Senate BillPassed first houseEducation
SB 123: Higher education budget trailer bill.
What SB 123 does, verified December 6, 2025
This bill aims to improve postsecondary education in California by making several changes. It requires the University of California to fund construction grants for student housing projects using revenue bond funding. The bill also aims to increase participation in the California Kids Investment and Development Savings (Kids) program by providing local educational agencies with information about the program and the students' potential eligibility. Additionally, the bill updates the model uniform set of academic standards for high school courses and college-level coursework taken for credit at California public colleges and universities. The bill also modifies the Cal Grant program to use the 3-year cohort default rate certified in 2020 to certify qualifying institutions for the 2025-26 and 2026-27 academic years. Furthermore, the bill extends the availability of grant program funds for t…
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
4Second ChamberCurrent
5GovernorPending
6ChapteredPending
Last action: From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. (2025-06-24)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions10 total · showing 5
| Jun. 24, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| Mar. 24, 2025 | Referred to Com. on BUDGET. |
| Mar. 20, 2025 | Read third time. Passed. (Ayes 28. Noes 10. Page 438.) Ordered to the Assembly. |
| Mar. 20, 2025 | In Assembly. Read first time. Held at Desk. |
| Mar. 18, 2025 | Read second time. Ordered to third reading. |
Latest bill textAmended version, June 24, 2025 · 7,429 words
| Amended IN Assembly June 24, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 123
| Introduced by Committee on Budget and Fiscal Review |
January 23, 2025 |
LEGISLATIVE COUNSEL'S DIGEST
SB 123, as amended, Committee on Budget and Fiscal Review. Budget Act of 2025. Higher education budget trailer bill.
(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 project grants using revenue bond funding issued by the University of California for certain projects.
This bill would require the University of California to fund construction grants for 2 specified student housing projects using revenue bond funding issued by the University of California.
(2) Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board, for the purposes of expanding access to higher education through savings, as provided.
Existing law requires the governing body of a school district, county office of education, or charter school to confirm that a grade 12 pupil who has not opted out, as specified, completes and submits a Free Application for Federal Student Aid (FAFSA) or, if the pupil is exempt from paying nonresident tuition under existing law, completes and submits a form for purposes of the California Dream Act, as provided.
Commencing with the 2025–26 school year, this bill would require the governing body of a local educational agency to provide each pupil and the pupil’s parent or legal guardian with information about the KIDS Program and the pupil’s potential eligibility for that benefit, as provided. By imposing new duties on local educational agencies, the bill would impose a state-mandated local program.
Existing law, for the 2023–24 and 2024–25 fiscal years, requires the Scholarshare Investment Board to partner with the Los Angeles Unified School District and the Riverside County Office of Education to explore ways to increase participation in the KIDS Program. Existing law requires the board, on or before September 30, 2025, and in collaboration with those local educational agencies, to report certain information to the Department of Finance and the Legislature related to those partnerships.
This bill, for the 2025–26 to 2029–30 fiscal years, inclusive, would require the board to partner with the Riverside County Office of Education and the San Diego Unified School District to explore ways to increase participation in the KIDS Program. The bill would require the board, on or before September 30, 2029, in collaboration with those local educational agencies, to submit an additional report with the same information related to those partnerships to the Department of Finance and the Legislature.
(3) Existing law requires the California State University, and requests the University of California, to establish a model uniform set of academic standards for high school courses for admission recognition, as specified, and to develop and implement, by January 1, 2006, a process for high schools to obtain approval of their courses meeting California State University and University of California admissions requirements, as provided.
This bill would instead require the California State University, and request the University of California, to begin working on establishing the above-described model uniform set of academic standards on or after October 1, 2025, and would require the model uniform set of academic standards to also be established for college-level coursework taken for credit at a California public college or university by a pupil simultaneously enrolled in high school, as provided. The bill would require the office of the Chancellor of the California Community Colleges to post on its internet website the model uniform set of academic standards for college-level coursework taken for credit at a California public college or university, as provided.
(4) 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 2024–25 academic year 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 2025–26 and 2026–27 academic years.
Existing law requires each participating institution, as a condition for its voluntary participation in the Cal Grant Program, to annually report to the commission specified information regarding its undergraduate programs. Existing law requires the commission to provide on its internet website the information submitted by a Cal Grant participating institution pursuant to the reporting requirement described above and other information and links that are useful to students and parents who are in the process of selecting a college or university.
This bill would authorize the systemwide central office of a public postsecondary educational institution acting on behalf of the participating institution to annually report to the commission the information regarding the institution’s undergraduate programs, as provided. The bill would modify the data required to be reported to the commission, establish an alternative method for reporting that data, and require the data reported to the commission to be reported in a manner that complies with applicable federal and state laws to protect individual privacy, as specified.
