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<ns0:Id>20250AB__153497AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-01-05</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-05</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1534</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Irwin</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Irwin</ns0:Name>
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<ns0:Title> An act to add Article 17 (commencing with Section 69870) to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, relating to student financial aid, and declaring the urgency thereof, to take effect immediately.</ns0:Title>
<ns0:RelatingClause>student financial aid, and declaring the urgency thereof, to take effect immediately</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Student financial aid: federal Workforce Pell Grant program.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Beginning on July 1, 2026, for the financial aid award year of 2026–27 and each award year thereafter, existing federal law establishes the federal Workforce Pell Grant program to award grants to eligible students who are enrolled, or accepted for enrollment, in a short-term educational program that, among other things, provides an education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations, as provided.</html:p>
<html:p>Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California.</html:p>
<html:p>This bill, beginning on July 1, 2026, would prohibit a campus of the University of California, the California State University, or
the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance from disbursing federal Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and advertising, marketing, or informing students about the availability of those funds unless the institution has (1) obtained authorization from the Governor that the institution meets the requirements of the federal Workforce Pell Grant program, and (2) obtained approvals and met all requirements set forth by the United States Department of Education. The bill would require a postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the federal Workforce Pell Grant program to provide to the Governor, among other things, certification with any applicable verification required by the Governor that is sufficient to demonstrate that for each
federal aid award year, the short-term program meets specified criteria related to its short-term program, as provided.</html:p>
<html:p>This bill would prohibit the Governor from authorizing a postsecondary educational institution to receive federal Workforce Pell Grant program funds for a short-term program unless, among other things, the Governor determines that the short-term program meets the requirements of the above-described federal provisions and the Governor consults with the Labor and Workforce Development Agency and an advisory board, which the bill would establish. The bill would require a postsecondary educational institution to ensure that any confidential student information collected for purposes of the bill is only disclosed to the Governor or relevant state entities. The bill would authorize the Labor and Workforce Development Agency to adopt rules and regulations to implement the bill as it deems necessary.</html:p>
<html:p>Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.</html:p>
<html:p>This bill would make legislative findings to that effect.</html:p>
<html:p>This bill would declare that it is to take effect immediately as an urgency statute.</html:p>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>YES</ns0:Urgency>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_8BE7992D-9A93-4CF5-99ED-43337E6D9D0A">
<ns0:Num>SECTION 1.</ns0:Num>
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Article 17 (commencing with Section 69870) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_051BA3D7-21B0-44BF-B783-C6FBE95D578F" type="ARTICLE">
<ns0:Num>17.</ns0:Num>
<ns0:LawHeadingVersion id="id_3E445BE6-A870-4FCC-855F-F4C423BBB045">
<ns0:LawHeadingText>Federal Workforce Pell Grant Program</ns0:LawHeadingText>
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<ns0:LawSection id="id_20784B37-E237-465F-99F3-F592D8C3730F">
<ns0:Num>69870.</ns0:Num>
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<ns0:Content>
<html:p>For purposes of this article, the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Advisory board” means the California Workforce Pell Grant Advisory Board established pursuant to Section 69873.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Postsecondary educational institution” means a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution, or an independent institution of higher education that receives state financial assistance.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Short-term program” means an educational program offered by a postsecondary
educational institution that includes 150 to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Workforce Pell Grant program” means the federal program established pursuant to the One Big Beautiful Bill Act (Public Law 119-21), under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a
postsecondary educational institution.
</html:p>
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<ns0:LawSection id="id_7FE82CB9-998E-4D58-8FBE-A24D1E33FD49">
<ns0:Num>69871.</ns0:Num>
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<ns0:Content>
<html:p>A postsecondary educational institution with or without a physical presence in the state shall not disburse Workforce Pell Grant program funds to students enrolled in the institution’s short-term programs, and shall not advertise, market, or inform students about the availability of those funds unless the institution has met both of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Obtained authorization from the
Governor pursuant to this article.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Obtained approvals and met all requirements set forth by the United States Department of Education.
