Amended in Senate July 2, 2014

Amended in Senate June 19, 2014

Amended in Senate August 28, 2013

Amended in Senate August 27, 2013

Amended in Senate July 3, 2013

Amended in Senate June 20, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 640


Introduced by Assembly Member Hall

begin insert

(Coauthor: Senator Galgiani)

end insert

February 20, 2013


An act to amend Section 69432.7 of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 640, as amended, Hall. Cal Grant Program: renewal awards.

The Cal Grant Program establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

Existing law requires the commission to certify by October 1 of each year a qualifying institution’s latest 3-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. Existing law provides that, for purposes of the 2012-13 academic year, and every academic year thereafter, an otherwise qualifying institution with a 3-year cohort default rate that is equal to or greater than 15.5% is ineligible for initial and renewal Cal Grant awards at the institution. Existing law provides that an otherwise qualifying institution is ineligible for an initial or renewal Cal Grant award at the institution if the institution has a graduation rate of 30% or less for students taking 150% or less of the expected time to complete degree requirements, as specified, with certain exceptions.

This bill would require the commission to establish an appeal process for an otherwise qualifying institution that fails to satisfy the 3-year cohort default rate and graduation rate requirements, and would make nonsubstantive and conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 69432.7 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

69432.7.  

As used in this chapter, the following terms have the
4following meanings:

5(a) An “academic year” is July 1 to June 30, inclusive. The
6starting date of a session shall determine the academic year in
7which it is included.

8(b) “Access costs” means living expenses and expenses for
9transportation, supplies, and books.

10(c) “Award year” means one academic year, or the equivalent,
11of attendance at a qualifying institution.

12(d) “College grade point average” and “community college
13grade point average” mean a grade point average calculated on the
14basis of all college work completed, except for nontransferable
15units and courses not counted in the computation for admission to
16a California public institution of higher education that grants a
17baccalaureate degree.

18(e) “Commission” means the Student Aid Commission.

19(f) “Enrollment status” means part- or full-time status.

P3    1(1) “Part time,” for purposes of Cal Grant eligibility, means 6
2to 11 semester units, inclusive, or the equivalent.

3(2) “Full time,” for purposes of Cal Grant eligibility, means 12
4or more semester units or the equivalent.

5(g) “Expected family contribution,” with respect to an applicant,
6shall be determined using the federal methodology pursuant to
7subdivision (a) of Section 69506 (as established by Title IV of the
8 federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
91070 et seq.)) and applicable rules and regulations adopted by the
10commission.

11(h) “High school grade point average” means a grade point
12average calculated on a 4.0 scale, using all academic coursework,
13for the sophomore year, the summer following the sophomore
14year, the junior year, and the summer following the junior year,
15excluding physical education,begin delete reserve officer training corpsend deletebegin insert Reserve
16Officer Training Corpsend insert
(ROTC), and remedial courses, and
17computed pursuant to regulations of the commission. However,
18for high school graduates who apply after their senior year, “high
19school grade point average” includes senior year coursework.

20(i) “Instructional program of not less than one academic year”
21means a program of study that results in the award of an associate
22or baccalaureate degree or certificate requiring at least 24 semester
23units or the equivalent, or that results in eligibility for transfer from
24a community college to a baccalaureate degree program.

25(j) “Instructional program of not less than two academic years”
26means a program of study that results in the award of an associate
27or baccalaureate degree requiring at least 48 semester units or the
28equivalent, or that results in eligibility for transfer from a
29community college to a baccalaureate degree program.

30(k) “Maximum household income and asset levels” means the
31applicable household income and household asset levels for
32participants, including new applicants and renewing recipients, in
33the Cal Grant Program, as defined and adopted in regulations by
34the commission for the 2001-02 academic year, which shall be
35set pursuant to the following income and asset ceiling amounts:


36

 

CAL GRANT PROGRAM INCOME CEILINGS

P3   381718P3   20

 

 

Cal Grant A,
C, and T

Cal Grant B

Dependent and Independent students with dependents*

Family Size

  Six or more

$74,100  

$40,700  

  Five

$68,700  

$37,700  

  Four

$64,100  

$33,700  

  Three

$59,000  

$30,300  

  Two

$57,600  

$26,900  


Independent


  Single, no dependents

$23,500  

$23,500  

  Married

$26,900  

$26,900  

1718P3   20

 

15*Applies to independent students with dependents other than a
16spouse.

