BILL NUMBER: AB 1721 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 31, 2016
INTRODUCED BY Assembly Member Medina
(Coauthors: Assembly Members Chiu, Low, Rodriguez, Santiago, and
Ting)
JANUARY 28, 2016
An act to amend Sections 69435, 69436, and
69437 and 69439 of the Education Code, relating to student
financial aid.
LEGISLATIVE COUNSEL'S DIGEST
AB 1721, as amended, Medina. Student financial aid: Cal Grant
Program.
(1) The Cal Grant Program establishes the Cal Grant A and B
Entitlement awards, the California Community College Transfer
Entitlement awards, the Competitive Cal Grant A and B awards, the Cal
Grant C awards, and the Cal Grant T awards under the administration
of the Student Aid Commission, and establishes eligibility
requirements for awards under these programs for participating
students attending qualifying institutions, as defined.
This bill would express the intent of the Legislature to renew
California's commitment to college affordability by increasing the
aid available to needy students students,
and, specifically, broadening access to financial aid to
students enrolled in California community college career technical
education programs leading to industry valued credentials,
through expanding the Cal Grant Program.
(2) Under existing law, an award for access costs, as defined,
under the Cal Grant B Entitlement Program is limited to no more than
$1,551.
This bill would raise the amount of the maximum award for access
costs under the Cal Grant B program to $3,000.
(3) Under existing law, to be eligible for an award under the
California Community College Transfer Entitlement Program, an
applicant may not be 28 years of age or older by December 31 of the
award year, and is required to have attended a California community
college in the academic year immediately preceding the academic year
for which the award will be used, among other requirements.
This bill would instead provide that an applicant for an award
under the California Community College Transfer Entitlement Program
may not be 31 years of age or older by December 31 of the award year,
and is required to have attended a California community college no
more than 3 academic years before the academic year for which the
award will be used, among other requirements.
(4)
(2) Under existing law, no more than a total of 25,750
Competitive Cal Grant A and B awards may be granted annually.
This bill bill, commencing with the
2016-17 academic year , would raise that limit to
30,000. 34,000. The bill would, effective
with the fall term or semester of the 2017-18 academic year, make
students enrolled in occupational or technical training
courses leading to industry valued credentials of no less than 4
months in length at a California community college eligible for Cal
Grant B awards under an existing allocation reserved for community
college students, notwithstanding an existing requirement that limits
Cal Grant B awards to for-credit instructional programs that are not
less than one academic year in length.
(3) Existing law requires a Cal Grant C award to be utilized only
for occupational or technical training in a course of not less than 4
months. Existing law requires that there be the same number of Cal
Grant C awards each year as were made in the 2000-01 fiscal year.
This bill instead would require that there be the same number of
Cal Grant C awards each year as were paid in the 2015-16 fiscal year.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares all of the
following:
(1) To remain economically competitive, California will need to
produce 11,900,000 degrees and credentials by 2025, but the state is
only estimated to produce 9,500,000, which would create a degree and
credential attainment gap of 2,400,000 by 2025.
(2) California's community colleges have strong transfer
preparation and career technical education missions and are well
positioned to close this impending gap.
(2)
(3) Overall, only 32 percent of students at California
colleges complete credentials on time, and low-income students are
much less likely than higher income students to enroll in or complete
college.
(3)
(4) A major factor in a student's enrollment and
success in college is his or her ability to pay for fees and tuition,
textbooks, transportation, housing, food, and other access costs.
(4)
(5) California has made an important investment in
need-based financial aid for California's college students through
the Cal Grant Program and the BOG Fee Waiver Program of the Board of
Governors of the California Community Colleges.
(5)
(6) The Cal Grant Program awards more than one
two billion five hundred million
dollars ($1,500,000,000)
($2,000,000,000) annually, and it is the largest state grant
program in the nation in terms of dollars awarded to students. The
BOG Fee Waiver Program is more extensive than any other "free
community college" plan in the nation, and it provides almost
one-half of all students of the California Community Colleges, and
more than 60 percent of full-time students of the California
Community Colleges, with free tuition.
(6)
(7) Despite California's strong commitment to financial
aid, access grants for qualifying students are insufficent
insufficient to cover nontuition college costs,
and many low-income students are left out of the program entirely.
