Legal Update
California Community Colleges
Office of the General Counsel
legalaffairs@cccco.edu
(916) 445-4826
February 2013
This Legal Update focuses on new legislation which was enacted in 2012. Unless otherwise
stated, all legislation took effect on January 1, 2013.
ACADEMIC AFFAIRS
Textbook Costs (SB 1052-Steinberg)
This bill amended Education Code sections 67302 and 67302.5 and added section 66409.
To address concerns about the skyrocketing costs of college textbooks, this bill created the
California Open Education Resources Council. The Council is composed of nine members, three
of which are from community college faculty. The Council is charged with developing a list of 50
lower division courses for which digital open source text books and related material shall be
developed and/or acquired. The Council is also charged with developing a request for proposal
process in 2013 in which faculty, publishers, and other interested parties may apply for funds to
develop open source textbooks. The textbooks developed must comply with specified
requirements. Amendments to existing laws regarding textbooks contemplate lodging the open
source text books with the California Open Source Digital Library.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_10511100/sb_1052_bill_20120927_chaptered.pdf.
California Digital Open Source Library (SB 1053-Steinberg)
This bill added Education Code section 66408.
This bill is a companion bill to Senate Bill No. 1052, and creates the California Open Source
Digital Library to serve as a statewide repository for open source textbooks and to provide an
Internet Web-based way for students, faculty and staff to find, adopt, utilize, and/or modify
course materials for little or no cost. This bill is dependent upon funding in the annual Budget
Act to be operative. California State University, in coordination with community colleges, will
operate the Open Source Digital Library. This bill affirms that it in no way mandates faculty use
a particular textbook or related material. Materials shall bear a creative commons attribution
license.
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For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_10511100/sb_1053_bill_20120927_chaptered.pdf
Textbook Publishers (SB 1539-Corbett)
This bill added Education Code section 66407.
Textbook publishers must provide potential purchasers of a textbook (i.e., faculty members
who select textbooks assigned to students) the following data at the beginning of a sales
interaction (regardless of how that interaction takes place):
1) a list of products available for purchase that are germane to the subject area,
2) the wholesale price of those products and the amount of time the publisher intends to
have those products available, and
3) for all new editions of the products available for purchase, the differences in content
from the original version.
A publisher must publish this information in a prominent place on its website. This law also
expands the definition of textbook products to include materials in digital or electronic formats.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1501-
1550/sb_1539_bill_20120717_chaptered.pdf.
Academic Credit for Military Experience (AB 2462-Block)
This bill added Education Code section 66025.7.
The Chancellor of the California Community Colleges is required to determine, by July 1, 2015,
courses for which credit should be awarded for prior military experience. In doing so, the
Chancellor must use common course descriptors and recommendations made by the American
Council on Education.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_24512500/ab_2462_bill_20120920_chaptered.pdf.
STUDENT SERVICES
Private Student Loans (SB 1289-Corbett)
This bill added Education Code sections 69800 through 69801.
Community colleges are requested to advise students on-line and in printed materials that
federal loans are available regardless of income and have a variety of flexible repayment
options. Colleges are further requested to distinguish between federal and private loans by
making specified disclosures regarding private loans in the institution’s award package. Further,
if the college provides a loan lender list, it is requested to provide information about the
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lender’s loans and the basis for its inclusion of the lender on the list. The college is requested to
advise the student that notwithstanding the list, he or she can choose any lender. None of
these provisions are mandatory.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_12511300/sb_1289_bill_20120927_chaptered.pdf.
Student Success and Support Program (SB 1456-Lowenthal)
This bill amended sections 76300, 78210, 78211, 78211.5, 78212, 78213, 78214, 78215, 78216,
and 78218, and repealed section 78212.5.
