Bill Text

Bill PDF |Add To My Favorites | Version:

AB-190 Higher education budget trailer bill.(2021-2022)

Text

Votes

History

Bill Analysis

Today's Law As Amended

Compare Versions

Status

Comments To Author

Add To My Favorites

AB190:v95#DOCUMENT

Assembly Bill No. 190

CHAPTER 572

An act to amend Sections 17201, 69432.7, 70023, 79222, 79223, 79225, 79511, 87861, 87862, 87863, 87864, 87867, 88280, 89297.1, 94110, 94140, 94144, 94146, 94147, 94151, 94154, 94190, 94191, 94192, 94193, 94194, and 94195 of, to add Sections 79223.5 and 87865 to, and to add Chapter 14.28 (commencing with Section 67329.1) to Part 40 of Division 5 of Title 3 of, the Education Code, relating to postsecondary education, and making an appropriation therefor, to take effect immediately, bill related to the budget.

[ Approved by Governor September 27, 2022. Filed with Secretary of State September 27, 2022. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 190, Committee on Budget. Higher education budget trailer bill.

(1) Existing law establishes the Higher Education Student Housing Grant Program to provide one-time grants for the construction of student housing or for the acquisition and renovation of commercial properties into student housing for the purpose of providing affordable, low-cost housing options for students enrolled in public postsecondary education in the state. Existing law requires an administering entity to rank eligible applications for student housing grants using a composite score of certain measures, as provided. Existing law appropriates $1,428,133,000 for grants under the program, of which $21,107,000 is for allocation to the California State University, Humboldt. Existing law additionally appropriates $3,893,000 for the program, with specific projects to be funded with this appropriation to be identified in subsequent legislation.

This bill would (A) revise certain provisions of the program relating to submission of student housing project applications, as provided, (B) add a new measure to be used for ranking eligible applications using a composite score, (C) appropriate an additional $6,000,000 for the program to be allocated to the California State University, Humboldt, and (D) repeal the $3,893,000 appropriation for specific projects to be identified in subsequent legislation.

(2) Existing law establishes the Classified Community College Employee Summer Assistance Program. Existing law authorizes community college districts to elect to participate in the program, and authorizes a classified employee of a participating community college district who meets specified requirements to withhold an amount from the employee’s monthly paycheck during the academic year to be paid out during the summer recess period, as provided. Existing law authorizes a classified employee to be eligible to participate in the program if the classified employee is employed by the community college district in the employee’s regular assignment for 11 months or fewer out of a 12-month period.

This bill would define “month,” for purposes of these provisions, as 20 days or 4 weeks of 5 days each, including legal holidays.

(3) Existing law establishes the California School Finance Authority, and authorizes the authority to issue revenue bonds to finance projects for a single or several participating parties, defined to include a community college district that undertakes the financing or refinancing of a project.

Existing law, the California Educational Facilities Authority Act, authorizes the California Educational Facilities Authority, among other things, to develop student housing on or near public institutions of higher education through the use of agreements with participating nonprofit entities.

This bill would establish the California Student Housing Revolving Loan Fund Act of 2022 to provide zero-interest loans to qualifying applicants of the University of California, the California State University, and the California Community Colleges for the purpose of constructing affordable student housing and affordable faculty and staff housing, as specified. The bill would establish the California Student Housing Revolving Fund as a continuously appropriated fund in the State Treasury, thereby making an appropriation. The bill would state the intent of the Legislature to appropriate $900,000,000 in the 2023–24 fiscal year and $900,000,000 in the 2024–25 fiscal year for purposes of the housing loans. The bill would require the California School Finance Authority and the California Educational Facilities Authority to submit a report, by March 15, 2025, to the Department of Finance and the budget committees of the Assembly and Senate containing information on the act, as provided. The bill would apply certain provisions of the California Educational Facilities Authority Act to the University of California and the California State University for purposes of housing projects, as defined.

(4) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Expanded Entitlement Awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for these awards for participating students attending qualifying institutions. Under existing law, an otherwise qualifying institution with a 3-year cohort default rate that is equal to or greater than 15.5%, or a graduation rate of 30% or less, is ineligible for initial and renewal Cal Grant awards at the institution, as specified, with certain exceptions. Existing law requires the commission to establish an appeal process for an otherwise qualifying institution that fails to satisfy the 3-year cohort default rate and graduation rate requirements. Existing law authorizes the commission to grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.

This bill would authorize, for the 2023–24 academic year only, the commission to also grant an appeal for an otherwise qualifying institution that failed to meet the 3-year cohort default rate due to the acquisition of an out-of-state institution that impacted its 3-year cohort default rate and the acquired institution has since closed any time between the 2019–20 and 2022–23 academic years, inclusive, as provided.

(5) Existing law establishes the Middle Class Scholarship Program under the administration of the Student Aid Commission. Existing law makes an undergraduate student eligible for a scholarship award under the program if the student is enrolled at the University of California or the California State University, or enrolled in upper division coursework in a community college baccalaureate program, and meets certain eligibility requirements. Existing law requires the commission to annually determine if certain amounts appropriated under the program in each fiscal year are sufficient to cover the costs of the scholarships as projected to be awarded pursuant to the program. If those amounts are not sufficient for this purpose, existing law requires the scholarships to be reduced proportionately by an equal percentage for all recipients of scholarships under the program.

This bill would set, commencing with the 2022–23 academic year, for any student who qualifies for a scholarship award under the program of at least $1, the minimum annual scholarship amount for full-time enrollment at $90.

(6) Existing law, the NextUp program, authorizes the office of the Chancellor of the California Community Colleges to enter into agreements with community college districts to provide, and allocate to selected community colleges within a community college district, funds for services in support of postsecondary education for foster youth. Existing law requires a student participant in the program to meet specified requirements, including be no older than 25 years of age at the commencement of any academic year in which the student participates in the program. Existing law requires the Board of Governors of the California Community Colleges to adopt regulations for the program and requires those regulations to authorize waiver of any income criteria specified in the regulations as a condition of eligibility, as provided.

This bill would instead require a student participant in the program to be no older than 25 years of age at the commencement of the academic year in which the student first enrolls in the program. The bill would deem foster youth who meet specified eligibility criteria eligible to enroll in the program without being required to meet any additional eligibility requirements as a condition for enrollment. The bill would delete the provision requiring the regulations adopted by the board of governors for the program to allow waiving of income criteria specified in the regulations as a condition of eligibility.

(7) Existing law establishes an Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Student Achievement Program at the California State University and the California Community Colleges to provide culturally responsive services to enhance student educational experiences and promote higher education success for low-income, underserved, and first-generation AANHPI students and other underrepresented students. Existing law requires certain amounts appropriated in the annual Budget Act to support a statewide central office for each segment’s program. Existing law requires each statewide central office to develop a process to allocate funds to qualifying campuses. Existing law requires the offices of the Chancellors of the California Community Colleges and California State University to submit on or before March 31, 2026, a report prepared by an independent evaluator, evaluating their segment’s program, including an assessment of the impact of the program, as provided.

This bill would (A) instead require the applicable statewide central office to develop the criteria and process for a grant program to provide funding to the segment’s qualifying campuses, (B) require the applicable statewide central office to establish an AANHPI stakeholder process for purposes of the segment’s program, as provided, (C) require the applicable statewide central office to prepare an annual report that includes specified information on or before March 31 of each year, and (D) require the report prepared by the independent evaluator and submitted by the offices of the Chancellors of the California Community Colleges and California State University on or before March 31, 2026, to include an assessment of the impact of the segment’s program, as specified.

(8) Existing law establishes the Part-time Community College Faculty Health Insurance Program, which authorizes the governing board of a community college district to provide a program of health insurance for part-time faculty and their dependents. Existing law defines “part-time faculty,” for purposes of the program, as any faculty member whose teaching assignment equals or exceeds 40% of the cumulative equivalent of a minimum full-time teaching assignment.

This bill would additionally authorize the governing board of a community college district to provide a program of health insurance for multidistrict part-time faculty, defined as any faculty member whose total teaching assignments at 2 or more community college districts equals or exceeds 40% of the cumulative equivalent of a minimum full-time teaching assignment. The bill would make a multidistrict part-time faculty member who individually purchases health insurance benefits eligible to participate in the program, and would require a community college district to reimburse a multidistrict part-time faculty member for the district’s proportionate share, as determined, of the total health insurance premium paid by the multidistrict part-time faculty member, as specified.

Existing law requires the Chancellor of the California Community Colleges, by June 15 of each year, to apportion to each community college district that establishes a health insurance program pursuant to the Part-time Community College Faculty Health Insurance Program an amount that equals up to ½ of the total cost of the individual enrollment premiums required to be paid for the health insurance coverage of participating part-time faculty and their dependents in the district.

This bill would additionally require the chancellor, by June 15 of each year, to apportion any remaining funds appropriated to the program to each community college district that establishes a health insurance program and meets specified criteria, up to the total cost of the individual premiums required to be paid, as specified. The bill would require that criteria to include (A) offering health insurance coverage to all part-time faculty, (B) offering part-time faculty the same health insurance benefits provided to full-time faculty, (C) limiting individual premiums paid by part-time faculty to the actual individual premium paid by full-time faculty, and (D) offering health insurance coverage to all multidistrict part-time faculty, as specified.

(9) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 17201 of the Education Code is amended to read:

17201.

(a) The Higher Education Student Housing Grant Program is hereby established to provide one-time grants for the construction of student housing, or for the acquisition and renovation of commercial properties into student housing for the purpose of providing affordable, low-cost housing options for students enrolled in public postsecondary education in California.

(b) (1) Of the total amount appropriated pursuant to subdivision (l), and intended to be appropriated pursuant to subdivision (p) in support of this section and Section 17202, 50 percent of the available funds shall be available for the California Community Colleges, 30 percent of the available funds shall be available for the California State University, and 20 percent of the available funds shall be available for the University of California.

(2) Notwithstanding paragraph (1), the per-segment amounts designated in paragraph (1) may be adjusted to accommodate and prioritize projects serving low-income students across more than one segment.

(3) It is the intent of the Legislature that grants will be disbursed to increase the current stock of affordable student housing, for purposes of supporting low-income students and facilitating low-income student access to higher education.

(c) Proposals for one-time grants for the construction of, or rehabilitation of commercial properties for, student housing shall include, at a minimum, the project goals, costs, number of students to be housed, timeline for the project, financial feasibility of the project, anticipated impact on the campus’ ability to accommodate California resident enrollment growth, a commitment to construct the project within the resource needs identified in the proposal, and any other information deemed necessary for evaluation of the criteria pursuant to subdivision (f).

(d) (1) University of California campuses, California State University campuses, and community college districts shall submit their applications to their respective administering entities.

(2) Applications for intersegmental projects shall be submitted to each of the administering entities overseeing a campus or college involved in the intersegmental project.

(3) Community college districts and intersegmental partners that receive planning grants may submit applications for construction grants to their respective administering entities only after feasibility studies and all other preliminary planning have been completed and reliable project cost estimates have been developed.

(e) The administering entities shall provide the Department of Finance, the Legislative Analyst’s Office, and the budget committees of the Legislature with information on all submitted project proposals, including, but not necessarily limited to, the information specified in subdivision (g), on or before February 1 preceding the fiscal year in which program funds are appropriated.

(f) Submitted proposals shall demonstrate all of the following:

(1) Construction on the project could begin by December 31 in the year the grant is awarded, or by the earliest possible date thereafter.

(2) (A) The rent provided in the applicable units of the development for low-income students shall be calculated at 30 percent of 50 percent of the area median income for a single-room occupancy unit type. The percentage of area median income may be adjusted upon written notification by the Director of Finance to the Joint Legislative Budget Committee, and approval by the Joint Legislative Budget Committee.

(B) Annual rent for the units described in this paragraph may be adjusted each year based on the lesser of the area median income calculation for a given year pursuant to subparagraph (A), or the percentage change in the annual average value of the California Consumer Price Index for all urban consumers for the most recent calendar year of actual data.

(3) A commitment to first offer the housing available from the facilities to low-income students. In meeting this requirement, a campus may calculate the rental savings and number of low-income students that would be served by the student housing constructed pursuant to this section, and place the calculated number of students qualifying for the reduced rental rate throughout the campus’s available housing.

(4) (A) A commitment to require any students renting housing in the facilities to take a minimum average of 12 degree-applicable units per semester term, or the quarterly equivalent, to facilitate timely degree completion.

(B) Notwithstanding subparagraph (A), eligible students renting housing in the facilities shall be permitted to live in the facilities for the full academic or calendar year so long as the student remains enrolled in the applicable campus. Renewal of housing in the facility in subsequent academic or calendar years shall require the student to demonstrate compliance with subparagraph (A).

(C) Notwithstanding subparagraph (A), students renting housing in the facilities may temporarily reduce their unit load below 12 degree-applicable units if they are able to demonstrate an exceptional circumstance necessitating a reduced unit load, which may include, but is not necessarily limited to, illness or injury, as determined by the applicable campus.

(5) Receipt of a grant pursuant to this chapter will result in a public benefit, such as providing low-cost student housing and reduced rents, reducing students’ total cost of attendance, serving more low-income students, or other tangible benefits that would not be practical without the grant for student housing.

(6) The University of California and the California State University shall not use a public-private partnership to construct, operate, maintain, or any combination thereof, a project.

