AB 1501 Assembly Bill

BILL NUMBER: AB 1501	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  FEBRUARY 9, 2012

INTRODUCED BY    Committee on Budget   (
  Blumenfield (Chair), Alejo, Bonilla, Brownley,
Buchanan, Butler, Cedillo, Chesbro, Dickinson, Feuer, Gordon,
Huffman, Mitchell, Monning, and Swanson   )
  Assembly Member   John  A. Pщrez 
    (   Coauthors:   Assembly Members 
 Alejo,   Allen,   Ammiano,   Atkins,
  Beall,   Block,   Blumenfield, 
 Bonilla,   Bradford,   Brownley,  
Buchanan,   Butler,   Charles Calderon,  
Campos,   Carter,   Cedillo,   Chesbro,
  Davis,   Dickinson,   Eng,  
Feuer,   Fuentes,   Furutani,   Galgiani,
  Gatto,   Gordon,  Hall,  
Hayashi,   Roger Hernсndez,   Hill,  
Huber,   Hueso,   Huffman,   Lara, 
 Bonnie Lowenthal,   Ma,   Mitchell,  
Monning,   Pan,   Perea,   V. Manuel
Pщrez,   Skinner,   Solorio,   Torres,
  Wieckowski,   Williams,   and Yamada
  ) 

                        JANUARY 10, 2012

   An act  to add Article 22 (commencing with Section 70020) to
Chapter 2 of Part 42 of Division 5 of Title 3   of the
Education Code,  relating to  the Budget Act of 2012.
  student financial aid, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1501, as amended,  Committee on Budget  
John  A. Pщrez  .  Budget Act of 2012.  
Student financial aid: Middle Class Scholarship Program.  
   (1) Existing law provides for a public postsecondary education
system in this state. This system consists of the University of
California, the California State University, and the California
Community Colleges. Existing law authorizes these institutions to
require that mandatory systemwide fees, among other fees, be paid by
students at these institutions.  
   This bill would establish the Middle Class Scholarship Program
under the administration of the Student Aid Commission. The bill
would provide that, commencing with the 2012-13 academic year,
undergraduate students enrolled at the University of California or
the California State University would receive a scholarship award
that, combined with other financial aid received by an eligible
student, would be at least 2/3 of the amount charged that student for
mandatory systemwide fees in that academic year if the student meets
the following conditions: annual household income does not exceed
$150,000; is a resident of this state or exempt from paying
nonresident tuition; files specified financial aid forms; and makes
timely application or applications for publicly funded student
financial aid, as defined, for which he or she is eligible. 

   The bill would provide that a student whose annual household
income exceeds $150,000, but does not exceed $160,000, and who
otherwise meets the requirements, would receive a scholarship that is
reduced by 10% for each $1,000 by which his or her annual household
income exceeds $150,000.  
   The bill would require, in order for students enrolled in their
respective segments to remain eligible to receive financial aid under
the bill, the University of California and the California State
University to maintain their respective institutional student
financial aid programs at a level that, at a minimum, is equivalent
to the level maintained during the 2011-12 academic year.  
   The bill would continuously appropriate from the Middle Class
Scholarship Fund to the Student Aid Commission an amount determined
by the Student Aid Commission to be sufficient, when combined with
financial aid received by eligible students from other sources, to
cover the cost of at least 2/3 of the amount of mandatory systemwide
fees charged to resident students and students who are exempt from
nonresident tuition in the 2012-13 academic year and subsequent
academic years. These funds would be allocated to the Regents of the
University of California and the Trustees of California State
University for implementation of this bill.  
   The bill would authorize the Student Aid Commission, in the event
that, in any academic year, there are funds remaining in the Middle
Class Scholarship Fund after funds have been allocated to all
eligible students of the respective universities, to expend these
remaining funds for purposes of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.  
   The bill would appropriate $150,000,000 from the Middle Class
Scholarship Fund to the Chancellor of the California Community
Colleges for allocation to community college districts based on
calculations of full-time equivalent students. The funds allocated to
a community college district pursuant to this provision would be
expended for the provision of scholarship grants to students to
reduce the impact of enrollment fees on, or to help cover the cost of
textbooks and other educational expenses.  
   (2) This bill would become operative only if AB 1500 of the
2011-12 Regular Session is chaptered and establishes a Middle Class
Scholarship Fund.  
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2012. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Article 22 (commencing with Section
70020) is added to Chapter 2 of Part 42 of   Division 5 of
Title 3 of the   Education Code   , to read: 


