Amended in Assembly April 3, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1976

Introduced by Assembly Member Quirk-Silva

February 19, 2014

An act to amend Sections 69437 and 69437.6 of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL’S DIGEST

AB 1976, as amended, Quirk-Silva. Student financial aid: Competitive Cal Grant A and B awards.

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. Existing law limits the number of Competitive Cal Grant A and B awards that may be granted in an academic year to 22,500.

This bill would increase to 50,000 the number of Competitive Cal Grant A and B awards that may be granted in an academic year, commencing with the 2015-16 academic year. The bill would begin delete authorize end delete begin insert require end insert the commission to begin delete use data from end delete begin insert calculate a target for awards to be paid in an award year as specified, end insert begin insert estimate a take-rate for awards by dividing the total number of awards paid by the total number of offers made during end insert the 3 award years immediately preceding begin delete an end delete begin insert that end insert award year begin delete in order to estimate the maximum number of award offers that the commission may make without the number of acceptances exceeding 50,000 end delete begin insert , and estimate the number of award offers that the commission may make to achieve the target for awards to be paid, as specified end insert . The bill would also authorize the commission to exceed the 50,000 award limit in an academic year when the number of acceptances exceeds 50,000, begin delete but would further require, immediately subsequent to an academic year when the number of awards exceeds 50,000, that the commission reduce the number of awards made by the number by which the awards made in the previous academic year exceeded 50,000. end delete begin insert under specified conditions. 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 69437 of the Education Code is amended
to read:

69437.  

(a) Commencing with the 2001-02 academic year, and
each academic year thereafter, there shall be established the
Competitive Cal Grant A and B award program for students who
did not receive a Cal Grant A or B entitlement award pursuant to
Article 2 (commencing with Section 69434), Article 3
(commencing with Section 69435), or Article 4 (commencing with
Section 69436). Awards made under this section are not
entitlements. The submission of an application by a student under
this section shall not entitle that student to an award. The selection
of students under this article shall be determined pursuant to
subdivision (c) and other relevant criteria established by the
commission.

(b) (1) Commencing with the 2015-16 academic year, a total
of 50,000 Cal Grant A and B awards shall be granted annually
under this article on a competitive basis for applicants who meet
the general eligibility criteria established in Article 1 (commencing
with Section 69430) and the priorities established by the
commission pursuant to subdivision (c).

(2) Fifty percent of the awards referenced in this subdivision
are available to all students, including California community
college students, who meet the financial need and academic
requirements established pursuant to this article. A student
enrolling at a qualifying baccalaureate degree granting institution
shall apply by the March 2 deadline. A California community
college student is eligible to apply at the March 2 or the September
2 deadline.

(3) Fifty percent of the awards referenced in this subdivision
are reserved for students who will be enrolled at a California
community college. The commission shall establish a second
application deadline of September 2 for community college
students to apply for these awards effective with the fall term or
semester of the 2001-02 academic year.

(4) If any awards are not distributed pursuant to paragraphs (1)
and (2) upon initial allocation of the awards under this article, the
commission shall make awards to as many eligible students as
possible, beginning with the students with the lowest expected
family contribution and highest academic merit, consistent with
the criteria adopted by the commission pursuant to subdivision
(c), as practicable without exceeding an annual cumulative total
of 50,000 awards.

(5)  begin insert (A) end insert begin insert   end insert In granting awards begin delete for an award year end delete under this article
begin insert for the 2015-16 award year end insert , the commission begin delete is authorized to use
data from the three award years immediately preceding that year
in order to estimate the maximum number of award offers that the
commission may make without the number of acceptances
exceeding 50,000. Notwithstanding paragraphs (1) to (4), inclusive,
the commission may exceed the 50,000 award limit in an academic
year when the number of acceptances exceeds 50,000. In any
academic year immediately subsequent to an academic year when
the number of awards exceeds 50,000, the commission shall reduce
the number of awards made by the number by which the awards
made in the previous academic year exceeded 50,000. end delete begin insert shall do all
of the following: end insert

begin insert

(i) Establish a target of 50,000 awards to be paid.

end insert begin insert

(ii) Estimate the take-rate for awards by dividing the total
number of awards paid by the total number of offers made during
the three award years immediately preceding the 2015-16 award
year.

end insert begin insert

(iii) Estimate the number of award offers that the commission
may make to achieve the target for awards paid by dividing 50,000
by the take-rate estimated pursuant to clause (ii).

end insert begin insert

(B) In granting awards under this article for the 2016-17 award
year and subsequent award years, the commission shall do all of
the following:

end insert begin insert

(i) Calculate a target for awards to be paid by subtracting the
number of awards paid in the previous award year from the target
for awards paid in the previous award year and adding the result
to 50,000.

