BILL ANALYSIS                                                                                                                                                                                                    

                                                                    SB 1314  

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          Date of Hearing:  August 3, 2016


                               Lorena Gonzalez, Chair

          SB 1314  
          (Block) - As Amended August 1, 2016

          |Policy       |Higher Education               |Vote:|13 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |

          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          This bill provides that California Community College (CCC)  
          students participating in a baccalaureate degree pilot program,  
          who meet all other eligibility criteria, are eligible to receive  
          a Cal Grant award covering upper division coursework fees or a  
          Middle Class Scholarship for two years of full-time upper  
          division coursework. 

          FISCAL EFFECT: 


                                                                    SB 1314  

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          1)Estimated General Fund costs of $1.4 million in 2016-17, $2.7  
            million in 2017-18, and $3.1 million in 2018-19 for Cal Grants  
            and Middle Class Scholarship awards, based on an estimated  
            381,702, and 803 total recipients, respectively.  Costs will  
            continue until the pilot program sunsets in 2022-23. Cost will  
            continue if the program is extended and will increase if the  
            program is expanded to additional districts.

          2)CSAC will have annual administrative costs (General Fund) of  
            about $90,000 for one position.


          Background and Purpose. CCC students who meet income and other  
          eligibility requirements can have their student fees waived  
          under the Board of Governors Fee Waiver (BOGFW) program.  Cal  
          Grants awarded to CCC students therefore do not cover tuition  
          and fees. Additionally, the Middle Class Scholarship program is  
          specifically limited to support students at CSU and UC. 

          SB 850 (Block), Chapter 747, Statutes of 2014, authorized the  
          CCC to establish a statewide baccalaureate degree pilot program  
          at not more than 15 districts. In addition to the $46 per unit  
          statutory enrollment fee at the CCC, SB 850 authorized these  
          districts to charge an $84 per unit fee for upper division  
          coursework in the pilot program. Therefore, students enrolled in  
          the 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  CCC upper division students who meet all other  


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          qualifications of these financial aid programs.

          According to the author, "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."

          Analysis Prepared by:Chuck Nicol / APPR. / (916)