Amended in Assembly March 28, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1892

Introduced by Assembly Member Medina

February 11, 2016

An act to amend begin delete Section end delete begin insert Sections 69432, 69432.7, and end insert 69439 begin delete of end delete begin insert of, and to add Section 69439.5 to, end insert the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1892, as amended, Medina. Student financial aid: Cal Grant C awards.

The Cal Grant Program establishes Cal Grant C awards, which may be used only for institutional fees, and other costs, as specified, for occupational or technical training in a course of not less than 4 months, under the administration of the Student Aid Commission. The program requires the commission to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least 2 criteria. begin insert The program requires the Legislative Analyst’s Office to submit a report to the Legislature on the outcomes of the end insert begin insert Cal Grant C program on or before April 1, 2015, and on or before April 1 of each odd-numbered year thereafter. end insert

begin insert

This bill, among other things, would (1) rename these awards the Competitive Cal Grant C awards, (2) set the maximum Competitive Cal Grant C award amount at $2,462 for tuition and fees and $547 for certain other costs, (3) establish an additional Competitive Cal Grant C award in an annual amount not to exceed $2,462 for community college students for occupational and technical training to cover access costs, training-related costs, and tuition and fees, (4) require the commission, instead of the Legislative Analyst’s Office, to submit a report on the outcome of the Competitive Cal Grant C program on or before April 1, 2017, and on or before April 1 of each odd-numbered year thereafter, and (5) establish a Cal Grant C Entitlement award for access costs for community college students who are enrolled in a for-credit certificate or credential instructional program that is less than one academic year in length and that is an occupational or technical training program identified by the commission, as specified.

end insert begin delete

This bill would set the maximum Cal Grant C award amount at $3,000, would authorize these awards to be used for institutional charges and access costs, as defined, and would give priority, for students seeking to enroll in a community college, to those students pursuing occupational or technical training in industry sectors determined by the California Community College Economic and Workforce Development Program to be a high priority for the region encompassing the college.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 69432 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

69432.  

(a) Cal Grant Program awards shall be known as “Cal
Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,”
begin insert “Cal Grant C Entitlement Awards, end insert begin insert ” end insert “California Community
College Transfer Entitlement Awards,” “Competitive Cal Grant
A and B Awards,” begin delete “Cal end delete begin insert “Competitive Cal end insert Grant C Awards,” and
“Cal Grant T Awards.”

(b) Maximum award amounts for students at independent
institutions and for Cal Grant C and T awards shall be identified
in the annual Budget Act. Maximum award amounts for Cal Grant
A and B awards for students attending public institutions shall be
referenced in the annual Budget Act.

(c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the
maximum tuition award amounts for Cal Grant A and B awards
for students attending private for-profit and nonprofit
postsecondary educational institutions shall be as follows:

(A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.

(B) For the 2015-16 and 2016-17 award years, nine thousand
eighty-four dollars ($9,084) for new recipients attending private
nonprofit postsecondary educational institutions. For the 2017-18
award year and each award year thereafter, eight thousand fifty-six
dollars ($8,056) for new recipients attending private nonprofit
postsecondary educational institutions.

(2) The renewal award amount for a student whose initial award
is subject to a maximum award amount specified in this subdivision
shall be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.

(3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same
maximum tuition award amounts as are set forth in subparagraph
(B) of paragraph (1).

begin insert

begin insert SEC end insert begin insert . end insert begin insert 2. end insert   

end insert

begin insert Section 69432.7 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

69432.7.  

As used in this chapter, the following terms have the
following meanings:

(a) An “academic year” is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in
which it is included.

(b) “Access costs” means living expenses and expenses for
transportation, supplies, and books.

(c) “Award year” means one academic year, or the equivalent,
of attendance at a qualifying institution.

(d) “College grade point average” and “community college
grade point average” mean a grade point average calculated on the
basis of all college work completed, except for nontransferable
units and courses not counted in the computation for admission to
a California public institution of higher education that grants a
baccalaureate degree.

(e) “Commission” means the Student Aid Commission.

(f) “Enrollment status” means part- or full-time status.

(1) “Part time,” for purposes of Cal Grant eligibility, means 6
to 11 semester units, inclusive, or the equivalent.

(2) “Full time,” for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.

(g) “Expected family contribution,” with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
1070 et seq.)) and applicable rules and regulations adopted by the
commission.

