Bill Text: CA AB1314 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Law enforcement use of force settlements and judgements: reporting.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2020-07-02 - Re-referred to Com. on PUB. S. [AB1314 Detail]

Download: California-2019-AB1314-Amended.html

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Amended  IN  Assembly  April 22, 2019

Amended  IN  Assembly  March 14, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1314

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Introduced by Assembly Members Medina and McCarty Medina, McCarty, Quirk-Silva, and Voepel

February 22, 2019

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An act to amend Sections 69432.7, 69433.5, and 69433.6 of Sections 66021.2 and 69508.5 of, to add Section 70023.5 to, to add Article 9 (commencing with Section 69470) to Chapter 1.7 of, and to add Chapter 4 (commencing with Section 70200) to, Part 42 of Division 5 of Title 3 of, the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL'S DIGEST

AB 1314, as amended, Medina. Student financial aid: Cal Grant Reform Act.

Existing law establishes the Middle Class Scholarship Program, 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.

The Cal Grant program prohibits an applicant from receiving one or a combination of program awards in excess of the amount equivalent to the award level for a total of a 4-year period of full-time attendance in an undergraduate program, except as provided, and specifies that the aggregate amount students may receive in a 4-year period may not be increased as a result of accelerating progress to a degree by attending summer terms, sessions, or quarters. The program provides that Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of 4 years of full-time attendance in an undergraduate program, except as provided.

This bill would express legislative findings and declarations relating to the state’s student financial aid system. The bill would also express the intent of the Legislature to enact legislation, to be known as the Cal Grant Reform Act, to accomplish specified goals.

This bill would, except for students who have transferred to a 4-year higher education institution from a community college, make students who are eligible to receive a Cal Grant A award or Cal Grant B award eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for a total of 2 summer terms of up to 9 units of enrollment, or the quarter equivalent, per term for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution. For those students who have transferred to a 4-year qualifying institution from a community college, this bill would provide eligibility for one additional summer term of up to 9 units of enrollment, or the quarter equivalent. The bill would provide that Summer Cal Grant awards shall not be subject to or count against the 4 years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B award renewals. would enact the Cal Grant Reform Act, which would revise and recast the provisions establishing and governing the existing Cal Grant programs and the Middle Class Scholarship Program into a single Cal Grant Program. The bill would add an authorization for summer Cal Grants awards, as specified. These provisions would become operative on July 1, 2021, or on the date that regulations adopted by the commission implementing this bill may determine, whichever date is later. The bill would also make numerous conforming changes.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 (a) The Legislature finds and declares that California’s student financial aid system is overly complex and burdensome to students and families. While the intent of that system is to make college “access and affordability a guarantee to every qualified student,” it is outdated and needs to be completely reformed to better serve California’s low-income students.

(b) Therefore, it is the intent of the Legislature to enact legislation, to be known as the Cal Grant Reform Act, that will accomplish all of the following:

(1) Consolidate Cal Grant A, B, and C awards of the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program and the Middle Class Scholarship Program into one program.

(2) Remove or reduce grade point average, high school completion, and similar eligibility and access barriers in the current Cal Grant Program.

(3) Change the model of the Cal Grant Program to focus on the total cost of attendance, including maintaining full coverage of tuition and systemwide fees for public college and university students.

(4) Reinstate a formula for an annual adjustment to the maximum Cal Grant award for students who attend private nonprofit institutions.

(5) Support additional Cal Grant eligibility for students taking summer coursework.

SEC. 2.

 Section 66021.2 of the Education Code is amended to read:

66021.2.

 Consistent with the state’s historic commitment to provide educational opportunity by ensuring both student access to and selection of an institution of higher education for students with financial need, the long-term policy of the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 shall be as follows:

(a) Commencing with the 2001–02 academic year and every year thereafter, an applicant for a Cal Grant A or B award shall receive an award that is not in excess of the financial need amount determined by the Student Aid Commission pursuant to Section 69432.9 if he or she the applicant complies with all of the following requirements:

(1) Demonstrates financial need under the criteria adopted pursuant to Section 69432.9.

