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) (A) 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, as those sections read on January 1, 2023, 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.

(B) Commencing with the 2023–24 fiscal year, funding previously allocated for construction grants for campuses of the University of California and the California State University, or funding that is planned to be allocated for additional construction grants for the University of California and the California State University, pursuant to this section, as it read on January 1, 2023, shall be funded with bonds issued by the University of California and the California State University instead of funded from previous and planned General Fund appropriations.

(C) Commencing with the 2023–24 fiscal year, funding previously allocated for construction grants for campuses of the California Community Colleges, or funding that is planned to be allocated for additional construction grants for the California Community Colleges, pursuant to this section, as it read on January 1, 2023, shall be funded with local revenue bonds issued by community college districts instead of funded from previous and planned General Fund appropriations.

(2) Notwithstanding paragraph (1), the amounts designated in paragraph (1) for the California Community Colleges, and the amounts designated in subdivision (n) for the University of California and the California State University, 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.

(C) The affordability restriction described in subparagraph (A) shall apply for the life of the facility.

(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, 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.

(m) The funds appropriated pursuant to subdivision (l) 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 thousand dollars ($150,000) 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.

(n) Commencing with the 2023–24 fiscal year all of the following shall apply:

(1) (A) The General Fund support for the grants provided to campuses of the University of California and the California State University, as listed in this section pursuant to Chapters 54 and 572 of the Statutes of 2022, shall revert to the General Fund and the project grants shall instead be funded by revenue bonds issued by the University of California and the California State University.

(B) In addition to the funding for projects pursuant to subparagraph (A) for the University of California, the University of California shall fund capital outlay planning and construction grants using revenue bond funding issued by the University of California for all of the following projects:

(i) One hundred twenty-six million dollars ($126,000,000) for allocation to the University of California, Riverside, for an intersegmental project with Riverside City College.

(ii) One hundred million dollars ($100,000,000) for allocation to the University of California, Merced, for an intersegmental project with Merced College.

(iii) One hundred eleven million seven hundred eighty-seven thousand dollars ($111,787,000) for allocation to the University of California, Santa Cruz, for an intersegmental project with Cabrillo Community College.

(C) (i) In addition to the funding for projects pursuant to subparagraph (A) for the California State University, the California State University shall fund construction grants using revenue bond funding issued by the California State University for all of the following projects:

(I) Eighty-nine million one hundred thousand dollars ($89,100,000) for allocation to the California State University, San Jose.

(II) Forty-one million three hundred forty thousand dollars ($41,340,000) for allocation to the California State University, Sacramento.

(III) Eighteen million eight hundred fifty thousand dollars ($18,850,000) for allocation to the California State University, Stanislaus.

(ii) The California State University shall use seven million four hundred eighty-nine thousand dollars ($7,489,000) in revenue bond funding issued by the California State University to fund cost overruns associated with approved project grants described in subparagraph (A).

(D) Projects funded by revenue bond funds pursuant to this paragraph shall meet all requirements of this chapter.

(2) (A) The General Fund support for the grants provided to campuses of the California Community Colleges, as listed in this section pursuant to Chapters 54 and 572 of the Statutes of 2022, shall revert to the General Fund, and the grants may instead be funded by local financing issued by community college districts for specified projects. A community college that has already received an allocation of resources shall revert those General Fund resources by June 29, 2024, or upon the enactment of the Budget Act of 2024, whichever is later.

(B) In addition to the funding for projects pursuant to subparagraph (A), the California Community Colleges may fund construction grants using local financing issued by community college districts for all of the following projects:

(i) Seventy-five million dollars ($75,000,000) for allocation to San Diego City College.

(ii) Sixty-seven million nine hundred ninety-five thousand dollars ($67,995,000) for allocation to Cerritos College.

(iii) Fifty-five million eight hundred fifty-four thousand dollars ($55,854,000) for allocation to the College of San Mateo.

(iv) Twenty-eight million four hundred fifteen thousand dollars ($28,415,000) for allocation to the College of the Redwoods.

(C) In addition to the funding for projects pursuant to subparagraphs (A) and (B), the California Community Colleges may fund construction grants using local financing issued by local community college districts for an additional eighty-one million three hundred forty-three thousand dollars ($81,343,000), subject to future legislation.

(D) Projects funded by local financing pursuant to this paragraph shall meet all requirements of this chapter.

(o) 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.

(p) Intersegmental projects funded through the University of California shall divide the number of beds for low-income students between the participating campuses as specified in the Higher Education Student Housing Grant Program application approved by the state and further defined in the subsequent operating agreements between each University of California campus and the California Community College district partnership.

