BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 21, 2016 


                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION


                                 Jose Medina, Chair


          SB  
          1314 (Block) - As Amended April 19, 2016


          SENATE VOTE:  39-0


          SUBJECT:  Cal Grant Program:  Middle Class Scholarship Program:   
          community college baccalaureate degree program students


          SUMMARY:  Provides that California Community College (CCC)  
          students participating in a baccalaureate degree pilot program  
          are eligible for California financial aid.   Specifically, this  
          bill:  


          1)Provides that CCC students participating in a baccalaureate  
            degree pilot program, who meet all other Cal Grant program  
            eligibility criteria, are eligible to receive an award to  
            cover upper division coursework fees. 


          2)Provides that CCC students participating in a baccalaureate  
            degree pilot program are eligible to receive a Middle Class  
            Scholarship for two years of full-time upper division  
            coursework.  The CCC Chancellor's Office would be required to  
            report to the California Student Aid Commission (CSAC)  
            regarding any financial aid data necessary for the  
            determination of award amounts.    








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          EXISTING LAW:   


          1)Establishes the Cal Grant program, administered by 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, grade  
            point average (GPA), California residency and other criteria.   
            (Education Code Sections 69430 - 69433) 





          2)Establishes the Middle Class Scholarship to provide  
            undergraduate students enrolled at the University of  
            California (UC) or the California State University (CSU) a  
            scholarship award that, when combined with other grants and  
            fee waivers, totals up to 40% of the systemwide tuition and  
            fees.  To qualify, students are required to have an annual  
            household income that does not exceed $150,000, as adjusted  
            for changes in cost of living, satisfies specified  
            requirements for the Cal Grant award, maintain at least a 2.0  
            GPA, and meet other requirements.  Existing law requires the  
            UC and the CSU to provide the CSAC with any financial aid data  
            that are necessary for the determination of award amounts. (EC  
            Sections 70020 - 70023)



          3)Authorizes the Board of Governors of CCC, in consultation with  
            the CSU and the 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 Education Code Section 76300, districts  








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            are authorized to charge an $84 per unit fee for upper  
            division coursework in a baccalaureate degree pilot program.   
            (EC Sections 78040 - 78042) 







          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:




          1)Grant awards: The CSAC estimates costs in the low millions  
            annually to apply the Cal Grant program and Middle Class  
            Scholarship awards to eligible students participating in the  
            community college baccalaureate degree pilot program.  This  
            estimate includes $1.4 million for the 2016-17 fiscal year;  
            $2.7 million in the 2017-18 fiscal year; and $3.1 million in  
            the 2018-19 fiscal year.  Costs will persist for the length of  
            the program.  (General Fund)




          2)Administrative costs: The CSAC anticipates the need for one  
            position to implement the requirements of this bill which will  
            likely cost approximately $90,000.  Additional unknown costs  
            related to contracting for programming services are cited by  
            the CSAC to make necessary changes in the grant delivery  
            system.  (General Fund)




          3)Cost Pressures: Additional substantial cost pressures to  








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            extend these awards to students on an ongoing basis if the  
            pilot expands to all community college districts and becomes  
            its own program.


          COMMENTS:  Background. CCC students who meet income and other  
          eligibility requirements can have their CCC fees waived under  
          the Board of Governors Fee Waiver (BOGFW) program.  Due to this,  
          under current law, Cal Grant awards to CCC students do not cover  
          tuition and fees.  Additionally, Middle Class Scholarship is  
          specifically limited to support students at CSU and UC.  CCC  
          students enrolled in a CCC baccalaureate degree pilot program  
          will be assessed tuition and fees not currently covered by the  
          BOGFW.  This bill provides CSAC the authority to disperse Cal  
          Grant and Middle Class Scholarship awards to cover these fees to  
          students who meet all other qualifications.      


          Purpose of this bill.  According to the author, this bill "seeks  
          to clarify and ensure that the Cal Grant (A or B), Cal Grant  
          Transfer Entitlement, and Middle Class Scholarship can be  
          awarded to CCC students seeking a 4-year degree under the Pilot  
          Program established by SB 850 (Block, Ch. 747, Statutes of  
          2014).  The lack of clarity in current law could create issues  
          of inequity in that some upper division students would not be  
          able to receive state financial assistance as other students and  
          thereby would reduce the possibility of completing a four-year  
          course of study because of financial need. This bill would  
          remove any ambiguity in statute and ensure that all students  
          enrolled in a four-year course of study at a CCC would enjoy  
          access to California's financial aid programs." 


          REGISTERED SUPPORT / OPPOSITION:




          Support








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          American G.I. Forum of California


          American Legion-Department of California


          AMVETS-Department of California


          Association of California School Administrators


          Board of Governors of the California Community Colleges


          California Association of County Veteran Service Offices


          California Community Colleges


          California State Commanders Veterans Council


          California Student Aid Commission


          Community College League of California


          Foothill-De Anza Community College District


          Kern Community College District


          Los Angeles Community College District








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          Military Officers Association of America-California Council of  
          Chapters


          San Diego Community College Districts


          San Diego Regional Chamber of Commerce


          Tri-City Medical Center


          VFW-Department of California


          Vietnam Veterans of America, California State Council




          Opposition


          None on File




          Analysis Prepared by:Laura Metune / HIGHER ED. / (916)  
          319-3960














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