(2) Attains a grade point average, as defined in Section 69432.7, meeting the requirements of Chapter 1.7 (commencing with Section 69430) of Part 42.

(3) Complies with each of the eligibility criteria applicable to the type of Cal Grant award for which he or she the applicant is applying.

(b) (1) (A) The maximum Cal Grant A award for a student attending the University of California or the California State University shall equal the mandatory systemwide fees in the segment attended by the student.

(B) The maximum Cal Grant B award for a student who is attending the University of California, the California State University, or the California Community Colleges when not enrolled in upper division coursework as described in paragraph (2), shall equal the mandatory systemwide fees in the segment attended by the student, except for community college students who receive waivers from the Board of Governors of the California Community Colleges, plus the access award calculated as specified in Article 3 (commencing with Section 69435) of Chapter 1.7 of Part 42, except that in the first year of enrollment in a qualifying institution, the maximum award shall be only for the amount of the access award.

(2) (A) The maximum Cal Grant A award for a community college student enrolled in upper division coursework of a baccalaureate degree program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, shall equal the per unit fees charged for the upper division coursework for the academic term.

(B) The maximum Cal Grant B award for a community college student enrolled in upper division coursework of a baccalaureate degree program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, shall equal the per unit fees charged for the upper division coursework for the academic term, plus the access award calculated as specified in Article 3 (commencing with Section 69435) of Chapter 1.7 of Part 42.

(c) The maximum Cal Grant awards for students attending nonpublic institutions shall be as follows:

(1) The maximum Cal Grant A award shall equal the tuition award level established in the Budget Act of 2000, or the amount as adjusted in subsequent annual budget acts.

(2) The maximum Cal Grant B award shall equal the amount of the tuition award as established in the Budget Act of 2000, or the amount as adjusted in subsequent annual budget acts, plus the amount of the access costs specified in Section 69435, except that, in the first year of enrollment in a qualifying institution, the maximum award shall be only for the amount of the access award.

(d) Commencing with the 2000–01 academic year, and each academic year thereafter, the Cal Grant C award shall be utilized only for occupational or technical training.

(e) Commencing with the 2000–01 academic year, and each academic year thereafter, the Cal Grant T award shall be used only for one academic year of full-time attendance in a program of professional preparation that has been approved by the California Commission on Teacher Credentialing.

(f) An institution of higher education in this state that participates in the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program shall not reduce its level of per capita need-based institutional financial aid to undergraduate students, excluding loans, below the total level awarded in the 2000–01 academic year.

(g) The implementation of the policy set forth in this section shall maintain a balance between the state’s policy goals of ensuring student access to and selection of an institution of higher education for students with financial need and academic merit.

(h) It is the policy of the State of California that the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program supplement the federal Pell Grant program.

(i) An award under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program shall not guarantee admission to an institution of higher education or admission to a specific campus or program.

(j) This section shall become inoperative on July 1, 2021, or on the date that the regulations adopted by the commission pursuant to Section 70203 may determine, whichever date is later.

SEC. 3.

 Article 9 (commencing with Section 69470) is added to Chapter 1.7 of Part 42 of Division 5 of Title 3 of the Education Code, to read:

Article  9. Suspension of Chapter Operation

69470.

 This chapter shall become inoperative on July 1, 2021, or on the date that the regulations adopted by the commission pursuant to Section 70203 may determine, whichever date is later.

SEC. 4.

 Section 69508.5 of the Education Code is amended to read:

69508.5.

 (a) Notwithstanding any other law, and except as provided for in subdivision (c), a student who meets the requirements of subdivision (a) of Section 68130.5, or who meets equivalent requirements adopted by the Regents of the University of California, is eligible to apply for, and participate in, any student financial aid program administered by the State of California to the full extent permitted by federal law. The Legislature finds and declares that this section is a state law within the meaning of Section 1621(d) of Title 8 of the United States Code.

