California Senate Bill SB1264 Amended / Bill

 BILL NUMBER: SB 1264AMENDED BILL TEXT AMENDED IN SENATE APRIL 2, 2014 INTRODUCED BY Senator Pavley FEBRUARY 21, 2014 An act to  amend Section 69612.5 of   add Article 7.7 (commencing with Section 69630) to Chapter 2 of Part 42 of Division 5 of Title 3 of  the Education Code, relating to student financial aid. LEGISLATIVE COUNSEL'S DIGEST SB 1264, as amended, Pavley. Student financial aid:  Assumption Program of Loans for Education.   Educator Excellence Program loan assumption agreements.  Existing law establishes the Assumption Program of Loans for Education, administered by the Student Aid Commission, under which any person enrolled in a participating institution of postsecondary education, or any person who agrees to participate in a teacher trainee or teacher internship program, is eligible to enter into an agreement for loan assumption, to be redeemed pursuant to a prescribed procedure upon becoming employed as a teacher if he or she satisfies certain conditions. Existing law requires the applicant to agree, among other things, to teach full time for at least 4 consecutive academic years or on a part-time basis the equivalent of 4 consecutive academic years at an eligible school. Existing law defines "eligible school" to mean, among other things, a school that is ranked in the lowest 2 deciles on the Academic Performance Index, a measure of the performance of schools and school districts. This bill would amend the definition of "eligible school" to mean, among other things, a school that is ranked in the lowest 3 deciles on the Academic Performance Index.   establish the Educator Excellence Program under the administration of the Student Aid Commission. The bill would authorize the issuance, under that program, of up to 6,500 agreements for the assumption of student loans in a school year, up to a total loan assumption of $11,000 after 4 years of qualifying service in a school district that has qualified for a local control funding formula concentration grant, teaching in a subject ar   ea that has been designated by the Superintendent of Public Instruction as a current or projected shortage area. The bill would establish   procedures for persons to apply for these loan assumption agreements and criteria for the determination of eligibility to enter into these agreements.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Article 7.7 (commencing with Section 69630) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the   Education Code   , to read:   Article 7.7. Educator Excellence Program Loan Assumption Agreements 69630. (a) The Legislature finds and declares all of the following: (1) Entry into the state's teacher preparation programs has been declining rapidly, even though student enrollments are on the rise and projected to increase further over the next decade. (2) The rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make the availability of financial aid and loan repayment assistance options an important consideration in a student's decision to pursue a postsecondary education. (3) Despite the layoffs that appear to create a surplus of teachers, teacher shortages continue to exist. Current shortages are in fields such as special education, mathematics, physical science and bilingual education/English language development, as well as in many high-poverty schools. Through economic conditions, student preferences, and changes in expectations in the teaching profession, teacher shortage areas change over time. (4) Huge educational and financial costs of more than $7 billion per year nationally are associated with replacing teachers and leaders who leave schools prematurely. (5) There is a crisis in the preparation of special education teachers, who comprise the majority of underprepared teachers. The most important factor in serving special education students well is the knowledge and skills of their teachers. Without sufficient training and certification in the field of special education, costs increase as other services are added to compensate for inadequate instruction. (6) Through the Educator Excellence Program (EEP), the state could better meet its educational needs by providing the opportunity for financial assistance to qualified educators who will serve California' s students in shortage fields, as determined. Particularly in the area of special education, this investment will reap huge benefits in better-served students who will have a much lower need for remediation and other services, and a lower rate of grade retention. (7) In an effort to decrease the achievement gap and support all students in becoming ready for college and career, California should provide financial support to qualified persons seeking a specialized and focused content area master's degree in education or teaching and National Board Certification to increase the number of highly qualified and competent teachers teaching in California's lowest performing elementary and secondary schools. (8) National Board for Professional Teaching Standards certification is the most widely recognized certificate of educator excellence. (b) The Commission on Teacher Credentialing (CTC), in consultation with the department, shall conduct a thorough study at least every three years, as determined by the Superintendent, to determine priority areas for EEP loan assumption agreements. This study will identify areas of greatest need and award EEP loan assumption agreements based on specific criteria. This study will include the following: (1) A list of teaching fields that have the most critical shortages of teachers, as defined. The Superintendent shall review this list at least every three years and revise the list based on the most current study conducted by the CTC, in accordance with subdivision (b). The list of areas of teacher shortage furnished pursuant to this subdivision shall include the state special schools as a