      Article 22.  Middle Class Scholarship Program


   70020.  The Middle Class Scholarship Program is hereby established
under the administration of the Student Aid Commission.
   70021.  (a) (1) Commencing with the 2012-13 academic year, an
undergraduate student enrolled in the California State University or
the University of California who meets the requirements of paragraph
(2) is eligible for a grant award as described in paragraph (2).
   (2) Each academic year, a student shall receive a scholarship
grant in an amount that, combined with other financial aid received
by an eligible student, is at least two-thirds of the amount charged
that student in that academic year for mandatory systemwide fees, if
all of the following requirements are met:
   (A) The student's annual household income does not exceed one
hundred fifty thousand dollars ($150,000), except as provided in
paragraph (3). For purposes of this article, annual household income
shall be calculated in a manner that is consistent with the
requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos
Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and
Section 69506.
   (B) The student is either a resident of the state or is exempt
from paying nonresident tuition.
   (C) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. If the student is not able
to complete a FAFSA application, the student submits an application
determined by the university he or she attends to be equivalent to
the FAFSA application for purposes of this article.
   (D) The student makes a timely application or applications for
publicly funded student financial aid from programs for which he or
she is eligible, other than the program established by this article.
For purposes of this subparagraph, "publicly funded student financial
aid" includes federal, institutional, and state student financial
aid programs.
   (3) The scholarship award under this article of a student whose
annual household income is greater than one hundred fifty thousand
dollars ($150,000), but does not exceed one hundred sixty thousand
dollars ($160,000), and who otherwise meets the requirements of
paragraph (2), shall be reduced by 10 percent for each one thousand
dollars ($1,000) that the student's annual household income exceeds
one hundred fifty thousand dollars ($150,000).
   (b) In order for students enrolled in their respective segments to
remain eligible to receive financial aid under this article, the
University of California and the California State University shall
maintain their respective institutional student financial aid
programs at a level that, at a minimum, is equivalent to the level
maintained during the 2011-12 academic year.
   (c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1. The California
Community Colleges shall report on the implementation of this
article, including, but not necessarily limited to, the allocation
and use of funds by community college districts, as part of the
annual report made pursuant to paragraph (2) of subdivision (b) of
Section 70901.
   70022.  It is the intent of the Legislature that all of the
following occur:
   (a) The program created pursuant to this article shall augment,
and not replace, other state-supported financial aid and
institutional aid programs and federal grants.
   (b) That the amount of the student financial aid provided to
students under this article be increased to accommodate increases in
the cost of mandatory systemwide fees charged to students of the
University of California and the California State University,
respectively, that may occur during and after the 2011-12 academic
year.
   (c) That the University of California and the California State
University do not raise mandatory systemwide fees that would decrease
the value of a scholarship award under this article.
   70023.  The following amount is hereby appropriated:
   (a) (1) Notwithstanding Section 13340 of the Government Code, an
amount determined by the Student Aid Commission to be sufficient,
when combined with financial aid received by eligible students from
other sources, to cover the cost of at least two-thirds of the amount
of mandatory systemwide fees charged to resident students and
students who are exempt from nonresident tuition in the 2012-13
academic year and subsequent academic years is hereby continuously
appropriated from the Middle Class Scholarship Fund established by
Section 70026 to the Student Aid Commission for allocation to the
Regents of the University of the California and the Trustees of the
California State University for implementation of this article. The
University of California and the California State University shall
provide the Student Aid Commission with any information that is
necessary for the determination of this amount.
   (2) In the event that, in any academic year, there are funds
remaining in the Middle Class Scholarship Fund after funds have been
allocated to all eligible students of the respective universities,
the Student Aid Commission is authorized to expend these remaining
funds for purposes of the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program (Chapter 1.7 (commencing with Section 69430)).
   (b) One hundred fifty million dollars ($150,000,000) from the
Middle Class Scholarship Fund established by Section 70026 to the
Chancellor of the California Community Colleges for allocation to
community college districts based on calculations of full-time
equivalent students. Funds allocated to a community college district
pursuant to this subdivision shall be expended for the provision of
grants to students to reduce the impact of enrollment fees on, or to
help cover the cost of textbooks and other educational expenses.

   SEC. 2.    This act shall become operative only if
Assembly Bill 1500 of the 2011-12 Regular Session is chaptered and
establishes a Middle Class Scholarship Fund. 
   SEC. 3.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to provide urgently needed financial aid to California
public postsecondary students in time for the beginning of the
2012-13 academic year, it is necessary that this act take effect
immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2012.

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