Bill Text: CA AB2787 | 2015-2016 | Regular Session | Amended
Bill Title: Student financial aid: Middle Class Scholarship Program: private nonprofit postsecondary educational institutions.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2787 Detail]
Download: California-2015-AB2787-Amended.html
BILL NUMBER: AB 2787 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 12, 2016
INTRODUCED BY Assembly Member Ch�vez
FEBRUARY 19, 2016
An act to amend Section 70022 Sections
70022 and 70023 of the Education Code, relating to
student financial aid. aid, and making an
appropriation therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 2787, as amended, Ch�vez. Student financial aid: Middle Class
Scholarship Program: private nonprofit postsecondary educational
institutions.
Under existing law, the Middle Class Scholarship Program provides
that, subject to an available and sufficient appropriation,
commencing with the 2014-15 academic year, an undergraduate student
enrolled at the University of California or the California State
University, and meeting certain requirements, is eligible for a
scholarship award that, combined with other federal, state, and
institutionally administered grants and fee waivers, totals up to 40%
of the systemwide tuition and fees. Under existing law, to receive
an award under the Middle Class Scholarship Program, a student is
required to have an annual household income that does not exceed
$150,000 as adjusted to reflect changes in the cost of living,
satisfy specified requirements for a Cal Grant award, be a California
resident or exempt from paying nonresident tuition, file specified
financial aid forms, timely apply for publicly funded student
financial aid for which he or she is eligible, maintain at least a
2.0 grade point average, be pursuing his or her first undergraduate
baccalaureate degree or be enrolled in a specified professional
teacher preparation program, and be enrolled at least part time.
Existing law transfers $159,000,000 from the General Fund to the
Middle Class Scholarship Fund, and appropriates that sum to the
Student Aid Commission for purposes of the scholarship program for
the 2017-18 fiscal year. year, and each
fiscal year thereafter.
Existing law requires the University of California and the
California State University, in order for students of their
respective segments to remain eligible to receive a scholarship award
under the Middle Class Scholarship Program, to not supplant their
respective institutional need-based grants with funds provided for
scholarships under this program, and to maintain their funding
amounts at a level that, at a minimum, is equal to the level
maintained for undergraduate students during the 2013-14 academic
year.
This bill would extend the Middle Class Scholarship Program to
undergraduate students who meet the requirements of the program and
are enrolled in participating private nonprofit
postsecondary educational institutions, as defined,
commencing with the 2017-18 academic year, as specified, but
the bill would not affect the statutory appropriation for the
program for the 2017-18 fiscal year that is referenced above.
specified. By expanding the appropriation described
above, the bill would make an appropriation. The bill would
subject participating private nonprofit postsecondary educational
institutions to the requirement to maintain its scholarship funding
levels, as referenced above.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 70022 of the Education Code is amended to read:
70022. (a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University,
the University of California, or, commencing with the 2017-18
academic year, a private nonprofit postsecondary educational
institution who meets the requirements of paragraph (2) is eligible
for a scholarship award as described in that paragraph.
(2) Each academic year, except as provided in paragraphs (3) and
(4), 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 of a
student of the California State University or the University of
California, or the tuition and mandatory fees of
or, with respect to a student of a private nonprofit
postsecondary educational institution, a scholarship award
calculated in accordance with paragraph (2) of subdivision (a) of
Section 70023, if all of the following requirements are met, to
the satisfaction of the commission, each academic year:
(A) 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 subparagraph 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.
(B) Beginning with awards distributed in the 2015-16 academic
year, 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 subparagraph 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.
(C) 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.
(D) The student is exempt from paying nonresident tuition, or
would be exempt if the student attended a public institution.
(E) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. The FAFSA must be submitted
or postmarked by no later than March 2. If the student is not able to
complete a FAFSA application, the student may satisfy this
subparagraph by submitting an application determined by the
commission to be equivalent to the FAFSA application for purposes of
this article by March 2.
(F) 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.
(G) 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.
(H) The student is pursuing his or her 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 California
Commission on Teacher Credentialing.
(I) The student is enrolled at least part time.
(3) (A) The percentage 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 of the
mandatory systemwide tuition and fees for an
academic year, 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 the 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 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).
(4) 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) In order for students enrolled in their respective segments to
remain eligible to receive a scholarship award under this article,
the University of California, the California State University, and a
participating private nonprofit postsecondary educational institution
shall not supplant their respective institutional need-based grants
with the funds provided for scholarships under this article, and
shall maintain their funding amounts at a level that, at a minimum,
is equal to the level maintained for undergraduate students during
the 2013-14 academic year.
(c) 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.
