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 Page 2 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 Page 3 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 Page 4 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