article specifies a different refund policy.
(F) Unless this article specifies that the institution is required
to participate in the Student Tuition Recovery Fund, a statement
that the institution does not participate in that fund.
(G) In 10-point boldface type or larger, the following statement:
"Any questions or problems concerning this school that have not been
satisfactorily answered or resolved by the school should be directed
to the Bureau for Private Postsecondary and Vocational Education
under the administration of the California Postsecondary Education
Commission (insert city, address, CA ZIP Code number, and telephone
number)."
(H) Schools approved under paragraph (1) of subdivision (c) of
Section 94931 shall also include with the statement required by
subparagraph (G) information referring the student to a consulate of
his or her country and the United States Immigration and
Naturalization Service.
(6) A brochure or catalog and a sample advertisement used to
promote the educational service.
(7) A copy of its certificate of completion.
(8) If the educational service offers short-term career training,
the institution shall comply with the requirements of Sections 94804
and 94806.
(9) If the institution assists students in obtaining financing
from a third party for the cost of the educational services at the
institution, a copy of the contract or finance agreement reflecting
that financing.
(e) The bureau shall establish the initial registration fee and
the annual fee to be paid by institutions registered under this
article. No institution shall be registered pursuant to this article
unless it has paid the appropriate fees required by the bureau.
Upon receipt of an institution's initial application for registration
for a program, the bureau may conduct a site visit pursuant to
subdivision (c) of Section 94915.
(f) For the purposes of communication with other state agencies,
any organization or individual registered to offer short-term seminar
training may state that they are "authorized" by the State of
California.
(g) (1) Except as provided by subdivision (f), any institution
registered pursuant to this article shall be restricted to stating
that their training is "registered" with the State of California, and
is prohibited from using the words "approval," "approved," "approval
to operate," "approved to operate," "authorized," "licensed," or
"licensed to operate."
(2) The institution shall place the following statement in all
brochures, catalogs, enrollment agreements, and registration forms,
in a conspicuous location in at least 12-point boldfaced type:
"We are registered with the State of California. Registration
means we have met certain minimum standards imposed by the state for
registered schools on the basis of our written application to the
state. Registration does not mean we have met all of the more
extensive standards required by the state for schools that are
approved to operate or licensed or that the state has verified the
information we submitted with our registration form."
(h) The bureau may require, at least every three years following
the initial registration date, that a registered institution verify
all or part of the information required to be provided with the
registration form under subdivision (d).
(i) Sections 94812 and 94818, Sections 94822 to 94825, inclusive,
and Sections 94829 to 94838, inclusive, and Sections 94841 and 94846
shall apply to any institution registered pursuant to this article.
(j) Article 1 (commencing with Section 94700), Article 2
(commencing with Section 94710), Article 3 (commencing with Section
94750), Article 3.5 (commencing with Section 94760), Article 4
(commencing with Section 94770), and Article 13 (commencing with
Section 94950) shall apply to any institution registered pursuant to
this article.
SEC. 76. Section 94948 of the Education Code is amended to read:
94948. (a) (1) The governing board or other governing authority
of any private postsecondary or vocational educational institution
shall adopt rules providing for the withholding of institutional
services from students or former students who have been notified, in
writing, at the student's or former student's last known address,
that he or she is in default on a loan or loans under either of the
following loan programs:
The Stafford Student Loan program.
The Supplemental Loans for Students program.
Any program directly or indirectly financed by the California
Educational Facilities Authority.
(2) (A) "Default," as used in this section, with respect to a loan
under the Stafford Student Loan program or Supplemental Loans for
Students program means the failure of a borrower to make an
installment payment when due, or to meet other terms of the
promissory note under circumstances where the guarantee agency finds
it reasonable to conclude that the borrower no longer intends to
honor the obligation to repay, provided that this failure persists
for 180 days for a loan repayable in monthly installments, or 240
days for a loan repayable in less frequent installments.
