AB 2787, as introduced, Chávez. Student financial aid: Middle Class Scholarship Program: private nonprofit postsecondary educational institutions.
Under existing law, the Middle Class Scholarship Program provides that, subject to an available and sufficient appropriation, commencing with the 2014-15 academic year, an undergraduate student enrolled at the University of California or the California State University, and meeting certain requirements, is eligible for a scholarship award that, combined with other federal, state, and institutionally administered grants and fee waivers, totals up to 40% of the systemwide tuition and fees. Under existing law, to receive an award under the Middle Class Scholarship Program, a student is required to have an annual household income that does not exceed $150,000 as adjusted to reflect changes in the cost of living, satisfy specified requirements for a Cal Grant award, be a California resident or exempt from paying nonresident tuition, file specified financial aid forms, timely apply for publicly funded student financial aid for which he or she is eligible, maintain at least a 2.0 grade point average, be pursuing his or her first undergraduate baccalaureate degree or be enrolled in a specified professional teacher preparation program, and be enrolled at least part time.
Existing law transfers $159,000,000 from the General Fund to the Middle Class Scholarship Fund, and appropriates that sum to the Student Aid Commission for purposes of the scholarship program for the 2017-18 fiscal year.
Existing law requires the University of California and the California State University, in order for students of their respective segments to remain eligible to receive a scholarship award under the Middle Class Scholarship Program, to not supplant their respective institutional need-based grants with funds provided for scholarships under this program, and to maintain their funding amounts at a level that, at a minimum, is equal to the level maintained for undergraduate students during the 2013-14 academic year.
This bill would extend the Middle Class Scholarship Program to undergraduate students who meet the requirements of the program and are enrolled in private nonprofit postsecondary educational institutions, commencing with the 2017-18 academic year, as specified, but the bill would not affect the statutory appropriation for the program for the 2017-18 fiscal year that is referenced above. The bill would subject participating private nonprofit postsecondary educational institutions to the requirement to maintain its scholarship funding levels, as referenced above.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 70022 of the Education Code is amended
(a) (1) Subject to an available and sufficient
4appropriation, commencing with the 2014-15 academic year, an
5undergraduate student enrolled in the California State
begin delete University the University of
begin delete Californiaend delete who meets the requirements
9of paragraph (2) is eligible for a scholarship award as described
10in that paragraph.
11(2) Each academic year, except as provided in paragraphs (3)
12and (4), an eligible student shall receive a scholarship award in an
13amount that, combined with other federal, state, or institutionally
14administered student grants or fee waivers received by an eligible
P3 1student, is up to 40 percent of the amount charged to that student
2in that academic year for mandatory systemwide tuition and
begin delete fees,end delete
3 if all of
6the following requirements are met, to the satisfaction of the
7commission, each academic year:
8(A) The student’s annual household income does not exceed
9one hundred fifty thousand dollars ($150,000). For awards
10distributed for the 2016-17 academic year and subsequent
11academic years, the commission shall annually adjust the maximum
12income level set under this subparagraph in accordance with the
13percentage changes in the cost of living within the meaning of
14paragraph (1) of subdivision (e) of Section 8 of Article XIII B of
15the California Constitution. For purposes of this article, annual
16household income shall be calculated in a manner that is consistent
17with the requirements applicable to the
18Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
19(Chapter 1.7 (commencing with Section 69430)) and Section
21(B) Beginning with awards distributed in the 2015-16 academic
22year, the student’s household asset level shall not exceed one
23hundred fifty thousand dollars ($150,000). For awards distributed
24in the 2016-17 academic year and subsequent academic years, the
25commission shall annually adjust the maximum household asset
26level set under this subparagraph in accordance with the percentage
27changes in the cost of living within the meaning of paragraph (1)
28of subdivision (e) of Section 8 of Article XIII B of the California
29Constitution. For purposes of this article, student’s household asset
30level shall be calculated in a manner that is consistent with the
31requirements applicable to the
32Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
33(Chapter 1.7 (commencing with Section 69430)) and Section
35(C) The student satisfies the eligibility requirements for a Cal
36Grant award pursuant to Section 69433.9, except that a student
37who is exempt from nonresident tuition under Section 68130.5
38shall not be required to satisfy the requirements of subdivision (a)
39of Section 69433.9.
P4 1(D) The student is exempt from paying nonresident
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4(E) The student completes and submits a Free Application for
5Federal Student Aid (FAFSA) application. The FAFSA must be
6submitted or postmarked by no later than March 2. If the student
7is not able to complete a FAFSA application, the student may
8satisfy this subparagraph by submitting an application determined
9by the commission to be equivalent to the FAFSA application for
10purposes of this article by March 2.
11(F) The student makes a timely application or applications for
12all other federal, state, or institutionally administered grants or fee
13waivers for which the student is eligible.
14(G) The student maintains satisfactory academic progress in a
15manner that is consistent with the requirements applicable to the
16Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
17pursuant to subdivision (m) of Section 69432.7.
18(H) The student is pursuing his or her first undergraduate
19baccalaureate degree or has completed a baccalaureate degree and
20has been admitted to, and is enrolled in, a program of professional
21teacher preparation at an institution approved by the California
22Commission on Teacher Credentialing.
23(I) The student is enrolled at least part time.
24(3) (A) The percentage specified in paragraph (2) shall be
25reduced by 0.6-percent increments per one thousand dollars
26($1,000) of annual household income in excess of one hundred
27thousand dollars ($100,000), to a minimum 10 percent of
begin delete mandatory systemwideend delete tuition and fees for an academic year,
29provided that no scholarship award shall be provided to a student
30with an annual household income exceeding one hundred fifty
31thousand dollars ($150,000). Beginning with award calculations
32for the 2016-17 academic year, and for subsequent academic years,
33the commission shall annually adjust the income levels specified
34in this subparagraph by the percentage change in the cost of living
35within the meaning of paragraph (1) of subdivision (e) of Section
368 of Article XIII B of the California Constitution and shall adjust
37the incremental reduction accordingly to ensure that a minimum
38of 10 percent of
begin delete mandatory systemwideend delete tuition and fees for an
39academic year are awarded. This reduction shall be in addition to
40any reduction required by Section 70023.
P5 1(B) Notwithstanding subparagraph (A), for any student who
2qualifies for a scholarship award of at least one dollar ($1), the
3minimum annual scholarship amount for full-time enrollment is
4ninety dollars ($90).
5(4) For the 2014-15, 2015-16, and 2016-17 academic years,
6the maximum amount of a student’s scholarship award shall be 35
7percent, 50 percent, and 75 percent, respectively, of the total
8scholarship award amount that the student would otherwise be
9eligible to receive.
10(b) In order for students enrolled in their respective segments
11to remain eligible to receive a scholarship award under this article,
12the University of
begin delete California andend delete the California State
begin delete Universityend delete
shall not supplant their
15respective institutional need-based grants with the funds provided
16for scholarships under this article, and shall maintain their funding
17amounts at a level that, at a minimum, is equal to the level
18maintained for undergraduate students during the 2013-14
20(c) The University of California and the California State
21University shall report on the implementation of this article as part
22of the report made pursuant to Section 66021.1.
23(d) A Middle Class Scholarship Program award authorized
24pursuant to this article shall be defined as a full-time equivalent
25grant. An award to a part-time student shall be a fraction of a
26full-time grant, as determined by the proportionate amount charged
begin delete systemwideend delete tuition and fees. A part-time student shall not
28be discriminated against in the selection of Middle Class
29Scholarship Program awards. For purposes of this section,
30“full-time student” and “part-time student” have the same meaning
31as specified in subdivision (f) of Section 69432.7.