(7) As a condition of receiving funding for a project, the University of California shall comply, with respect to the project, with the requirements of Section 92495 applicable to capital outlay projects.

(8) A plan to build funds into the submitted project bid for project contingency.

(A) The amount for project contingency shall be 5 percent of construction costs for University of California and California State University projects and 10 percent of construction costs for California Community College projects. Intersegmental projects involving a California Community College shall include project contingency of 10 percent of construction costs. Grant funds may be used to cover these project contingency amounts.

(B) (i) The plan also shall identify the fund sources, other than the construction grants received under this program, and their respective balances that would be available to cover costs above those projected in the application.

(ii) Any applicant that receives a grant shall cover any costs above those identified in their application to the state using the fund sources identified in clause (i).

(9) (A) An applicant’s student population has unmet demand for housing, as measured by both of the following:

(i) The proportion of students waitlisted for on-campus housing compared to total enrollment.

(ii) Rental vacancy rates for housing in the county for which the student housing project would be located, as defined by the United States Census Bureau.

(B) Applicants shall calculate the data pursuant to clauses (i) and (ii) of subparagraph (A) using data for the most recent year available.

(10) A campus shall not apply for a grant to reimburse costs that it has already incurred.

(g) In their submittals to the Department of Finance, the Legislative Analyst’s Office, and budget committees of the Legislature, the administering entities shall rank all eligible applications using a composite score of all of the following measures:

(1) State funding per bed for low-income students, with a lower ratio receiving a higher ranking.

(2) Projected rents for low-income student units relative to the limit set forth in subparagraph (A) of paragraph (2) of subdivision (f), with a lower measure receiving a higher ranking.

(3) Project timeline, with an earlier construction start date receiving a higher ranking.

(4) The geographic location of each project. It is the intent of the Legislature that projects selected for a grant are fairly representative of various geographical regions of the state and campuses of the University of California, the California State University, and the California Community Colleges.

(5) Whether the applicant is reapplying with a project that was previously deemed ineligible, with a higher ranking given to the updated project applications that address any issues identified in a previous application.

(6) (A) Unmet demand for housing, with a higher ranking given to projects with either of the following:

(i) Higher proportions of students waitlisted for on-campus housing when compared to total enrollment.

(ii) Lower rental vacancy rates for housing in the county for which the student housing project would be located, as defined by the United States Census Bureau.

(B) Applicants shall calculate the proportions and rates pursuant to clauses (i) and (ii) of subparagraph (A) using data for the most recent year available.

(C) For each project, the administering entities shall select the measure determined pursuant to clauses (i) and (ii) of subparagraph (A) yielding the highest ranking.

(h) Proposals for student housing projects submitted pursuant to this chapter shall be considered for inclusion in the annual Budget or other legislation, subject to an available and sufficient appropriation.

(i) (1) Appropriations provided to support a project included in the annual Budget Act or other legislation pursuant to this chapter shall be considered grants to the applicant for purposes of constructing the project. As a condition of receiving funds pursuant to this chapter, the Regents of the University of California, the Trustees of the California State University, or the Board of Governors of the California Community Colleges, or the respective statewide offices for each segment, shall do all of the following:

(A) Provide oversight of the project for which funds are appropriated.

(B) From the receipt of funds to completion of construction for the project, report annually, beginning on or before July 1 of the year immediately following receipt of funding, to the Department of Finance and the relevant policy and budget committees of the Legislature on the status of the project. At a minimum, these reports shall include data on a project’s cost, funding by source, number of beds for low-income students, rents for low-income student beds, the number of standard rent beds and their associated rents, if applicable, building square footage, and project timeline. For each of these data elements that were included in a project’s application to the state, the reports shall compare the estimates provided in the application to the most recently available estimates.

(C) Following completion of the project, report annually, beginning on or before July 1 of the year immediately following completion, for a five-year period to the Department of Finance and the relevant policy and budget committees of the Legislature on the public benefit provided by the project as related to the selection criteria outlined in this chapter. At a minimum, these reports shall include data on a project’s number of beds for low-income students, rents for low-income student beds, the number of standard rent beds and their associated rents, if applicable, annual operating costs and revenues, and housing occupancy rates compared to the campuswide average. For each of these data elements that were included in a project’s application to the state, the reports shall compare the estimates provided in the application to the most recently available estimates.

(2) For a community college project funded pursuant to this chapter, the local community college district may perform the oversight and reporting functions required pursuant to subparagraphs (A) to (C), inclusive, of paragraph (1) in lieu of these functions being performed by the Board of Governors of the California Community Colleges or the Office of the Chancellor of the California Community Colleges.

(j) For purposes of computing the maintenance of effort for the federal Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (Public Law 116-260), and the federal American Rescue Plan Act of 2021 (Public Law 117-2), these funds shall be considered fully expended in the year in which they are appropriated, and these funds shall be considered need-based financial aid, as the intent of the program is to reduce nontuition costs for students.

(k) Notwithstanding any other law, including subdivision (j), reduced housing expenses from student housing provided pursuant to this chapter shall augment and not supplant student financial aid from other public sources, and shall not be considered when calculating eligibility for student financial aid.

(l) For the 2022–23 fiscal year, one billion four hundred thirty-four million one hundred thirty-three thousand dollars ($1,434,133,000) is hereby appropriated from the General Fund for the Higher Education Student Housing Grant Program, of which seven hundred million dollars ($700,000,000) is from the General Fund in the 2021–22 fiscal year and seven hundred thirty-four million one hundred thirty-three thousand dollars ($734,133,000) is from the General Fund in the 2022–23 fiscal year. These funds shall be used for one-time grants for the construction of student housing, or the acquisition and renovation of commercial properties into student housing for the purpose of providing affordable, low-cost housing options for students enrolled in public postsecondary education in California.

(m) The funds appropriated pursuant to subdivision (l) shall be for all of the following:

(1) Three hundred eighty-nine million dollars ($389,000,000) to the office of the President of the University of California for allocation to the following University of California campuses:

(A) Thirty-five million dollars ($35,000,000) for allocation to the University of California, Los Angeles.

(B) One hundred million dollars ($100,000,000) for allocation to the University of California, San Diego.

(D) Eighty-nine million dollars ($89,000,000) for allocation to the University of California, Santa Cruz.

(E) One hundred million dollars ($100,000,000) for allocation to the University of California, Berkeley.

(2) Four hundred ninety-three million nine hundred seven thousand dollars ($493,907,000) to the office of the Chancellor of the California State University for allocation to the following California State University campuses:

(A) One hundred sixteen million three hundred thousand dollars ($116,300,000) for allocation to California State University, San Francisco.

(B) Fifty-three million three hundred thousand dollars ($53,300,000) for allocation to California State University, Long Beach.

(C) Twenty-seven million one hundred seven thousand dollars ($27,107,000) for allocation to California State University, Humboldt.

(D) Thirty-one million fifty thousand dollars ($31,050,000) for allocation to California State University, Fresno.

(E) Thirty-seven million five hundred thousand ($37,500,000) for allocation to California State University, Northridge.

(F) Forty-eight million seven hundred fifty thousand dollars ($48,750,000) for allocation to California State University, Dominguez Hills.

(G) Eighty-eight million nine hundred thousand dollars ($88,900,000) for allocation to California State University, Fullerton.

(H) Ninety-one million dollars ($91,000,000) for allocation to California State University, San Marcos.

(3) Five hundred forty-two million one hundred eighteen thousand dollars ($542,118,000) to the office of the Chancellor of the California Community Colleges for allocation to the following California Community Colleges:

(A) Thirty-four million eighty thousand dollars ($34,080,000) for allocation to Fresno City College.

(B) Thirty-two million six hundred thirteen thousand dollars ($32,613,000) for allocation to the College of the Siskiyous.

(D) Eighty million four hundred ninety-seven thousand dollars ($80,497,000) for allocation to Sierra College.

(E) Thirty-one million dollars ($31,000,000) for allocation to Napa Valley College.

(F) Fifteen million dollars ($15,000,000) for allocation to Santa Rosa Junior College.

(G) Forty-four million one hundred forty-four thousand dollars ($44,144,000) for allocation to Cosumnes River College.

(H) Eighty million three hundred eighty-nine thousand dollars ($80,389,000) for allocation to Compton College.

(I) Thirty-nine million three hundred sixty-nine thousand dollars ($39,369,000) for allocation to the Lake Tahoe Community College District.

(J) Sixty million two hundred forty-five thousand dollars ($60,245,000) for allocation to Bakersfield College.

(K) Sixty-one million eight hundred fifty-eight thousand dollars ($61,858,000) for allocation to the College of the Canyons.

(4) Nine million one hundred eight thousand dollars ($9,108,000) to be allocated to the following intersegmental project, as follows:

(A) Four million five hundred fifty-four thousand dollars ($4,554,000) to the office of the Chancellor of the California Community Colleges for allocation to Imperial Valley College.

(B) Four million five hundred fifty-four thousand dollars ($4,554,000) to the office of the Chancellor of the California State University for allocation to California State University, San Diego.

(n) For the 2022–23 fiscal year, seventeen million nine hundred seventy-four thousand dollars ($17,974,000) is hereby appropriated from the General Fund for the purpose of providing planning grants for California Community Colleges that are exploring or determining if it is feasible to offer affordable student rental housing.

(o) The funds appropriated pursuant to subdivision (n) shall be to the office of the Chancellor of the California Community Colleges, to be allocated to the following California Community Colleges, as follows:

(1) One hundred fifty-five thousand dollars ($155,000) for allocation to Chabot College.

(2) One hundred fifty-five thousand dollars ($155,000) for allocation to Las Positas College.

(3) One hundred eighty thousand dollars ($180,000) for allocation to Contra Costa College.

(4) One hundred eighty thousand dollars ($180,000) for allocation to Diablo Valley College.

(5) One hundred eighty thousand dollars ($180,000) for allocation to Los Medanos College.

(6) One hundred thirty-two thousand dollars ($132,000) for allocation to De Anza College.

(7) One hundred thirty-two thousand dollars ($132,000) for allocation to Foothill College.

(8) Five hundred eighty thousand dollars ($580,000) for allocation to Ohlone College for two projects.

(9) One hundred ten thousand dollars ($110,000) for allocation to Berkeley City College.

(10) One hundred ten thousand dollars ($110,000) for allocation to College of Alameda.

(11) One hundred ten thousand dollars ($110,000) for allocation to Laney College.

(12) One hundred ten thousand dollars ($110,000) for allocation to Merritt College.

(13) Two hundred thirty-five thousand dollars ($235,000) for allocation to Evergreen Valley College.

(14) Two hundred thirty-five thousand dollars ($235,000) for allocation to San Jose City College.

(15) Two hundred thousand dollars ($200,000) for allocation to the College of San Mateo.

(16) One hundred fifty thousand dollars ($150,000) for allocation to Solano Community College.

(17) Three hundred fourteen thousand dollars ($314,000) for allocation to Cerro Coso Community College.

(18) Three hundred fourteen thousand dollars ($314,000) for allocation to Porterville College.

(19) One hundred forty-five thousand dollars ($145,000) for allocation to Merced College.

(20) Five hundred sixty-four thousand dollars ($564,000) for allocation to Merced College for an intersegmental project with the University of California, Merced.

(21) Four hundred forty-nine thousand dollars ($449,000) for allocation to Fresno City College.

(22) Four hundred forty-nine thousand dollars ($449,000) for allocation to Madera College.

(23) One hundred fifty thousand dollars ($150,000) for allocation to West Hills College Coalinga.

(24) Seventy thousand dollars ($70,000) for allocation to Copper Mountain College.

(25) One hundred fifty-five thousand dollars ($155,000) for allocation to Mt. San Jacinto College.

(26) Five hundred forty thousand dollars ($540,000) for allocation to Moreno Valley College.

(27) Five hundred ninety thousand dollars ($590,000) for allocation to Norco College.

(28) Four hundred seventy thousand dollars ($470,000) for allocation to Riverside City College.

(29) Eight hundred forty-five thousand dollars ($845,000) for allocation to Crafton Hills College.

(30) Eight hundred forty-five thousand dollars ($845,000) for allocation to San Bernardino Valley College.

(31) Two hundred thousand dollars ($200,000) for allocation to Antelope Valley Community College.

(32) Two hundred twenty-five thousand dollars ($225,000) for allocation to Cerritos College.

(33) One hundred ten thousand dollars ($110,000) for allocation to El Camino College.

(34) One hundred twenty thousand dollars ($120,000) for allocation to Long Beach City College.

(35) One hundred ten thousand dollars ($110,000) for allocation to East Los Angeles College.

(36) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles City College.

(37) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Harbor College.

(38) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Mission College.

(39) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Pierce College.

(40) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Southwest College.

(41) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Trade Technical College.

(42) One hundred ten thousand dollars ($110,000) for allocation to Los Angeles Valley College.

(43) One hundred ten thousand dollars ($110,000) for allocation to West Los Angeles College.

(44) One hundred fifty thousand dollars ($150,000) for allocation to Cypress College.

(45) Fifty thousand dollars ($50,000) for allocation to Pasadena City College.

(46) Five hundred thousand dollars ($500,000) for allocation to Rancho Santiago Community College District.

(47) Five hundred twenty-two thousand dollars ($522,000) for allocation to Rio Hondo College.

