(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 the University of California to fund capital outlay planning and construction grants using revenue bond funding issued by the University of California for certain projects. Existing law requires General Fund support for certain grants provided to the California Community Colleges to revert to the General Fund and instead be funded with local revenue bonds issued by community college districts, as specified. Existing law requires a community college that has already received an allocation of resources to revert those General Fund resources by June 29, 2024, or upon the enactment of the Budget Act of 2024, whichever is later.
This bill would instead require the University of California to allocate funding for capital outlay planning and construction to finance those projects. The bill would instead require a community college that has already received an allocation of resources to revert those General Fund resources upon the community college's receipt of proceeds derived from amounts borrowed by the State Public Works Board pursuant to any financing program established to support community college affordable student housing projects, or upon the appropriation of funds related to fulfilling the community college's obligation to revert the allocation it received, as specified.
(2) 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 awards under these programs 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% is ineligible for initial and renewal Cal Grant awards at the institution, as specified, with certain exceptions.
Existing law requires the commission to certify by November 1 of each year a qualifying institution's latest 3-year cohort default rate and graduation rate as most recently reported by the United States Department of Education, except for the 2022–23 and 2023–24 academic years. Existing law requires the commission to use the 3-year cohort default rate certified in 2020 for an otherwise qualifying institution.
This bill would require the commission to also use the 3-year cohort default rate certified in 2020 to certify an otherwise qualifying institution for the 2024–25 academic year.
(3) Existing law authorizes the Student Aid Commission to establish an auxiliary organization for the purpose of providing operational and administrative services for the participation by the commission in the Federal Family Education Loan Program, or for other activities approved by the commission and determined by the commission to meet specified requirements. Existing law requires the auxiliary organization to be established and maintained as a nonprofit public benefit corporation and governed by a board of directors nominated and appointed by the commission, and requires it to conduct its operations in conformity with an operating agreement approved annually by the commission.
This bill would repeal the provisions relating to the auxiliary organization.
(4) Existing law requires the Board of Governors of the California Community Colleges to adopt regulations providing for the payment of apportionments to community college districts on a specified schedule.
This bill, notwithstanding the provision referenced above, would adjust the payment of apportionments to community college districts for the 2023–24 fiscal year to defer $446,427,000 of those payments and for the 2024–25 fiscal year to defer $243,693,000 of those payments, to the subsequent fiscal year in accordance with a designated schedule.
(5) The California Constitution creates the Public School System Stabilization Account to provide a reserve for public school funding. Existing law requires, pursuant to specified calculations, the Controller to transfer certain moneys from the General Fund into the Public School System Stabilization Account, for subsequent allocation to school districts and community college districts in fiscal years for which the minimum state funding obligation under Proposition 98 falls below specified levels.
The California Constitution authorizes the Legislature, upon the Governor's proclamation declaring a budget emergency, as described, to enact a statute that, among other things, appropriates funds in the Public School System Stabilization Account for the support of school districts and community college districts.
Existing law establishes the State School Fund, which is continuously appropriated for purposes of providing funding apportionments to school districts and community college districts.
This bill would appropriate $787,651,000 from the Public School System Stabilization Account to be transferred by the Controller to Section B of the State School Fund for the support of community college districts, as provided.
(6) Existing law establishes the Community College Part-Time Faculty Office Hours Program to provide community college students equal access to academic advice and assistance and to encourage community college districts to provide opportunities by compensating part-time faculty who hold office hours related to their teaching load. Existing law authorizes community college districts to compensate part-time faculty at an amount equal to at least one paid office hour for every 2 classes or more taught each week by the part-time faculty member or 40% of a full-time load as defined by the community college district. Existing law establishes the Part-Time Faculty Office Hours Program Fund in the State Treasury and requires the Chancellor of the California Community Colleges to apportion to each community college district that establishes a program an amount of up to 50% of the total costs of the compensation paid for office hours of part-time faculty, as provided. Existing law requires the allocation to any district in a fiscal year to not exceed 50% of the total costs of the compensation paid for those office hours.
