Amended  IN  Assembly  June 11, 2026
Amended  IN  Assembly  June 26, 2025
Amended  IN  Senate  April 22, 2025
Amended  IN  Senate  April 10, 2025
Amended  IN  Senate  March 26, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill
No. 685

Introduced by Senator Cortese

February 21, 2025

An act to add and repeal Article 17 (commencing with Section 69850) of Chapter 2 of Part 42 of Division 5 of Title 3 amend Sections 56034 and 56035 of the Education Code, relating to public postsecondary special education.


LEGISLATIVE COUNSEL'S DIGEST


SB 685, as amended, Cortese. California State University: financial aid for homeless students: pilot program. Special education: nonpublic schools and agencies.
Existing law sets forth a method for providing special education and related services to pupils with exceptional needs. Existing law permits, under certain circumstances, contracts to be entered into for the provision of those services by nonpublic, nonsectarian schools or agencies. Existing law defines “nonpublic, nonsectarian school” and “nonpublic, nonsectarian agency” for these purposes.
This bill would revise those definition provisions to instead define “nonpublic school” and “nonpublic agency.” The bill would specify that all references in law to “nonpublic, nonsectarian school” or “nonpublic, nonsectarian agency” shall instead refer to “nonpublic school” or “nonpublic agency,” thereby eliminating the requirement that nonpublic schools or agencies that enter into contracts for the provision of special education services be nonsectarian.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in the state.

This bill, subject to an appropriation by the Legislature, would establish the Financial Assistance for Students Experiencing Homelessness Pilot Program, administered by each participating campus, to provide financial assistance at 4 California State University campuses to California residents, or specified students who are exempt from paying nonresident tuition, who (1) have been accepted for enrollment at one of those campuses, (2) were homeless at any time during high school, and (3) will be between 17 and 26 years of age, inclusive, upon receipt of assistance.

This bill would require, commencing with the 2026–27 academic year, each participating campus to provide financial assistance for the balance of the qualifying student’s cost of attendance that exceeds the financial aid, excluding federal loans, the qualifying student receives during the first 4 years the qualifying student participates in the pilot program. The bill would require the qualifying student to meet certain requirements to receive financial assistance under the pilot program, as specified. The bill would require each participating campus to adopt policies to administer the pilot program and to designate one existing employee as a liaison for qualifying students and prospective qualifying students, as provided.

This bill would require the office of the Chancellor of the California State University, on or before December 31, 2030, to submit a report to the Legislature evaluating the efficacy of the pilot program based on specified data collected from each participating campus, as provided.

This bill would make these provisions inoperative on July 1, 2031, and would repeal them as of January 1, 2032.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 56034 of the Education Code is amended to read:

56034.
 “Nonpublic, nonsectarian (a) “Nonpublic school” means a private, nonsectarian private school that enrolls individuals with exceptional needs pursuant to an individualized education program and is certified by the department. It does not include an organization or agency that operates as a public agency or offers public service, including, but not limited to, a state or local agency, an affiliate of a state or local agency, including a private, nonprofit corporation established or operated by a state or local agency, or a public university or college. A nonpublic, nonsectarian nonpublic school also shall meet standards as prescribed by the Superintendent and the board.
(b) Notwithstanding any other law, all references to “nonpublic, nonsectarian school” in this code shall instead refer to “nonpublic school” as defined in subdivision (a).

SEC. 2.

 Section 56035 of the Education Code is amended to read:

56035.
 “Nonpublic, nonsectarian (a) “Nonpublic agency” means a private, nonsectarian private establishment or individual that provides related services necessary for an individual with exceptional needs to benefit educationally from the pupils’ educational program pursuant to an individualized education program and that is certified by the department. It does not include an organization or agency that operates as a public agency or offers public service, including, but not limited to, a state or local agency, an affiliate of a state or local agency, including a private, nonprofit corporation established or operated by a state or local agency, a public university or college, or a public hospital. The nonpublic, nonsectarian nonpublic agency shall also meet standards as prescribed by the superintendent Superintendent and the board.
(b) Notwithstanding any other law, all references to “nonpublic, nonsectarian agency” in this code shall instead refer to “nonpublic agency” as defined in subdivision (a).