(7)
(8) Students at California's community colleges are
disproportionately more likely to be the first in their family to
attend college, come from an immigrant background, or be financially
needy.
(8)
(9) After taking into account the total cost of
attendance and all federal, state, and institutional financial aid
available for students, on average it is more expensive for a needy
student to go to a California community college than to attend the
University of California or the California State University.
(9)
(10) The affordability challenge faced by California's
community college students stems from nontuition costs, and the
solution to that challenge is to increase grant aid that covers
nontuition costs.
(10)
(11) The 1960 California Master Plan for Higher
Education in California guarantees an affordable, high-quality
education to every Californian who can benefit.
(b) It is the intent of the Legislature to renew California's
commitment to college affordability by increasing the aid available
to needy students students, and,
specifically, broadening access to financial aid to students enrolled
in California community college career technical education programs
leading to industry valued credentials, through expanding the
Cal Grant Program.
(c) It is the intent of the Legislature that California community
colleges provide outreach and education to students to inform them of
the expanded availability of financial aid for students enrolled in
career technical education programs and to encourage these students
to complete the Free Application for Federal Student Aid by the
September 2 deadline.
SEC. 2. Section 69435 of the Education Code is
amended to read:
69435. (a) (1) A Cal Grant B award shall be used only for
tuition, student fees, and access costs in a for-credit instructional
program that is not less than one academic year in length.
(2) The commission, or a qualifying institution pursuant to
Article 8 (commencing with Section 69450), shall award access grants
in a student's first academic year. In subsequent years, the award
shall include an additional amount to pay tuition or fees, or both,
to attend college at a public or private four-year college or
university or other qualifying institution for all Cal Grant B awards
pursuant to paragraph (2) of subdivision (b) of Section 66021.2. In
no event shall the total award in any year exceed the applicant's
calculated financial need.
(3) Not more than 2 percent of new Cal Grant B recipients
enrolling for the first time in an institution of postsecondary
education shall be eligible for payments for tuition or fees, or
both, in their first academic year of attendance. The commission
shall adopt regulations specifying the criteria used to determine
which applicants, if any, receive both tuition and fees plus the
access grant in the first year of enrollment. Priority shall be given
to students with the lowest expected family contribution pursuant to
Section 69432.7 and the highest level of academic merit.
(b) An award for access costs under this article shall be in an
annual amount not to exceed three thousand dollars ($3,000). This
amount may be adjusted in the annual Budget Act.
SEC. 3. Section 69436 of the Education Code is
amended to read:
69436. (a) A student who was not awarded a Cal Grant A or B award
pursuant to Article 2 (commencing with Section 69434) or Article 3
(commencing with Section 69435) at the time of his or her high school
graduation but, at the time of transfer from a California community
college to a qualifying baccalaureate program, meets all of the
criteria set forth in subdivision (b), shall be entitled to a Cal
Grant A or B award.
(b) Any California resident transferring from a California
community college to a qualifying institution that offers a
baccalaureate degree is entitled to receive, and the commission, or a
qualifying institution pursuant to Article 8 (commencing with
Section 69450), shall award, a Cal Grant A or B award depending on
the eligibility determined pursuant to subdivision (c), if all of the
following criteria are met:
(1) A complete official financial aid application has been
submitted or postmarked pursuant to Section 69432.9, no later than
the March 2 of the year immediately preceding the award year.
(2) The student demonstrates financial need pursuant to Section
69433.
(3) The student has earned a community college grade point average
of at least 2.4 on a 4.0 scale and is eligible to transfer to a
qualifying institution that offers a baccalaureate degree.
(4) The student's household has an income and asset level not
exceeding the limits set forth in Section 69432.7.
(5) The student is pursuing a baccalaureate degree that is offered
by a qualifying institution.
(6) He or she is enrolled at least part time.
(7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).
(8) The student will not be 31 years of age or older by December
31 of the award year.
(9) The student graduated from a California high school or its
equivalent during or after the 2000-01 academic year.
(10) The student attended a California community college in an
academic year no more than three academic years before the academic
year for which the award will be used.
(c) The amount and type of the award pursuant to this article
shall be determined as follows:
(1) For applicants with income and assets at or under the Cal
Grant A limits, the award amount shall be the amount established
pursuant to Article 2 (commencing with Section 69434).
