BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1449


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1449 (Lopez)


          As Amended  August 18, 2016


          Majority vote


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          |ASSEMBLY:  |74-1  |(January 25,   |SENATE: |39-0  |(August 24,      |
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          Original Committee Reference:  HIGHER ED.


          SUMMARY:  Exempts, beginning in the 2017-18 academic year, a  
          student from the high school graduation requirement of the  
          California Community College (CCC) Transfer Cal Grant  
          Entitlement Program, if the student was a California resident on  
          his or her 18th birthday.


          The Senate amendments delay implementation of this bill to the  
          2017-18 academic year and make other clarifying changes,  
          including chaptering amendments should both this bill and SB  
          1314 (Block) of the current legislative session be enacted.


          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  
          CCC to a qualifying baccalaureate-offering institution  
          (Education Code Section 69436).  A student must meet specified  








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          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:  According to the Senate Appropriations  
          Committee, CSAC costs are about $1.4 million in the first year,  
          growing to $2.5 million General Fund by full implementation (the  
          fourth year) and out years, to provide a CCC Transfer Cal Grant  
          Entitlement to students that would have otherwise been denied  
          due to not fulfilling the high school graduation requirement.   
          This estimate assumes 177 new recipients would be paid each  
          year.  CSAC also reports estimated one-time administrative costs  
          of $183,000 General Fund to contract out to update applicable  
          recipient forms and to update the grant delivery system to  
          accommodate this change.


          COMMENTS:  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  








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          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 (UC) or California State  
          University (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. 


          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:  
          0004963