BILL NUMBER: SB 728 CHAPTERED 09/08/03 CHAPTER 339 FILED WITH SECRETARY OF STATE SEPTEMBER 8, 2003 APPROVED BY GOVERNOR SEPTEMBER 6, 2003 PASSED THE SENATE AUGUST 21, 2003 PASSED THE ASSEMBLY JULY 24, 2003 AMENDED IN ASSEMBLY JULY 17, 2003 AMENDED IN ASSEMBLY JULY 8, 2003 INTRODUCED BY Senator Scott FEBRUARY 21, 2003 An act to amend Section 69432.7 of the Education Code, relating to student financial aid. LEGISLATIVE COUNSEL'S DIGEST SB 728, Scott. Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program. Existing law, known as the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, establishes the Cal Grant A and B entitlement programs, 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. To be eligible for these awards, applicants must establish that their household income and asset levels do not exceed specified amounts. This bill would provide that any applicant who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level requirements established by the act. The bill would require that, prior to disbursing any Cal Grant funds, a qualifying institution participating in the Cal Grant programs resolve any conflicts that may exist in the data the institution possesses relating to that individual. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69432.7 of the Education Code is amended to read: 69432.7. As used in this chapter, the following terms have the following meanings: (a) An "academic year" is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included. (b) "Access costs" means living expenses and expenses for transportation, supplies, and books. (c) "Award year" means one academic year, or the equivalent, of attendance at a qualifying institution. (d) "College grade point average" and "community college grade point average" mean a grade point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree. (e) "Commission" means the Student Aid Commission. (f) "Enrollment status" means part-time status or full-time status. (1) Part time, for purposes of Cal Grant eligibility, is defined as 6 to 11 semester units, inclusive, or the equivalent. (2) Full time, for purposes of Cal Grant eligibility, is defined as 12 or more semester units or the equivalent. (g) "Expected family contribution," with respect to an applicant, shall be determined using the federal methodology pursuant to subdivision (a) of Section 69506 (as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.)) and applicable rules and regulations adopted by the commission. (h) "High school grade point average" means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, reserve officer training corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, "high school grade point average" includes senior year coursework. (i) "Instructional program of not less than one academic year" means a program of study that results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program. (j) "Instructional program of not less than two academic years" means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program. (k) "Maximum household income and asset levels" means the applicable household income and household asset levels for participants in the Cal Grant Program, as defined and adopted in regulations by the commission for the 2001-02 academic year, which shall be set pursuant to the following income and asset ceiling amounts: CAL GRANT PROGRAM INCOME CEILINGS -------------------------------------------------------- ' Cal Grant A, ' ' C, and T Cal Grant B ' '------------------------------------------------------' ' Dependent and Independent students with dependents* ' ' Family Size ' ' Six or more $74,100 $40,700 ' ' Five $68,700 $37,700 ' ' Four $64,100 $33,700 ' ' Three $59,000 $30,300 ' ' Two $57,600 $26,900 ' ' ' ' Independent ' ' Single, no dependents $23,500 $23,500 ' ' Married $26,900 $26,900 ' -------------------------------------------------------- *Applies to independent students with dependents other than a spouse. CAL GRANT PROGRAM ASSET CEILINGS ------------------------------------------------------- ' Cal Grant A, ' ' C, and T Cal Grant B ' '------------------------------------------------------' ' ' ' Dependent** $49,600 $49,600 ' ' Independent $23,600 $23,600 ' '------------------------------------------------------' **Applies to independent students with dependents other than a spouse. The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. Any applicant who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level test under this section. Prior to disbursing any Cal Grant funds, a qualifying institution shall be obligated, under the terms of its institutional participation agreement with the commission, to resolve any conflicts that may exist in the data the institution possesses relating to that individual. (l) "Qualifying institution" means any of the following: (1) Any California private or independent postsecondary educational institution that participates in the Pell Grant program and in at least two of the following federal campus-based student aid programs: (A) Federal Work-Study. (B) Perkins Loan Program. (C) Supplemental Educational Opportunity Grant Program. (2) Any nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent of the institution's operating budget, as demonstrated in an audited financial statement, is expended for the purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 2000-01 academic year shall retain its eligibility as long as it maintains its existing accreditation status. (3) Any California public postsecondary educational institution. (m) "Satisfactory academic progress" means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. The commission may adopt regulations defining "satisfactory academic progress" in a manner that is consistent with those federal standards.