These amendments are the first step in the implementation of Student Success Task Force
recommendations 2.2 (mandated services), 3.2 (BOG Fee Waiver conditions), and 8.2 (Student
Support Initiative). This bill provides a policy framework that targets funding to the core
matriculation services of orientation, assessment, counseling and advising, and development of
education plans. The bill re-names the Matriculation program as the Student Success and
Support Program. Students qualifying for a BOG fee waiver must meet minimum academic and
progress standards adopted by the BOG to be eligible for, or to retain eligibility for, BOG fee
waivers.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_14511500/sb_1456_bill_20120927_chaptered.pdf.
Foster Care Service (AB 1856-Ammiano)
This bill amended Health and Safety Code sections 1522.41 and 1529.2 and amended Welfare
and Institutions Code sections 16001.9 and 16003.
Health and Safety Code section 15522.41, subd. (c)(1)(I), was amended to require that
community college districts offering a foster care education program provide instruction to
administrators of group home facilities, licensed foster parents, and specified family members
of the administrator about “cultural competency and sensitivity relating to, and best practices
for, providing adequate care to lesbian, gay, bisexual, and transgender (LGBT) youth in out-ofhome care.”
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_18511900/ab_1856_bill_20120927_chaptered.pdf.
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Nonresident tuition exceptions - Victims of human trafficking (AB 1899-Mitchell)
This bill added Education Code sections 68122, 69504.5, and 76301.
Education Code section 68130.5 allows students, other than nonimmigrant aliens who meet
specific requirements, to be exempt from paying nonresident tuition at the California State
University and the California Community Colleges (AB 540 Nonresident Tuition Fee Exemption).
Under existing law, as nonimmigrant aliens, students with a “T” or “U” visa are ineligible from
gaining this exemption through Education Code section 68130.5. Assembly Bill 1899 added
Education Code section 68122, which grants students who have a “T” or “U” visa, eligibility for
exemption to nonresident tuition if they meet all other necessary requirements prescribed in
Education Code section 68130.5. “T” and “U” visa students that do not meet the necessary
requirements prescribed in Education Code section 68130.5 continue to be subject to the basic
physical presence and intent requirements to establish California residence for tuition purposes
consistent with Education Code section 68017. This law also allows these nonimmigrant
students to apply for, and participate in, all student financial aid programs and scholarships to
the same extent that as other students who have been granted refugee status (i.e., eligibility to
apply based on meeting the 68130.5 eligibility requirements, or based on establishing California
residency for tuition purposes consistent with Education Code section 68017).
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_1851-
1900/ab_1899_bill_20120924_chaptered.pdf
Priority Registration - Military (AB 2133-Blumenfield)
This bill amended Education Code section 66025.8.
Current law allows California residents who were in the military to receive priority registration
for up to four academic years after leaving state or federal active duty if the college they attend
administers a priority registration system. These amendments extend the period of time in
which a student meeting the specified requirements can use his or her four academic years of
priority enrollment to fifteen years after leaving state or federal active duty. Students receiving
priority enrollment have to comply with specified matriculation requirements. The priority
enrollment applies to all degree and certificate programs offered by the college. This law is
called the Combat to College Act of 2012.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_21012150/ab_2133_bill_20120920_chaptered.pdf.
Residency Status - Military (AB 2478-Hayashi)
This bill amended Education Code section 68075.5.
Existing law allows students who were in the military and stationed in California to be
considered a California resident for purposes of determining the amount of tuition and fees to
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be paid by the student. Changes to this statute no longer allow the student to be classified as a
California resident, but provide the student an exemption from paying the nonresident tuition
fee if he or she was stationed in California on active duty for more than one year prior to being
discharged and files an affidavit with the college stating his or her intent to become a California
resident. This exemption can only be used within two years of being discharged and does not
apply to students who received a bad conduct or dishonorable discharge.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_24512500/ab_2478_bill_20120920_chaptered.pdf.
Budget / Finance / Facilities
Best Value Procurement (SB 1280-Pavley)
This bill added and repealed Public Contract Code sections 10507.8 and 20651.7.