category separate from special education. (2) A list of schools that serve a large population of pupils from low-income families, as designated for purposes of the federal Perkins loan program, or according to standards that the Superintendent deems appropriate. (3) A list of schools with a high percentage of teachers holding emergency-type permits. The list shall be established according to criteria determined by the Superintendent. (4) A list of schools serving rural areas. (5) A list of the lowest performing and hardest to staff schools. (6) A list of high-priority schools. (7) Other information as determined by the Superintendent. (c) Annual EEP loan forgiveness awards will be determined based on the most current study conducted by the CTC under these provisions. (d) It is the intent of the Legislature that the EEP be designed to accomplish both of the following: (1) Provide outstanding postsecondary students, particularly economically disadvantaged students, with financial assistance to encourage them to complete postsecondary education programs leading to teaching credentials. (2) Provide veteran teachers with financial assistance to encourage them to pursue additional teaching or content area authorizations and credentials, a specialized and focused content area master's degree in an education or teaching subject matter area other than education administration, or National Board Certification. EEP recipients shall agree to teach in the lowest performing, hardest to staff schools or designated subject-matter shortage areas, based on the most current study conducted by the CTC under these provisions. (e) The Superintendent shall convene a working group at least every three years to establish priorities, based on the most current study completed by the CTC. EEP awards shall be authorized consistent with the program goals, targeting high-need, low-performing schools and districts in accordance with current Assumption Program of Loans for Education program regulations and governing federal law and regulations including, but not necessarily limited to, paragraph (6) of subdivision (g) of Section 682.210 of Title 34 of the Code of Federal Regulations, relating to the targeted deferment of student loan payments. 69631. (a) The Educator Excellence Program (EEP) is hereby established under the administration of the Student Aid Commission. (b) An EEP participant shall meet all of the following eligibility criteria prior to selection for the program, and shall continue to meet these criteria, as appropriate, during the payment periods: (1) For participants enrolled in postsecondary education programs leading to initial teaching credentials, 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, or has been admitted to a program of professional preparation that has been approved by the Commission on Teacher Credentialing. Qualified candidates from another state who have received an equivalent credential, authorizing service for kindergarten or any of grades 1 to 12, inclusive, as determined by the Superintendent, may also be considered for participation in the EEP. (2) For participants enrolled in postsecondary education programs leading to a qualifying master's degree in education or teaching, National Board Certification, or an additional authorization or credential, applicants shall meet similar requirements consistent with enrollment in these graduate degree and postcertification programs. (3) For participants enrolled in postsecondary education programs leading to initial or additional teaching credentials, the applicant has agreed to teach full time for at least four consecutive academic years, or on a part-time basis for the equivalent of four full-time academic years, in a subject area that is designated as a current or projected area of teacher shortage by the Superintendent on the date the teacher is hired by a school district that has qualified for a local control funding formula concentration grant pursuant to Section 42238.02, and according to qualifying criteria set forth by the Superintendent. (4) For participants enrolled in postsecondary education programs leading to a qualifying master's degree in education or teaching, or National Board Certification, the applicant shall have earned a California Professional Clear Teaching Credential or equivalent credential from another state, be a practicing educator, and agree to teach full time for at least four consecutive academic years, or on a part-time basis for the equivalent of four full-time academic years, in a school district that has qualified for a local control funding formula concentration grant pursuant to Section 42238.02, and according to qualifying criteria set forth by the Superintendent. (5) The terms of service for each participant in the EEP are to be established as of the year the participant enters into the program. Participants in the EEP must fully and completely satisfy the requirements of the program within six years of the enrollment date. EEP participants who do not fulfill the terms of service and who do not satisfy their teaching requirements within six years of entering the program must fully repay the State of California all funds awarded them for loan assumptions resulting from their participation in the program. 69632. In the academic years in which the study is completed by the Commission on Teacher Credentialing, in consultation with the department, pursuant to subdivision (b) of Section 69630, the Superintendent shall develop priority areas for EEP awards, on or before January 1 of that academic year, which shall be based on the study findings. The Student Aid Commission shall provide EEP loan forgiveness awards as determined by the Superintendent. 