BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 187
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 187 (Budget Committee)
          As Amended  September 4, 2009
          2/3 vote.  Urgency 
           
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          |ASSEMBLY:  |     |(May 4, 2009)   |SENATE: |34-2 |(October 14,   |
          |           |     |                |        |     |2009)          |
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                    (vote not relevant)           
           
           Original Committee Reference:   RLS.  

           SUMMARY  :  Provides for the 2009-10 operations of the California  
          Student Aid Commission (Commission) and implements an  
          alternative delivery system pilot program for Cal Grants. 

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Implement an alternative delivery system pilot program for Cal  
            Grants. The pilot institutions must function as one-stop shop  
            for financial aid information for all students, parents, and  
            high school and community college counselors. 

          2)The California Student Aid Commission (CSAC) must adopt  
            emergency regulations to implement the pilot program by July  
            1, 2010.

          3)The CSAC shall convene an advisory task force to assist in  
            understanding the technical and data requirements for  
            implementation. 

          4)The pilot program cannot disrupt or impair the current Cal  
            Grant process for institutions not participating in the pilot  
            program.

          5)The pilot program cannot be implemented until a requisite  
            number of institutions volunteer to participate - no more than  
            a total of 35 institutions, with no more than 25% of any one  
            segment of higher education participating; however the  
            statewide governing bodies of the public institutions may  
            choose which institutions would want to participate.

          6)Institutions must submit an application acknowledging they  








                                                                  AB 187
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            comply and will maintain compliance with requirements of  
            participation.

          7)Participating institutions shall:  a)  make eligibility  
            determinations consistent with the requirements of the Cal  
            Grant Program; b)  inform students of their award; c)  make  
            Cal Grant award part of institution's complete financial aid  
            award, so that students are aware of all the student aid is  
            eligible to receive; and, d)  provide student notice that the  
            Grant may be eligible to be used at another institution.

          8)Participating institutions shall report various information:   
            a)  necessary for funding budgetary funding projections; b)   
            on applicants by income level, gender, age, and ethnicity; c)   
            on applicants that have been awarded a Cal Grant, but have  
            withdrawn from their qualifying institution or not has been  
            disbursed; d)  information on total amount of institutional  
            aid available for students; and, e)  information on actual  
            amount of financial aid (by source) awarded to students.

          9)All costs shall be paid by the participating institutions.   
            And participating public institution shall not require  
            additional state funds.

          10)Pilot program is completely voluntary. 

          11)The Commission shall not conduct its duties under the  
            provisions of this bill until the Commission in a regular  
            public meeting, determines that sufficient funding exists for  
            it to conduct its regular operations for administering the Cal  
            Grant Program.

          12)The Legislative Analyst and the CSAC shall report back to the  
            Legislature and Governor by January 10, 2012.

          13)The measure contains a $4.3 million General Fund (GF)  
            appropriation for 2009-10 state operations of the Student Aid  
            Commission. The CSAC can only implement the pilot program,  
            once they determine sufficient funding exists to conduct its  
            regular operations for administering the Cal Grant program.
           
          AS PASSED BY THE ASSEMBLY  , this bill would express the intent of  
          the Legislature to make statutory changes relating to the Budget  
          Act of 2009.









                                                                  AB 187
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           FISCAL EFFECT  :  Appropriates $4.3 million GF for 2009-10 state  
          operations of Student Aid Commission. 


           Analysis Prepared by  :    Sara Bachez / BUDGET / 319-2099


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