</html:p>
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<ns0:LawSection id="id_7A06ED58-8576-46C5-9080-E51C1B1EA47C">
<ns0:Num>69872.</ns0:Num>
<ns0:LawSectionVersion id="id_9296C870-5AB2-413A-B12B-D7899ACA2031">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Governor shall determine whether a postsecondary educational institution’s short-term program meets the requirements established pursuant to this article. The Governor may consult with relevant entities to make that determination.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A postsecondary educational institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall provide all of the following to the Governor:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Documentation that the short-term program meets all
of the following requirements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Provides an education aligned with the requirements of a high-skill, high-wage occupation as identified by the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (Public Law 109-270) or aligned with the requirements of an in-demand industry or occupation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The hiring requirements of employers in the sectors or occupations identified pursuant to subparagraph (A).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards
students with the credential upon completion of the short-term program.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Prepares students to pursue one or more certificates or degrees at the postsecondary educational institution by ensuring that upon completion of the short-term program and enrollment in a related certificate or degree program, a student will receive academic credit that the institution will accept toward that certificate or degree and that the academic credit will be accepted toward meeting the certificate or degree program requirements.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Certification with any applicable verification required by the Governor that is sufficient to demonstrate that for each federal aid award year, the short-term program meets all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A
completion rate of at least 70 percent, within 150 percent of the normal time for completion of the program, verified by an independent auditor.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A job placement rate of at least 70 percent, measured within 180 days after completion of the program, verified in a manner determined by the Governor.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For the 12 months preceding the date that the postsecondary educational institution applied for approval, the institution offered the short-term program and the short-term program met the requirements of subparagraphs (A) to (D), inclusive, of paragraph (1).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Data requested by the Governor
related to the short-term program, which shall include, but not be limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Program-level data, including all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The name of the short-term program.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The Classification of Instructional Programs code and title.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
For a postsecondary educational institution with a physical presence in the state, the total number of students that enrolled in the short-term program during the previously
completed federal financial aid award year, the students’ state of residence, and the number of those students that completed the short-term program.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For a postsecondary educational institution without a physical presence in the state, the total number of students living in the state that enrolled in the short-term program during the previously completed federal financial aid award year and the number of those students that completed the short-term program.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The total cost of attendance, including tuition and fees, and the average cost of the short-term program.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Any information requested by the Governor that will enable the Governor to calculate the median earnings and percentage of
graduates who are employed.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
The number of students who completed the short-term program that are employed in a position related to the short-term program and a list of the positions and employers that are considered to be in the program’s field of study, if available.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Student-level data, as determined by the Governor, including, but not limited to, both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Demographic information, including student identifiers, names, dates of birth, and race or ethnicity.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Financial aid information, including dependency status, family income, aid amounts, including federal, state, and institutional aid, Pell Grant status, net cost, tuition, and
fees.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The Governor shall not authorize a postsecondary educational institution to receive Workforce Pell Grant program funds for a short-term program unless all of the following have been met:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Governor determines that the short-term program meets the requirements set forth in Section 83002(b) of the One Big Beautiful Bill Act, or in any applicable federal or state law or regulation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Governor has consulted with the Labor and Workforce Development Agency and the advisory board.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The postsecondary educational institution has met the requirements of subdivision (b).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The postsecondary educational institution does not do any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Partner, affiliate, contract, or use any institution, company, or service provider to offer instruction for the short-term program that is not accredited by an accrediting agency recognized and approved by the United States Department of Education.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Offer or affiliate with any company that offers financing for the short-term program using a private educational loan, including an income share agreement or a similar type of credit product, other than loans or payment plans that charge no interest to a student.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Charge tuition and fees to a student for the short-term program that is more than the maximum amount of Workforce Pell
Grant funds available for a student in the short-term program, as determined by the Secretary of the United States Department of Education, for the period of time that the program is offered.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The postsecondary educational institution is accredited by an accrediting agency recognized and approved by the United States Department of Education and that reviews and provides approval for short-term programs.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The short-term program is offered using only credit-bearing courses that are reviewed by the postsecondary educational institution’s accrediting agency.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Governor shall revoke the approval of a postsecondary educational institution related to the Workforce Pell Grant program if either of the following
occurs:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The postsecondary educational institution fails to annually meet the requirements of subdivision (b).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The postsecondary educational institution is determined by a court to have engaged in unlawful, unfair, or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements related to the short-term program.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The Governor may enter into a data-sharing agreement with the Labor and Workforce Development Agency to match program and student data in order to obtain any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Standard Occupational Classification codes and titles.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
North American Industry Classification System codes and titles.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Preenrollment and postenrollment employment status and employer.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Preenrollment and postenrollment earnings data.
