BILL NUMBER: AB 1501 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 24, 2012
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 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 60% 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 in
accordance with prescribed calculations .
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 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 credit
, 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 60% 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, to be allocated to the
Regents of the University of California and the Trustees of the
California State University for implementation of this bill
; and $100,000,000 each to the University of California and the
California State University for maintaining access to those segments
in the 2012-13 academic year .
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 the
funds held in reserve under this provision for adjustments the
commission deems necessary in administering the programs under its
jurisdiction . The bill would authorize the Student
Aid Commission to determine if sufficient funding is available for
purposes of the bill in the 2012-13 academic year and subsequent
academic years, and would further authorize the commission to reduce
scholarships proportionately if it determines that sufficient funding
is not available.
(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 60 percent 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 article, "publicly funded student financial aid"
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) a percentage, not to exceed 100 percent,
that is equal to 10 percent multiplied by a number equal to the
amount by which the student's household annual household income
exceeds one hundred fifty thousand dollars ($150,000),
divided by the product of one thousand dollars ($1,000) multiplied by
the number of students in that household receiving a scholarship
under this article during that academic year .
(b) In order for students enrolled in their respective segments to
remain eligible to receive a scholarship under this article, the
University of California and the California State University shall
maintain their respective institutional 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 need-based grant programs and federal grants.
(b) That the 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:
(1) Each academic year, from the revenues in the Middle Class
Scholarship Fund established by Section 70201
70025 , 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 credit weighted by a
measure of participants in the enrollment fee waiver program of the
Board of Governors of the California Community Colleges established
pursuant to Section 76300 . 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. The
Board of Governors of the California Community Colleges may establish
minimum criteria and standards for community colleges to award
grants under this paragraph, in consultation with the appropriate
statewide student association representatives, to ensure that the
intent of the Legislature is met.
(2) Notwithstanding Section 13340 of the Government Code, each
academic year, an amount determined by the commission to be
sufficient, when combined with 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
60 percent 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 70201
70025 to the 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 commission with any information that is necessary for the
determination of this amount.
(3) For the 2012-13 academic year, one hundred million dollars
($100,000,000) to the University of California for the purpose of
maintaining access to the university.
(4) For the 2012-13 academic year, one hundred million dollars
($100,000,000) to the California State University for the purpose of
maintaining access to the university.
(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 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.
(c) (1) For the 2012-13 academic year, the commission shall
determine if five hundred sixty million dollars ($560,000,000) is
sufficient to cover the costs of the scholarships as defined in
paragraph (2) of subdivision (a). If five hundred sixty million
dollars ($560,000,000) is not sufficient for this purpose, then the
scholarships shall be reduced proportionately by an equal percentage
for all recipients of scholarships under this article.
(2) (A) Beginning with the Governor's Budget proposal for the
2013-14 fiscal year, and in the Governor's Budget for each fiscal
year thereafter, the Department of Finance shall include a fund
condition statement for the Middle Class Scholarship Fund for the
past, current, and proposed fiscal years prepared in accordance with
existing law.
(B) The commission shall determine, from the information provided
pursuant to this subdivision, if sufficient funds will be available
to cover the costs of the allocation to the California Community
Colleges and the scholarships pursuant to paragraphs (1) and (2),
respectively, of subdivision (a) for the upcoming fiscal year. If the
funds are not sufficient, then the scholarships shall be reduced
proportionately by an equal percentage for all recipients of
scholarships under this article.
(C) The purpose of this subdivision is to ensure that the Middle
Class Scholarship Program costs do not exceed funding available in
the Middle Class Scholarship Fund.
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.