BILL ANALYSIS �
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THIRD READING
Bill No: SB 1028
Author: Jackson (D), et al.
Amended: 5/27/14
Vote: 21
SENATE EDUCATION COMMITTEE : 8-1, 4/30/14
AYES: Liu, Wyland, Block, Correa, Galgiani, Hancock, Hueso,
Monning
NOES: Huff
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : Cal Grant C awards
SOURCE : Author
DIGEST : This bill requires the California Student Aid
Commission (CSAC), in selecting students to receive a Cal Grant
C award, to give special consideration to students who meet
specified criteria, including the employment status of the
applicant; requires a Cal Grant C award to be utilized only for
occupational or technical training in a course of not less than
four months, as specified; and establishes new criteria and
processes for identifying areas of occupational and workforce
training which qualify for the awards.
ANALYSIS : Existing law authorizes the Cal Grant Program,
administered by the CSAC, to provide grants to financially needy
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students to attend college. 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.
Cal Grant C awards assist with tuition and training costs at
occupational or vocational programs and may be used for
institutional fees, charges, and other costs, including tuition,
plus training-related costs, such as special clothing, local
transportation, required tools, equipment, supplies, and books.
Existing law establishes the total number of Cal Grant C awards
as the number awarded in the 2000-01 fiscal year (7,761) with
the maximum award amount and the total amount of funding being
determined in the annual Budget Act.
Existing law requires the CSAC to consult with appropriate state
and federal agencies to develop areas of occupational and
technical training for which students may utilize Cal Grant C
awards. The CSAC, if necessary, may also consult with
nongovernmental stakeholders that develop or provide workforce
training or employ graduates of occupational and technical
training programs for this purpose. These areas of occupational
and technical training are required to be regularly reviewed and
updated at least every five years, beginning in 2012.
The CSAC is also required to undertake various activities to
support the granting of priority to certain Cal Grant C
applicants. Specifically, the CSAC is required to:
1. Give priority in granting Cal Grant C awards to students
pursuing occupational or technical training in areas that
meet at least two of the following criteria: high employment
need, high employment salary or wage projections, and high
employment growth. The CSAC is required to determine areas
of occupational or technical training that meet these
criteria in consultation with the Employment Development
Department (EDD) using projections available through the
Labor Market Information Data Library.
2. Publish, and retain, on its Internet Web site a current list
of the areas of occupational or technical training that meet
these criteria and to update this list as necessary.
3. Examine the graduation rates and job placement data of
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eligible programs, and commencing with the 2014-15 academic
year, to give priority to Cal Grant C applicants seeking to
enroll in programs that rate high in graduation rates and job
placement data.
Existing law requires the Legislative Analyst's Office (LAO) to
submit a report to the Legislature on the outcomes of the Cal
Grant C program on or before April 1, 2015, and on or before
April 1 of each odd-numbered year thereafter, as specified.
This bill requires CSAC, in selecting students to receive a Cal
Grant C award, to give special consideration to students who
meet specified criteria, including the employment status of the
applicant. Requires a Cal Grant C award to be utilized only for
occupational or technical training in a course of not less than
four months, as specified. Authorizes the use of the awards for
living expenses, and establishes new criteria and processes for
identifying areas of occupational and workforce training which
qualify for the awards.
This bill specifies the state entities with which the CSAC is
required to consult, requires that the CSAC update the priority
areas of occupational and technical training by January 1, 2016,
and expands the criteria which must be met for an occupational
or technical training area to qualify a student for priority in
the granting of a Cal Grant C awards, as specified.
Prior legislation . SB 451 (Price, Chapter 627, Statutes of
2011) required the CSAC to prioritize Cal Grant C awards to
students pursuing study in areas of high employment need, high
salary or wage protection, or high growth, and established
related authority and requirements for identifying these areas
of employment. The bill also required CSAC to examine
graduation rates and job placement data of eligible programs
and, commencing in 2014-15, to give priority to Cal Grant C
applicants seeking enrollment in programs rating highly in these
factors. The bill also requires the LAO report to the
Legislature to contain specified information.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
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Administration: Potentially significant costs to the CSAC to
coordinate with specified state, local, and private entities
to identify priority occupational areas, and to make
application scoring changes. The bulk of the costs would be
for an additional Associate Governmental Programs Analyst, at
a cost of approximately $80,000, to act as the lead for
implementing these provisions.
Program publicity: Potentially significant costs to develop
and implement a plan to publicize the Cal Grant Program to
California's long-term unemployed.
SUPPORT : (Verified 5/27/14)
Board of Governors, California Community Colleges
California Hospital Association
California Labor Federation
California Manufacturers & Technology Association
EDGE Coalition
Institute for College Access and Success
Jewish Vocational Service of San Francisco
Santa Barbara Chamber of Commerce
SEIU
ARGUMENTS IN SUPPORT : According to the author's office,
California has one of the highest long term unemployment rates
in the country. In February 2014, the author reports that 39%
of the 1.6 million unemployed had been so for six months or
longer. Time out of work results in skills erosion making it
harder for workers to go back to work. In addition, this bill
requires that the CSAC utilize information already developed by
other governmental agencies to help determine priority sectors
and occupations based on growth trends and job quality.
PQ:k 5/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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