BILL ANALYSIS                                                                                                                                                                                                    


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                                 THIRD READING

          Bill No:  AB 1476
          Author:   Assembly Budget Committee 
          Amended:  8/22/12 in Senate
          Vote:     21


           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


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             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 

             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 

             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 



                                                               AB 1476

                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 

             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.   



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                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 


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