Senate Bill 1280 allows community college districts (as well as the University of California) to
utilize best value procurement methods until January 1, 2018, for the purchase of supplies and
materials that exceeds $50,000 if the district determines that it can expect long-term savings
through the use of objective performance criteria other than price. Districts will be required to
report to the Chancellor’s Office on their usage of this new provision. Currently, districts are
only allowed to use the traditional competitive bidding method. SB 1280 allows districts to
consider factors such as life-cycle costs, servicing costs, durability, and factors other than price.
For example, purchasing energy efficient light bulbs may be more expensive to purchase but
the savings are realized in lower energy costs over time.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_12511300/sb_1280_bill_20120928_chaptered.pdf.
Design-Build Contracts (SB 1509-Simitian)
This bill amended Education Code sections 17250.10, 17250.25, 81700, and 81703, amended
Section 4 of Chapter 421 of the Statutes of 2001, and amended Section 4 of Chapter 637 of the
Statutes of 2002, relating to school facilities.
Construction contracts are often awarded to the lowest cost, responsible bidder. On the other
hand, public agencies may release bids on engineering and architecture and make a selection
based on the quality of the proposal. The design-build process allows the community college
district to bid on the project’s design and construction together, and accept bids based on
quality with cost as a consideration. Senate Bill 1509 extends the sunset date for using designbuild contracts from January 1, 2014, to January 1, 2020.
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For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_15011550/sb_1509_bill_20120928_chaptered.pdf.
Fair Market Value of Leases (AB 1748-Fong)
This bill amended Education Code section 81378.1.
Existing law authorizes the governing board of a community college district to let specified
property not needed for academic activities, and prohibits the fair market value of that lease
from exceeding $25,000 per year, as certified by the governing board. This bill removes the
requirement that the lease not exceed $25,000 per year.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_17011750/ab_1748_bill_20120710_chaptered.pdf.
Local Education Facility Bonds (AB 794-Wieckowski)
This bill amended Education Code 15150.
Assembly Bill 794 amends how principal and interest on bonds are paid. This bill authorizes the
interest on the notes to be paid from a property tax levied for that purpose if various conditions
are met.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_07510800/ab_794_bill_20120928_chaptered.pdf
School Attendance: Early College High School (SB 1316-Hancock)
This bill amended Education Code section 46141 and added section 46146.5.
Senate Bill 1316 would allow Early College High Schools to receive full ADA for 180 minutes as a
minimum school day attendance requirement. It also allows Early College High School 11th and
12th grade students enrolled part-time in classes at the California State University or the
University of California to be exempt from the 240 minute minimum school day requirement
and instead meet a 180 minute minimum school day. Community College Early College High
School students currently are required to meet the 180 minute minimum school day
requirement, but schools are only funded at 75 percent of their ADA for students subject to the
180 minute minimum school day requirement.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_13011350/sb_1316_bill_20120709_chaptered.pdf.
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School Property: Civic Center Act (SB 1404-Hancock)
This bill amended Education Code section 38134.
Existing law, known as the Civic Center Act, authorizes a school district governing board to grant
the use of school facilities or grounds as a civic center, for specified purposes, upon terms and
conditions deemed proper by the governing board. Existing law authorizes a school district
governing board to charge a fee, not to exceed the school district’s direct costs, as defined, for
use of the school facilities or grounds by entities that promote youth and school activities or
that arrange for and supervise sports league activities for youths.
Senate Bill 1404, until January 1, 2020, would expand the definition of direct costs that a school
district governing board may charge an entity for the use of school facilities or grounds to
include a specified share of the operating and maintenance costs proportional to the entity’s
use of the school facilities or grounds under this provision, and a share of the costs for
maintenance, repair, restoration, and refurbishment of the school facilities or grounds
proportional to that entity’s use of school facilities or grounds, as specified.
Senate Bill 1404 requires the Superintendent of Public Instruction to develop, and the State
Board of Education to adopt, regulations to be used by a school district in determining the
proportionate share and the specific allowable costs that a school district may include as direct
costs for the use of its school facilities or grounds.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_14011450/sb_1404_bill_20120929_chaptered.pdf
CAREER TECHNICAL EDUCATION AND WORKFORCE PREPARATION
California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction
Fund (AB 1532-J. Perez)
This bill amended Government Code section 12894, and added Chapter 4.1 (commencing with
section 39710) to part 2 of division 26 of the Health and Safety Code.
