BILL NUMBER: AB 1318	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 24, 2013
	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   awards  , the California Community College
Transfer Cal Grant Entitlement  Awards   awards
 , the Competitive Cal Grant A and B  Awards 
 awards  , the Cal Grant C  Awards  
awards  , and the Cal Grant T  Awards  
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 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 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 colleges and universities
accredited by the Western Association of Schools and Colleges (WASC)
to help meet the state's higher education needs.
   (b) The maximum award for Cal Grant students attending WASC
accredited private 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 WASC accredited institutions.
   (c) The Cal Grant program effectively and successfully helps
California's private colleges and universities to recruit, retain,
and graduate historically underrepresented students from low-income
families.
   (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.
   (e) Legislative action is needed to adopt a reasonable formula
that supports predictability and supports parity for students at
private 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
nonpublic postsecondary educational institution accredited by the
Western Association of Schools and Colleges shall be set and
maintained at  80   75  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
  General Fund support per student at the California
State University and the University of California, plus the maximum
Cal Grant award at those segments each multiplied by the percentage
of California resident full-time equivalent students at both segments
who attend the respective segment  , 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 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 
    (C)     As used in this paragraph,
"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.