end insert begin insert

(ii) Estimate the take-rate for awards by dividing the total
number of awards paid by the total number of offers made during
the three award years immediately preceding that award year.

end insert begin insert

(iii) Estimate the number of award offers that the commission
may make to achieve the target for awards paid calculated
pursuant to clause (i) by dividing the target by the take-rate
estimated pursuant to clause (ii).

end insert begin insert

(6) Notwithstanding paragraphs (1) to (4), inclusive, the
commission may exceed the 50,000 award limit in an academic
year when the number of acceptances exceeds 50,000, provided
that, in the 2016-17 award year and subsequent award years, the
commission grants awards in accordance with subparagraph (B)
of paragraph (5).

end insert

(c) (1) On or before February 1, 2001, acting pursuant to a
public hearing process that is consistent with the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120)
of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
Code), the commission shall establish selection criteria for Cal
Grant A and B awards under the competitive program that give
special consideration to disadvantaged students, taking into
consideration those financial, educational, cultural, language,
home, community, environmental, and other conditions that hamper
a student’s access to, and ability to persist in, postsecondary
education programs.

(2) Additional consideration shall be given to each of the
following:

(A) Students who graduated from high school or its equivalent
prior to the 2000-01 academic year. This subparagraph shall not
be applicable after the 2004-05 academic year.

(B) Students pursuing Cal Grant B awards who reestablish their
grade point averages.

(C) Students who did not receive awards pursuant to Article 2
(commencing with Section 69434), Article 3 (commencing with
Section 69435), or Article 4 (commencing with Section 69436).

(d) All other students who meet the eligibility requirements
pursuant to Article 1 (commencing with Section 69430) are eligible
to compete for an award pursuant to this article.

SEC. 2.  

Section 69437.6 of the Education Code is amended to
read:

69437.6.  

(a) An applicant competing for an award under this
article shall meet all the requirements of Article 1 (commencing
with Section 69430).

(b) To compete for a competitive Cal Grant A award, an
applicant shall, at a minimum, meet all of the requirements of
Article 2 (commencing with Section 69434), with the exception
of paragraphs (1) and (8) of subdivision (b) of Section 69434.
However, in lieu of meeting the grade point average requirement
set forth in paragraph (3) of subdivision (b) of Section 69434, an
applicant may submit a community college or college grade point
average of at least 2.4 on a 4.0 scale.

(c) To compete for a competitive Cal Grant B award, an
applicant shall, at a minimum, meet all of the requirements of
Article 3 (commencing with Section 69435), with the exception
of paragraphs (1) and (8) of subdivision (a) of Section 69435.3.
However, in lieu of meeting the grade point average requirements
of paragraph (3) of subdivision (a) of Section 69435.3, a student
may do either of the following:

(1) Demonstrate attainment of a community college or college
grade point average of at least 2.0 on a 4.0 scale.

(2) Reestablish his or her grade point average by completing at
least 16 cumulative units of credit for academic coursework at an
accredited California community college, as defined by the
commission, by regulation, with at least a 2.0 community college
grade point average.

(d) To compete for a competitive California Community College
Transfer Cal Grant Award, an applicant shall, at a minimum, meet
the requirements of Article 4 (commencing with Section 69436),
with the exception of paragraphs (8) and (9) of subdivision (b) of
Section 69436.

(e) All other competitors shall, at a minimum, comply with all
of the requirements of subdivision (b) of Section 69432.9.

(f) An individual selected for a Cal Grant A award who enrolls
in a California community college may elect to have the award
held in reserve for him or her for a period not to exceed two
academic years, except that the commission may extend the period
in which his or her award may be held in reserve for up to three
academic years if, in the commission’s judgment, the rate of
academic progress has been as rapid as could be expected for the
personal and financial conditions that the student has encountered.
The commission shall, in this case, hold the award in reserve for
the additional year. Upon receipt of a request to transfer the award
to a tuition or fee charging qualifying institution, the individual
shall be eligible to receive the Cal Grant A award previously held
in reserve if, at the time of the request, he or she meets all of the
requirements of this article. Upon receipt of the request, the
commission shall reassess the financial need of the award recipient.
The commission may prescribe the forms and procedures to be
utilized for the purposes of this section. A recipient’s years of
eligibility for payment of benefits shall be based upon his or her
grade level at the time the award is transferred to the tuition or fee
charging qualifying institution. Any award so held in reserve shall
only be counted once toward the 50,000 awards authorized by this
article.