Amended in Assembly May 24, 2013

Amended in Assembly April 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1285

Introduced by Assembly Member Fong

February 22, 2013

An act to amend begin delete Sections 66021.2 and end delete begin insert Section end insert 69435 of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1285, as amended, Fong. Student financial aid: Cal Grant Program.

begin delete

(1) Existing

end delete

begin insert Existing end insert law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program), establishes the Cal Grant A and B Entitlement begin delete Awards end delete begin insert awards end insert , the California Community College Transfer Cal Grant Entitlement begin delete Awards end delete begin insert awards end insert , the Competitive Cal Grant A and B begin delete Awards end delete begin insert awards end insert , the Cal Grant C begin delete Awards end delete begin insert awards end insert , and the Cal Grant T begin delete Awards end delete begin insert awards end insert under the administration of the Student Aid Commission, and establishes eligibility requirements and maximum levels for awards under these programs for participating students attending qualifying institutions, as defined. Under the Cal Grant Program, the maximum Cal Grant B award for a student attending the University of California or the California State University equals the mandatory systemwide fees in the segment attended by the student, plus the award for access costs, and the maximum Cal Grant B award for a student attending a nonpublic institution equals the amount of the tuition award, as prescribed, plus the award for access costs, except that in the first year of enrollment in a qualifying institution, the maximum award is only for the amount of the access award.

begin delete

This bill would delete the provisions that limit the maximum Cal Grant B award for a student attending the University of California, the California State University, or a nonpublic institution to the amount of the access award in the student’s first year of enrollment in the institution.

end delete begin delete

(2) With

end delete

begin insert With end insert respect to Cal Grant B Entitlement begin delete Awards end delete begin insert awards end insert , existing law requires that the award be used only for tuition, student fees, and access costs, as defined, in a for-credit instructional program that is not less than one academic year in length. Existing law requires that no more than 2% of new Cal Grant B recipients enrolling for the first time in an institution of postsecondary education are eligible for payments for tuition or fees, or both, in their first academic year of attendance.

This bill would begin delete specify that any student who meets the requirements for a Cal Grant B Entitlement award is guaranteed to receive a Cal Grant B Entitlement award, and would also specify that the determination of the amount of any individual tuition and fee award under the Cal Grant B Entitlement Award depends on the cost of tuition or fees, or both, at the qualifying institution at which the student is enrolled. The bill would end delete delete the 2% limit for receipt of payments for tuition or fees, or both, for new Cal Grant B Entitlement begin delete Award end delete begin insert award end insert recipients in their first academic year of attendance at an institution of postsecondary education, begin delete thus making all of the Cal Grant B Entitlement Award recipients eligible for these payments end delete begin insert and instead provide that, for the 2014-15, 2015-16, and 2016-17 academic years, respectively, 25%, 50%, and 75% of the Cal Grant B Entitlement award recipients would be eligible for payments for tuition or fees, or both, in their first academic year of attendance at an institution of postsecondary education. The bill would further provide that, commencing with the 2017-18 academic year, and each academic year thereafter, all new Cal Grant B recipients enrolling for the first time in an institution of postsecondary education would be eligible for payments for tuition or fees, or both, in their first academic year of attendance end insert .

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 69435 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

69435.  

(a) (1) A Cal Grant B award shall be used only for
tuition, student fees, and access costs in a for-credit instructional
program that is not less than one academic year in length.

(2) The commission, or a qualifying institution pursuant to
Article 8 (commencing with Section 69450), shall award access
grants in a student’s first academic year. In subsequent years, the
award shall include an additional amount to pay tuition or fees, or
both, to attend college at a public or private four-year college or
university or other qualifying institution for all Cal Grant B awards
pursuant to paragraph (2) of subdivision (b) of Section 66021.2.
In no event shall the total award in any year exceed the applicant’s
calculated financial need.

(3)  begin delete Not end delete begin insert (A) end insert begin insert   end insert begin insert For the 2014-15 academic year, not end insert more than begin delete 2 end delete
begin insert 25 end insert percent of new Cal Grant B recipients enrolling for the first
time in an institution of postsecondary education shall be eligible
for payments for tuition or fees, or both, in their first academic
year of attendance. begin delete The end delete

begin insert

(B) For the 2015-16 academic year, not more than 50 percent
of new Cal Grant B recipients enrolling for the first time in an
institution of postsecondary education shall be eligible for
payments for tuition or fees, or both, in their first academic year
of attendance.

end insert begin insert

(C) For the 2016-17 academic year, not more than 75 percent
of new Cal Grant B recipients enrolling for the first time in an
institution of postsecondary education shall be eligible for
payments for tuition or fees, or both, in their first academic year
of attendance.

