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AB-473 Education technology: loans.(2001-2002)



Current Version: 04/30/01 - Amended Assembly

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AB473:v96#DOCUMENT

Amended  IN  Assembly  March 27, 2001
Amended  IN  Assembly  April 18, 2001
Amended  IN  Assembly  April 30, 2001

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Assembly Bill
No. 473

Introduced  by  Assembly Member Cogdill
 (Coauthor(s): Assembly Member Bogh, Chavez, Cox, La Suer, Leach, Robert Pacheco, Zettel)

February 21, 2001

An act to add Chapter 8.7 (commencing with Section 52280.10) to Part 28 of the Education Code, relating to education technology, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 473, as amended, Cogdill. Education technology: loans.
Existing law, the Digital High School Education Technology Grant Act of 1997, has as its purpose providing all high school pupils with basic computer skills, including, but not limited to, Internet research and retrieval tools, so as to, among other things, improve pupil achievement in all academic subjects. Existing law establishes the Education Technology Grant Program to provide one-time grants to school districts and charter schools to acquire or lease computers for instructional purposes. Pursuant to existing law, the California Technical Assistance Project is established, until December 31, 2002, to administer a regionalized network of technical assistance to schools and school districts on the implementation of education technology.
This bill would establish the Education Technology Bank Revolving Fund in the State Treasury and provide that moneys in the fund would be continuously appropriated to the Superintendent of Public Instruction. The bill would authorize the superintendent to approve loans from the fund to local education agencies, as defined, to meet the purpose of the local education technology plan, with prescribed contents, approved by the California Technical Assistance Project.
This bill would require the loans to be interest-free and would permit from a minimum of 20% to a maximum of 50% forgiveness of the loans based upon prescribed criteria related to assessed property value. The bill would require that the loans be repaid in 5 years.
To the extent that loans are forgiven, funds appropriated for the purposes of this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 8.7 (commencing with Section 52280.10) is added to Part 28 of the Education Code, to read:
CHAPTER  8.7. Education Technology Bank
Article  1. General Provisions

52280.10
 (a) The Education Technology Bank Revolving Fund is hereby created in the State Treasury. The fund shall be comprised of revenues appropriated or transferred to the fund through the annual budget process. Notwithstanding Section 13340 of the Government Code, moneys in the fund are continuously appropriated to the superintendent for the purpose of making loans under this chapter and shall remain available for that purpose until reappropriated or transferred through the Budget Act or any other act.
(b) Loans may be made from moneys in the fund to local education agencies as defined in Section 11020 upon application of a local education agency and approval by the superintendent.
(c) To be eligible for a loan under this chapter, a local education agency shall develop and submit an education technology plan, as specified in Article 2 (commencing with Section 52280.20) and approved by the California Technical Assistance Project pursuant to Section 51871. Money loaned to a local education agency, pursuant to this chapter shall be used only to meet the purposes of the plan.

52280.12.
 For purposes of this chapter “superintendent” means the Superintendent of Public Instruction.

Article  2. Loan Applications

52280.20.
 (a) Loan applications shall include an education technology plan containing, at a minimum, all of the following:
(1) A description of the objectives for the use of the money.
(2) A description of the measurable outcomes sought.
(3) Plans for ongoing system support and development.
(4) Plans for staff development and training.
(5) A project budget containing one-time and recurring costs and matching resources.
(6) A plan for evaluating the effectiveness of the project in meeting the established goals.
(b) The superintendent may approve an application contingent upon a California Technical Assistance Project approved education technology plan being submitted by the local education agency prior to implementation of the plan.
(c) Upon request by a local education agency, the regional technology consortia or the State Department of Education, or both, shall provide technical assistance to the local education agency in the development of its plans. The regional technology consortia shall review and comment on the plan submitted in their respective regions within 30 days of the date that it is submitted by the local education agency. The local education agency shall, thereafter, submit its plan, with changes based on the comments of the regional technology consortia, to the superintendent.
(d) Local education agencies shall keep plans updated with the California Technical Assistance Project to reflect progress, inventory, teacher and staff development, and an accounting of funds.

Article  3. Loan Selection and Awards

52280.30.
 (a) The superintendent may consider all of the following when making a determination as to the approval of a local education agency’s loan application:
(1) Soundness of the application of the local education agency.
(2) Availability to the local education agency of other sources of funding.
(3) The impact that receipt of funds received pursuant to this section will have on the local educational agency’s receipt of other private and public financing.
(4) The financial needs of the local education agency.
(5) Ability of the local education agency to meet the terms of the loan for which it applies.
(b) Priority for loans shall be given to schools with the lowest assessed property value per average daily attendance based on the second principal apportionment of the fiscal year prior to the local education agency applying for the loan.

(c)The loans shall be interest free and the superintendent shall allow between 20 percent to 50 percent forgiveness of the loan principal.

(c) (1) The loans shall be interest free. The superintendent shall forgive a minimum of 20 percent of the loan principal and may forgive up to a maximum of 50 percent of the loan principal as set forth in paragraph (2).
(2) The superintendent shall determine the percentage of forgiveness, above the 20 percent minimum set forth in paragraph (1), based on the assessed property value per unit of average daily attendance. The lower the assessed property value per average daily attendance, the lower the percentage of principal required to be repaid.
(d) Loan applications shall be accepted on a quarterly basis for review by the superintendent who shall approve applications and award loans on a quarterly basis.
(e) Commencing with the first fiscal year following the fiscal year the local education agency receives the loan, the Controller shall deduct from apportionments made to the local educational agency, as appropriate, an amount equal to the annual repayment of the amount loaned to the local educational agency and pay the same amount into the Education Technology Bank Fund. Repayment of the loan shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the State Department of Education, not to exceed five years for any loan.
(f) If the superintendent disapproves an application, he or she shall include the reasons in writing along with its disapproval. The superintendent shall provide an applicant whose application has been disapproved for funding an opportunity to address any reasons given for that disapproval. The local education agency may resubmit applications for reconsideration.
(g) A local education agency shall be eligible for one loan every five years.

Article  4. Loan Amounts

52280.40.
 (a) Each Education Technology Bank Fund loan to a local education agency shall not exceed one hundred fifty dollars ($150) per unit of average daily attendance in kindergarten and grades 1 to 12, inclusive, or for small school districts with fewer than 100 units of average daily attendance, a fixed minimum loan amount of fifteen thousand dollars ($15,000).
(b) Average daily attendance for the purposes of this article shall be based on the second principal apportionment of the fiscal year prior to the local education agency applying for the loan.
(c) In no event shall a local education agency receive a loan in excess of three hundred thousand dollars ($300,000) pursuant to this chapter in any one fiscal year.