Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1961

Introduced by Assembly Member Baker

February 12, 2016

An act to amend Section begin delete 69437 end delete begin insert 69432 end insert of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1961, as amended, Baker. Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant begin delete Program. end delete begin insert Program: private nonprofit postsecondary educational institutions. end insert

Existing law, known as the Ortiz-Pacheco-Poochigian-Vasconcellos 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.

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This bill would make nonsubstantive changes to these provisions.

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Existing law establishes the maximum tuition award amount for each Cal Grant A and B award for new recipient students attending private nonprofit postsecondary educational institutions at $9,084 for the 2015-16 and 2016-17 award years and $8,056 for the 2017-18 award year and each award year thereafter. Existing law also establishes these amounts as the maximum tuition award amounts for new recipients attending private for-profit postsecondary educational institutions that are accredited, as specified.

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This bill would instead increase the maximum tuition award amount for Cal Grant A and B awards for new recipients at private nonprofit postsecondary educational institutions to no less than $10,000 for the 2017-18 award year and each award year thereafter. For these award years, the maximum tuition award amounts would remain at $8,056 for new recipients attending accredited private for-profit postsecondary educational institutions as referred to above.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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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,”
“California Community College Transfer Entitlement Awards,”
“Competitive Cal Grant A and B Awards,” “Cal 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, begin delete eight thousand fifty-six
dollars ($8,056) end delete begin insert no less than ten thousand dollars ($10,000) end insert 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), begin insert for the
2017-18 award year and each award year thereafter, the maximum
tuition award amounts for end insert 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 begin delete have the same maximum tuition award amounts as are
set forth in subparagraph (B) of paragraph (1). end delete begin insert be eight thousand
fifty-six dollars ($8,056). end insert

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SECTION 1.  

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 Cal Grant B award program for
students who did not receive a Cal Grant A or Cal Grant 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 academic year, a total of
25,750 Cal Grant A and Cal Grant 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 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 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.

(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 25,750 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 Cal Grant 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.

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