(b) Notwithstanding any other law, the Student Aid Commission shall establish procedures and forms that enable students who are exempt from paying nonresident tuition under Section 68130.5, or who meet equivalent requirements adopted by the regents, to apply for, and participate in, all student financial aid programs administered by the State of California to the full extent permitted by federal law.

(c)A student who is exempt from paying nonresident tuition under Section 68130.5 shall not be eligible for Competitive Cal Grant A and B Awards unless funding remains available after all California students not exempt pursuant to Section 68130.5 have received Competitive Cal Grant A and B Awards for which they are eligible.

(d)This section shall become operative on January 1, 2013.

(c) It is the intent of the Legislature that all forms of state-based aid in California be made equally available to students who are exempt, pursuant to Section 68130.5, from paying nonresident tuition and to all other students who qualify for state-based aid in this state.

SEC. 5.

 Section 70023.5 is added to the Education Code, immediately following Section 70023, to read:

70023.5.

 This article shall become inoperative on July 1, 2021, or on the date that the regulations adopted by the commission pursuant to Section 70203 may determine, whichever date is later.

SEC. 6.

 Chapter 4 (commencing with Section 70200) is added to Part 42 of Division 5 of Title 3 of the Education Code, to read:

CHAPTER  4. Cal Grant Reform Act

Article  1. General Provisions

70200.

 This chapter shall be known, and may be cited, as the Cal Grant Reform Act. This chapter continues, without interruption or diminution, the operation of the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established under Chapter 1.7 (commencing with Section 69430) as it read on January 1, 2020, until July 1, 2021, or the date determined pursuant to regulations adopted by the commission pursuant to Section 70203.

70201.

 (a) Consistent with the state’s historic commitment to provide educational opportunity by ensuring both student access to, and selection of, an institution of higher education for students with financial need, the long-term policy of the Cal Grant Program established pursuant to this chapter shall be as follows:

(1) Commencing with the 2021–22 academic year and every year thereafter, an applicant for a Cal Grant award shall receive an award for payment of tuition or student fees, nontuition costs, or both tuition or student fees and nontuition costs, that is not in excess of the financial need amount determined by the Student Aid Commission pursuant to Section 70203 if the applicant complies with both of the following requirements:

(A) Demonstrates financial need.

(B) Complies with each of the applicable eligibility criteria.

(2) (A) For the public segments of postsecondary education, the maximum Cal Grant award for all institutions shall be no more than the total of mandatory systemwide fees and other costs of attendance for the institution, and for a private nonprofit institution, no more than a specified sum or a percentage of total costs of attendance, not to exceed that total cost of attendance, as determined and annually adjusted as specified by the commission.

(B) As further specified in Section 70205, eligibility for all Cal Grants shall be need based, shall not exceed the calculated financial need of any individual applicant, and shall be determined by the commission based on consideration of all of the following sets of relevant factors:

(i) Circumstances of the household of the student, including determinations regarding the student’s financial independence, and the household’s size, configuration, income and asset levels, and any other circumstances the commission may deem appropriate. The commission shall consider the program income and asset ceilings for Cal Grants A, C, and T under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, as determined pursuant to paragraph (1) of subdivision (k) of Section 69432.7, as it read on January 1, 2020, as presumptively appropriate for the initial regulations adopted regarding determinations of Cal Grant eligibility under this chapter.

(ii) The costs of attendance, which may differ for each segment, for the nature of the coursework, and for location, and which may reflect or be adjusted for other factors that the commission may deem appropriate for consideration. In particular, this amount may be adjusted for other sources of tuition assistance or cost subsidy, including waivers of fees granted by the Board of Governors of the California Community Colleges, and other bases considered under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established under Chapter 1.7 (commencing with Section 69430), as it read on January 1, 2020.

(iii) Any other factor the commission shall deem relevant to determining an equitable award, including, but not necessarily limited to, a mechanism for fairly calculating an expected student contribution toward the costs of attendance.

