California Senate Bill SB1264 Amended / Bill

 BILL NUMBER: SB 1264AMENDED BILL TEXT AMENDED IN SENATE MAY 7, 2014 AMENDED IN SENATE APRIL 28, 2014 AMENDED IN SENATE APRIL 2, 2014 INTRODUCED BY Senator Pavley FEBRUARY 21, 2014 An act to 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: 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 establish the Educator Excellence Program under the administration of the Student Aid Commission. The bill would require the commission  , in coordination with the Superintendent,  to develop procedures for the evaluation and selection of qualified applicants for participation in the program. The bill would specify eligibility criteria that participants in the program would be required to meet. 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, of which up to 400 would be for credentialed teachers as specified, 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 area that has been designated by the Superintendent of Public Instruction as a current or projected  shortage  area  of teacher shortage  . The bill would express the intent of the Legislature that this program be fully funded commencing with the Budget Act of 2015. 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 seven billion dollars ($7,000,000,000) 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 fields with teacher shortages, 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 schools with a concentration of high-needs students. (8) National Board for Professional Teaching Standards certification is the most widely recognized certificate of educator excellence. (b) 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 in designated subject matter areas in which there is a shortage of teachers, a specialized and focused content area master's degree in an education or teaching subject matter area other than education administration, or National Board for Professional Teaching Standards certification. EEP recipients shall agree to teach in schools with a concentration of high-needs students, based on the most current study conducted by the CTC under these provisions. 69630.5. For purposes of this article, "agreement" means an agreement pursuant to Section 69631 or 69632 committing the state to assume the loans of a teacher who satisfies the terms specified in subdivision (h) of Section 69631 and elsewhere in this article. 69631. (a) The Educator Excellence Program (EEP) is hereby established under the administration of the Student Aid Commission. The commission shall administer this article, and shall adopt rules and regulations for this purpose. The rules and regulations shall include, but need not be limited to, provisions regarding the period of time during which an agreement shall remain valid, consistent with subdivisions (b) to (f), inclusive, the reallocation of resources committed to program participants who fail to satisfy the terms of an agreement, and the development of projections for funding purposes. The commission  , in coordination with the Superintendent,  shall develop procedures for the evaluation and selection of qualified applicants for participation in the EEP. (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. (2) For participants enrolled in postsecondary education programs leading to a qualifying master's degree in education or teaching, National Board for Professional Teaching Standards 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 at a schoolsite that has a pupil population with a percentage of unduplicated pupils that is equal to, or greater than, the school district's unduplicated pupil count taken pursuant to Section 42238.02. (4) For participants enrolled in postsecondary education programs leading to a qualifying master's degree in education or teaching, or National Board for Professional Teaching Standards 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  at a schoolsite that has a pupil population with a percentage of unduplicated pupils that is equal to, or greater than, the school district's unduplicated   pupil count taken pursuant to Section 42238.02  . (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  academic and certification  requirements of the program within six years of the enrollment date.  (6) The Superintendent is authorized to designate additional qualifying criteria for participation in the program that he or she deems pertinent to the purposes of this article.   (c) (1) Except as provided in paragraph (3), if a program participant fails to complete a minimum of four consecutive school years of classroom instruction on a full-time basis or the equivalent on a part-time basis as required by this article, under the terms of the agreement pursuant to this article, the participant shall retain full liability for all student loan obligations remaining after the commission's assumption of loan liability for the last year of qualifying teaching service pursuant to subdivision (b).   (2) Except as provided in paragraph (3), if a program participant who is enrolled in a postsecondary educational program leading to a qualifying master's degree in education or teaching, or National Board for Professional Teaching Standards certification, fails to complete a minimum of four consecutive school years of classroom instruction on a full-time basis as required by this article, under the terms of the agreement pursuant to this article, the participant shall fully repay the state all funds awarded to the participant for loan assumptions resulting from his or her participation in the program.   (c)   (3)  Notwithstanding paragraph (5) of subdivision (b), if a program participant pursuing an initial credential or added authorization becomes unable to complete one of the four consecutive years of teaching service on a full-time basis or the equivalent on a part-time basis due to serious illness, pregnancy, or other natural causes, or is called to active military duty status, the participant shall receive a deferral of the resumption of full liability for the loan for a period not to exceed one calendar year, unless approved by the commission for a longer period. The commission shall make no further payments under the loan assumption agreement until the applicable teaching requirements specified in subdivision (b) are again satisfied. (d) (1) Notwithstanding paragraph (5) of subdivision (b), a program participant pursuing an initial credential or added authorization shall receive a deferral of the resumption of full liability for the loan for a period not to exceed one calendar year, unless approved by the commission for a longer period, if the participant becomes unable to complete one of the four consecutive years of teaching service due to being laid off, reassigned, or other reasons beyond the control of the participant, as determined by the commission. (2) The commission shall make no further payments under the loan assumption agreement until the applicable teaching requirements specified in subdivision (b) are again satisfied. (e) If a program participant pursuing an initial credential or added authorization fails to redeem an agreement for student loan assumption within 10 years of the agreement's issuance, the participant shall retain full liability for all of his or her remaining student loan obligations. (f) (1) If a program participant who is enrolled in a postsecondary education program leading to a qualifying master's degree in education or teaching, or National Board for Professional Teaching Standards certification, fails to redeem an agreement for student loan assumption within six years of the agreement's issuance, the participant shall fully repay the state all funds awarded to the participant for loan assumptions resulting from his or her participation in the program. (2) (A) Except as provided in subparagraphs (B) and (C), if a person participating in the program fails to maintain at least one-half time enrollment, as required by this article, under the terms of the agreement pursuant to subdivision (b), the loan assumption agreement shall be invalidated and the participant shall retain full liability for all of his or her student loan obligations. This subparagraph shall not apply if the participant is in his or her final semester or quarter in school and has no additional coursework required to obtain his or her teaching credential. (B) Notwithstanding subparagraph (A), if a program participant is unable to maintain at least one-half time enrollment due to serious illness, pregnancy, or other natural causes, or is called to active military duty status, the term of the loan assumption agreement shall be extended for a period not to exceed one calendar year, unless approved by the commission for a longer period. (C) If a natural disaster prevents a program participant from maintaining at least one-half time enrollment due to the interruption of instruction at the eligible institution, the term of the loan assumption agreement shall be extended for a period not to exceed one calendar year, unless approved by the commission for a longer period. (g) For selection to the program, an applicant shall be judged by his or her postsecondary institution, school district, or county office of education to have outstanding ability or be deserving of special consideration on the basis of criteria that may include, but need not be limited to, any of the following: (1) Grade point average. (2) Test scores. (3) Faculty evaluations. (4) Interviews. (5) Other recommendations. (6) 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 educational loan program approved by the Student Aid Commission. (h) An applicant shall 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 at a schoolsite that has a pupil population with a percentage of unduplicated pupils that is equal to, or greater than, the districts' unduplicated pupil count taken pursuant to Section 42238.02,  in accordance with any additional qualifying criteria set forth by the Superintendent pursuant to paragraph (6) of subdivision (b),  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 area of teacher shortage by the Superintendent, or on the date the teacher is hired at an eligible school. (i) 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 area of teacher shortage by the time the applicant becomes a teacher,  or  if the schoolsite at which the applicant is teaching ceases to have a pupil population with a percentage of unduplicated pupils that is equal to, or greater than, the school district's unduplicated pupil count taken pursuant to Section  42238.02, or if any additional qualifying criterion set forth by the Superintendent pursuant to paragraph (6) of subdivision (b) is later not satisfied due to causes not within the participant's responsibility   42238.02  . (j) For the purposes of calculating eligible years of teaching for the redemption of an award, the inclusion by the Superintendent of a school on a list prepared pursuant to this section shall apply retroactively from the date the school first opened for that school year. (k) A person participating in the program pursuant to this section shall not enter into more than one agreement pursuant to this article. (l) A person participating in the program pursuant to this section shall not owe a refund on any state or federal educational grant or have defaulted on any student loan. 69632. (a) A credentialed teacher teaching in a school district that has qualified for a local control funding formula concentration grant pursuant to Section 42238.02 and at a schoolsite that has a pupil population with a percentage of unduplicated pupils that is equal to, or greater than, the unduplicated pupil count of that school district developed pursuant to Section 42238.02,  and in accordance with any additional qualifying criteria set forth by the Superintendent pursuant to paragraph (6) of subdivision (b) of Section 69631,  and who possesses a clear multiple subject or single subject teaching credential or level II education specialist credential and who has not otherwise participated in the program established by this article, is eligible to enter into an agreement for loan assumption pursuant to this article, subject to applicable provisions of Section 69631. (b) The number of loan assumption agreements provided pursuant to this section shall not exceed 400 per year. (c) On or before January 1, 2016, the Student Aid Commission shall develop and adopt regulations to implement this section. 