BILL NUMBER: SB 760 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 14, 2011
AMENDED IN SENATE MARCH 25, 2011
INTRODUCED BY Senator Alquist
FEBRUARY 18, 2011
An act to add Section 69432.75 to amend
Section 69432.7 of, and to add Section 69433.2 to,
the Education Code, relating to postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
SB 760, as amended, Alquist. Postsecondary education: the Cal
Grant Program.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant
Program (Cal Grant Program), establishes the Cal Grant A and B
Entitlement Awards, the California Community College Transfer
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. Existing law
requires Cal Grant participating institutions to annually report to
the California Student Aid Commission enrollment, persistence, and
graduation data for all of its students in its undergraduate programs
and for its Cal Grant recipients in the aggregate.
This bill would require that private for-profit postsecondary
institutions participating in the Cal Grant Program must receive 10%
or more of total revenues for each fiscal year from sources other
than specified federal and state funds.
This bill, among other things, would define on-time completion
rate and require that the enrollment, persistence, and graduation
data be provided for each California campus represented on the
institution's participation agreement with the commission and for the
aggregate of all its campuses. The bill would also specify the types
of data that shall be included in each of the data categories and
that the data be reported by term.
Existing law requires Cal Grant participating institutions to
annually report to the California Student Aid Commission job
placement rate and salary and wage information for each program that
is either designed or advertised to lead to a particular type of job
or advertised or promoted with any claim regarding job placement.
This bill would define placement rate and specify how it is to be
calculated. The bill would allow the commission to use data already
available from other state agencies in lieu of requiring institutions
to report, if the commission determines that the data is sufficient
for meeting specified requirements.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
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) "California campus" means each California campus, additional
location, site, or branch identified on the institutional
participation agreement of the qualifying institution.
(d)
(e) "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)
(f) "Commission" means the Student Aid Commission.
(f)
(g) "Enrollment status" means part- or full-time
status.
(1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
(2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
(g)
(h) "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)
(i) "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)
(j) "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)
(k) "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)
(l) "Maximum household income and asset levels" means
the applicable household income and household asset levels for
participants, including new applicants and renewing recipients, 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 $23,500 $23,500 |
|dependents |
+--------------------+--------------+--------------+
| 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. The maximum
household income and asset levels applicable to a renewing recipient
shall be the greater of the adjusted maximum household income and
asset levels or the maximum household income and asset levels at the
time of the renewing recipient's initial Cal Grant award. For a
recipient who was initially awarded a Cal Grant for an academic year
before the 2011-12 academic year, the maximum household income and
asset levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal recipient
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.
(m) "Normal time" means the amount of time necessary for a student
to complete all requirements for a degree or certificate according
to the institution's catalog.
(n) "On-time completion rate" means all of the following:
(1) The number of students attending a California campus who
completed the program during the most recently completed award year.
(2) The number of students in paragraph (1) of subdivision (n) who
completed the program within the normal time, as defined in
subdivision (m) regardless of whether students transferred into the
program or changed programs at the institution.
(3) Dividing the number of students attending a California campus
who completed the program within normal time, as determined under
paragraph (2) of subdivision (m), by the total number of students who
completed the program, as determined under paragraph (1) of
subdivision (m), and multiplying the result by 100.
(4) Institutions shall calculate the on-time completion rate for
each California campus individually and in the aggregate.
(o) "Placement rate" means the placement rate for students
attending a California campus as determined under a methodology
developed by the National Center for Education Statistics (NCES),
when the rate is available. If the NCES has not specified a
methodology, the placement rate for students attending a California
campus shall be the methodology specified by the institution's
accrediting agency. If the accrediting agency requires an institution
to calculate a placement rate at the institutional level or other
than a program basis, the institution must use the accrediting agency
methodology to calculate a placement rate for the program.
Institutions shall report placement rates for California campuses and
any California locations of the institution individually and in the
aggregate. If the accrediting agency does not specify a methodology
for the calculation of a placement rate, the commission shall specify
the methodology.
(l)
(p) (1) "Qualifying institution" means an institution
that complies with paragraphs (2) and (3) and is any of the
following:
(A) A 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:
(i) Federal Work-Study.
(ii) Perkins Loan Program.
(iii) Supplemental Educational Opportunity Grant Program.
(B) A 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.
(C) A California public postsecondary educational institution.
