Amended in Senate March 25, 2015

Senate Bill No. 15

Introduced by Senators Block, De León, and Liu

(Coauthors: Senators Allen, Beall, Hancock, Hill, Hueso, Lara, Leno, Mitchell, Wieckowski, and Wolk)

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(Coauthor: Assembly Member Medina)

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December 1, 2014

An act to amend Sections 69432 and 69437 of, and to add Article begin delete 23 end delete begin insert 24 end insert (commencing with Section begin delete 70030) end delete begin insert 70045) end insert to Chapter 2 of Part 42 of Division 5 of Title 3 of, the Education Code, relating to postsecondary education.

LEGISLATIVE COUNSEL’S DIGEST

SB 15, as amended, Block. Postsecondary education: financial begin delete aid. end delete begin insert aid: Graduation Incentive Grant program. end insert

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The

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begin insert (1) end insert begin insert   end insert begin insert The end insert 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. Existing law establishes the total number of Competitive Cal Grant A and B awards granted annually at 22,500 and the maximum tuition award amount for each Cal Grant A and B award for new students attending private nonprofit postsecondary educational institution at $9,084 for the 2014-15 award year and $8,056 for the 2015-16 award year and each award year thereafter.

This bill would increase the total number of Competitive Cal Grant A and B awards granted annually to 30,000 and would increase the maximum tuition award amount for Cal Grant A and B for students at private nonprofit postsecondary begin delete schools end delete begin insert educational institutions end insert to $9,084 for the 2015-16 award year and each award year thereafter.

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(2) Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in this state.

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This bill would establish, commencing with the 2015-16 academic year, the begin delete Competitive end delete begin insert Graduation end insert Incentive Grant begin delete Award end delete begin insert program end insert to provide begin insert eligible matriculating undergraduate end insert students begin insert of California State University end insert with financial need attending a campus of the California State University with begin delete additional end delete financial aid begin delete over a 3-year period, end delete begin insert for up to 3 college years, end insert as specified. begin insert The bill would specify the eligibility criteria and the award amounts of the Graduation Incentive Grant program. The bill would require the California State University to make an annual report, containing specified data about the program, to the Legislature. The program would only be operative in a fiscal year if the Trustees of the California State University determine that sufficient funding has been provided for purposes of the program for that fiscal year in the annual Budget Act or another statute. end insert

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The bill would express the intent of the Legislature to appropriate funds, for the 2015-16 fiscal year, to the University of California to eliminate a specified tuition increase and to appropriate funds to both the University of California and the California State University to provide additional course offerings and support services for students.

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

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

SECTION 1.  

begin delete (a) end delete begin delete   end delete The Legislature finds and declares all of the
following:

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(1) According to the

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begin insert (a) end insert begin insert   end insert begin insert The end insert Public Policy Institute of begin delete California, end delete begin insert California reports
that, end insert in 2025, 41 percent of jobs will require at least a bachelor’s
degree. However, if current trends begin delete persists, end delete begin insert persist, end insert only 35 percent
of working-age California adults will have a bachelor’s degree by
2025. Without more students entering and completing a college
degree, California will not meet workforce demands.

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(2) According to the

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(b) State General Fund support for the California State
University and the University of California has dropped from 11
percent to 8 percent of the total state budget.

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert Public Policy Institute of begin delete California, end delete begin insert California reports
that end insert in-state full tuition at the University of California and the
California State University has risen more dramatically than at
other public universities in other states over the past decade. From
2004 to begin delete 2103, end delete begin insert 2013, end insert the average tuition at the University of
California and the California State University has more than
doubled. California must make college more affordable and
accessible for all of its students.

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(3)  According to

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begin insert (d) end insert begin insert   end insert begin insert A report by end insert the Campaign for College begin delete Opportunity, end delete
begin insert Opportunity confirms that end insert an individual between 25 and 64 years
of age who completes at least a bachelor of arts degree can
anticipate earning an additional one million three hundred thousand
dollars ($1,300,000) in wages and salary.

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(4)

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begin insert (e) end insert  According to the State begin insert Higher end insert Education Executive Officers,
enrolling in 15 credit hours per term is the number one predictor
of student success.

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(5) According to the Campaign for College Opportunity, if a
California State University student enrolls in less than 15 credits
per semester or takes time off, he or she will take longer than the
expected four years to earn a bachelor’s degree that requires 120
credits.

