California Legislature—2015–16 Regular Session

Assembly Bill No. 831

Introduced by Assembly Member Bonilla

February 26, 2015

An act to amend Sections 66021.2 and 69432 of the Education Code, relating to student financial aid, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 831, as introduced, 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. Existing law specifies the amounts of the maximum Cal Grant A and B awards for students attending private nonprofit postsecondary educational institutions and private for-profit postsecondary educational institutions that are regionally accredited, as specified.

This bill would change, in accordance with a prescribed formula, the maximum Cal Grant awards for students attending private nonprofit postsecondary educational institutions, commencing with the 2015-16 award year. The bill would impose requirements on private nonprofit postsecondary educational institutions to provide specified data to a specified association as a condition for the funding of Cal Grant maximum awards to their students, and would require the association to report on that information to the Legislature, the Governor, the Department of Finance, and the Legislative Analyst’s Office.

The bill would also make conforming changes.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. 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.

(b) The maximum award for Cal Grant students attending
WASC accredited private nonprofit colleges and universities has
not increased since its maximum of $9,708 in 1999:

(1) It was cut by almost 15 percent for the 2004-05 and 2005-06
cohorts.

(2) It was cut by 5 percent for new and renewal students for the
2012-13 award year, and by an additional 1.5 percent in the
2013-14 award year. It is scheduled for an additional cut of 11.3
percent in the 2015-16 award year for new awardees.

(3) If the 2000 Cal Grant maximum award had kept up with the
rate of inflation, the 2014 award level would be $13,346.

(4) The proposed maximum award for the 2015-16 award year
will be the lowest amount California has invested in academically
qualified, low-income students that attend private nonprofit WASC
accredited institutions since the 1997-98 academic year.

(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 California families.

(d) Predictable and stable funding formulas and eligibility
requirements ensure that the state maximizes its investment by
allowing families to better plan and pay for higher education, in
addition to incentivizing private nonprofit colleges and universities
to enroll more low-income Californians.

(e) Legislative action is needed to adopt a reasonable and viable
formula that supports predictability and parity for California
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.

begin insert

(3) Notwithstanding paragraphs (1) and (2), and
notwithstanding Section 69432:

end insert begin insert

(A) The maximum Cal Grant award for a student attending a
private nonprofit postsecondary educational institution shall be
set and maintained at 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 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.

end insert begin insert

(i) For the 2015-16 award year, the maximum award shall be
nine thousand eighty-four dollars ($9,084).

end insert begin insert

(ii) For the 2016-17 award year, the maximum award shall be
70 percent of the amount calculated pursuant to subparagraph
(A).

end insert begin insert

(iii) For the 2017-18 award year, the maximum award shall be
80 percent of the amount calculated pursuant to subparagraph
(A).

end insert begin insert

(iv) For the 2018-19 award year, the maximum award shall be
90 percent of the amount calculated pursuant to subparagraph
(A).

end insert begin insert

(v) For the 2019-20 award year and each year thereafter, the
maximum award shall be 100 percent of the amount calculated
pursuant to subparagraph (A).

end insert begin insert

(B) As a condition for the funding of Cal Grant maximum
awards to its students pursuant to subparagraph (A), a private
nonprofit postsecondary educational institution shall submit
performance metrics to the Association of Independent California
Colleges and Universities. The association, in collaboration with
the public segments of higher education, shall determine the form
and content of these metrics, to ensure data are defined, collected,
and reported in a consistent and comparable manner, and to ensure
data integrity. The association shall provide that information in
a cumulative report generated by the association to the Legislature,
the Governor, the Department of Finance, and the Legislative
Analyst’s Office on or before March 15, 2016, and on or before
March 15 of each year thereafter. The report shall be submitted
to the Legislature in compliance with Section 9795 of the
Government Code, and shall include all of the following data with
respect to each participating private nonprofit postsecondary
educational institution:

end insert begin insert

(i) The number of undergraduate students enrolled in that
institution.

end insert begin insert

(ii) The percentage of undergraduate students of that institution
who are California residents.

end insert begin insert

(iii) The number of graduate students enrolled in that institution.

