BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1997
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1997 (Portantino)
          As Amended  March 17, 2010
          Majority vote 

           HIGHER EDUCATION    8-0                                         
           
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          |Ayes:|Block, Adams, Chesbro,    |     |                          |
          |     |Fong, Fuller, Galgiani,   |     |                          |
          |     |Portantino, Ruskin        |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :   Authorizes the California Community Colleges (CCC) to  
          use the Free Application for Federal Student Financial Aid  
          (FAFSA) when awarding the CCC Board of Governors (BOG) fee  
          waiver to students, except on a case-by-case basis as determined  
          by a campus authority with responsibility for student financial  
          aid programs.  

           FISCAL EFFECT  :   None  

           COMMENTS  :   A CCC student may apply for a BOG fee waiver by  
          submitting a FAFSA or by submitting a Short Form.  Recent  
          studies estimate that at least 20% of CCC students received a  
          BOG fee waiver through the Short Form instead of the FAFSA,  
          which is the core document used to determine eligibility for all  
          major federal and state financial aid programs, including Cal  
          Grant, Pell Grant, institutional aid at the University of  
          California and the California State University, work-study  
          awards, scholarships, and federal student loans.  Thus, these  
          students leave anywhere from $100 million to $500 million in  
          federal dollars on the table-aid that can help these students  
          attain their educational goals by requiring them to work less  
          and/or take out fewer loans.  

          When CCC fee requirements began in the 1980s, statutory  
          authority was given to CCC to award fee waivers, and the CCC  
          Chancellor's Office developed the Short Form in order to provide  
          rapid relief from fee payment for low income students.  At that  
          time, the federal and state application processes were much  
          slower, relied upon a cumbersome paper system, and were  
          significantly more complex.  The Short Form was necessary to  








                                                                  AB 1997
                                                                  Page  2


          provide immediate access to enrollment.  However, the FAFSA has  
          changed: eligibility results are electronic and immediately  
          transmitted, and the FAFSA has been simplified, collecting  
          virtually the same information as the Short Form.  

          The discretion to use the Short Form provided in this bill  
          mirrors the discretion provided under federal law, which allows  
          forms other than the FAFSA to be used on a case-by-case basis  
          with justification and documentation where appropriate.  The  
          campus financial aid administrator would have the discretion to  
          use the Short Form if it is in the student's best interests, so  
          long as the financial aid officer documents and reports the  
          exception to the CCC Chancellor's Office.


           Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960
                                                                FN: 0004174