BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2056 (Eduardo Garcia) - Cal Grant Program:  graduation  
          verification
          
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          |Version: April 21, 2016         |Policy Vote: ED. 9 - 0          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.




          


          Bill  
          Summary:  This bill requires the California Student Aid  
          Commission (Commission), if it requires the verification of high  
          school graduation to be submitted electronically-as permitted  
          under current law, for purposes of meeting the eligibility  
          requirements for a Cal Grant award, to provide guidance to  
          school districts so that the verification of graduation is  
          submitted as soon as possible but no later than August 31st, as  
          specified.


          Fiscal  
          Impact:  
           To the extent this bill results in more Cal Grant awards being  







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            paid to students, this bill could result in potentially  
            significant costs to the state.  (General Fund)
           Local cost pressure for high schools or high school districts  
            to verify the graduation of their students as soon as possible  
            upon a student's graduation, but no later than August 31 of  
            the academic year following the student's graduation.  These  
            costs are not reimbursable under state mandate law as this  
            deadline is provided to school districts as guidance from the  
            Commission and therefore not a state mandated requirement.
           Minor costs to the Commission to provide required guidance.


          Background:  Graduation from a California high school, among other things,   
          is required for a Cal Grant award.  This requirement needs to be  
          verified, before an award is paid and late submission could  
          delay payment of the award.  The California Community Colleges  
          Chancellor's Office, in a support letter states, the  
          verification of graduation for many students who attend summer  
          school in order to meet high graduation requirements, is either  
          never received by the Commission or it is submitted after the  
          Cal Grant application deadline resulting in delays of Cal Grant  
          award payments. This bill seeks to ensure that all high school  
          graduates are reported to the Commission resulting in timely Cal  
          Grant award payments.
          The variation in the graduation submission process could  
          unintentionally exclude students who need to be verified soon  
          after graduation.  Under current law the Commission may require  
          verification of high school graduation to be submitted  
          electronically.  This bill goes further by requiring the  
          Commission to provide guidance to schools and school districts  
          so as to ensure students' are verified as soon as possible but  
          no later than August 31.  This process may provide clarity and  
          potentially reduce late Cal Grant award payments.


          To apply for a Cal Grant award, students (or parents of  
          dependent students) are required to complete and submit the Free  
          Application for Federal Student Aid (FAFSA) and file a verified  
          GPA with CSAC.  In 2014, AB 2160 (Ting), Chapter 679, required  
          all high schools to submit a GPA for all high school seniors to  
          CSAC electronically (electronic submission occurs through the  
          CSAC WebGrants system). Last year, AB 1091 (Garcia), Chapter  
          637, Statutes of 2015, authorized CSAC to require electronic  
          submission of students' graduation verification data (an  








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          eligibility condition of Cal Grant) and established legislative  
          intent that high schools verify graduation of their pupils in  
          time to meet the applicable deadline. This bill is intended to  
          ensure that school districts understand their responsibility to  
          verify high school graduation, and do so by August 31, including  
          verification for those high school students who have to attend  
          summer school in order to fulfill their graduation requirements.




          Proposed Law:  
            This bill requires that if the Commission requires  
          verification of high school graduation or its equivalent, it is  
          required to provide guidance to high schools or high school  
          districts to ensure that they verify the graduation of their  
          students as soon as possible upon a student's graduation and no  
          later than August 31 of the academic year following the  
          student's graduation.  This deadline also applies to students  
          who graduate during the summer following the 12th grade academic  
          year.


          Staff  
          Comments:  According to the Commission, this bill will primarily  
          affect California Community College students as most other  
          schools verify graduation as a condition of admission.  If this  
          bill resulted in a more efficient verification process for high  
          school graduation, as intended, and resulted in fewer students  
          having to manually provide follow up information to the  
          Commission, it is possible that additional grants could be paid  
          out to students who would have otherwise not followed-up.  If  
          for example about 30 more students were awarded a Cal Grant B  
          access award of $1,656 to help pay for books and other community  
          college costs in their first year of college, this would result  
          costs of about $50,000.


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