SECTION 1.Article 17 (commencing with Section 69850) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:
17.Financial Assistance for Students Experiencing Homelessness Pilot Program
69850.

For purposes of this article, the following definitions apply:

(a)“Cost of attendance” means the student’s tuition and fees, books and supplies, living expenses, transportation expenses, and any other student expenses used to calculate a student’s financial need for purposes of student aid programs under Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).

(b)“Financial aid” means any private, state, or federal assistance, excluding any federal student loans, that a qualifying student receives.

(c)“Institution of higher education” or “institution” means four California State University campuses to be selected by the Office of the Chancellor of the California State University to participate in the pilot program.

(d)“Pilot program” means the Financial Assistance for Students Experiencing Homelessness Pilot Program established pursuant to this article.

(e)“Qualifying student” means a California resident, or a student who is exempt from paying nonresident tuition pursuant to Section 68130.5, who meets all of the following requirements:

(1)Has been accepted for enrollment at an institution of higher education.

(2)Has been identified by designated school personnel as a homeless child or youth pursuant to Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a), while residing in California at any time between the start of 9th grade and the end of 12th grade.

(3)Will be between 17 and 26 years of age, inclusive, at the time the student receives financial assistance under the pilot program.

(f)“Satisfactory academic progress” has the same meaning as defined in Section 69406.

69851.

(a)(1)The Financial Assistance for Students Experiencing Homelessness Pilot Program is hereby established for the purpose of increasing access to postsecondary education for students who experienced homelessness during high school. The pilot program shall be administered by each institution of higher education.

(2)In selecting institutions to participate in the pilot program, the Office of the Chancellor of the California State University shall select one institution from each of the following geographic regions of the state:

(A)Central California.

(B)Northern California.

(C)The southern region of the San Francisco Bay area.

(D)Southern California.

(b)(1)Commencing with the 2026–27 academic year, each institution of higher education shall provide financial assistance to a qualifying student for the remaining balance of the student’s total cost of attendance that exceeds the amount of financial aid received by the qualifying student during the first four years that the qualifying student is enrolled in the pilot program.

(2)Funds disbursed to a qualifying student pursuant to paragraph (1) shall only be used for cost of attendance purposes.

(c)In order to receive the remaining balance of financial assistance, the qualifying student shall meet all of the following requirements:

(1)The student shall complete and submit the Free Application for Federal Student Aid (FAFSA) or the California Dream Act application, including, if applicable, acknowledging past or current experience of homelessness.

(2)The student shall timely apply for all other federal, state, or institutionally administered grants or fee waivers for which the student is eligible.

(3)The student shall be enrolled in courses leading toward the qualifying student’s first baccalaureate degree at an institution of higher education.

(4)The student shall be enrolled full time, as determined by the institution.

(5)The student shall maintain satisfactory academic progress.

(d)(1)Each institution shall adopt policies to administer the pilot program.

(2)Each institution shall determine if qualifying students shall be required to have regularly scheduled check-ins with the appropriate entity on campus in order to assess the student’s financial well-being, and if so, shall include that requirement in the adopted policies pursuant to paragraph (1).

(e)The Office of the Chancellor of the California State University shall do both of the following:

(1)Collect data from each institution that shows whether a student’s participation in the pilot program improved retention rates, housing attainment, and food insecurity.

(2)On or before December 31, 2030, submit a report to the Legislature, in compliance with Section 9795 of the Government Code, evaluating the efficacy of the pilot program based on the data collected pursuant to paragraph (1).

69852.

Each institution shall designate one existing employee as a liaison to serve as a point of contact for qualifying students and prospective qualifying students. The liaison may have other duties unrelated to their work as the liaison. The liaison shall provide qualifying students and prospective qualifying students with information regarding application assistance, financial assistance, support services, and other resources and assistance that are available to qualifying students. Each institution shall publicize the availability of the pilot program for students experiencing homelessness on the institution’s internet website and notify qualifying students of their eligibility to participate in the pilot program.

69853.

This article shall only be implemented upon an appropriation by the Legislature for its purposes in the annual Budget Act or another statute.

69854.

This article shall become inoperative on July 1, 2031, and, as of January 1, 2032, is repealed.