end insert begin insert

(D) Commencing with the 2017-18 academic year, and each
academic year thereafter, all new Cal Grant B recipients enrolling
for the first time in an institution of postsecondary education shall
be eligible for payments for tuition or fees, or both, in their first
academic year of attendance.

end insert

begin insert (E) end insert begin insert   end insert begin insert The end insert commission shall adopt regulations specifying the
criteria used to determine which applicants, if any, receive both
tuition and fees plus the access grant in the first year of enrollment.
Priority shall be given to students with the lowest expected family
contribution pursuant to Section 69432.7 and the highest level of
academic merit.

(b) An award for access costs under this article shall be in an
annual amount not to exceed one thousand five hundred fifty-one
dollars ($1,551). This amount may be adjusted in the annual Budget
Act.

begin delete

SECTION 1.  

Section 66021.2 of the Education Code is
amended to read:

66021.2.  

Consistent with the state’s historic commitment to
provide educational opportunity by ensuring both student access
to and selection of an institution of higher education for students
with financial need, the long-term policy of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
established pursuant to Chapter 1.7 (commencing with Section
69430) of Part 42 shall be as follows:

(a) Commencing with the 2001-02 academic year and every
year thereafter, an applicant for a Cal Grant A or B award shall
receive an award that is not in excess of the financial need amount
determined by the Student Aid Commission pursuant to Section
69432.9 if he or she complies with all of the following
requirements:

(1) Demonstrates financial need under the criteria adopted
pursuant to Section 69432.9.

(2) Attains a grade point average, as defined in Section 69432.7,
meeting the requirements of Chapter 1.7 (commencing with Section
69430) of Part 42.

(3) Complies with each of the eligibility criteria applicable to
the type of Cal Grant award for which he or she is applying.

(b) (1) The maximum Cal Grant A award for a student attending
the University of California or the California State University shall
equal the mandatory systemwide fees in each of those segments.

(2) The maximum Cal Grant B award for a student to which
this subdivision is applicable shall equal the mandatory systemwide
fees in the segment attended by the student, except for community
college students who receive waivers from the Board of Governors
of the California Community Colleges, plus the access award
calculated as specified in Article 3 (commencing with Section
69435) of Chapter 1.7 of Part 42.

(c) The maximum Cal Grant awards for students attending
nonpublic institutions shall be as follows:

(1) The maximum Cal Grant A award shall equal the tuition
award level established in the Budget Act of 2000, or the amount
as adjusted in subsequent annual budget acts.

(2) The maximum Cal Grant B award shall equal the amount
of the tuition award as established in the Budget Act of 2000, or
the amount as adjusted in subsequent annual budget acts, plus the
amount of the access costs specified in Section 69435.

(d) Commencing with the 2000-01 academic year, and each
academic year thereafter, the Cal Grant C award shall be utilized
only for occupational or technical training.

(e) Commencing with the 2000-01 academic year, and each
academic year thereafter, the Cal Grant T award shall be used only
for one academic year of full-time attendance in a program of
professional preparation that has been approved by the California
Commission on Teacher Credentialing.

(f) An institution of higher education in this state that
participates in the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program shall not reduce its level of per capita need-based
institutional financial aid to undergraduate students, excluding
loans, below the total level awarded in the 2000-01 academic year.

(g) The implementation of the policy set forth in this section
shall maintain a balance between the state’s policy goals of
ensuring student access to and selection of an institution of higher
education for students with financial need and academic merit.

(h) It is the policy of the State of California that the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
supplement the federal Pell Grant program.

(i) An award under the Ortiz-Pacheco-Poochigian-Vasconcellos
Cal Grant Program shall not guarantee admission to an institution
of higher education or admission to a specific campus or program.

SEC. 2.  

Section 69435 of the Education Code is amended to
read:

69435.  

(a) A Cal Grant B award shall be used only for tuition,
student fees, and access costs in a for-credit instructional program
that is not less than one academic year in length. Each student who
meets the requirements for a Cal Grant B award as set forth in this
article shall be guaranteed to receive a Cal Grant B award. The
determination of the amount of any individual tuition and fee award
under this article depends on the cost of tuition or fees, or both, at
the qualifying institution at which the student is enrolled.

(b) An award for access costs under this article shall be in an
annual amount not to exceed one thousand five hundred fifty-one
dollars ($1,551). This amount may be adjusted in the annual Budget
Act. In no event shall the amount of the total award under this
article in any year exceed the applicant’s calculated financial need.

end delete