Amended in Senate June 11, 2014

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 Section 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.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program), establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T begin insert end insert awards 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.

With respect to Cal Grant B Entitlement awards, 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 delete the 2% limit for receipt of payments for tuition or fees, or both, for new Cal Grant B begin delete Entitlementaward end delete begin insert Entitlement award end insert recipients in their first academic year of attendance at an institution of postsecondary education, and instead provide that, for the begin delete 2014-15 end delete begin insert 2015- end insert begin insert 16 end insert , begin delete 2015-16 end delete begin insert 2016- end insert begin insert 17 end insert , and begin delete 2016-17 end delete begin insert 2017-18 end insert 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 begin delete 2017-18 end delete begin insert 2018-19 end insert 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. begin insert This bill would require that the institution not supplant any of its institutional need-based grants with funds provided for Cal Grant B awards, and maintain the funding amounts for these grants at a level that, at a minimum, is equal to the level maintained for undergraduate students during the 2013-14 academic year, in order for the students enrolled in the institution to remain eligible to receive a Cal Grant B award. This bill would become operative on July 1, 2015. 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:

SECTION 1.  

Section 69435 of the Education Code is amended
to read:

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, begin insert and
in the student’s first academic year as specified in paragraph (3) end insert
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) (A) For the begin delete 2014-15 end delete begin insert end insert begin insert 2015-16 end insert academic year, not more than
25 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.

(B) For the begin delete 2015-16 end delete begin insert 2016-17 end insert 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.

(C) For the begin delete 2016-17 end delete begin insert 2017-18 end insert 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.

(D) Commencing with the begin delete 2017-18 end delete begin insert 2018-19 end insert 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.

(E) The 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 insert

(c) The qualifying institution shall not supplant its institutional
need-based grants with the funds provided for Cal Grant B awards,
and shall maintain funding amounts for these grants at a level
that, at a minimum, is equal to the level maintained for
undergraduate students during the 2013-14 academic year, in
order for the students enrolled in the institution to remain eligible
to receive a Cal Grant B award under this article.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert This bill shall become operative on July 1, 2015. end insert