BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1091| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1091 Author: Eduardo Garcia (D) Amended: 6/1/15 in Assembly Vote: 21 SENATE EDUCATION COMMITTEE: 9-0, 7/15/15 AYES: Liu, Runner, Block, Hancock, Leyva, Mendoza, Monning, Pan, Vidak SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen ASSEMBLY FLOOR: 77-2, 6/3/15 - See last page for vote SUBJECT: Student financial aid: Cal Grant Program SOURCE: Author DIGEST: This bill authorizes the California Student Aid Commission (CSAC) to require verification of high school graduation to be electronically submitted for high school graduates for the purpose of determining financial aid eligibility, as specified, and requires the electronic submission of grade point average (GPA) information on a standardize form. ANALYSIS: Existing law: 1)Authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a AB 1091 Page 2 college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, GPA, California residency and other criteria. (Education Code § 69430-69433) 2)Prohibits a school district from permitting access to pupil records without written parental consent but makes some exceptions, as specified. Existing 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. However, information permitting the personal identification of a pupil or his or her parents, may be disclosed only as necessary for the purpose 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. (EC § 49076) 3)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. (EC § 69432) 4)Requires a GPA for all high school seniors at public schools to be submitted to CSAC electronically by a school or school district official. Requires a school district to provide an opportunity for a student and/or guardian to opt out and requires students and/or guardians to be notified of the opportunity to opt out. (EC § 96432.9) This bill: 1)Authorizes the CSAC to require verification of high school graduation to be electronically submitted for high school graduates who graduated from a public school, including charter schools, in the prior academic year. AB 1091 Page 3 2)Provides for an exception to the electronic submission of high school graduation information for students who have opted out, as specified under existing law. 3)Requires the electronic submission of GPA information on a standardize form. 4)Declares legislative intent that high school districts verify the graduation of their students in time to meet the established deadlines and that the CSAC make available to high schools or high school districts a list of seniors who have and have not completed the Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application. 5)Establishes if the Commission on State Mandates determines that this bill contains costs mandated by the state, the state shall reimburse the applicable entities. Comments Need for the bill? According to author, many students often times become overwhelmed with the Cal Grant application process and fail to submit verification of high school graduation to CSAC. The author further asserts that missing this important step could make the difference between a student attending college or not. This bill aims to streamline the financial aid process and increase Cal Grant and FAFSA completion rates by requiring the electronic submission of high school graduation information. Existing process for verification. According to the CSAC the method for providing verification varies depending on the school district. For the most part, it is the responsibility of the school district to submit the information to CSAC; however, if the district fails to provide the information, the responsibility falls on the student. Generally, most submissions are electronic, but thousands of paper forms are submitted that have to be keyed in manually. This bill seeks to give the CSAC the authority to create a standardized process for collecting information directly from school districts when determining Cal Grant eligibility. Privacy rights? The federal Family Educational Rights and Privacy Act applies to all schools that receive federal funding AB 1091 Page 4 through the U.S. Department of Education and protects the privacy of student 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 the student's GPA and graduation information to CSAC when a student is applying for financial aid. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee: The CSAC indicates one position and $120,000 will be needed to design, implement, and provide support to schools and school districts for the new tool within its existing Grant Delivery System. (General Fund) Unknown, potentially significant reimbursable state mandate costs if the Commission on State Mandates determines this bill to impose a mandate should the CSAC require verification of high school graduation to be electronically submitted for all former grade 12 students who graduated. The potential for it to be determined a mandate is unclear. If so determined, it could create pressure to increase funding for the K-12 Mandate Block Grant, to reflect the inclusion of the new mandate. SUPPORT: (Verified8/27/15) California School Boards Association Coachella Valley Economic Partnership The Education Trust-West OPPOSITION: (Verified8/27/15) None received AB 1091 Page 5 ASSEMBLY FLOOR: 77-2, 6/3/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NOES: Bigelow, Beth Gaines NO VOTE RECORDED: Thurmond Prepared by:Olgalilia Ramirez / ED. / (916) 651-4105 8/31/15 11:43:40 **** END ****