Today's Law As Amended

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SB-15 Postsecondary education: financial aid: Graduation Incentive Grant program.(2015-2016)



SECTION 1.
 The Legislature finds and declares all of the following:
(a) The Public Policy Institute of California reports that, in 2025, 41 percent of jobs will require at least a bachelor’s degree. However, if current trends 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.
(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 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 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.
(d) A report by the Campaign for College 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.
(e) According to the State Higher Education Executive Officers, enrolling in 15 credit hours per term is the number one predictor of student success.
(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, a student is forced to choose between either working to earn money or taking additional courses to progress in earning a degree.

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 and nonprofit  postsecondary educational institutions shall be four thousand dollars ($4,000). as follows: 
(2) (A)  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  Four thousand dollars ($4,000) for new recipients  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. institutions. 
(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) (B)  (i) Nine  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. recipients attending private nonprofit postsecondary educational institutions. 
(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) 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, on or before April 15 of each year.
(h) (3)  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. 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). 
(i) For purposes of this section, “independent institution of higher education” has the same meaning as in Section 66010.

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) Commencing with the 2019–20 academic year, a total of 41,000 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 41,000 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 both 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.
(A) (B)  Students pursuing Cal Grant B awards who reestablish their grade point averages.
(B) (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 24 (commencing with Section 70045) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:

Article  24. Graduation Incentive Grant Program
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.
70046.
 (a) Commencing with the 2015–16 academic year, there shall be established the Graduation Incentive Grant 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.
(c) The Graduation Incentive Grant award shall be awarded annually to an eligible matriculated undergraduate California State University student with financial need 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 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 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 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.