 

CAL GRANT PROGRAM ASSET CEILINGS

P3   20

 

 

Cal Grant A,
C, and T

Cal Grant B


Dependent**   


$49,600  


$49,600  

Independent   

$23,600  

$23,600  

 

26**Applies to independent students with dependents other than a
27spouse.

28

29The commission shall annually adjust the maximum household
30income and asset levels based on the percentage change in the cost
31of living within the meaning of paragraph (1) of subdivision (e)
32of Section 8 of Article XIII B of the California Constitution. The
33maximum household income and asset levels applicable to a
34renewing recipient shall be the greater of the adjusted maximum
35household income and asset levels or the maximum household
36income and asset levels at the time of the renewing recipient’s
37initial Cal Grant award. For a recipient who was initially awarded
38a Cal Grant for an academic year before the 2011-12 academic
39year, the maximum household income and asset levels shall be the
P5    1greater of the adjusted maximum household income and asset
2levels or the 2010-11 academic year maximum household income
3and asset levels. An applicant or renewal recipient who qualifies
4to be considered under the simplified needs test established by
5federal law for student assistance shall be presumed to meet the
6asset level test under this section. Prior to disbursing any Cal Grant
7funds, a qualifying institution shall be obligated, under the terms
8of its institutional participation agreement with the commission,
9to resolve any conflicts that may exist in the data the institution
10possesses relating to that individual.

11(l) (1) “Qualifying institution” means an institution that
12complies with paragraphs (2) and (3) and is any of the following:

13(A) A California private or independent postsecondary
14educational institution that participates in thebegin insert federalend insert Pell Grant
15Program and in at least two of the following federal campus-based
16student aid programs:

17(i) Federal Work-Studybegin insert Programend insert.

18(ii) begin insertFederal end insertPerkins Loan Program.

19(iii) begin insertFederal end insertSupplemental Educational Opportunity Grant
20Program.

21(B) A nonprofit institution headquartered and operating in
22California that certifies to the commission that 10 percent of the
23institution’s operating budget, as demonstrated in an audited
24financial statement, is expended for purposes of institutionally
25funded student financial aid in the form of grants, that demonstrates
26to the commission that it has the administrative capacity to
27administer the funds, that is accredited by the Western Association
28of Schools and Colleges, and that meets any other state-required
29criteria adopted by regulation by the commission in consultation
30with the Department of Finance. A regionally accredited institution
31that was deemed qualified by the commission to participate in the
32Cal Grant Program for the 2000-01 academic year shall retain its
33eligibility as long as it maintains its existing accreditation status.

34(C) A California public postsecondary educational institution.

35(2) (A) The institution shall provide information on where to
36access California license examination passage rates for the most
37recent available year from graduates of its undergraduate programs
38leading to employment for which passage of a California licensing
39examination is required, if that data is electronically available
40through the Internet Web site of a California licensing or regulatory
P6    1agency. For purposes of this paragraph, “provide” may exclusively
2include placement of an Internet Web site address labeled as an
3access point for the data on the passage rates of recent program
4graduates on the Internet Web site where enrollment information
5is also located, on an Internet Web site that provides centralized
6admissions information for postsecondary educational systems
7with multiple campuses, or on applications for enrollment or other
8program information distributed to prospective students.

9(B) The institution shall be responsible for certifying to the
10commission compliance with the requirements of subparagraph
11(A).

12(3) (A) The commission shall certify by October 1 of each year
13the institution’s latest three-year cohort default rate and graduation
14rate as most recently reported by the United States Department of
15Education.

16(B) For purposes of the 2011-12 academic year, an otherwise
17qualifying institution with a three-year cohort default rate reported
18by the United States Department of Education that is equal to or
19greater than 24.6 percent shall be ineligible for initial and renewal
20Cal Grant awards at thebegin delete institution, except as provided in
21subparagraph (F).end delete
begin insert institution.end insert

22(C) For purposes of the 2012-13 academic year, and every
23academic year thereafter, an otherwise qualifying institution with
24a three-year cohort default rate that is equal to or greater than 15.5
25percent, as certified by the commission on October 1, 2011, and
26every year thereafter, shall be ineligible for initial and renewal Cal
27Grant awards at thebegin delete institution, except as provided in subparagraph
28(F).end delete
begin insert institution.end insert

29(D) (i) An otherwise qualifying institution that becomes
30ineligible under this paragraph for initial and renewal Cal Grant
31awards shall regain its eligibility for the academic year for which
32it satisfies the requirements established in subparagraph (B), (C),
33orbegin delete (G),end deletebegin insert (F),end insert as applicable.