</html:p>
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<ns0:LawSection id="id_A6E43546-BD78-4A1C-94FC-A9EAC9620BB1">
<ns0:Num>69873.</ns0:Num>
<ns0:LawSectionVersion id="id_29249693-6168-4F2D-B0E1-F14F05A8F8E8">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The California Workforce Pell Grant Advisory Board is hereby established for purposes of reviewing short-term programs that may be eligible for Workforce Pell Grant funds and recommending to postsecondary educational institutions, or the Governor, necessary processes and policies, including, but not limited to, data collecting and reporting, program approval and denials, managing student transitions when programs are deemed ineligible for funding, and designating an entity to manage student complaints.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The advisory board shall consist of all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A representative from the
Labor and Workforce Development Agency.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A representative from the California Workforce Development Board.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A representative from the Employment Training Panel.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A representative from the Employment Development Department.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A representative from the Division of Apprenticeship Standards.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The President of the University of California.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The Chancellor of the California State University.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The Chancellor of the California Community Colleges.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
A representative from the Student Aid Commission.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
A representative from the Bureau for Private Postsecondary Education.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
A representative from the Association of Independent California Colleges and Universities.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
A representative from the State Department of Education.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
A representative from the California Health and Human Services Agency.
</html:p>
<html:p>
(14)
<html:span class="EnSpace"/>
A representative from the Governor’s Office of Business and Economic Development.
</html:p>
<html:p>
(15)
<html:span class="EnSpace"/>
A representative from the
Office of Cradle-to-Career Data.
</html:p>
<html:p>
(16)
<html:span class="EnSpace"/>
Industry leaders.
</html:p>
<html:p>
(17)
<html:span class="EnSpace"/>
Nonprofit leaders.
</html:p>
<html:p>
(18)
<html:span class="EnSpace"/>
Other representatives designated by the Governor.
</html:p>
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<ns0:LawSection id="id_52944950-2252-4BE6-9938-035B14D5436D">
<ns0:Num>69874.</ns0:Num>
<ns0:LawSectionVersion id="id_5AF735CF-114E-4380-BBD3-963806BA551E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A postsecondary educational institution shall ensure that any confidential student information collected for purposes of this article is only disclosed to the Governor or relevant state entities.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A postsecondary educational institution shall separately identify any confidential information submitted to the Governor or relevant state entities pursuant to this article. Any information that is not identified as confidential information shall be considered public information and subject to disclosure.
</html:p>
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<ns0:LawSection id="id_F3E28B33-EC84-44EF-BA2E-8190DB1424A9">
<ns0:Num>69875.</ns0:Num>
<ns0:LawSectionVersion id="id_8049EEB4-DB86-43BB-A9BD-DF1B12AD55F4">
<ns0:Content>
<html:p>The Labor and Workforce Development Agency may adopt rules and regulations for the implementation of this article as it deems necessary.</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_529C3F67-B363-4753-84DB-535C83371268">
<ns0:Num>69876.</ns0:Num>
<ns0:LawSectionVersion id="id_80C57D09-7541-4E51-8EC3-05889AC198B1">
<ns0:Content>
<html:p>This article shall take effect on July 1, 2026.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>The Legislature finds and declares that Section 1 of this act, which adds Section 69874 to the Education Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:</html:p>
<html:p>To ensure access and use of federal Workforce Pell Grant program funds, which serve the state’s economic interests, the privacy of student data submitted
to institutions on a confidential basis must be maintained.</html:p>
</ns0:Content>
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<ns0:BillSection id="id_FBD96491-E51F-458C-82D1-0BF31ABCEBAD">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:</html:p>
<html:p>In order to effectively implement the expansion of the Pell Grant program for students enrolled in short-term programs by July 1, 2026, it is essential to safeguard Californians from depleting their limited lifetime Pell Grant eligibility on low-quality, overly expensive, or fraudulent programs that fail to
provide genuine opportunities for economic mobility and allow quality short-term programs the ability to provide Pell Grants so more students may access and benefit from career training, and therefore, it is necessary for this act to take effect immediately.</html:p>
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