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. AB 2160 Page 2 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. AB 2160 Page 3 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 AB 2160 Page 4 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 AB 2160 Page 5 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 AB 2160 Page 6 OPPOSITION None received.