California Legislature—2015–16 Regular Session

Assembly Bill No. 1361

Introduced by Assembly Member Burke

February 27, 2015

An act to amend Sections 69436 and 69437.6 of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1361, as introduced, Burke. Student financial aid: Cal Grant Program: veterans.

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.

Under the California Community College Transfer Cal Grant Entitlement Program, a student who transfers from a California community college to a qualifying institution that offers a baccalaureate degree and who was not awarded a Cal Grant A or B Entitlement award, receives a Cal Grant A or B award if, at the time of the transfer, the student meets specified requirements, among which is a requirement that the student not be 28 years of age or older by December 31 of the award year.

This bill would provide that the requirement that a student not be 28 years or older by December 31 of the award year, as described above, would not apply to a former member of the Armed Forces of the United States, as defined, who was seeking a Cal Grant A or B award under this provision, unless he or she received a dishonorable or bad conduct discharge.

The bill would also make nonsubstantive and conforming changes to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

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
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 B award.

(b) Any 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 B award depending
on the eligibility determined pursuant to subdivision (c), if all of
the following criteria begin insert , other than paragraphs (8) and (9), end insert 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. begin insert This paragraph does not apply to a former
member of the Armed Forces of the United States, as defined in
Section 66025.8, unless he or she received a dishonorable or bad
conduct discharge. end insert

(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.

SEC. 2.  

Section 69437.6 of the Education Code is amended to
read:

69437.6.  

(a) An applicant competing for an award under this
article shall meet all the requirements of Article 1 (commencing
with Section 69430).

(b) To compete for a competitive Cal Grant A award, an
applicant shall, at a minimum, meet all of the requirements of
Article 2 (commencing with Section 69434), with the exception
of paragraphs (1) and (8) of subdivision (b) of Section 69434.
However, in lieu of meeting the grade point average requirement
set forth in paragraph (3) of subdivision (b) of Section 69434, an
applicant may submit a community college or college grade point
average of at least 2.4 on a 4.0 scale.

(c) To compete for a competitive Cal Grant B award, an
applicant shall, at a minimum, meet all of the requirements of
Article 3 (commencing with Section 69435), with the exception
of paragraphs (1) and (8) of subdivision (a) of Section 69435.3.
However, in lieu of meeting the grade point average requirements
of paragraph (3) of subdivision (a) of Section 69435.3, a student
may do either of the following:

(1) Demonstrate attainment of a community college or college
grade point average of at least 2.0 on a 4.0 scale.

(2) Reestablish his or her grade point average by completing at
least 16 cumulative units of credit for academic coursework at an
accredited California community college, as defined by the
commission, by regulation, with at least a 2.0 community college
grade point average.

begin delete

(d) To compete for a competitive California Community College
Transfer Cal Grant Award, an applicant shall, at a minimum, meet
the requirements of Article 4 (commencing with Section 69436),
with the exception of paragraphs (8) and (9) of subdivision (b) of
Section 69436.

(e)

end delete

begin insert (d) end insert  All other competitors shall, at a minimum, comply with all
of the requirements of subdivision (b) of Section 69432.9.

begin delete

(f)

end delete

begin insert ( end insert begin insert e) end insert  An individual selected for a Cal Grant A award who enrolls
in a California community college may elect to have the award
held in reserve for him or her for a period not to exceed two
academic years, except that the commission may extend the period
in which his or her award may be held in reserve for up to three
academic years if, in the commission’s judgment, the rate of
academic progress has been as rapid as could be expected for the
personal and financial conditions that the student has encountered.
The commission shall, in this case, hold the award in reserve for
the additional year. Upon receipt of a request to transfer the award
to a tuition or fee charging qualifying institution, the individual
shall be eligible to receive the Cal Grant A award previously held
in reserve if, at the time of the request, he or she meets all of the
requirements of this article. Upon receipt of the request, the
commission shall reassess the financial need of the award recipient.
The commission may prescribe the forms and procedures to be
utilized for the purposes of this section. A recipient’s years of
eligibility for payment of benefits shall be based upon his or her
grade level at the time the award is transferred to the tuition or fee
charging qualifying institution. Any award so held in reserve shall
only be counted once toward the 22,500 awards authorized by this
article.