(3) (A) Notwithstanding subparagraph (B) of paragraph (2), the commission’s regulations adopted pursuant to Section 70203 shall not reduce the amount of grants for which students who have received grants under Chapter 1.7 (commencing with Section 69430) or Article 22 (commencing with Section 70020) of Chapter 2 would have been eligible under those grant programs as they read on June 30, 2021, or as they read on the day prior to any later date that the commission determines to terminate the operation of those grant programs.

(B) An eligible student who satisfies the program income and asset ceilings for the Cal Grant A, C, and T Programs that existed under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, as determined pursuant to paragraph (1) of subdivision (k) of Section 69432.7, as it read on January 1, 2020, shall receive an award for all tuition and student fees for a public postsecondary educational institution.

(C) In addition to or instead of the award described in subparagraph (B), an eligible student, including a student who would have been eligible for an award under the Middle Class Scholarship Program, as specified in Section 70022 as it read on January 1, 2020, may receive a supplemental award, pursuant to a formula determined by the commission based on consideration of factors described in subparagraph (B) of paragraph (2).

(b) An institution of higher education in this state that participates in the Cal Grant Program shall not reduce its level of need-based institutional financial aid to undergraduate students, excluding loans, below the total level awarded in the academic year before July 1, 2021, or any later date the commission may determine to commence operation of its regulations pursuant to Section 70203. This subdivision shall not apply to institutions of higher education in any academic year in which state funding for this chapter is less than the previous academic year.

(c) The implementation of the policy set forth in this section shall maintain a balance between the state’s policy goals of ensuring student access to, and selection of, an institution of higher education for students with financial need.

(d) It is the policy of the State of California that the Cal Grant Program supplement the federal Pell Grant program.

(e) An award under the Cal Grant Program shall not guarantee admission to an institution of higher education or admission to a specific campus or program.

70202.

 As used in this chapter, the following terms, with the exception of “nontuition costs,” are defined as specified in Section 69432.7, as it read on January 1, 2020:

(a) “Academic year.”

(b) “Award year.”

(c) “College grade point average” and “community college grade point average.”

(d) “Commission.”

(e) “Enrollment status.”

(f) “Expected family contribution.”

(g) “Full time.”

(h) “High school grade point average.”

(i) “Instructional program of not less than one academic year.”

(j) “Instructional program of not less than two academic years.”

(k) “Nontuition costs” means all of a student’s costs of attendance other than tuition and student fees, as determined by the commission, including, but not limited to, books, transportation, housing, and personal costs.

(l) “Part time.”

(m) “Qualifying institution.”

(n) “Satisfactory academic progress.”

(o) “Summer term.”

70203.

 The commission shall adopt regulations necessary to implement this chapter, and these regulations shall become operative no sooner than July 1, 2021. Notwithstanding any other provision of law, the commission may adopt emergency regulations pursuant to Section 11346.1 of the Government Code in order to ensure that the program enacted by this chapter may function in its first academic year. Those emergency regulations shall be deemed necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code.

Article  2. Cal Grant Program Provisions

70205.

 Pursuant to the long-term policy of the Cal Grant Program established pursuant to Section 70201, the commission shall make awards under the Cal Grant Program for payment of tuition or student fees, nontuition costs, or both tuition or student fees and nontuition costs, in accordance with all of the following:

(a) The commission shall determine the maximum household income and asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program. The commission shall set these levels pursuant to income and asset ceiling amounts as defined and adopted in regulations by the commission for each academic year in view of the current costs of attendance at qualifying institutions and the availability of funding for purposes of this chapter for that academic year. The commission shall determine a reasonable student contribution based on appropriate factors, including, but not necessarily limited to, the student’s household income. In making determinations under this subdivision, the commission shall take into consideration the Cal Grant Program Income and Asset Ceilings for Cal Grant A, C, and T as specified in paragraph (1) of subdivision (k) of Section 69432.7, as it read on January 1, 2020.

(b) With the funds made available for purposes of this chapter, and in accordance with the long-term policy established under Section 70201, the commission shall determine the amounts of the Cal Grant Program awards to be made for that academic year.