(d) 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, as determined by the proportionate amount charged for the
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.
(e) Section 70023 does not apply to a student attending a private
nonprofit postsecondary educational institution.
SEC. 2. Section 70023 of the Education
Code is amended to read:
70023. (a) (1) For each academic year, the
commission shall determine an amount sufficient, when combined with
other federal, state, or institutionally administered student grants
or fee waivers received by eligible students from other sources, to
provide scholarships to eligible students in the amounts described in
paragraphs (2) and (3) of subdivision (a) of Section 70022. The
University of California and the California State University shall
provide the commission with any financial aid data that are necessary
for the determination of these amounts.
(2) (A) Commencing with the 2017-18 academic year, a student who
attends a participating private nonprofit postsecondary educational
institution and meets the requirements of subdivision (a) of Section
70022 shall be eligible to receive up to 40 percent of the amount of
the maximum grant award for which that student would be eligible
under the Cal Grant Program established pursuant to Chapter 1.7
(commencing with Section 69430).
(B) For purposes of this paragraph, a "participating private
nonprofit postsecondary educational institution" includes only an
institution that meets both of the following requirements:
(i) It is a qualifying institution as defined in subdivision (l)
of Section 69432.7.
(ii) It informs the Student Aid Commission, in writing and in a
timely manner, that it chooses to participate in the scholarship
program established by this article.
(b) The commission shall annually determine if the amounts
appropriated under this section in each fiscal year are sufficient to
cover the costs of the scholarships as projected to be awarded
pursuant to the program. If those amounts are not sufficient for this
purpose, the scholarships shall be reduced proportionately by an
equal percentage for all recipients of scholarships under this
article.
(c) The commission may adopt regulations necessary to carry out
the purposes of this article under subdivision (b) as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of the Administrative Procedure Act, including Section
11349.6 of the Government Code, the adoption of those regulations
shall be deemed to be an emergency and necessary for the immediate
preservation of the public peace, health and safety, or general
welfare, notwithstanding subdivision (e) of Section 11346.1 of the
Government Code. Notwithstanding subdivision (e) of Section 11346.1
of the Government Code, any regulation adopted pursuant to this
section shall not remain in effect more than 180 days unless the
commission complies with all provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, as required by subdivision (e) of Section 11346.1 of
the Government Code.
(d) The unencumbered balance, as of June 30 of each fiscal year,
of the amount appropriated from the Middle Class Scholarship Fund
pursuant to paragraph (1) of subdivision (e) shall revert to the
General Fund.
(e) (1) Upon order of the Director of Finance, the following
amounts shall be transferred from the General Fund to the Middle
Class Scholarship Fund, and are hereby appropriated to the commission
for allocation pursuant to this article:
(A) For the 2014-15 fiscal year, one hundred seven million dollars
($107,000,000).
(B) For the 2015-16 fiscal year, eighty-two million dollars
($82,000,000).
(C) For the 2016-17 fiscal year, one hundred sixteen million
dollars ($116,000,000).
(D) For the 2017-18 fiscal year and for each fiscal year
thereafter, one hundred fifty-nine million dollars ($159,000,000).
(2) An annual appropriation to the commission is hereby
established in the amounts and for the fiscal years described in
paragraph (1) to carry out the purposes of this section and Section
70022.
(3) It is the intent of the Legislature that any savings realized
from changes made to the allocations under this subdivision by a bill
providing for appropriations related to the Budget Bill for the
2015-16 fiscal year shall be used to support higher education.
(4) The funds transferred and appropriated pursuant to paragraph
(1) shall only be available for encumbrance in the fiscal year in
which they are transferred, and the General Fund shall have no
liability or any obligation beyond the transfers explicitly
authorized in paragraph (1) unless a subsequent transfer or
allocation is required pursuant to statute.
(5) In any fiscal year, additional appropriations may be enacted
pursuant to statute to carry out the purposes of this article.
(6) (A) Beginning with the Governor's Budget proposal for the
2014-15 fiscal year, and in the Governor's Budget for each fiscal
year thereafter, the Department of Finance shall include a fund
condition statement for the Middle Class Scholarship Fund for the
fiscal year of the proposed budget and the two immediately preceding
fiscal years prepared in accordance with existing law.
(B) Upon order of the Director of Finance and commencing with the
2013-14 fiscal year, if the May Revision projects a budget deficit
for the next fiscal year, the amount specified in paragraph (1) for
the fiscal year for which the budget deficit is projected may be
reduced by up to 33 percent.
(f) Subject to an appropriation in the annual Budget Act for its
purposes, the commission may begin implementation of, and establish
outreach services relating to, this article.
