Bill Text: CA SB15 | 2015-2016 | Regular Session | Amended


Bill Title: Postsecondary education: financial aid: Graduation

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Introduced) 2015-05-23 - Set for hearing May 28. [SB15 Detail]

Download: California-2015-SB15-Amended.html
BILL NUMBER: SB 15	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 25, 2015

INTRODUCED BY   Senators Block, De León, and Liu
   (Coauthors: Senators Allen, Beall, Hancock, Hill, Hueso, Lara,
Leno, Mitchell, Wieckowski, and Wolk)
    (   Coauthor:  
Assembly Member   Medina   )


                        DECEMBER 1, 2014

   An act to amend Sections 69432 and 69437 of, and to add Article
 23   24  (commencing with Section 
70030)   70045)  to Chapter 2 of Part 42 of
Division 5 of Title 3 of, the Education Code, relating to
postsecondary education.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 15, as amended, Block. Postsecondary education: financial
 aid.   aid: Graduation Incentive Grant program.
 
    The 
    (1)     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.
Existing law establishes the total number of Competitive Cal Grant A
and B awards granted annually at 22,500 and the maximum tuition award
amount for each Cal Grant A and B award for new students attending
private nonprofit postsecondary educational institution at $9,084 for
the 2014-15 award year and $8,056 for the 2015-16 award year and
each award year thereafter.
   This bill would increase the total number of Competitive Cal Grant
A and B awards granted annually to 30,000 and would increase the
maximum tuition award amount for Cal Grant A and B for students at
private nonprofit postsecondary  schools  
educational institutions  to $9,084 for the 2015-16 award year
and each award year thereafter. 
   (2) Existing law establishes the California State University,
under the administration of the Trustees of the California State
University, and the University of California, under the
administration of the Regents of the University of California, as 2
of the segments of public postsecondary education in this state.

   This bill would establish, commencing with the 2015-16 academic
year, the  Competitive   Graduation 
Incentive Grant  Award   program  to
provide  eligible   matriculating undergraduate 
students  of California State University  with financial
need attending a campus of the California State University with
 additional  financial aid  over a 3-year
period,   for up to 3 college years,  as specified.
 The bill would specify the eligibility criteria and the award
amounts of the Graduation Incentive Grant program. The bill would
require the California State University to make an annual report,
containing specified data about the program, to the Legislature. The
program would only be operative in a fiscal year if the Trustees of
the California State University determine that sufficient funding has
been provided for purposes of   the program for that fiscal
year in the annual Budget Act or another statute.  
   The bill would express the intent of the Legislature to
appropriate funds, for the 2015-16 fiscal year, to the University of
California to eliminate a specified tuition increase and to
appropriate funds to both the University of California and the
California State University to provide additional course offerings
and support services for students. 
   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.   (a)    The
Legislature finds and declares all of the following: 
   (1) According to the 
    (a)     The  Public Policy Institute
of  California,   California reports that, 
in 2025, 41 percent of jobs will require at least a bachelor's
degree. However, if current trends  persists,  
persist,  only 35 percent of working-age California adults will
have a bachelor's degree by 2025. Without more students entering and
completing a college degree, California will not meet workforce
demands. 
   (2) According to the  
   (b) State General Fund support for the California State University
and the University of California has dropped from 11 percent to 8
percent of the total state budget. 
    (c)     The  Public Policy Institute
of  California,   California reports that 
in-state full tuition at the University of California and the
California State University has risen more dramatically than at other
public universities in other states over the past decade. From 2004
to  2103,   2013,  the average tuition at
the University of California and the California State University has
more than doubled. California must make college more affordable and
accessible for all of its students. 
   (3)  According to 
    (d)     A report by  the Campaign for
College  Opportunity,   Opportunity confirms
that  an individual between 25 and 64 years of age who completes
at least a bachelor of arts degree can anticipate earning an
additional one million three hundred thousand dollars ($1,300,000) in
wages and salary. 
   (4) 
    (e)  According to the State  Higher  Education
Executive Officers, enrolling in 15 credit hours per term is the
number one predictor of student success. 
   (5) According to the Campaign for College Opportunity, if a
California State University student enrolls in less than 15 credits
per semester or takes time off, he or she will take longer than the
expected four years to earn a bachelor's degree that requires 120
credits.  
   (6) According to the Campaign for College Opportunity, the
increased cost of tuition to attend a California State University may
have caused more students to work, or work more hours, to pay for
school. Research  
   (f) College students who complete 30 semester units or the
equivalent per year can earn a 120-unit degree in four years. 
    (g)     Research  has demonstrated
that working behavior is a significant contributor to delayed time to
earning a degree. Essentially,  students are  
a student is  forced to choose between either working to earn
money or taking additional courses to progress in earning 
their   a  degree. 
   (b) It is the intent of the Legislature, in the 2015-16 fiscal
year, to appropriate funds to the Regents of the University of
California for the following purposes:  
   (1) Eliminate the five-percent tuition increase adopted by the
Regents of the University of California in November 2014. 