(q) It is the intent of the Legislature that no later than the Budget Act of 2024, a statewide lease revenue bond or other statewide financing or fiscal approach be developed and included to support California community college affordable student housing projects that have been approved pursuant to this section.

69617.

 (a) (1) Subject to moneys appropriated by the Legislature for purposes of this section, the commission shall administer the Golden State Teacher Grant Program. Under the program, the commission shall provide one-time grant funds of up to twenty thousand dollars ($20,000) to each student enrolled, or who has applied for enrollment, on or after January 1, 2020, in a professional preparation program leading to a preliminary teaching credential or a pupil personnel services credential, at either a qualifying institution, as defined in subdivision (l) of Section 69432.7, or a professional preparation program approved by the Commission on Teaching Credentialing that has a main campus location or administrative entity that resides in California, including professional preparation programs operated by local educational agencies in California, if the student commits to working at a priority school or a California preschool program for four years within the eight years following the date the student completes the professional preparation program.

(2) Under the program, the commission shall provide one-time grant funds of up to ten thousand dollars ($10,000) to each California resident student enrolled, or who has applied for enrollment, on or after January 1, 2020, in a professional preparation program leading to a preliminary teaching credential or pupil personnel services credential at a qualified institution, as determined by the commission pursuant to Section 69617.5, if the student commits to working at a priority school or a California preschool program for four years within the eight years following the date the student completes the professional preparation program. Of the funds appropriated in support of the program, no more than 8 percent of the total funding may be allocated for the purpose of awards provided pursuant to this paragraph.

(3) Funds appropriated for the Golden State Teacher Grant Program in the Budget Act of 2020 and the Budget Act of 2021 shall be available for encumbrance or expenditure by the commission until June 30, 2026.

(4) Grant funds shall be used to supplement and not supplant other sources of grant financial aid, and may be disbursed in more than one academic year, provided that the total amount of funds granted to an applicant does not exceed twenty thousand dollars ($20,000).

(b) The one-time grant funds issued pursuant to this section shall not exceed the amount appropriated for the Golden State Teacher Grant Program in the Budget Act of 2020 and the Budget Act of 2021.

(c) (1) A grant recipient shall agree to serve at a priority school or a California preschool program for four years and shall have eight years, upon completion of the recipient’s professional preparation program, to meet that obligation. Except as provided in paragraph (4), a grant recipient shall agree to repay the state 25 percent of the total received grant funds annually, up to full repayment of the received grant funds, for each year the recipient fails to do one or more of the following:

(A) Be enrolled in or have successfully completed a professional preparation program approved by the Commission on Teacher Credentialing.

(B) While enrolled in the professional preparation program, maintain good academic standing.

(C) Before or upon completion of the professional preparation program, satisfy the state basic skills requirement pursuant to Sections 44252 and 44252.5.

(D) Complete the required teaching service or clinical practice following completion of the recipient’s professional preparation program.

(E) Complete their teacher preparation program and earn a preliminary credential within six years after the first distribution of grant funds.

(2) Nonperformance of the commitment to serve at a priority school or a California preschool program for four years shall be certified by the commission.

(3) Nonperformance of the commitment to earn a preliminary teaching credential or pupil personnel services credential shall be certified by the Commission on Teacher Credentialing to the Student Aid Commission.

(4) Any exceptions to the requirement for repayment shall be defined by the commission, and may include, but shall not necessarily be limited to, counting a school year towards the required four-year service requirement at a priority school or a California preschool program if a grant recipient is unable to complete the school year when any of the following occur:

(A) The grant recipient has completed at least one-half of the school year or preschool program year, as applicable.

(B) The employer deems the grant recipient to have fulfilled the grant recipient’s contractual requirements for the school year or preschool program year, as applicable, for purposes of salary increases, probationary or permanent status, and retirement.

(C) The grant recipient was not able to serve due to the financial circumstances of the school district, including a decision to not reelect the employee for the next succeeding school year.

(D) The grant recipient has a condition covered under the federal Family and Medical Leave Act of 1993 (29 U.S.C. Sec. 2601 et seq.) or similar state law.

(E) The grant recipient was called or ordered to active duty status for more than 30 days as a member of a reserve component of the Armed Forces of the United States.

(d) The commission may use up to 1.5 percent of funding appropriated for purposes of this section for outreach and administration.

(e) The commission shall develop a process by which students interested in a professional preparation program leading to a preliminary teaching credential or a pupil personnel services credential may submit a request for a preenrollment conditional award notice from the commission. The notice shall provide information regarding the Golden State Teacher Grant Program award amount the student may be eligible to receive upon enrollment in the professional preparation program and formal application to the commission to participate in the Golden State Teacher Grant Program.