(2) For applicants with income and assets at or under the Cal
Grant B limits, the award amount shall be the amount established
pursuant to Article 3 (commencing with Section 69435).
(d) (1) A student meeting the requirements of paragraph (9) of
subdivision (b) by means of high school graduation, rather than its
equivalent, shall be required to have graduated from a California
high school, unless that California resident graduated from a high
school outside of California due solely to orders received from a
branch of the United States Armed Forces by that student or by that
student's parent or guardian that required that student to be outside
of California at the time of high school graduation.
(2) For the purposes of this article, both of the following are
exempt from the requirements of subdivision (e) of Section 69433.9
and paragraph (9) of subdivision (b) of this section:
(A) A student for whom a claim under this article was paid prior
to December 1, 2005.
(B) A student for whom a claim under this article for the 2004-05
award year or the 2005-06 award year was or is paid on or after
December 1, 2005, but no later than October 15, 2006.
(3) (A) The commission, or a qualifying institution pursuant to
Article 8 (commencing with Section 69450), shall make preliminary
awards to all applicants currently eligible for an award under this
article. At the time an applicant receives a preliminary award, the
commission, or a qualifying institution pursuant to Article 8
(commencing with Section 69450), shall require that applicant to
affirm, in writing, under penalty of perjury, that he or she meets
the requirements set forth in subdivision (e) of Section 69433.9,
paragraph (9) of subdivision (b) of this section, and paragraph (1)
of this subdivision. The commission, or a qualifying institution
pursuant to Article 8 (commencing with Section 69450), shall notify
each person who receives a preliminary award under this paragraph
that his or her award is subject to an audit pursuant to subparagraph
(B).
(B) The commission shall select, at random, a minimum of 10
percent of the new and renewal awards made under subparagraph (A),
and shall require, prior to the disbursement of Cal Grant funds to
the affected postsecondary institution, that the institution verify
that the recipient meets the requirements of subdivision (e) of
Section 69433.9, paragraph (9) of subdivision (b) of this section,
and paragraph (1) of this subdivision. An award that is audited under
this paragraph and found to be valid shall not be subject to a
subsequent audit.
(C) Pursuant to Section 69517.5, the commission shall seek
repayment of any and all funds found to be improperly disbursed under
this article.
(D) On or before November 1 of each year, the commission shall
submit a report to the Legislature and the Governor including, but
not necessarily limited to, both of the following:
(i) The number of awards made under this article in the preceding
12 months.
(ii) The number of new and renewal awards selected, in the
preceding 12 months, for verification under subparagraph (B), and the
results of that verification with respect to students at the
University of California, at the California State University, at
independent nonprofit institutions, and at independent for-profit
institutions.
SEC. 4. SEC. 2. Section 69437 of the
Education Code is amended to read:
69437. (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, there shall be established the Competitive
Cal Grant A and B award program for students who did not receive a
Cal Grant A or B entitlement award pursuant to Article 2 (commencing
with Section 69434), Article 3 (commencing with Section 69435), or
Article 4 (commencing with Section 69436). Awards made under this
section are not entitlements. The submission of an application by a
student under this section shall not entitle that student to an
award. The selection of students under this article shall be
determined pursuant to subdivision (c) and other relevant criteria
established by the commission.
(b) Commencing with the 2015-16 2016-17
academic year, a total of up to 30,000
34,000 Cal Grant A and B awards shall be granted annually under
this article on a competitive basis for applicants who meet the
general eligibility criteria established in Article 1 (commencing
with Section 69430) and the priorities established by the commission
pursuant to subdivision (c).
(1) Fifty percent Fifteen thousand
of the awards referenced in this subdivision are available to all
students, including California community college students, who meet
the financial need and academic requirements established pursuant to
this article. A student enrolling at a qualifying baccalaureate
degree granting institution shall apply by the March 2 deadline. A
California community college student is eligible to apply at the
March 2 or the September 2 deadline.
(2) Fifty percent Nineteen thousand
of the awards referenced in this subdivision are reserved for
students who will be enrolled at a California community college. The
commission shall establish a second application deadline of September
2 for community college students to apply for these awards
effective with the fall term or semester of the 2001-02 academic
year. awards. Notwithstanding paragraph (1) of
subdivision (a) of Section 69435, effective with the fall term or
semester of the 2017-18 academic year, students enrolled in
occupational or technical training courses leading to industry valued
credentials of no less than four months in length at a California
community college shall be eligible for Cal Grant B awards issued
under this paragraph.