(c) The commission shall determine the timelines and procedures for the application process for awards, as well as the timelines and procedures for the distribution of those awards, under this chapter. In determining those timelines and procedures, the commission shall take into consideration the relevant academic calendars of high schools and postsecondary educational institutions and shall ensure that students and their families have sufficient time to complete the application process and, once the results of that process are known, to make informed decisions about achieving the students’ educational goals with any available Cal Grant award.

(d) As a continuation of the Cal Grant C Program established under Article 6 (commencing with Section 69439) of Chapter 1.7, as it read on January 1, 2020, the commission shall develop and adopt criteria it deems appropriate in selecting students to receive Cal Grants for occupational or technical training pursuant to Section 70203, and shall give special consideration to the social and economic situations of the students applying for these grants, giving additional weight to disadvantaged applicants, applicants who face economic hardship, and applicants who face particular barriers to employment. Criteria to be considered for these purposes shall include, but are not necessarily limited to, both of the following:

(1) The factors considered pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 70201, including family income and household size and other relevant features of the applicant’s or the applicant’s parent’s household status, including whether the applicant is a single parent or child of a single parent.

(2) The employment status of the applicant and whether the applicant is unemployed, giving greater weight to the long-term unemployed.

70206.

 (a) As a condition for its voluntary participation in the Cal Grant Program, each Cal Grant participating institution shall annually report to the commission, and as further specified in an institutional participation agreement, both of the following for its undergraduate programs:

(1) Enrollment, persistence, and graduation data for all students, including aggregate information on Cal Grant recipients.

(2) The job placement rate and salary and wage information for each program that is either designed or advertised to lead to a particular type of job or advertised or promoted with a claim regarding job placement.

(b) The commission shall provide both of the following on its internet website:

(1) The information submitted by a Cal Grant participating institution pursuant to subdivision (a), which shall be made available in a searchable database.

(2) Other information and links that are useful to students and parents who are in the process of selecting a college or university. This information may include, but not necessarily be limited to, local occupational profiles available through the Employment Development Department’s Labor Market Information Data Library.

70207.

 To be eligible for a Cal Grant Program award under this chapter, a student shall be all of the following:

(a) A citizen of the United States, or an eligible noncitizen, as defined for purposes of financial aid programs under Title IV of the federal Higher Education Act of 1965, as amended from time to time (20 U.S.C. Sec. 1070 et seq.).

(b) A resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000). The recipient shall remain eligible for award renewal only if the recipient is a California resident, and is attending, and making satisfactory academic progress at, a qualifying institution, as determined by the commission.

(c) In compliance with all applicable Selective Service registration requirements.

(d) Not incarcerated.

(e) Not in default on any student loan within the meaning of Section 69507.5.

70208.

 (a) Except as otherwise provided in this section, Cal Grant awards may be renewed for a total of the equivalent of four years of full-time attendance in an undergraduate program, provided that minimum financial need continues to exist. Commencing with the 2021–22 academic year, the total number of years of eligibility for grants pursuant to this section shall be based on the student’s educational level in that student’s course of study as designated by the institution of attendance when the recipient initially receives payment for a grant. Years of eligibility used pursuant to Chapter 1.7 (commencing with Section 69430) shall count toward all eligibility limits in this chapter.

(b) Cal Grant awards for summer terms shall not be subject to, or count against, the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant award renewals, as described in subdivision (a).

(c) For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant awards may be renewed for a total of five years of full-time attendance, provided that minimum financial need continues to exist.

(d) (1) A Cal Grant Program award recipient who has completed a baccalaureate degree, and who has been admitted to, and is enrolled in, a program of professional teacher preparation at an institution approved by the Commission on Teacher Credentialing is eligible for, but not entitled to, renewal of a Cal Grant Program award for an additional year of full-time attendance, if minimum financial need continues to exist.

(2) Payment for an additional year is limited to only those courses required for an initial teaching authorization. An award made under this subdivision may not be used for other courses.

(3) A student’s Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an award for purposes of this subdivision.

