California Legislature—2015–16 Regular Session

Assembly BillNo. 573


Introduced by Assembly Member Medina

February 24, 2015


An act to amend Section 69432.7 of the Education Code, relating to higher education.

LEGISLATIVE COUNSEL’S DIGEST

AB 573, as introduced, Medina. Student financial aid: Cal Grant Program: Student Aid Commission.

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 Cal Grant 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 requires the Student Aid Commission to do certain things, including notifying all Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards that the institution is ineligible for initial Cal Grant awards for the academic year for which the student received an initial Cal Grant award.

This bill would require the commission to establish a complete listing of California postsecondary educational institutions and identify which institutions are eligible and ineligible for participation in the Cal Grant Program. The bill would require the commission to make this information readily available on its Internet Web site.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 69432.7 of the Education Code is
2amended to read:

3

69432.7.  

As used in this chapter, the following terms have the
4following meanings:

5(a) An “academic year” is July 1 to June 30, inclusive. The
6starting date of a session shall determine the academic year in
7which it is included.

8(b) “Access costs” means living expenses and expenses for
9transportation, supplies, and books.

10(c) “Award year” means one academic year, or the equivalent,
11of attendance at a qualifying institution.

12(d) “College grade point average” and “community college
13grade point average” mean a grade point average calculated on the
14basis of all college work completed, except for nontransferable
15units and courses not counted in the computation for admission to
16a California public institution of higher education that grants a
17baccalaureate degree.

18(e) “Commission” means the Student Aid Commission.

19(f) “Enrollment status” means part- or full-time status.

20(1) “Part time,” for purposes of Cal Grant eligibility, means 6
21to 11 semester units, inclusive, or the equivalent.

22(2) “Full time,” for purposes of Cal Grant eligibility, means 12
23or more semester units or the equivalent.

24(g) “Expected family contribution,” with respect to an applicant,
25shall be determined using the federal methodology pursuant to
26subdivision (a) of Section 69506 (as established by Title IV of the
27 federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
281070 et seq.)) and applicable rules and regulations adopted by the
29commission.

30(h) “High school grade point average” means a grade point
31average calculated on a 4.0 scale, using all academic coursework,
32for the sophomore year, the summer following the sophomore
33year, the junior year, and the summer following the junior year,
34excluding physical education, Reserve Officers’ Training Corps
35(ROTC), and remedial courses, and computed pursuant to
P3    1regulations of the commission. However, for high school graduates
2who apply after their senior year, “high school grade point average”
3includes senior year coursework.

4(i) “Instructional program of not less than one academic year”
5means a program of study that results in the award of an associate
6or baccalaureate degree or certificate requiring at least 24 semester
7units or the equivalent, or that results in eligibility for transfer from
8a community college to a baccalaureate degree program.

9(j) “Instructional program of not less than two academic years”
10means a program of study that results in the award of an associate
11or baccalaureate degree requiring at least 48 semester units or the
12equivalent, or that results in eligibility for transfer from a
13community college to a baccalaureate degree program.

14(k) (1) “Maximum household income and asset levels” means
15the applicable household income and household asset levels for
16participants, including new applicants and renewing recipients, in
17the Cal Grant Program, as defined and adopted in regulations by
18the commission for the 2001-02 academic year, which shall be
19set pursuant to the following income and asset ceiling amounts:


20
21

 

CAL GRANT PROGRAM INCOME CEILINGS

P3   23P3    2P3    8

 

 

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  

P3    2P3    8

 

38*Applies to independent students with dependents other than a
39spouse.

 

CAL GRANT PROGRAM ASSET CEILINGS

P3    8

 

 

Cal Grant A,
C, and T

Cal Grant B


Dependent**   


$49,600  


$49,600  

Independent   

$23,600  

$23,600  

 

9**Applies to independent students with dependents other than a
10spouse.

11

12(2) The commission shall annually adjust the maximum
13household income and asset levels based on the percentage change
14in the cost of living within the meaning of paragraph (1) of
15subdivision (e) of Section 8 of Article XIII B of the California
16Constitution. The maximum household income and asset levels
17applicable to a renewing recipient shall be the greater of the
18adjusted maximum household income and asset levels or the
19maximum household income and asset levels at the time of the
20renewing recipient’s initial Cal Grant award. For a recipient who
21was initially awarded a Cal Grant for an academic year before the
222011-12 academic year, the maximum household income and asset
23levels shall be the greater of the adjusted maximum household
24income and asset levels or the 2010-11 academic year maximum
25household income and asset levels. An applicant or renewal
26recipient who qualifies to be considered under the simplified needs
27test established by federal law for student assistance shall be
28presumed to meet the asset level test under this section. Before
29disbursing any Cal Grant funds, a qualifying institution shall be
30obligated, under the terms of its institutional participation
31agreement with the commission, to resolve any conflicts that may
32exist in the data the institution possesses relating to that individual.

33(l) (1) “Qualifying institution” means an institution that
34complies with paragraphs (2) and (3) and is any of the following:

35(A) A California private or independent postsecondary
36educational institution that participates in the Pell Grant Program
37and in at least two of the following federal student aid programs:

38(i) Federal Work-Study Program.

39(ii) Federal Stafford Loan Program.

P5    1(iii) Federal Supplemental Educational Opportunity Grant
2Program.

3(B) A nonprofit institution headquartered and operating in
4California that certifies to the commission that 10 percent of the
5institution’s operating budget, as demonstrated in an audited
6financial statement, is expended for purposes of institutionally
7funded student financial aid in the form of grants, that demonstrates
8to the commission that it has the administrative capacity to
9administer the funds, that is accredited by the Western Association
10of Schools and Colleges, and that meets any other state-required
11criteria adopted by regulation by the commission in consultation
12with the Department of Finance. A regionally accredited institution
13that was deemed qualified by the commission to participate in the
14Cal Grant Program for the 2000-01 academic year shall retain its
15eligibility as long as it maintains its existing accreditation status.