(3) If any awards are not distributed pursuant to paragraphs (1)
and (2) upon initial allocation of the awards under this article, the
commission shall make awards to as many eligible students as
possible, beginning with the students with the lowest expected family
contribution and highest academic merit, consistent with the
criteria adopted by the commission pursuant to subdivision (c), as
practicable without exceeding an annual cumulative total of
30,000 34,000 awards.
(c) (1) On or before February 1, 2001, acting pursuant to a public
hearing process that is consistent with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code), the
commission shall establish selection criteria for Cal Grant A and B
awards under the competitive program that give special consideration
to disadvantaged students, taking into consideration those financial,
educational, cultural, language, home, community, environmental, and
other conditions that hamper a student's access to, and ability to
persist in, postsecondary education programs.
(2) Additional consideration shall be given to both of the
following:
(A) Students pursuing Cal Grant B awards who reestablish their
grade point averages.
(B) Students who did not receive awards pursuant to Article 2
(commencing with Section 69434), Article 3 (commencing with Section
69435), or Article 4 (commencing with Section 69436).
(d) All other students who meet the eligibility requirements
pursuant to Article 1 (commencing with Section 69430) are eligible to
compete for an award pursuant to this article.
SEC. 3. Section 69439 of the Education
Code is amended to read:
69439. (a) For the purposes of this section, the following terms
have the following meanings:
(1) "Career pathway" has the same meaning as set forth in Section
88620.
(2) "Economic security" has the same meaning as set forth in
Section 14005 of the Unemployment Insurance Code.
(3) "Industry cluster" has the same meaning as set forth in
Section 88620.
(4) "Long-term unemployed" means, with respect to an award
applicant, a person who has been unemployed for more than 26 weeks at
the time of submission to the commission of his or her application.
(5) "Occupational or technical training" means that phase of
education coming after the completion of a secondary school program
and leading toward recognized occupational goals approved by the
commission.
(b) A Cal Grant C award shall be utilized only for occupational or
technical training in a course of not less than four months. There
shall be the same number of Cal Grant C awards each year as were
made paid in the 2000-01
2015-16 fiscal year. The maximum award amount
and the total amount of funding shall be determined each year in the
annual Budget Act.
(c) The commission may use criteria it deems appropriate in
selecting students to receive grants for occupational or technical
training and shall give special consideration to the social and
economic situations of the students applying for these grants, giving
additional weight to disadvantaged applicants, applicants who face
economic hardship, and applicants who face particular barriers to
employment. Criteria to be considered for these purposes shall
include, but are not limited to, all of the following:
(1) Family income and household size.
(2) Student's or the students' parent's household status,
including whether the student is a single parent or child of a single
parent.
(3) The employment status of the applicant and whether the
applicant is unemployed, giving greater weight to the long-term
unemployed.
(d) The Cal Grant C award recipients shall be eligible for renewal
of their grants until they have completed their occupational or
technical training in conformance with terms prescribed by the
commission. A determination by the commission for a subsequent award
year that the program under which a Cal Grant C award was initially
awarded is no longer deemed to receive priority shall not affect an
award recipient's renewal. In no case shall the grants exceed two
calendar years.
(e) Cal Grant C awards may be used for institutional fees,
charges, and other costs, including tuition, plus training-related
costs, such as special clothing, local transportation, required
tools, equipment, supplies, books, and living expenses. In
determining the individual award amounts, the commission shall take
into account the financial means available to the student to fund his
or her course of study and costs of attendance as well as other
state and federal programs available to the applicant.
(f) (1) To ensure alignment with the state's dynamic economic
needs, the commission, in consultation with appropriate state and
federal agencies, including the Economic and Workforce Development
Division of the Office of the Chancellor of the California Community
Colleges and the California Workforce Investment Board, shall
identify areas of occupational and technical training for which
students may utilize Cal Grant C awards. The commission, to the
extent feasible, shall also consult with representatives of the state'
s leading competitive and emerging industry clusters, workforce
professionals, and career technical educators, to determine which
occupational training programs and industry clusters should be
prioritized.
