BILL NUMBER: SB 176 CHAPTERED 05/04/01 CHAPTER 8 FILED WITH SECRETARY OF STATE MAY 4, 2001 APPROVED BY GOVERNOR MAY 4, 2001 PASSED THE SENATE APRIL 19, 2001 PASSED THE ASSEMBLY APRIL 16, 2001 AMENDED IN ASSEMBLY MARCH 15, 2001 AMENDED IN SENATE MARCH 1, 2001 AMENDED IN SENATE FEBRUARY 22, 2001 INTRODUCED BY Senator Ortiz (Principal coauthor: Assembly Member Rod Pacheco) (Coauthors: Assembly Members Alquist and Robert Pacheco) FEBRUARY 5, 2001 An act to amend Sections 69434, 69435.3, 69436, and 69437.6 of the Education Code, relating to student financial aid, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 176, Ortiz. Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program. Existing law, known as the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, establishes, among other programs, the Cal Grant A Entitlement Program, the Cal Grant B Entitlement Program, the California Community College Transfer Cal Grant Entitlement Program, and the Competitive Cal Grant A and B Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs. This bill would add to the eligibility requirements for the Cal Grant A Entitlement Program and the Cal Grant B Entitlement Program a provision specifying that a qualifying student must graduate from high school or its equivalent during or after the 2000-01 school year. The bill would amend the eligibility requirements for the California Community College Transfer Cal Grant Entitlement Program to change a reference to a federal statute and to specify that a student who graduates from a California high school during the 2000-01 academic year is eligible for that program. The bill would add to the eligibility requirements for the Competitive Cal Grant A awards a provision authorizing an applicant to meet the existing grade point average requirement through the submission of a college grade point average, as prescribed. The bill would amend the eligibility requirements for the Competitive Cal Grant B awards by creating an exemption from requirements regarding submission of a financial aid application and graduation from high school no sooner than the 2000-01 academic year. The bill would appropriate $3,342,000 from the General Fund to the Student Aid Commission for expenditure in the 2000-01 fiscal year, for costs related to implementing information technology changes needed to process additional workload associated with the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program. This bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69434 of the Education Code is amended to read: 69434. (a) Commencing with the 2001-02 academic year, and each academic year thereafter, a Cal Grant A award shall be used only for tuition or student fees, or both, in a for-credit instructional program with a length of not less than two academic years. Each student who meets the Cal Grant A qualifications as set forth in this article shall be guaranteed an award. The amount of any individual award is dependent on the cost of tuition or fees, or both, at the qualifying institution at which the student is enrolled. For each applicant, the award amount shall not exceed the amount of the calculated financial need. (b) Pursuant to Section 66021.2, any California resident is entitled to a Cal Grant A award, and the commission shall allocate that award, if all of the following criteria are met: (1) The student has submitted, pursuant to Section 69432.9, a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the second award year following the year of high school graduation or its equivalent. (2) The student demonstrates financial need pursuant to Section 69433. (3) The student attains a high school grade point average of at least 3.0 on a four-point scale. (4) The student's household has an income and asset level that does not exceed the level for Cal Grant A recipients set forth in Section 69432.7. (5) The student is pursuing an undergraduate academic program of not less than two academic years that is offered by a qualifying institution. (6) The student is enrolled at least part time. (7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430). (8) The student graduated from high school or its equivalent during or after the 2000-01 academic year. (c) A student who meets the Cal Grant A Entitlement Program criteria specified in this article shall receive a Cal Grant A award for tuition or fees, or both, pursuant to Section 66021.2. SEC. 2. Section 69435.3 of the Education Code is amended to read: 69435.3. (a) Any California resident is entitled to receive a Cal Grant B award, and the commission shall allocate that award pursuant to Section 66021.2, if all of the following criteria are met: (1) The student has submitted, pursuant to Section 69432.9, a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the second award year following the year of high school graduation or its equivalent. (2) The student demonstrates financial need pursuant to Section 69433. (3) The student attains a high school grade point average of at least 2.0 on a four-point scale. (4) The student's household has an income and asset level that does not exceed the level for Cal Grant B recipients as set forth in Section 69432.7. (5) The student is pursuing an undergraduate academic program of not less than one academic year that is offered by a qualifying institution. (6) The student is enrolled at least part-time. (7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430). (8) The student graduated from high school or its equivalent during or after the 2000-01 academic year. (b) A student who meets the Cal Grant B Entitlement Program criteria specified in this article shall receive a Cal Grant B award for access costs and tuition and fees pursuant to Section 66021.2. SEC. 3. Section 69436 of the Education Code is amended to read: 69436. (a) Commencing with the 2001-02 academic year, and each academic year thereafter, a student who was not awarded a Cal Grant A or B award pursuant to Article 2 (commencing with Section 69434) or Article 3 (commencing with Section 69435) at the time of his or her high school graduation but, at the time of transfer from a California community college to a qualifying baccalaureate program, meets all of the criteria set forth in subdivision (b), shall be entitled to a Cal Grant A or B award. (b) Any California resident transferring from a California community college to a qualifying institution that offers a baccalaureate degree is entitled to