(e) (1) For a current or former foster youth, Cal Grant awards may be renewed for a total of the equivalent of eight years of full-time attendance in an undergraduate program, provided that financial need continues to exist and other eligibility criteria are satisfied.

(2) For purposes of this subdivision, “current or former foster youth” means a person whose dependency was established or continued by the court on or after the date on which the person reached 13 years of age.

70208.5.

 (a) A student in either of the following categories who is eligible to receive a Cal Grant award shall also be eligible to receive a supplemental award for up to two summer terms, for up to nine semester units of enrollment, or the quarter equivalent, per term, in amounts to be determined by the commission, in addition to a Cal Grant award for other academic terms, in order to pursue timely completion of a baccalaureate degree:

(1) A student attending a public postsecondary educational institution.

(2) A student attending a private qualifying institution.

(b) A student who has transferred to a four-year qualifying institution from a community college shall be eligible for a Cal Grant award for one summer term in addition to those authorized in subdivision (a), under similar conditions to those the commission may determine pursuant to subdivision (a).

70209.

 (a) Cal Grant T awards shall be used only for tuition and student fees for a maximum of one academic year of full-time attendance in a program of professional preparation that has been approved by the Commission on Teacher Credentialing. The maximum award amount, and the total amount of funding, shall be determined each year in the annual Budget Act. As a condition of receiving a Cal Grant T award, a recipient shall teach for one year in a high-priority school, as defined in paragraph (3) of subdivision (c) of Section 44510, for each two thousand dollar ($2,000) incentive provided through the Cal Grant T Program, for a period not to exceed four years. Any recipient who fails to meet the recipient’s teaching obligation shall repay the Cal Grant T award.

(b) The commission shall allocate Cal Grant T awards using academic criteria or criteria related to past performance similar to those used under Chapter 1.7 (commencing with Section 69430) as it read on January 1, 2020.

70210.

 This article shall become operative on July 1, 2021, or on the date that regulations adopted by the commission pursuant to Section 70203 may determine, whichever date is later.

SEC. 2.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, technology, 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 Officers’ 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)(1)“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 dependents	$23,500	$23,500
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.

(2)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. Before 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 student aid programs:

(i)Federal Work-Study Program.

(ii)Federal Stafford Loan Program.

(iii)Federal 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 website of a California licensing or regulatory agency. For purposes of this paragraph, “provide” may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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 November 1 of each year the institution’s latest official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, 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.

(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.

(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 (F), 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 (F), 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)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, 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 subparagraph (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 academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).

(H)Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 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 be eligible for initial and renewal Cal Grant awards at the institution through the 2016–17 academic year.

(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 (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 (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 (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)The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.

(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.

(n)“Summer term” means one or more periods of instruction for credit in a baccalaureate degree program that occurs after the conclusion of the spring semester or quarter and before the commencement of the fall semester or quarter.

SEC. 3.Section 69433.5 of the Education Code is amended to read:

69433.5.

(a)Only a resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000), is eligible for an initial Cal Grant award. The recipient shall remain eligible for award renewal only if the recipient is a California resident, in attendance, and making satisfactory academic progress at a qualifying institution, as determined by the commission.

(b)A part-time student shall not be discriminated against in the selection of Cal Grant Program award recipients, and an award to a part-time student shall be approximately proportional to the time the student spends in the instructional program, as determined by the commission. A first-time Cal Grant Program award recipient who is a part-time student shall be eligible for a full-time renewal award if the recipient becomes a full-time student.

(c)Cal Grant Program awards shall be awarded without regard to race, religion, creed, sex, sexual orientation, gender identity, gender expression, or age.

(d)An applicant shall not receive more than one type of Cal Grant Program award concurrently. An applicant shall not:

(1)Receive one or a combination of Cal Grant Program awards in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, except as provided in subdivision (g) and Section 69433.6.

(2)Have obtained a baccalaureate degree before receiving a Cal Grant Program award.