(f) (1) A “priority school” means a school with 55 percent or more of its pupils being unduplicated pupils, as defined in subdivision (b) of Section 42238.02.

(2) The commission, in coordination with the State Department of Education, shall publish a list of priority schools by April 15 of each year.

(3) For purposes of satisfying the service requirement, a grant recipient may use service at a school listed on the most recent list of priority schools published by the commission that is available when the grant recipient seeks employment at a priority school. Further service at that school shall continue to satisfy the four-year service requirement, even if the school is no longer included on future priority school lists.

(g) (1) The commission may adopt regulations, including any amendments to regulations, necessary for the implementation of the Golden State Teacher Grant Program. The commission may adopt emergency regulations it deems necessary for the implementation of this program, in accordance with the rulemaking provisions of the Administrative Procedure Act (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 or amendments to 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.

(2) Notwithstanding any other law and without further compliance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), any emergency regulations and amendments to the emergency regulations adopted pursuant to paragraph (1) shall remain in force and effect until June 30, 2025.

(3) No rule, policy, or standard of general application issued by the commission in implementing this section shall be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

(h) The commission shall conduct, in partnership with the Commission on Teacher Credentialing, an evaluation of the Golden State Teacher Grant Program to determine the effectiveness of the program in recruiting credential candidates and employing credentialholders at priority schools and California preschool programs. The commission is encouraged to use qualitative and quantitative measures to quantify the number of credential candidates the program recruited into professional preparation programs, disaggregated by program and institution type, and the number of credentialholders employed at priority schools and California preschool programs, disaggregated by subject matter placement, and to describe the effects of the program on the decisions of credential candidates to enter and remain in the education field. The commission shall provide, with respect to the evaluation, a report to the Department of Finance and the appropriate fiscal and policy committees of the Legislature on or before December 31, 2025, and every two years thereafter.

(i) The commission shall accept applications for the Golden State Teacher Grant Program beginning on September 1 for the following academic year and shall establish a process and timeline that allows institutions of higher education to provide applicants with grant eligibility determinations before the deadline for enrolling in their professional preparation program.

(j) The commission shall permit grant recipients to receive funds in more than one academic year, provided the total amount of funds granted to any applicant does not exceed twenty thousand dollars ($20,000).

(k) As used in this section, “California preschool program” means a state-funded or federally funded preschool program in the state, including California state preschool programs, tribal preschool programs, and Head Start programs.

69617.5.

 (a) The Legislature finds that the state’s teaching crisis requires immediate and targeted action that also increases diversity among classroom teachers.

(b) Notwithstanding Section 69617, the Commission on Teacher Credentialing may determine that a private postsecondary educational institution is a qualifying institution for purposes of the program established pursuant to Section 69617, if the institution meets all of the following criteria:

(1) The institution offers a professional preparation program approved by the Commission on Teacher Credentialing as of January 1, 2023.

(2) The institution was originally chartered and is currently operating as a nonprofit entity that offers services exclusively online to California residents.

(3) The institution is either accredited by the Senior Colleges and Universities Commission of the Western Association of Schools and Colleges or is regionally accredited by an agency recognized by the United States Department of Education.

(4) The institution participates in the federal Pell Grant program (20 U.S.C. Sec. 1070a), and in at least two of the following federal student aid programs:

(A) Federal Work-Study Program (20 U.S.C. Sec. 1087–51).

(B) Federal Stafford Loan Program.

(C) Federal Supplemental Educational Opportunity Grant Program (20 U.S.C. Sec. 1070b).

(5) The institution has a federal student loan cohort default rate below 10 percent.

(6) The institution reports the degree to which enrolled students participating in this program complete the program and become licensed to teach in California within 24 months, and the average time to program completion.

(7) The institution has an established labor union student chapter that provides a pathway to union membership to students upon graduation.

(8) (A)  It is the intent of the Legislature that the institution is in compliance with any applicable provisions of the California Private Postsecondary Education Act of 2009 (Chapter 8 (commencing with Section 94800) of Part 59 of Division 10).

(B) If the institution has no physical presence in California, the institution shall contract with the Bureau for Private Postsecondary Education to respond to California resident student complaints pursuant to Section 94874.9.

(c) The requirements described in subdivision (b) shall be demonstrated in a manner to be determined by the Commission on Teacher Credentialing, which may include consultation with the State Board of Education.

69996.6.

 (a) The California Kids Investment and Development Savings Program Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, except for moneys derived from the federal American Rescue Plan Act, moneys in the fund shall be continuously appropriated, without regard to fiscal years, to the board for the program. The fund shall be the initial repository of all appropriations, gifts, or other financial assets received by the board in connection with operation of the program.