(B) "Default," as used in this section, with respect to a program
directly or indirectly financed by the California Educational
Facilities Authority, means the failure of a borrower to make an
installment payment when due, or to meet other terms of the loan,
within that period and under the circumstances determined by the
California Educational Facilities Authority with respect to that
program.
(b) (1) The rules adopted pursuant to subdivision (a) shall
provide that the services withheld may be provided during a period
when the facts are in dispute and when the student or former student
demonstrates to either the governing board or other appropriate
governing authority of the institution, or the California
Postsecondary Education Commission and the appropriate entity or its
designee, that reasonable progress has been made to repay the loan or
that there exists a reasonable justification for the delay as
determined by the institution. The rules shall specify the services
to be withheld from the student and may include, but are not limited
to, the following:
(A) The provision of grades.
(B) The provision of transcripts.
(C) The provision of diplomas.
(2) The rules shall not include the withholding of registration
privileges.
(c) When it has been determined that an individual is in default
on a loan or loans under either of the loan programs specified in
subdivision (a), the California Postsecondary Education Commission
shall give notice of the default to all institutions through which
that individual acquired the loan or loans.
(d) Guarantors, or those who act as their agents or act under
their control, who provide information to institutions pursuant to
this section, shall defend, indemnify, and hold harmless the
governing board or other governing authority of the institutions from
action resulting from compliance with this section when the action
arises as a result of incorrect, misleading, or untimely information
provided to the institution by the guarantors, their agents, or those
acting under the control of the guarantors.
SEC. 77. Section 94965 of the Education Code is amended to read:
94965. (a) Proceedings in connection with the denial of an
application to operate, the grant of a conditional approval to
operate, or the revocation of an approval to operate shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code, and
the bureau shall have all of the powers granted in that chapter.
Any action by the bureau to place an institution on probation shall
be subject to appeal, and the bureau shall establish procedures that
provide the institution with adequate notice and an opportunity to be
heard and to present evidence as to why the action recommended by
staff or by a visiting committee shall not be taken.
(b) Upon taking any action to suspend or revoke an institution's
approval to operate, or to deny an application for renewal of an
approval to operate, the bureau shall provide written notice to the
United States Department of Education and to any appropriate
accrediting association.
SEC. 78. Section 94990 of the Education Code is repealed.
SEC. 79. Section 94995 of the Education Code is amended to read:
94995. (a) On or before January 31 of each calendar year, the
bureau shall submit a written report to the Legislature, summarizing
its activities during the previous fiscal year.
(b) Annual reports prepared pursuant to this section shall
include, but shall not necessarily be limited to, all of the
following:
(1) Timely information relating to the enforcement activities of
the bureau pursuant to this chapter.
(2) Statistics providing a composite picture of the private
postsecondary educational community, including data on how many
schools, as classified by subject matter, and how many students there
are within the scope of the activities of the bureau.
SEC. 80. Article 16 (commencing with Section 94999) of Chapter 7
of Part 59 of the Education Code is repealed.
SEC. 81. Section 127929 of the Health and Safety Code is amended
to read:
127929. (a) The office shall administer the California Medical
and Dental Student Loan Repayment Program of 2002. Any individual
enrolled in an institution of postsecondary education participating
in the program set forth in this article may be eligible to receive a
conditional warrant for loan repayment, to be redeemed upon becoming
employed as a physician or dentist in a medically underserved area
or a dentally underserved area serving primarily medically or
dentally underserved populations. In order to be eligible to receive
a conditional loan repayment warrant, an applicant shall satisfy all
of the following conditions:
(1) The applicant has been judged by his or her postsecondary
institution to have outstanding ability on the basis of criteria that
may include, but not be limited to, any of the following:
(A) Grade point average.
(B) Test scores.
(C) Faculty evaluations.
(D) Interviews.
(E) Other recommendations.
(2) In order to meet the costs associated with obtaining a medical
or dental degree, the applicant has received, or is approved to
receive, a loan under one or more of the following designated loan
programs:
(A) The Federal Family Education Loan Program (10 U.S.C. Sec. 1071
et seq.).