(h) “High school grade point average” means a grade point
average calculated on a 4.0 scale, using all academic coursework,
for the sophomore year, the summer following the sophomore
year, the junior year, and the summer following the junior year,
excluding physical education, Reserve Officers’ Training Corps
(ROTC), and remedial courses, and computed pursuant to
regulations of the commission. However, for high school graduates
who apply after their senior year, “high school grade point average”
includes senior year coursework.

(i) “Instructional program of not less than one academic year”
means a program of study that results in the award of an associate
or baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer from
a community college to a baccalaureate degree program.

(j) “Instructional program of not less than two academic years”
means a program of study that results in the award of an associate
or baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.

(k) (1) “Maximum household income and asset levels” means
the applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by
the commission for the 2001-02 academic year, which shall be
set pursuant to the following income and asset ceiling amounts:

 

CAL GRANT PROGRAM INCOME CEILINGS

 

 

	Cal Grant begin delete A, end delete begin delete C, end delete begin insert A end insert and T	Cal Grant begin delete B end delete begin insert B, end insert begin insert end insert begin insert Competitive C, and end insert begin insert end insert begin insert Entitlement C end insert
Dependent and Independent students with dependents*
Family Size
Six or more	$74,100	$40,700
Five	$68,700	$37,700
Four	$64,100	$33,700
Three	$59,000	$30,300
Two	$57,600	$26,900
Independent
Single, no dependents	$23,500	$23,500
Married	$26,900	$26,900

 

*Applies to independent students with dependents other than a
spouse.

 

CAL GRANT PROGRAM ASSET CEILINGS

 

 

	Cal Grant begin delete A, end delete begin delete C, end delete begin insert A end insert and T	Cal Grant begin delete B end delete begin insert B, end insert begin insert end insert begin insert Competitive C, and end insert begin insert end insert begin insert Entitlement C end insert
Dependent**	$49,600	$49,600
Independent	$23,600	$23,600

 

**Applies to independent students with dependents other than a
spouse.

 

(2) The commission shall annually adjust the maximum
household income and asset levels based on the percentage change
in the cost of living within the meaning of paragraph (1) of
subdivision (e) of Section 8 of Article XIII B of the California
Constitution. The maximum household income and asset levels
applicable to a renewing recipient shall be the greater of the
adjusted maximum household income and asset levels or the
maximum household income and asset levels at the time of the
renewing recipient’s initial Cal Grant award. For a recipient who
was initially awarded a Cal Grant for an academic year before the
2011-12 academic year, the maximum household income and asset
levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal
recipient who qualifies to be considered under the simplified needs
test established by federal law for student assistance shall be
presumed to meet the asset level test under this section. Before
disbursing any Cal Grant funds, a qualifying institution shall be
obligated, under the terms of its institutional participation
agreement with the commission, to resolve any conflicts that may
exist in the data the institution possesses relating to that individual.

(l) (1) “Qualifying institution” means an institution that
complies with paragraphs (2) and (3) and is any of the following:

(A) A California private or independent postsecondary
educational institution that participates in the Pell Grant Program
and in at least two of the following federal student aid programs:

(i) Federal Work-Study Program.

(ii) Federal Stafford Loan Program.

(iii) Federal Supplemental Educational Opportunity Grant
Program.

(B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution’s operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation
with the Department of Finance. A regionally accredited institution
that was deemed qualified by the commission to participate in the
Cal Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation status.

(C) A California public postsecondary educational institution.

(2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, “provide” may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information
is also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems
with multiple campuses, or on applications for enrollment or other
program information distributed to prospective students.

(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph
(A).

(3) (A) The commission shall certify by November 1 of each
year the institution’s latest official three-year cohort default rate
and graduation rate as most recently reported by the United States
Department of Education. For purposes of this section, the
graduation rate is the percentage of full-time, first-time degree or
certificate-seeking undergraduate students who graduate in 150
percent or less of the expected time to complete degree
requirements as most recently reported publicly in any format,
including preliminary data records, by the United States
Department of Education.

(B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the institution.

(C) For purposes of the 2012-13 academic year, and every
academic year thereafter, an otherwise qualifying institution with
a three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and
every year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the institution.

(D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or (F), as applicable.

(ii) If the United States Department of Education corrects or
revises an institution’s three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or (F), as applicable, and the correction
or revision results in the institution’s three-year cohort default rate
or graduation rate satisfying those requirements, that institution
shall immediately regain its eligibility for the academic year to
which the corrected or revised three-year cohort default rate or
graduation rate would have been applied.