(b) (1) Subject to available funding, the program shall be implemented on or before July 1, 2022. The board may establish an implementation timeline for the program based on available funding. If the board does not secure adequate funds to implement the program before July 2, 2022, program implementation may be delayed while the board makes good faith efforts to secure necessary funding. The board may accept gifts, grants, awards, matching contributions, interest income, and appropriations from individuals, businesses, state and local governmental entities, and third-party sources for the program on terms the board deems advisable.

(2) Before the program is implemented and throughout the program’s operation, the board may authorize a county, city, nonprofit organization, or any other entity operating a local child savings account program to provide input to the program established pursuant to this article. The input may include, but is not limited to, information on any of the following:

(A) Infrastructure and systems development.

(B) Outreach and coordination with local child savings account programs.

(C) Program incentives to promote equity.

(D) Administrative fees and caps.

(E) Contribution strategies.

(F) Program accessibility, including language, identification, and banking access.

(c) On or before June 30, 2023, and on or before September 30 annually thereafter, the board shall report to the Department of Finance and the Legislature, pursuant to Section 9795 of the Government Code, information pertaining to the program’s implementation. The report shall include, at a minimum, all of the following:

(1) Detailed program expenditure information, including the amount of funds expended to establish KIDS Accounts pursuant to this article in the previous five fiscal years.

(2) The number of KIDS Accounts opened and state and nonstate contributions made to KIDS Accounts.

(3) Information about how parents were notified pursuant to subdivision (b) of Section 69996.3.

(4) The number of parents or legal guardians who engage with KIDS Accounts by verifying receipt of information provided to them pursuant to paragraph (2) of subdivision (b) of Section 69996.3, establishing separate accounts pursuant to Article 19 (commencing with Section 69980), or engaging with KIDS Accounts by other means approved by the board.

(5) A description of the board’s efforts and success in soliciting philanthropic or nonstate money to support the program.

(6) A description of the board’s marketing of the program.

(7) The rate of investment return earned by the money authorized by this article in the previous five fiscal years.

(8) To the extent that information is available and can be disclosed without providing any opportunity to associate the information with particular individuals, the board shall include information on the ethnicity, gender, and family income of account recipients.

(9) Recommendations for improving the program.

69996.9.

 (a) (1) For the 2021–22 fiscal year, through the program, all of the following shall occur:

(A) Each pupil enrolled in grades 1 to 12, inclusive, on the State Department of Education’s official census day in the 2021–22 fiscal year who meets the requirements to be considered an unduplicated pupil for purposes of paragraph (1) of subdivision (b) of Section 2574 or paragraph (1) of subdivision (b) of Section 42238.02 and who is enrolled at a school district, public charter school, state special school, or other local educational agency, shall have a KIDS Account established on the pupil’s behalf, unless the pupil’s KIDS Account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit into the pupil’s KIDS Account in the amount of five hundred dollars ($500).

(B) In addition to the amount allocated pursuant to subparagraph (A), the KIDS Account of each eligible pupil who is also a foster youth, as defined under subdivision (b) of Section 42238.01, shall receive an enhanced deposit of an additional five hundred dollars ($500).

(C) In addition to the amount allocated pursuant to subparagraphs (A) and (B), the KIDS Account of each eligible pupil who is also a homeless pupil meeting the definition of “homeless children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)) shall receive an enhanced deposit of an additional five hundred dollars ($500).

(2) Commencing with the 2022–23 fiscal year, through the program, all of the following shall occur:

(A) Each pupil who meets all of the following conditions shall have a KIDS Account opened on their behalf, unless their account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit into their KIDS Account in the amount of five hundred dollars ($500):

(i) The pupil is enrolled in first grade on the State Department of Education’s official census day in the applicable fiscal year.

(ii) The pupil meets the requirements to be considered an unduplicated pupil for purposes of paragraph (1) of subdivision (b) of Section 2574 or paragraph (1) of subdivision (b) of Section 42238.02.

(iii) The pupil is enrolled at a school district, public charter school, state special school, or other local educational agency.

(B) In addition to the amount allocated pursuant to subparagraph (A), the KIDS Account of each pupil who meets the requirements of subparagraph (A) and is also a foster youth, as defined under subdivision (b) of Section 42238.01, shall receive an enhanced deposit of an additional five hundred dollars ($500).

(C) In addition to the amount allocated pursuant to subparagraphs (A) and (B), the KIDS Account of each pupil who meets the requirements of subparagraph (A) and is also a homeless pupil under the definition of “homeless children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)) shall receive an enhanced deposit of an additional five hundred dollars ($500).

(D) For pupils for whom a KIDS Account has already been established pursuant to Section 69996.3 and who are also eligible for an enhanced deposit pursuant to this paragraph, the enhanced deposit shall be deposited in the KIDS Account in which funding for that pupil is currently held.

