BILL NUMBER: AB 1318	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2013
	AMENDED IN ASSEMBLY  APRIL 2, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Bonilla

                        FEBRUARY 22, 2013

   An act to amend Section 66021.2 of the Education Code, relating to
student financial aid.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1318, as amended, Bonilla. Student financial aid: Cal Grant
Program.
   Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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 for awards under
these programs for participating students attending qualifying
institutions, as defined.
   This bill would add provisions that would set the maximum Cal
Grant award levels for students attending  nonprofit,
 nonpublic postsecondary educational institutions that are
accredited by the Western Association of Schools and Colleges,
commencing with the 2014-15 award year. The bill would provide that a
 nonprofit,  nonpublic postsecondary educational
institution accredited by the Western Association of Schools and
Colleges would be deemed a qualifying institution if the total amount
of institutional aid, as defined, provided to California resident
students by that institution, in any award year, is no less than 50%
of the total Cal Grant awards received by their students, except for
institutions meeting prescribed conditions.
   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.  The Legislature finds and declares all of the
following:
   (a) California relies on private  nonprofit 
colleges and universities accredited by the Western Association of
Schools and Colleges (WASC) to help meet the state's higher education
needs  , educating 24 percent of the state's undergraduates
 . 
   (b) California provides Cal Grant support to approximately 26,000
students annually attending WASC accredited private nonprofit
colleges and universities, and additional California students
attending these institutions are educated at zero cost to the state.
 
   (c) Eighty-five percent of all students attending California's
WASC accredited private nonprofit colleges and universities receive
institutionally funded student aid.  
   (d) California's WASC accredited private nonprofit colleges and
universities effectively educate a diverse state population, and have
a four-year graduation rate for Cal Grant students in excess of 60
percent.  
   (e) 
    (b)  The maximum award for Cal Grant students attending
WASC accredited private  nonprofit  colleges and
universities has not increased since 1999:
   (1) It was cut by almost 15 percent for the 2005-06 and 2006-07
cohorts.
   (2) It was cut by 5 percent for new and renewal grants for the
2012-13 award year, and is scheduled to be cut an additional 1.5
percent in the 2013-14 award year and 11 percent in the 2014-15 award
year for new awardees.
   (3) Even if the maximum award had not been cut, its value would
have decreased by over 30 percent due to inflation.
   (4) In inflation-adjusted dollars, the maximum award for the
2014-15 award year will be the lowest amount California has invested
in academically qualified, financially deserving students that attend
private  nonprofit  WASC accredited institutions.

   (f) Cal Grant students attending private nonprofit WASC accredited
institutions are a good investment for the state because of all of
the following:  
   (1) They have a high persistence and graduation rate. 

   (2) They free up capacity at public institutions. 

   (3) They are unlikely to need Cal Grant assistance for their
children.  
   (g) 
    (c)  The Cal Grant program effectively and successfully
helps California's private  nonprofit  colleges and
universities to recruit, retain, and graduate historically
underrepresented students from low-income families.  Cal
Grants are a ladder of opportunity, and they leverage nonpublic
student aid to help students graduate from college without excessive
student debt:  
   (1) Cal Grant recipients are 33 percent Latino, 18 percent Asian
American, 6 percent African American, 1 percent Native American, 1
percent Pacific Islander, 4 percent two or more races, 13 percent
unknown, and 24 percent Caucasian.  
   (2) Cal Grant recipients are some of California's financially
neediest students, with an average family income for Cal Grant A
students of $40,896.  
   (h) Cal Grant students at California's WASC accredited private
nonprofit colleges and universities account for less that 2 percent
of California's postsecondary education budget.  
   (i) Cal Grant students at WASC accredited private nonprofit
colleges and universities deserve to be treated similarly to as
similar students attending public institutions.  
   (j) 
    (d)  Predictable and stable funding formulas and
eligibility requirements ensure that the state maximizes its
investment and allows families to plan and pay for higher education.