(48) One hundred ten thousand dollars ($110,000) for allocation to Santa Monica College.

(49) Three hundred twenty-three thousand dollars ($323,000) for allocation to Irvine Valley College.

(50) Four hundred eighty-three thousand dollars ($483,000) for allocation to Saddleback College.

(51) Five hundred thousand dollars ($500,000) for allocation to Butte College for an intersegmental project with California State University, Chico.

(52) Three hundred forty-nine thousand dollars ($349,000) for allocation to Feather River College.

(53) One hundred ten thousand dollars ($110,000) for allocation to American River College.

(54) One hundred ten thousand dollars ($110,000) for allocation to Cosumnes River College.

(55) One hundred ten thousand dollars ($110,000) for allocation to Folsom Lake College.

(56) One hundred ten thousand dollars ($110,000) for allocation to Sacramento City College.

(57) Two hundred fifty thousand dollars ($250,000) for allocation to Mendocino College.

(58) One hundred fifty-five thousand dollars ($155,000) for allocation to Shasta College.

(59) One hundred fifty-five thousand dollars ($155,000) for allocation to Cuyamaca College.

(60) One hundred fifty-five thousand dollars ($155,000) for allocation to Grossmont College.

(61) One hundred fifty-five thousand dollars ($155,000) for allocation to MiraCosta College.

(62) Eight hundred twenty thousand dollars ($820,000) for allocation to Palomar College.

(63) Three hundred forty-four thousand dollars ($344,000) for allocation to San Diego City College.

(64) Six hundred eighteen thousand dollars ($618,000) for allocation to Southwestern College for five projects.

(65) One hundred eighty-five thousand dollars ($185,000) for allocation to Allan Hancock College.

(66) Two hundred forty-two thousand dollars ($242,000) for allocation to Cabrillo Community College.

(67) Three hundred twenty-five thousand dollars ($325,000) for allocation to Hartnell College.

(68) One hundred fifty thousand dollars ($150,000) for allocation to Santa Barbara City College.

(69) Two hundred fifty thousand dollars ($250,000) for allocation to Moorpark College.

(70) Two hundred forty-nine thousand dollars ($249,000) for allocation to Oxnard College.

(p) It is the intent of the Legislature to appropriate seven hundred fifty million dollars ($750,000,000) from the General Fund in the 2023–24 fiscal year for purposes of providing student housing grants pursuant to this section.

(q) Any project receiving a grant pursuant to this section shall deliver, at a minimum, the number of beds for low-income students specified in its application when it was approved by the state. Rents for these beds shall not exceed the rates assumed in the project’s application. A project may deliver more beds or charge lower rents than assumed in its application if financially feasible.

SEC. 2.

Chapter 14.28 (commencing with Section 67329.1) is added to Part 40 of Division 5 of Title 3 of the Education Code, to read:

CHAPTER 14.28. California Student Housing Revolving Loan Fund Act of 2022

Article 1. Title

67329.1.

This chapter shall be known, and may be cited, as the California Student Housing Revolving Loan Fund Act of 2022.

Article 2. Definitions

67329.2.

As used in this chapter, unless the context requires otherwise, the following definitions apply:

(a) “Allocation” means the portion of the initial California Student Housing Revolving Loan Fund Act of 2022 appropriation allocated to each designated authority to provide loans pursuant to this chapter.

(b) “Authority” means, for a college applicant, the California School Finance Authority created and authorized pursuant to the California School Finance Authority Act (Chapter 18 (commencing with Section 17170) of Part 10 of Division 1 of Title 1). For a university applicant, “authority” means the California Educational Facilities Authority created and authorized pursuant to the California Educational Facilities Authority Act (Chapter 2 (commencing with Section 94100) of Part 59 of Division 10). The meaning of “authority” as used in this chapter depends on the college or university system of which the applicant is a member.

(c) “Campus” means a community college district, or a campus of the University of California or the California State University.

(d) “College applicant” means a community college district, or the Office of the Chancellor of the California Community Colleges on behalf of a community college district.

(e) “Faculty and staff housing project” means one or more housing facilities to be occupied by faculty or staff of one or more campuses, and owned by a participating college or university or participating nonprofit entity.

(f) “Fund” means the California Student Housing Revolving Loan Fund established by this chapter.

(g) “Participating nonprofit entity” means an entity within the meaning of paragraph (3) of subsection (c) of Section 501 of Title 26 of the United States Code.

(h) “Project” means a student housing project or a faculty and staff housing project.

(i) “Student housing project” means one or more housing facilities to be occupied by students of one or more campuses and owned by a participating college or university or participating nonprofit entity. These facilities are determined to be educational facilities, which also may include dining, academic and student support service spaces, and other necessary and usual attendant and related facilities and equipment.

(j) “University applicant” means a campus of the University of California or the California State University, the Office of the President of the University of California on behalf of one or more campuses of the University of California, or the Office of the Chancellor of the California State University on behalf of one or more campuses of the California State University.

Article 3. The California Student Housing Revolving Loan Fund

67329.3.

(a) (1) The California Student Housing Revolving Loan Fund is hereby established in the State Treasury to provide zero-interest loans to qualifying college and university applicants for the purpose of constructing affordable student housing and affordable faculty and staff housing. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are hereby continuously appropriated without regard to fiscal years for purposes of this chapter.

(2) It is the intent of the Legislature to appropriate, in the annual Budget Act, the sum of nine hundred million dollars ($900,000,000) in the 2023–24 fiscal year and nine hundred million dollars ($900,000,000) in the 2024–25 fiscal year, to be deposited in the California Student Housing Revolving Loan Fund.

(b) The Treasurer may pledge any or all of the moneys in the fund as security for payment of the principal of, and interest on, a particular issuance of bonds by a designated lending authority pursuant to this chapter. For that purpose, or as convenient or necessary to the accomplishment of any other purpose of this chapter, the Treasurer may divide the fund into separate accounts or subaccounts.

(c) The Treasurer may invest moneys in the fund that are not required for its current needs, including proceeds from the sale of bonds, in eligible securities specified in Section 16430 of the Government Code, and may include deposit for investment in the Surplus Money Investment Fund pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. Notwithstanding Section 16305.7 of the Government Code, all interest or other increment resulting from the investment or deposit of moneys from the fund shall be deposited in the fund. Moneys in the fund shall not be subject to transfer to any other funds pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund.

(d) If the Treasurer sells bonds for either authority that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

Article 4. Criteria and Process

67329.4.

(a) Each authority shall develop a uniform application that includes requests for relevant information, such as project goals, costs, number of students or faculty and staff to be housed, timeline for the project, financial feasibility of the project, and other information deemed necessary for evaluation of creditworthiness and public benefit criteria established by each authority pursuant to this chapter. The applications shall be available no later than April 1, 2024, in accordance with each authority’s existing regulations or any necessary amendments, which shall be undertaken as emergency regulations, if necessary.

(b) The initial preliminary applications for projects to be considered pursuant to this chapter shall be submitted to the designated authority no later than July 1, 2024. Thereafter, the authority may establish subsequent application periods, as necessary.

(c) Applications may be submitted to the designated authority by college and university applicants as set forth in this chapter pursuant to the following:

(1) The California Educational Facilities Authority shall consider applications from university applicants.

(2) The California School Finance Authority shall consider applications from college applicants.

(d) Applications shall demonstrate all of the following:

(1) Construction on the project could begin by June 30, 2025, or by the earliest possible date thereafter, as stated in the application.

(2) The rate for student, staff, and faculty housing supported by the fund will be below local market rental rates for comparable student, staff, and faculty housing, and may take into account the costs of utilities, food service, operations, maintenance, and other services included in the student, staff, and faculty housing rent.

(3) Receipt of a loan from the authority shall result in a public benefit, such as the ability to reduce rents, serve more students, provide additional onsite student support services, or other tangible benefits that would not be practical without receipt of the loan.

(4) The project will comply with the requirements of Section 67329.5.

(5) The project will be owned by a participating college or university or participating nonprofit entity.

(e) In the event that an authority receives or anticipates receiving more applications than its allocation of state funding can support, the authority may consider any of the following criteria in selecting projects:

(1) The timeline for construction, with priority given to projects that can begin construction the earliest.

(2) The campus’ unmet demand for student housing, with priority given to applicants with greater unmet demand for student housing.

(3) A local match is available, with priority given to applicants with a local match.

(4) When considered as a whole, the applications approved pursuant to this chapter are fairly representative of various geographical regions of the state and the University of California, the California State University, and the California Community Colleges.

67329.5.

A project financed pursuant to this chapter shall meet all of the following requirements:

(a) For projects financed pursuant to this chapter that are not University of California projects, all work traditionally performed by employees of the college or university applicant shall be performed only by those employees.

(b) For projects financed pursuant to this chapter that are projects of the University of California or projects benefiting the University of California, the following requirements apply:

(1) As a condition of receiving money financed pursuant to this chapter, the University of California shall certify that all cleaning, maintenance, groundskeeping, food service, or other work traditionally performed by persons with University of California Service Unit (SX) job classifications shall be performed only by employees of the University of California at each beneficially affected facility, building, or other property.

(2) This subdivision does not apply to, and shall not restrict the performance of, work done under contract and paid for in whole or in part out of public funds, when the work is either of the following:

(A) Construction, alteration, demolition, installation, or repair work, including work performed during the design, preconstruction, and postconstruction phases of construction.

(B) Carpentry, electrical, plumbing, glazing, painting, and other craft work designed to preserve, protect, or keep any publicly owned facility in a safe and continuously usable condition, including repairs, cleaning, and other operations on machinery and other equipment permanently attached to the building or real property as fixtures.

(3) The Department of Finance shall approve new or additional money for University of California projects financed pursuant to this chapter only after the University of California has demonstrated ongoing and continuous compliance with this subdivision. A demonstration of compliance shall include a certification of compliance signed by the President of the University of California, or their duly authorized designee, indicating that at each project facility, building, or other property benefiting from money financed pursuant to this chapter the following will occur or has occurred:

(A) All work specified in paragraph (1) of this subdivision will be performed exclusively by University of California employees.

(B) Either of the following:

(i) All work described in paragraph (1) of this subdivision has been performed exclusively by University of California employees at all times since the University of California received money for the project pursuant to this chapter.

(ii) The University of California shall provide a written report detailing any noncompliance with paragraph (1) of this subdivision, specifying how many contract workers performed work at each project facility, building, or other property benefiting from money financed pursuant to this chapter, for what periods of time, and what the University of California has done to remedy the noncompliance, and, on or before February 1 of each calendar year, shall certify to the satisfaction of the Department of Finance that it has maintained subsequent compliance with paragraph (1) of this subdivision.

(4) The University of California shall include the certification required pursuant to this subdivision with the certification required pursuant to subdivision (e) of Section 92495.

67329.51.

(a) For projects financed pursuant to this chapter, participating colleges and universities and participating nonprofit entities shall do all of the following:

(1) At least seven days before issuing a bid solicitation for the project, send a notice of the solicitation that describes the project to the following entities within the jurisdiction of the proposed project site:

(A) Any bona fide labor organization representing workers in the building and construction trades who may perform work necessary to complete the project.

(B) Any organization representing contractors that may perform work necessary to complete the project.

(2) Ensure that all contractors and subcontractors performing work on the project will be required to pay prevailing wages for any proposed construction, alteration, or repair in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. All of the following shall occur:

(A) The participating college or university or participating nonprofit entity shall ensure that the prevailing wage requirement is included in all contracts for the performance of all construction work.

(B) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.

(C) Except as provided in subparagraph (E), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code, and make those records available for inspection and copying as provided therein.

(D) Except as provided in subparagraph (E), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, or by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.

(E) Subparagraphs (C) and (D) shall not apply if all contractors and subcontractors performing work on the development are subject to a multicraft building trades project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

(3) For projects financed pursuant to this chapter with onsite construction, alteration, or repair costs totaling twenty-five million dollars ($25,000,000) or more, seek bids containing an enforceable commitment that all contractors and subcontractors performing work on the project will use a skilled and trained workforce to perform any rehabilitation, construction, or alterations work on the project that falls within an apprenticeable occupation in the building and construction trades.

(4) For the purpose of establishing a bidder pool of eligible contractors and subcontractors that satisfy the skilled and trained workforce requirements, establish a process to prequalify prime contractors and subcontractors, including, but not limited to, electrical, mechanical, and plumbing subcontractors. This process shall include, but is not limited to, all of the following requirements:

(A) The participating college or university or participating nonprofit entity shall only accept bids from prime contractors that have been prequalified and listed as eligible contractors.

(B) If the participating college or university or participating nonprofit entity receives at least two bids from prequalified prime contractors, the contract shall be awarded to the lowest qualified bidder and the participating college or university or participating nonprofit entity shall certify to the authority that a skilled and trained workforce will be used to perform all construction work on the development.

(C) If the participating college or university or participating nonprofit entity receives fewer than two bids from prequalified prime contractors, the contract may be rebid and awarded to the lowest responsive bidder without the skilled and trained workforce requirement applying to the prime contractor’s scope of work.

(D) Prime contractors shall only accept bids and list subcontractors from the prequalified list. If the prime contractor receives bids from at least 2 subcontractors in each tier listed on the prequalified list, the prime contractor shall require that the contract for that tier or scope of work will require a skilled and trained workforce.