(2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
(3) (A) The commission shall certify by October 1 of each year the
institution's latest three-year cohort default rate as most recently
reported by the United States Department of Education.
(B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a 2008 trial three-year cohort default
rate reported by the United States Department of Education as of
February 28, 2011, that is equal to or greater than 24.6 percent
shall be ineligible for initial and renewal Cal Grant awards at the
institution, except as provided in subparagraph (F).
(C) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
three-year cohort default rate that is equal to or greater than 30
percent, as certified by the commission on October 1, 2011, and every
year thereafter, shall be ineligible for initial or renewal Cal
Grant awards at the institution, except as provided in subparagraph
(F).
(D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards may regain its eligibility for the academic year following an
academic year in which it satisfies the requirements established in
subparagraph (B) or (C), as applicable.
(ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate that
originally failed to satisfy the requirements established in
subparagraph (B) or (C), as applicable, and the correction or
revision results in the institution's three-year cohort default rate
satisfying those requirements, that institution shall immediately
regain its eligibility for the academic year to which the corrected
or revised three-year cohort default rate would have been applied.
(E) An otherwise qualifying institution for which no three-year
cohort default rate has been reported by the United States Department
of Education shall be provisionally eligible to participate in the
Cal Grant Program until a three-year cohort default rate has been
reported for the institution by the United States Department of
Education.
(F) An institution that is ineligible for initial and renewal Cal
Grant awards at the institution under subparagraph (B) or (C) shall
be eligible for renewal Cal Grant awards for recipients who were
enrolled in the ineligible institution during the academic year
before the academic year for which the institution is ineligible and
who choose to renew their Cal Grant awards to attend the ineligible
institution. Cal Grant awards subject to this subparagraph shall be
reduced as follows:
(i) The maximum Cal Grant A and B awards specified in the annual
Budget Act shall be reduced by 20 percent.
(ii) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section 69435.
(G) Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education for
the academic year two years prior to the year in which the
commission is certifying the three-year cohort default rate pursuant
to subparagraph (A).
(H) By January 1, 2013, the Legislative Analyst shall submit to
the Legislature a report on the implementation of this paragraph. The
report shall be prepared in consultation with the commission, and
shall include policy recommendations for appropriate measures of
default risk and other direct or indirect measures of quality or
effectiveness in educational institutions participating in the Cal
Grant Program, and appropriate scores for those measures. It is the
intent of the Legislature that appropriate policy and fiscal
committees review the requirements of this paragraph and consider
changes thereto.
(m)
(q) "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.
SEC. 2. Section 69433.2 is added to the
Education Code , to read:
69433.2. (a) As a condition for its voluntary participation in
the Cal Grant Program, each Cal Grant participating institution
shall, beginning in 2012, annually report to the commission for each
term of the academic year immediately prior, and as further specified
in the institutional participation agreement, all of the following
for all students in its undergraduate programs at each California
campus individually and in the aggregate:
(1) (A) Enrollment data, including enrollment status and whether
the student is a first-time student, continuing or returning student,
transfer student, or other student.
(B) Persistence data, including a student's educational level.
(C) Graduation data, including whether a degree or certificate was
conferred and the on-time completion rate by cohort based on date of
initial enrollment and by degree and certificate, for each
California campus and in the aggregate for all the institution's
campuses and locations.
(2) The job placement rate and salary and wage information for
each program that is either of the following:
(A) Designed or advertised to lead to a particular type of job.
(B) Advertised or promoted with any claim regarding job placement.
Job placement rate and salary and wage information required by this
subdivision shall be reported for each program for each California
campus individually and in the aggregate for all the institution's
campuses and locations. The job placement rate and salary and wage
information shall be reported in the aggregate for Cal Grant
recipients by program.
(b) The commission may use data already available from other state
agencies in lieu of requiring institutions to report, if the
commission determines that the data is sufficient for meeting the
requirements of this section.
SECTION 1. Section 69432.75 is added to the
Education Code, to read:
69432.75. Private for-profit postsecondary institutions shall, as
a condition of participating in the Cal Grant Program, receive ten
percent or more of total revenues for each fiscal year from sources
other than Title IV of the federal Higher Education Act of 1965 (20
U.S.C. 2010 et seq.), Cal Grant funds, and funds identified in
Section 668.28(a)(7) of Title 34 of the Code of Federal Regulations.