BILL NUMBER: AB 1085	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Beth Gaines and Morrell
   (Coauthors: Assembly Members Bigelow, Conway, Wagner, and Waldron)

                        FEBRUARY 22, 2013

   An act to amend Section 69432 of the Education Code, relating to
student financial aid, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1085, as introduced, Beth Gaines. Cal Grant Program: maximum
award amounts: private institutions.
   Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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 sets maximum tuition award amounts for Cal Grant A
and B awards for new recipients attending private for-profit and
nonprofit postsecondary educational institutions, as specified.
   This bill would increase those maximum tuition award amounts for
recipients attending private for-profit and nonprofit postsecondary
educational institutions to $9,708.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The 2012-13 Budget Act reduced Cal Grant award amounts for
students attending private postsecondary educational institutions by
17 to 59 percent commencing with the 2013-14 award year. The Governor
also further reduced Cal Grant award awards for the 2012-13 award
year by 5 percent to save $23,000,000 for consistency.
   (b) These Cal Grant award reductions disproportionately affect
low-income families. Those recipients who are hurt most by the
reductions are the following:
   (1) Minorities, who receive 60 percent of Cal Grant awards.
   (2) Females, who receive 64 percent of Cal Grant awards.
   (3) Students with parents who make under $36,000 a year, who
receive 67 percent of Cal Grant awards.
   (4) Students with parents who make under $48,000 a year, who
receive 82 percent of Cal Grant awards.
   (c) The Legislative Analyst's Office has warned that reducing Cal
Grant awards to students attending private postsecondary educational
institutions may have the unintended effect of driving more students
from private institutions to public institutions, thereby increasing
the overall cost to the taxpayer to educate those students.
  SEC. 2.  Section 69432 of the Education Code is amended to read:
   69432.  (a) Cal Grant Program awards shall be known as "Cal Grant
A Entitlement Awards," "Cal Grant B Entitlement Awards," "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."

   (b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act. Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act.
   (c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the maximum
tuition award amounts for Cal Grant A and B awards for students
attending private  for-profit and nonprofit 
postsecondary educational institutions shall be  as follows:
  nine thousand seven hundred eight dollars ($9,708).
 
   (A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions. 

   (B) For the 2013-14 award year, nine thousand eighty-four dollars
($9,084) for new recipients attending private nonprofit postsecondary
educational institutions. For the 2014-15 award year and each award
year thereafter, eight thousand fifty-six dollars ($8,056) for new
recipients attending private nonprofit postsecondary educational
institutions. 
   (2) The renewal award amount for a student whose initial award is
subject to a maximum award amount specified in this subdivision shall
be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433. 
   (3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same maximum
tuition award amounts as are set forth in subparagraph (B) of
paragraph (1). 
  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 restore vital Cal Grant awards for recipients
attending private postsecondary educational institutions, it is
necessary that this act take immediate effect.