Bill Text: CA AB25 | 2023-2024 | Regular Session | Amended
Bill Title: Student financial aid: Middle Class Scholarship Program.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed) 2023-09-01 - In committee: Held under submission. [AB25 Detail]
Download: California-2023-AB25-Amended.html
|
Amended
IN
Senate
July 03, 2023 |
|
Amended
IN
Assembly
April 13, 2023 |
|
Amended
IN
Assembly
March 16, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 25
| Introduced by Assembly Members McCarty, Cervantes, Lee, and Santiago |
December 05, 2022 |
An act to amend Section 70022 of the Education Code, relating to student financial aid.
LEGISLATIVE COUNSEL'S DIGEST
AB 25, as amended, McCarty.
Student financial aid: Middle Class Scholarship Program.
Existing law establishes the Middle Class Scholarship Program (MCSP) under the administration of the Student Aid Commission. Existing law law, subject to an available and sufficient appropriation, makes an undergraduate student eligible for a scholarship award under the MCSP if the student is enrolled at the University of California or the California State University, or enrolled in upper division coursework in a community college baccalaureate program, and meets certain eligibility requirements.
This bill would prohibit the commission, the University of California, the California State University, and a community college operating a baccalaureate degree program from considering any basic needs emergency aid in the awarding or adjusting of MCSP awards.
would require the Department of Finance, following a growth of General Fund revenues for 2 consecutive fiscal years, to fund the cost of the MCSP, as determined by the commission, over the 5 fiscal years following that growth, as provided.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
It is the intent of the Legislature to fully fund the Middle Class Scholarship Program, established pursuant to Article 22 (commencing with Section 70020) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to provide a debt-free college pathway for all eligible undergraduate students enrolled in the University of California and the California State University and community college students enrolled in upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code. It is the further intent of the Legislature to fully fund the Cal Grant Reform Act, established pursuant to Chapter 1.5 (commencing with Section 69405) of Part 42 of Division 5 of Title 3 of the Education Code, before funding the Middle Class Scholarship Program.SEC. 2.
Section 70022 of the Education Code is amended to read:70022.
(a) (1) Subject to an available and sufficient appropriation, an undergraduate student enrolled in the California State University or the University of California, or a community college student enrolled in upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, who meets the requirements of paragraph (3) is eligible for a scholarship award as described in paragraph (2).(2) (A) For the 2013–14 to the 2021–22 academic year, inclusive, except as provided in paragraphs (4) and (5), an eligible student shall receive a scholarship award in an amount that, combined with other federal, state, or institutionally
administered student grants or fee waivers received by an eligible student, is up to 40 percent of the amount charged to that student in that academic year for mandatory systemwide tuition and fees, or for an eligible community college student, up to 40 percent of the amount charged to that student in upper division fees for a community college baccalaureate degree program, if all of the requirements in paragraph (3) are met, to the satisfaction of the commission, each academic year.
(B) Commencing with the 2022–23 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:
(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers, and the amount of
private scholarships awarded to the student in excess of the sum of the amounts in clauses (ii) and (iii).
(ii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources. Commencing with the 2024–25 award year, the commission shall annually adjust this amount based on the percentage change in the minimum wage, pursuant to paragraph (1) of subdivision (c) of Section 1182.12 of the Labor Code.
(iii) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable
rules and regulations adopted by the commission.
(3) (A) A student shall be eligible to receive an award if all of the following requirements are met, to the satisfaction of the commission, each academic year:
(B) (i) For each academic year from 2013–14 to 2021–22, inclusive, the student’s annual household income does not exceed one hundred fifty thousand dollars ($150,000). For awards distributed for the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum income level set under this clause in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, annual household income shall be calculated in a manner that is
consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(ii) Commencing with the 2022–23 academic year, the student’s annual household income does not exceed the following amounts:
(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.
(II) One hundred thirty-three thousand dollars ($133,000) if the student is a married independent student with no dependents other than a spouse.
(III) One hundred sixteen thousand dollars ($116,000) if the student is a single independent student with no dependents.
(iii) For awards distributed for the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum income levels set under clause (ii) in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(C) (i) For each academic year from 2015–16 to 2021–22, inclusive, the student’s household asset level shall not exceed one hundred fifty thousand dollars ($150,000). For awards distributed in the 2016–17 academic year and
subsequent academic years, the commission shall annually adjust the maximum household asset level set under this clause in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(ii) Commencing with the 2022–23 academic year, the student’s household asset level does not exceed the following amounts:
(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.
(II) Ninety-six thousand dollars ($96,000) if the student is a single independent student with no dependents or a married independent student with no dependents other than a spouse.
(iii) For awards distributed in the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under clause (ii) in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, a student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(D) The student satisfies the eligibility requirements for a Cal Grant award pursuant to Section 69433.9, except that a student who is exempt from nonresident tuition under Section 68130.5 shall not be required to satisfy the requirements of subdivision (a) of Section 69433.9.
(E) The student is exempt from paying nonresident tuition.
(F) The student completes and submits a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application. The FAFSA or California Dream Act application must be submitted or postmarked by no later than March 2.
(G) The student makes a timely application or applications for all other federal, state, or institutionally administered grants or fee waivers for which the student is eligible.
(H) The student maintains satisfactory academic progress in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to subdivision (m) of Section 69432.7.
(I) The student is pursuing the student’s first undergraduate baccalaureate degree or has completed a baccalaureate degree and has been admitted to, and is enrolled in, a program of professional teacher preparation at an institution approved by the Commission on Teacher Credentialing.