69633. (a) The department, in consultation with the Commission on Teacher Credentialing, shall conduct a thorough study at least every three years, as determined by the Superintendent, to be included with the report required in Section 44225.6, to determine priority areas for EEP loan assumption agreements. (b) The Superintendent shall convene a working group to establish program priorities, based on the most current study completed by the department. Program awards shall be authorized consistent with the program goals, targeting high-need schools 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. (c) The study conducted pursuant to this section shall identify the areas of greatest need and  award   recommend the awarding of  EEP loan assumption agreements based on specific criteria. The study shall include all of the following: (1) A list of teaching fields that have the most critical shortages of teachers. The Superintendent shall review this list at least every three years, and shall revise the list based on the most current study conducted by the Commission on Teacher Credentialing, in accordance with subdivision (b). The list of areas of teacher shortage furnished pursuant to this paragraph 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)  Additional information useful to make determinations in   Other information on schools and populations, as identified in Sections 2574 and 52060, that can assist in the determination of priority  areas of educational  need and direct new program awards toward those areas of program focus   need  . (d) In the academic years in which the study is completed by the department, in consultation with the Commission on Teacher Credentialing, pursuant to subdivision (a), 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   (e)     The Superintendent shall develop priority areas for EEP awards at least every three years,   based on the most current study conducted by the Commission on Teacher Credentialing to determine areas of critical need in the teaching profession. On or before December 31 of each year, the Superintendent shall furnish the Student Aid Commission with information from the study conducted pursuant to subdivision (c). The  Student Aid Commission shall provide program loan forgiveness awards, based on the most current study conducted by the Superintendent pursuant to subdivision (c). 69634. The Student Aid Commission shall commence loan assumption payments, as specified in Section 69635, 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 69633. (b) The EEP participant has received a qualifying master's degree in education or teaching, National Board for Professional Teaching Standards certification, or an 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. 69635. (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 69634, 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.  69636. (a) 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 Teacher 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. (b) On or before December 31 of each year, the Superintendent shall furnish the Student Aid Commission with all of the following: (1) A list of teaching fields that have the most critical shortages of teachers. The Superintendent shall review this list annually, and shall revise the list as he or she deems necessary. The list of areas of teacher shortage furnished pursuant to this paragraph 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 Perkins Loan Program, or according to standards 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. The list shall be established according to standards deemed appropriate by the Superintendent. (5) A list of schools that have a pupil population with a percentage of unduplicated pupils that is equal to, or greater than, the unduplicated pupil count of the applicable school district taken pursuant to Section 42238.02. (6) A list of high priority schools. (7) Other information on schools and populations, as identified in Sections 2574 and 52060, to make determinations in areas of educational need and direct new program awards at those areas of program focus.   69637.   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 for Professional Teaching Standards 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  69636   69633  .  69638.   69637.  (a) The Student Aid Commission shall solicit the advice of representatives from postsecondary education institutions, the department, the Commission on Teacher Credentialing, school districts, and county offices of education regarding proposed rules and regulations. (b) (1) The Student Aid Commission shall distribute program information and student applications to participate in the loan assumption program to each eligible institution and to each school district or county office of education operating a district intern program pursuant to Section 44381. Each eligible institution shall receive at least one allocation, and the remainder shall be distributed to eligible institutions proportionate to the number of teaching candidates from each institution who completed the coursework required for a teaching credential based on the most recent data available from the Commission on Teacher Credentialing. (2) The Student Aid Commission shall reexamine its outreach and marketing strategies to inform both potential undergraduates and persons employed outside of academia about the availability and benefits of the loan assumption program. To this end, the commission shall enlist the advice and support of the California Center for the Teaching Profession, the University of California, the California State University, the Association of Independent California Colleges and Universities, and private employers and their associations throughout the state. (c) Each eligible institution, school district, and county office of education shall sign an institutional agreement with the Student Aid Commission, certifying its intent to administer the loan assumption program according to all applicable published rules, regulations, and guidelines, and to make special efforts to notify students regarding the availability of the program, particularly economically disadvantaged students. (d) To the extent feasible, each eligible institution shall coordinate the loan assumption program with other programs designed to recruit students to enter the teaching profession.  69638.5.   69637.5.  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 article.  69638.7.   69637.7.  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.