34(ii) If the United States Department of Education corrects or
35revises an institution’s three-year cohort default rate or graduation
36rate that originally failed to satisfy the requirements established
37in subparagraph (B), (C), orbegin delete (G),end deletebegin insert (F),end insert as applicable, and the
38correction or revision results in the institution’s three-year cohort
39default rate or graduation rate satisfying those requirements, that
40institution shall immediately regain its eligibility for the academic
P7    1year to which the corrected or revised three-year cohort default
2rate or graduation rate would have been applied.

3(E) An otherwise qualifying institution for which no three-year
4cohort default rate or graduation rate has been reported by the
5United States Department of Education shall be provisionally
6eligible to participate in the Cal Grant Program until a three-year
7cohort default rate or graduation rate has been reported for the
8institution by the United States Department of Education.

begin delete

9(F) (i) An institution that is ineligible for initial and renewal
10Cal Grant awards at the institution under subparagraph (B), (C),
11or (G) shall be eligible for renewal Cal Grant awards for recipients
12who were enrolled in the ineligible institution during the academic
13year before the academic year for which the institution is ineligible
14and who choose to renew their Cal Grant awards to attend the
15ineligible institution. Cal Grant awards subject to this subparagraph
16shall be reduced as follows:

end delete
begin delete

17(I) The maximum Cal Grant A and B awards specified in the
18annual Budget Act shall be reduced by 20 percent.

end delete
begin delete

19(II) The reductions specified in this subparagraph shall not
20impact access costs as specified in subdivision (b) of Section
2169435.

end delete
begin delete

22(ii) This subparagraph shall become inoperative on July 1, 2013.

end delete
begin delete

23(G)

end delete

24begin insert(F)end insert For purposes of the 2012-13 academic year, and every
25academic year thereafter, an otherwise qualifying institution with
26a graduation rate of 30 percent or less for students taking 150
27percent or less of the expected time to complete degree
28requirements, as reported by the United States Department of
29Education and as certified by the commission pursuant to
30subparagraph (A), shall be ineligible for initial and renewal Cal
31Grant awards at the institution, except as provided for in
32begin delete subparagraphs (F) and (I).end deletebegin insert subparagraph (H).end insert

begin delete

33(H)

end delete

34begin insert(G)end insert Notwithstanding any other law, the requirements of this
35paragraph shall not apply to institutions with 40 percent or less of
36undergraduate students borrowing federal student loans, using
37information reported to the United States Department of Education
38for the academic year two years before the year in which the
39commission is certifying the three-year cohort default rate or
40graduation rate pursuant to subparagraph (A).

begin delete

P8    1(I)

end delete

2begin insert(H)end insert Notwithstanding subparagraphbegin delete (G),end deletebegin insert (F),end insert an otherwise
3qualifying institution with a three-year cohort default rate that is
4less than 15.5 percent and a graduation rate above 20 percent for
5students taking 150 percent or less of the expected time to complete
6degree requirements, as certified by the commission pursuant to
7subparagraph (A), shall be eligible for initial and renewal Cal Grant
8awards at the institution through the 2016-17 academic year.

begin delete

9(J)

end delete

10begin insert(I)end insert The commission shall do all of the following:

11(i) Notify initial Cal Grant recipients seeking to attend, or
12attending, an institution that is ineligible for initial and renewal
13Cal Grant awards under subparagraph (C) orbegin delete (G)end deletebegin insert (F)end insert that the
14institution is ineligible for initial Cal Grant awards for the academic
15year for which the student received an initial Cal Grant award.

16(ii) Notify renewal Cal Grant recipients attending an institution
17that is ineligible for initial and renewal Cal Grant awards at the
18institution under subparagraph (C) orbegin delete (G)end deletebegin insert (F)end insert that the student’s
19Cal Grant award will be reduced by 20 percent, or eliminated, as
20appropriate, if the student attends the ineligible institution in an
21academic year in which the institution is ineligible.

