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AB-463 Student financial aid: Assumption Program of Loans for Education.(2017-2018)

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Date Published: 02/13/2017 02:00 PM
AB463:v99#DOCUMENT

Revised  April 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 463


Introduced by Assembly Member Salas Members Salas and Steinorth

February 13, 2017


An act to amend Sections 69612, 69612.5, 69613, 69613.1, 69615.4, and 69615.8 of, to add Section 69615.9 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


AB 463, as introduced, Salas. Student financial aid: Assumption Program of Loans for Education.
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 prohibits the commission from awarding more than the number of loan assumption agreements that are authorized by the Governor and the Legislature in the annual Budget Act, as provided.
This bill would, among other things, require a program participant to demonstrate financial need, remove references to the Academic Performance Index, revise the information that the Superintendent is required to furnish to the commission annually regarding the program, and make conforming changes. The bill would require the program to continue to be implemented as it read on January 1, 2017, for specified purposes relating to loan assumption agreements entered into before January 1, 2018. The bill would require the commission to issue 7,200 new warrants for the assumption of loans under the program commencing with the 2017–18 fiscal year.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   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 and self-contained classrooms 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 percentage of unduplicated pupils, as defined in Section 42238.02, as determined by the Superintendent of Public Instruction.
(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. serves a rural area.

(4)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: an educational loan from a program approved by the Student Aid Commission.

(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.

(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.
(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, or according to standards the Superintendent deems appropriate. meet the requirement of paragraph (1) of subdivision (b) of Section 69612.5.
(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. serving rural areas.

(e)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 69615.8 of the Education Code is amended to read:

69615.8.
 Notwithstanding any other law, in any fiscal year, commencing with the 2017–18 fiscal year, the 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 issue 7,200 new warrants for the assumption of loans pursuant to this article.

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, 2017, for the allocation of funds for loan assumption agreements made before January 1, 2018, and for the collection of payments from former program participants required to repay program costs for failing to satisfy the program’s requirements under a loan assumption agreement made before January 1, 2018.

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REVISIONS:
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