(J) The student is enrolled at least part time.
(4) (A) For each academic year from 2013–14 to 2021–22, inclusive, the percentages specified in paragraph (2) shall be reduced by 0.6-percent increments per one thousand dollars
($1,000) of annual household income in excess of one hundred thousand dollars ($100,000), to a minimum 10 percent, provided that no scholarship award shall be provided to a student with an annual household income exceeding one hundred fifty thousand dollars ($150,000). Beginning with award calculations for the 2016–17 academic year, and for subsequent academic years, the commission shall annually adjust the income levels specified in this subparagraph by the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution and shall adjust the incremental reduction accordingly to ensure that a minimum of 10 percent of mandatory systemwide tuition and fees for an academic year are awarded. This reduction shall be in addition to any reduction required by Section 70023.
(B) Notwithstanding subparagraph (A), for each academic year from
2013–14 to 2021–22, inclusive, for any student who qualifies for a scholarship award of at least one dollar ($1), the minimum annual scholarship amount for full-time enrollment is ninety dollars ($90).
(5) (A) For the 2014–15, 2015–16, and 2016–17 academic years, the maximum amount of a student’s scholarship award shall be 35 percent, 50 percent, and 75 percent, respectively, of the total scholarship award amount that the student would otherwise be eligible to receive.
(B) Commencing with the 2022–23 academic year, the maximum amount of a student’s scholarship award shall be determined by the percentage determined pursuant to subparagraph (C) of the total scholarship award amount that the student would otherwise be eligible to receive.
(C) The commission shall annually determine the percentage
required for purposes of subparagraph (B) by taking the amount appropriated for the purposes of this program for the applicable award year and dividing that by the sum of the projected amount computed for all eligible students pursuant to subparagraph (B) of paragraph (2) for the applicable award year.
(b) (1)In order for students enrolled in their respective segments to remain eligible to receive a scholarship award under this article, the University of California and the California State University shall not supplant their respective institutional need-based or merit-based grants with the funds provided for scholarships under this article. The University of California and the California State University shall ensure that the amount of institutional student aid
provided in each academic year beginning with the 2022–23 academic year is adjusted annually to account for increases in systemwide undergraduate enrollment, as applicable, such that the proportion of institutional student aid relative to systemwide undergraduate enrollment is maintained at a level at least equivalent to the level maintained for undergraduate students during the 2021–22 academic year. The University of California and the California State University shall also ensure that at least 33 percent of the revenues of an increase to existing mandatory systemwide fees charged to undergraduate students is set aside by the regents or the trustees, as applicable, for institutional student aid to assist resident undergraduate students, including those undergraduate students exempt from nonresident tuition pursuant to Sections 68075.5 and 68130.5, and families in meeting the total cost of education.
(2)The respective segments and the commission shall not consider any basic needs emergency aid in the awarding or adjusting of scholarships pursuant to this article. For purposes of this paragraph, “basic needs emergency aid” includes aid that the institution of attendance gives to the student for purposes of emergencies and to cover the student’s basic needs.
(c) (1) The University of California and the California State University shall report on the implementation of this article as part of the report made pursuant to Section 66021.1. At a minimum, the report shall add the following information, by parental income level or expected family contribution deciles, for the prior academic year:
(A) The number and percentage of students receiving an award under this article and the average dollar amount of that award.
(B) The number and percentage of students receiving a student loan and the average amount borrowed.
(2) The report shall also include the following information by campus for the prior academic year:
(A) The cost of
attendance for undergraduates in each living arrangement (on campus, off campus, or at home with parents).
(B) The number and percentage of undergraduates in each living arrangement (on campus, off campus, or at home with parents).
(d) (1) Subject to paragraph (1) of subdivision (a), following a growth of General Fund revenues for two consecutive fiscal years, the Department of Finance shall fund the Middle Class Scholarship Program as follows:
(A) Twenty percent of the total cost to fund the program in the first fiscal year following the two consecutive fiscal years of growth of General Fund revenues.
(B) Forty percent of the total cost to fund the program in the fiscal year following the fiscal year in subparagraph (A).
(C) Sixty percent of the total cost to fund the program in the fiscal year following the fiscal year in subparagraph (B).
(D) Eighty percent of the total cost to fund the program in the fiscal year following the fiscal year in subparagraph (C).
(E) One hundred percent of the total cost to fund the program in the fiscal
year following the fiscal year in subparagraph (D).
(2) The total cost to fund the program each year shall be determined by the commission and shall be based on the number of students estimated to be eligible for a Middle Class Scholarship Program award for that year.
(d)
(e) (1) A Middle Class Scholarship Program award authorized pursuant to this article shall be defined as a full-time equivalent grant. An award to a part-time student shall be a fraction of
a full-time grant. For each academic year from 2013–14 to 2021–22, inclusive, an award to a part-time student shall be determined by the proportionate amount charged for systemwide tuition and fees. A part-time student shall not be discriminated against in the selection of Middle Class Scholarship Program awards. For purposes of this section, “full-time student” and “part-time student” have the same meaning as specified in subdivision (f) of Section 69432.7.
(2) Commencing with the 2022–23 academic year, an award to a student enrolled in six to eight semester units, inclusive, or the equivalent shall be no more than one-half of the award the student would have received had the student enrolled full time. An award to a student enrolled in 9 to 11 semester units, inclusive, or the equivalent shall be no more than three-quarters of the award the student would have received had the student enrolled full time.