   (2) Provide additional course offerings for students to complete a
bachelor's degree in four years or less.  
   (3) Provide support services to students to aid them in completing
a bachelor's degree in four years of less. 
  SEC. 2.  Section 69432 of the Education Code is amended to read:
   69432.  (a) Cal Grant Program awards shall be known as "Cal Grant
A Entitlement Awards," "Cal Grant B Entitlement Awards," "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."

   (b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act. Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act.
   (c) (1) Notwithstanding subdivision (b), and subdivision (c) of
Section 66021.2, commencing with the 2013-14 award year, the maximum
tuition award amounts for Cal Grant A and B awards for students
attending private for-profit and nonprofit postsecondary educational
institutions shall be as follows:
   (A) Four thousand dollars ($4,000) for new recipients attending
private for-profit postsecondary educational institutions.
   (B) Nine thousand eighty-four dollars ($9,084) for new recipients
attending private nonprofit postsecondary educational institutions.
   (2) The renewal award amount for a student whose initial award is
subject to a maximum award amount specified in this subdivision shall
be calculated pursuant to paragraph (2) of subdivision (a) of
Section 69433.
   (3) Notwithstanding subparagraph (A) of paragraph (1), new
recipients attending private for-profit postsecondary educational
institutions that are accredited by the Western Association of
Schools and Colleges as of July 1, 2012, shall have the same maximum
tuition award amounts as are set forth in subparagraph (B) of
paragraph (1).
  SEC. 3.  Section 69437 of the Education Code is amended to read:
   69437.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, there shall be established the Competitive
Cal Grant A and B award program for students who did not receive a
Cal Grant A or B entitlement award pursuant to Article 2 (commencing
with Section 69434), Article 3 (commencing with Section 69435), or
Article 4 (commencing with Section 69436). Awards made under this
section are not entitlements. The submission of an application by a
student under this section shall not entitle that student to an
award. The selection of students under this article shall be
determined pursuant to subdivision (c) and other relevant criteria
established by the commission.
   (b) A total of 30,000 Cal Grant A and B awards shall be granted
annually under this article on a competitive basis for applicants who
meet the general eligibility criteria established in Article 1
(commencing with Section 69430) and the priorities established by the
commission pursuant to subdivision (c).
   (1) Fifty percent of the awards referenced in this subdivision are
available to all students, including California community college
students, who meet the financial need and academic requirements
established pursuant to this article. A student enrolling at a
qualifying baccalaureate degree granting institution shall apply by
the March 2 deadline. A California community college student is
eligible to apply at the March 2 or the September 2 deadline.
   (2) Fifty percent of the awards referenced in this subdivision are
reserved for students who will be enrolled at a California community
college. The commission shall establish a second application
deadline of September 2 for community college students to apply for
these awards effective with the fall term or semester of the 2001-02
academic year.
   (3) If any awards are not distributed pursuant to paragraphs (1)
and (2) upon initial allocation of the awards under this article, the
commission shall make awards to as many eligible students as
possible, beginning with the students with the lowest expected family
contribution and highest academic merit, consistent with the
criteria adopted by the commission pursuant to subdivision (c), as
practicable without exceeding an annual cumulative total of 30,000
awards.
   (c) (1) On or before February 1, 2001, acting pursuant to a public
hearing process that is consistent with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code), the
commission shall establish selection criteria for Cal Grant A and B
awards under the competitive program that give special consideration
to disadvantaged students, taking into consideration those financial,
educational, cultural, language, home, community, environmental, and
other conditions that hamper a student's access to, and ability to
persist in, postsecondary education programs.
   (2) Additional consideration shall be given to each of the
following:
   (A) Students who graduated from high school or its equivalent
prior to the 2000-01 academic year. This subparagraph shall not be
applicable after the 2004-05 academic year.
   (B) Students pursuing Cal Grant B awards who reestablish their
grade point averages.
   (C) Students who did not receive awards pursuant to Article 2
(commencing with Section 69434), Article 3 (commencing with Section
69435), or Article 4 (commencing with Section 69436).
   (d) All other students who meet the eligibility requirements
pursuant to Article 1 (commencing with Section 69430) are eligible to
compete for an award pursuant to this article.
  SEC. 4.  Article  23   24  (commencing
with Section  70030)   70045)  is added to
Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code,
to read:

