Today's Law As Amended


PDF |Add To My Favorites | print page

AB-1085 Cal Grant Program: maximum award amounts: private institutions.(2013-2014)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) The 2012–13 Budget Act reduced Cal Grant award amounts for students attending private postsecondary educational institutions by 17 to 59 percent commencing with the 2013–14 award year. The Governor also further reduced Cal Grant award awards for the 2012–13 award year by 5 percent to save $23,000,000 for consistency.
(b) These Cal Grant award reductions disproportionately affect low-income families. Those recipients who are hurt most by the reductions are the following:
(1) Minorities, who receive 60 percent of Cal Grant awards.
(2) Females, who receive 64 percent of Cal Grant awards.
(3) Students with parents who make under $36,000 a year, who receive 67 percent of Cal Grant awards.
(4) Students with parents who make under $48,000 a year, who receive 82 percent of Cal Grant awards.
(c) The Legislative Analyst’s Office has warned that reducing Cal Grant awards to students attending private postsecondary educational institutions may have the unintended effect of driving more students from private institutions to public institutions, thereby increasing the overall cost to the taxpayer to educate those students.

SEC. 2.

 Section 69432 of the Education Code is amended to read:

69432.
 (a) (1)  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.”
(2) For purposes of this section, “associate degree for transfer commitment” means a commitment by an independent institution of higher education that chooses to accept the California Community College associate degree for transfer pursuant to Section 66749.6.
(b) Maximum award amounts for students at independent institutions of higher education, private for-profit postsecondary educational 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  postsecondary educational institutions shall be four thousand dollars ($4,000). nine thousand seven hundred eight dollars ($9,708). 
(2) Notwithstanding paragraph (1) of this subdivision, subdivision (b) of this section, and subdivision (c) of Section 66021.2, commencing with the 2018–19 award year, the maximum tuition award amounts for Cal Grant A and B awards for students attending private for-profit postsecondary educational institutions accredited by the Western Association of Schools and Colleges shall be nine thousand eighty-four dollars ($9,084) for new recipients, unless otherwise specified in the Budget Act of 2018.
(d) Notwithstanding subdivision (b) of this section, and subdivision (c) of Section 66021.2, the maximum tuition award amounts for Cal Grant A and B awards for students attending independent institutions of higher education shall be as follows:
(1) For the 2015–16, 2016–17, 2017–18, 2018–19, and 2019–20 award years, nine thousand eighty-four dollars ($9,084) for new recipients.
(2) For the 2020–21 award year:
(A) (i) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the 2019–20 academic year meets or exceeds a target of 2,000, nine thousand eighty-four dollars ($9,084) for new recipients.
(ii) The Fall 2019 cohort shall be reported showing progress towards the annual goal by April 2020. The association representing the largest number of independent colleges and universities shall provide, by April 2020, a list of campuses that have adopted, or are in the process of adopting, the associate degree for transfer pathway.
(B) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the 2019–20 academic year is fewer than 2,000, eight thousand fifty-six dollars ($8,056) for new recipients.
(3) For the 2021–22 award year:
(A) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year meets or exceeds a target of 3,000, nine thousand eighty-four dollars ($9,084) for new recipients.
(B) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year is fewer than 3,000, eight thousand fifty-six dollars ($8,056) for new recipients.
(4) For the 2022–23 award year:
(A) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year meets or exceeds a target of 3,500, nine thousand eighty-four dollars ($9,084) for new recipients.
(B) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year is fewer than 3,500, eight thousand fifty-six dollars ($8,056) for new recipients.
(5) For the 2023–24 award year and each award year thereafter:
(A) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year meets or exceeds the target specified in subdivision (h), nine thousand eighty-four dollars ($9,084) for new recipients.
(B) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year is less than the target specified in subdivision (h), eight thousand fifty-six dollars ($8,056) for new recipients.
(e) (2)  The renewal award amount for a student whose initial award is subject to a maximum award amount specified in this section subdivision  shall be calculated pursuant to paragraph (2) of subdivision (a) of Section 69433.
(f) It is the intent of the Legislature that independent institutions of higher education make a good faith effort to make the process for transferring from the California Community Colleges easier for resident students and a decision determining the maximum award amounts made pursuant to this section for students attending an independent institution of higher education will be made with consideration of the effort of the institution to make that process easier.
(g) (d)  The association representing the largest number of independent institutions of higher education shall submit a report relative to the implementation of this section to the Department of Finance and the Legislature, in conformity with Section 9795 of the Government Code,  This section shall become inoperative on June 30, 2014, and, as of January 1, 2015, is repealed, unless a later enacted statute, that becomes operative  on or before April 15 of each year. January 1, 2015, deletes or extends the dates on which it becomes inoperative and is repealed. 
(h) For the 2023–24 award year and each award year thereafter, the target number of new unduplicated recipients accepted by independent institutions of higher education who have been given associate degree for transfer commitments shall be equal to the number of new transfer students attending independent institutions of higher education who were given associate degree for transfer commitments in the prior award year, adjusted by the percentage change in the total number of new transfer students from the year two years prior, compared to the prior year.
(i) For purposes of this section, “independent institution of higher education” has the same meaning as in Section 66010.

SEC. 3.

 Section 69432 is added to the Education Code, 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) For the 2013–14 award year, nine thousand eighty-four dollars ($9,084) for new recipients attending private nonprofit postsecondary educational institutions. For the 2014–15 award year and each award year thereafter, eight thousand fifty-six dollars ($8,056) 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).
(d) This section shall become operative on June 30, 2014.
SEC. 4.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to restore vital Cal Grant awards for recipients attending private postsecondary educational institutions, it is necessary that this act take immediate effect.