receive, and the commission shall award, a Cal Grant A or B award depending on the eligibility determined pursuant to subdivision (c), if all of the following criteria are met: (1) A complete official financial aid application has been submitted or postmarked pursuant to Section 69432.9, no later than the March 2 of the year immediately preceding the award year. (2) The student demonstrates financial need pursuant to Section 69433. (3) The student has earned a community college grade point average of at least 2.4 on a 4.0 scale and is eligible to transfer to a qualifying institution that offers a baccalaureate degree. (4) The student's household has an income and asset level not exceeding the limits set forth in Section 69432.7. (5) The student is pursuing a baccalaureate degree that is offered by a qualifying institution. (6) He or she is enrolled at least part-time. (7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430). (8) The student does not meet the federal definition of an independent student, as set forth in subsection (d) of Section 1087vv of Title 20 of the United States Code, with the exception of: (A) A student who is an orphan or a ward of the court and who will not be 24 years old or older by December 31 of the award year. (B) A student who is a veteran of the United States Armed Forces and who will not be 24 years old or older by December 31 of the award year. (C) A student who is a married person and who will not be 24 years old or older by December 31 of the award year. (D) A student who will not be 24 years old or older by December 31 of the award year and who has dependents other than a spouse. (E) A student who will not be 24 years old or older by December 31 of the award year and for whom a financial aid administrator makes documented determination of independence by reason of other unusual circumstances. (9) The student graduated from a California high school or its equivalent during or after the 2000-01 academic year. (c) The amount and type of the award pursuant to this article shall be determined as follows: (1) For applicants with income and assets at or under the Cal Grant A limits, the award amount shall be the amount established pursuant to Article 2 (commencing with Section 69434). (2) For applicants with income and assets at or under the Cal Grant B limits, the award amount shall be the amount established pursuant to Article 3 (commencing with Section 69435). SEC. 4. Section 69437.6 of the Education Code is amended to read: 69437.6. (a) An applicant competing for an award under this article shall meet all the requirements of Article 1 (commencing with Section 69430). (b) To compete for a competitive Cal Grant A award, an applicant shall, at a minimum, meet all of the requirements of Article 2 (commencing with Section 69434), with the exception of paragraphs (1) and (8) of subdivision (b) of Section 69434. However, in lieu of meeting the grade point average requirement set forth in paragraph (3) of subdivision (b) of Section 69434, an applicant may submit a community college or college grade point average of at least 2.4 on a 4.0 scale. (c) To compete for a competitive Cal Grant B award, an applicant shall, at a minimum, meet all of the requirements of Article 3 (commencing with Section 69435), with the exception of paragraphs (1) and (8) of subdivision (a) of Section 69435.3. However, in lieu of meeting the grade point average requirements of paragraph (3) of subdivision (a) of Section 69435.3, a student may reestablish his or her grade point average by completing at least 16 cumulative units of credit for academic coursework at an accredited California community college, as defined by the commission, by regulation, with at least a 2.0 community college grade point average. (d) To compete for a competitive California Community College Transfer Cal Grant Award, an applicant shall, at a minimum, meet the requirements of Article 4 (commencing with Section 69436), with the exception of paragraphs (8) and (9) of subdivision (b) of Section 69436. (e) All other competitors shall, at a minimum, comply with all of the requirements of subdivision (b) of Section 69432.9. (f) An individual selected for a Cal Grant A award who enrolls in a California community college may elect to have the award held in reserve for him or her for a period not to exceed two academic years, except that the commission may extend the period in which his or her award may be held in reserve for up to three academic years if, in the commission's judgment, the rate of academic progress has been as rapid as could be expected for the personal and financial conditions that the student has encountered. The commission shall, in this case, hold the award in reserve for the additional year. Upon receipt of a request to transfer the award to a tuition or fee charging qualifying institution, the individual shall be eligible to receive the Cal Grant A award previously held in reserve if, at the time of the request, he or she meets all of the requirements of this article. Upon receipt of the request, the commission shall reassess the financial need of the award recipient. The commission may prescribe the forms and procedures to be utilized for the purposes of this section. A recipient's years of eligibility for payment of benefits shall be based upon his or her grade level at the time the award is transferred to the tuition or fee charging qualifying institution. Any award so held in reserve shall only be counted once toward the 22,500 awards authorized by this article. SEC. 5. The sum of three million three hundred forty-two thousand dollars ($3,342,000) is hereby appropriated from the General Fund to the Student Aid Commission for expenditure in the 2000-01 fiscal year, for costs related to implementing information technology changes needed to process additional workload associated with the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of the Education Code. These changes are those identified in the feasibility study report approved by the Department of Finance and the Department of Information Technology during the 2000-01 fiscal year. SEC. 6. 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 Constitution and shall go into immediate effect. The facts constituting the necessity are: In order for the important changes made by this act to take effect in time for the beginning of the 2001-02 academic year, it is necessary that this act take effect immediately.