Bill Text: CA AB1590 | 2013-2014 | Regular Session | Chaptered
Bill Title: Student financial aid: Cal Grant Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-27 - Chaptered by Secretary of State - Chapter 667, Statutes of 2014. [AB1590 Detail]
Download: California-2013-AB1590-Chaptered.html
BILL NUMBER: AB 1590 CHAPTERED
BILL TEXT
CHAPTER 667
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2014
APPROVED BY GOVERNOR SEPTEMBER 27, 2014
PASSED THE SENATE AUGUST 18, 2014
PASSED THE ASSEMBLY AUGUST 20, 2014
AMENDED IN SENATE AUGUST 13, 2014
AMENDED IN ASSEMBLY MARCH 24, 2014
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 3, 2014
An act to amend Section 69432.7 of the Education Code, relating to
student financial aid.
LEGISLATIVE COUNSEL'S DIGEST
AB 1590, Wieckowski. Student financial aid: Cal Grant Program.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant
Program (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, as defined. The existing
definition of a qualifying institution includes, among other
institutions, California private or independent postsecondary
educational institutions that participate in the Pell Grant Program
and in at least 2 of the following federal campus-based programs:
federal Work-Study, the Perkins Loan Program, and the Supplemental
Education Opportunity Grant Program.
Existing law requires the commission to certify by October 1 of
each year a qualifying institution's latest 3-year cohort default
rate and graduation rate as most recently reported by the United
States Department of Education.
This bill would express findings and declarations, would delete
"campus-based" from the description of the federal programs
referenced above in connection with the California private or
independent postsecondary educational institutions that are defined
as qualifying institutions, and would replace the Perkins Loan
Program with the Stafford Loan Program for purposes of qualifying a
private or independent postsecondary educational institution for Cal
Grants Awards. The bill would change the date the commission needs to
certify the institution's latest official 3-year cohort default rate
and graduation rate to November 1, and would define the graduation
rate of a qualifying institution to be the percentage of full-time,
first-time degree- or certificate-seeking undergraduate students who
graduate in 150% or less of the expected time to complete the degree
requirements as most recently reported by the United States
Department of Education. The bill would also delete obsolete
provisions and make conforming and nonsubstantive changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The Budget Act of 2011 and the Budget Act of 2012 made
significant statutory changes to the Cal Grant Program, refining
institutional eligibility based on cohort default rates and
graduation rates, which measure institutional quality.
(b) College institutions with a substantial proportion of students
taking out federal student loans and with a high percentage of those
borrowers defaulting on the student loans no longer qualify to
participate in the Cal Grant Program. The Budget Act of 2012 further
tightened the loan default limit, and added a minimum graduation rate
that institutions must satisfy to remain eligible to participate in
the Cal Grant Program.
(c) Due to a lack of clarity, there is confusion about the
implementation by the Student Aid Commission of these statutory
changes.
(d) On January 7, 2013, the Legislative Analyst's Office issued a
report entitled, "An Analysis of New Cal Grant Eligibility Rules,"
which analyzed the new eligibility rules and offered several findings
and recommendations for clarifying existing statute.
(e) Clarifying these provisions going forward will avoid further
confusion and ensure consistency in the administration of the Cal
Grant Program.
SEC. 2. Section 69432.7 of the Education Code, as amended by
Section 2 of Chapter 34 of the Statutes of 2014, is amended to read:
69432.7. As used in this chapter, the following terms have the
following meanings:
(a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
(b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
(c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
(d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
(e) "Commission" means the Student Aid Commission.
(f) "Enrollment status" means part- or full-time status.
(1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
(2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
(g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
(h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, Reserve 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 $23,500 $23,500 |
|dependents |
+--------------------+--------------+--------------+
| Married $26,900 $26,900 |
+--------------------+--------------+--------------+
*Applies to independent students with dependents other than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS
+----------------------+-------------+-------------+
| Cal Grant |
| A, |
| C, and T Cal Grant B |
+----------------------+-------------+-------------+
|Dependent** $49,600 $49,600 |
+----------------------+-------------+-------------+
|Independent $23,600 $23,600 |
+----------------------+-------------+-------------+
**Applies to independent students with dependents other than a
spouse.
(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 Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
(3) (A) The commission shall certify by 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.
(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.
