California Senate Bill SB62 Amended / Bill

 BILL NUMBER: SB 62AMENDED BILL TEXT AMENDED IN SENATE MARCH 18, 2015 INTRODUCED BY  Senator   Pavley   Senators   Pavley,   Block,   and Huff   (   Coauthors:   Senators   Hertzberg,   Vidak,   and Wieckowski   )   (   Coauthors:   Assembly Members   Chu,   Dodd,   Cristina Garcia,   Olsen,   and Rodriguez   )  DECEMBER 30, 2014 An act to  add and repeal Section 69615.9   amend Sections 69612, 69612.5, 69613, 69613.1,   69615.4, 70000, and 70001  of  , to add Sections 69615.5, 69615.9, 70006, 70007, and 70008 to, to repeal Section 69613.8 of, and to repeal and add Section 69613.7 of,  the Education Code, relating to student financial aid. LEGISLATIVE COUNSEL'S DIGEST SB 62, as amended, Pavley. Student financial aid: Assumption Program of Loans for  Education.   Education: Governor's Teaching Fellowships Program   .  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.  This bill would among other things, require a program participant to teach in a teaching field with a critical shortage of teachers and to demonstrate financial need, revise the information that the Superintendent is required to furnish to the commission annually regarding the program, and make conforming changes.   Existing law establishes the Governor's Teaching Fellowships Program to be administered by the Chancellor's office of the California State University. The program requires the chancellor to collaborate with the University of California, the California Community Colleges, the Association of Independent California Colleges and Universities, the State Department of Education, and the Commission on Teacher Credentialing to ensure that access to the fellowships is available to students in a variety of teaching preparation programs, and defines a "high-priority school" for purposes of implementation and administration of the program.   This bill would remove the State Department of Education and add the Superintendent of Public Instruction and the California Student Aid Commission to the list of entities which with the chancellor is required to collaborate, and would change the definition of "high-priority school" for these purposes, as specified.   The bill would prohibit a person from participating in the Assumption Program of Loans for Education and the Governor's Teaching Fellowships Program concurrently, and would require both programs to continue to be implemented as they read on January 1, 2015, for purposes of collecting payments from former program participants required to repay costs as of January 1, 2016, for failing to satisfy the requirements for participation.   Existing law requires the Student Aid Commission to make an annual report to the Legislature that includes specified information about program participants.   This bill would require the State Department of Education, in conjunction with the Student Aid Commission, to report to the Legislature on or before January 1, 2017, on the need for the program, any modifications that may be needed to improve the program' s effectiveness in increasing the supply of high-quality teachers for high-needs and low-performing schools, and the need to establish new recruitment and financial aid programs to accomplish that objective.  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.   Section 69612 of the   Education Code   is amended to read:  69612. (a) The Legislature finds and declares all of the following: (1) The growing shortage of high-quality teachers is most serious in particular subject areas, partly due to the shortage of students in these fields who enter the teaching profession. (2) Many school districts have difficulty recruiting and retaining high-quality teachers for  schools ranked in decile 1 or 2 on the Academic Performance Index, for  pupils with special needs, for schools serving rural areas or large populations of pupils from low-income and linguistic minority families, and for schools with a high percentage of teachers holding emergency-type permits. (3) 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. (b) It is, therefore, the intent of the Legislature that the Assumption Program of Loans for Education be designed to provide  veteran teachers and  outstanding postsecondary students, particularly economically disadvantaged students, with the assurance of financial assistance to encourage them to complete postsecondary education programs leading to teaching credentials, and to seek employment as teachers in designated subject-matter shortage areas or in schools serving a large population of pupils from low-income  families,   families or  schools with a high percentage of teachers holding emergency-type  permits, or schools ranked in the lowest two deciles on the Academic Performance Index.   permits.   SEC. 2.   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 of Public Instruction   qualifies for funding under Section 11(a) (1)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F))  . (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 two deciles on the Academic Performance Index.   (4)   (   3)  It is a school that serves a rural area.  SEC. 3.   Section 69613 of the   Education Code   is amended to read:  69613. (a) Program participants shall meet all of the following eligibility criteria prior to selection in the program and shall continue to meet these criteria, as appropriate, during the payment periods: (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 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 in, 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. (A) Except as provided in subparagraphs (B) and (C), if a person participating in the program fails to maintain at least half-time enrollment, as required by this article, under the terms of the agreement pursuant to paragraph (2), the loan assumption agreement shall be invalidated and the participant shall retain full liability for all 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 half-time enrollment due to serious illness, pregnancy, or other natural causes, or is called to active military duty status, the participant is not required to retain full liability for the student loan obligation 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 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. (3) The applicant has been judged by his or her postsecondary institution, school district, or county office of education 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 educational loan   from a  program approved by the Student Aid Commission. (5) 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, 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, on the date the teacher is hired, at an eligible school.  (6) The applicant has demonstrated financial need.   (7) The applicant will be teaching in a shortage area, as determined by the Superintendent of Public Instruction pursuant to subdivision (a) of Section 69613.1.  (b) 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. (c) For the purposes of calculating eligible years of teaching for the redemption of an award, the inclusion by the Superintendent of Public Instruction of a school on a list prepared pursuant to Section 69613.1 shall apply retroactively from the date the school first opened. (d) A person participating in the program pursuant to this section shall not enter into more than one agreement. (e) 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.  (f) Notwithstanding any other provision of this section, a credentialed teacher teaching in a public school ranked in the lowest two deciles on the Academic Performance Index pursuant to Section 52052, 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. The number of loan assumption agreements provided pursuant to this subdivision shall not exceed 400 per year. The commission shall develop and adopt regulations for the implementation of this subdivision by January 1, 2010.   SEC. 4.   Section 69613.1 of the   Education Code   is amended to read:  69613.1. On or before January 1 of each year, the Superintendent of Public Instruction shall furnish the commission with all of the following: (a) A list of teaching fields that have the most critical shortage of teachers. The Superintendent shall review this list annually and revise the list as he or she deems necessary. The list of shortage areas furnished pursuant to this subdivision shall include the state special schools as a category separate from special education. (b) A list of schools that serve a large population of pupils from low-income families, as  designated for purposes of the Perkins Loan Program,   determined by eligibility for services pursuant to   Section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F))  or according to standards the Superintendent deems appropriate. (c) 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. (d) A list of schools serving rural areas. The list shall be established according to standards deemed appropriate by the Superintendent.  (e) A list of schools ranked in the lowest two deciles on the Academic Performance Index.   (f) A list of high priority schools.   SEC. 5.   Section 69613.7 of the   Education Code   is repealed.   69613.7. (a) For the purposes of this article, "subject matter shortage area" may not be construed to include teaching in a self-contained classroom or teaching pursuant to a multiple subject credential. (b) The list, furnished by the Superintendent of Public Instruction pursuant to Section 69613.1 and relating to teaching fields that have the most critical shortage of teachers, shall not include teaching in a self-contained classroom or teaching pursuant to a multiple subject credential.   SEC. 6.   Section 69613.7 is added to the   Education Code   , to read:   69613.7.   In addition to the amounts set forth in subdivision (a) of Section 69613.4, for each of the four years of classroom instruction referenced in that subdivision, loan assumption benefits shall be granted as follows:   (a) One thousand dollars ($1,000) of additional liability per year shall be assumed for a person who holds a credential appropriate for teaching, and who teaches, mathematics, science, or special education.   (b) Not more than a total of five million dollars ($5,000,000) shall be expended in any academic year for purposes of this section.   (c) The commission shall award benefits payable under this section upon receipt of all documentation necessary to establish eligibility for the additional loan assumption benefits. Payments shall be made to applicants in the order that full documentation is received until the five million dollars ($5,000,000) authorized by subdivision (b) has been expended.   SEC. 7.   Section 69613.8 of the   Education Code   is repealed.   69613.8. In addition to the amounts set forth in subdivision (a) of Section 69613.4, for each of the four years of classroom instruction referenced in subdivision (a) of Section 69613.4, the following loan assumption benefits shall be granted: (a) One thousand dollars ($1,000) of additional liability per year shall be assumed for a person who holds a credential appropriate for teaching, and who teaches, mathematics, science, or special education in the lowest 60 percentile of Academic Performance Index rankings. (b) One thousand dollars ($1,000) of additional liability per year shall be assumed for a person who teaches in a school in the lowest two deciles on the Academic Performance Index rankings. Eligibility for the benefit set forth in this subdivision shall be limited to a person who holds a credential appropriate for teaching, and who teaches, mathematics, science, or special education. (c) Not more than a total of five million dollars ($5,000,000) shall be expended in any academic year for the purposes of this section. (d) The commission shall award benefits payable under this section upon receipt of all documentation necessary to establish eligibility for the additional loan assumption benefits. Payments shall be made to applicants in the order received until the five million dollars ($5,000,000) authorized by subdivision (c) has been expended.   SEC. 8.   Section 69615.4 of the   Education Code   is amended to read:  69615.4. The commission shall report annually to the Legislature regarding all of the following, on the basis of sex, age, and ethnicity: (a) The total number of program participants. (b) The number of agreements entered into with juniors, seniors, students enrolled in teacher training programs, and persons who agree to enroll in teacher internship programs. (c) The number of participants who agree to teach in a subject matter shortage area.  (d) The number of participants who agree to teach in schools with a high ratio of pupils from low-income families and in schools ranked in the lowest two deciles on the Academic Performance Index.   (e)   (   d)  The number of participants who agree to teach in schools serving rural areas.  (f)   (  e)  The number of participants who agree to teach in schools with a high percentage of teachers holding provisional internship permits.  (g)   (   f)  The number of participants who receive a loan assumption benefit, classified by payment year.  (h)   (   g)  The number of out-of-state teachers who enter into agreements.  (i)   (   h)  The number of participants who have participated in teacher internship programs, classified by school district or county office of education.  SEC. 9.   Section 69615.5 is added to the  Education Code   , to read:   69615.5. Participants in the program shall be prohibited from participating in the Governor's Teaching Fellowships Program concurrently.   SEC. 10.   Section 69615.9 is added to the   Education Code   , to read:   69615.9. The commission shall continue to implement the program as it read on January 1, 2015, for purposes of collecting payments from former program participants required to repay program costs as of January 1, 2016, for failing to satisfy the program's requirements.   SEC. 11.   Section 70000 of the   Education Code   is amended to read:  70000. (a) The Governor's Teaching Fellowships Program is hereby established to be administered by the Chancellor's office of the California State University. The chancellor's office shall collaborate with the University of California, the California Community Colleges, the Association of Independent California Colleges and Universities, the  State Department of Education,   Superintendent of Public Instruction, the California Student Aid Commission,  and the Commission on Teacher Credentialing to ensure that access to the fellowships is available to students in a variety of teaching preparation programs. (b) In January 2001, 250 nonrenewable graduate teaching fellowships in the amount of twenty thousand dollars ($20,000) each shall be awarded, with funds disbursed one-half in January 2001 and one-half in September 2001. (c) During the 2001-02 fiscal year, 1,000 nonrenewable, graduate teaching fellowships in the amount of twenty thousand dollars ($20,000) each shall be awarded. (d) Commencing with the 2002-03 fiscal year and each fiscal year thereafter, the number of fellowships awarded shall be determined pursuant to an appropriation in the annual Budget Act for this purpose. (e) The fellowship award may be used to defer tuition for a teacher certification program at any accredited postsecondary institution in California and for living expenses while enrolled in that program.  SEC. 12.   Section 70001 of the   Education Code   is amended to read:  70001. (a) The Chancellor's office of the California State University shall have the following duties: (1) Developing an application process that establishes a merit-based fellowship program for graduate students who agree to teach at a high-priority school for four years. (2) Establishing a broad and effective outreach effort to promote the availability and the merits of the fellowship program. (3) Conducting the selection process for fellowship applicants. (4) Collaborating with the Commission on Teacher Credentialing to develop and implement a system for monitoring program participants through the completion of their four-year teaching obligation. (5) Determining the criteria for selecting teaching fellowship candidates. The criteria shall include, at a minimum, all of the following: (A) Previous academic and employment record. (B) A demonstrated commitment to serve in a high-priority school. (C) Faculty and employer evaluations. (D) Interviews. (E) Letters of recommendation. (b) For the purposes of this article, a "high-priority school" is a school  in the bottom half of the Academic Performance Index rankings established pursuant to subdivision (a) of Section 52056   that qualifies for funding under   Section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F))  . If a school meets this criteria at the time a teacher is hired, continued employment of the teacher at that school fulfills the commitment made by the teacher, even if the school  improves its rank on the Academic Performance Index   loses its qualification under   Section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. Sec. 1759a (a)(1)(F))  .  SEC. 13.   Section 70006 is added to the   Education Code   , to read:   70006. Notwithstanding any other law, the California State University shall award no more than the number of fellowships that are authorized by the Governor and the Legislature in the annual Budget Act for that year for fellowships pursuant to this article.   SEC. 14.   Section 70007 is added to the     Education Code   , to read:   70007. The California State University shall continue to implement the fellowship program as it read on January 1, 2015, for purposes of collecting payments from former program participants required to repay program costs as of January 1, 2016, for failing to satisfy the program's requirements.   SEC. 15.   Section 70008 is added to the   Education Code   , to read:   70008. Participants in the program shall be prohibited from participating in the Assumption Program of Loans for Education concurrently.   SECTION 1.   Section 69615.9 is added to the Education Code, to read: 69615.9. (a) The department shall, in conjunction with the commission, report to the Legislature on the need for the program established by this article, any modifications that may be needed to improve the program's effectiveness in increasing the supply of high-quality teachers for high-needs and low-performing schools, and the need to establish new recruitment and financial aid programs to accomplish that objective. This report shall be submitted to the Legislature on or before January 1, 2017. (b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2020.