BILL NUMBER: SB 1383 CHAPTERED 09/29/06 CHAPTER 652 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2006 APPROVED BY GOVERNOR SEPTEMBER 29, 2006 PASSED THE SENATE AUGUST 29, 2006 PASSED THE ASSEMBLY AUGUST 23, 2006 AMENDED IN ASSEMBLY AUGUST 21, 2006 AMENDED IN ASSEMBLY AUGUST 7, 2006 AMENDED IN SENATE MAY 2, 2006 INTRODUCED BY Senator Ortiz (Principal coauthor: Senator Alarcon) (Coauthor: Senator Romero) (Coauthors: Assembly Members Baca, Jerome Horton, and Koretz) FEBRUARY 21, 2006 An act to amend Sections 69433.9 and 69514 of the Education Code, relating to student financial aid, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1383, Ortiz Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program. (1) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Among the existing eligibility requirements established under the act for the Cal Grant A and B Entitlement awards is a requirement that a student must have graduated from high school or its equivalent during or after the 2000-01 academic year and that the student has submitted a completed financial aid application no later than March 2 of the academic year, as defined to mean a year commencing on July 1 and ending on June 30, of high school graduation or its equivalent. Among the existing eligibility requirements established under the act for the California Community College Transfer Cal Grant Entitlement awards is a requirement that a student must have graduated from a California high school or its equivalent during or after the 2000-01 academic year. This bill would specify that a student who does not meet the requirements for a high school diploma or its equivalent in the academic year immediately preceding the award year, but who meets the requirements for a high school diploma or its equivalent by December 31 of the academic year immediately following the date of application, satisfies the requirement of obtaining high school graduation or its equivalent for the purposes of the act, as specified. (2) Existing law requires the Student Aid Commission to report, on or before April 1 of each year, statistical data examining the impact and effectiveness of state-funded student aid programs. This bill would require this annual report, to the extent practicable, to include the number and the demographic characteristics of the students who qualify for a Cal Grant award based on obtaining high school graduation or its equivalent pursuant to the bill. (3) The bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69433.9 of the Education Code, as amended by Section 2 of Chapter 43 of the Statutes of 2006, is amended to read: 69433.9. To be eligible to receive a Cal Grant award under this chapter, a student shall be all of the following: (a) A citizen of the United States, or an eligible noncitizen, as defined for purposes of financial aid programs under Title IV of the federal Higher Education Act of 1965 (20 U.S.C. Secs. 1070 et seq., as from time to time amended). (b) In compliance with all applicable Selective Service registration requirements. (c) Not incarcerated. (d) Not in default on any student loan within the meaning of Section 69507.5. (e) (1) For purposes of Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), and Article 4 (commencing with Section 69436), except as provided in subdivision (d) of Section 69436, at the time of high school graduation or its equivalent, be a resident of California. (2) A student who does not meet the requirements for a high school diploma or its equivalent in the academic year immediately preceding the award year, but who meets the requirements for a high school diploma or its equivalent by December 31 of the academic year immediately following the date of application, satisfies any requirement for obtaining high school graduation or its equivalent for the purposes of this chapter as of the first day of the academic term immediately following the term in which the requirements for the high school diploma or its equivalent are met. (3) No student shall receive an award for a term that begins prior to satisfying any requirement for obtaining high school graduation or its equivalent. SEC. 2. Section 69514 of the Education Code is amended to read: 69514. The commission shall do all of the following: (a) Report, on or before April 1 of each year, statistical data examining the impact and effectiveness of state-funded programs. The commission shall utilize common criteria in determining the impact of these programs, and shall have the authority to obtain any data from postsecondary educational institutions necessary for the reports. To the extent practicable, this report shall specifically note the number and the demographic characteristics of the students who qualify for a Cal Grant award based on obtaining high school graduation or its equivalent pursuant to paragraph (2) of subdivision (e) of Section 69433.9. (b) Collect and disseminate data concerning the financial resources and needs of students and potential students, and the scope and impact of existing state, federal, and institutional student aid programs. (c) Report, on or before April 1 of each year, the aggregate financial need of individuals seeking access to postsecondary education and the degree to which current student aid programs meet this legitimate financial need. (d) Develop and report annually the distribution of funds and awards among income groups, ethnic groups, grade point average levels, and postsecondary education segments. (e) Prepare and disseminate information regarding the criteria utilized in distributing available student aid funds. (f) Be authorized to expend funds for the purpose of disseminating information about all institutional, state, and federal student aid programs to potential applicants. This distribution of information shall primarily focus on potential applicants with the greatest financial need. SEC. 3. 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 to revise eligibility requirements relating to Cal Grant awards under the administration of the Student Aid Commission and to revise related reporting requirements as soon as possible, it is necessary that this act take effect immediately.