(3) A pupil who receives an enhanced deposit into their KIDS Account pursuant to paragraph (1) or (2) may only have one enhanced deposit made into their existing or newly established KIDS Account pursuant to this article. A pupil shall not have more than one KIDS Account established for them pursuant to this article.

(b) (1) The board shall collaborate with the State Department of Education, or other relevant governmental agencies, to identify eligible pupils for the purpose of establishing KIDS Accounts or making an enhanced deposit into existing KIDS Accounts pursuant to this section. To the extent feasible, the State Department of Education shall annually provide necessary data using census day data in a secure manner for the board to fulfill its obligations pursuant to this article, including, but not necessarily limited to, eligible pupils’ names, pupil identification, birth dates, grade levels, contact information of parents or legal guardians, and eligibility information. For purposes of this subdivision, the information received by the board shall be considered necessary to facilitate the establishment or enhancement of KIDS Accounts, or the establishment of a notification process for parents or legal guardians of eligible pupils.

(2) The board shall comply with federal and state laws to protect individual privacy, including, but not limited to, the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and all of the following federal statutes:

(A) The Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).

(B) The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).

(C) The Higher Education Act of 1965 (Public Law 89-329, as amended).

(3) Notwithstanding any other law, individual records or source data associated with the establishment of a KIDS Account pursuant to this article shall not be subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(c) The Legislature finds and declares that undocumented persons are eligible for KIDS Accounts within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code.

(d) It is the intent of the Legislature to appropriate state funding in the annual Budget Act to support the establishment of a KIDS Account for any eligible pupil who meets, or could meet in a future year, the requirements to be exempt from nonresident tuition pursuant to subdivision (a) of Section 68130.5.

(e) (1) For the 2023–24 and 2024–25 fiscal years, the board shall partner with the Los Angeles Unified School District and the Riverside County Office of Education, including the 23 school districts in the County of Riverside, to explore ways to increase participation in the KIDS Program.

(2) As permissible under federal and state data privacy and data security laws, the board shall provide the local educational agencies specified in paragraph (1) with the statewide student identifiers of pupils within their respective jurisdictions who have not yet engaged with the KIDS Account established on their behalf commencing with the 2021–22 fiscal year. The board shall provide data at least three times per year to the extent feasible. Upon receipt of this data, the local educational agencies shall be responsible for complying with all applicable federal and state data privacy and data security laws relating to pupil record information.

(3) The board shall comply with federal and state laws to protect individual privacy, including, but not limited to, the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and all of the following federal statutes:

(A) The Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).

(B) The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).

(C) The Higher Education Act of 1965 (Public Law 89-329, as amended).

(4) (A) On or before September 30, 2025, the board, in collaboration with the local educational agencies specified in paragraph (1), shall submit a report to the Department of Finance and the Legislature, pursuant to Section 9795 of the Government Code. The report shall include, at a minimum, all of the following:

(i) The number of KIDS Program participants within the jurisdictions of the partnering local educational agencies that have registered on the program’s online portal and the number that have linked their KIDS Account to a Scholarshare 529 account.

(ii) The number of KIDS Program participants within the jurisdictions of the partnering local educational agencies that have requested a distribution of funds for qualified higher education expenses and the total amount of those payments.

(iii) A comparison of the rates specified in clauses (i) and (ii) with the rates of KIDS Program participants statewide.

(iv) As provided by the partnering local educational agencies, a description of the outreach strategies they implemented that were aimed at increasing participation in the KIDS Program, along with any information available on the direct impact of each of those strategies.

(v) Recommendations for improving KIDS Program structure and outreach in collaboration with local educational agencies.

(B) The board may include this information in its annual report on the KIDS Program pursuant to subdivision (c) of Section 69996.6.

(5) This subdivision shall become inoperative on July 1, 2025.

70022.

 (a) (1) Subject to an available and sufficient appropriation, an undergraduate student enrolled in the California State University or the University of California, or a community college student enrolled in upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, who meets the requirements of paragraph (3) is eligible for a scholarship award as described in paragraph (2).

(2) (A) For the 2013–14 to the 2021–22 academic year, inclusive, except as provided in paragraphs (4) and (5), an eligible student shall receive a scholarship award in an amount that, combined with other federal, state, or institutionally administered student grants or fee waivers received by an eligible student, is up to 40 percent of the amount charged to that student in that academic year for mandatory systemwide tuition and fees, or for an eligible community college student, up to 40 percent of the amount charged to that student in upper division fees for a community college baccalaureate degree program, if all of the requirements in paragraph (3) are met, to the satisfaction of the commission, each academic year.

