Amended  IN  Assembly  April 18, 2024
Amended  IN  Assembly  March 14, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2507

Introduced by Assembly Member Friedman

February 13, 2024

An act to add and repeal Article 17 (commencing with Section 69850) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, relating to student financial aid.


LEGISLATIVE COUNSEL'S DIGEST


AB 2507, as amended, Friedman. Student financial aid: Students at Risk of Homelessness Emergency Pilot Program.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
Existing law establishes the University of California, under the administration of the Regents of the University of California, as one of the segments of public postsecondary education in this state. The University of California provides instruction and performs research at the 10 campuses it operates and maintains in Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz.
Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of postsecondary education in the state. The California State University comprises 23 institutions of higher education located throughout the state, including California State University, Northridge.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. The board of governors appoints the Chancellor of the California Community Colleges to serve as the segment’s chief executive officer. The segment comprises 73 community college districts and a total of 116 community colleges throughout the state. One of these colleges is Glendale Community College.
This bill, until January 1, 2029, would establish the Students at Risk of Homelessness Emergency Pilot Program under the administration of the commission to award interest-free loans for housing and college attendance costs to eligible undergraduate students attending the University of California, Los Angeles, the California State University, Northridge, and Glendale Community College who demonstrate financial need, as defined. The bill would require the commission to enter into a contract with a nonprofit organization that has existed for more than 100 50 years and operates an interest-free loan program remotely in 3 or more counties virtually in the state for the nonprofit organization to award loans to eligible students. The bill would create the Emergency Students Facing Housing Crisis and Homelessness Revolving Fund as the initial depository of all moneys appropriated, donated, or otherwise received for the program, and upon appropriation by the Legislature, would require the commission to distribute moneys in the fund to the nonprofit organization to award loans to eligible students. The bill would require the nonprofit organization to annually report to the commission the number of students who qualified for a loan and the number of students awarded a loan. The bill would require the commission to submit an annual report to the Legislature that includes this information.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 (a) The Legislature recognizes the crushing burden of student debt on hundreds of thousands of students and graduates, the need to financially support California students who demonstrate financial need, as defined in Section 69851 of the Education Code, without onerous interest payments accelerating the debt crisis, and the lack of state budget resources to fully fund the needs of California students with grants for housing and college attendance costs.
(b) It is the intent of this act to award loans for housing and college attendance costs to students attending the University of California, Los Angeles, the California State University, Northridge, and Glendale Community College who demonstrate financial need, as defined in Section 69851 of the Education Code.

SEC. 2.

 Article 17 (commencing with Section 69850) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:
Article  17. Students at Risk of Homelessness Emergency Pilot Program

69850.
 This article shall be known, and may be cited, as the Students at Risk of Homelessness Emergency Pilot Program.

69851.
 As used in this article, unless the context requires otherwise, the following definitions apply:
(a) “Financial need” means a student who meets any one or combination of the following:
(1) Is eligible for a federal Pell Grant.
(2) Has an annual expected family contribution that is equal to, or less than, twenty thousand dollars ($20,000).
(3) Is facing eviction.
(4) Is homeless.
(5) Is food insecure.
(b) “Fund” means the Emergency Students Facing Housing Crisis and Homelessness Revolving Fund established in Section 69853.
(c) “Institution” means the University of California, Los Angeles, the California State University, Northridge, and Glendale Community College.
(d) “Loan” means a loan awarded to a student under the program.
(e) “Nonprofit organization” means a nonprofit organization that has existed for more than 100 50 years and operates an interest-free loan program remotely in three or more counties virtually in the state on and before January 1, 2025.
(f) “Program” means the Students at Risk of Homelessness Emergency Pilot Program established in Section 69852.

69852.
 (a) The Students at Risk of Homelessness Emergency Pilot Program is hereby established under the administration of the commission to award loans for housing and college attendance costs to students attending institutions who demonstrate financial need.
(b) The commission shall enter into a contract with a nonprofit organization for the organization to award loans to eligible students. The contract may include a provision that authorizes 2.5 percent of the funds provided to the nonprofit organization for purposes of this article to be used by the nonprofit organization for its administrative costs under the program for each year that the program is operational.
(c) A student attending an institution may be awarded a loan if the student satisfies both of the following requirements:
(1) Demonstrates financial need.
(2) Is enrolled at least part-time part time in an undergraduate program, or a lower division community college program, at an institution.
(d) The nonprofit organization contracted pursuant to subdivision (b) shall be responsible for all of the following:
(1) Upon the receipt of funds from the commission for purposes of this article, determining student eligibility for a loan.
(2) Determining the amount of a loan. The amount of a loan shall not exceed a reasonable estimate of housing and college attendance costs, as determined by the nonprofit organization, and shall be based on the financial need of the student.
(3) Awarding loans to students.
(e) A loan awarded to an eligible student pursuant to this article shall have no interest rate. A student shall not be charged a fee on a loan awarded pursuant to this article or to participate in the program.
(f) The standard repayment term for a loan awarded under the program shall be no more than 10 years, as determined in the contract entered into pursuant to subdivision (b). The standard commencement and rate of loan repayment shall be determined in the contract entered into pursuant to subdivision (b).
(g) A student who is in default on any federal student loan, state student loan, or student loan issued by the segment or the institution is not eligible for a loan under the program.
(h) (1) A student shall confirm in writing that the student satisfies all of the requirements for loan eligibility.
(2) A student seeking a loan shall authorize the nonprofit organization contracted pursuant to subdivision (b) to access any information pertinent to certifying that the student meets all of the requirements for loan eligibility.
(3) The nonprofit organization contracted pursuant to subdivision (b) shall certify that the student meets all of the requirements for loan eligibility before awarding a loan to the student.
(i) (1) The nonprofit organization contracted pursuant to subdivision (b) shall submit an annual report to the commission that includes, but is not limited to, both of the following for the previous award year:
(A) The number of students who qualified for a loan.
(B) The number of students awarded a loan.
(2) The commission shall submit an annual report to the Legislature, pursuant to Section 9795 of the Government Code, that includes the information submitted pursuant to paragraph (1).
(3) The information in paragraphs (1) and (2) shall be disaggregated by institution and the age, gender, race, and ethnicity of students.

69853.
 The Emergency Students Facing Housing Crisis and Homelessness Revolving Fund is hereby created as the initial depository of all moneys appropriated, donated, or otherwise received for the program. Upon appropriation by the Legislature, the commission shall distribute moneys in the fund to the nonprofit organization contracted pursuant to subdivision (b) of Section 69852 to award loans to students.

69854.
 This article shall remain in effect only until January 1, 2029, and as of that date is repealed.