BILL ANALYSIS Ó AB 1449 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1449 (Lopez) As Amended August 18, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |74-1 |(January 25, |SENATE: |39-0 |(August 24, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 1449 Page 2 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 AB 1449 Page 3 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