BILL ANALYSIS �
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THIRD READING
Bill No: AB 1318
Author: Bonilla (D)
Amended: 6/26/14 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 7-0, 6/18/14
AYES: Liu, Wyland, Block, Correa, Hancock, Huff, Monning
SENATE APPROPRIATIONS COMMITTEE : 6-0, 8/14/14
AYES: De Le�n, Gaines, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters
ASSEMBLY FLOOR : 77-0, 5/29/13 - See last page for vote
SUBJECT : Cal Grant award at nonpublic postsecondary
institutions
SOURCE : Association of Independent California Colleges and
Universities
DIGEST : This bill establishes a statutory formula which
increases and stabilizes the amount of the current Cal Grant
award for students attending private colleges accredited by the
Western Association of Schools and Colleges (WASC) and requires
these colleges, as a condition of funding the Cal Grant maximum
award established by the bill, to annually report specified
performance metrics to the Association of Independent California
Colleges and Universities (AICCU). The AICCU, in collaboration
with the public segments of higher education, shall determine
the form and content of these metrics, as specified. The AICCU
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shall provide that information in a cumulative report to the
Legislature, Governor, Department of Finance (DOF), and
Legislative Analyst's Office (LAO) beginning March 15, 2015, and
by that date annually thereafter.
ANALYSIS : Existing law authorizes the Cal Grant Program,
administered by the California Student Aid Commission, to
provide grants to financially needy students to attend college.
The Cal Grant programs include both the entitlement and the
competitive Cal Grant awards. The program consists of the Cal
Grant A, Cal Grant B, and Cal Grant C programs, and eligibility
is based upon financial need, grade point average, California
residency, and other eligibility criteria, as specified.
Existing law provides for a long-term Cal Grant policy that
requires that the maximum Cal Grant A award and the Cal Grant B
award, for students attending each respective segment, equal the
amount of the mandatory systemwide fees at the University of
California (UC) and the California State University (CSU), as
specified. This policy also requires that the maximum Cal Grant
award for students attending nonpublic institutions equal the
tuition award level established in the Budget Act of 2000, or
the amount as adjusted in subsequent annual budget acts.
Notwithstanding the provisions of Education Code Section
66021.2, existing law, enacted through the 2012 Budget, sets the
maximum amount of the Cal Grant award for students who attend
private postsecondary institutions. Beginning in the 2013-14
award year, this amount is $4,000 for new recipients attending
private for-profit institutions. For new recipients attending
private non-profit institutions or private for-profit WASC
accredited institutions, the amount is set at $9,084 for the
2013-14 award year and $8,056 for 2014-15.
This bill establishes a maximum Cal Grant award for a student
attending a nonpublic postsecondary educational institution
accredited by WASC. Specifically, this bill:
1.Requires that the award be set and maintained at 75% of the
base funding per Cal Grant student at the UC and the CSU.
2.Requires, as a condition for funding of the Cal Grant maximum
award, the submission of performance metrics.
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3.Requires AICCU, in collaboration with the public segments of
higher education, determine the form and content of these
metrics, to ensure data are defined, collected, and reported
in a consistent and comparable manner, and to ensure data
integrity.
4.Requires the performance metrics be submitted in a cumulative
report generated by AICCU.
5.Requires the report be submitted to the Governor, the
Legislature, DOF and LAO by March 15, 2015, and by that date
annually thereafter.
6.Requires the report to include specified data for each
institution including:
A. The percentage of undergraduates who are California
residents, the number and percentage of transfer students
from California Community Colleges.
B. The number and percentage of Pell Grant students.
C. The number and percentage of Cal Grant recipients
enrolled and their ethnic composition (in percentages),
median amount of institutional aid.
D. The four and six year graduation rates for freshman
entrants disaggregated by Pell Grant and Cal Grant
recipients.
E. Two and three year graduation rates for California
Community College transfer students, disaggregated by Pell
Grant and Cal Grant recipients.
F. The number of degrees awarded annually by the
institution to undergraduates enrolled as freshmen,
undergraduates enrolled as transfer students, graduate
students and Pell Grant recipients.
G. The number of degrees and credentials awarded in
health-related fields, teacher preparation and science,
technology, engineering, and mathematics fields.
1.Requires the collection, reporting, and housing of data for
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the report prepared, as specified, to be conducted both in a
manner that ensures data integrity and security and that is in
conformance with any federal and state laws on the
confidentiality of student information.
2.Establishes a phasing in of the maximum allowable award per
the following schedule:
A. Requires that the maximum award be 70% of the amount
calculated per the formula established for the 2015-16
award year.
B. Requires that the maximum award be 80% of the amount
calculated per the formula established for the 2016-17
award year.
C. Requires that the maximum award be 90% of the amount
calculated per the formula established for the 2017-18
award year.
D. Requires that the maximum award be 100% of the amount
calculated per the formula established for the 2018-19
award year.
3.Makes a number of related declarations and findings.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Cal Grant awards: The California Student Aid Commission
estimates that increasing Cal Grant award levels for private,
WASC-accredited colleges, as required by this bill, will
result in additional costs of $12.3 million in 2015-16, $34.9
million in 2016-17, $65.3 million in 2017-18, and $102 million
in 2018-19 (General Fund). Annually thereafter, adjustments
would be based on the calculation of base funding, as
specified.
SUPPORT : (Verified 8/19/14)
Association of Independent California Colleges and Universities
(source)
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Azusa Pacific University
Biola University
California Baptist Church
California Catholic Conference
California Chamber of Commerce
California Institute of Technology
California Lutheran University
California Student Aid Commission
Chapman University
Church State Council
Claremont McKenna College
Fresno Pacific University
Holy Names University
La Sierra University
Menlo College
Mills College
Mount St. Mary's College
National University
Notre Dame de Namur University
Pacific Union College
Pepperdine University
Point Loma Nazarene University
Saint Mary's College of California
Santa Clara University
Simpson University
Stanford University
The Campaign for College Opportunity
The Fashion Institute of Design and Merchandising (FIDM)
Thomas Aquinas College
University of La Verne
University of Redlands
University of San Diego
University of Southern California
University of the Pacific
Vanguard University
Westmont College
Whittier College
ASSEMBLY FLOOR : 77-0, 5/29/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
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Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Holden, Linder, Vacancy
PQ:k 8/19/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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