BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1583


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          ASSEMBLY THIRD READING


          AB  
          1583 (Santiago)


          As Amended  May 31, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Higher          |9-2  |Medina, Bloom, Irwin, |Baker, Linder       |
          |Education       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Jones-Sawyer, Levine, |                    |
          |                |     |Low, Santiago, Weber, |                    |
          |                |     |Williams              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |14-6 |Gonzalez, Bloom,      |Bigelow, Chang,     |
          |                |     |Bonilla, Bonta,       |Gallagher, Jones,   |
          |                |     |Calderon, Daly,       |Obernolte, Wagner   |
          |                |     |Eggman, Eduardo       |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                    AB 1583


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          SUMMARY:  Expands the California Community College (CCC) Board  
          of Governors (BOG) Fee Waiver Program (BOGFW) to students with  
          any financial need.  Specifically, this bill:  


          1)Declares Legislative intent to establish a California  
            affordability promise to ensure more Californians have the  
            opportunity to access and afford community college in  
            California.


          2)Establishes the following findings and declarations:


             a)   The BOGFW offsets tuition and fees for more than 60% of  
               full-time CCC students and nearly half of all CCC students,  
               with the only requirements being that students demonstrate  
               financial need and meet reasonable academic progress  
               standards.


             b)   Despite the many strengths of the BOGFW, eligibility is  
               currently limited to students with a minimum need of  
               $1,104.


             c)   It is the intent of the Legislature to ensure all  
               Californians with financial need are eligible for the  
               BOGFW.


          3)Amends the BOGFW eligibility criteria to include students who  
            demonstrate financial need of at least $1, in accordance with  
            the methodology set forth in federal law or regulation for  
            determining the expected family contribution of students  
            seeking financial aid.









                                                                    AB 1583


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          4)Provides for reimbursement to local agencies and school  
            districts if the Commission on State Mandates determines that  
            this bill contains mandated state costs. 


          EXISTING LAW:  


          1)Requires a BOGFW for any students who meet all of the  
            following requirements:


             a)   Meets minimum academic and progress standards, as  
               adopted by BOG; 


             b)   Meets one of the following criteria:


               i)     At the time of enrollment, is a recipient of  
                 benefits under the Temporary Assistance for Needy  
                 Families program, the Supplemental Security Income/State  
                 Supplementary Payment Program, or a general assistance  
                 program; or,


               ii)    Demonstrates eligibility according to income  
                 standards established by regulations of the BOG; or, 


               iii)   Demonstrates financial need in accordance with the  
                 methodology set forth in federal law or regulation for  
                 determining the expected family contribution of students  
                 seeking financial aid.  (Education Code Section 76300).


          2)The 2015-16 Budget Act provided $39 million to be distributed  
            to students receiving the Cal Grant B Access Award and taking  








                                                                    AB 1583


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            12 units or more.  The CCC Chancellor's Office was required to  
            determine the number of students eligible for funding and  
            distribute an equal amount of funding to each student.  In  
            September of 2015, the Chancellor's Office announced the  
            Full-Time Student Success Grant to provide an additional $600  
            supplement to qualified students.  The Governor's 2016-17  
            January Budget proposes to continue this program.   


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, the CCC Chancellor's Office estimates that over  
          33,000 additional students would initially become eligible for a  
          fee waiver, at a cost of about $23 million (General Fund  
          Proposition 98 of 1988), from changing the financial need  
          eligibility criteria to $1.


          COMMENTS:  Purpose of this bill.  According to the author, "in  
          2025, California faces an estimated shortage of 2.4 million  
          college degree and certificate holders.  To meet the demand,  
          California has and must continue to invest significantly in  
          need-based financial aid for CCC students.  Despite the many  
          strengths of the BOGFW, eligibility is currently limited to  
          students who demonstrate financial need via various methods, and  
          these methods can unfortunately exclude various students with  
          low to lower-middle income and/or financial need.  This bill  
          strengthens and expands the BOGFW to ensure more Californians  
          have the opportunity to access and afford community college."


          BOGFW income limitations.  In 1984, California enacted the first  
          CCC enrollment fee at $5 per unit, with a maximum of $50 per  
          semester and $100 per year.  Simultaneously, the BOG was  
          required to establish a financial aid program to negate the  
          effect of the introduction of enrollment fees on access for low  
          income students (BOGFW).  The program was designed to make sure  
          that students with financial need did not face a barrier to  
          enrollment.  Until 2012, the BOGFW was awarded to any student  
          demonstrating at least $1 of financial need.  In 2012, in  








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          response to a growing population of students applying for and  
          receiving BOGFW, a policy change was made to require students to  
          demonstrate full need for the aid awarded; $1104 based on  
          current CCC fees.  Approximately 21,000 students lost BOGFW in  
          2012-13 due to this change.  This bill would return need  
          eligibility to the $1 threshold.




          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:  
          0003088