This bill, commencing with the 2024–25 fiscal year, would instead require the chancellor to apportion to each community college district up to 90% of the total costs of the compensation paid for office hours of part-time faculty, as provided. The bill would require the allocation to any district in a fiscal year to not exceed 90% of the total costs of the compensation paid for those office hours.
(7) Existing law establishes the California Community Colleges Nursing Faculty Recruitment and Retention Program for purposes of facilitating the recruitment and retention of qualified nursing faculty, among other programs related to nursing education.
This bill would establish, until July 1, 2030, the Rebuilding Nursing Infrastructure Grant Program as a competitive grant program under the administration of the Chancellor of the California Community Colleges. The bill would require funding for this program to be awarded as grants by the chancellor for purposes that include, among other purposes, the development or expansion of associate degree in nursing programs and bachelor of science in nursing partnerships, as specified. The bill would require the chancellor, among other things, to develop an application for the program, as provided, and to make the application for the first round of grants available on or before November 1, 2024, with grants distributed to the first round of recipients on or before July 1, 2025. As a condition of receiving a grant, the bill would require a grant recipient to report certain data and information to the chancellor's office, as specified. The bill would require the chancellor's office to compile and provide a summary of this data and information to the Assembly and Senate Committees on Budget and the Governor, as specified.
(8) Existing law establishes the powers of the State Public Works Board (SPWB) , for the purposes of the State Building Construction Act of 1955, including the authority to lease property as lessor to state agencies, the authority to construct public buildings, the authority to contract with other state agencies for the use of real property owned by the state, and the authority to issue revenue bonds, as provided, to obtain funds to pay the cost of public buildings.
This bill would authorize the Board of Governors of the California Community Colleges, a participating college, as defined, and the SPWB to acquire, design, construct and equip a student housing project, as described, and acquire the site or sites upon which a student housing project is located, as specified. The bill would require the board of governors, a participating college, and the SPWB to enter into an agreement for each student housing project, as specified. The bill would authorize the SPWB to issue revenue bonds, notes, or bond anticipation notes to finance the acquisition, design, and construction of approved student housing projects in the amount of $804,725,000, and would authorize the SPWB and board of governors to borrow funds for project costs from the Pooled Money Investment Account and other appropriate sources. The bill would continuously appropriate the funds derived from borrowing and those revenue bonds, notes, or bond anticipation notes for the purposes described above, thereby making an appropriation. In order to be eligible for financing, the bill would require a participating college to certify to the SPWB that the student housing project is designed or will be designed to include, at a minimum, the number of beds for low-income students, as described, and that the rent for the beds for low-income students will not exceed 30% of 50% of the area median income for a single-room occupancy unit type, as specified.
(9) The Budget Act of 2022 appropriated $6,438,193,000 to the California Community Colleges.
This bill would reduce that appropriation by $1,012,586,000 and defer certain portions of the appropriation to the 2023–24 fiscal year, as specified.
(10) The Budget Act of 2023 appropriated $5,642,269,000 to the California Community Colleges and reverted $201,009,000 that was appropriated to the California State University to the General Fund.
This bill would repeal that reversion, thereby making an appropriation. The bill would reduce the appropriation to the California Community Colleges by $406,784,000 and defer certain portions of the appropriation to the California Community Colleges to the 2024–25 fiscal year, as provided.
(11) Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education. If the federal Free Application for Federal Student Aid is not available on or before October 1, 2023, existing law extends the application deadline for financial aid programs administered by the commission to May 2, 2024, for the 2024–25 award year only. This extension applies to the Middle Class Scholarship Program.
This bill would postpone the May 2, 2024, application deadline for the Middle Class Scholarship Program by 2 months to July 2, 2024.
(12) Certain funds appropriated by 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, as specified.
(13) This bill would state that its provisions are severable.
(14) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Statutes affected:
06/22/24 - Amended Assembly: 17201 EDC, 69432.7 EDC, 87885 EDC
06/28/24 - Enrolled: 17201 EDC, 69432.7 EDC, 87885 EDC
07/02/24 - Chaptered: 17201 EDC, 69432.7 EDC, 87885 EDC