Assembly Bill 1532 creates the Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act to establish procedures for the investment of revenues derived
from the auction of greenhouse gas allowances from the cap and trade program adopted by the
Air Resources Board under the California Global Warming Solutions Act of 2006, also known as
AB 32 (Nuñez and Pavley). AB 1532 sets guidelines and procedures for the Air Resources Board
for the distribution of these funds. Community colleges are expected to be eligible to compete
for these monies that will be created after the auction.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_15011550/ab_1532_bill_20120930_chaptered.pdf.
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Community Colleges Economic and Workforce Development (SB 1070-Steinberg)
This bill added and repealed part 52 (commencing with section 88530) of division 7 of title 3 of
the Education Code.
Senate Bill 1070 refocuses and reauthorizes SB 70 (Scott) from 2005 that provided grants for
career technical education partnerships with K-12 districts. SB 1133 (Torlakson, 2006) which
established the Quality in Education and Investment Act, provides funding for SB 70 projects
through 2013-14. The author’s intent is to delineate program goals, provide guidance grants
that will have priority, strengthen accountability, and expand legislative oversight. The BOG is
the co-sponsor of SB 1070 with the California Department of Education.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_10511100/sb_1070_bill_20120921_chaptered.pdf.
California Community Colleges Economic and Workforce Development Program
(SB 1402-Lieu)
This bill added and repealed part 52.5 (commencing with section 88600) of division 7 of title 3
of the Education Code.
Senate Bill 1402, one of the BOG’s sponsored bills, reauthorizes the California Community
Colleges Economic Workforce Development program. The California Community Colleges
Association for Occupational Education is a co-sponsor of the bill.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_14011450/sb_1402_bill_20120917_chaptered.pdf.
HUMAN RESOURCES
Teachers Retirement: Part Time Faculty Service Credit (SB 114-Yee)
This bill amended, repealed, and added Education Code section 22138.5.
Beginning July 1, 2013, SB 114 requires community college districts to submit collective
bargaining agreements or employment agreements for part-time instructors to the California
State Teachers' Retirement System (CalSTRS) to help ensure accurate reporting of hours worked
by part-time faculty for service credit.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_01010150/sb_114_bill_20120930_chaptered.pdf.
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State Teachers’ Retirement: Post-Retirement Employment (AB 178-Gorell)
This bill amended Education Code sections 24204, 24208, and 24214 relating to state teachers’
retirement, and declaring the urgency thereof to take effect on July 17, 2012.
Existing law limited the post-retirement earnings of an employee in STRS and limited the ability
of a retired employee to reinstate. The law also provided exceptions to both of these provisions
in certain cases, such as when a school or college district is in academic or financial distress and
needs quick expertise to address these urgent matters. These exemptions expired on June 30,
2012. AB 178 extends the sunset date for the exemptions from the earnings limitation until
June 30, 2013 (amended by AB 340).
Although post-retirement earnings have been curtailed, a special exception was created for
situations when a community college district experiences severe financial or academic
hardships. In such cases, the Board of Governors may appoint a special trustee or administrator
to provide oversight. With ongoing budget challenges, more college districts may find
themselves in fiscal distress.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_01510200/ab_178_bill_20120717_chaptered.pdf.
Public Employees Retirement (AB 340-Furutani)
This bill amended Education Code sections 24214 and 24214.5, added sections 22119.3,
22164.5, 24202.6, 24202.7, and 24202.8, amended sections 9355.4, 9355.41, 9355.45, 20281.5,
20516, 21076, and 31461, amended and renumbered section 1243, added sections 20516.5,
20677.96, 20683.2, 20791, 21076.5, 31542, 31542.5, 31543, 31631, and 31631.5, added article
4 (commencing with section 7522) to chapter 21 of division 7 of title 1 of, added and repealed
sections 7522.66 and 21400, relating to public employees’ retirement, and making an
appropriation therefor.