(B) Any loan program approved by the California Postsecondary
Education Commission.
(3) The applicant has agreed to provide services as a licensed
physician for up to three consecutive years, after obtaining a
license from the Medical Board of California in a medically
underserved area, or the applicant has agreed to provide services as
a licensed dentist for up to three consecutive years, after obtaining
a license from the Dental Board of California in a dentally
underserved area.
(4) The applicant has agreed to work in a setting where the
applicant will primarily serve medically or dentally underserved
populations.
(b) The office shall ensure that priority consideration be given
to applicants who are best suited to meet the cultural and linguistic
needs and demands of medically and dentally underserved populations
and who meet one or more of the following criteria:
(1) Speak a Medi-Cal threshold language.
(2) Come from an economically disadvantaged background.
(3) Have received significant training in cultural and
linguistically appropriate service delivery.
(4) Have done a medical rotation serving medically underserved
populations or provided dental services to members of a dentally
underserved population.
(c) A person participating in the program pursuant to this section
shall not receive more than one warrant.
(d) The office shall adopt rules and regulations regarding the
reallocation of warrants if a participating institution is unable to
utilize its allocated warrants or is unable to distribute them within
a reasonable time period.
SEC. 82. Section 128445 of the Health and Safety Code is amended
to read:
128445. In developing this program, the Health Professions
Education Foundation shall solicit the advice of the representatives
of the Board of Registered Nursing, the California Postsecondary
Education Commission, the California Nurses Association, the
California Association of Health Facilities, the California
Association of Homes for the Aging, the Chancellor of the California
State University, the President of the University of California, and
other entities as may be appropriate.
SEC. 83. Section 4709 of the Labor Code is amended to read:
4709. (a) Notwithstanding any other provisions of law, a
dependent of a peace officer, as defined in Section 830.1, 830.2,
830.3, 830.31, 830.32, 830.33, 830.34, 830.35, 830.36, 830.37,
830.38, 830.39, 830.4, 830.5, or 830.6 of the Penal Code, who is
killed in the performance of duty or who dies or is totally disabled
as a result of an accident or an injury caused by external violence
or physical force, incurred in the performance of duty, when the
death, accident, or injury is compensable under this division or
Division 4.5 (commencing with Section 6100) shall be entitled to a
scholarship at any institution described in subdivision (l) of
Section 69432.7 of the Education Code. The scholarship shall be in
an amount equal to the amount provided a student who has been awarded
a Cal Grant scholarship as specified in Chapter 1.7 (commencing
with Section 69430) of Part 42 of the Education Code.
(b) A dependent of an officer or employee of the Department of
Corrections or the Department of the Youth Authority described in
Section 20017.77 of the Government Code who is killed in the
performance of duty, or who dies or is totally disabled as a result
of an accident or an injury incurred in the performance of duty, when
the death, accident, or injury is caused by the direct action of an
inmate, and is compensable under this division or Division 4.5
(commencing with Section 6100), shall also be entitled to a
scholarship specified in this section.
(c) Notwithstanding any other provisions of law, a dependent of a
firefighter employed by a county, city, city and county, district, or
other political subdivision of the state, who is killed in the
performance of duty or who dies or is totally
disabled as a result of an accident or
injury incurred in the performance of duty, when the death, accident,
or injury is compensable under this division or Division 4.5
(commencing with Section 6100), shall also be entitled to a
scholarship specified in this section.
(d) Nothing in this section shall be interpreted to allow the
admittance of the dependent into a college or university unless the
dependent is otherwise qualified to gain admittance to the college or
university.
(e) The scholarship provided for by this section shall be paid out
of funds annually appropriated in the Budget Act to the California
Postsecondary Education Commission.
