BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1314


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          SENATE THIRD READING


          SB  
          1314 (Block)


          As Amended  August 1, 2016


          Majority vote


          SENATE VOTE:  39-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Higher          |13-0 |Medina, Baker, Bloom, |                    |
          |Education       |     |Chávez, Irwin,        |                    |
          |                |     |Jones-Sawyer, Levine, |                    |
          |                |     |Linder, Low, Olsen,   |                    |
          |                |     |Santiago, Weber,      |                    |
          |                |     |Williams              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |








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          |                |     |McCarty               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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.    


          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 (EC) Sections 69430 to 69433) 









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          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 to 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 EC Section 76300, districts are  
            authorized to charge an $84 per unit fee for upper division  
            coursework in a baccalaureate degree pilot program.  (EC  
            Sections 78040 to 78042) 




          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)Estimated General Fund costs of $1.2 million in 2016-17, $2.4  
            million in 2017-18, and $2.8 million in 2018-19 for Cal Grants  
            and Middle Class Scholarship awards, based on an estimated  
            320,619, and 720 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.








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


          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), Chapter 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." 




          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:   
          0004013








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