(5) Existing law establishes the Golden State Teacher Grant Program under the administration of the Student Aid Commission. For applications received under the program on July 1, 2024, to June 30, 2025, inclusive, existing law requires the commission to provide one-time grants of up to $10,000 to each student enrolled in a professional preparation program leading to a preliminary teaching credential or a pupil personnel services credential if the student commits to working at a priority school or a California preschool program for 2 years within 4 years following the date the student completes the professional preparation program, as specified.
The bill would extend the availability of those grant program funds to applications received under the program on July 1, 2025, to June 30, 2026, inclusive. By expanding the time in which applications can be received under the program, which is funded by an existing appropriation, the bill would make an appropriation.
(6) Existing law establishes the Hire UP Pilot Program and authorizes, subject to an appropriation, the office of the Chancellor of the California Community Colleges to enter into agreements with up to 10 community college districts to provide funding for stipends to formerly incarcerated individuals, CalWORKs recipients, and former foster youth. Existing law requires the Chancellor of the California Community Colleges to submit an annual report on or before March 1 to the Legislature on the pilot program’s implementation, as provided. Existing law repeals these provisions on January 1, 2029.
This bill would instead make these provisions inoperative on March 15, 2029, and repeal them on January 1, 2030. The bill would require the chancellor to submit an additional report on the pilot program’s implementation on March 1, 2029.
Existing law establishes the Native American Student Support and Success Program under the administration of the chancellor’s office to provide various services for Native American students. Existing law authorizes the chancellor’s office to enter into agreements with up to 20 community colleges to provide grants to those participating colleges for the purpose of developing local Native American student support and success programs and delivering matriculation services for Native American students, as provided. Existing law requires the chancellor’s office to develop and submit an annual report on before September 1 to the Governor and the Legislature based on certain data and information relating to grants provided under the program, as reported by participating community colleges, and information on the use of program funds.
This bill would instead require the chancellor’s office to develop and submit those reports triennially until September 1, 2030, as specified.
(7) 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 2025–26 fiscal year to defer $408,363,000 of those payments to the 2026–27 fiscal year in accordance with a designated schedule. The bill would appropriate that amount to the board of governors for apportionments to community college districts for expenditure in the 2026–27 fiscal year, as specified.
(8) Existing law authorizes the office of the Chancellor of the California Community Colleges to establish the Rising Scholars Network to enter into agreements with up to 65 community colleges to provide additional funds for services in support of postsecondary education for justice-involved students, as defined.
This bill would authorize the chancellor’s office to enter into agreements with all community colleges, rather than up to 65 community colleges.
(9) Existing law requires the Chancellor of the California Community Colleges to establish, by March 31, 2019, an initiative to expand the use of course credit at the California Community Colleges for students with prior learning. Existing law required the chancellor to submit, by January 1, 2020, a report on the initiative to the Legislature.
Existing law establishes the California Cradle-to-Career Data System to be a source for actionable data and research on education, economic, and health outcomes for individuals, families, and communities, and to provide for expanded access to tools and services that support the navigation of the education-to-employment pipeline. Existing law establishes a governing board to govern the data system and the Office of Cradle-to-Career Data as the managing entity required to implement and manage the data system.
This bill would establish the California Career Passport Program to be administered by the office of the Chancellor of the California Community Colleges, in partnership with the Office of Cradle-to-Career Data and the Labor and Workforce Development Agency, for the purpose of developing a Career Passport that provides individuals with a secure digital tool that displays their preparation for employment, academic records, and credit for prior learning, as specified. The bill would require the program to accomplish specified goals, including providing individuals access to their aggregated information for use in applying for employment and in training at no or low cost to them, as specified. The bill would require the chancellor’s office to convene agency and employer representatives to identify technical and policy considerations for building the secure digital tool, and to engage with business and industry leaders collaboratively to ensure Career Passports are useful to, and used by, California’s employers, as specified.
This bill would appropriate $25,000,000 from the General Fund to the board of governors to support the development of the program, as specified. The bill would require the chancellor’s office to develop and report to the Department of Finance and the fiscal committees of the Legislature a timeline establishing target dates for key deliverables for the program, as specified. The bill would require the chancellor’s office to collect data on development metrics for the Career Passport, and submit a preliminary report on that data and a final report on student and employer use data to the Department of Finance and all relevant fiscal and policy committees of the Legislature, as specified.
(10) The California Private Postsecondary Education Act of 2009 provides for student protections and regulatory oversight of private postsecondary institutions in the state. The act is administered by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act establishes the Student Tuition Recovery Fund as a continuously appropriated fund to relieve or mitigate economic loss suffered by a student while enrolled in an institution who, at the time of the student’s enrollment, was a California resident or was enrolled in a California residency program, prepaid tuition, and suffered economic loss, as defined. The act establishes the Office of Student Assistance and Relief within the bureau to, among other things, assist students with submitting Student Tuition Recovery Fund claims to the bureau.