(6) According to the Campaign for College Opportunity, the
increased cost of tuition to attend a California State University
may have caused more students to work, or work more hours, to
pay for school. Research

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(f) College students who complete 30 semester units or the
equivalent per year can earn a 120-unit degree in four years.

end insert

begin insert (g) end insert begin insert   end insert begin insert Research end insert has demonstrated that working behavior is a
significant contributor to delayed time to earning a degree.
Essentially, begin delete students are end delete begin insert a student is end insert forced to choose between
either working to earn money or taking additional courses to
progress in earning begin delete their end delete begin insert a end insert degree.

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(b) It is the intent of the Legislature, in the 2015-16 fiscal year,
to appropriate funds to the Regents of the University of California
for the following purposes:

(1) Eliminate the five-percent tuition increase adopted by the
Regents of the University of California in November 2014.

(2) Provide additional course offerings for students to complete
a bachelor’s degree in four years or less.

(3) Provide support services to students to aid them in
completing a bachelor’s degree in four years of less.

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SEC. 2.  

Section 69432 of the Education Code is amended to
read:

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) Nine thousand eighty-four dollars ($9,084) 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).

SEC. 3.  

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 B award program for students who
did not receive a Cal Grant A or 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) A total of 30,000 Cal Grant A and 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 30,000 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 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 each of the
following:

(A) Students who graduated from high school or its equivalent
prior to the 2000-01 academic year. This subparagraph shall not
be applicable after the 2004-05 academic year.

(B) Students pursuing Cal Grant B awards who reestablish their
grade point averages.

(C) 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.

SEC. 4.  

Article begin delete 23 end delete begin insert 24 end insert (commencing with Section begin delete 70030) end delete
begin insert 70045) end insert is added to Chapter 2 of Part 42 of Division 5 of Title 3 of
the Education Code, to read:

 

Article begin delete 23. end delete begin insert 24. end insert   begin delete Competitive Incentive Grant Award end delete begin insert Graduation
Incentive Grant Program end insert

 

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70030.  

For purposes of this article, “student with financial
need” means a student attending a campus of the California State
University who has demonstrated a need for a state, federal, or
institutional financial aid to pay for tuition.

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begin insert 70045. end insert   

For purposes of this article, the following shall apply:

(a) “Academic discipline” is determined by grouping academic
programs by areas of study for California State University
systemwide reporting.

(b) “Academic year” means the total of two consecutive
semesters or three quarters, commencing with the opening of the
fall term. Each semester or quarter is approximately the same
length.

(c) “Associate degree for transfer” means an associate degree
established according to the criteria established in Section 66746.

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

(e) A “college year” is equivalent to the 12 consecutive months
of an academic year and the following summer.

(f) “Cost of attendance” means the student’s tuition and fees,
books and supplies, room, board, transportation expenses, and
any other student expenses used to calculate a student’s financial
need for purposes of federal Title IV student aid programs.

(g) “Expected family contribution” means a student’s expected
family contribution calculated according to 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.)).

(h) “Financial need” means a student’s financial need
calculated pursuant to the federal financial need methodology (as
established by Title IV of the federal Higher Education Act of 1965,
as amended (20 U.S.C. Sec. 1070 et seq.)).

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

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begin delete 70031. end delete
begin insert 70046. end insert   

(a) Commencing with the 2015-16 academic year,
there shall be established the begin delete Competitive end delete begin insert Graduation end insert Incentive
Grant begin delete Award end delete begin insert program end insert for begin insert California State University matriculated
undergraduate end insert students with financial need. begin insert The grant shall be
awarded beginning in the 2015-16 academic year, and for each
academic year thereafter. end insert The purpose of the grant award is to
provide those students with additional financial aid to offset their
total cost of education, including the costs of housing, textbooks,
and transportation.

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(b) A matriculated undergraduate student attending the
California State University may receive a grant award under the
Graduation Incentive Grant program if the student satisfies all of
the following requirements:

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(1) The student is a California resident or is exempt from paying
nonresident tuition under Section 68130.5.

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(2) The student is determined by the participating institution to
have an expected family contribution of not more than twelve
thousand dollars ($12,000) after filing a Free Application for
Federal Student Aid or California Dream Application in a timely
manner.

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(3) The student maintains satisfactory academic progress at the
participating institution, as determined by the institution.

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(4) The student is not incarcerated.

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(5) The student is not in default on any student loan and has
not failed to repay a federal or state student grant where required
to do so.

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(6) The student has enrolled in at least 12 semester units or the
equivalent in each term for which the grant is received.

end insert begin insert

(7) The student has a declared major.

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(b)

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begin insert (c) end insert  The begin delete Competitive end delete begin insert Graduation end insert Incentive Grant begin delete Award end delete begin insert award end insert
shall be begin delete allocated to a student end delete begin insert awarded annually to an eligible
matriculated undergraduate California State University student end insert
with financial need begin delete over a three-year period end delete begin insert for up to three college
years, end insert as follows:

(1) One thousand dollars ($1,000) if the student completes 30
begin insert semester units or 45 quarter end insert units by the end of his or her first
begin delete academic end delete begin insert college end insert year.