(B) For the 2022–23 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:

(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers, and the amount of private scholarships awarded to the student in excess of the sum of the amounts in clauses (ii) and (iii).

(ii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources.

(iii) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.

(C) For the 2023–24 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:

(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers.

(ii) The amount of private grants and scholarships awarded to the student, and institutionally awarded emergency housing funds and other basic needs emergency assistance awarded to the student, including emergency assistance awarded by an institution-based foster youth support program, in excess of the sum of the amounts in clauses (iii) and (iv).

(iii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources.

(iv) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.

(D) Commencing with the 2024–25 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:

(i) Other federal, state, and institutionally administered student need-based scholarships, grants, or fee waivers.

(ii) The amount of private grants and scholarships awarded to the student, and institutionally administered non-need-based scholarships and institutionally awarded emergency housing funds or other basic needs emergency assistance awarded to the student, including emergency assistance awarded by an institution-based foster youth support program, in excess of the sum of the amounts in clauses (iii) and (iv).

(iii) An expected student contribution toward cost of attendance from work earnings or other resources. The commission shall adjust the 2023–24 amount of seven thousand eight hundred ninety-eight dollars ($7,898) annually thereafter based on the percentage change in the minimum wage, pursuant to paragraph (1) of subdivision (c) of Section 1182.12 of the Labor Code.

(iv) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.

(E) If a student’s total award under this article, in combination with other grants and scholarships treated as estimated financial assistance (EFA) or other financial assistance (OFA) pursuant to federal financial aid regulations, exceeds the allowable gift aid under those regulations, the award under this article shall be reduced to the greatest allowable award to maintain compliance pursuant to federal financial aid regulations.

(3) (A) A student shall be eligible to receive an award if all of the following requirements are met, to the satisfaction of the commission, each academic year:

(B) (i) For each academic year from 2013–14 to 2021–22, inclusive, the student’s annual household income does not exceed one hundred fifty thousand dollars ($150,000). For awards distributed for the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum income level set under this clause in accordance with the percentage changes 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. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(ii) Commencing with the 2022–23 academic year, the student’s annual household income does not exceed the following amounts:

(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.

(II) One hundred thirty-three thousand dollars ($133,000) if the student is a married independent student with no dependents other than a spouse.

(III) One hundred sixteen thousand dollars ($116,000) if the student is a single independent student with no dependents.

(iii) For awards distributed for the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum income levels set under clause (ii) in accordance with the percentage changes 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. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(C) (i) For each academic year from 2015–16 to 2021–22, inclusive, the student’s household asset level shall not exceed one hundred fifty thousand dollars ($150,000). For awards distributed in the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under this clause in accordance with the percentage changes 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. For purposes of this article, student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(ii) Commencing with the 2022–23 academic year, the student’s household asset level does not exceed the following amounts:

(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.

(II) Ninety-six thousand dollars ($96,000) if the student is a single independent student with no dependents or a married independent student with no dependents other than a spouse.

(iii) For awards distributed in the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under clause (ii) in accordance with the percentage changes 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. For purposes of this article, a student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(D) The student satisfies the eligibility requirements for a Cal Grant award pursuant to Section 69433.9, except that a student who is exempt from nonresident tuition under Section 68130.5 shall not be required to satisfy the requirements of subdivision (a) of Section 69433.9.

(E) The student is exempt from paying nonresident tuition.

(F) The student completes and submits a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application. The FAFSA or California Dream Act application must be submitted or postmarked by no later than March 2.

(G) The student makes a timely application or applications for all other federal, state, or institutionally administered grants or fee waivers for which the student is eligible.

(H) The student maintains satisfactory academic progress in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to subdivision (m) of Section 69432.7.

(I) The student is pursuing the student’s first undergraduate baccalaureate degree or has completed a baccalaureate degree and has been admitted to, and is enrolled in, a program of professional teacher preparation at an institution approved by the Commission on Teacher Credentialing.

(J) The student is enrolled at least part time.

(4) (A) For each academic year from 2013–14 to 2021–22, inclusive, the percentages specified in paragraph (2) shall be reduced by 0.6-percent increments per one thousand dollars ($1,000) of annual household income in excess of one hundred thousand dollars ($100,000), to a minimum 10 percent, provided that no scholarship award shall be provided to a student with an annual household income exceeding one hundred fifty thousand dollars ($150,000). Beginning with award calculations for the 2016–17 academic year, and for subsequent academic years, the commission shall annually adjust the income levels specified in this subparagraph by 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 and shall adjust the incremental reduction accordingly to ensure that a minimum of 10 percent of mandatory systemwide tuition and fees for an academic year are awarded. This reduction shall be in addition to any reduction required by Section 70023.