(E) If the prime contractor fails to receive at least 2 bids from subcontractors listed on the prequalified list in any tier, the prime contractor will not require that a skilled and trained workforce be used for that scope of work, and may list subcontractors that do not appear on the prequalified list.

(F) The participating college or university or participating nonprofit entity shall establish minimum qualifications that are, to the maximum extent possible, quantifiable and objective. Only criterion, and minimum thresholds for any criterion, that are reasonably necessary to ensure that any bidder awarded a project can successfully complete the proposed scope shall be used by the project proponent.

(G) All bids submitted by prime contractors and subcontractors shall be sealed, opened in a public process that is open to all bidders and other interested parties, and listed on the participating college’s or university’s or participating nonprofit entity’s internet website.

(H) The Subletting and Subcontracting Fair Practices Act established pursuant to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code shall apply.

(5) (A) Except as provided in subparagraph (B), provide to the authority on a monthly basis while the development or contract is being performed a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the authority pursuant to this subparagraph shall be a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall be open to public inspection. A participating college or university or participating nonprofit entity that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund.

(B) Subparagraph (A) shall not apply if all contractors and subcontractors performing work on the development are subject to a multicraft building trades project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

(6) Notify the Department of Industrial Relations within five calendar days of the contract award.

(b) For purposes of this section, “skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

Article 5. Repayment and Bond Issuance

67329.6.

(a) For each loan made by an authority, the authority shall establish a schedule of payments, the primary source of which may be lease or rent payments for occupancy of the project financed by that loan, and the sum of which shall be calculated to result in full payment of the loan within a reasonable period of time not to exceed 30 years.

(b) The California Educational Facilities Authority may issue revenue bonds and enter into related agreements, and take all other actions necessary and convenient for the issuance of revenue bonds for university applicants for projects in accordance with this chapter and its authorizing statutes, as amended from time to time.

(c) Each authority may use amounts deposited in the fund, including, but not limited to, loan repayments, as a source of reserve and security for the payment of principal and interest on revenue bonds, the proceeds of which are deposited in the fund or in a designated fund or account of the authority established for that purpose. The purpose of any such revenue bonds is to augment the fund.

(d) (1) Notwithstanding any other law, revenue bonds issued under this chapter are not and shall not be deemed to constitute a debt or liability of the state, or any political subdivision thereof, and are not and shall not be deemed to be a pledge of the faith and credit of the state, or any political subdivision thereof, other than the authority. Revenue bonds of the authority shall be payable solely from funds provided under this chapter.

(2) Each revenue bond of the authority shall include a statement on the face of the bond that neither the State of California nor the authority is obligated to pay the principal or interest thereon, except from revenues of the authority, and shall also include a statement that neither the faith or credit, nor the taxing power of the State of California, or any political subdivision, is pledged to the payment of the principal or interest of the bonds.

(3) The issuance of revenue bonds under this chapter shall not directly, indirectly, or contingently obligate the state, or any political subdivision thereof, to levy or pledge any form of taxation, or make any appropriation for their payment.

Article 6. Rulemaking

67329.7.

Each authority may adopt, amend, or repeal rules and regulations pursuant to this chapter as emergency regulations. The adoption, amendment, or repeal of these regulations is conclusively presumed to be necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code.

Article 7. Reporting

67329.8.

Each authority shall provide a report to the Department of Finance and the budget committees of the Assembly and Senate by March 15, 2025. The report shall include, but shall not necessarily be limited to, all of the following information:

(a) The number of projects receiving loans.

(b) The total dollar amount of loans made.

(d) The terms of the loan for each project.

Article 8. Administrative Costs

67329.9.

Each authority may charge against the fund its administrative costs, which shall not exceed 3 percent of the authority’s respective allocation amount or proportion of the fund, as the fund may be augmented by revenue bonds over time.

SEC. 3.

Section 69432.7 of the Education Code is amended to read:

69432.7.

As used in this chapter, the following terms have the following meanings:

(a) An “academic year” is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included.

(b) “Access costs” means living expenses and expenses for transportation, supplies, technology, and books.

(d) “College grade point average” and “community college grade point average” mean a grade point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree.

(e) “Commission” means the Student Aid Commission.

(f) “Enrollment status” means part- or full-time status.

(1) “Part time,” for purposes of Cal Grant eligibility, means 6 to 11 semester units, inclusive, or the equivalent.

(2) “Full time,” for purposes of Cal Grant eligibility, means 12 or more semester units or the equivalent.

(g) “Expected family contribution,” with respect to an applicant, shall be determined using the federal methodology pursuant to subdivision (a) of Section 69506 (as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.)) and applicable rules and regulations adopted by the commission.

(h) “High school grade point average” means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, Reserve Officers’ Training Corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, “high school grade point average” includes senior year coursework.

(i) “Instructional program of not less than one academic year” means a program of study that results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.

(j) “Instructional program of not less than two academic years” means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.

(k) (1) “Maximum household income and asset levels” means the applicable household income and household asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program, as defined and adopted in regulations by the commission for the 2001–02 academic year, which shall be set pursuant to the following income and asset ceiling amounts:

CAL GRANT PROGRAM INCOME CEILINGS

	Cal Grant A, C, and T	Cal Grant B
Dependent and Independent students with dependents*
Family Size
Six or more	$74,100	$40,700
Five	$68,700	$37,700
Four	$64,100	$33,700
Three	$59,000	$30,300
Two	$57,600	$26,900
Independent
Single, no dependents	$23,500	$23,500
Married	$26,900	$26,900

*Applies to independent students with dependents other than a
spouse.

CAL GRANT PROGRAM ASSET CEILINGS

	Cal Grant A, C, and T	Cal Grant B
Dependent** _____ _____	$49,600	$49,600
Independent _____ _____	$23,600	$23,600

**Applies to independent students with dependents other than a
spouse.

(2) The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. The maximum household income and asset levels applicable to a renewing recipient shall be the greater of the adjusted maximum household income and asset levels or the maximum household income and asset levels at the time of the renewing recipient’s initial Cal Grant award. For a recipient who was initially awarded a Cal Grant for an academic year before the 2011–12 academic year, the maximum household income and asset levels shall be the greater of the adjusted maximum household income and asset levels or the 2010–11 academic year maximum household income and asset levels. An applicant or renewal recipient who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level test under this section. Before disbursing any Cal Grant funds, a qualifying institution shall be obligated, under the terms of its institutional participation agreement with the commission, to resolve any conflicts that may exist in the data the institution possesses relating to that individual.

(l) (1) “Qualifying institution” means an institution that complies with paragraphs (2) and (3) and is any of the following:

(A) A California private or independent postsecondary educational institution that participates in the Pell Grant Program and in at least two of the following federal student aid programs:

(i) Federal Work-Study Program.

(ii) Federal Stafford Loan Program.

(iii) Federal Supplemental Educational Opportunity Grant Program.

(B) A nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent of the institution’s operating budget, as demonstrated in an audited financial statement, is expended for purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 2000–01 academic year shall retain its eligibility as long as it maintains its existing accreditation status.

(2) (A) The institution shall provide information on where to access California license examination passage rates for the most recent available year from graduates of its undergraduate programs leading to employment for which passage of a California licensing examination is required, if that data is electronically available through the internet website of a California licensing or regulatory agency. For purposes of this paragraph, “provide” may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website that provides centralized admissions information for postsecondary educational systems with multiple campuses, or on applications for enrollment or other program information distributed to prospective students.

(B) The institution shall be responsible for certifying to the commission compliance with the requirements of subparagraph (A).

(3) (A) The commission shall certify by November 1 of each year the institution’s latest official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, by the United States Department of Education.

(B) For purposes of the 2011–12 academic year, an otherwise qualifying institution with a three-year cohort default rate reported by the United States Department of Education that is equal to or greater than 24.6 percent shall be ineligible for initial and renewal Cal Grant awards at the institution.

(C) For purposes of the 2012–13 academic year, and every academic year thereafter, an otherwise qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the commission on October 1, 2011, and every year thereafter, shall be ineligible for initial and renewal Cal Grant awards at the institution.

(D) (i) An otherwise qualifying institution that becomes ineligible under this paragraph for initial and renewal Cal Grant awards shall regain its eligibility for the academic year for which it satisfies the requirements established in subparagraph (B), (C), or (F), as applicable.

(ii) If the United States Department of Education corrects or revises an institution’s three-year cohort default rate or graduation rate that originally failed to satisfy the requirements established in subparagraph (B), (C), or (F), as applicable, and the correction or revision results in the institution’s three-year cohort default rate or graduation rate satisfying those requirements, that institution shall immediately regain its eligibility for the academic year to which the corrected or revised three-year cohort default rate or graduation rate would have been applied.

(E) An otherwise qualifying institution for which no three-year cohort default rate or graduation rate has been reported by the United States Department of Education shall be provisionally eligible to participate in the Cal Grant Program until a three-year cohort default rate or graduation rate has been reported for the institution by the United States Department of Education.

(F) For purposes of the 2012–13 academic year, and every academic year thereafter, an otherwise qualifying institution with a graduation rate of 30 percent or less, as certified by the commission pursuant to subparagraph (A), shall be ineligible for initial and renewal Cal Grant awards at the institution, except as provided for in subparagraph (H).

(G) Notwithstanding any other law, the requirements of this paragraph shall not apply to institutions with 40 percent or less of undergraduate students borrowing federal student loans, using information reported to the United States Department of Education for the academic year two years before the academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).

(H) Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 percent and a graduation rate above 20 percent for students taking 150 percent or less of the expected time to complete degree requirements, as certified by the commission pursuant to subparagraph (A), shall be eligible for initial and renewal Cal Grant awards at the institution through the 2016–17 academic year.

(I) The commission shall do all of the following:

(i) Notify initial Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards under subparagraph (C) or (F) that the institution is ineligible for initial Cal Grant awards for the academic year for which the student received an initial Cal Grant award.

(ii) Notify renewal Cal Grant recipients attending an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) that the student’s Cal Grant award will be reduced by 20 percent, or eliminated, as appropriate, if the student attends the ineligible institution in an academic year in which the institution is ineligible.

(iii) Provide initial and renewal Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) with a complete list of all California postsecondary educational institutions at which the student would be eligible to receive an unreduced Cal Grant award.

(iv) (I) Establish an appeal process for an otherwise qualifying institution that fails to satisfy the three-year cohort default rate and graduation rate requirements in subparagraphs (C) and (F), respectively.

(II) The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.

(III) Notwithstanding subclause (II), the commission may grant an appeal for the 2023–24 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 2019–20 to 2022–23 academic years, inclusive. The institution’s Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 2023–24 fiscal year. This authority shall be in effect for an appeal for the 2023–24 academic year only and shall sunset on July 1, 2023. The institution’s Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.

(m) “Satisfactory academic progress” means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. The commission may adopt regulations defining “satisfactory academic progress” in a manner that is consistent with those federal standards. The regulations adopted by the commission under this subdivision shall, to the extent consistent with applicable federal standards, provide that homelessness, as defined as a “homeless individual” within the meaning of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11302(a)), or as defined as a “homeless child or youth,” as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)), is an extenuating circumstance for students who are otherwise unable to meet the requirements deemed to constitute “satisfactory academic progress” at the institution they attend, and that extenuating circumstance may be considered by the institution to alter or excuse compliance with those progress requirements.

SEC. 4.

Section 70023 of the Education Code is amended to read:

70023.

(a) For each academic year, the commission shall determine an amount sufficient, when combined with other federal, state, or institutionally administered student scholarships, grants, or fee waivers received by eligible students from other sources, to provide scholarships to eligible students in the amounts described in paragraphs (2), (4), and (5) of subdivision (a) of Section 70022. The University of California, the California State University, and the office of the Chancellor of the California Community Colleges shall provide the commission with any financial aid data that are necessary for the determination of these amounts.

(b) (1) The commission shall annually determine if the amounts appropriated under this section in each fiscal year are sufficient to cover the costs of the scholarships as projected to be awarded pursuant to the program. If those amounts are not sufficient for this purpose, the scholarships shall be reduced proportionately by an equal percentage for all recipients of scholarships under this article.

(2) Notwithstanding paragraph (1), commencing with the 2022–23 academic year, for any student who qualifies for a scholarship award under this article of at least one dollar ($1), the minimum annual scholarship amount for full-time enrollment shall be ninety dollars ($90).

(c) The commission may adopt regulations necessary to carry out the purposes of this article under subdivision (b) as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of those regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code. Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, any regulation adopted pursuant to this section shall not remain in effect more than 180 days unless the commission complies with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, as required by subdivision (e) of Section 11346.1 of the Government Code.

(d) The unencumbered balance, as of June 30 of each fiscal year, of the amount appropriated from the Middle Class Scholarship Fund pursuant to paragraph (1) of subdivision (e) shall revert to the General Fund.

(e) (1) Upon order of the Director of Finance, the following amounts shall be transferred from the General Fund to the Middle Class Scholarship Fund, and are hereby appropriated to the commission for allocation pursuant to this article:

(A) For the 2014–15 fiscal year, one hundred seven million dollars ($107,000,000).

(B) For the 2015–16 fiscal year, eighty-two million dollars ($82,000,000).

(D) For the 2017–18 fiscal year, ninety-nine million nine hundred thirty-eight thousand dollars ($99,938,000).

