Public postsecondary education: income share agreement: pilot program.

The Donahoe Higher Education Act provides for a public postsecondary education system in this state. This system consists of the University of California, the California State University, and the California Community Colleges. The act applies to the University of California only to the extent that the Regents of the University of California act by resolution to make it applicable. This bill would require the California State University and, as a condition of receipt of funds appropriated for purposes of the bill's provisions, the University of California to each select a campus of their respective system to establish, commencing with the 2021–22 academic year, a pilot program for participating students to enter into an income share agreement with the campus. These agreements would specify that moneys for the pilot program would be provided to students for costs of attendance, with students agreeing to pay a portion of their future incomes in exchange. The bill would provide that the period of repayment shall not exceed 10 years, unless extended by up to 60 months under specified circumstances, and shall commence 6 months after the student is no longer enrolled full-time in an accredited college program. The bill would require the income share agreement to be subject to specified requirements, including, among others, that the agreement provide for monthly payments to be based on a specified percentage of the student's annual income. The bill would require the pilot program to be open to students in their sophomore, junior, or senior year, and would authorize the campus to impose other eligibility requirements and cap the number of participants based on the amount of moneys appropriated for the pilot program. The bill would require that implementation of the pilot program be contingent upon the appropriation of funds for this purpose in the annual Budget Act or another statute. The bill would require each participating campus to submit a report no later than November 1, 2023, and a 2nd report no later than November 1, 2026, to the appropriate policy and fiscal committees of the Legislature containing specified information about the pilot program.