      Article  23.   24.   
Competitive Incentive Grant Award   Graduation Incentive
Grant Program 


   70030.  For purposes of this article, "student with financial need"
means a student attending a campus of the California State
University who has demonstrated a need for a state, federal, or
institutional financial aid to pay for tuition.  
   70045.  For purposes of this article, the following shall apply:
   (a) "Academic discipline" is determined by grouping academic
programs by areas of study for California State University systemwide
reporting.
   (b) "Academic year" means the total of two consecutive semesters
or three quarters, commencing with the opening of the fall term. Each
semester or quarter is approximately the same length.
   (c) "Associate degree for transfer" means an associate degree
established according to the criteria established in Section 66746.
   (d) "Award year" means one college year, or the equivalent, of
attendance at a qualifying institution.
   (e) A "college year" is equivalent to the 12 consecutive months of
an academic year and the following summer.
   (f) "Cost of attendance" means the student's tuition and fees,
books and supplies, room, board, transportation expenses, and any
other student expenses used to calculate a student's financial need
for purposes of federal Title IV student aid programs.
   (g) "Expected family contribution" means a student's expected
family contribution calculated according to 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.)).
   (h) "Financial need" means a student's financial need calculated
pursuant to the federal financial need methodology (as established by
Title IV of the federal Higher Education Act of 1965, as amended (20
U.S.C. Sec. 1070 et seq.)).
   (i) "Satisfactory academic progress" means satisfaction of those
criteria required by applicable federal standards published in Title
34 of the Code of Federal Regulations. A participating institution
may adopt regulations defining "satisfactory academic progress" in a
manner that is consistent with those federal standards. 
    70031.   70046.   (a) Commencing with
the 2015-16 academic year, there shall be established the 
Competitive   Graduation  Incentive Grant 
Award   program  for  California  
State University matriculated undergraduate  students with
financial need.  The grant shall be awarded beginning in the
2015-16 academic year, and for each academic year thereafter. 
The purpose of the grant award is to provide those students with
additional financial aid to offset their total cost of education,
including the costs of housing, textbooks, and transportation. 
   (b) A matriculated undergraduate student attending the California
State University may receive a grant award under the Graduation
Incentive Grant program if the student satisfies all of the following
requirements:  
   (1) The student is a California resident or is exempt from paying
nonresident tuition under Section 68130.5.  
   (2) The student is determined by the participating institution to
have an expected family contribution of not more than twelve thousand
dollars ($12,000) after filing a Free Application for Federal
Student Aid or California Dream Application in a timely manner. 

   (3) The student maintains satisfactory academic progress at the
participating institution, as determined by the institution. 

   (4) The student is not incarcerated.  
   (5) The student is not in default on any student loan and has not
failed to repay a federal or state student grant where required to do
so.  
   (6) The student has enrolled in at least 12 semester units or the
equivalent in each term for which the grant is received.  
   (7) The student has a declared major.  
   (b) 
    (c)  The  Competitive   Graduation
 Incentive Grant Award   award  shall
be  allocated to a student   awarded annually to
an eligible matriculated undergraduate California State University
student  with financial need  over a three-year period
  for up to three college years,  as follows:
   (1) One thousand dollars ($1,000) if the student completes 30 
semester units or 45 quarter  units by the end of his or her
first  academic   college  year.
   (2) One thousand five hundred dollars ($1,500) if the student
completes 60  semester or 90 quarter  units by the end of
his or her second  academic   college 
year.
   (3) Two thousand dollars ($2,000) if the student completes 90 
semester units or 135 quarter  units by the end of his or her
third  academic   college  year. 
   (d) A student who transfers to the California State University
with an associate degree for transfer shall be eligible to receive a
Graduation Incentive Grant award in the first academic year of
enrollment at the university. A student who transfers to the
California State University without an associate degree for transfer
shall be eligible to receive a Graduation Incentive Grant upon
completion of his or her first college year at the university and the
requisite number of units, as indicated in subdivision (c). For
purposes of the grant award, the college year of a transfer student
shall be counted from that student's initial matriculation at a
postsecondary educational institution.  
   (e) (1) To the extent practicable, a Graduation Incentive Grant
award shall be awarded at the same time as a recipient's overall
financial aid package.  
   (2) The Graduation Incentive Grant shall be considered a
supplemental grant, and shall not supplant any other grant or
scholarship aid including, but not necessarily limited to, federal
grants, Cal Grant awards, institutional grants, merit-based
scholarships, and athletic scholarships.  
   (3) A Graduation Incentive Grant award, or a portion thereof,
shall not cause a student's total grant or scholarship aid, including
a grant received pursuant to this article, to exceed the total cost
of attendance for that student.  
   (4) A Graduation Incentive Grant award shall be awarded to an
eligible student on a year-to-year basis, contingent on the provision
of adequate state funding and the maintenance of that student's
eligibility. A student's receipt of a grant in one academic year
provides no assurance that the student will receive a grant in a
subsequent academic year.  
   (f) (1) Each campus of the California State University shall
administer the Graduation Incentive Grant program in accordance with
the criteria established in this section.  
   (2) The Trustees of the California State University may adopt
regulations to administer the Graduation Incentive Grant program
established pursuant to this article.  
   70047.  (a) On or before April 1, 2017, and on or before April 1
of each year thereafter, the California State University shall report
all of the following to the Legislature:
   (1) The number of students who successfully completed 30 semester
units or 45 quarter units, 60 semester units or 90 quarter units, 90
semester or 135 quarter units, and 120 semester or 180 quarter units
during the immediately preceding college year.
   (2) The number of first-time freshmen who successfully completed
30 semester or 45 quarter units during the immediately preceding
college year, and the number of first-time freshmen who enroll in the
subsequent college year with fewer than 30 semester or 45 quarter
units.
   (3) The number of transfer students who successfully qualified for
the Graduation Incentive Grant award, disaggregated by associate
degree for transfer recipients and students who transferred without
holding an associate degree for transfer.
   (4) The number of eligible students who successfully met the unit
completion requirements of the Graduation Incentive Grant program.
   (5) The average grade point average of Graduation Incentive Grant
award recipients, reported by college year.
   (6) Information reported pursuant to this section shall be
disaggregated by academic discipline, race, ethnicity, gender, and
socioeconomic status.
   (b) Reports made pursuant to this section shall comply with
Section 9795 of the Government Code.  
   70048.  This article shall not be operative in a fiscal year
unless the trustees determine that sufficient funding has been
provided for purposes of this article for that fiscal year in the
annual Budget Act or another statute. Any funding allocated for the
purpose of awarding Graduation Incentive Grant awards under this
article shall be considered supplemental to the operating budget of
the California State University. 
   SEC. 5.    It is the intent of the Legislature to do
both of the following to support higher education in California for
the 2015-16 fiscal year:  
   (a) Appropriate funds to the Regents of the University of
California for the 2015-16 fiscal year to eliminate the 5 percent
tuition increase adopted by the regents in November 2014.  
   (b) Appropriate funding to the University of California and the
California State University to do both of the following:  
   (1) Provide additional course offerings for students to complete a
bachelor's degree in four years or less.  
   (2) Provide support services to students to aid them in completing
a bachelor's degree in four years or less. 
                                              
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