(E) For the 2018–19 fiscal year, one hundred four million three hundred forty-five thousand dollars ($104,345,000).

(F) For the 2019–20 fiscal year, one hundred sixteen million five hundred fifty-seven thousand dollars ($116,557,000).

(G) For the 2020–21 fiscal year, one hundred fourteen million one hundred seventy-one thousand dollars ($114,171,000).

(H) For the 2021–22 fiscal year, one hundred nine million nine hundred sixty-one thousand dollars ($109,961,000).

(2) An annual appropriation to the commission is hereby established in the amounts and for the fiscal years described in paragraph (1) to carry out the purposes of this section and Section 70022.

(3) Commencing with the 2022–23 fiscal year, the annual appropriation to the commission to carry out the purposes of this section and Section 70022 shall be determined in the annual Budget Act.

(4) It is the intent of the Legislature that any savings realized from changes made to the allocations under this subdivision by a bill providing for appropriations related to the Budget Bill for the 2015–16 fiscal year shall be used to support higher education.

(5) The funds transferred and appropriated pursuant to paragraph (1) shall only be available for encumbrance in the fiscal year in which they are transferred, and the General Fund shall have no liability or any obligation beyond the transfers explicitly authorized in paragraph (1) unless a subsequent transfer or allocation is required pursuant to statute.

(6) In any fiscal year, additional appropriations may be enacted pursuant to statute to carry out the purposes of this article.

(7) (A) Beginning with the Governor’s Budget proposal for the 2014–15 fiscal year, and in the Governor’s Budget for each fiscal year thereafter, the Department of Finance shall include a fund condition statement for the Middle Class Scholarship Fund for the fiscal year of the proposed budget and the two immediately preceding fiscal years prepared in accordance with existing law.

(B) Upon order of the Director of Finance and for the 2013–14 to 2021–22 fiscal years, inclusive, if the May Revision projects a budget deficit for the next fiscal year, the amount specified in paragraph (1) for the fiscal year for which the budget deficit is projected may be reduced by up to 33 percent.

(f) Subject to an appropriation in the annual Budget Act for its purposes, the commission may begin implementation of, and establish outreach services relating to, this article.

SEC. 5.

Section 79222 of the Education Code is amended to read:

79222.

A student participant in the program shall meet both of the following requirements:

(a) Be a current or former foster youth in California whose dependency was established or continued by a court of competent jurisdiction, including a tribal court, on or after the youth’s 13th birthday.

(b) Be no older than 25 years of age at the commencement of the academic year in which the student first enrolls in the program.

SEC. 6.

Section 79223 of the Education Code is amended to read:

79223.

The board of governors shall adopt regulations that authorize the director of the Community College Extended Opportunity Programs and Services at each community college to accept students who are enrolled in at least nine units into the NextUp program. Students enrolled in fewer than nine units may be accepted into the NextUp program if enrollment is part of an education plan designed to move the student toward subsequent enrollment in at least nine units.

SEC. 7.

Section 79223.5 is added to the Education Code, to read:

79223.5.

All current and former foster youth who meet NextUp eligibility criteria specified in Sections 79222 and 79223 are eligible to enroll in the NextUp program and shall not be required to meet additional eligibility requirements as a condition for enrollment in the NextUp program.

SEC. 8.

Section 79225 of the Education Code is amended to read:

79225.

(a) The board of governors, in consultation with the State Department of Social Services, shall adopt regulations for the program. The board of governors shall be responsible for the administration of funds for the program. To the extent possible, the State Department of Social Services, in consultation with the County Welfare Directors Association of California, the Chief Probation Officers of California, and other advocates, shall consult with the chancellor’s office to ensure that services provided under this article to eligible youths are coordinated with, and do not supplant, other services provided by the county and state.

(b) Regulations adopted by the board of governors shall ensure that program application and enrollment processes implemented by community college districts are streamlined and do not impose barriers to entry.

SEC. 9.

Section 79511 of the Education Code is amended to read:

79511.

(a) (1) The Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Student Achievement Program is hereby established at the California Community Colleges to provide culturally responsive services to enhance student educational experiences and promote higher education success for low-income, underserved, and first-generation AANHPI students and other underrepresented students.

(2) It is the intent of the Legislature that the program be coordinated with the Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Student Achievement Program established at the California State University pursuant to Article 11 (commencing with Section 89297) of Chapter 2 of Part 55 of Division 8.

(b) (1) Of the amount appropriated in the annual Budget Act for the program, up to 19 percent shall be allocated to a community college district to contract with a statewide central office at a nonprofit organization selected by the office of the Chancellor of the California Community Colleges, in consultation with the California Commission on Asian and Pacific Islander American Affairs. The office of the Chancellor of the California Community Colleges, in consultation with the California Commission on Asian and Pacific Islander American Affairs, shall periodically review the selection contract to ensure program alignment and effectiveness.

(2) The statewide central office shall employ at least the following full-time staff:

(A) One director.

(B) One program coordinator.

(3) The statewide central office, in consultation with the office of the Chancellor of the California Community Colleges and the California Commission on Asian and Pacific Islander American Affairs, shall develop the criteria and process for a grant program to provide funding to qualifying community colleges, pursuant to subdivision (c).

(4) The statewide central office, in consultation with the office of the Chancellor of the California Community Colleges and the California Commission on Asian and Pacific Islander American Affairs, shall establish an AANHPI stakeholder process for purposes of the program to facilitate the statewide central office’s ability to meet the needs of the community, including students and community colleges. Stakeholders shall include higher education practitioners and students.

(5) The statewide central office shall provide support to qualifying community colleges, including, but not limited to, technical assistance, outreach, statewide and regional trainings, curriculum development, and capacity building.

(6) The statewide central office shall provide an annual report to the office of the Chancellor of the California Community Colleges pursuant to subdivision (d).

(7) The statewide central office shall fund an independent evaluation of the program pursuant to subdivision (e).

(c) (1) Of the amount appropriated in the annual Budget Act for the program, at least 81 percent shall be provided to community colleges with the following qualifications:

(A) The college is eligible for the Asian American and Native American Pacific Islander-Serving Institution program authorized under the federal Higher Education Act (20 U.S.C. Sec. 1059g et seq.).

(B) The college has experience providing student support services to AANHPI students and other underserved students.

(C) The college has program staff that will coordinate with campus faculty and staff to effectively deliver support services to AANHPI students.

(2) Participating colleges shall provide all of the following services:

(A) Culturally responsive learning communities.

(B) Advising and counseling services.

(D) Career development, career readiness, and employment services.

(E) Supplemental instruction and tutoring, such as English language development and support.

(F) Asian American, Pacific Islander studies courses and curriculum development.

(G) Leadership development, internships, and mentorships.

(d) On or before March 31 of each year, the office of the Chancellor of the California Community Colleges shall submit a report to the Department of Finance and the appropriate fiscal and policy committees of the Legislature. The report shall be prepared by the statewide central office. The report shall include, but is not limited to, all of the following:

(1) The amount of funding allocated to each participating community college.

(2) A description of the services provided by each participating community college.

(3) The number of students served by each participating community college.

(4) The number of low-income, underserved, and first-generation AANHPI students served.

(5) The number of students served who meet any of, or any combination of, the following:

(A) Completed certifications.

(B) Attained associate degrees.

(D) Transferred.

(E) Obtained a job upon completion.

(e) On or before March 31, 2026, the office of the Chancellor of the California Community Colleges shall submit a report evaluating the program to the Department of Finance and the appropriate fiscal and policy committees of the Legislature. The report shall be prepared by an independent evaluator selected by the office of the Chancellor of the California Community Colleges. The report shall include an assessment of the impact of the program, including a comparison of the impact of the program relative to other support strategies implemented by each participating campus for the same or similar student groups.

SEC. 10.

Section 87861 of the Education Code is amended to read:

87861.

For purposes of this article:

(a) “Health insurance benefits” include medical benefits but do not include vision or dental benefits.

(b) “Multidistrict part-time faculty” refers to any faculty member whose total teaching assignments at two or more community college districts equals or exceeds 40 percent of the cumulative equivalent of a minimum full-time teaching assignment. “Multidistrict part-time faculty” does not include “part-time faculty” as defined in subdivision (c).

(c) “Part-time faculty” refers to any faculty member whose teaching assignment equals or exceeds 40 percent of the cumulative equivalent of a minimum full-time teaching assignment.

(d) The changes made to subdivision (c) during the 1999 portion of the 1999–2000 Regular Session of the Legislature shall be operative in any fiscal year only if funds are appropriated for purposes of those changes in the annual Budget Act or in another measure. If the amount appropriated in the annual Budget Act or in another measure for purposes of this section is insufficient to fully fund those changes for the fiscal year, the chancellor shall prorate the funds among the community college districts affected by this section.

SEC. 11.

Section 87862 of the Education Code is amended to read:

87862.

The governing board of a community college district may provide a program of health insurance for part-time faculty, multidistrict part-time faculty, and their dependents.

SEC. 12.

Section 87863 of the Education Code is amended to read:

87863.

(a) A part-time faculty member and their eligible dependents are eligible to participate in the program established pursuant to this article.

(b) A multidistrict part-time faculty member and their eligible dependents are eligible to participate in the program established pursuant to this article.

(c) The changes made to subdivision (a) during the 1999 portion of the 1999–2000 Regular Session of the Legislature shall be operative in any fiscal year only if funds are appropriated for purposes of those changes in the annual Budget Act or in another measure. If the amount appropriated in the annual Budget Act or in another measure for purposes of this section is insufficient to fully fund those changes for the fiscal year, the chancellor shall prorate the funds among the community college districts affected by this section.

(d) Any changes made pursuant to this section to the Part-time Community College Faculty Health Insurance Program shall not affect any part-time health insurance program in effect on January 1, 2000.

SEC. 13.

Section 87864 of the Education Code is amended to read:

87864.

A part-time faculty member, multidistrict part-time faculty member, or their dependents whose premiums for health insurance are paid by an employer other than a community college district are not eligible to participate in the program established pursuant to this article.

SEC. 14.

Section 87865 is added to the Education Code, to read:

87865.

(a) A multidistrict part-time faculty member who individually purchases health insurance benefits is eligible to participate in the program established pursuant to this article.

(b) (1) A community college district shall reimburse a multidistrict part-time faculty member for the district’s proportionate share of the total health insurance premium paid by the multidistrict part-time faculty member, up to a proportionate share of the maximum of the full cost of the district’s most commonly subscribed family coverage plan.

(2) The community college district’s proportionate share shall be determined by dividing the total health insurance premium paid by the multidistrict part-time faculty member by the total number of community college districts in which the multidistrict part-time faculty member works for purposes of meeting the requirements of subdivision (b) of Section 87861, and multiplying that quotient by the percentage of health care cost paid by the community college district toward the total cost of the health insurance premium.

(c) A community college district may require reasonable documentation from a multidistrict part-time faculty member to verify that the faculty member’s total cumulative teaching assignments at two or more community college districts equals or exceeds 40 percent of the cumulative equivalent of a minimum full-time teaching assignment. A community college district may require reasonable documentation from a multidistrict part-time faculty member to determine the district’s proportionate share, as described in subdivision (b), which may include, but is not necessarily limited to, documentation verifying enrollment in a health insurance plan and the premium paid for the health insurance plan.

SEC. 15.

Section 87867 of the Education Code is amended to read:

87867.

(a) By June 15 of each year, the Chancellor of the California Community Colleges shall apportion to each community college district that establishes a program pursuant to this article an amount that equals up to one-half of the total cost of the individual premiums required to be paid for the health insurance coverage of participating part-time faculty, multidistrict part-time faculty, and their dependents in the district.

(b) By June 15 of each year, the chancellor shall apportion any remaining funds appropriated for this program to each community college district that establishes a program pursuant to this article and meets all of the following criteria, up to the total cost of the individual premiums required to be paid for the health insurance coverage of participating part-time faculty, multidistrict part-time faculty, and their dependents in the district:

(1) Offers health insurance coverage to all part-time faculty who meet the requirements in subdivision (c) of Section 87861.

(2) Offers part-time faculty the same health insurance benefits provided to the full-time faculty at the community college district.

(3) Limits individual premiums paid by part-time faculty to no more than the actual individual premium paid by full-time faculty in that district.

(4) Offers health insurance coverage to all multidistrict part-time faculty who meet the requirements in subdivision (b) of Section 87861, and pursuant to Section 87865.

(c) The chancellor shall distribute funds that have been appropriated specifically for this purpose, and pursuant to subdivisions (a) and (b), proportionally based on each community college district’s total costs for premiums for those districts that submit verification of the costs of premiums for eligible employees for a fiscal year, but in no event shall the allocation to any district exceed the full cost of the verified premiums.

(d) If funds appropriated for this purpose remain after all apportionments for subdivisions (a) and (b) have been made, the balance that exceeds that amount shall revert to the General Fund annually.

SEC. 16.

Section 88280 of the Education Code is amended to read:

88280.

(a) The Classified Community College Employee Summer Assistance Program is hereby established for participating classified employees of participating community college districts under this section.

(b) The program shall provide a participating classified employee up to one dollar ($1) for each one dollar ($1) that the classified employee has elected to have withheld from the classified employee’s monthly paychecks pursuant to this section.