(e)A Cal Grant Program award, except as provided in Section 69440, may only be used for educational expenses of a program of study leading directly to an undergraduate degree or certificate, or for expenses of undergraduate coursework in a program of study leading directly to a first professional degree, but for which no baccalaureate degree is awarded.

(f)(1)The commission shall, for students who accelerate college attendance, increase the amount of the award in proportion to the period of additional attendance resulting from attendance in classes that fulfill requirements or electives for graduation during summer terms, sessions, or quarters.

(2)In the aggregate, the total amount a student may receive in a four-year period may not be increased as a result of the student accelerating progress to a degree by attending summer terms, sessions, or quarters.

(g)(1)Notwithstanding paragraph (2) of subdivision (f), except as provided in paragraph (2), a student who is eligible to receive a Cal Grant A award or Cal Grant B award shall be eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for two summer terms of up to nine units of enrollment, or the quarter equivalent, per term for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution.

(2)Notwithstanding paragraph (2) of subdivision (f), a student who is eligible to receive a Cal Grant A award or Cal Grant B award who has transferred to a four-year qualifying institution from a community college shall be eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, and in addition to any summer terms pursuant to paragraph (1), for one summer term of up to nine units of enrollment, or the quarter equivalent.

(h)The commission shall notify Cal Grant award recipients of the availability of funding for the summer term, session, or quarter through prominent notice in financial aid award letters, materials, guides, electronic information, and other means that may include, but not necessarily be limited to, surveys, newspaper articles, or attachments to communications from the commission and any other published documents.

(i)The commission may require, by the adoption of rules and regulations, the production of reports, accounting, documents, or other necessary statements from the award recipient and the college or university of attendance pertaining to the use or application of the award.

(j)A Cal Grant Program award may be utilized only at a qualifying institution.

(k)A recipient who initially qualified for both a Cal Grant A award and a Cal Grant B award, and received a Cal Grant B award, may be awarded a renewal Cal Grant A award if that recipient subsequently became ineligible for a renewal Cal Grant B award and meets the applicable Cal Grant A financial need and income and asset criteria.

SEC. 4.Section 69433.6 of the Education Code is amended to read:

69433.6.

(a)(1)Except as otherwise provided in this section, Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of four years of full-time attendance in an undergraduate program, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist. Commencing with the 2001–02 academic year, the total number of years of eligibility for grants pursuant to this section shall be based on the student’s educational level in that student’s course of study as designated by the institution of attendance when the recipient initially receives payment for a grant.

(2)Summer term Cal Grant awards described in subdivision (g) of Section 69433.5 shall not be subject to or count against the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B award renewals, as described in paragraph (1).

(b)(1)Commencing with the 2014–15 academic year, a recipient who was determined to be ineligible for a renewal award in the 2012–13 or 2013–14 academic year because the recipient exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which the recipient was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a student’s remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce the student’s renewal award eligibility by one full-time equivalent year.

(2)Commencing with the 2015–16 academic year, a recipient who is determined to be ineligible for a renewal award because, during the immediately preceding academic year, the recipient exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which the recipient was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a student’s remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce the student’s renewal award eligibility by one full-time equivalent year.

(c)For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant A awards and Cal Grant B awards may be renewed for a total of five years of full-time attendance, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.

(d)(1)A Cal Grant Program award recipient who has completed a baccalaureate degree, and who has been admitted to and is enrolled in a program of professional teacher preparation at an institution approved by the California Commission on Teacher Credentialing is eligible for, but not entitled to, renewal of a Cal Grant Program award for an additional year of full-time attendance, if minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.

(2)Payment for an additional year is limited to only those courses required for an initial teaching authorization. An award made under this subdivision may not be used for other courses.

(3)A student’s Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an award for purposes of this subdivision.

(e)(1)For a current or former foster youth, Cal Grant B awards may be renewed for a total of the equivalent of eight years of full-time attendance in an undergraduate program, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.

(2)For purposes of this subdivision, “current or former foster youth” means a person whose dependency was established or continued by the court on or after the date on which the person reached 13 years of age.