BILL NUMBER: AB 2813 CHAPTERED 09/30/06 CHAPTER 822 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2006 APPROVED BY GOVERNOR SEPTEMBER 30, 2006 PASSED THE ASSEMBLY AUGUST 29, 2006 PASSED THE SENATE AUGUST 28, 2006 AMENDED IN SENATE AUGUST 22, 2006 AMENDED IN ASSEMBLY MAY 26, 2006 INTRODUCED BY Assembly Member De La Torre (Coauthors: Assembly Members Bass, Bermudez, Calderon, Chan, Coto, Dymally, Evans, Goldberg, Hancock, Jerome Horton, Jones, Karnette, Levine, Lieber, Liu, Matthews, Montanez, Negrete McLeod, Oropeza, Parra, Pavley, Saldana, Salinas, and Torrico) (Coauthors: Senators Alquist, Bowen, Denham, Escutia, Florez, Ortiz, Romero, Soto, Speier, Torlakson, and Vincent) FEBRUARY 24, 2006 An act to amend Section 69436 of the Education Code, relating to student financial aid. LEGISLATIVE COUNSEL'S DIGEST AB 2813, De La Torre Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act. 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. Under the existing California Community College Transfer Cal Grant Entitlement Program, the eligibility criteria include a requirement that the student not meet the federal definition of independent student, with the exception of students who are 24 years old or older and who are orphans or wards of the court, veterans of the United States Armed Forces, married, have dependents other than a spouse, or for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances. This bill would eliminate that requirement and those exceptions, and, instead, would limit eligibility to students who are not 28 years old of age or older by December 31 of the award year. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69436 of the Education Code, as amended by Section 3 of Chapter 43 of the Statutes of 2006, 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 will not be 28 years of age or older by December 31 of the award year. (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). (d) (1) Commencing with the 2006-07 award year, a student meeting the requirements of paragraph (9) of subdivision (b) by means of high school graduation, rather than its equivalent, shall be required to have graduated from a California high school, unless that California resident graduated from a high school outside of California due solely to orders received from a branch of the United States Armed Forces by that student or by that student's parent or guardian that required that student to be outside of California at the time of high school graduation. (2) For the purposes of this article, both of the following are exempt from the requirements of subdivision (e) of Section 69433.9 and paragraph (9) of subdivision (b) of this section: (A) A student for whom a claim under this article was paid prior to December 1, 2005. (B) A student for whom a claim under this article for the 2004-05 award year or the 2005-06 award year was or is paid on or after December 1, 2005, but no later than October 15, 2006. (3) (A) Commencing with the 2006-07 award year, the commission shall make preliminary awards to all applicants currently eligible for an award under this article. At the time an applicant receives a preliminary award, the commission shall require that applicant to affirm, in writing, under penalty of perjury, that he or she meets the requirements set forth in subdivision (e) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. The commission shall notify each person who receives a preliminary award under this paragraph that his or her award is subject to an audit pursuant to subparagraph (B). (B) The commission shall select, at random, a minimum of 10 percent of the new and renewal awards made under subparagraph (A), and shall require, prior to the disbursement of Cal Grant funds to the affected postsecondary institution, that the institution verify that the recipient meets the requirements of subdivision (e) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. An award that is audited under this paragraph and found to be valid shall not be subject to a subsequent audit. (C) Pursuant to Section 69517.5, the commission shall seek repayment of any and all funds found to be improperly disbursed under this article. (D) On or before November 1 of each year, the commission shall submit a report to the Legislature and the Governor including, but not necessarily limited to, both of the following: (i) The number of awards made under this article in the preceding 12 months. (ii) The number of new and renewal awards selected, in the preceding 12 months, for verification under subparagraph (B), and the results of that verification with respect to students at the University of California, at the California State University, at independent nonprofit institutions, and at independent for-profit institutions.