AB 340 enacts major revisions to the public retirement system. AB 340 is a complex measure
that requires a thorough review and analysis. Below are highlights of the bill:
 Establishes a cap on the amount of compensation that can be used to calculate a
retirement benefit for new members.
 Prohibits the purchase of service credit for all members.
 Requires employees to pay at least 50% of total employer/employee contribution for
new members.
 Reduces the retirement formulas for new employees.
 Revises the method of calculating final compensation for new employees.
 Increases the waiting period for post-retirement employment for all employees.
 Forfeits pensions for felony convictions within the scope of employment for all
employees.
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In addition, AB 340 amends the recently enacted pension reform bill (AB 178) to specify the
conditions under which retired employees are able to return to work in a district. Specifically,
AB 340 changes AB 178 in the following ways:
 Extends the CalSTRS earning exemption in AB 178 from June 30, 2013 to June 30, 2014.
 Changes the positions eligible for the CalSTRS exemption by removing administrator,
and adding fiscal expert, receiver, or special trustee.
 Clarifies that the earnings limit exemption will not apply if the retiree was in a
retirement incentive program within the last six months or if the need for the
exemption is based upon the retired member having retired from the position that is
vacant.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_03010350/ab_340_bill_20120912_chaptered.pdf.
Public School Employee Organizations: Unelected Members: Paid Leaves of
Absence (AB 1203-Mendoza)
This bill amended Education Code sections 45210 and 88210.
Existing law requires that the governing board of a community college district grant to any
classified employee, upon request, a paid leave of absence to enable the employee to serve as
an elected officer of any community college district public employee organization, as specified.
Existing law requires that following the community college district’s payment of the employee
for the leave of absence, it be reimbursed by the employee organization of which the employee
is an elected officer for all compensation paid to the employee on account of the leave.
This bill expands these provisions to additionally require a community college district to provide
a paid leave of absence to a classified employee who is an unelected member of a community
college district public employee organization for activities the member is authorized by the
organization to attend. It would require the employee organization to reimburse the
community college district on behalf of an unelected member who receives a paid leave of
absence.
The bill additionally requires an employee organization to provide reasonable notification to
the employer requesting a leave of absence without loss of compensation for any of the abovedescribed activities.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_12011250/ab_1203_bill_20120930_chaptered.pdf.
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Classified Employees: Notice of Layoff (AB 1908-Alejo)
This bill amended Education Code sections 45117 and 88017.
Under existing law, classified employees of community college districts subject to layoff as a
result of the expiration of a specially funded program at the end of a school year are required
to be given written notice on or before April 29 informing them of certain rights. Existing law
also requires that notice be given not less than 45 days before the effective layoff date if the
termination date of a specially funded program is other than June 30, or if classified employees
are subject to layoff as a result of a bona fide reduction or elimination of a service performed
by a department.
This bill requires that written notice be given to a classified employee of a community college
district subject to layoff not less than 60 days before the effective layoff date if the termination
date of a specially funded program is other than June 30, or if a classified employee is subject to
layoff as a result of a bona fide reduction or elimination of a service performed by a
department. To the extent that this bill would impose new duties on community college
districts, it would impose a state-mandated local program.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_19011950/ab_1908_bill_20120930_chaptered.pdf.
School Employees: Reemployment (AB 2307-Butler)
This bill amended Education Code sections 45298 and 88117.
Existing law requires that persons laid off because of lack of work or lack of funds in a
community college district that has adopted the merit system be eligible for reemployment for
a period of 39 months, as specified.
This bill requires a person who is reemployed in a new position and fails to complete the
probationary period in the new position, be returned to the reemployment list for the
remainder of the 39-month period, as specified. The bill also makes nonsubstantive changes to
these provisions.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_23012350/ab_2307_bill_20120926_chaptered.pdf.
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CAMPUS SAFETY
Dangerous Students - Enrollment Limitations (AB 2171-Fong)
This bill added Education Code section 76038.
