BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2056 (Eduardo Garcia) - Cal Grant Program: graduation verification ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 21, 2016 |Policy Vote: ED. 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- 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 AB 2056 (Eduardo Garcia) Page 1 of ? 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 AB 2056 (Eduardo Garcia) Page 2 of ? 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. -- END -- AB 2056 (Eduardo Garcia) Page 3 of ?