AB 1085, as amended, Beth Gaines. Cal Grant Program: maximum award amounts: private institutions.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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 sets maximum tuition award amounts for Cal Grant A and B awards for new recipients attending private for-profit and nonprofit postsecondary educational institutions, as specified.
This bill wouldbegin insert, until June 30, 2014,end insert increase those maximum tuition award amounts for recipients attending private for-profit and nonprofit postsecondary educational institutions to $9,708.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) The 2012-13 Budget Act reduced Cal Grant award amounts
4for students attending private postsecondary educational institutions
5by 17 to 59 percent commencing with the 2013-14 award year.
6The Governor also further reduced Cal Grant award awards for
7the 2012-13 award year by 5 percent to save $23,000,000 for
8consistency.
9(b) These Cal Grant award reductions disproportionately affect
10low-income families. Those recipients who are hurt most by the
11reductions are the following:
12(1) Minorities, who receive 60 percent of Cal Grant awards.
13(2) Females, who receive 64 percent of Cal Grant awards.
14(3) Students with parents who make under $36,000 a year, who
15receive 67 percent of Cal Grant awards.
16(4) Students with parents who make under $48,000 a year, who
17receive 82 percent of Cal Grant awards.
18(c) The Legislative Analyst’s Office has warned that reducing
19Cal Grant awards to students attending private postsecondary
20educational institutions may have the unintended effect of driving
21more students from private institutions to public institutions,
22thereby increasing the overall cost to the taxpayer to educate those
23students.
Section 69432 of the Education Code is amended to
25read:
(a) Cal Grant Program awards shall be known as “Cal
27Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,”
28“California Community College Transfer Entitlement Awards,”
29“Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,”
30and “Cal Grant T Awards.”
31(b) Maximum award amounts for students at independent
32institutions and for Cal Grant C and T awards shall be identified
33in the annual Budget Act. Maximum award amounts for Cal Grant
P3 1A and B awards for students attending public institutions shall be
2referenced in the annual Budget Act.
3(c) (1) Notwithstanding subdivision (b), and subdivision
(c) of
4Section 66021.2, commencing with the 2013-14 award year, the
5maximum tuition award amounts for Cal Grant A and B awards
6for students attending private postsecondary educational institutions
7shall be nine thousand seven hundred eight dollars ($9,708).
8(2) The renewal award amount for a student whose initial award
9is subject to a maximum award amount specified in this subdivision
10shall be calculated pursuant to paragraph (2) of subdivision (a) of
11Section 69433.
12(d) This section shall become inoperative on June 30, 2014,
13and, as of January 1, 2015, is repealed, unless a later enacted
14statute, that becomes operative on or before January 1, 2015,
15deletes or extends the dates on which it becomes inoperative and
16is
repealed.
begin insertSection 69432 is added to the end insertbegin insertEducation Codeend insertbegin insert, to read:end insert
begin insert(a) Cal Grant Program awards shall be known as “Cal
19Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,”
20“California Community College Transfer Entitlement Awards,”
21“Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,”
22and “Cal Grant T Awards.”
23(b) Maximum award amounts for students at independent
24institutions and for Cal Grant C and T awards shall be identified
25in the annual Budget Act. Maximum award amounts for Cal Grant
26A and B awards for students attending public institutions shall be
27referenced in the annual Budget Act.
28(c) (1) Notwithstanding subdivision (b), and subdivision (c) of
29Section 66021.2, commencing with the 2013-14 award year, the
30maximum tuition award amounts for Cal Grant A and B awards
31for students attending private for-profit and nonprofit
32postsecondary educational institutions shall be as follows:
33(A) Four thousand dollars ($4,000) for new recipients attending
34private for-profit postsecondary educational institutions.
35(B) For the 2013-14 award year, nine thousand eighty-four
36dollars ($9,084) for new recipients attending private nonprofit
37postsecondary educational institutions. For the 2014-15 award
38year and each award year thereafter, eight thousand fifty-six
39dollars ($8,056) for new recipients attending private
nonprofit
40postsecondary educational institutions.
P4 1(2) The renewal award amount for a student whose initial award
2is subject to a maximum award amount specified in this subdivision
3shall be calculated pursuant to paragraph (2) of subdivision (a)
4of Section 69433.
5(3) Notwithstanding subparagraph (A) of paragraph (1), new
6recipients attending private for-profit postsecondary educational
7institutions that are accredited by the Western Association of
8Schools and Colleges as of July 1, 2012, shall have the same
9maximum tuition award amounts as are set forth in subparagraph
10(B) of paragraph (1).
11(d) This section shall become operative on June 30, 2014.
This act is an urgency statute necessary for the
14immediate preservation of the public peace, health, or safety within
15the meaning of Article IV of the Constitution and shall go into
16immediate effect. The facts constituting the necessity are:
17In order to restore vital Cal Grant awards for recipients attending
18private postsecondary educational institutions, it is necessary that
19this act take immediate effect.
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