BILL ANALYSIS Ó AB 1449 Page 1 Date of Hearing: January 21, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1449 (Lopez) - As Amended January 5, 2016 ----------------------------------------------------------------- |Policy |Higher Education |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill allows a student to qualify for a California Community College (CCC) Transfer Cal Grant Entitlement Program award without having received a high school diploma or equivalent, as long as the student was a California resident on his or her 18th AB 1449 Page 2 birthday. FISCAL EFFECT: According to the California Student Aid Commission, in 2014-15, 319 applicants were denied a Transfer Entitlement due to lack of high school graduation or equivalent. Assuming there are 300 such applicants on average each year 85% of these applicants would obtain an award pursuant to this bill, first-year General Fund costs, assuming an average award of $8,000, would be about $2 million. Annual costs thereafter would be around $4 million. COMMENTS: 1)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 complete and return a Certification Form that includes information on high school attendance and graduation, CCC attendance, and California residency. 2)Purpose. 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, and a high school diploma or equivalency is not a requirement for AB 1449 Page 3 admittance at UC or CSU campuses if a student has satisfied requirements for upper-division transfer from a CCC. AB 1449 allows CCC transfer students to access a Transfer Entitlement award regardless of whether they have obtained a high school diploma or its equivalency. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081