BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1449             
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          |Author:    |Lopez                                                |
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          |Version:   |June 20, 2016                            Hearing     |
          |           |Date:    June 29, 2016                               |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Olgalilia Ramirez                                    |
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          Subject:  Student financial aid:  California Community College  
          Transfer Cal Grant Entitlement Program


            SUMMARY
          
          This bill exempts a student from the high school graduation  
          requirement of the California Community College (CCC) Transfer  
          Cal Grant Entitlement Program, as long as the student was a  
          California resident on his or her 18th birthday.

            BACKGROUND
          
          Existing law: 

             1)   Authorizes the Cal Grant program, administered by the  
               Commission, to provide grants to financially needy students  
               to attend a college or university.  The Cal Grant programs  
               include both the entitlement and the competitive Cal Grant  
               awards.  The program consists of the Cal Grant A, Cal Grant  
               B, and Cal Grant C programs, and eligibility is based upon  
               financial need, grade point average (GPA), California  
               residency and other criteria.  (Education Code §  
               69430-69433)

             2)   Establishes the Transfer Entitlement, to provide Cal  
               Grant A and B awards to every student who graduated from a  
               California high school after June 30, 2000, was a  
               California resident at the time of high school graduation,  
               transferred to a qualifying baccalaureate-degree granting  







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               institution from a CCC during the award year, was under the  
               age of 28 at the time of the transfer, and had a minimum  
               CCC GPA of 2.4.  (EC § 69436)

             3)   Requires the commission, or a qualifying institution to  
               require that applicant to affirm, in writing, under penalty  
               of perjury, that he or she meets the requirements for Cal  
               Grant eligibility and notify each person who receives a  
               preliminary award  that his or her award is subject to an  
               audit.  (EC § 69436 (d)(3)(A))

             4)   Requires the commission to select, at random, a minimum  
               of 10 percent of the new and renewal awards and require,  
               prior to the disbursement of Cal Grant funds to the  
               affected postsecondary institution, that the institution  
               verify that the recipient meets specified requirements.   
               (EC § 69436 (d)(3)(B))




            ANALYSIS
          
               This bill exempts a student from the high school graduation  
               requirement of the California Community College (CCC)  
               Transfer Cal Grant Entitlement Program, as long as the  
               student was a California resident on his or her 18th  
               birthday. 

          STAFF COMMENTS
          
          1)   Need for the bill.  Under the current Transfer Entitlement  
               requirements, a student must graduate from a California  
               high school or equivalent to qualify for an award payment.  
               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 admittance at University of  
               California (UC) or California State University (CSU)  








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               campuses if a student has satisfied requirements for  
               upper-division transfer from a CCC. This bill seeks to  
               allow returning students, who did not graduate high school,  
               to earn a Cal Grant upon transferring to a 4-year college  
               or university.

          2)   California Community College Transfer Entitlement program.  
               The CCC Transfer Entitlement program extends the guarantee  
               of Cal Grant eligibility to financially needy students that  
               start at a community college and transfer to a four-year  
               university, similar to the guarantee provided to high  
               school students entering directly into four year college or  
               university.  This award covers tuition at CSU and the UC,  
               as well as tuition support at qualified private California  
               colleges and universities. Transfer Entitlement Award  
               applicants must meet certain requirements at the time of  
               transfer from a California Community College to a  
               qualifying institution offering baccalaureate degree  
               programs. 

               A CCC transfer student by nature must demonstrate an  
               ability to complete college course work, and perform at a  
               level sufficient to gain admission to a 4-year institution.  
               For those students who did not graduate from high school,  
               this bill would provide a new education benefit that  
               otherwise would not have been available.

          3)   Verification of California residency status.  A student  
               must be a California resident on his or her 18th birthday  
               to qualify for an award under the provisions of this bill.  
               Current transfer students are required to complete a  
               Certification Form (G6) that includes information on high  
               school attendance and graduation, CCC attendance, and  
               California residency. The form serves as the final piece of  
               a completed Transfer Entitlement application. According to  
               the California Student Aid Commission, the "resident at 18"  
               requirement would be added to the form, and go through  
               similar verification as is other information that is  
               required to establish eligibility including being subject  
               to an audit.

          4)   Fiscal Effect. According to the Assembly Appropriation  
               Committee the bill imposes first-year General Fund costs of  
               about $2 million and annual costs thereafter would be  








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               around $4 million.  Additionally, the California Student  
               Aid Commission is requesting administrative support to  
               ensure that necessary changes to the Grant Delivery System,  
               as well as necessary changes to the application process,  
               can be implemented in a timeframe consistent with the bill.  


            SUPPORT
          
          None received.

            OPPOSITION
           
           None received.

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