(f) The receipt of a scholarship provided for by this section
shall not preclude a dependent from receiving a Cal Grant award
pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42
of the Education Code, any other grant, or any fee waivers that may
be provided by an institution of higher education. The receipt of a
Cal Grant award pursuant to Chapter 1.7 (commencing with Section
69430) of Part 42 of the Education Code, any other grant, or any fee
waivers that may be provided by an institution of higher education
shall not preclude a dependent from receiving a scholarship provided
for by this section.
(g) The amendments made to this section during the 1995 portion of
the 1995-96 Regular Session shall apply to a student receiving a
scholarship on the effective date of the amendments unless that
application would result in the student receiving a scholarship on
less favorable terms or in a lesser amount, in which case the student
shall continue to receive the scholarship on the same terms and
conditions in effect prior to the effective date of the amendments.
(h) As used in this section, "dependent" means the children
(natural or adopted) or spouse, at the time of the death or injury,
of the peace officer, law enforcement officer, or firefighter.
(i) Eligibility for a scholarship under this section shall be
limited to a person who demonstrates financial need as determined by
the California Postsecondary Education Commission pursuant to Article
1.5 (commencing with Section 69503) of Chapter 2 of Part 42 of the
Education Code. For purposes of determining financial need, the
proceeds of death benefits received by the dependent, including, but
not limited to, a continuation of income received from the Public
Employees' Retirement System, the proceeds from the federal Public
Safety Officers' Benefits Act, life insurance policies, proceeds from
Sections 4702 and 4703.5, any private scholarship where receipt is
predicated upon the recipient being the survivor of a deceased public
safety officer, the scholarship awarded pursuant to Section 68120 of
the Education Code, and any interest received from these benefits,
shall not be considered.
SEC. 84. Section 4728 of the Labor Code is amended to read:
4728. (a) A dependent of an elected public official, who was
intentionally killed while holding office, in retaliation for, or to
prevent the performance of, an official duty, shall be entitled to a
scholarship at any institution described in subdivision (l) of
Section 69432.7 of the Education Code. The scholarship shall be in
an amount equal to the amount provided a student who has been awarded
a Cal Grant scholarship as specified in Chapter 1.7 (commencing with
Section 69430) of Part 42 of the Education Code. Eligibility for a
scholarship under this section shall be limited to a person who
demonstrates financial need as determined by the California
Postsecondary Education Commission pursuant to Article 1.5
(commencing with Section 69503) of Chapter 2 of Part 42 of the
Education Code.
(b) The scholarship provided for by this section shall be paid out
of funds annually appropriated in the Budget Act to the California
Postsecondary Education Commission.
(c) The receipt of a scholarship provided for by this section
shall not preclude a dependent from receiving a Cal Grant award
pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42
of the Education Code, any other grant, or any fee waivers that may
be provided by an institution of higher education. The receipt of a
Cal Grant award pursuant to Chapter 1.7 (commencing with Section
69430) of Part 42 of the Education Code, any other grant, or any fee
waivers that may be provided by an institution of higher education
shall not preclude a dependent from receiving a scholarship provided
for by this section.
(d) This section shall apply to a student receiving a scholarship
on the effective date of the section unless that application would
result in the student receiving a scholarship on less favorable terms
or in a lesser amount, in which case the student shall continue to
receive the scholarship on the same terms and conditions in effect
prior to the effective date of this section.
(e) As used in this section, "dependent" means the children
(natural or adopted) or spouse, at the time of the death or injury,
of the elected public official.
SEC. 85. Section 10340 of the Public Contract Code is amended to
read:
10340. (a) Except as provided by subdivision (b), state agencies
shall secure at least three competitive bids or proposals for each
contract.
(b) Three competitive bids or proposals are not required in any of
the following cases:
(1) In cases of emergency where a contract is necessary for the
immediate preservation of the public health, welfare, or safety, or
protection of state property.
(2) When the agency awarding the contract has advertised the
contract in the California State Contracts Register and has solicited
all potential contractors known to the agency, but has received less
than three bids or proposals.
