BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 1314            
           ----------------------------------------------------------------- 
          |Author:    |Block                                                |
          |-----------+-----------------------------------------------------|
          |Version:   |February 19, 2016                       Hearing      |
          |           |Date:     March 30, 2016                             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:   |No                     |Fiscal:     |Yes             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant:|Olgalilia Ramirez                                    |
          |           |                                                     |
           ----------------------------------------------------------------- 
          
          Subject:  Cal Grant A Entitlement Program


            SUMMARY
          
          This bill clarifies Cal Grant A Entitlement award eligibility  
          for community college students participating in specified  
          baccalaureate degree programs.  

            BACKGROUND
          
          Existing law authorizes the Cal Grant program, administered by  
          the California Student Aid Commission (CSAC), to provide grants  
          to financially needy students to attend a college or university.  
          The Cal Grant programs include both the entitlement and the  
          competitive Cal Grant awards. The program consists of the Cal  
          Grant A, Cal Grant B, and Cal Grant C programs and eligibility  
          is based upon financial need, GPA, California residency and  
          other criteria.  (Education Code § 69430 - 69433) 

          Existing law establishes the Cal Grant A entitlement award to be  
          used for tuition or fees for the equivalent of four full-time  
          years at qualifying postsecondary institutions to eligible lower  
          and middle income high school graduates who have at least a 3.0  
          GPA on a four-point scale and apply within one year of  
          graduation. A Cal Grant A recipient who decides to attend a  
          California community college may elect to have the award held in  
          "reserve" for a period not to exceed two years.  (EC § 69434 and  
          69434.5)








          SB 1314 (Block)                                         Page 2  
          of ?
          
          
          Existing law requires the Board of Governors (BOG) to charge  
          each student a $46 per unit per semester fee. Existing law  
          requires a waiver (BOG waiver) of these fees for certain  
          students including a student who meets specified income  
          requirements. 
          (EC § 76300)

          Existing law authorizes the California Community Colleges (CCC)  
          Board of Governors (BOG), in consultation with the California  
          State University (CSU) and the University of California (UC), to  
          establish a statewide baccalaureate degree pilot program at not  
          more than 15 CCC districts, as specified. In addition to the $46  
          per unit enrollment fee authorized pursuant to EC 76300,  
          districts are authorized to charge an $84 per unit fee for upper  
          division coursework in a baccalaureate degree pilot program.  
          (EC § 78040 - 78042) 

            



          ANALYSIS
          
          This bill clarifies that a community college student  
          participating in a community college baccalaureate degree pilot  
          program who meets Cal Grant A entitlement program criteria is  
          able to receive a Cal Grant A for tuition and fees. 

          STAFF COMMENTS
          
          1)   Need for the bill.  SB 850 (Chapter 747, statutes of 2014)  
               authorized California Community Colleges (CCC) to establish  
               a baccalaureate degree pilot program. According to the  
               author, the California Student Aid Commission has opined  
               that, under existing law, it is unclear whether community  
               college students enrolled in these new programs could  
               receive Cal Grant A assistance for upper division  
               coursework fees at a CCC. 

          2)   Why is there a lack of clarity?  Community College students  
               who are Cal Grant recipients would typically have the  
               community college enrollment fee waived through the Board  
               of Governors (BOG) fee waiver program.  Community college  
               students  who receive the Cal Grant A award would normally  








          SB 1314 (Block)                                         Page 3  
          of ?
          
          
               have their award held in reserve for up to two years until  
               the student transfers to a four-year institution, at which  
               time the California Student Aid Commission (CSAC) would  
               disburse the Cal Grant A award.

               According to CSAC, Cal Grant A funds have never been  
               disbursed to a community college student since all  
               community college fees up to this point would be covered by  
               the BOG fee waiver.  The CSAC believe that they must be  
               provided clear authority to disburse Cal Grant A  
               Entitlement award funds to a community college student for  
               purposes of paying the upper division fee with Cal Grant  
               monies.  

               This bill would ensure that community college students who  
               meet the Cal Grant A program requirements receive  
               assistance to cover fees established for upper division  
               courses in the baccalaureate degree pilot program. However,  
               as currently drafted the bill could be interpreted to  
               authorize the use of Cal Grant A funds to pay both the $46  
               enrollment fee and the $84 dollar upper division coursework  
               fee.  Staff recommends an amendment to clarify that these  
               students are eligible for Cal Grant A for purposes of upper  
               division course fees.

          3)   Why is this not an issue for Cal Grant B students? Unlike  
               Cal Grant A students, Cal Grant B students at a community  
               college receive an access award.  However, similar to the  
               Cal Grant A award, the portion of the Cal Grant B award  
               that covers tuition and fees is typically waived through  
               the BOG waiver. Presumably, a Cal Grant B access award  
               could be disbursed to students beyond two years even if  
               tuition is not. It's unclear whether the CSAC or CCC would  
               interpret the authority to also pay tuition for the upper  
               division coursework fee. Neither CSAC nor CCC was able to  
               provide clarification at the time this analysis was  
               written. The author may want to clarify this question as  
               the bill progresses.

          4)   Fiscal impact.  The pilot degree program is currently  
               limited to 15 community college districts with one  
               baccalaureate degree program authorized at each  
               participating district. A student enrolled in the pilot  
               program cannot be charged fees greater than the mandatory  








          SB 1314 (Block)                                         Page 4  
          of ?
          
          
               systemwide fee charged for California State University  
               baccalaureate degree programs. Students must complete their  
               degree by the end of 2022 - 2023 academic year as the  
               program is scheduled to sunset July 1, 2023. Arguably, if  
               these students had gained access to an eligible four-year  
               institution like UC or CSU the overall fees would be  
               greater than fees for the CCC baccalaureate program. 

           SUPPORT
          
          Community College League of California 
          Foothill-De Anza County Community College District
          Kern County Community College District
          San Diego County Community College District

            OPPOSITION
           
           None received.

                                      -- END --