69633. The Student Aid Commission shall commence loan assumption payments, as specified in Section 69634, upon verification that the applicant is qualified based on the following: (a) The EEP participant has received a California preliminary credential, or an equivalent credential from another state, authorizing service for kindergarten or any of grades 1 to 12, inclusive, in an area of teacher shortage as determined by the Superintendent pursuant to Section 69631. (b) The EEP participant has received a qualifying master's degree in education or teaching, National Board Certification, or additional teaching credential in an area of teacher shortage as defined by the Superintendent pursuant to Section 69631. (c) The applicant has met the requirements of the agreement and all other pertinent conditions of this chapter. 69634. (a) The terms of a loan assumption granted under this article shall be as follows, subject to the specific terms of each agreement: (1) After a program participant has completed one school year of classroom instruction, verified pursuant to Section 69633, the commission shall assume up to two thousand dollars ($2,000) of the participant's outstanding liability under one or more of the designated educational loan programs. (2) After a program participant has completed two consecutive school years of instruction, the commission shall assume up to an additional three thousand dollars ($3,000) of the participant's outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to five thousand dollars ($5,000). (3) After a program participant has completed three consecutive school years of teaching service, the commission shall assume up to a maximum of an additional three thousand dollars ($3,000) of the participant's outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to eight thousand dollars ($8,000). (4) After a program participant has completed four consecutive school years of teaching service, the commission shall assume up to a maximum of an additional three thousand dollars ($3,000) of the participant's outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to eleven thousand dollars ($11,000). (b) For purposes of this section, "school year" means at least 175 school days or its equivalent. (c) An applicant who teaches on less than a full-time basis may participate in the program, but shall not be eligible for loan repayment until that person teaches for the equivalent of a full-time academic year. 69635. The Superintendent shall develop priority areas for EEP awards at least every three years, as determined by the Superintendent, based on the most current study conducted by the Commission on Teaching Credentialing to determine areas of critical need in the teaching profession. The State Department of Education shall solicit the advice of representatives from postsecondary education institutions, the Commission on Teacher Credentialing, school districts, and county offices of education regarding proposed rules and regulations. 69636. (a) For the EEP, the Student Aid Commission shall report annually to the Governor and the Legislature regarding all of the following, on the basis of sex, age, and ethnicity: (1) The total number of program participants. (2) The number of agreements entered into with juniors, seniors, students enrolled in teacher training programs, and current teachers who enroll in qualifying master's degree in education or teaching or National Board Certification programs. (3) The number of participants who agree to teach in an area of teacher shortage. (4) The number of participants who agree to teach in schools with a high ratio of pupils from low-income families and in schools that have been designated as the lowest performing or hardest to staff. (5) The number of participants who agree to teach in schools serving rural areas. (6) The number of participants who receive a loan assumption benefit, classified by payment year. (7) The number of out-of-state teachers who enter into agreements. (8) The number of participants who have participated in teacher internship programs, classified by school district or county office of education. (9) The number of participants who agree to teach in schools with a high percentage of students with disabilities or language minority students. (b) The Superintendent shall use the data reported pursuant to subdivision (a), and other information and factors, in meeting the requirements of Section 69635. 69637. For each school year, the Student Aid Commission shall enter into agreements for the assumption of up to 6,500 student loans for program participants eligible under this chapter. 69638. It is the intent of the Legislature that the Educator Excellence Program be fully funded commencing with the Budget Act of 2015. Notwithstanding any other law, in any fiscal year, the Student Aid Commission shall award no more than the number of loan assumption agreements that are authorized by the Governor and the Legislature in the annual Budget Act for that year for the assumption of loans pursuant to this article.   SECTION 1.   Section 69612.5 of the Education Code is amended to read: 69612.5. For purposes of this article, the following terms have the following definitions: (a) "Eligible institution" means a postsecondary institution that is determined by the Student Aid Commission to meet both of the following requirements: (1) The institution is eligible to participate in state and federal financial aid programs. (2) The institution maintains a program of professional preparation that has been approved by the Commission on Teacher Credentialing. (b) "Eligible school" means a school that meets any of the following criteria: (1) It serves a large population of pupils from low-income families, as designated by the Superintendent. (2) The institution has 20 percent or more teachers holding emergency-type permits including, but not limited to, any of the following: (A) Provisional internships. (B) Short-term staff permits. (C) Credential waivers. (D) Substitute permits. (3) It is a school that is ranked in the lowest three deciles on the Academic Performance Index. (4) It is a school that serves a rural area.