BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 760|
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THIRD READING
Bill No: SB 760
Author: Alquist (D)
Amended: 5/25/11
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 5/4/11
AYES: Lowenthal, Alquist, Blakeslee, Hancock, Huff, Liu,
Price, Simitian, Vargas
NO VOTE RECORDED: Runner, Vacancy
SENATE APPROPRIATIONS COMMITTEE : 6-1, 5/23/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Runner
NO VOTE RECORDED: Walters, Emmerson
SUBJECT : Postsecondary education: the Cal Grant Program
SOURCE : California Student Aid Commission
DIGEST : This bill clarifies and defines the annual
reporting requirements, required under SB 70 (Senate Budget
and Fiscal Review Committee), Chapter 7, Statutes of 2011,
for all institutions that voluntarily choose to participate
in the Cal Grant program.
ANALYSIS : Existing law specifies, under SB 70, as a
condition for its voluntary participation in the Cal Grant
program, each Cal Grant participating institution shall
provide the California Student Aid Commission (CSAC) with
enrollment, persistence, and graduation data for all
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students and job placement rate and salary data and wage
information for each program that is either (1) designed or
advertised to lead to a particular type of job; or (2)
advertised or promoted with any claim regarding job
placement.
Existing law authorizes the Cal Grant Program, administered
by the CSAC, to provide grants to financially needy
students in order for them to attend college. These grants
are awarded in order to assist with the costs of a program
of study that result in the award of an associate or
baccalaureate degree or certificate requiring at least 24
semester units or the equivalent, or results in eligibility
for transfer from a community college to a baccalaureate
degree program.
Existing law provides that a "qualifying institution" for
purposes of participation in the Cal Grant Program, must be
one of the following:
1. A California private or independent postsecondary
educational institution that participates in the Pell
Grant program and at least two of the following:
A. Federal Work-Study.
B. Perkins Loan Program.
C. Supplemental Educational Opportunity Grant
Program.
2. A nonprofit institution headquartered and operating in
California that:
A. Certifies to the CSAC that 10 percent of its
operating budget, as demonstrated in an audited
financial statement, is expended for institutionally
funded student financial aid in the form of grants.
B. Demonstrates the capacity to administer the funds.
C. Is accredited by the Western Association of
Schools and Colleges, or is regionally accredited and
was deemed qualified to participate in the Cal Grant
Program by the CSAC for the 2000-01 academic year.
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D. Meets any other state-required criteria adopted by
regulation by the CSAC in consultation with the
Department of Finance.
3. Any California public postsecondary educational
institution.
This bill:
1. Clarifies the enrollment, persistence and graduation
data, required as a condition for voluntary
participation in the Cal Grant program (included in SB
70), from each participating institution for each term
of the academic year immediately prior, for all students
in its Cal Grant eligible undergraduate programs at each
California campus identified under the same six-digit
federal Office of Postsecondary Education identification
number:
A. Enrollment data, including enrollment status, and
whether the student is a first-time student,
continuing or returning student, transfer student, or
other student.
B. Persistence data, including a student's education
level.
C. Graduation data, including whether a degree or
certificate was conferred and the on-time completion
rate by cohort based on date of initial enrollment
and by degree and certificate, for each California
campus identified under the same six-digit federal
Office of Postsecondary Education identification
number, and in the aggregate for all the
institution's campuses and locations.
D. The job placement rate and salary and wage
information for each program that is either of the
following:
(1) Designed or advertised to lead to a
particular type of job.
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(2) Advertised or promoted with any claim
regarding job placement. Job placement rate and
salary and wage information required by this
subdivision shall be reported for each program for
each California campus identified under the same
six-digit federal Office of Postsecondary
Education identification number, and in the
aggregate for all the institution's campuses and
locations. The job placement rate and salary and
wage information shall be reported in the
aggregate for Cal Grant recipients by program.
2. Authorizes the CSAC to use data already available from
federal agencies and other state agencies in lieu of
requiring institutions to report, if the CSAC determines
the data are sufficient for meeting the requirements
under #1 above.
3. Defines a "California campus" as each California campus,
additional location, site, or branch identified on the
institutional participation agreement of the qualifying
institution.
4. Defines "normal time" as the amount of time necessary
for a student to complete all requirements for a degree
or certificate according to the institution's catalog.
5. Defines "on-time completion rate" as all of the
following:
A. The number of students attending a California
campus who completed the program during the most
recently completed award year.
B. The number of students who completed the program
within the normal time, as defined, regardless of
whether students transferred into the program or
changed programs at the institution.
C. Dividing the number of students attending a
California campus that completed the program within
normal time by the total number of students who
completed the program and multiplying the result by
100.
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D. Requires institutions to calculate the on-time
completion rate for each California campus identified
under the same six-digit federal Office of
Postsecondary Education identification number.
6. Defines "placement rate" as the placement rate for
students attending a California campus as determined
under a methodology developed by the National Center for
Education Statistics (NCES), when the rate is available.
If an NCES placement rate methodology has not been
specified then the methodology shall be the methodology
specified by the institution's accrediting agency, as
specified. If an accrediting agency does not specify a
methodology for the calculation of a placement rate,
then the CSAC shall specify the methodology.
Comments
Need for the Bill . SB 70 began the process of requiring
the reporting of enrollment, persistence, graduation, and
job placement data of institutions participating in the Cal
Grant program. This bill is intended to:
1. Clarify reporting requirements of SB 70;
2. Mitigate impact of the new data reporting requirements
(from SB 70) on Cal Grant participating institutions by
aligning data elements as much as possible with those
already required for federal Title IV financial aid
eligibility;
3. Ensure public access to data about each Cal Grant
participating school's program performance; and
4. Provide the Legislature with necessary data as it
considers future policy changes for the Cal Grant
program.
Federal regulations generally take effect July 1, 2012 .
Regulations for institutional participation in various
federal financial aid programs, including the federal Pell
Grant program, have been promulgated and will take effect
July 1, 2012. Many of the definitions described in SB 760
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are taken from the federal registry of regulations and are
intended to align California's Cal Grant program with
federal definitions.
Proposed budget cuts to Cal Grant program . As part of the
2011 Budget, the Legislature recently approved $124 million
in cuts to the Cal Grant program by requiring the CSAC to
annually verify income and asset levels of renewals and by
making institutions with specified student default rates
ineligible to participate in Cal Grant programs. And also
specifies, as a condition for its voluntary participation
in the Cal Grant program, each Cal Grant participating
institution shall provide the CSAC with specified
information.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
Delay reporting ---cost
pressure*--- General
requirements
Increased reporting potentially significant
ongoing cost General
pressure; potentially significant
savings
* Ongoing cost pressure created by SB 70 is delayed to
2012-13
SUPPORT : (Verified 5/24/11)
California Student Aid Commission (source)
CPM:mw 5/25/11 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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