(E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally
eligible to participate in the Cal Grant Program until a three-year
cohort default rate or graduation rate has been reported for the
institution by the United States Department of Education.

(F) For purposes of the 2012-13 academic year, and every
academic year thereafter, an otherwise qualifying institution with
a graduation rate of 30 percent or less, as certified by the
commission pursuant to subparagraph (A), shall be ineligible for
initial and renewal Cal Grant awards at the institution, except as
provided for in subparagraph (H).

(G) Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education
for the academic year two years before the academic year in which
the commission is certifying the three-year cohort default rate or
graduation rate pursuant to subparagraph (A).

(H) Notwithstanding subparagraph (F), an otherwise qualifying
institution that maintains a three-year cohort default rate that is
less than 15.5 percent and a graduation rate above 20 percent for
students taking 150 percent or less of the expected time to complete
degree requirements, as certified by the commission pursuant to
subparagraph (A), shall be eligible for initial and renewal Cal Grant
awards at the institution through the 2016-17 academic year.

(I) The commission shall do all of the following:

(i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or (F) that the institution
is ineligible for initial Cal Grant awards for the academic year for
which the student received an initial Cal Grant award.

(ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or (F) that the student’s Cal
Grant award will be reduced by 20 percent, or eliminated, as
appropriate, if the student attends the ineligible institution in an
academic year in which the institution is ineligible.

(iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial and
renewal Cal Grant awards at the institution under subparagraph
(C) or (F) with a complete list of all California postsecondary
educational institutions at which the student would be eligible to
receive an unreduced Cal Grant award.

(iv) (I)   Establish an appeal process for an otherwise qualifying
institution that fails to satisfy the three-year cohort default rate and
graduation rate requirements in subparagraphs (C) and (F),
respectively.

(II) The commission may grant an appeal for an academic year
only if the commission has determined the institution has a cohort
size of 20 individuals or less and the cohort is not representative
of the overall institutional performance.

(m) “Satisfactory academic progress” means those criteria
required by applicable federal standards published in Title 34 of
the Code of Federal Regulations. The commission may adopt
regulations defining “satisfactory academic progress” in a manner
that is consistent with those federal standards.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 69439 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

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 begin insert Competitive end insert 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 begin insert Competitive end insert Cal Grant
C awards each year as were made in the 2000-01 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 begin insert Competitive end insert 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
begin insert Competitive end insert 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)  begin insert Except as provided in subdivision (f), end insert begin insert Competitive end insert Cal Grant
C awards begin delete may be used for institutional fees, charges, and other
costs, including tuition, plus end delete begin insert shall be in an annual amount not to
exceed two thousand four hundred and sixty-two dollars ($2,462)
for tuition and fees and five hundred and forty-seven dollars ($547)
to cover access costs and end insert training-related costs, such as special
begin delete clothing, local transportation, end delete begin insert clothing and end insert required begin delete tools,
equipment, supplies, books, and living expenses. end delete begin insert tools and
equipment. end insert In determining the individual award amounts begin insert in this
subdivision and subdivision (f) end insert , 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.

begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(B) By January 1, 2016, the commission shall update the priority
areas of occupational and technical training.

end delete begin delete

(3) (A) The

end delete begin insert

(f) (1) An additional Competitive Cal Grant C award not to
exceed an annual amount of two thousand four hundred and
sixty-two dollars ($2,462) shall be provided to community college
students for occupational or technical training to cover access
costs, training-related costs, such as special clothing and required
tools and equipment, and tuition and fees. The award described
in this paragraph shall be reserved exclusively for students enrolled
at California Community Colleges. The commission shall establish
a second application deadline of September 2 for community
college students to apply for this award effective with the fall term
or semester of the 2017-2018 academic year.

end insert begin insert

(2) The Office of the Chancellor of the California Community
Colleges shall annually provide the commission with a regional
inventory of priority and emerging industry sectors and priority
occupational and technical training programs developed by each
community college economic and workforce development region
that have high employer demand, high projected employment
growth, high earning outcomes, or are part of a well-articulated
career pathway to a job or providing economic security.

end insert begin insert

(3) The commission shall do both of the following:

end insert begin insert

(A) Use the information it receives pursuant to paragraph (2)
to determine which occupational or technical training programs
shall be prioritized for an award pursuant to this subdivision and
consistent with subdivision (g).

end insert begin insert

(B) Publish, and maintain, on its Internet Web site an up to date
list of the priority and emerging industry sectors and occupational
and technical training programs that are in demand in each
community college economic and workforce development region.

