Amended in Senate May 29, 2014

Amended in Assembly May 24, 2013

Amended in Assembly April 22, 2013

Amended in Assembly April 2, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1318

Introduced by Assembly Member Bonilla

February 22, 2013

An act to amend Section 66021.2 of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1318, as amended, Bonilla. Student financial aid: Cal Grant Program.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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 awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions, as defined.

This bill would add provisions that would set the maximum Cal Grant award levels for students attending nonpublic postsecondary educational institutions that are accredited by the Western Association of Schools and Colleges, commencing with the begin delete 2014-15 end delete begin insert 2015-16 end insert award year. The bill would begin delete provide end delete begin insert require, as a condition for the funding of Cal Grant maximum awards to its students, end insert that a nonpublic postsecondary educational institution accredited by the Western Association of Schools and Colleges begin delete would be deemed a qualifying institution if the total amount of institutional aid, as defined, provided to California resident students by that institution, in any award year, is no less than 50% of the total Cal Grant awards received by their students, except for institutions meeting prescribed conditions end delete begin insert submit specified performance metrics related to its students in a cumulative report generated by the Association of Independent California Colleges and Universities to the Legislature, the Governor, the Department of Finance, and the Legislative Analyst’s Office on or before March 15, 2015, and on or before March 15 of each year thereafter 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.  

The Legislature finds and declares all of the
following:

(a) California relies on private colleges and universities
accredited by the Western Association of Schools and Colleges
(WASC) to help meet the state’s higher education needs.

(b) The maximum award for Cal Grant students attending
WASC accredited private colleges and universities has not
increased since 1999:

(1) It was cut by almost 15 percent for the 2005-06 and 2006-07
cohorts.

(2) It was cut by 5 percent for new and renewal grants for the
2012-13 award year, and is scheduled to be cut begin insert by end insert an additional
1.5 percent in the 2013-14 award year and 11 percent in the
2014-15 award year for new awardees.

(3) Even if the maximum award had not been cut, its value
would have decreased by over begin delete 30 end delete begin insert 37 end insert percent due to inflation begin insert since
2000 end insert .

(4)  begin delete In inflation-adjusted dollars, the end delete begin insert The proposed end insert maximum
award for the 2014-15 award year will be the lowest amount
California has invested in academically qualified, financially
deserving students that attend private WASC accredited institutions
begin insert since the 1997-98 academic year end insert .

(c) The Cal Grant begin delete program end delete begin insert Program end insert effectively and successfully
helps California’s private colleges and universities to recruit, retain,
and graduate historically underrepresented students from
low-income families.

(d) Predictable and stable funding formulas and eligibility
requirements ensure that the state maximizes its investment and
allows families to plan and pay for higher education.

(e) Legislative action is needed to adopt a reasonable formula
that supports predictability and supports parity for students at
private colleges.

SEC. 2.  

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, except that in the first year of
enrollment in a qualifying institution, the maximum award shall
be only for the amount of the access award.

(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, except that,
in the first year of enrollment in a qualifying institution, the
maximum award shall be only for the amount of the access award.

(3) Notwithstanding paragraphs (1) and (2), and notwithstanding
Section 69432:

(A) The maximum Cal Grant award for a student attending a
nonpublic postsecondary educational institution accredited by the
Western Association of Schools and Colleges shall be set and
maintained at 75 percent of the base funding per Cal Grant student
at the University of California and the California State University,
as determined by the average General Fund support per student at
the California State University and the University of California,
plus the maximum Cal Grant award at those segments each
multiplied by the percentage of California resident full-time
equivalent students at both segments who attend the respective
segment, except as provided in clauses (i) to (iv), inclusive.

(i) For the begin delete 2014-15 end delete begin insert 2015-16 end insert award year, the maximum award
shall be 70 percent of the amount calculated pursuant to
subparagraph (A).

(ii) For the begin delete 2015-16 end delete begin insert 2016-17 end insert award year, the maximum award
shall be 80 percent of the amount calculated pursuant to
subparagraph (A).

