BILL NUMBER: AB 1285	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2014
	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  APRIL 2, 2013

INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 22, 2013

   An act to amend Section 69435 of the Education Code, relating to
student financial aid.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1285, as amended, Fong. Student financial aid: 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 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 and maximum levels for awards under these
programs for participating students attending qualifying
institutions, as defined. Under the Cal Grant Program, the maximum
Cal Grant B award for a student attending the University of
California or the California State University equals the mandatory
systemwide fees in the segment attended by the student, plus the
award for access costs, and the maximum Cal Grant B award for a
student attending a nonpublic institution equals the amount of the
tuition award, as prescribed, plus the award for access costs, except
that in the first year of enrollment in a qualifying institution,
the maximum award is only for the amount of the access award.
    With respect to Cal Grant B Entitlement awards, existing law
requires that the award be used only for tuition, student fees, and
access costs, as defined, in a for-credit instructional program that
is not less than one academic year in length. Existing law requires
that no more than 2% of new Cal Grant B recipients enrolling for the
first time in an institution of postsecondary education are eligible
for payments for tuition or fees, or both, in their first academic
year of attendance.
   This bill would delete the 2% limit for receipt of payments for
tuition or fees, or both, for new Cal Grant B 
Entitlementaward   Entitlement award  recipients in
their first academic year of attendance at an institution of
postsecondary education, and instead provide that, for the 
2014-15   2015-   16  ,  2015-16
  2016-   17  , and  2016-17
  2017-18  academic years, respectively, 25%, 50%,
and 75% of the Cal Grant B Entitlement award recipients would be
eligible for payments for tuition or fees, or both, in their first
academic year of attendance at an institution of postsecondary
education. The bill would further provide that, commencing with the
 2017-18   2018-19  academic year, and each
academic year thereafter, all new Cal Grant B recipients enrolling
for the first time in an institution of postsecondary education would
be eligible for payments for tuition or fees, or both, in their
first academic year of attendance.  This bill would require that
the institution not supplant any of its institutional need-based
grants with funds provided for Cal Grant B   awards, and
maintain the funding amounts for these grants at a level that, at a
minimum, is equal to the level maintained for undergraduate students
during the 2013-14 academic year, in order for the students enrolled
in the institution to remain eligible to receive a Cal Grant B award.
This bill would become operative on July 1, 2015. 
   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 69435 of the Education Code is amended to read:

   69435.  (a) (1) A Cal Grant B award shall be used only for
tuition, student fees, and access costs in a for-credit instructional
program that is not less than one academic year in length.
   (2) The commission, or a qualifying institution pursuant to
Article 8 (commencing with Section 69450), shall award access grants
in a student's first academic year. In subsequent years,  and in
the student's first academic year as specified in paragraph (3) 
the award shall include an additional amount to pay tuition or fees,
or both, to attend college at a public or private four-year college
or university or other qualifying institution for all Cal Grant B
awards pursuant to paragraph (2) of subdivision (b) of Section
66021.2. In no event shall the total award in any year exceed the
applicant's calculated financial need.
   (3) (A) For the  2014-15     2015-16
 academic year, not more than 25 percent of new Cal Grant B
recipients enrolling for the first time in an institution of
postsecondary education shall be eligible for payments for tuition or
fees, or both, in their first academic year of attendance.
   (B) For the  2015-16   2016-17  academic
year, not more than 50 percent of new Cal Grant B recipients
enrolling for the first time in an institution of postsecondary
education shall be eligible for payments for tuition or fees, or
both, in their first academic year of attendance.
   (C) For the  2016-17   2017-18  academic
year, not more than 75 percent of new Cal Grant B recipients
enrolling for the first time in an institution of postsecondary
education shall be eligible for payments for tuition or fees, or
both, in their first academic year of attendance.
   (D) Commencing with the  2017-18   2018-19
 academic year, and each academic year thereafter, all new Cal
Grant B recipients enrolling for the first time in an institution of
postsecondary education shall be eligible for payments for tuition or
fees, or both, in their first academic year of attendance.
   (E) The commission shall adopt regulations specifying the criteria
used to determine which applicants, if any, receive both tuition and
fees plus the access grant in the first year of enrollment. Priority
shall be given to students with the lowest expected family
contribution pursuant to Section 69432.7 and the highest level of
academic merit.
   (b) An award for access costs under this article shall be in an
annual amount not to exceed one thousand five hundred fifty-one
dollars ($1,551). This amount may be adjusted in the annual Budget
Act. 
   (c) The qualifying institution shall not supplant its
institutional need-based grants with the funds provided for Cal Grant
B awards, and shall maintain funding amounts for these grants at a
level that, at a minimum, is equal to the level maintained for
undergraduate students during the 2013-14 academic year, in order for
the students enrolled in the institution to remain eligible to
receive a Cal Grant B award under this article. 
   SEC. 2.    This bill shall become operative on July
1, 2015.