BILL ANALYSIS                                                                                                                                                                                                    Ó






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       AB 2160
          AUTHOR:        Ting
          AMENDED:       June 18, 2014
          FISCAL COMM:   Yes            HEARING DATE:  June 25, 2014
          URGENCY:       No             CONSULTANT:    Kathleen  
          Chavira

           SUBJECT  :  Cal Grant GPAs.
          
           SUMMARY  

          This bill requires the California Student Aid Commission to  
          require electronic submission of the GPA of all 12th grade  
          students at public schools and charter schools, with  
          specified exceptions, deems all 12th grade students in a  
          California public school to be Cal Grant applicants for  
          this purpose, requires that parents be notified of such and  
          that pupils be provided an opportunity to opt out of such  
          designation by a school district or charter school. 
           
          BACKGROUND  

          Current law requires GPAs for Cal Grant A and B applicants  
          to be submitted to CSAC; requires GPAs to include a  
          certification by a school official that the GPA is  
          accurately reported; authorizes CSAC to establish grace  
          periods for the receipt of GPAs and corrections; and,  
          establishes Legislative intent that high schools and  
          institutions of higher education certify GPAs of students  
          in time to meet Cal Grant application deadlines.  (EDC §  
          69432) 

          A school district is prohibited from permitting access to  
          pupil records without written parental consent but makes  
          some exceptions, as specified.  Current law authorizes  
          school districts to release information from pupil records  
          to agencies or organizations in connection with the  
          application of a pupil for, or receipt of, financial aid.   









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          However, information permitting the personal identification  
          of a pupil or his or her parents may be disclosed only as  
          may be necessary for purposes as to determine the  
          eligibility of the pupil for financial aid, to determine  
          the amount of the financial aid, to determine the  
          conditions that will be imposed regarding the financial  
          aid, or to enforce the terms or conditions of the financial  
          aid.  (EDC § 49076)

          The federal Family Educational Rights and Privacy Act  
          (FERPA) regulations authorize an educational agency or  
          institution to disclose personally identifiable information  
          from an education record of a student without consent if  
          the disclosure meets one of several specified conditions.   
          These include an instance in which the disclosure is in  
          connection with financial aid for which the student has  
          applied or which the student has received, if the  
          information is necessary to:

             a)   Determine eligibility for the aid;

             b)   Determine the amount of the aid;

             c)   Determine the conditions for the aid; or

             d)   Enforce the terms and conditions of the aid.  (34  
               CFR 99.31(a)(4)
           
          ANALYSIS
           
           This bill  :

          1)   Deems each student enrolled in 12th grade in a  
               California public school to be a Cal Grant applicant.

          2)   Requires every school district, or charter school, by  
               October 15 annually, to: 

                    a)             Notify the parent/guardian of each  
                    12th grade student that the student will be  
                    deemed a Cal Grant applicant.










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                    b)             Provide an opportunity for the  
                    student to opt out of being automatically deemed  
                    a Cal Grant applicant. 

          3)   Requires that the California Student Aid Commission  
               require electronic submission of a grade point average  
               (GPA) for each 12th grade student at public schools,  
               including charter schools, each academic year.

          4)   Provides for an exception to the electronic submission  
               of GPA requirements for:

                    a)             Students who have opted out.  

                    b)             Students permitted, at the  
                    discretion of the CSAC to submit a GPA in a  
                    nonelectronic format or to provide tests scores  
                    in lieu of a GPA.

           STAFF COMMENTS  

           1)   Need for the bill  .   According to the author, while  
               some districts already provide GPAs to CSAC for all or  
               some students, many do not.  The author notes that Los  
               Angeles and San Francisco unified school districts are  
               already providing GPAs for all high school seniors to  
               CSAC and, according to the author, report that costs  
               for computer programming are minor and absorbable and  
               districts experienced an overall cost savings  
               associated with high school counselors no longer being  
               required to complete paper forms for students.  The  
               author also notes that CSAC reported processing over  
               70,000 paper GPA forms in 2013, taking significant  
               staff time.  The author believes that overall cost  
               savings associated with this bill could result in more  
               time for high school counselors and CSAC to outreach  
               to students encouraging Free Application for Federal  
               Student Aid (FAFSA) completion.  Without legislation,  
               the author argues "it would take several years for all  
               school districts to implement the best practice in  










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               this bill."  

           2)   Education Trust-West Report  .  In 2013 the Education  
               Trust-West issued its report The Cost of Opportunity  
               which found that only 54% of California's 12th graders  
               completed a FAFSA in 2012, and only 50% completed the  
               both the FAFSA and submitted a GPA verification, both  
               steps necessary to apply for a Cal Grant by the March  
               2nd deadline.  In 2014, a follow up Equity Alert  
               entitled Doorways to College Aid: Boosting Access to  
               Financial Aid in California found that in 2013 the  
               rates of completion of the FAFSA and Cal Grant  
               applications increased statewide by 7% and 8%  
               respectively for a total of 25,000 additional FAFSA  
               completions and more than 30,000 additional Cal Grant  
               applications.  However, 42% (170,000) of 12th graders  
               from the class of 2013 still did not complete a Cal  
               Grant application. 

               The report notes the higher completion rates were the  
               results of efforts at the local level which include an  
               early focus on FAFSA completion and the electronic  
               submission of GPAs for all students.  An analysis of  
               districts using electronic GPA found a 10 percent  
               boost in Cal Grant Completion for those districts.   
               The average Cal Grant completion rate for these  
               districts was 71 percent, compared to 56 percent for  
               other districts.  The report also noted that some  
               districts are hesitant to adopt this practice due to  
               privacy concerns.

               Among other things, the report recommended that all  
               high schools and districts should electronically  
               submit GPA and graduation verification for all high  
               school seniors.  This bill implements this  
               recommendation.

           3)   Privacy rights  .  The federal Family Educational Rights  
               and Privacy Act (FERPA) applies to all schools that  
               receive federal funding through the U.S. Department of  
               Education and protects the privacy of student  










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               educational records.  Generally, schools must have  
               written permission from the parent or eligible student  
               in order to release any information from a student's  
               educational record.  However, schools are authorized  
               to disclose records without consent to specific  
               parties or under specific conditions, including to  
               appropriate parties in connection with financial aid  
               to a student.  This exemption is currently used to  
               authorize the provision of student GPAs to CSAC when a  
               student is applying for financial aid.  

               This bill deems all 12 graders to be Cal Grant  
               applicants, but, in essence would require districts to  
               disclose the GPAs of students who are not necessarily  
               applying, and may never apply, for financial aid.   
               Although this bill was amended in the Assembly  
               Education Committee to require the written permission  
               of parents or guardians prior to submitting the GPAs  
               of students who are not seeking financial aid, it was  
               recently amended to 
               replace that requirement with an "opt out" provision  
               for students. 
               Notwithstanding the laudable intentions of the bill,  
               to broaden access to the Cal Grant program, the  
               Committee may wish to consider whether the provision  
               of an "opt out" alternative sufficiently assures the  
               privacy of students and families who might choose not  
               to participate in a state financial aid program.

           SUPPORT  

          Association of Independent California Colleges and  
          Universities
          California Association of School Business Officials
          California School Boards Association
          California State Student Association
          California State University
          San Francisco Unified School District
          The Education Trust West
          University of California
          University of California Student Association










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           OPPOSITION

           None received.