This bill would authorize the bureau to use moneys in the Student Tuition Recovery Fund to cover the costs of Student Tuition Recovery Fund claim administration and positions of the Office of Student Assistance and Relief. By expanding the purposes for which moneys from a continuously appropriated fund may be expended, the bill would make an appropriation.
(11) Existing law imposes a filing fee of $605 to file a notice of appeal in a civil case. Existing law, until January 1, 2025, required that $65 of this fee be deposited into the former California State Law Library Special Account for the support of the California State Law Library.
This bill would reestablish the California State Law Library Special Account and would require, until July 1, 2030, $65 of each notice of appeal fee to be deposited into the California State Law Library Special Account for the support of the California State Law Library upon appropriation. The bill would specify that this requirement is intended to apply retroactively to January 1, 2025.
(12) The Budget Act of 2023 made appropriations for local assistance to the Board of Governors of the California Community Colleges for the 2023–24 fiscal year, including $3,037,990,000 for apportionments.
This bill would amend the Budget Act of 2023 by reducing the appropriation made to the board of governors for apportionments by $67,001,000.
(13) The Budget Act of 2024 made appropriations for local assistance to the board of governors for the 2024–25 fiscal year, including $3,904,892,000 for apportionments.
This bill would amend the Budget Act of 2024 by increasing the appropriation made to the board of governors for apportionments by $10,822,000.
(14) The Budget Act of 2024, among other things, reappropriates $12,000,000 to the board of governors to support the development of e-Transcript California, as provided.
This bill would appropriate $6,558,000 from the General Fund to the board of governors to support the development of e-Transcript California pursuant to that provision.
(15) This bill would appropriate $5,100,000 from the General Fund to the board of governors to provide grants through a community college district to California community-based organizations for financial aid outreach and application assistance supporting current and prospective community college students, as provided.
(16) This bill would appropriate $20,000,000 from the General Fund to the board of governors to support emergency financial assistance grants to students attending a community college, as specified.
(17) Existing law requires the California Community Colleges to designate on each of its campuses a Dreamer Resource Liaison to assist students in meeting certain requirements to be exempt from paying nonresident tuition by streamlining access to all available financial aid and academic opportunities for those students.
This bill would appropriate $15,000,000 from the General Fund to the board of governors to support Dreamer Resource Liaisons in assisting students, as described above.
(18) The Budget Act of 2022, among other things, appropriates $10,000,000 to the board of governors to support the California Healthy School Food Pathway program, as provided.
This bill would appropriate $10,000,000 from the General Fund to the board of Governors to support the California Healthy School Food Pathway program.
(19) This bill would appropriate $10,000,000 from the General Fund to the board of governors for transfer to a community college for allocation to the California Firefighter Joint Apprenticeship Council to conduct Emergency Medical Technician and Paramedic Preapprenticeship Training Academies.
(20) This bill would appropriate $125,000 from the General Fund to the board of governors for allocation on a one-time basis to Santa Rosa Junior College for the construction of a fire academy tower.
(21) Existing law requires the Chancellor of the California Community Colleges to establish, by March 31, 2019, an initiative to expand the use of course credit at the California Community Colleges for students with prior learning. Existing law required the chancellor to submit, by January 1, 2020, a report on the initiative to the Legislature.
This bill would appropriate up to $15,000,000 from the General Fund to the board of governors to support the Credit for Prior Learning Initiative, a systemwide initiative to award degree-applicable or certificate-applicable credit for prior learning opportunities at each campus, as provided.
(22) This bill would appropriate $60,000,000 from the General Fund to the board of governors to establish the Student Support Block Grant. The bill would require the office of the Chancellor of the California Community Colleges to allocate the funds to community colleges pursuant to a specified formula. The bill would authorize community college districts to use the allocated funds for certain purposes, including, among other purposes, for assistance to students with food, housing, transportation, and other basic needs.
(23) This bill would appropriate $5,000,000 from the General Fund to the board of governors for allocation to community colleges that are members of the Los Angeles Regional Consortium to assist with workforce recovery efforts and career technical education workforce development associated with the Los Angeles regions’ recovery from the Palisades and Eaton fires.
(24) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(25) The 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.
(26) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.
The people of the State of California do enact as follows:
SECTION 1.
Section 17201 of the Education Code is amended to read: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 Act 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 appropriated 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 construction grants using revenue bond funding issued by the University of California for both of the following projects:
(i) Forty-three million dollars ($43,000,000) for allocation to the University of California, Davis, for the Segundo Infill Student Housing project.
(ii) Forty-three million dollars ($43,000,000) for allocation to the University of California, Santa Barbara, for the East Campus Student Housing project.
(B)
(C)
In addition to the funding for projects pursuant to subparagraph (A) for the University of California, the University of California shall allocate funding for capital outlay planning and construction to finance 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)
(D)
(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)
(E)
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 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 pursuant to Chapters 54 and 572 of the Statutes of 2022.
(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 community college affordable student housing projects that have been approved pursuant to this section.
Text of SB 123 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions