Bill Text: CA SB1149 | 2013-2014 | Regular Session | Amended
Bill Title: Cal Grant Program: renewal awards
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-05-23 - Held in committee and under submission. [SB1149 Detail]
Download: California-2013-SB1149-Amended.html
BILL NUMBER: SB 1149 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 7, 2014
INTRODUCED BY Senator Galgiani
FEBRUARY 20, 2014
An act to amend Section 69432.7 of the Education Code, relating to
student financial aid.
LEGISLATIVE COUNSEL'S DIGEST
SB 1149, as amended, Galgiani. Cal Grant Program: renewal awards
The Cal Grant Program establishes the Cal Grant A and B
Entitlement awards, the California Community College Transfer
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.
Under the program, until July 1, 2013, an institution otherwise
ineligible for initial and renewal Cal Grant awards for specified
reasons was eligible for renewal Cal Grant awards, reduced as
specified, for recipients who were enrolled in the institution during
the academic year before the academic year for which the institution
is ineligible and who chose to renew their Cal Grant awards to
attend the institution.
Existing law requires the commission to certify by October 1 of
each year a qualifying institution's latest 3-year cohort default
rate and graduation rate as most recently reported by the United
States Department of Education. Existing law provides that, for
purposes of the 2012-13 academic year, and every academic year
thereafter, an otherwise qualifying institution with a 3-year cohort
default rate that is equal to or greater than 15.5% is ineligible for
initial and renewal Cal Grant awards at the institution. Existing
law provides that an otherwise qualifying institution is ineligible
for an initial or renewal Cal Grant award at the institution if the
institution has a graduation rate of 30% or less for students taking
150% or less of the expected time to complete degree requirements, as
specified, with certain exceptions.
This bill would make a recipient again eligible to renew
a Cal Grant award, without reduction, if the student was enrolled in
an institution ineligible for one of these reasons during the last
academic year before the institution became ineligible
require the commission to establish an appeal process for an
otherwise qualifying institution that fails to satisfy the 3
-year cohort default rate and graduation rate requirements, and
would make nonsubstantive and conforming changes .
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 69432.7 of the Education Code is amended to
read:
69432.7. As used in this chapter, the following terms have the
following meanings:
(a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
(b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
(c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
(d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
(e) "Commission" means the Student Aid Commission.
(f) "Enrollment status" means part- or full-time status.
(1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
(2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
(g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
(h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
(i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
(j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
(k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by the
commission for the 2001-02 academic year, which shall be set pursuant
to the following income and asset ceiling amounts:
CAL GRANT PROGRAM INCOME CEILINGS
+--------------------+--------------+--------------+
| Cal |
| Grant |
| A, |
| C, and T Cal Grant B |
+--------------------+--------------+--------------+
|Dependent and Independent students with |
|dependents* |
+--------------------+--------------+--------------+
|Family Size |
+--------------------+--------------+--------------+
| Six or more $74,100 $40,700 |
+--------------------+--------------+--------------+
| Five $68,700 $37,700 |
+--------------------+--------------+--------------+
| Four $64,100 $33,700 |
+--------------------+--------------+--------------+
| Three $59,000 $30,300 |
+--------------------+--------------+--------------+
| Two $57,600 $26,900 |
+--------------------+--------------+--------------+
|Independent |
+--------------------+--------------+--------------+
| Single, no $23,500 $23,500 |
|dependents |
+--------------------+--------------+--------------+
| Married $26,900 $26,900 |
+--------------------+--------------+--------------+
*Applies to independent students with dependents other than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS
+----------------------+-------------+-------------+
| Cal Grant |
| A, |
| C, and T Cal Grant B |
+----------------------+-------------+-------------+
|Dependent** $49,600 $49,600 |
+----------------------+-------------+-------------+
|Independent $23,600 $23,600 |
+----------------------+-------------+-------------+
**Applies to independent students with dependents other than a
spouse.
The commission shall annually adjust the maximum household income
and asset levels based on 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. The maximum
household income and asset levels applicable to a renewing recipient
shall be the greater of the adjusted maximum household income and
asset levels or the maximum household income and asset levels at the
time of the renewing recipient's initial Cal Grant award. For a
recipient who was initially awarded a Cal Grant for an academic year
before the 2011-12 academic year, the maximum household income and
asset levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal recipient
who qualifies to be considered under the simplified needs test
established by federal law for student assistance shall be presumed
to meet the asset level test under this section. Prior to disbursing
any Cal Grant funds, a qualifying institution shall be obligated,
under the terms of its institutional participation agreement with the
commission, to resolve any conflicts that may exist in the data the
institution possesses relating to that individual.
