BILL ANALYSIS Ó
SB 1314
Page 1
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.
SB 1314
Page 2
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
SB 1314
Page 3
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
SB 1314
Page 4
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
SB 1314
Page 5
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
SB 1314
Page 6
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
SB 1314
Page 7