Current law requires that community colleges admit all California residents. This law provides
colleges the option of denying enrollment or permitting conditional enrollment of residents
who are undergoing expulsion procedures, or have been expelled from a community college
during the preceding five years for specified serious offenses. Before denying enrollment or
permitting conditional enrollment, the college must first hold a hearing to determine whether
the applicant poses a continuing danger to the physical safety of the students and employees of
the district. The statute allows community colleges to request this information from other
community colleges to determine if the applicant poses a physical danger to the safety of
others. In developing procedures pursuant to Education Code section 76038, districts should
consult with their legal counsel to ensure compliance with federal and state laws governing
student privacy. (20 U.S.C. § 1232(g), Ed. Code, § 76240 et seq.)
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_21512200/ab_2171_bill_20120921_chaptered.pdf.
Child Abuse Reporting: Mandated Reporters (SB 1264-Vargas)
This bill amended Penal Code sections 11165.7 and 11166.5, and amended Welfare and
Institutions Code section 355.
Senate Bill 1264 adds any athletic coach, assistant coach and graduate assistant involved in
coaching to the list of individuals who are mandated reporters of child abuse at a public or
private postsecondary institution.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_12511300/sb_1264_bill_20120924_chaptered.pdf.
Child Abuse Reporting: Mandated Reporters (AB 1434-Feuer)
This bill amended Penal Code section 11165.7.
Assembly Bill 1434 adds employees and administrators of a public or private postsecondary
institution, whose duties bring the administrator or employee into contact with children on a
regular basis or who supervises those whose duties bring the administrator or employee into
contact with children on a regular basis, as to child abuse or neglect occurring on that
institution’s premises or at an official activity of, or program conducted by, the institution, to
the list of individuals who are mandated reporters.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_14011450/ab_1434_bill_20120924_chaptered.pdf.
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PRIVACY
Social Media Privacy (SB 1349-Yee)
This bill added Education Code sections 99120 through 99122.
This law prohibits public and private postsecondary educational institutions, and their
employees and representatives, from requiring or requesting a student, prospective student, or
student group to disclose their social media user name or password, or require the student to
show the college the content of their social media. For purposes of this law, social media is an
electronic service or account, or electronic content, including, videos or still photographs, blogs,
video blogs, podcasts, instant and text messages, email, online services or accounts, or Internet
Web site profiles or locations. An institution’s right to investigate student misconduct and take
action against a student is not changed by this law, as long as the investigation and resulting
action is otherwise lawful.
.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_13011350/sb_1349_bill_20120927_chaptered.pdf.
Board of Governors of the California Community Colleges
Broadcast of Live Meetings (AB 1723-Fuentes)
This bill amended Education Code section 66020.5.
Assembly bill 1723 requires the Board of Governors of the California Community Colleges, the
Trustees of the California State University, and the Student Aid Commission to provide for live
video transmissions of all meetings, and to archive and post the video and audio transmissions
on the entity’s Internet Web site for at least 12 months and within 48 hours following the initial
transmission.
For the text of this bill, please see: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_17011750/ab_1723_bill_20120926_chaptered.pdf.
Federal Law
The House and Senate agree to extend the 3.4 percent interest rate for Stafford
loans
The House and Senate agreed to extend the current interest rate of 3.4 percent for new
federally subsidized Stafford loans for an additional year and President Obama signed the
measure into law. If Congress was unable to get an extension, rates were set to double on July
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1 for 7.4 million student borrowers. The extension is part of a larger two year reauthorization of
federal highway, transit and other surface transportation programs.
These changes were largely supported by the business community. An additional offset comes
from a change in in-school interest subsidies for some borrowers. Beginning July 1, 2013, new
borrowers will be limited in the amount of time they can receive an in-school interest subsidy.
Students will lose eligibility for the subsidy once they have reached 150 percent of the
published length of their education program. Originally, the Senate Higher Education FY 2013
Appropriations Bill used this offset to decrease the projected Pell Grant shortfall for FY 2014.
With the passage of the student loan bill, Congress can no longer utilize the offset going
forward.
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