22(iii) Provide initial and renewal Cal Grant recipients seeking to
23attend, or attending, an institution that is ineligible for initial and
24renewal Cal Grant awards at the institution under subparagraph
25(C) orbegin delete (G)end deletebegin insert (F)end insert with a complete list of all California postsecondary
26educational institutions at which the student would be eligible to
27receive an unreduced Cal Grant award.

begin insert

28(iv) (I) Establish an appeal process for an otherwise qualifying
29institution that fails to satisfy the three-year cohort default rate
30and graduation requirements in subparagraphs (C) and (F),
31respectively.

end insert
begin insert

32(II) In assessing whether to grant an appeal, the commission
33may consider cohort size and the likelihood of an otherwise
34qualifying institution regaining eligibility in the academic year
35next following the institution’s loss of eligibility.

end insert
begin insert

36(III) It is the intent of the Legislature that the commission shall
37 define a specific cohort size or range of sizes that constitute a
38small cohort for the purposes of the appeals process.

end insert
begin delete

39(K)

end delete

P9    1begin insert(J)end insert By January 1, 2013, the Legislative Analyst shall submit to
2the Legislature a report on the implementation of this paragraph.
3The report shall be prepared in consultation with the commission,
4and shall include policy recommendations for appropriate measures
5of default risk and other direct or indirect measures of quality or
6effectiveness in educational institutions participating in the Cal
7Grant Program, and appropriate scores for those measures. It is
8the intent of the Legislature that appropriate policy and fiscal
9 committees review the requirements of this paragraph and consider
10changes thereto.

11(m) “Satisfactory academic progress” means those criteria
12required by applicable federal standards published in Title 34 of
13the Code of Federal Regulations. The commission may adopt
14regulations defining “satisfactory academic progress” in a manner
15that is consistent with those federal standards.

begin delete
16

SECTION 1.  

Section 69432.7 of the Education Code is
17amended to read:

18

69432.7.  

As used in this chapter, the following terms have the
19following meanings:

20(a) An “academic year” is July 1 to June 30, inclusive. The
21starting date of a session shall determine the academic year in
22which it is included.

23(b) “Access costs” means living expenses and expenses for
24transportation, supplies, and books.

25(c) “Award year” means one academic year, or the equivalent,
26of attendance at a qualifying institution.

27(d) “College grade point average” and “community college
28grade point average” mean a grade point average calculated on the
29basis of all college work completed, except for nontransferable
30units and courses not counted in the computation for admission to
31a California public institution of higher education that grants a
32baccalaureate degree.

33(e) “Commission” means the Student Aid Commission.

34(f) “Enrollment status” means part- or full-time status.

35(1) “Part time,” for purposes of Cal Grant eligibility, means 6
36to 11 semester units, inclusive, or the equivalent.

37(2) “Full time,” for purposes of Cal Grant eligibility, means 12
38or more semester units or the equivalent.

39(g) “Expected family contribution,” with respect to an applicant,
40shall be determined using the federal methodology pursuant to
P10   1subdivision (a) of Section 69506 (as established by Title IV of the
2 federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
31070 et seq.)) and applicable rules and regulations adopted by the
4commission.

5(h) “High school grade point average” means a grade point
6average calculated on a 4.0 scale, using all academic coursework,
7for the sophomore year, the summer following the sophomore
8year, the junior year, and the summer following the junior year,
9excluding physical education, reserve officer training corps
10(ROTC), and remedial courses, and computed pursuant to
11regulations of the commission. However, for high school graduates
12who apply after their senior year, “high school grade point average”
13includes senior year coursework.

14(i) “Instructional program of not less than one academic year”
15means a program of study that results in the award of an associate
16or baccalaureate degree or certificate requiring at least 24 semester
17units or the equivalent, or that results in eligibility for transfer from
18a community college to a baccalaureate degree program.

19(j) “Instructional program of not less than two academic years”
20means a program of study that results in the award of an associate
21or baccalaureate degree requiring at least 48 semester units or the
22equivalent, or that results in eligibility for transfer from a
23community college to a baccalaureate degree program.

24(k) “Maximum household income and asset levels” means the
25applicable household income and household asset levels for
26participants, including new applicants and renewing recipients, in
27the Cal Grant Program, as defined and adopted in regulations by
28the commission for the 2001-02 academic year, which shall be
29set pursuant to the following income and asset ceiling amounts:


30

 

CAL GRANT PROGRAM INCOME CEILINGS

P10  32P10   710P10  12

 

 

Cal Grant A,
C, and T

Cal Grant B

Dependent and Independent students with dependents*

Family Size

  Six or more

$74,100  

$40,700  

  Five

$68,700  

$37,700  

  Four

$64,100  

$33,700  

  Three

$59,000  

$30,300  

  Two

$57,600  

$26,900  


Independent


  Single, no dependents

$23,500  

$23,500  

  Married

$26,900  

$26,900  

10P10  12

 

8*Applies to independent students with dependents other than a
9spouse.