16(C) A California public postsecondary educational institution.

17(2) (A) The institution shall provide information on where to
18access California license examination passage rates for the most
19recent available year from graduates of its undergraduate programs
20leading to employment for which passage of a California licensing
21 examination is required, if that data is electronically available
22through the Internet Web site of a California licensing or regulatory
23agency. For purposes of this paragraph, “provide” may exclusively
24include placement of an Internet Web site address labeled as an
25access point for the data on the passage rates of recent program
26graduates on the Internet Web site where enrollment information
27is also located, on an Internet Web site that provides centralized
28admissions information for postsecondary educational systems
29with multiple campuses, or on applications for enrollment or other
30program information distributed to prospective students.

31(B) The institution shall be responsible for certifying to the
32commission compliance with the requirements of subparagraph
33(A).

34(3) (A) The commission shall certify by November 1 of each
35year the institution’s latest official three-year cohort default rate
36and graduation rate as most recently reported by the United States
37Department of Education. For purposes of this section, the
38graduation rate is the percentage of full-time, first-time degree or
39certificate-seeking undergraduate students who graduate in 150
40percent or less of the expected time to complete degree
P6    1requirements as most recently reported publicly in any format,
2including preliminary data records, by the United States
3Department of Education.

4(B) For purposes of the 2011-12 academic year, an otherwise
5qualifying institution with a three-year cohort default rate reported
6by the United States Department of Education that is equal to or
7greater than 24.6 percent shall be ineligible for initial and renewal
8Cal Grant awards at the institution.

9(C) For purposes of the 2012-13 academic year, and every
10academic year thereafter, an otherwise qualifying institution with
11a three-year cohort default rate that is equal to or greater than 15.5
12percent, as certified by the commission on October 1, 2011, and
13every year thereafter, shall be ineligible for initial and renewal Cal
14Grant awards at the institution.

15(D) (i) An otherwise qualifying institution that becomes
16ineligible under this paragraph for initial and renewal Cal Grant
17awards shall regain its eligibility for the academic year for which
18it satisfies the requirements established in subparagraph (B), (C),
19or (F), as applicable.

20(ii) If the United States Department of Education corrects or
21revises an institution’s three-year cohort default rate or graduation
22rate that originally failed to satisfy the requirements established
23in subparagraph (B), (C), or (F), as applicable, and the correction
24or revision results in the institution’s three-year cohort default rate
25or graduation rate satisfying those requirements, that institution
26shall immediately regain its eligibility for the academic year to
27which the corrected or revised three-year cohort default rate or
28graduation rate would have been applied.

29(E) An otherwise qualifying institution for which no three-year
30cohort default rate or graduation rate has been reported by the
31United States Department of Education shall be provisionally
32eligible to participate in the Cal Grant Program until a three-year
33cohort default rate or graduation rate has been reported for the
34institution by the United States Department of Education.

35(F) For purposes of the 2012-13 academic year, and every
36academic year thereafter, an otherwise qualifying institution with
37a graduation rate of 30 percent or less, as certified by the
38commission pursuant to subparagraph (A), shall be ineligible for
39initial and renewal Cal Grant awards at the institution, except as
40provided for in subparagraph (H).

P7    1(G) Notwithstanding any other law, the requirements of this
2paragraph shall not apply to institutions with 40 percent or less of
3undergraduate students borrowing federal student loans, using
4information reported to the United States Department of Education
5for the academic year two years before the academic year in which
6the commission is certifying the three-year cohort default rate or
7graduation rate pursuant to subparagraph (A).

8(H) Notwithstanding subparagraph (F), an otherwise qualifying
9institution that maintains a three-year cohort default rate that is
10less than 15.5 percent and a graduation rate above 20 percent for
11students taking 150 percent or less of the expected time to complete
12degree requirements, as certified by the commission pursuant to
13subparagraph (A), shall be eligible for initial and renewal Cal Grant
14awards at the institution through the 2016-17 academic year.

15(I) The commission shall do all of the following:

begin insert

16(i) Establish a complete listing of California postsecondary
17educational institutions and identify which institutions are eligible
18and ineligible for participation in the Cal Grant program. The
19commission shall make this information readily available on the
20commission’s Internet Web site.

end insert
begin delete

21(i)

end delete

22begin insert(ii)end insert Notify initial Cal Grant recipients seeking to attend, or
23attending, an institution that is ineligible for initial and renewal
24Cal Grant awards under subparagraph (C) or (F) that the institution
25is ineligible for initial Cal Grant awards for the academic year for
26which the student received an initial Cal Grant award.

begin delete

27(ii)

end delete

28begin insert(iii)end insert Notify renewal Cal Grant recipients attending an institution
29that is ineligible for initial and renewal Cal Grant awards at the
30institution under subparagraph (C) or (F) that the student’s Cal
31Grant award will be reduced by 20 percent, or eliminated, as
32appropriate, if the student attends the ineligible institution in an
33academic year in which the institution is ineligible.

begin delete

34(iii)

end delete

35begin insert(iv)end insert Provide initial and renewal Cal Grant recipients seeking to
36attend, or attending, an institution that is ineligible for initial and
37renewal Cal Grant awards at the institution under subparagraph
38(C) or (F) with a complete list of all California postsecondary
39educational institutions at which the student would be eligible to
40receive an unreduced Cal Grant award.

P8    1(m) “Satisfactory academic progress” means those criteria
2required by applicable federal standards published in Title 34 of
3the Code of Federal Regulations. The commission may adopt
4regulations defining “satisfactory academic progress” in a manner
5that is consistent with those federal standards.



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