(3) The contract is with another state agency, a local
governmental entity, an auxiliary organization of the California
State University, an auxiliary organization of a California community
college, a foundation organized to support the Board of Governors of
the California Community Colleges, or an auxiliary organization of
the California Postsecondary Education Commission established
pursuant to Section 69522 of the Education Code. These contracts,
however, may not be used to circumvent the competitive bidding
requirements of this article.
(4) The contract meets the conditions prescribed by the department
pursuant to subdivision (a) of Section 10348.
(5) The contract has been awarded without advertising and calling
for bids pursuant to Section 19404 of the Welfare and Institutions
Code.
(6) Contracts entered into pursuant to Section 14838.5 of the
Government Code.
(7) Contracts for the development, maintenance, administration, or
use of licensing or proficiency testing examinations.
(c) Any agency which has received less than three bids or
proposals on a contract shall document, in a manner prescribed by the
department, the names and addresses of the firms or individuals it
solicited for bids or proposals.
SEC. 86. Section 19533 of the Revenue and Taxation Code is amended
to read:
19533. In the event the debtor has more than one debt being
collected by the Franchise Tax Board and the amount collected by the
Franchise Tax Board is insufficient to satisfy the total amount
owing, the amount collected shall be applied in the following
priority:
(a) Payment of any delinquencies transferred for collection under
Article 5 (commencing with Section 19270) of Chapter 5.
(b) Payment of any taxes, additions to tax, penalties, interest,
fees, or other amounts due and payable under Part 7.5 (commencing
with Section 13201), Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part.
(c) Payment of delinquent wages collected pursuant to the Labor
Code.
(d) Payment of delinquencies collected under Section 10878.
(e) Payment of any amounts due that are referred for collection
under Article 5.5 (commencing with Section 19280) of Chapter 5.
(f) Payment of any amounts that are referred for collection
pursuant to Section 62.9 of the Labor Code.
(g) Payment of delinquent penalties collected for the Department
of Industrial Relations pursuant to the Labor Code.
(h) Payment of delinquent fees collected for the Department of
Industrial Relations pursuant to the Labor Code.
(i) Notwithstanding the payment priority established by this
section, voluntary payments made by a taxpayer designated by the
taxpayer as payment for a personal income tax liability, shall not be
applied pursuant to this priority, but shall instead be applied
solely to the personal income tax liability for which the voluntary
payment was made.
SEC. 87. Section 19557 of the Revenue and Taxation Code is amended
to read:
19557. (a) Notwithstanding any other provision of law, the
California Postsecondary Education Commission may annually inform
the Franchise Tax Board of the names and social security numbers of
the following persons who have, as part of the Student Aid
Application for California, signed an authorization in a form and
manner mutually agreeable to the Franchise Tax Board and the
California Postsecondary Education Commission for the release by the
Franchise Tax Board of tax information to the California
Postsecondary Education Commission:
(1) All applicants for, or recipients of, student financial aid.
(2) Parents of dependent applicants for, or recipients of, student
financial aid.
(3) Spouses of applicants for, or recipients of, student financial
aid.
(b) The California Postsecondary Education Commission shall
submit the names and social security numbers as authorized in
subdivision (a) in the form and manner prescribed by the Franchise
Tax Board.
(c) Upon receipt of this information, the Franchise Tax Board may
provide the California Postsecondary Education Commission, from
state tax returns of individuals described in subdivision (a), their
California adjusted gross income and the California income
adjustments as are necessary to calculate their federal adjusted
gross income, or any other information from their state tax return,
that can be provided by the Franchise Tax Board through its automated
process, that the California Postsecondary Education Commission
needs to administer the program for which the authorization was
given.
(d) All versions of the Student Aid Application for California
shall include the authorization described in subdivision (a). The
Franchise Tax Board may from time to time audit these authorizations.
All processors of the Student Aid Application for California shall
provide the Franchise Tax Board with access to any records necessary
for completing these audits. The Franchise Tax Board shall report
all audit findings to the California Postsecondary Education
Commission.
