BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 1644
Author: Ortiz (D) and Poochigian (R)
Amended: 8/24/00
Vote: 27 - Urgency
SENATE VOTES : Not Relevant
ASSEMBLY FLOOR : 77-1, 8/28/00 - See last page for vote
SUBJECT : Student financial aid
SOURCE : Authors
DIGEST :. This bill: (1) revises and expands the Cal
Grant Program and provides guarantees, as specified, for
Cal Grant awards, effective the 2001-02 academic year, (2)
creates the Community College Student Financial Aid
Outreach Program, and (3) appropriates $1.5 million from
the General Fund to the Student Aid Commission for
administrative costs related to this act.
Assembly Amendments insert all current provisions relating
to student financial aid. As it left the Senate, this bill
contained intent language to implement Budget Act
provisions.
ANALYSIS : Existing Cal Grant Program . Current law
provides for the Cal Grant Program, administered by the
Student Aid Commission (SAC), to provide grants to
financially needy students to attend college. The program
consists of four award components: Cal Grants A, B, C and
CONTINUED
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T. In 1999-2000, the budget provided about $400 million in
General Fund support to provide Cal Grant awards to
approximately 130,000 students.
Cal Grants A and B cover tuition and fees up to $9,708
annually. Additionally, although Cal Grants B generally
provide no tuition or fee coverage the first year, they do
provide an annual "subsistence" award (which is set at
$1,548 in the current year). Cal Grant C's are for
students pursuing vocational educational programs. Cal
Grant T's are for students attending fifth-year teacher
preparation programs.
This bill, an urgency measure, creates the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act under
which the receipt of a Cal Grant A or B award is guaranteed
to students who meet specified income eligibility and GPA
requirements, as specified. This program would consist of
six award components: Cal Grant A Entitlement Awards, Cal
Grant B Entitlement Awards, California Community College
Transfer Entitlement Awards, Competitive Cal Grant A and B
Awards, Cal Grant C Awards and Cal Grant T Awards. Major
provisions of the bill are as follows:
1. Cal Grant A Entitlement Awards . Specifies that a Cal
Grant A award shall be guaranteed to every student who
(a) has a minimum GPA of 3.0 on a 4.0 scale, (b) meets
income eligibility requirements, as specified, (c)
applies, as specified, by March 2 not more than one
year after graduating from a California high school.
2. Cal Grant B Entitlement Awards . Specifies that a Cal
Grant B award shall be guaranteed to every student who
(a) has a minimum GPA of 2.0 on a 4.0 scale, (b) meets
income eligibility requirements, as specified, and (c)
applies, as specified, by March 2 not more than one
year after graduating from a California high school.
3. Community College Transfer Entitlement Award .
Specifies that students transferring from a California
community college to an eligible four-year college are
entitled to receive a Cal Grant A or B award, as
appropriate, if the student (a) has a college GPA of at
least 2.4 on a 4.0 scale, (b) meets income eligibility
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requirements, as specified, (c) applies, as specified,
by March 2 of the year immediately preceding the award
year, (d) is under 24 years of age and (e) graduated
from a California high school during or after the
2001-02 academic year.
4. Competitive Cal Grant A and B Awards . Establishes the
"Competitive Cal Grant A and B" award program for
students who did not receive a "guaranteed" award and
specifies that these competitive awards are not
entitlements.
Instead, the bill specifies that a total of 22,500 A
and B awards be granted annually on a competitive basis
for applicants, as follows:
A. 50 percent of the awards would be available to
all students, including community college students,
who meet the financial and academic requirements, as
specified, and apply by March 2 (or September 2 for
community college students.)
B. 50 percent of the awards would be reserved for
qualifying community college students, as specified,
with an application deadline of September 2 annually.
The SAC would be required to report annually to the
Governor and the Legislature, beginning December 31,
2002, specified information regarding these competitive
grant awards.
5. Specifies that the maximum income and asset levels for
the Cal Grant award programs and requires the SAC to
annually adjust the maximums based on a specified
cost-of-living index.
6. States that the maximum amount for a Cal Grant A award
for students attending UC or CSU shall equal systemwide
fees. The maximum amount for students attending
nonpublic colleges would be the award level provided in
the Budget Act of 2000 (which is $9,708), or as
adjusted in future budget acts.
7. Replaces the "subsistence grant" component of the Cal
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Grant B award - currently set at $1,548 - with an
"access costs" award of $1,551, or as adjusted in
future budget acts.
8. Provides that the maximum amount for a Cal Grant B
award for students attending UC, CSU or a community
college would be the systemwide fees for the segment
they attend, as specified, plus the "access costs."
The maximum amount for students attending a nonpublic
college would be the award level provided in the Budget
Act of 2000 (which is $9,708), or as adjusted in future
budget acts, plus the "access costs" award.
9. Specifies that institutions of higher education not
reduce the need-based institutional financial aid they
provide to undergraduates below the level provided in
the 2000-01 academic year.
10. Creates the Community College Student Financial Aid
Outreach Program, effective 2001-02, whereby the SAC in
consultation with the Community College's Chancellor
shall develop and administer a program, as specified,
with priority targeted to high schools and community
colleges located in areas with high percentages of
low-income families.
11. Appropriates $1.5 million from the General Fund to the
SAC for costs related to administering this bill.
12. Sunsets the provisions of the existing Cal Grant
program as of January 1, 2010.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn, Bates,
Battin, Baugh, Bock, Brewer, Briggs, Calderon, Campbell,
Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox,
Cunneen, Davis, Dickerson, Ducheny, Dutra, Firebaugh,
Florez, Floyd, Gallegos, Granlund, Havice, Honda, House,
Jackson, Kaloogian, Keeley, Knox, Kuehl, Leach, Lempert,
Leonard, Longville, Lowenthal, Machado, Maddox,
Maldonado, Margett, Mazzoni, McClintock, Migden, Nakano,
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Olberg, Oller, Robert Pacheco, Rod Pacheco, Papan,
Pescetti, Reyes, Romero, Runner, Scott, Shelley,
Steinberg, Strickland, Strom-Martin, Thompson, Thomson,
Torlakson, Villaraigosa, Vincent, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
NOES: Baldwin
CP:kb 8/29/00 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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