(c) A community college district may elect to participate in the program. A participating community college district shall notify classified employees, by January 1 during a fiscal year in which moneys are appropriated for purposes of this section, that the community college district has elected to participate in the program for the next academic year. Once a community college district elects to participate in the program and notifies classified employees pursuant to this subdivision, the community college district is prohibited from reversing its decision to participate in the program for the next academic year beginning after the end of a fiscal year in which moneys are appropriated for purposes of this section.

(d) (1) A classified employee who elects to participate in the program shall notify the community college district, in writing, by March 1 during a fiscal year in which moneys are appropriated for purposes of this section, on a form developed by the chancellor’s office that the classified employee wishes to participate in the program for the applicable academic year. The classified employee shall specify the amount to be withheld from their monthly paychecks during the applicable academic year and whether they choose to have the amounts withheld paid out during the summer recess period in either one or two payments. A participating classified employee may elect to have up to 10 percent of the classified employee’s monthly pay withheld during the applicable academic year.

(2) A classified employee is eligible to participate in the program if the classified employee has been employed with the community college district for at least one year at the time the classified employee elects to participate in the program.

(3) (A) A classified employee is eligible to participate in the program if the classified employee is employed by the community college district in the employee’s regular assignment for 11 months or fewer out of a 12-month period. For purposes of determining a classified employee’s total months employed by the community college district, the employing community college district shall exclude any hours worked by the classified employee outside of their regular assignment.

(B) For the 2023–24 and 2024–25 academic years, for purposes of determining a classified employee’s total months employed by the community college district, the employing community college district shall exclude any hours worked by the classified employee as a result of an extension of the academic year directly related to the COVID-19 pandemic, if the hours are in addition to the employee’s regular assignment and would prevent the employee from being eligible to participate in the program.

(4) (A) A classified employee is not eligible to participate in the program if the classified employee’s regular annual pay received directly from the community college district is more than sixty-two thousand four hundred dollars ($62,400) for an entire academic year at the time of enrollment. For purposes of determining a classified employee’s regular annual pay received directly from the community college district, the employing community college district shall exclude any pay received by the classified employee during the previous summer recess period.

(B) For purposes of this section, “summer recess period” means the period that regular class sessions are not being held by a community college district during the months of June, July, and August. Pay earned by a classified employee with limited employment during the months of June, July, or August that is not for the summer session shall not be excluded pursuant to this paragraph.

(e) A community college district that elects to participate in the program shall notify the chancellor’s office in writing, by April 1 during a fiscal year in which moneys are appropriated for purposes of this section, on a form developed by the chancellor’s office that it has elected to participate in the program. The community college district shall specify the number of classified employees that have elected to participate in the program and the total estimated amount to be withheld from participating classified employee paychecks for the applicable academic year.

(f) The chancellor’s office shall notify participating community college districts in writing, by May 1 during a fiscal year in which moneys are appropriated for purposes of this section, of the estimated amount of state match funding that a participating classified employee can expect to receive as a result of participating in the program. If the funding provided for purposes of this section is insufficient to provide one dollar ($1) for each one dollar ($1) that has been withheld from participating classified employee monthly paychecks, the chancellor’s office shall notify community college districts of the expected prorated amount of state match funds that a participating classified employee can expect to receive as a result of participating in the program.

(g) Participating community college districts shall notify participating classified employees, by June 1 during a fiscal year in which moneys are appropriated for purposes of this section, of the amount of estimated state match funds that a participating classified employee can expect to receive as a result of participating in the program. After receiving that notification, a classified employee may withdraw their election to participate in the program or reduce the amount to be withheld from their paycheck pursuant to paragraph (1) of subdivision (d) by notifying the employing community college district no later than 30 days after the start of instruction for the applicable fall term of the academic year.

(h) The community college district shall deposit the amounts withheld from participating classified employee monthly paychecks in accordance with the choices made by each participating classified employee pursuant to subdivision (d) in a separate account.

(i) (1) A classified employee that separates from employment with a community college district during the applicable academic year may request from the community college district any pay withheld from their paycheck pursuant to this section.

(2) A classified employee, due to economic or personal hardship, may request from a community college district any pay withheld from their paycheck pursuant to this section.

(3) A classified employee who requests any pay withheld by the community college district pursuant to paragraph (1) or (2) shall not be entitled to receive any state match funds provided pursuant to this section.

(j) Participating community college districts shall request payment from the chancellor’s office, on or before July 31 following the end of an academic year during which the program was operative, on a form developed by the chancellor’s office, for the amount of classified employee pay withheld from the monthly paychecks of participating classified employees and placed in a separate account pursuant to subdivision (h).

(k) The chancellor’s office may use any unexpended balance of moneys appropriated in any prior fiscal year to the chancellor’s office for purposes of this section to provide up to one dollar ($1) for each one dollar ($1) that has been withheld from participating classified employee monthly paychecks.

(l) The chancellor’s office shall apportion funds to participating community college districts within 30 days of receiving a request for payment by the participating community college district pursuant to subdivision (j). The apportionment shall be determined for each community college district by the chancellor’s office on the basis of the amount that has been withheld from the monthly paychecks of participating classified employees and placed in a separate account pursuant to subdivision (h).

(m) If the total amount requested by participating community college districts exceeds the amount appropriated for purposes of this section, the chancellor’s office shall prorate the amount apportioned to participating community college districts accordingly, based on the amounts requested pursuant to subdivision (j).

(n) The participating community college district shall pay participating classified employees the amounts withheld in accordance with the classified employee’s choices, plus the amount apportioned by the chancellor’s office that is attributable to the amount withheld from that classified employee’s paychecks during the applicable academic year. This amount shall be paid to the participating classified employee during the summer recess period, in either one or two payments, in accordance with the classified employee’s option pursuant to subdivision (d).

(o) The state match funding received by participating classified employees pursuant to this section shall not be considered compensation for purposes of determining retirement benefits for the California Public Employees’ Retirement System or the California State Teachers’ Retirement System.

(p) For purposes of this section, the following definitions apply:

(1) “Chancellor’s office” means the office of the Chancellor of the California Community Colleges.

(2) “Month” means 20 days or 4 weeks of 5 days each, including legal holidays.

(3) “Program” means the Classified Community College Employee Summer Assistance Program.

(4) “Regular assignment” means a classified employee’s employment job duties during the academic year, excluding the summer recess period.

SEC. 17.

Section 89297.1 of the Education Code is amended to read:

89297.1.

(a) (1) The Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Student Achievement Program is hereby established at the California State University to provide culturally responsive services to enhance student educational experiences and promote higher education success for low-income, underserved, and first-generation AANHPI students and other underrepresented students.

(2) It is the intent of the Legislature that this program be coordinated with the Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Student Achievement Program established at the California Community Colleges pursuant to Article 10 (commencing with Section 79510) of Chapter 9 of Part 48 of Division 7.

(b) (1) Of the amount appropriated in the annual Budget Act for the program, up to 19 percent shall support a statewide central office at a California State University campus selected by the office of the Chancellor of the California State University, in consultation with the California Commission on Asian and Pacific Islander American Affairs.

(2) The statewide central office shall employ at least the following full-time staff:

(A) One director.

(B) One program coordinator.

(3) The statewide central office, in consultation with the California Commission on Asian and Pacific Islander Affairs, shall develop the criteria and process for a grant program to provide funding to qualifying California State University campuses, pursuant to subdivision (c).

(4) The statewide central office, in consultation with the office of Chancellor of the California State University and the California Commission on Asian and Pacific Islander American Affairs, shall establish an AANHPI stakeholder process for purposes of the program to facilitate the statewide central office’s ability to meet the needs of the community, including students and California State University campuses. Stakeholders shall include higher education practitioners and students.

(5) The statewide central office shall provide support to qualifying campuses, including, but not limited to, technical assistance, outreach, statewide and regional trainings, curriculum development, and capacity building.

(6) The statewide central office shall provide an annual report to the office of the Chancellor of the California State University pursuant to subdivision (d).

(7) The statewide central office shall fund an independent evaluation of the program pursuant to subdivision (e).

(c) (1) Of the amount appropriated in the annual Budget Act for the program, at least 81 percent shall be provided to California State University campuses with the following qualifications:

(A) The campus is eligible for the Asian American and Native American Pacific Islander-Serving Institution program authorized under the federal Higher Education Act (20 U.S.C. Sec. 1059g).

(B) The campus has experience providing student support services to AANHPI students and other underserved students.

(C) The campus has program staff that will coordinate with campus faculty and staff to effectively deliver support services to AANHPI students.

(2) Participating campuses shall provide all of the following services:

(A) Culturally responsive learning communities.

(B) Advising and counseling services.

(D) Career development, career readiness, and employment services.

(E) Supplemental instruction and tutoring, such as English language development and support.

(F) Asian American, Pacific Islander studies courses and curriculum development.

(G) Leadership development, internships, and mentorships.

(d) On or before March 31, of each year, the California State University shall submit a report to the Department of Finance and the appropriate fiscal and policy committees of the Legislature. The report shall be prepared by the statewide central office. The report shall include, but is not limited to, all of the following:

(1) The amount of funding allocated to each participating campus.

(2) A description of the services provided by each participating campus.

(3) The number of students served by each participating campus.

(4) The number of low-income, underserved, and first-generation AANHPI students served.

(5) The number of students served who meet any of, or any combination of, the following:

(A) Completed certifications.

(B) Attained baccalaureate degrees.

(D) Obtained a job upon completion.

(e) On or before March 31, 2026, the California State University shall submit a report evaluating the program to the Department of Finance and the appropriate fiscal and policy committees of the Legislature. The report shall be prepared by an independent evaluator selected by the office of the Chancellor of the California State University. The report shall include an assessment of the impact of the program, including a comparison of the impact of the program relative to other support strategies implemented by each participating campus for the same or similar student groups.

SEC. 18.

Section 94110 of the Education Code, as amended by Section 1 of Chapter 123 of the Statutes of 2022, is amended to read:

94110.

As used in this chapter, the following words and terms have the following meanings, unless the context indicates or requires another or different meaning or intent:

(a) “Authority” means the California Educational Facilities Authority created by this chapter or any board, body, commission, department, or officer succeeding to the principal functions of the authority or to whom the power conferred upon the authority by this chapter is given by law.

(b) “Bond” means bonds, notes, debentures, securities, or other evidences of indebtedness of the authority issued pursuant to this chapter.

(c) “Cost,” as applied to a project or portion of a project financed under this chapter, means all, or any part of, the cost of construction and acquisition of lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or used for a project, the cost of demolishing or removing buildings or structures on acquired land, including the cost of acquiring lands to which the buildings or structures may be moved, the cost of machinery and equipment, financing charges, interest before, during, and for a period after completion of, the construction as determined by the authority, provisions for working capital, reserves for principal and interest and for extension, enlargements, additions, replacements, renovations and improvements, the cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates, administrative expenses, and other expenses necessary or incidental to determining the feasibility of constructing a project or incident to the construction or acquisition or financing of a project.

(d) “Dormitory” means a housing unit with necessary and usual attendant and related facilities and equipment.

(e) (1) “Educational facility” means a dormitory, dining hall, student union, administration building, academic building, library, laboratory, research facility, classroom, health care facility (including for an institution of higher education that maintains and operates a school of medicine, structures or facilities designed to provide services as a hospital or clinic, whether the hospital or clinic is operated directly by the institution of higher education or by a separate nonprofit corporation, the members of which consist of the educational institution or the members of its governing body), faculty and staff housing, parking, maintenance, storage, or utility facilities, and other related structures or facilities used for student instruction, conducting research, or operating an institution for higher education, and related facilities and equipment.

(2) “Educational facility” does not include a facility used, or to be used, for sectarian instruction or as a place for religious worship, or a facility used, or to be used, primarily in connection with a part of the program of a school or department of divinity.

(f) “Faculty and staff housing” means a residential unit owned by a participating college or participating nonprofit entity for use by an individual holding a faculty appointment or a staff position at a public university, public college, or participating college.

(g) “Participating nonprofit entity” means an entity within the meaning of paragraph (3) of subsection (c) of Section 501 of Title 26 of the United States Code that, pursuant to this chapter for the purpose of owning student, faculty, or staff housing, as approved by, and for participation with, the authority, undertakes the financing and construction or acquisition of student, faculty, or staff housing, on real property owned or leased by the entity, for the benefit of a public college, public university, or participating private college. The authority may determine any additional qualifications of a participating nonprofit entity through regulations or guidelines.

(h) “Participating private college” or “participating college” means a private college that participates with the authority in undertaking the financing of working capital or the financing and construction or acquisition of a project and does not restrict the admission of a student based on the student’s race or ethnicity, provided that the financing does not violate Section 5 of Article XVI of the California Constitution or the establishment clause of the First Amendment to the United States Constitution.

(i) (1) “Private college” means an institution for higher education other than a public college, situated within the state and that, by virtue of law or charter, is a nonprofit private or independent degree-granting educational institution that is regionally accredited and empowered to provide a program of education beyond the high school level.

(2) For purposes of obtaining financing under this chapter, “private college” also includes either of the following:

(A) A nonprofit affiliate, established on or before January 1, 2005, of one or more private colleges, as defined in paragraph (1), the sole or primary purpose of which is to provide administrative or other support services to an affiliated private college or private colleges, and that undertakes the financing of a project or working capital for the exclusive use and benefit of one or more of the affiliated private colleges.

(B) A private nonprofit research organization engaged in basic research and advanced education at the predoctoral and postdoctoral levels through personnel situated within the state, but only if the organization previously has borrowed the proceeds of bonds or other obligations previously issued by the authority.

(j) (1) “Project” means a dormitory or an educational facility, faculty or staff housing, or any combination thereof, or any function concerning student loans, or interests in student loans, as determined by the authority.

(2) For a participating nonprofit entity, “project” means the construction or acquisition of student housing or faculty and staff housing. The authority, in consultation with the top administrative officials and the participating nonprofit entity, shall develop and adopt regulations to ensure, to the greatest extent practicable, that each project involving a participating nonprofit entity is used to house students, faculty, or staff of the participating private college, public college, or public university. The student, faculty, or staff housing shall meet all of the following criteria:

(A) Upon completion or acquisition of the project, the project will be owned by a participating nonprofit entity and located on real property owned, or leased by, that entity.

(B) The top administrative official of the public university, public college, or participating private college that the project is intended to benefit, verifies the need for housing and financing assistance in a specific area pursuant to subparagraph (D).

(C) The project is monitored on an annual basis by the authority to ensure that it meets the requirements of subparagraph (E) and all other regulatory agreements entered into by the authority.

(D) The project is located within a five-mile radius of the boundary of a campus or satellite center of the public college, public university, or participating private college that the project is intended to benefit. The participating nonprofit entity may request approval from the top official of the institution for a project that is located outside the five-mile radius, provided that all of the following criteria are met:

(i) There are no available and feasible sites within the five-mile radius.

(ii) The project is near a mass transit destination.

(iii) The time required to commute from campus to the mass transit destination, as estimated by the top administrative official, typically does not exceed 30 minutes.

(E) (i) The project includes and maintains for 40 years a restriction to the grant deed on the real property on which the student or faculty and staff housing is to be located. The grant deed shall accomplish all of the following:

(I) Give the public college, public university, or participating private college that the project is intended to benefit the right, but not the obligation, to purchase the property at fair market value.

(II) Ensure that students, faculty, or staff of the affected campus will have first right of refusal to all available units.

(III) Require that, to the greatest extent feasible, at least 50 percent of student residents will meet the criteria for need-based financial assistance, as determined by the top administrative official of the affected campus.

(IV) Require that all contracts for construction and renovation of the proposed project shall be subject to, and comply with the provisions referenced in, Section 10128 of the Public Contract Code.

(ii) For purposes of this subparagraph, the authority, through regulation or rule, shall define “student” and “faculty,” taking into consideration enrollment status requirements and employment status requirements. The definitions of “student” and “faculty” may be different for each participating campus.

(3) For a university applicant, “project” has the same meaning as defined in Section 67329.2.

(k) “Public college” means a community college.

(l) “Public university” means any campus of the University of California, the California State University, or the Hastings College of the Law.

(m) “Student housing,” as applied to a participating nonprofit entity, means a residential unit owned by a participating nonprofit entity, and located on real property owned by that entity, for use by an individual enrolled at a public college, public university, or participating private college.

(n) “Student loan” means a loan having terms and conditions acceptable to the authority that is made to finance or refinance the costs of attendance at a private college or a public college and that is approved by the authority, if the loan is originated pursuant to a program that is approved by the authority.

(o) “Top administrative official” means the chancellor in the case of a campus of the University of California, the dean in the case of the Hastings College of the Law, the president in the case of a campus of the California State University, the president in the case of a campus of the California Community Colleges, or the president or highest ranking official in the case of a participating private college.

(p) “University applicant” has the same meaning as defined in Section 67329.2.

(q) “Working capital” means maintenance or operation expenses or any other costs that would be treated as an expense item, under generally accepted accounting principles, in connection with the ownership or operation of an educational facility, faculty or staff housing, student housing, or any combination thereof, including, but not limited to, reserves for maintenance or operation expenses, interest on any loan for working capital made pursuant to this part, and reserves for debt service with respect to, and any costs necessary or incidental to, that financing.

SEC. 19.

Section 94140 of the Education Code, as amended by Section 2 of Chapter 123 of the Statutes of 2022, is amended to read:

94140.

The authority shall have power to do all of the following:

(a) Adopt bylaws for the regulation of its affairs and the conduct of its business.

(b) Adopt and have an official common seal and alter it at pleasure.

(d) Borrow money, issue bonds and notes and other obligations of the authority, and provide for the rights of the holders thereof as provided in this chapter.

(e) Acquire, lease as lessee, hold, and dispose of real and personal property or any interest therein, in the exercise of its powers and the performance of its duties under this chapter.

(f) Acquire, in the name of the authority by purchase or otherwise, on the terms and conditions and in the manner as it deems proper, any land or interest in land and other property that it determines is reasonably necessary for a project, including any lands held by a county, municipality, or other governmental subdivision of the state, to hold and use the property, and to sell, convey, lease, or otherwise dispose of the acquired property that is no longer necessary for the authority’s purposes.

(g) Receive and accept, from any source, loans, contributions, or grants for, or in aid of, the financing or refinancing of working capital or the acquisition, construction, financing, or refinancing of a project, or any portion of a project, in money, property, labor, or other things of value.

(h) Prepare, or cause to be prepared, plans, specifications, designs, and estimates of costs for the construction and equipment of projects for participating colleges, participating nonprofit entities, and university applicants under this chapter, and from time to time to modify those plans, specifications, designs, or estimates.

(i) By contract or contracts, or by its own employees, to construct, acquire, reconstruct, rehabilitate and improve, and furnish and equip, projects for participating colleges, participating nonprofit entities, and university applicants.

(j) Employ consulting engineers, architects, accountants, construction and financial experts, superintendents, and other employees and agents that may be necessary in its judgment and to fix their compensation.

(k) Determine the location and character of any project to be undertaken pursuant to this chapter, and construct, reconstruct, repair, lease, as lessee or lessor, the project, enter into contracts for any or all of those purposes, and designate a participating private college, participating nonprofit entity, or university applicant as its agent to determine the location and character of a project undertaken by the participating private college, participating nonprofit entity, or university applicant under this chapter and, as the agent of the authority, construct, reconstruct, maintain, repair, operate, lease, as lessee or lessor, and regulate the project and, as agent of the authority, to enter into contracts for any and all of those purposes including contracts for the management and operation of the project.

(l) Establish rules and regulations for the use of a project, or any portion of a project, and to designate a participating private college, participating nonprofit entity, or university applicant as its agent to establish rules and regulations for the use of a project undertaken by the participating private college, participating nonprofit entity, or university applicant.

(m) Generally establish, revise from time to time, and charge and collect, rates, rents, fees, and other charges for the use of and for the services furnished or to be furnished by a project, or any portion of a project, and contract with holders of its bonds and with any other person, party, association, corporation, or other body, public or private, in respect thereof.

(n) Enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient, or desirable for the purposes of the authority or to carry out any power expressly given in this chapter.

(o) Invest any moneys held in reserve or sinking funds, or any moneys not required for immediate use or disbursement, at the discretion of the authority, in obligations that are authorized by law for the investment of trust funds in the custody of the Treasurer.

(p) Charge, and equitably apportion among participating private colleges and participating nonprofit entities, its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

(q) Finance, directly or through an intermediary, or purchase or take assignments of, or make commitments to finance, directly or through an intermediary, or purchase or to take assignments of, student loans, to contract in advance for those student loans, and to contract in advance for that financing, purchase, or assignment, and to pay any amounts payable in respect thereto. A student loan shall be eligible for financing or purchase by the authority or for assignment hereunder regardless of the repayment status of the loan. A pledge made to secure authority financing for student loan project purposes shall be valid and binding from the time the pledge is made. The revenues and receipts of property or interest in the property pledged and thereafter received by the authority, a participating college or public institution of higher education, a servicer, a trustee, or a custodian shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of a pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, participating college or public institution of higher education, servicer, trustee, or custodian irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

(r) Hold or invest in student loans, create pools of student loans, and sell bonds bearing interest on a taxable or tax-exempt basis or other interests backed by the pools of student loans.

(s) Contract or otherwise provide for the distribution, processing, origination, purchase, sale, servicing, securing, and collection of student loans, the payment of fees, charges, and administrative expenses in connection with student loans, and the funding of reserves required or provided for in any resolution authorizing, or trust agreement securing, authority financing for student loan purposes.

(t) Assist in providing support to participating colleges, participating nonprofit entities, or university applicants to enhance the market acceptance of potential bond issues by the authority, including securing probable or actual credit ratings from nationally recognized bond rating agencies, providing or obtaining liquidity or credit enhancement, providing or securing bond reserve funds, performing any other action deemed necessary by the authority, and incurring necessary expenses, payable from available authority funds, for any of these purposes.

SEC. 20.

Section 94144 of the Education Code is amended to read:

94144.

(a) The authority is authorized from time to time to issue its bonds for any corporate purpose. In anticipation of the sale of the bonds, the authority may issue bond anticipation notes and may renew the bond anticipation notes from time to time. The bond anticipation notes shall be paid from any revenues of the authority or other moneys available for payment of bond anticipation notes and not otherwise pledged, or from the proceeds of sale of the bonds of the authority in anticipation of which the bond anticipation notes were issued. The bond anticipation notes shall be issued in the same manner as the bonds. The bond anticipation notes and the resolution or resolutions authorizing the bond anticipation notes may contain any provisions, conditions, or limitations which a bond resolution of the authority may contain.

(b) Except as may otherwise be expressly provided by the authority, every issue of its bonds or notes shall be general obligations of the authority payable from any revenues or moneys of the authority available for payment of the bonds or notes and not otherwise pledged, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or moneys and subject to any agreements with any participating institution or university applicant. Negotiable bonds and notes shall be and be deemed to be, for all purposes, negotiable instruments, notwithstanding the fact that the negotiable bonds or notes may be payable from a special fund, subject only to the provisions of the bonds or notes for registration.

(c) (1) The bonds may be issued as serial bonds or as term bonds, or the authority, in its discretion, may issue bonds of both types. The bonds shall be authorized by resolution of the authority, and shall bear the date or dates, mature at a time or times, not exceeding 50 years from their respective dates, bear interest at the rate or rates, be payable at the time or times, be in denominations, be in a form, either coupon or registered, carry registration privileges, be executed in a manner, be payable in lawful money of the United States of America at a place or places, and be subject to the terms of redemption that the resolution or resolutions may provide. The bonds or notes may be sold by the Treasurer at public sale, or the authority, after giving due consideration to the recommendations of the participating institution, participating nonprofit entity, or university applicant, may direct the Treasurer to sell the bonds or notes at private sale.

(2) In the case of public sale, both of the following shall occur:

(A) The bonds specified in the resolution shall be sold by the Treasurer, at a time fixed by the Treasurer, and upon notice that the Treasurer may deem advisable, or at the time to which the sale shall have been continued, at public sale, upon sealed bids, to the bidder whose bid will result in the lowest net interest cost on account of the bonds.

(B) If no bids are received, or if the Treasurer determines that the bids are not satisfactory, the Treasurer may reject all bids received, if any, and either readvertise or sell the bonds at private sale.

(3) Pending preparation of the definitive bonds, the authority may issue interim receipts or certificates that shall be exchanged for the definitive bonds.

(d) A resolution or resolutions authorizing bonds or an issue of bonds may contain provisions, which shall be a part of the contract with the holders of the bonds to be authorized, as to all of the following:

(1) Pledging the full faith and credit of the authority or pledging all or any part of the revenues of a project or any revenue-producing contract or contracts made by the authority with any individual, partnership, corporation, or association or other body, public or private, to secure the payment of the bonds or of any particular issue of bonds, subject to those agreements with bondholders that may then exist.

(2) The rents, fees, and other charges to be charged, and the amounts to be raised in each year by the rents, fees, and other charges to be charged, and the use and disposition of the revenues.

(3) The setting aside of reserves or sinking funds, and the regulation and disposition of the reserves or sinking funds.

(4) Limitations on the right of the authority or its agent to restrict and regulate the use of the project.

(5) Limitations on the purpose to which the proceeds of sale of an issue of bonds then or thereafter to be issued may be applied and pledging the proceeds of sale to secure the payment of the bonds or an issue of the bonds.

(6) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds.

(7) The procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given.

(8) Limitations on the amount of moneys derived from the project to be expended for operating, administrative, or other expenses of the authority.

(9) Defining the acts or omissions to act that constitute a default in the duties of the authority to holders of its obligations, and providing the rights and remedies of the holders in the event of a default.

(10) The mortgaging of a project and the site of the project for the purpose of securing the bondholders.

(e) Members of the authority and persons executing the bonds or notes shall not be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance of the bonds or notes.

(f) The authority shall have the power to purchase its bonds or notes out of any funds available for purchasing its bonds or notes. The authority may hold, pledge, cancel, or resell the bonds, subject to and in accordance with agreements with bondholders.

SEC. 21.

Section 94146 of the Education Code, as amended by Section 3 of Chapter 123 of the Statutes of 2022, is amended to read:

94146.

(a) Bonds issued under the provisions of this chapter shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state, or a pledge of the faith and credit of the state or of any political subdivision other than the authority, but shall be payable solely from the funds herein provided. All bonds shall contain a statement to the effect that neither the State of California nor the authority shall be obligated to pay the bond or the interest on the bond except from revenues of the authority, and that neither the faith and credit nor the taxing power of the state or of any political subdivision of the state is pledged to the payment of the principal of, or the interest on, the bonds.