(e) Any unwarranted disclosure or use of the tax information
described in subdivision (c) by the California Postsecondary
Education Commission, or its employees and officers thereof, is a
misdemeanor as provided in Section 19552.
SEC. 88. Section 5024 of the Vehicle Code is amended to read:
5024. (a) Any person described in Section 5101 may also apply for
a set of commemorative collegiate reflectorized license plates, and
the department shall issue those special license plates in lieu of
the regular license plates. The collegiate reflectorized plates
shall be of a distinctive design, and shall be available in a special
series of letters or numbers, or both, as determined by the
department. The collegiate reflectorized plates shall also contain
the name of the participating institution as well as the
reflectorized logotype, motto, symbol, or other distinctive design,
as approved by the department, representing the participating
university or college selected by the applicant.
(b) Any public or private postsecondary educational institution in
the state, which is accredited or has been accepted as a recognized
candidate for accreditation by the Western Association of Schools and
Colleges, may indicate to the department its decision to be included
in the commemorative collegiate license plate program and submit its
distinctive design for the logotype, motto, symbol, or other design.
However, no public or private postsecondary educational institution
may be included in the program until not less than 5,000
applications are received for license plates containing that
institution's logotype, motto, symbol, or other design. Each
participating institution shall collect and hold applications for
collegiate license plates until it has received at least 5,000
applications. Once the institution has received at least 5,000
applications, it shall submit the applications, along with the
necessary fees, to the department. Upon receiving the first
application, the institution shall have one calendar year to receive
the remaining required applications. If, after that one calendar
year, 5,000 applications have not been received, the institution
shall refund to all applicants any fees or deposits which have been
collected.
(c) In addition to the regular fees for an original registration,
a renewal of registration, or a transfer of registration, the
following commemorative collegiate license plate fees shall be paid:
(1) Fifty dollars ($50) for the initial issuance of the plates.
These plates shall be permanent and shall not be required to be
replaced.
(2) Forty dollars ($40) for each renewal of registration which
includes the continued display of the plates.
(3) Fifteen dollars ($15) for transfer of the plates to another
vehicle.
(4) Thirty-five dollars ($35) for replacement plates, if the
plates become damaged or unserviceable.
(d) When payment of renewal fees is not required as specified in
Section 4000, or when the person determines to retain the
commemorative collegiate license plates upon sale, trade, or other
release of the vehicle upon which the plates have been displayed, the
person shall notify the department and the person may retain the
plates.
(e) Of the revenue derived from the additional special fees
provided in this section, less costs incurred by the department
pursuant to this section, one-half shall be deposited in the
California Collegiate License Plate Fund, which is hereby created,
and one-half shall be deposited in the Resources License Plate Fund,
which is hereby created.
(f) The money in the California Collegiate License Plate Fund is,
notwithstanding Section 13340 of the Government Code, continuously
appropriated to the Controller for allocation as follows:
(1) To the governing body of participating public institutions in
the proportion that funds are collected on behalf of each, to be used
for need-based scholarships, distributed according to federal
student aid guidelines.
(2) With respect to funds collected on behalf of accredited
nonprofit, private, and independent colleges and universities in the
state, to the California Postsecondary Education Commission for
grants to students at those institutions, in the proportion that
funds are collected on behalf of each institution, who demonstrate
eligibility and need in accordance with the Cal Grant Program
pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42
of the Education Code, but who did not receive an award based on a
listing prepared by the California Postsecondary Education
Commission.
(g) The scholarships and grants shall be awarded without regard to
race, religion, creed, sex, or age.
(h) The money in the Resources License Plate Fund is available,
upon appropriation, for the purposes of natural resources
preservation, enhancement, and restoration.
(i) All revenues deposited in, and expenditures from, the
California Collegiate License Plate Fund shall be audited by the
Auditor General on December 1, 1993, and December 1, 1995.
SEC. 89. Sections 1 to 79, inclusive, and Sections 81 to 88, of
this act shall become operative on July 1, 2005.