BILL NUMBER: AB 1501	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 21, 2012
	AMENDED IN ASSEMBLY  MAY 25, 2012
	AMENDED IN ASSEMBLY  FEBRUARY 9, 2012

INTRODUCED BY   Assembly Member John A. Pérez
   (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,  Fletcher,  Fuentes, Furutani, Fong, Galgiani,
Gatto, Gordon, Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso,
Huffman, Lara, Bonnie Lowenthal, Ma, Mitchell, Monning, Pan, Perea,
V. Manuel Pérez, Portantino, Skinner, Solorio, Swanson, Torres,
Wieckowski, Williams, and Yamada)
   (Coauthors: Senators Alquist, Corbett,  De Leon, 
 De León,  DeSaulnier, Evans, Hancock, Lowenthal, Pavley,
Price, and Yee)

                        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 student financial aid, making an appropriation therefor,
and declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1501, as amended, John A. Pérez. 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  publicly funded student 
financial aid  , as defined,  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   need-based grant  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  as follows:
first, $150,000,000 to the Chancellor of the California Community
Colleges for allocation to community   college districts
based on calculations of full-time equivalent students, to be
expended, after consultation with student representatives as
specified, for the provision of scholarship grants to students to
reduce the impact of enrollment fees or to help cover the cost of
textbooks and other educational expenses; and  an amount
determined by the Student Aid Commission to be sufficient, when
combined with  publicly funded student  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   ,   to  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  hold these
funds in a reserve for fiscal uncertainties and to  expend
 these remaining funds for purposes of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program 
 the funds held in reserve under this provision for adjustments
the commission deems necessary in administering the  
programs under its jurisdiction  . 
   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.
   Vote: 2/3. Appropriation: yes. Fiscal committee: 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.  For
purposes of this article, "commission" means 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  publicly funded
student  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   article
 , "publicly funded student financial aid"  includes
federal, institutional, and state student financial aid programs
  shall be defined as the federal Pell Grant Program,
the Cal   Grant Program, and institutional need-based grants
 .
   (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   a
scholarship  under this article, the University of California
and the California State University shall maintain their respective
institutional  student financial aid  need-based
grant  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   need-based grant 
programs and federal grants.
   (b) That the  amount of the student financial aid
  scholarship  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. 
   (d) That the costs of Middle Class Scholarship Program do not
exceed the funding available in the Middle Class Scholarship Fund and
that a prudent fund balance exists to protect against fiscal
uncertainties. 
   70023.   (a)    The following amount is hereby
appropriated:
    (a)     (1) 
   Notwithstanding   (1) 
   Each academic year, from the revenues in the Middle
Class Scholarship Fund established by   Section 70201, there
shall first be set aside one hundred fifty million dollars
($150,000,000), transferred to the Chancellor of the California
Community Colleges for allocation, for that academic year, to
community college districts based on calculations of full-time
equivalent students. Funds annually allocated to a community college
district pursuant to this paragraph shall be expended, after the
district has consulted with the recognized campus and district
student representatives in the determination of how the funds are to
be expended, for the provision of grants to students to reduce the
impact of enrollment fees, or to help cover the cost of textbooks and
other educational expenses. It is the intent of the Legislature that
the funds provided under this paragraph meet the specific needs of
students at the local district level. 
   (2)     Notwithstanding  Section 13340
of the Government Code,  ea   ch academic year,  an
amount determined by the  Student Aid Commission 
 commission  to be sufficient, when combined with 
financial aid   Cal Grants, Pell Grants, and
institutional need-based grants  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   70201  to the 
Student Aid Commission   commission  for allocation
to the Regents of the University of 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  
commission  with any information that is necessary for the
determination of this amount. 
   (2) 
    (b)  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  pursuant to paragraphs (1) and (2) of subdivision
(a)  , 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))   commission shall hold
these funds in reserve for fiscal uncertainties. The commission may
expend the funds held in reserve under this subdivision for
adjustments the commission deems necessary in administering the
programs under its jurisdiction in the current academic year or in
subsequent academic years  . 
   (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, 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.