(b) The issuance of bonds under the provisions of this chapter shall not directly, indirectly, or contingently obligate the state or any political subdivision of the state to levy or to pledge any form of taxation whatever therefor or to make an appropriation for payment of the bonds. This section shall not prevent or be construed to prevent the authority from pledging its full faith and credit, or the full faith and credit of a participating private college, participating nonprofit entity, or university applicant, to the payment of bonds or issue of bonds authorized pursuant to this chapter.

SEC. 22.

Section 94147 of the Education Code is amended to read:

94147.

(a) The authority may fix, revise, charge, and collect rates, rents, fees, and charges for the use of and for the services furnished or to be furnished by each project, and may contract with any person, partnership, association or corporation, or other body, public or private, in respect thereof. These rates, rents, fees, and charges shall be fixed and adjusted in respect of the aggregate of rents, rates, fees, and charges from the project so as to provide funds sufficient with other revenues or moneys, if any, to accomplish all of the following:

(1) Pay the cost of maintaining, repairing, and operating the project and each and every portion thereof, to the extent that the payment of that cost has not otherwise been adequately provided for.

(2) Pay the principal of, and the interest on, outstanding bonds of the authority issued in respect of that project as the same shall become due and payable.

(3) Create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, bonds of the authority.

(b) (1) The rates, rents, fees, and charges referenced in subdivision (a) are not subject to supervision or regulation by any department, commission, board, body, bureau, or agency of this state other than the authority. A sufficient amount of the revenues derived in respect of a project, except a part of those revenues that is necessary to pay the cost of maintenance, repair, and operation and to provide reserves for renewals, replacements, extensions, enlargements, and improvements as may be provided for in the resolution authorizing the issuance of any bonds of the authority or in the trust agreement securing the same, shall be set aside at regular intervals provided in the resolution or trust agreement in a sinking or other similar fund.

(2) The fund established pursuant to paragraph (1) is pledged to, and charged with, the payment of the principal of and the interest on, the bonds as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided.

(3) The pledge required by paragraph (2) shall be valid and binding from the time when the pledge is made. The rates, rents, fees, and charges and other revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of that pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the authority.

(4) The use and disposition of moneys to the credit of the sinking or other similar fund shall be subject to the resolution authorizing the issuance of those bonds or of that trust agreement. Except as may otherwise be provided in that resolution or that trust agreement, the sinking or other similar fund shall be a fund for all of those bonds issued to finance projects at a participating college, or bonds issued to finance a project of a participating nonprofit entity or university applicant, without distinction or priority of one over another.

(5) The authority, in the resolution or trust agreement, may provide that the sinking or other similar fund shall be either of the following:

(A) The fund for a particular project at a participating college or university applicant and for the bonds issued to finance a particular project and may, additionally, permit and provide for the issuance of bonds having a subordinate lien in respect of the security herein authorized to other bonds of the authority and, in this case, the authority may create separate sinking or other similar funds in respect of those subordinate lien bonds.

(B) The fund for a particular project of a participating nonprofit entity or university applicant.

SEC. 23.

Section 94151 of the Education Code, as amended by Section 5 of Chapter 123 of the Statutes of 2022, is amended to read:

94151.

(a) The authority is hereby authorized to loan funds to a participating institution or university applicant and to provide for the issuance of bonds for the purpose of refinancing working capital or projects not originally funded pursuant to this chapter, such refinancing to include the repayment of costs, as defined in Section 94110, incurred for projects by the participating institution or university applicant and which have a completion date subsequent to December 29, 1969.

(b) For purposes of this section, “completion date” shall mean, in the case of construction or renovation of a project, the date on which the notice of completion is filed, and, in the case of the acquisition of a project, the date of such acquisition.

(c) All such bonds shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.

SEC. 24.

Section 94154 of the Education Code is amended to read:

94154.

The State of California pledges and agrees with the holders of the bonds, notes, and other obligations issued pursuant to authority contained in this chapter, and with those parties who may enter into contracts with the authority pursuant to this chapter, that the state will not limit, alter, or restrict the rights hereby vested in the authority and the participating private colleges, participating nonprofit entities, and university applicants to maintain, construct, reconstruct, and operate any project as defined in this chapter or to establish and collect the rents, fees, receipts, or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of maintenance and operation thereof and to fulfill the terms of any agreements made with the holders of bonds authorized by this chapter, and with the parties who may enter into contracts with the authority pursuant to this chapter, or in any way impair the rights or remedies of the holders of those bonds or those parties until the bonds, together with interest thereon, are fully paid and discharged and the contracts are fully performed on the part of the authority. The authority as a public body corporate and politic may include the pledge herein made in its bonds and contracts.

SEC. 25.

Section 94190 of the Education Code is amended to read:

94190.

(a) In addition to the foregoing powers, the authority shall have power to accomplish both of the following:

(1) Upon application of the participating college, participating nonprofit entity, or university applicant, to construct, acquire, or otherwise provide projects for the use and benefit of the participating private college, public college, or public university and the students, faculty, and staff of that participating institution. The participating college, participating nonprofit entity, or university applicant for which a project is undertaken by the authority shall approve the plans, specifications, and location of that project.

(2) To lease any project provided pursuant to this section to the participating private college, participating nonprofit entity, or university applicant for which that project is provided. When the liabilities of the authority incurred for a project have been met and the bonds of the authority issued therefor have been paid, or those liabilities and bonds have otherwise been discharged, the authority shall transfer title to all the real and personal property of that project vested in the authority, to the participating college, participating nonprofit entity, or university applicant in connection with which that project is then leased. However, if at any time prior thereto a participating private college ceases to offer educational facilities, then the title shall vest in the State of California.

(b) Any lease of a project authorized by this section shall be a general obligation of the lessee and may contain provisions, which shall be a part of the contract with the holders of the bonds of the authority issued for the project, as to all of the following:

(1) Pledging all or any part of the moneys, earnings, income, and revenues derived by the lessee from the project or any part or parts thereof, or other personal property of the lessee, to secure payments required under the terms of that lease.

(2) The rates, rentals, fees, and other charges to be fixed and collected by the lessee, the amounts to be raised in each year thereby, and the use and disposition of that income and those moneys, earnings, and revenues.

(3) The setting aside of reserves and the creation of special funds and the regulation and disposition thereof.

(4) The procedure, if any, by which the terms of the lease may be amended, the amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given.

(5) Vesting in a trustee or trustees the specified properties, rights, powers, and duties as shall be deemed necessary or desirable for the security of the holders of the bonds of the authority issued for those projects.

(6) The obligations of the lessee with respect to the replacement, reconstruction, maintenance, operation, repairs, and insurance of that project.

(7) Defining the acts or omissions to act that constitute a default in the obligations and duties of the lessee, and providing for the rights and remedies of the authority and of its bondholders in the event of default.

(8) Any other matters, of like or different character, that may be deemed necessary or desirable for the security or protection of the authority or the holders of its bonds.

SEC. 26.

Section 94191 of the Education Code, as amended by Section 6 of Chapter 123 of the Statutes of 2022, is amended to read:

94191.

The authority also shall have power:

(a) To make loans to any participating private college, participating nonprofit entity, or university applicant for the acquisition or construction of projects in accordance with a loan agreement and in accordance with plans and specifications that shall be subject to approval by the authority. No loan shall exceed the total cost of the project and the equipment therefor as determined by the authority. Each loan shall be premised upon an agreement between the authority and the participating private college, participating nonprofit entity, or university applicant as to payment, security, maturity, redemption, interest, and other appropriate matters.

(b) To make loans to any participating private college, participating nonprofit entity, or university applicant to refund existing bonds, mortgages, or advances or other obligations incurred, given, or made by the private college, participating nonprofit entity, or university applicant for the acquisition or construction of any projects.

(c) To make loans to any participating private college for working capital in accordance with a loan agreement. Each loan shall be premised upon an agreement between the authority and the participating private college as to payment, security, maturity, redemption, interest, and other appropriate matters.

(d) To make loans to any participating private college to refund existing bonds, mortgages, or advances or other obligations incurred, given, or made by the participating private college for working capital.

SEC. 27.

Section 94192 of the Education Code is amended to read:

94192.

For the purpose of obtaining and securing loans under Section 94191, every participating private college, participating nonprofit entity, or university applicant shall, notwithstanding any other law, have power to mortgage and pledge any of its real or personal property, and to pledge any of its income from whatever source to repay the principal of and interest on any loan made to it by the authority or to pay the interest on and principal and redemption premium, if any, of any note, bond, or other evidence of indebtedness evidencing the debt created by that loan; provided that the foregoing shall not be construed to authorize actions in conflict with specific legislation, trusts, endowment, or other agreements relating to specific properties or funds.

SEC. 28.

Section 94193 of the Education Code is amended to read:

94193.

Moneys of the authority received from any participating private college, participating nonprofit entity, or university applicant in payment of any sum due to the authority pursuant to the terms of any loan or other agreement or any bond, note, or other evidence of indebtedness, shall be deposited in an account in which only moneys received from participating private colleges, participating nonprofit entities, or university applicants shall be deposited, and shall be kept separate and apart from and not commingled with any other moneys of the authority. Moneys deposited in that account shall be paid out on checks signed by the chairperson of the authority or by a person or persons authorized by the authority.

SEC. 29.

Section 94194 of the Education Code is amended to read:

94194.

(a) Whenever the authority under Section 94190 undertakes to construct, acquire, or otherwise provide a project and to lease the same to a private college or university applicant the lessee shall be responsible for the direct operation and maintenance costs of such project and, in addition, shall be responsible for the overall supervision of each project, for the overhead and general administrative costs of the lessee which are incurred because of such project and for the integration of each project operation into the lessee’s educational program.

(b) Whenever the authority under Section 94191 makes loans for the construction of a project, the private college or university applicant at which such project is located shall be responsible for the direct operation and maintenance costs of such project and, in addition, shall be responsible for the overall supervision of each project, for the overhead and general administrative costs of the private college or university applicant which are incurred because of such project and for the integration of each project operation into the institution’s educational program.

SEC. 30.

Section 94195 of the Education Code is amended to read:

94195.

Any pledge of moneys, earnings, income, or revenues authorized with respect to participating private colleges, participating nonprofit entities, or university applicants, pursuant to this chapter, shall be valid and binding from the time when the pledge is made. The moneys, earnings, income, or revenues so pledged and thereafter received by the pledgor shall immediately be subject to the lien of that pledge without any physical delivery thereof or further act. The lien of that pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the pledgor irrespective of whether the parties have notice thereof. No instrument by which a pledge is created need be filed or recorded in any manner.

SEC. 31.

(a) For purposes of Sections 2 and 18 to 30, inclusive, of this act, the Legislature finds and declares all of the following:

(1) Housing is often the most expensive component of college costs for California students, even more than tuition.

(2) The lack of rental housing is often a significant problem for California communities near college campuses.

(3) The University of California, the California State University, and the California Community Colleges often lack debt capacity to build enough student housing to meet demand.

(4) The COVID-19 pandemic has caused a severe economic recession, and state-funded construction projects can be a tool to help the state’s economy to recover.

(b) It is the intent of the Legislature that all of the following occur:

(1) That one-time state funding be used to provide zero-interest loans to public college and university applicants to support affordable student housing projects and affordable faculty and staff housing projects.

(2) That the rates charged to students for housing supported by the California Student Housing Revolving Loan Fund will be below local market rental rates for comparable housing, and may take into account the costs of utilities, food service, operations, maintenance, and other services included in the rent for student housing.

(3) That, to the extent practical, loan repayments serve as a source of reserve and security for the payment of principal and interest on future revenue bonds, the proceeds of which are to be used for affordable student housing projects and affordable faculty and staff housing projects.

SEC. 32.

This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.

Bill Text

AB-190 Higher education budget trailer bill.(2021-2022)

Bill Start

LEGISLATIVE COUNSEL'S DIGEST

Digest Key

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

17201.

SEC. 2.

CHAPTER 14.28. California Student Housing Revolving Loan Fund Act of 2022

Article 1. Title

67329.1.

Article 2. Definitions

67329.2.

Article 3. The California Student Housing Revolving Loan Fund

67329.3.

Article 4. Criteria and Process

67329.4.

67329.5.

67329.51.

Article 5. Repayment and Bond Issuance

67329.6.

Article 6. Rulemaking

67329.7.

Article 7. Reporting

67329.8.

Article 8. Administrative Costs

67329.9.

SEC. 3.

69432.7.

SEC. 4.

70023.

SEC. 5.

79222.

SEC. 6.

79223.

SEC. 7.

79223.5.

SEC. 8.

79225.

SEC. 9.

79511.

SEC. 10.

87861.

SEC. 11.

87862.

SEC. 12.

87863.

SEC. 13.

87864.

SEC. 14.

87865.

SEC. 15.

87867.

SEC. 16.

88280.

SEC. 17.

89297.1.

SEC. 18.

94110.

SEC. 19.

94140.

SEC. 20.

94144.

SEC. 21.

94146.

SEC. 22.

94147.

SEC. 23.

94151.

SEC. 24.

94154.

SEC. 25.

94190.

SEC. 26.

94191.

SEC. 27.

94192.

SEC. 28.