This assembly bill was introduced by Assembly Member Grayson on February 9, 2023. Current law establishes certain principles and criteria for public postsecondary institutions and budgetary control agencies to adhere to when providing programs and services for students with disabilities. These principles include the requirement that state-funded activities should directly address the functional limitations resulting from the verified disabilities of the students being served. The Legislature also intends that funding for disabled student programs and services be based on three categories of costs, including an ongoing variable cost category for services that vary in frequency based on student needs, such as diagnostic assessments, whether conducted individually or in groups, to determine functional, educational, or employment levels and to certify specific disabilities. Moreover, the Board of Governors of the California Community Colleges is tasked with adopting regulations for the administration and funding of educational programs and support services for disabled students in community college districts. These regulations are designed to allocate funds to offset the direct excess cost of providing specialized support services or instruction to disabled students in state-supported programs or courses. Direct excess costs are those that exceed the total of specific costs, revenues, and funds as defined by existing law. The Department of General Services, under the Government Operations Agency, is responsible for providing centralized services for the state government. This proposed bill would amend the legislative intent regarding diagnostic assessments, encompassing costs for continuous assessments, requisite documentation, and assessments conducted by the institution or an external entity. It would broaden the purpose of these assessments to include identifying specific disabilities of students and serving as proof for academic or institutional accommodations. Starting on July 1, 2025, the bill would mandate the Trustees of the California State University and request the Regents of the University of California to cover the costs of diagnostic assessments for learning disabilities as proof for academic accommodations, provided that the student receives financial aid or is eligible for financial assistance from the institution's health or disability center. State funds would be allocated annually based on the actual costs incurred, with each institution responsible for documenting its costs to the Department of General Services. The Department of General Services would oversee reimbursements to institutions for these documented expenses, and each educational institution would be required to prominently communicate on its website that it covers the costs of diagnostic assessments for such students.