(iii) For the begin delete 2016-17 end delete begin insert 2017-18 end insert award year, the maximum award
shall be 90 percent of the amount calculated pursuant to
subparagraph (A).

(iv) For the begin delete 2017-18 end delete begin insert 2018-19 end insert award year and each award year
thereafter, the maximum award shall be 100 percent of the amount
calculated pursuant to subparagraph (A).

begin delete

(B) A nonpublic postsecondary educational institution accredited
by the Western Association of Schools and Colleges shall be
deemed a qualifying institution if the total amount of institutional
aid provided to California resident students by that institution, in
any award year, is no less than 50 percent of the total Cal Grant
awards received by its students, unless that institution has fewer
than 50 students receiving Cal Grant awards or charges an annual
tuition that is no more than 50 percent of the average of the annual
tuition charged by all institutions to which this subparagraph is
applicable.

(C) As used in this paragraph, “institutional aid” includes
scholarships and fellowships granted and funded by a
postsecondary educational institution or by a department within
that institution, and includes scholarships targeted to certain
individuals based on, for example, state of residence, major field
of study, or athletic team participation, for which the institution
designates the recipient.

end delete begin insert

(B) As a condition for the funding of Cal Grant maximum
awards to its students pursuant to subparagraph (A), a nonpublic
postsecondary educational institution accredited by the Western
Association of Schools and Colleges shall submit performance
metrics in a cumulative report generated by the Association of
Independent California Colleges and Universities to the
Legislature, the Governor, the Department of Finance, and the
Legislative Analyst’s Office on or before March 15, 2015, and,
notwithstanding Section 10231.5 of the Government Code, on or
before March 15 of each year thereafter. The report shall be
submitted to the Legislature in compliance with Section 9795 of
the Government Code, and shall include all of the following data
with respect to each participating nonpublic postsecondary
educational institution:

end insert begin insert

(i) The number of undergraduate students enrolled in that
institution.

end insert begin insert

(ii) The percentage of undergraduate students of that institution
who are California residents.

end insert begin insert

(iii) The number of graduate students enrolled in that institution.

end insert begin insert

(iv) The number of transfer students from the California
Community Colleges enrolled in that institution.

end insert begin insert

(v) The percentage of undergraduate students of that institution
who are transfer students from the California Community Colleges.

end insert begin insert

(vi) The number of Pell Grant recipients enrolled in that
institution.

end insert begin insert

(vii) The percentage of undergraduate students of that institution
who are Pell Grant recipients.

end insert begin insert

(viii) The number of Cal Grant recipients enrolled in that
institution. With respect to those Cal Grant recipients:

end insert begin insert

(I) Their ethnic composition, expressed in percentages.

end insert begin insert

(II) The median amount of institutional aid provided to them.

end insert begin insert

(ix) The percentage of undergraduate students of that institution
who are Cal Grant recipients.

end insert begin insert

(x) The four- and six-year graduation rates for freshman
entrants of that institution:

end insert begin insert

(I) Disaggregated by Pell Grant recipients.

end insert begin insert

(II) Disaggregated by Cal Grant recipients.

end insert begin insert

(xi) The two- and three-year graduation rates for transfer
students from the California Community Colleges:

end insert begin insert

(I) Disaggregated by Pell Grant recipients.

end insert begin insert

(II) Disaggregated by Cal Grant recipients.

end insert begin insert

(xii) The number of degrees awarded annually by the institution
in total and in each of the following categories:

end insert begin insert

(I) Undergraduate students who first enrolled in the institution
as freshmen.

end insert begin insert

(II) Undergraduate students who first enrolled in the institution
as transfer students.

end insert begin insert

(III) Graduate students.

end insert begin insert

(IV) Pell Grant recipients.

end insert begin insert

(V) The number of degrees or credentials awarded in
health-related fields, teacher preparation, and the fields of science,
technology, engineering, and mathematics (STEM).

end insert

(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.