BILL ANALYSIS                                                                                                                                                                                                    Ó






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                             2011-12 Regular Session
                                         

          BILL NO:       SB 1103
          AUTHOR:        Wright
          AMENDED:       April 9, 2012
          FISCAL COMM:   Yes            HEARING DATE:  April 18, 2012
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Postsecondary education:  Cal Grant Program.
          
           SUMMARY   

          This bill requires the California Student Aid Commission to 
          post annual reports submitted by institutions participating 
          in the Cal Grant program and other information useful to 
          students and parents.  

           BACKGROUND  

          Existing law establishes the Cal Grant program under the 
          administration of the California Student Aid Commission 
          (CSAC) and establishes eligibility requirements for students 
          attending qualifying institutions.  (Education Code § 69430 
          et seq.)

          Existing law requires, beginning in 2012, institutions 
          participating in the Cal Grant Program to submit to CSAC 
          annual enrollment, persistence, and graduation data for all 
          students, including Cal Grant recipients, and requires 
          institution to also provide job placement rate and salary and 
          wage information for occupational and career programs as 
          specified.  (EC § 44932.2)  

           ANALYSIS  

           This bill  requires the CSAC to provide on its Internet Web 
          site:  

                  a)        Annual report information submitted by 
                    institutions participating in the Cal Grant 
                    Program, and 

                  b)        Other information and links useful to 
                    students and parents including but not limited to 



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                    local occupational profiles available through the 
                    Employment Development Department's Labor Market 
                    Information Data Library.  

           STAFF COMMENTS  

           1)   Need for the bill  :  According to the author, college is 
               a significant investment for students and their 
               families.  While there are many Web sites that provide 
               information about college programs and costs, there are 
               few sites that easily enable students to compare 
               programs and schools to help them make informed choices 
               about their investment.  Since the majority of college 
               students participate in some type of financial aid 
               program, and since each year approximately 250,000 
               students set up a Web Grant account where they can 
               access information about and manage their Cal Grants, 
               the CSAC Web site is a logical place to house 
               information that would enable students and parents to do 
               a side-by-side comparison of institutions or compare 
               similar programs at different institutions.  

           2)   Annual reporting  .  Trailer Bill language in the 2011 
               Budget Act (SB 70, Chapter 7, Statutes of 2011) requires 
               the 430 institutions participating in the Cal Grant 
               Program to report enrollment, persistence, graduation, 
               job placement and wage data on an annual basis to the 
               Student Aid Commission beginning in 2012.  This bill 
               would require the CSAC to make that information publicly 
               available on its Web site along with other information 
               and links that would be useful to students, such as 
               labor market information through the state's Employment 
               Development Department.  The CSAC reports it expects to 
               start the regulatory process for the reporting 
               requirements this spring.  Given that the first reports 
               may not be submitted until late 2012, it may make sense 
               to allow the first reporting cycle to be completed 
               before requiring the CSAC to post the information on its 
               Web site.  

          Information provided by the author's office suggests the 
               intent of the bill is to provide a searchable database 
               that would enable students and families seeking 
               information about college programs to compare 
               information across colleges.  The bill however does not 
               so specify.  Staff recommends the bill be amended to do 
               the following:  



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               a)        Specify that in the year following the first 
                    reports submitted pursuant to § 69433.2(a), the 
                    commission shall provide the required information.

               b)        Specify that institutional information be 
                    posted in a searchable database.  

           3)   Fiscal impact  .  According to the CSAC, costs associated 
               with posting the required information, would be minor 
               and absorbable.   
           
           4)   Prior legislation  .  

          SB 70 (Committee on Budget & Fiscal Review, Chapter 7, 2011) 
               requires Cal Grant participating institutions to report 
               enrollment, persistence, graduation, job placement and 
               wage data to the Student Aid Commission.  

           SUPPORT
           
          California Business Education Association
          California Manufacturers and Technology Association

           OPPOSITION
           
          None received.