(B) Notwithstanding subparagraph (A), for each academic year from 2013–14 to 2021–22, inclusive, for any student who qualifies for a scholarship award of at least one dollar ($1), the minimum annual scholarship amount for full-time enrollment is ninety dollars ($90).

(5) (A) For the 2014–15, 2015–16, and 2016–17 academic years, the maximum amount of a student’s scholarship award shall be 35 percent, 50 percent, and 75 percent, respectively, of the total scholarship award amount that the student would otherwise be eligible to receive.

(B) Commencing with the 2022–23 academic year, except as provided in subparagraph (D), the maximum amount of a student’s scholarship award shall be determined by the percentage determined pursuant to subparagraph (C) of the total scholarship award amount that the student would otherwise be eligible to receive.

(C) The commission shall annually determine the percentage required for purposes of subparagraph (B) by taking the amount appropriated for the purposes of this program for the applicable award year, less the amount necessary to fund subparagraph (D), and dividing that by the sum of the projected amount computed pursuant to subparagraph (B), (C), or (D) of paragraph (2) for the applicable award year for all eligible students, except those affected by subparagraph (D).

(D) Commencing with the 2023–24 academic year, a current or former foster youth, as defined in paragraph (2) of subdivision (e) of Section 69433.6, shall receive a scholarship award in the full amount determined in subparagraphs (C) or (D) of paragraph (2), as adjusted, if applicable, pursuant to paragraph (2) of subdivision (d).

(b) In order for students enrolled in their respective segments to remain eligible to receive a scholarship award under this article, the University of California and the California State University shall not supplant their respective institutional need-based or merit-based grants with the funds provided for scholarships under this article. The University of California and the California State University shall ensure that the amount of institutional student aid provided in each academic year beginning with the 2022–23 academic year is adjusted annually to account for increases in systemwide undergraduate enrollment, as applicable, such that the proportion of institutional student aid relative to systemwide undergraduate enrollment is maintained at a level at least equivalent to the level maintained for undergraduate students during the 2021–22 academic year. The University of California and the California State University shall also ensure that at least 33 percent of the revenues of an increase to existing mandatory systemwide fees charged to undergraduate students is set aside by the regents or the trustees, as applicable, for institutional student aid to assist resident undergraduate students, including those undergraduate students exempt from nonresident tuition pursuant to Sections 68075.5 and 68130.5, and families in meeting the total cost of education.

(c) (1) The University of California and the California State University shall report on the implementation of this article as part of the report made pursuant to Section 66021.1. At a minimum, the report shall add the following information, by parental income level or expected family contribution deciles, for the prior academic year:

(A) The number and percentage of students receiving an award under this article and the average dollar amount of that award.

(B) The number and percentage of students receiving a student loan and the average amount borrowed.

(2) The report shall also include the following information by campus for the prior academic year:

(A) The cost of attendance for undergraduates in each living arrangement (on campus, off campus, or at home with parents).

(B) The number and percentage of undergraduates in each living arrangement (on campus, off campus, or at home with parents).

(d) (1) A Middle Class Scholarship Program award authorized pursuant to this article shall be defined as a full-time equivalent grant. An award to a part-time student shall be a fraction of a full-time grant. For each academic year from 2013–14 to 2021–22, inclusive, an award to a part-time student shall be determined by the proportionate amount charged for systemwide tuition and fees. A part-time student shall not be discriminated against in the selection of Middle Class Scholarship Program awards. For purposes of this section, “full-time student” and “part-time student” have the same meaning as specified in subdivision (f) of Section 69432.7.

(2) Commencing with the 2022–23 academic year, an award to a student enrolled in six to eight semester units, inclusive, or the equivalent shall be no more than one-half of the award the student would have received had the student enrolled full time. An award to a student enrolled in 9 to 11 semester units, inclusive, or the equivalent shall be no more than three-quarters of the award the student would have received had the student enrolled full time.

22807.5.

 Notwithstanding subdivision (b) of Section 22772, a contracting agency that is a community college district may, by resolution filed with the board, deem all part-time faculty employees who have an appointment of at least one semester and whose teaching assignment with one or more community college districts equals or exceeds two courses or 40 percent of the cumulative equivalent of a minimum full-time teaching assignment, to be employees subject to this part.

Sec. 24.

 (a) The Legislature finds and declares all of the following:

(1) California Community Colleges are the gateway to postsecondary education and high-wage jobs for many Californians, and increasing access to high-quality education is a legislative priority.

(2) The COVID-19 pandemic necessitated that community colleges offer all courses in an online capacity.

(3) The immediate transition from in-person to online course offerings left a myriad of academic questions on the best manner and methods of offering online courses to students.

