BILL ANALYSIS Ó
AB 1449
Page 1
Date of Hearing: January 12, 2016
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
AB 1449
(Lopez) - As Amended January 5, 2016
SUBJECT: Student financial aid: California Community College
Transfer Cal Grant Entitlement Program
SUMMARY: Authorizes a student to satisfy the California
Community College Transfer Cal Grant Entitlement Program
(Transfer Entitlement) award requirement of receipt of a high
school diploma or equivalency through establishing California
residency. Specifically, this bill:
1)Provides that a student can meet the Transfer Entitlement
award requirement of high school graduation or equivalency by
instead being a California resident on his or her 18th
birthday.
2)Provides that a student may verify that he or she satisfies
the requirements of this paragraph by the presentation of
documents that may include, but not necessarily be limited to,
a California driver's license, California identification card,
high school transcript, or records of a judicial proceeding.
EXISTING LAW: Establishes the Transfer Entitlement,
administered by the California Student Aid Commission (CSAC), to
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provide Cal Grant A or B awards to residents transferring from a
California Community College (CCC) to a qualifying
baccalaureate-offering institution (Education Code Section
69436). A student must meet specified eligibility criteria,
including:
1)Complete the financial aid application by March 2 of the year
prior to the award year.
2)Demonstrate financial need and meet household income/asset
limits, as specified.
3)Attend a CCC in the academic year immediately preceding the
academic year for which the award will be used, earn a grade
point average (GPA) of at least 2.4, meet transfer eligibility
requirements, and be pursuing a baccalaureate degree at a
qualifying institution.
4)Not be 28 years old or older by December 31 of the award year.
5)Graduate from a California high school or equivalent during or
after 2000-01.
FISCAL EFFECT: Unknown.
COMMENTS: Background. The Transfer Entitlement provides
financially needy California students whom did not receive a Cal
Grant A or B award after leaving high school with a "second
chance" to receive an award upon transfer to a qualifying
institution. To receive an award, applicants must meet
eligibility requirements, submit the Free Application for
Federal Student Aid and the Cal Grant GPA Verification Form, and
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complete and return a Certification Form that includes
information on high school attendance and graduation, CCC
attendance, and California residency. In 2013-14, 13,018
students were offered a Transfer Entitlement Cal Grant A, and
39,471 were offered a Transfer Entitlement Cal Grant B.
According to CSAC, the typical Transfer Entitlement awardee is
23 years old, has a household income of $24,511, a GPA of 3.08
and a family size of 2.8.
Purpose of this bill. According to the author, California has
established an unnecessary barrier for nontraditional low-income
transfer students by requiring Transfer Entitlement award
recipients to possess a California high school diploma or
equivalent. The author notes that CCCs are required to admit
all California students over the age of 18 regardless of whether
they have obtained a high school diploma or equivalency.
Further, a high school diploma or equivalency is not a
requirement for admittance at UC or CSU campuses if a student
has satisfied requirements for upper-division transfer from a
CCC. The author argues that access to state and federal
financial aid plays a crucial role in a student's academic
success. This bill seeks to allow CCC transfer students to
access the Transfer Entitlement award regardless of whether they
have obtained a high school diploma or its equivalency.
Consistent with the author's stated intent, Committee staff
recommends an amendment clarifying that this alternative option
is available to students who did not graduate high school or
obtain equivalency.
How many students would this change affect? According to CSAC,
in 2014-15, 319 applicants were denied a Transfer Entitlement
due to lack of high school graduation or equivalent. It is
difficult to know the extent to which this bill could result in
an increase in the number of non-high school graduate applicants
for the Transfer Entitlement. Of note, a relatively low
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percentage of students enrolled in credit courses at CCCs have
not obtained a high school diploma; according to the
Chancellor's Office, in the spring of 2015, 28,751 students
(approximately 2%) did not possess a high school diploma or
equivalency.
What are the implications for verification procedures? The
provisions of this bill authorize a student to verify high
school graduation, equivalency, or residency as of the student's
18th birthday through presentation of various documents,
including high school transcripts and records, California
identification, and judicial proceedings. As previously noted,
CSAC currently verifies high school graduation, school
attendance and residency through a student certification form.
As drafted, this language is not binding. Committee staff
understands the author does not intend to alter CSAC's current
process for high school or residency verification, nor create an
additional step for newly eligible students.
Committee staff recommends removing this clause, contained on
Page 3, lines 33-37.
REGISTERED SUPPORT / OPPOSITION:
Support
None on File
Opposition
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None on File
Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960