BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1449


                                                                    Page  1





          ASSEMBLY THIRD READING


          AB  
          1449 (Lopez)


          As Amended  January 13, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Higher          |13-0 |Medina, Baker, Bloom, |                    |
          |Education       |     |Chávez, Irwin,        |                    |
          |                |     |Jones-Sawyer, Levine, |                    |
          |                |     |Linder, Low, Olsen,   |                    |
          |                |     |Santiago, Weber,      |                    |
          |                |     |Williams              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Wagner, |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 









                                                                    AB 1449


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          SUMMARY:  Authorizes a student to meet the California Community  
          College Cal Grant Transfer Entitlement (Transfer Entitlement)  
          award requirement of high school graduation or equivalency by,  
          if the student has not graduated from high school or  
          equivalency, being a California resident on his or her 18th  
          birthday.


          EXISTING LAW:  Establishes the Transfer Entitlement,  
          administered by the California Student Aid Commission (CSAC), to  
          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.









                                                                    AB 1449


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          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, CSAC reports that 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:  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.  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 University of California or  
          California State University campuses if a student has satisfied  
          requirements for upper-division transfer from a CCC.  The author  








                                                                    AB 1449


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          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. 




          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:  
          0002583