end insert begin insert

(iv) The number of transfer students from the California
Community Colleges enrolled in that institution.

end insert begin insert

(v) The percentage of undergraduate students of that institution
who are transfer students from the California Community Colleges.

end insert begin insert

(vi) The number of Pell Grant recipients enrolled in that
institution.

end insert begin insert

(vii) The percentage of undergraduate students of that institution
who are Pell Grant recipients.

end insert begin insert

(viii) The number of Cal Grant recipients enrolled in that
institution. With respect to those Cal Grant recipients:

end insert begin insert

(I) Their ethnic composition, expressed in percentages.

end insert begin insert

(II) The median amount of institutional aid provided to them.

end insert begin insert

(ix) The percentage of undergraduate students of that institution
who are Cal Grant recipients.

end insert begin insert

(x) The four- and six-year graduation rates for freshman
entrants of that institution:

end insert begin insert

(I) Disaggregated by Pell Grant recipients.

end insert begin insert

(II) Disaggregated by Cal Grant recipients.

end insert begin insert

(xi) The two- and three-year graduation rates for transfer
students from the California Community Colleges:

end insert begin insert

(I) Disaggregated by Pell Grant recipients.

end insert begin insert

(II) Disaggregated by Cal Grant recipients.

end insert begin insert

(xii) The number of degrees awarded annually by the institution
in total and in each of the following categories:

end insert begin insert

(I) Undergraduate students who first enrolled in the institution
as freshmen.

end insert begin insert

(II) Undergraduate students who first enrolled in the institution
as transfer students.

end insert begin insert

(III) Graduate students.

end insert begin insert

(IV) Pell Grant recipients.

end insert begin insert

(V) The number of degrees or credentials awarded in
health-related fields, teacher preparation, and the fields of science,
technology, engineering, and mathematics (STEM).

end insert begin insert

(C) The collection, reporting, and housing of data for the report
prepared pursuant to subparagraph (B) shall be conducted both
in a manner that ensures data integrity and security and that is in
conformance with any federal and state laws on the confidentiality
of student information.

end insert

(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.

SEC. 3.  

Section 69432 of the Education Code is amended to
read:

69432.  

(a) Cal Grant Program awards shall be known as “Cal
Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,”
“California Community College Transfer Entitlement Awards,”
“Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,”
and “Cal Grant T Awards.”

(b) Maximum award amounts for students at independent
institutions and for Cal Grant C and T awards shall be identified
in the annual Budget Act. Maximum award amounts for Cal Grant
A and B awards for students attending public institutions shall be
referenced in the annual Budget Act.

(c) (1) Notwithstanding subdivision (b), begin delete and subdivision (c) of
Section 66021.2, end delete commencing with the 2013-14 award year, the
maximum tuition award amounts for Cal Grant A and B awards
for students attending private for-profit and nonprofit
postsecondary educational institutions shall be as follows:

(A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.

(B) For the 2014-15 award year, nine thousand eighty-four
dollars ($9,084) for new recipients attending private nonprofit
postsecondary educational institutions. For the 2015-16 award
year and each award year thereafter, begin delete eight thousand fifty-six dollars
($8,056) for new recipients attending private nonprofit
postsecondary educational institutions. end delete begin insert the amount determined
pursuant to paragraph (3) of subdivision (c) of Section 66021.2. end insert

(2) The renewal award amount for a student whose initial award
is subject to a maximum award amount specified in this subdivision
shall be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.

(3) Notwithstanding subparagraph (A) of paragraph (1),
begin insert commencing with the 2015-16 award year, the maximum tuition
award amount for end insert new recipients attending private for-profit
postsecondary educational institutions that are accredited by the
Western Association of Schools and Colleges as of July 1, 2012,
shall begin delete have the same maximum tuition award amounts as are set
forth in subparagraph (B) of paragraph (1). end delete begin insert be eight thousand
fifty-six dollars ($8,056). end insert

SEC. 4.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to set the amounts of Cal Grant awards for students who
are attending private nonprofit postsecondary educational
institutions before the commencement of the 2015-16 award year,
it is necessary that this act take effect immediately.