(2) One thousand five hundred dollars ($1,500) if the student
completes 60 begin insert semester or 90 quarter end insert units by the end of his or her
second begin delete academic end delete begin insert college end insert year.

(3) Two thousand dollars ($2,000) if the student completes 90
begin insert semester units or 135 quarter end insert units by the end of his or her third
begin delete academic end delete begin insert college end insert year.

begin insert

(d) A student who transfers to the California State University
with an associate degree for transfer shall be eligible to receive
a Graduation Incentive Grant award in the first academic year of
enrollment at the university. A student who transfers to the
California State University without an associate degree for transfer
shall be eligible to receive a Graduation Incentive Grant upon
completion of his or her first college year at the university and the
requisite number of units, as indicated in subdivision (c). For
purposes of the grant award, the college year of a transfer student
shall be counted from that student’s initial matriculation at a
postsecondary educational institution.

end insert begin insert

(e) (1) To the extent practicable, a Graduation Incentive Grant
award shall be awarded at the same time as a recipient’s overall
financial aid package.

end insert begin insert

(2) The Graduation Incentive Grant shall be considered a
supplemental grant, and shall not supplant any other grant or
scholarship aid including, but not necessarily limited to, federal
grants, Cal Grant awards, institutional grants, merit-based
scholarships, and athletic scholarships.

end insert begin insert

(3) A Graduation Incentive Grant award, or a portion thereof,
shall not cause a student’s total grant or scholarship aid, including
a grant received pursuant to this article, to exceed the total cost
of attendance for that student.

end insert begin insert

(4) A Graduation Incentive Grant award shall be awarded to
an eligible student on a year-to-year basis, contingent on the
provision of adequate state funding and the maintenance of that
student’s eligibility. A student’s receipt of a grant in one academic
year provides no assurance that the student will receive a grant
in a subsequent academic year.

end insert begin insert

(f) (1) Each campus of the California State University shall
administer the Graduation Incentive Grant program in accordance
with the criteria established in this section.

end insert begin insert

(2) The Trustees of the California State University may adopt
regulations to administer the Graduation Incentive Grant program
established pursuant to this article.

end insert

begin insert

begin insert 70047. end insert   

(a) On or before April 1, 2017, and on or before April
1 of each year thereafter, the California State University shall
report all of the following to the Legislature:

(1) The number of students who successfully completed 30
semester units or 45 quarter units, 60 semester units or 90 quarter
units, 90 semester or 135 quarter units, and 120 semester or 180
quarter units during the immediately preceding college year.

(2) The number of first-time freshmen who successfully
completed 30 semester or 45 quarter units during the immediately
preceding college year, and the number of first-time freshmen who
enroll in the subsequent college year with fewer than 30 semester
or 45 quarter units.

(3) The number of transfer students who successfully qualified
for the Graduation Incentive Grant award, disaggregated by
associate degree for transfer recipients and students who
transferred without holding an associate degree for transfer.

(4) The number of eligible students who successfully met the
unit completion requirements of the Graduation Incentive Grant
program.

(5) The average grade point average of Graduation Incentive
Grant award recipients, reported by college year.

(6) Information reported pursuant to this section shall be
disaggregated by academic discipline, race, ethnicity, gender, and
socioeconomic status.

(b) Reports made pursuant to this section shall comply with
Section 9795 of the Government Code.

end insert begin insert

begin insert 70048. end insert   

This article shall not be operative in a fiscal year unless
the trustees determine that sufficient funding has been provided
for purposes of this article for that fiscal year in the annual Budget
Act or another statute. Any funding allocated for the purpose of
awarding Graduation Incentive Grant awards under this article
shall be considered supplemental to the operating budget of the
California State University.

end insert

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begin insert SEC. 5. end insert   

end insert begin insert

It is the intent of the Legislature to do both of the
following to support higher education in California for the 2015-16
fiscal year:

end insert begin insert

(a) Appropriate funds to the Regents of the University of
California for the 2015-16 fiscal year to eliminate the 5 percent
tuition increase adopted by the regents in November 2014.

end insert begin insert

(b) Appropriate funding to the University of California and the
California State University to do both of the following:

end insert begin insert

(1) Provide additional course offerings for students to complete
a bachelor’s degree in four years or less.

end insert begin insert

(2) Provide support services to students to aid them in
completing a bachelor’s degree in four years or less.

end insert

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CORRECTIONS:

Text--Page 1.

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