(4) Emerging from the COVID-19 pandemic, California Community Colleges continue to offer significantly more online courses than before. However, a comprehensive analysis of student outcomes relating to online course offerings and strategies to support online and hybrid student success has not been conducted.

(5) Results from the California Community Colleges’ Fall 2022 Statewide College Attendance Survey, which included responses from over 75,000 previously enrolled and prospective students, found that students’ need to balance complex lives and college affordability concerns were key drivers of their enrollment decisions. Specifically, students indicated needing flexible options, such as expanded and online course offerings, additional financial assistance, and support in balancing their competing priorities. Additionally, while some previously enrolled students suggested they did not reenroll because there were not enough online course offerings, others said there were too many online course offerings and they preferred in-person instruction, and others identified difficulty in learning in an online environment as a top reason for dropping courses.

(6) By commissioning a comprehensive study of the current online and hybrid course offerings by community colleges, the Legislature is intent on gleaning information about best practices and pedagogy in online education for community college students, and how colleges and the state should support effective teaching and learning in online and in-person course offerings to close equity gaps and maximize student access and outcomes.

(b) For the 2023–24 fiscal year, the sum of five hundred thousand dollars ($500,000) is hereby appropriated from the General Fund to the Board of Governors of the California Community Colleges for sole use by the office of the Chancellor of the California Community Colleges to enter into a memorandum of understanding with a third-party research institution to conduct a systematic study on online and hybrid instruction at community colleges. In conducting the study, the third-party research institution shall review state and local policies, relevant institutional data, and conduct a study that could shed light on campus-specific activities, instruction, and student engagement, access gaps, and outcomes. The study shall accomplish all of the following:

(1) Analyze current course offerings systemwide or through representative sampling to understand the courses and programs that are currently offered online, in-person, or through a hybrid model, and, to the extent possible, measure the effects of student preference for each modality on college enrollment management strategies.

(2) Perform a literature review and collect current information on student outcomes relating to online education, including synchronous, asynchronous, and hybrid learning models.

(3) Conduct a study that provides strong empirical evidence on the effectiveness of online learning modalities. This study shall have a research design that meets the standards of the Institute of Education Sciences’ What Works Clearinghouse. This research design may include, but is not limited to, a randomized controlled trial, a quasi-experimental method, and a nonexperimental method. The study shall focus on equitable access and completion outcomes for students that determines the causal impact of online education on student outcomes relating to online education for different student populations, such as first-generation college students, students from traditionally underrepresented backgrounds in postsecondary education, returning college students who have taken a break of one or more semesters or the quarterly equivalent, and students with some college credits but no college degree. If possible, the study shall analyze the outcomes by academic disciplines and course level.

(4) Answer the following questions on the nature and value of online and hybrid course offerings at community colleges:

(A) How are quality in-person, online, and hybrid course offerings designed and delivered to promote equitable student access and success?

(B) Is there an optimal mix of online and hybrid course offerings when compared to in-person course offerings in connection with maximizing student completion?

(C) Are there student populations that would not otherwise access postsecondary education were it not for a specific course modality? What are their success rates in the course modalities they can access?

(D) What are current state and local policies that guide and direct the development of online course offerings and services? Should these policies be updated to allow the state to better meet students’ needs and close student equity gaps?

(E) How does the state fund online and hybrid course offerings at community colleges? What are the differences in cost of delivery between synchronous, asynchronous, online, hybrid, and in-person course offerings? How are community college revenues affected as a result of student demand for these types of course offerings?

(F) Do online or hybrid course offerings consistently provide necessary academic supports and basic needs student services? What student services should have online or hybrid course offerings?

(G) Are there best practices for online and hybrid course offerings, with proven results in student success and student equity, that can be taken to scale at community colleges?

(H) Comparing the transferability to the University of California and the California State University of online and hybrid course offerings with their fully in-person counterparts, are there barriers to transfer from the community colleges to the University of California and the California State University based on course modality?

(c) The third-party research institution shall have expertise in the areas of online education and community colleges, a demonstrated attention to issues of equity in its prior research, and experience conducting peer-reviewed quantitative and qualitative research.

(d) On or before March 1, 2025, the third-party research institution shall submit a report to the Legislature that includes its findings from the comprehensive study pursuant to subdivision (b). The report shall be submitted to the Legislature in compliance with Section 9795 of the Government Code.

(e) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.

(f) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made pursuant to subdivision (b) shall be deemed to be “General Fund revenues appropriated for community college districts,” as defined in subdivision (d) of Section 41202 of the Education Code, for the 2022–23 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202 of the Education Code, for the 2022–23 fiscal year.