(a) The Higher Education Capacity Expansion Grant Program is hereby established to provide one-time grants for capacity expansion projects to support increased California resident enrollment.

(b) To be eligible for a grant for a capacity expansion project, an applicant shall demonstrate that the project will increase future California resident enrollment capacity, either by increasing instructional space for students or improving students’ time-to-degree, or will otherwise support the applicant’s ability to provide accessible higher education options to more students. Projects may include, but are not necessarily limited to, all of the following:

Terms Used In California Education Code 17204

  • Applicant: means a community college district, a campus of the California State University, a campus of the University of California, which may include the college named in Section 92200, or a partnership of campuses across and within the public higher education segments. See California Education Code 17200
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Campus: means a community college district, a campus of the California State University, or a campus of the University of California, which may include the college named in Section 92200. See California Education Code 17200
  • Capacity expansion projects: means projects that expand the ability of a four-year public postsecondary educational institution to support future California resident enrollment growth. See California Education Code 17200
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.

(1) New construction.

(2) Land or building acquisition.

(3) Modernization of existing buildings for improving the learning environment, improving equipment, increasing classroom capacity, or accommodating more students in high-demand majors and fields.

(c) Proposals for projects to be considered pursuant to this section shall be submitted to the Department of Finance by an established proposal deadline.

(d) The Department of Finance shall provide the Joint Legislative Budget Committee information on all submitted project proposals, and a list of projects proposed for inclusion in the annual Budget Act or other legislation, no later than four months following any proposal deadline established pursuant to subdivision (c).

(e) 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.

(f) 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.

(g) Project selection criteria may include any of the following:

(1) The timeline for project construction, with priority given to projects that can begin the earliest.

(2) The campus‘ unmet demand for California resident enrollment, with priority given to applicants with greater unmet California resident demand.

(3) The availability of a local match, with priority given to campuses with a local match.

(4) When considered as a whole, the applications approved pursuant to this section are fairly representative of the various geographical regions of the state and the campuses of the University of California and the California State University.

(5) The campus’ efforts to construct, acquire, or develop collaboratively with its local communities, including other public postsecondary educational institutions, capacity expansion projects.

(h) Proposals for capacity expansion projects submitted to the Department of Finance pursuant to this section shall be considered for inclusion in the annual Budget Act or other legislation, subject to an available and sufficient appropriation.

(i) It is the intent of the Legislature to appropriate funds for the Higher Education Capacity Expansion Grant Program in a future fiscal year.

(Amended by Stats. 2022, Ch. 54, Sec. 6. (AB 183) Effective June 30, 2022.)

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