   (k) 
    (e)  Legislative action is needed to adopt a reasonable
formula that supports predictability and supports parity for students
at private  nonprofit  colleges.
  SEC. 2.  Section 66021.2 of the Education Code is amended to read:
   66021.2.  Consistent with the state's historic commitment to
provide educational opportunity by ensuring both student access to
and selection of an institution of higher education for students with
financial need, the long-term policy of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established
pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42
shall be as follows:
   (a) Commencing with the 2001-02 academic year and every year
thereafter, an applicant for a Cal Grant A or B award shall receive
an award that is not in excess of the financial need amount
determined by the Student Aid Commission pursuant to Section 69432.9
if he or she complies with all of the following requirements:
   (1) Demonstrates financial need under the criteria adopted
pursuant to Section 69432.9.
   (2) Attains a grade point average, as defined in Section 69432.7,
meeting the requirements of Chapter 1.7 (commencing with Section
69430) of Part 42.
   (3) Complies with each of the eligibility criteria applicable to
the type of Cal Grant award for which he or she is applying.
   (b) (1) The maximum Cal Grant A award for a student attending the
University of California or the California State University shall
equal the mandatory systemwide fees in each of those segments.
   (2) The maximum Cal Grant B award for a student to which this
subdivision is applicable shall equal the mandatory systemwide fees
in the segment attended by the student, except for community college
students who receive waivers from the Board of Governors of the
California Community Colleges, plus the access award calculated as
specified in Article 3 (commencing with Section 69435) of Chapter 1.7
of Part 42, except that in the first year of enrollment in a
qualifying institution, the maximum award shall be only for the
amount of the access award.
   (c) The maximum Cal Grant awards for students attending nonpublic
institutions shall be as follows:
   (1) The maximum Cal Grant A award shall equal the tuition award
level established in the Budget Act of 2000, or the amount as
adjusted in subsequent annual budget acts.
   (2) The maximum Cal Grant B award shall equal the amount of the
tuition award as established in the Budget Act of 2000, or the amount
as adjusted in subsequent annual budget acts, plus the amount of the
access costs specified in Section 69435, except that, in the first
year of enrollment in a qualifying institution, the maximum award
shall be only for the amount of the access award.
   (3) Notwithstanding paragraphs (1) and (2), and notwithstanding
Section 69432:
   (A) The maximum Cal Grant award for a student attending a 
nonprofit,  nonpublic postsecondary educational institution
accredited by the Western Association of Schools and Colleges shall
be set and maintained at 80 percent of the base funding per Cal Grant
student at the University of California and the California State
University, as determined by the average state support per student
plus the average Cal Grant award for the University of California and
the California State University, except as provided in clauses (i)
to (iv), inclusive.
   (i) For the 2014-15 award year, the maximum award shall be 70
percent of the amount calculated pursuant to subparagraph (A).
   (ii) For the 2015-16 award year, the maximum award shall be 80
percent of the amount calculated pursuant to subparagraph (A).
   (iii) For the 2016-17 award year, the maximum award shall be 90
percent of the amount calculated pursuant to subparagraph (A).
   (iv) For the 2017-18 award year and each award year thereafter,
the maximum award shall be 100 percent of the amount calculated
pursuant to subparagraph (A).
   (B) A  nonprofit,  nonpublic postsecondary
educational institution accredited by the Western Association of
Schools and Colleges shall be deemed a qualifying institution if the
total amount of institutional aid provided to California resident
students by that institution, in any award year, is no less than 50
percent of the total Cal Grant awards received by its students,
unless that institution has fewer than 50 students receiving Cal
Grant awards or charges an annual tuition that is no more than 50
percent of the average of the annual tuition charged by all
institutions to which this subparagraph is applicable.
   (C) As used in this paragraph:
   (i) "Average state support per student" means the total General
Fund support for the University of California and the California
State University divided by the number of California resident
full-time equivalent students for each four-year public segment.
   (ii) "Institutional aid" includes scholarships and fellowships
granted and funded by a postsecondary educational institution or by a
department within that institution, and includes scholarships
targeted to certain individuals based on, for example, state of
residence, major field of study, or athletic team participation, for
which the institution designates the recipient.
   (d) Commencing with the 2000-01 academic year, and each academic
year thereafter, the Cal Grant C award shall be utilized only for
occupational or technical training.
   (e) Commencing with the 2000-01 academic year, and each academic
year thereafter, the Cal Grant T award shall be used only for one
academic year of full-time attendance in a program of professional
preparation that has been approved by the California Commission on
Teacher Credentialing.
   (f) An institution of higher education in this state that
participates in the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant
Program shall not reduce its level of per capita need-based
institutional financial aid to undergraduate students, excluding
loans, below the total level awarded in the 2000-01 academic year.
   (g) The implementation of the policy set forth in this section
shall maintain a balance between the state's policy goals of ensuring
student access to and selection of an institution of higher
education for students with financial need and academic merit.
   (h) It is the policy of the State of California that the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program supplement
the federal Pell Grant program.
   (i) An award under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program shall not guarantee admission to an institution of
higher education or admission to a specific campus or program.