Bill Text: CA AB2076 | 2023-2024 | Regular Session | Amended

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Bill Title: California Student Housing Revolving Loan Fund Act of 2022: state fund loan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-24 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (April 23). Re-referred to Com. on APPR. [AB2076 Detail]

Download: California-2023-AB2076-Amended.html

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Amended  IN  Assembly  March 19, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2076

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Introduced by Assembly Member McCarty

February 05, 2024

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An act to amend Section 78015 of the Education Code, relating to community colleges. An act to add Section 67329.3.5 to the Education Code, relating to postsecondary education, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

AB 2076, as amended, McCarty. Community colleges: job market study. California Student Housing Revolving Loan Fund Act of 2022: state fund loan.

Under existing law, the California Student Housing Revolving Loan Fund Act of 2022, the California School Finance Authority or the California Educational Facilities Authority, as applicable, provide zero-interest loans to qualifying applicants of the University of California, the California State University, and the California Community Colleges for the purpose of constructing affordable student housing and affordable faculty and staff housing, as provided. Existing law establishes the California Student Housing Revolving Loan Fund as a continuously appropriated fund in the State Treasury.

Existing law requires the Pooled Money Investment Board to determine whether moneys on deposit in the State Treasury, exclusive of the General Fund and other specified funds, is not necessary for immediate use and, if so, to determine the amount which is then designated as surplus moneys. Existing law creates the Surplus Money Investment Fund and requires the Controller to transfer surplus moneys to it, provided that moneys from a special fund are not to be transferred if that will interfere with carrying out the purposes that the special fund supports. Existing law requires that moneys in the Surplus Money Investment Fund be invested by the Treasurer as part of the Pooled Money Investment Account. Under existing law, moneys in the Surplus Money Investment Fund are continuously appropriated.

This bill would require the Controller to transfer $200,000,000 to the California Student Housing Revolving Loan Fund from the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund as a cash loan, for purposes of funding, commencing with the 2024–25 fiscal year, the program supported by the California Student Housing Revolving Loan Fund. The bill would require the loan principal and interest to be fully repaid on or before June 30, 2029, as described. By providing that moneys in a continuously appropriated fund may be used for a new purpose, and by depositing new moneys into a continuously appropriated fund, the bill would make an appropriation.

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to provide instruction at the campuses they operate and maintain. Existing law requires the governing board of a community college district, before establishing a vocational or occupational training program, to conduct a job market study of the labor market area, as specified.

This bill would make nonsubstantive changes in the latter provision.

Digest Key

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Section 67329.3.5 is added to the Education Code, immediately after Section 67329.3, to read:

67329.3.5.

 (a) Notwithstanding any other law, the Controller shall, in accordance with this section, transfer two hundred million dollars ($200,000,000) to the California Student Housing Revolving Loan Fund, established by Section 67329.3, from the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund as a cash loan, for purposes of funding, commencing with the 2024–25 fiscal year, the program supported by the California Student Housing Revolving Loan Fund.

(b) The loan principal and interest shall be fully repaid on or before June 30, 2029. The loan may be fully repaid sooner than that date without incurring a penalty.

(c) The interest rate on the loan shall be equal to the Pooled Money Investment Account average monthly effective yield rate, as determined by the Treasurer. The interest shall be repaid from the General Fund.

SECTION 1.Section 78015 of the Education Code is amended to read:

78015.

(a)(1)The governing board of a community college district, before establishing a vocational or occupational training program, shall conduct a job market study of the labor market area, as those terms are defined in Section 52301.5, in which it proposes to establish the program. The study shall use the State-Local Cooperative Labor Market Information Program established in Section 10533 of the Unemployment Insurance Code, or if this program is not available in the labor market area, other available sources of labor market information. The study shall include a California Occupational Information System supply analysis of existing vocational and occupational education or training programs for adults maintained by high schools, community colleges, and private postsecondary educational institutions in the area to ensure that the anticipated employment demand for students in the proposed programs justifies the establishment of the proposed courses of instruction.

(2)The governing board of the community college district shall make copies of each job market study available to the public.

(b)After completing the study required by this section and before establishing the program, the governing board of the community college district shall determine whether the study justifies the proposed vocational education program.

(c)If the governing board of the community college district determines that the job market study justifies the initiation of the proposed program, it shall determine, by resolution, whether the program shall be offered through the district’s own facilities or through a contract with an approved private postsecondary educational institution pursuant to Section 8092.