(l) (1) "Qualifying institution" means an institution that
complies with paragraphs (2) and (3) and is any of the following:
(A) A California private or independent postsecondary educational
institution that participates in the Pell Grant Program and in at
least two of the following federal campus-based student aid programs:
(i) Federal Work-Study.
(ii) Perkins Loan Program.
(iii) Supplemental Educational Opportunity Grant Program.
(B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
(C) A California public postsecondary educational institution.
(2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
(3) (A) The commission shall certify by October 1 of each year the
institution's latest three-year cohort default rate and graduation
rate as most recently reported by the United States Department of
Education.
(B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the institution , except as provided in
subparagraph (F) .
(C) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and every
year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the institution , except as provided in
subparagraph (F) .
(D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or (G), as applicable.
(ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or (G), as applicable, and the correction
or revision results in the institution's three-year cohort default
rate or graduation rate satisfying those requirements, that
institution shall immediately regain its eligibility for the academic
year to which the corrected or revised three-year cohort default
rate or graduation rate would have been applied.
(E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally eligible
to participate in the Cal Grant Program until a three-year cohort
default rate or graduation rate has been reported for the institution
by the United States Department of Education.
(F) An institution that is ineligible for initial and renewal Cal
Grant awards at the institution under subparagraph (B), (C), or (G)
shall be eligible for renewal Cal Grant awards for recipients who
were enrolled in the ineligible institution during the academic year
before the academic year for which the institution is ineligible and
who choose to renew their Cal Grant awards to attend the ineligible
institution.
(G)
( F) For purposes of the 2012-13 academic
year, and every academic year thereafter, an otherwise qualifying
institution with a graduation rate of 30 percent or less for students
taking 150 percent or less of the expected time to complete degree
requirements, as reported by the United States Department of
Education and as certified by the commission pursuant to subparagraph
(A), shall be ineligible for initial and renewal Cal Grant awards at
the institution, except as provided for in subparagraphs
(F) and (I) subparagraph (H) .
(H)
( G) Notwithstanding any other law, the
requirements of this paragraph shall not apply to institutions with
40 percent or less of undergraduate students borrowing federal
student loans, using information reported to the United States
Department of Education for the academic year two years before the
year in which the commission is certifying the three-year cohort
default rate or graduation rate pursuant to subparagraph (A).
(I)
( H) Notwithstanding subparagraph
(G) (F) , an otherwise qualifying institution
with a three-year cohort default rate that is less than 10 percent
and a graduation rate above 20 percent for students taking 150
percent or less of the expected time to complete degree requirements,
as certified by the commission pursuant to subparagraph (A), shall
remain eligible for initial and renewal Cal Grant awards at the
institution through the 2016-17 academic year.
(J)
(I) The commission shall do all of the following:
(i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or (G)
(F) that the institution is ineligible for initial Cal
Grant awards for the academic year for which the student received an
initial Cal Grant award.
(ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or (G) (F)
that the student's Cal Grant award will be reduced by 20
percent, or eliminated, as appropriate, if the student attends the
ineligible institution in an academic year in which the institution
is ineligible.
(iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial
and renewal Cal Grant awards at the institution under subparagraph
(C) or (G) (F) with a complete list of
all California postsecondary educational institutions at which the
student would be eligible to receive an unreduced Cal Grant award.
(iv) (I) Establish an appeal process for an otherwise qualifying
institution that fails to satisfy the three-year cohort default rate
and graduation rate requirements in subparagraphs (C) and (F),
respectively.
(II) In assessing whether to grant an appeal, the commission may
consider cohort size and the likelihood of an otherwise qualifying
institution regaining eligibility in the academic year next following
the institution's loss of eligibility.
(K)
( J) By January 1, 2013, the Legislative
Analyst shall submit to the Legislature a report on the
implementation of this paragraph. The report shall be prepared in
consultation with the commission, and shall include policy
recommendations for appropriate measures of default risk and other
direct or indirect measures of quality or effectiveness in
educational institutions participating in the Cal Grant Program, and
appropriate scores for those measures. It is the intent of the
Legislature that appropriate policy and fiscal committees review the
requirements of this paragraph and consider changes thereto.
(m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards.