end insert

begin insert (g) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert The end insert commission shall give priority in granting
begin insert Competitive end insert Cal Grant C awards to students pursuing occupational
or technical training in areas that meet two of the following criteria
pertaining to job quality:

begin delete

(i)

end delete

begin insert (A) end insert  High employer need or demand for the specific skills offered
in the program.

begin delete

(ii)

end delete

begin insert (B) end insert  High employment growth in the occupational field or
industry cluster for which the student is being trained.

begin delete

(iii)

end delete

begin insert (C) end insert  High employment salary and wage projections for workers
employed in the occupations for which they are being trained.

begin delete

(iv)

end delete

begin insert (D) end insert  The occupation or training program is part of a
well-articulated career pathway to a job providing economic
security.

begin delete

(B)

end delete

begin insert (2) end insert  To receive priority pursuant to begin delete subparagraph (A), end delete begin insert paragraph
(1), end insert at least one of the criteria met shall be specified in begin delete clause (iii)
or (iv) of that subparagraph. end delete begin insert subparagraph (C) or (D) of paragraph
(1). end insert

begin delete

(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.

end delete

(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 begin insert Competitive end insert Cal Grant C
award applicants seeking to enroll in programs that rate high in
graduation rates and job placement data, or salary begin delete data. end delete begin insert data,
including wage gain and initial earnings. end insert

(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 begin delete a end delete begin insert an outreach end insert plan begin delete to make students
receiving end delete begin insert that provides information to students about new
opportunities for grant assistance in the Competitive Cal Grant
C program and makes recipients of these end insert awards aware of job
search and placement services available through the Employment
Development Department and the local workforce investment
boards. Outreach shall use begin insert both end insert existing administrative and service
delivery processes making use of existing points of contact with
the begin delete students. end delete begin insert students, and new statewide and campus end insert begin insert -based
methods for expanding the scope of outreach to students. end insert 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 begin delete Legislative Analyst’s Office end delete begin insert commission end insert shall submit a
report to the Legislature on the outcomes of the begin insert Competitive end insert Cal
Grant C program on or before April 1, begin delete 2015, end delete begin insert 2017, end insert 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 begin delete priority as defined in paragraph (3) of subdivision (f). end delete

begin insert priority. end insert

(D) The extent to which recipients in these award years were
successfully placed in jobs that meet local, regional, or state
workforce needs.

begin delete

(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).

end delete begin delete

(3)

end delete

begin insert ( end insert begin insert 2) end insert  A report to be submitted pursuant to this subdivision shall
be submitted in compliance with Section 9795 of the Government
Code.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 69439.5 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 69439.5. end insert   

(a) (1) A Cal Grant C Entitlement award shall be
awarded only for access costs for community college students who
are enrolled in a for-credit certificate or credential instructional
program that is less than one academic year in length and that is
an occupational or technical training program identified by the
commission as having high employer demand, high projected
employment growth, high earning outcomes, or as being part of
a well-articulated career pathway to a job providing economic
security. For purposes of this section, an academic year constitutes
two semesters or 24 semester units.

(2) An award for access costs under this section shall be in an
annual amount not to exceed three thousand dollars ($3,000). This
amount may be adjusted in the annual Budget Act.

(b) A student is entitled to receive a Cal Grant C Entitlement
award, and the commission shall allocate that award pursuant to
Section 66021.2, if all of the following criteria are met:

(1) The student is a California resident.

(2) The student has submitted, pursuant to Section 69432.9, a
complete financial aid application, submitted or postmarked no
later than the third September 2 following high school graduation
or its equivalent.

(3) The student demonstrates financial need pursuant to Section
69433.

(4) The student attains a high school grade point average of at
least 2.0 on a four-point scale.

(5) The student is pursuing a for-credit certificate or credential
instructional program offered by a community college that is less
than one academic year in length.

(6) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section
69430).

end insert

begin delete

SECTION 1.  

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 in the 2000-01 fiscal year. The maximum award amount
shall be three thousand dollars ($3,000).

(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 charges
and access costs, as defined in subdivision (b) of Section 69432.7.
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.

(4) In addition to the priority given pursuant to paragraph (3)
for students seeking to enroll in a community college, the
commission shall give priority in granting Cal Grant C awards to
students pursuing occupational or technical training in industry
sectors determined by the California Community College Economic
and Workforce Development Program to be a high priority for the
region encompassing the college.

(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.

end delete