(2) (A) Except as provided in subparagraph (B), the areas of
occupational and technical training developed pursuant to paragraph
(1) shall be regularly reviewed and updated at least every five
years, beginning in 2012.
(B) By January 1, 2016, the commission shall update the priority
areas of occupational and technical training.
(3) (A) The commission shall give priority in granting Cal Grant C
awards to students pursuing occupational or technical training in
areas that meet two of the following criteria pertaining to job
quality:
(i) High employer need or demand for the specific skills offered
in the program.
(ii) High employment growth in the occupational field or industry
cluster for which the student is being trained.
(iii) High employment salary and wage projections for workers
employed in the occupations for which they are being trained.
(iv) The occupation or training program is part of a
well-articulated career pathway to a job providing economic security.
(B) To receive priority pursuant to subparagraph (A), at least one
of the criteria met shall be specified in clause (iii) or (iv) of
that subparagraph.
(g) The commission shall determine areas of occupational or
technical training that meet the criteria described in paragraph (3)
of subdivision (f) in consultation with the Employment Development
Department, the Economic and Workforce Development Division of the
Office of the Chancellor of the California Community Colleges, and
the California Workforce Investment Board using projections available
through the Labor Market Information Data Library. The commission
may supplement the analyses of the Employment Development Department'
s Labor Market Information Data Library with the labor market
analyses developed by the Economic and Workforce Development Division
of the Office of the Chancellor of the California Community Colleges
and the California Workforce Investment Board, as well as the
projections of occupational shortages and skills gap developed by
industry leaders. The commission shall publish, and retain, on its
Internet Web site a current list of the areas of occupational or
technical training that meet the criteria described in paragraph (3)
of subdivision (f), and update this list as necessary.
(h) Using the best available data, the commission shall examine
the graduation rates and job placement data, or salary data, of
eligible programs. Commencing with the 2014-15 academic year, the
commission shall give priority to Cal Grant C award applicants
seeking to enroll in programs that rate high in graduation rates and
job placement data, or salary data.
(i) (1) The commission shall consult with the Employment
Development Department, the Office of the Chancellor of the
California Community Colleges, the California Workforce Investment
Board, and the local workforce investment boards to develop a plan to
publicize the existence of the grant award program to California's
long-term unemployed to be used by those consulting agencies when
they come in contact with members of the population who are likely to
be experiencing long-term unemployment. The outreach plan shall use
existing administrative and service delivery processes making use of
existing points of contact with the long-term unemployed. The local
workforce investment boards are required to participate only to the
extent that the outreach efforts are a part of their existing
responsibilities under the federal Workforce Investment Act of 1998
(Public Law 105-220).
(2) The commission shall consult with the Workforce Services
Branch of the Employment Development Department, the Office of the
Chancellor of the California Community Colleges, the California
Workforce Investment Board, and the local workforce investment boards
to develop a plan to make students receiving awards aware of job
search and placement services available through the Employment
Development Department and the local workforce investment boards.
Outreach shall use existing administrative and service delivery
processes making use of existing points of contact with the students.
The local workforce investment boards are required to participate
only to the extent that the outreach efforts are a part of their
existing responsibilities under the federal Workforce Investment Act
of 1998 (Public Law 105-220).
(j) (1) Notwithstanding Section 10231.5 of the Government Code,
the Legislative Analyst's Office shall submit a report to the
Legislature on the outcomes of the Cal Grant C program on or before
April 1, 2015, and on or before April 1 of each odd-numbered year
thereafter. This report shall include, but not necessarily be limited
to, information on all of the following:
(A) The age, gender, and segment of attendance for recipients in
two prior award years.
(B) The occupational and technical training program categories
prioritized.
(C) The number and percentage of students who received selection
priority as defined in paragraph (3) of subdivision (f).
(D) The extent to which recipients in these award years were
successfully placed in jobs that meet local, regional, or state
workforce needs.
(2) For the report due on or before April 1, 2015, the Legislative
Analyst's Office shall include data for two additional prior award
years and shall compare the mix of occupational and technical
training programs and institutions in which Cal Grant C award
recipients enrolled before and after implementation of subdivision
(f).
(3) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.