 

CAL GRANT PROGRAM ASSET CEILINGS

P10  12

 

 

Cal Grant A,
C, and T

Cal Grant B


Dependent**   


$49,600  


$49,600  

Independent   

$23,600  

$23,600  

 

19**Applies to independent students with dependents other than a
20spouse.
21

22The commission shall annually adjust the maximum household
23income and asset levels based on the percentage change in the cost
24of living within the meaning of paragraph (1) of subdivision (e)
25of Section 8 of Article XIII B of the California Constitution. The
26maximum household income and asset levels applicable to a
27renewing recipient shall be the greater of the adjusted maximum
28household income and asset levels or the maximum household
29income and asset levels at the time of the renewing recipient’s
30initial Cal Grant award. For a recipient who was initially awarded
31a Cal Grant for an academic year before the 2011-12 academic
32year, the maximum household income and asset levels shall be the
33greater of the adjusted maximum household income and asset
34levels or the 2010-11 academic year maximum household income
35and asset levels. An applicant or renewal recipient who qualifies
36to be considered under the simplified needs test established by
37federal law for student assistance shall be presumed to meet the
38asset level test under this section. Prior to disbursing any Cal Grant
39funds, a qualifying institution shall be obligated, under the terms
P12   1of its institutional participation agreement with the commission,
2to resolve any conflicts that may exist in the data the institution
3possesses relating to that individual.

4(l) (1) “Qualifying institution” means an institution that
5complies with paragraphs (2) and (3) and is any of the following:

6(A) A California private or independent postsecondary
7educational institution that participates in the federal Pell Grant
8Program and in at least two of the following federal campus-based
9student aid programs:

10(i) Federal Work-Study.

11(ii) Perkins Loan Program.

12(iii) Federal Supplemental Educational Opportunity Grant
13Program.

14(B) A nonprofit institution headquartered and operating in
15California that certifies to the commission that 10 percent of the
16institution’s operating budget, as demonstrated in an audited
17financial statement, is expended for purposes of institutionally
18funded student financial aid in the form of grants, that demonstrates
19to the commission that it has the administrative capacity to
20administer the funds, that is accredited by the Western Association
21of Schools and Colleges, and that meets any other state-required
22criteria adopted by regulation by the commission in consultation
23with the Department of Finance. A regionally accredited institution
24that was deemed qualified by the commission to participate in the
25Cal Grant Program for the 2000-01 academic year shall retain its
26eligibility as long as it maintains its existing accreditation status.

27(C) A California public postsecondary educational institution.

28(2) (A) The institution shall provide information on where to
29access California license examination passage rates for the most
30recent available year from graduates of its undergraduate programs
31leading to employment for which passage of a California licensing
32examination is required, if that data is electronically available
33through the Internet Web site of a California licensing or regulatory
34agency. For purposes of this paragraph, “provide” may exclusively
35include placement of an Internet Web site address labeled as an
36access point for the data on the passage rates of recent program
37graduates on the Internet Web site where enrollment information
38is also located, on an Internet Web site that provides centralized
39admissions information for postsecondary educational systems
P13   1with multiple campuses, or on applications for enrollment or other
2program information distributed to prospective students.

3(B) The institution shall be responsible for certifying to the
4commission compliance with the requirements of subparagraph
5(A).

6(3) (A) The commission shall certify by October 1 of each year
7the institution’s latest three-year cohort default rate and graduation
8rate as most recently reported by the United States Department of
9Education.

10(B) For purposes of the 2011-12 academic year, an otherwise
11qualifying institution with a three-year cohort default rate reported
12by the United States Department of Education that is equal to or
13greater than 24.6 percent shall be ineligible for initial and renewal
14Cal Grant awards at the institution.

15(C) For purposes of the 2012-13 academic year, and every
16academic year thereafter, an otherwise qualifying institution with
17a three-year cohort default rate that is equal to or greater than 15.5
18percent, as certified by the commission on October 1, 2011, and
19every year thereafter, shall be ineligible for initial and renewal Cal
20Grant awards at the institution.

