BILL NUMBER: AB 1285	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 25, 2014
	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 Entitlement award
recipients in their first academic year of attendance at an
institution of postsecondary education, and instead provide that, for
the 2015-16, 2016-17, and 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
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   The bill also would
provide that a student who receives a Cal Grant B that includes
tuition costs in the first year shall have an amount of institutional
aid the student receives that is equal to that award used to offset
the highest interest rate loans extended to the student as part of
his or her financial aid award, and that if no such student loans are
part of the award, the bill would require the institution to use
these institutional need-based funds to offset the highest interest
rate loan awards for other Cal Grant recipient students. The 
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)
  (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 
 in compliance with  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 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 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 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 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. 
    (c)     A student who receives a Cal Grant
B that includes tuition costs in the first year shall have an amount
of institutional aid he or she receives that is equal to that award
used to offset the highest interest rate loans extended to the
student as part of his or her financial aid award. If no such student
loans are part of the award, the institution shall use these
institutional need-based funds to offset the highest interest rate
loan awards for other Cal Grant recipient students. 
  SEC. 2.  This bill shall become operative on July 1, 2015.