BILL ANALYSIS �
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THIRD READING
Bill No: AB 1590
Author: Wieckowski (D)
Amended: 8/13/14 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 6-0, 6/4/14
AYES: Liu, Wyland, Block, Hancock, Huff, Monning
NO VOTE RECORDED: Correa, Vacancy, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 4/24/14 (Consent) - See last page for
vote
SUBJECT : Cal Grant Program
SOURCE : Author
DIGEST : This bill requires the California Student Aid
Commission (CSAC) to certify cohort default rate and graduation
rate data, for postsecondary educational institutions seeking to
participate in the Cal Grant Program, by November 1, instead of
October 1, annually. This bill revises federal loan program
participation requirements for private Cal Grant qualifying
institutions to include participation in the Stafford Loan
Program rather than the Perkins Loan Program.
Senate Floor Amendments of 8/13/14 update the Education Code
section being amended to reflect revisions made in the 2014-15
Budget. In addition, the amendments delete obsolete provisions
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AB 1590
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and make several technical changes.
ANALYSIS : Existing law authorizes the Cal Grant Program,
administered by CSAC, 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.
The 2012 and 2013 Budget Acts established new requirements for
institutional participation in the Cal Grant Program (SB 70,
Chapter 7, Statutes of 2011, and SB 1016, Chapter 38, Statutes
of 2012) by providing that:
1.For the 2011-12 academic year, an otherwise qualifying
institution for the Cal Grant Program must maintain a
three-year cohort default rate equal to or below 24.6% to be
eligible for Cal Grant awards at the institution.
2.For 2012-13, and every academic year thereafter, colleges must
maintain three year cohort default rates below 15.5% in order
to be eligible for initial and renewal Cal Grant awards at the
institution.
3.For 2012-13 and every academic year thereafter, an institution
must maintain a graduation rate above 30% to be eligible for
Cal Grant awards at the institution.
4.There is an exception to these requirements for an institution
with a three- year cohort default rate of below 10% and a
graduation rate above 20% through the 2016-17 academic year.
In addition, the budget required that, until July 1, 2013, an
institution that is ineligible for initial or renewal Cal Grant
awards because it fails to meet cohort default rate or
graduation rate requirements is eligible for a Cal Grant award
for 20% less of the fee portion of the maximum Cal Grant A and B
awards for those students who were enrolled at the institution
in the academic year prior to the institution's ineligibility.
It also prohibited the reductions from impacting the access
costs covered by the Cal Grant B award.
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Finally, the budget required that the CSAC notify initial and
renewal Cal Grant recipients of these changes and the impact to
their awards, as appropriate. In addition, the CSAC is required
to provide affected Cal Grant recipients with a complete list of
all California postsecondary educational institutions at which
the student will be eligible to receive an unreduced Cal Grant
award.
Existing law provides that the cohort default rate and
graduation requirements do not apply to institutions with 40% or
less of its students borrowing federal student loans.
Existing law requires the Legislative Analyst Office (LAO) to
submit a report on the implementation of the changes to Cal
Grant eligibility implemented by the Budget Act of 2012, by
January 1, 2013.
This bill:
1.Makes changes to the requirements which must be met in order
to be a "qualifying institution" for purposes of the Cal Grant
Program:
A. Replaces the requirement that a California private or
independent postsecondary educational institution that
participates in the Pell Grant Program also participate in
the Perkins Loan Program with the Stafford Loan Program.
B. Requires that the CSAC certify the institution's
official three-year cohort default rate and graduation
rate.
C. Changes the date by which the CSAC must certify an
institution's latest official three-year cohort default
rate and graduation rate, from October 1 to November 1.
D. Consolidates the definition of graduation rate within a
single subdivision.
1.Makes other technical and conforming changes.
2.Delete's obsolete LAO reporting requirements.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: No
SUPPORT : (Verified 8/13/14)
California Counsel Economic Education
California State Student Association
California Student Aid Commission
ASSEMBLY FLOOR : 75-0, 4/24/14
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,
Patterson, Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
P�rez
NO VOTE RECORDED: Gray, Harkey, Mansoor, Nazarian, Vacancy
PQ:e 8/14/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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