Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1091

Introduced by Assembly Member Eduardo Garcia

February 27, 2015

An act to begin delete amend Section 69436 of end delete begin insert add Sections 69433.91 and 69519.2 to end insert the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1091, as amended, Eduardo Garcia. Student financial aid: begin delete California Community College Transfer Entitlement awards. end delete begin insert Cal Grant Program. end insert

The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

This bill would begin delete make nonsubstantive changes in provisions relating to the California Community College Transfer Entitlement awards. end delete begin insert require the commission to: (1) develop and make available on its Internet Web Site to each school district, a graduation verification template for the school district to input and upload graduation data concerning its pupils for use by the commission, and a report that lists the names of all grade 12 pupils within a school district who have and have not completed the Free Application for Federal Student Aid or the California Dream Act application for use by the school district, and (2) align the collection and reporting of information between the United States Department of Education’s Free Application for Federal Student Aid system, the commission, and school districts, that is used to determine whether applicants are eligible for Cal Grants and whether to issue end insert begin insert Cal Grant awards. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 69433.92 is added to the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

begin insert 69433.92. end insert   

(a) The commission shall develop, and make
available on its Internet Web site to each school district, a
graduation verification template for use by the school district to
input and upload graduation verification data for its pupils, so
that the commission can determine if those pupils are eligible for
Cal Grants.

(b) The commission shall, to the greatest extent feasible, align
the collection and reporting of information between the United
States Department of Education’s Free Application for Federal
Student Aid system, the commission, and school districts that is
used to determine if applicants are eligible for Cal Grants and
whether to issue Cal Grant awards for students who attend
qualifying institutions.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 69519.2 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 69519.2. end insert   

The commission shall develop, and make available
on its Internet Web site to each school district for the district’s
use, a standard report that lists the names of all grade 12 pupils
within the school district who have and have not completed the
Free Application for Federal Student Aid or the California Dream
Act application.

end insert

begin delete

SECTION 1.  

Section 69436 of the Education Code is amended
to read:

69436.  

(a) A student who was not awarded a Cal Grant A or
Cal Grant B award pursuant to Article 2 (commencing with Section
69434) or Article 3 (commencing with Section 69435) at the time
of his or her high school graduation but, at the time of transfer
from a California community college to a qualifying baccalaureate
program, meets all of the criteria set forth in subdivision (b), shall
be entitled to a Cal Grant A or Cal Grant B award.

(b) A California resident transferring from a California
community college to a qualifying institution that offers a
baccalaureate degree is entitled to receive, and the commission,
or a qualifying institution pursuant to Article 8 (commencing with
Section 69450), shall award, a Cal Grant A or Cal Grant B award
depending on the eligibility determined pursuant to subdivision
(c), if all of the following criteria are met:

(1) A complete official financial aid application has been
submitted or postmarked pursuant to Section 69432.9, no later
than the March 2 of the year immediately preceding the award
year.

(2) The student demonstrates financial need pursuant to Section
69433.

(3) The student has earned a community college grade point
average of at least 2.4 on a 4.0 scale and is eligible to transfer to
a qualifying institution that offers a baccalaureate degree.

(4) The student’s household has an income and asset level not
exceeding the limits set forth in Section 69432.7.

(5) The student is pursuing a baccalaureate degree that is offered
by a qualifying institution.

(6) He or she is enrolled at least part time.

(7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section
69430).

(8) The student will not be 28 years of age or older by December
31 of the award year.

(9) The student graduated from a California high school or its
equivalent during or after the 2000-01 academic year.

(10) (A) Except as provided for in subparagraph (B), the student
attended a California community college in the academic year
immediately preceding the academic year for which the award will
be used.

(B) A student otherwise eligible to receive an award pursuant
to this section, who attended a California community college in
the 2011-12 academic year, may use the award for the 2012-13
and 2013-14 academic years.

(c) The amount and type of the award pursuant to this article
shall be determined as follows:

(1) For applicants with income and assets at or under the Cal
Grant A limits, the award amount shall be the amount established
pursuant to Article 2 (commencing with Section 69434).

(2) For applicants with income and assets at or under the Cal
Grant B limits, the award amount shall be the amount established
pursuant to Article 3 (commencing with Section 69435).

(d) (1) A student meeting the requirements of paragraph (9) of
subdivision (b) by means of high school graduation, rather than
its equivalent, shall be required to have graduated from a California
high school, unless that California resident graduated from a high
school outside of California due solely to orders received from a
branch of the United States Armed Forces by that student or by
that student’s parent or guardian that required that student to be
outside of California at the time of high school graduation.

(2) For the purposes of this article, both of the following are
exempt from the requirements of subdivision (e) of Section 69433.9
and paragraph (9) of subdivision (b) of this section:

(A) A student for whom a claim under this article was paid prior
to December 1, 2005.

(B) A student for whom a claim under this article for the
2004-05 award year or the 2005-06 award year was or is paid on
or after December 1, 2005, but no later than October 15, 2006.

(3) (A) The commission, or a qualifying institution pursuant
to Article 8 (commencing with Section 69450), shall make
preliminary awards to all applicants currently eligible for an award
under this article. At the time an applicant receives a preliminary
award, the commission, or a qualifying institution pursuant to
Article 8 (commencing with Section 69450), shall require that
applicant to affirm, in writing, under penalty of perjury, that he or
she meets the requirements set forth in subdivision (e) of Section
69433.9, paragraph (9) of subdivision (b) of this section, and
paragraph (1) of this subdivision. The commission, or a qualifying
institution pursuant to Article 8 (commencing with Section 69450),
shall notify each person who receives a preliminary award under
this paragraph that his or her award is subject to an audit pursuant
to subparagraph (B).

(B) The commission shall select, at random, a minimum of 10
percent of the new and renewal awards made under subparagraph
(A), and shall require, prior to the disbursement of Cal Grant funds
to the affected postsecondary institution, that the institution verify
that the recipient meets the requirements of subdivision (e) of
Section 69433.9, paragraph (9) of subdivision (b) of this section,
and paragraph (1) of this subdivision. An award that is audited
under this paragraph and found to be valid shall not be subject to
a subsequent audit.

(C) Pursuant to Section 69517.5, the commission shall seek
repayment of any and all funds found to be improperly disbursed
under this article.

(D) On or before November 1 of each year, the commission
shall submit a report to the Legislature and the Governor including,
but not necessarily limited to, both of the following:

(i) The number of awards made under this article in the
preceding 12 months.

(ii) The number of new and renewal awards selected, in the
preceding 12 months, for verification under subparagraph (B), and
the results of that verification with respect to students at the
University of California, at the California State University, at
independent nonprofit institutions, and at independent for-profit
institutions.

end delete