BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1476| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1476 Author: Assembly Budget Committee Amended: 8/22/12 in Senate Vote: 21 PRIOR SENATE VOTES NOT RELEVANT ASSEMBLY FLOOR : Not relevant SUBJECT : 2012-13 Budget Trailer Bill: Education SOURCE : Author DIGEST : This bill makes various changes to state laws regarding K-12 and higher education, including financial aid programs, necessary for the implementation of the Budget Act of 2012. Senate Floor Amendments of 8/22/12 delete the prior version of the bill concerning Education budget items and replace it with new Education items to reflect the follow-up agreement to the Budget enacted in June. ANALYSIS : This bill make the following statutory revisions affecting K-12 and higher education, including postsecondary financial aid, as part of the 2012-13 Budget, as follows: 1. K-12 Education CONTINUED AB 1476 Page 2 A. Technical Revisions to Proposition 98 Reappropriations . Amends the Budget Act of 2011 to correct scoring that is a part of a Proposition 98 funding swap for special education utilized to achieve one-time budget savings in 2011-12. B. Technical Correction to Quality Education Investment Act (QEIA) Appropriation . Corrects the appropriations for the QEIA program in 2013-14 to reflect amounts agreed to as a part of the 2012-13 Budget. C. Technical Clean-Up Affecting Financing of Working Capital for Charter Schools . Makes changes to existing statute to ensure that intercept payments relating to facilities working capital financing/ bond issuances under the California School Financing Authority for districts, counties, and charter schools include funds dispersed pursuant to the Education Protection Account should the tax initiative pass. This language is needed to implement charter school facilities working capital refinancing options enacted as a part of the 2012-13 Budget. D. Technical Update for Education Mandates Funding . Adds five, small mandates to the K-12 education mandate block grant established by the 2012-13 Budget. These very small mandates were inadvertently left off the mandates block grant list. E. Modification of Behavior Intervention Plan Mandate to Eliminate Unnecessary Costs . Makes statutory changes regarding positive behavior interventions for students with disabilities in order to maintain protections for students contained in federal law and specific state regulations, and to reduce state mandate costs. More specifically, the amendments clarify state law in order to conform to federal law governing the use of positive behavior interventions for students with disabilities whose behavior interferes with his or her learning or that of others. The amendments repeal existing regulations found to be mandated activities while also codifying CONTINUED AB 1476 Page 3 provisions of these current state regulations that both prohibit behavior interventions that are harmful to students, and continue emergency interventions and emergency reports. In addition, the amendments also appropriate one-time federal carryover funds to the Department of Education to develop procedures and provide technical assistance to school districts about the use of positive behavior interventions. 2. Higher Education A. 2012-13 Enrollment Target for the University of California (UC) . Reinstates the expectation that the UC will enroll a total of 209,977 state-supported full-time equivalent students during the 2012-13 academic year. This target was included in the Budget Act of 2012 but was subsequently vetoed by the Governor. As a condition of receipt of state GF in 2012-13, requires the UC to report to the Legislature by May 1, 2013, on whether it has met the enrollment goal. B. UC Merced Academic Building: Design Phase Funding . Appropriates $4.75 million in 2006 General Obligation bond funds for the costs of preliminary plans and working drawings for a new Classroom and Academic Office Building at UC Merced. Includes budget bill provisional language, which has been included in the past several budgets on GO-bond funded UC capital outlay projects, to authorize expenditure of any savings as specified and require payment of prevailing wage rates. C. Cal Grant Program: Institutional Eligibility . Clarifies existing law, adopted as part of the 2011 Budget Act, that an institution that is ineligible to participate in the Cal Grant program shall regain its eligibility in the academic year for which it satisfies the eligibility requirements. Under existing law, federally reported cohort default rate (CDR) and graduation rate data is certified by the California Student Aid Commission (CSAC) in October of each year. That data becomes the basis for program eligibility in the following academic year. CONTINUED AB 1476 Page 4 Current law also specifies that an institution must have a CDR under 15.5% and a graduation rate greater than 30% to be eligible for the program. This amendment clarifies that an institution that is ineligible in the 2012-13 academic year shall regain its eligibility in the 2013-14 academic year if it satisfies the eligibility tests based on the fall 2012 data. CSAC has interpreted existing law to read as a two-year exclusion from the program. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: Yes PQ:m 8/23/12 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED