BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2506


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2506 (Thurmond)


          As Amended  August 19, 2016


          Majority vote


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          |ASSEMBLY:  |      |(June 1, 2016) |SENATE: | 39-0 |(August 25,      |
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                 (vote not relevant)




          Original Committee Reference:  HIGHER ED.


          SUMMARY:  Requires, commencing with the 2017-18 academic year,  
          the California Student Aid Commission (CSAC) to ensure that  
          postsecondary institutions meet eligibility requirements  
          consistent with the Cal Grant Program in order to participate in  
          the Chafee Educational and Training Voucher (Chafee) Program.  


          The Senate amendments delete the Assembly version of this bill,  
          and recast the provisions related to institutional eligibility  
          for Chafee.  Specifically, the Senate amendments:


          1)Delete findings and declarations.










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          2)Delete the entitlement portion of this bill, which would have  
            required an eligible current or foster youth receive a Chafee  
            award. 


          3)Require out-of-state institutions to meet the same eligibility  
            requirements as California institutions. 


          4)Delete the requirements that CSAC provide Chafee grant  
            recipients seeking to attend, or attending, an ineligible  
            institution with a complete list of all California  
            postsecondary institutions at which the student would be  
            eligible to receive an award.


          EXISTING LAW:  


          1)Establishes the CSAC for the purpose of administering  
            specified student financial programs.  (Education Code Section  
            69510, et seq.)
          2)Establishes requirements for postsecondary education  
            institutions to participate in the Cal Grant program, and  
            requires, for the 2017-18 and subsequent academic years, an  
            institution to maintain a graduation rate above 30% and a  
            three-year cohort student loan default rate of less than  
            15.5%.  (EC Section 69432.7)


          3)Establishes the federal John H. Chafee Foster Care  
            Independence Program to provide, among other benefits,  
            education and training vouchers to qualifying current and  
            former foster youth.  (United States Code, Title 42, Section  
            677)


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, CSAC indicates that verifying institutions'  
          eligibility for the use of Chafee grant awards by its students  
          would impose minor and absorbable costs.  









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          COMMENTS:  The federal John H. Chafee Foster Care Independence  
          Program (CFCIP) was created in 1999 to offer assistance to  
          current and former foster care youths in achieving  
          self-sufficiency.  Federal grants are offered to States who  
          submit a plan to assist youth in a wide variety of areas  
          designed to support a successful transition to adulthood.  The  
          Educational and Training Vouchers Program (ETV) for Youths Aging  
          out of Foster Care was added to the CFCIP in 2002.  ETV provides  
          resources specifically to meet the education and training needs  
          of youth aging out of foster care.  


          In California, the Chafee Grant for Foster Youth provides up to  
          $5,000 in grants to foster youth.  The budget for the program is  
          about $11.5 million, which is evenly split between federal funds  
          ($5.6 million) and the state General Fund.  State funding for  
          the program is accounted for in the Department of Social  
          Services (DSS) budget, the funding is distributed to CSAC  
          through a Memorandum of Understanding (MOU) that outlines  
          program operations; CSAC then directs money to students pursuant  
          to the requirements of the MOU.  Current or former foster youth  
          qualify for the Chafee if they are under age 22 and were in  
          foster care in out-of-home placement at any time between the  
          ages of 16 and 18.  The maximum grant is $5,000 per academic  
          year; the average awarded grant in 2014-15 was $3,251.  The  
          program serves about 2,228 students. 


          The 2016 Budget Act includes an additional $3 million for the  
          Chafee ETV.


          Analysis Prepared by:                                             
                          Laura Metune / HIGHER ED. / (916) 319-3960  FN:   
          0004767














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