21(D) (i) An otherwise qualifying institution that becomes
22ineligible under this paragraph for initial and renewal Cal Grant
23awards shall regain its eligibility for the academic year for which
24it satisfies the requirements established in subparagraph (B), (C),
25or (F), as applicable.

26(ii) If the United States Department of Education corrects or
27revises an institution’s three-year cohort default rate or graduation
28rate that originally failed to satisfy the requirements established
29in subparagraph (B), (C), or (F), as applicable, and the correction
30or revision results in the institution’s three-year cohort default rate
31or graduation rate satisfying those requirements, that institution
32shall immediately regain its eligibility for the academic year to
33which the corrected or revised three-year cohort default rate or
34graduation rate would have been applied.

35(E) An otherwise qualifying institution for which no three-year
36cohort default rate or graduation rate has been reported by the
37United States Department of Education shall be provisionally
38eligible to participate in the Cal Grant Program until a three-year
39cohort default rate or graduation rate has been reported for the
40institution by the United States Department of Education.

P14   1(F) For purposes of the 2012-13 academic year, and every
2academic year thereafter, an otherwise qualifying institution with
3a graduation rate of 30 percent or less for students taking 150
4percent or less of the expected time to complete degree
5requirements, as reported by the United States Department of
6Education and as certified by the commission pursuant to
7subparagraph (A), shall be ineligible for initial and renewal Cal
8Grant awards at the institution, except as provided for in
9subparagraph (H).

10(G) Notwithstanding any other law, the requirements of this
11paragraph shall not apply to institutions with 40 percent or less of
12undergraduate students borrowing federal student loans, using
13information reported to the United States Department of Education
14for the academic year two years before the year in which the
15commission is certifying the three-year cohort default rate or
16graduation rate pursuant to subparagraph (A).

17(H) Notwithstanding subparagraph (F), an otherwise qualifying
18institution with a three-year cohort default rate that is less than 10
19percent and a graduation rate above 20 percent for students taking
20150 percent or less of the expected time to complete degree
21requirements, as certified by the commission pursuant to
22subparagraph (A), shall remain eligible for initial and renewal Cal
23Grant awards at the institution through the 2016-17 academic year.

24(I) The commission shall do all of the following:

25(i) Notify initial Cal Grant recipients seeking to attend, or
26attending, an institution that is ineligible for initial and renewal
27Cal Grant awards under subparagraph (C) or (F) that the institution
28is ineligible for initial Cal Grant awards for the academic year for
29which the student received an initial Cal Grant award.

30(ii) Notify renewal Cal Grant recipients attending an institution
31that is ineligible for initial and renewal Cal Grant awards at the
32institution under subparagraph (C) or (F) that the student’s Cal
33Grant award will be reduced by 20 percent, or eliminated, as
34appropriate, if the student attends the ineligible institution in an
35academic year in which the institution is ineligible.

36(iii) Provide initial and renewal Cal Grant recipients seeking to
37attend, or attending, an institution that is ineligible for initial and
38renewal Cal Grant awards at the institution under subparagraph
39(C) or (F) with a complete list of all California postsecondary
P15   1educational institutions at which the student would be eligible to
2receive an unreduced Cal Grant award.

3(iv) (I) Establish an appeal process for an otherwise qualifying
4institution that fails to satisfy the three-year cohort default rate and
5graduation rate requirements in subparagraphs (C) and (F),
6respectively.

7(II) In assessing whether to grant an appeal, the commission
8may consider cohort size and the likelihood of an otherwise
9qualifying institution regaining eligibility in the academic year
10next following the institution’s loss of eligibility.

11(J) By January 1, 2013, the Legislative Analyst shall submit to
12the Legislature a report on the implementation of this paragraph.
13The report shall be prepared in consultation with the commission,
14and shall include policy recommendations for appropriate measures
15of default risk and other direct or indirect measures of quality or
16effectiveness in educational institutions participating in the Cal
17Grant Program, and appropriate scores for those measures. It is
18the intent of the Legislature that appropriate policy and fiscal
19committees review the requirements of this paragraph and consider
20changes thereto.

21(m) “Satisfactory academic progress” means those criteria
22required by applicable federal standards published in Title 34 of
23the Code of Federal Regulations. The commission may adopt
24regulations defining “satisfactory academic progress” in a manner
25that is consistent with those federal standards.

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