Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-505 Student financial aid: Cal Grant B, Cal Grant C, and federal Pell Grant awards: financial aid book advance program. (2019-2020)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 03/07/2019 09:00 PM
AB505:v98#DOCUMENT

Amended  IN  Assembly  March 07, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 505


Introduced by Assembly Member Patterson
(Coauthors: Assembly Members Flora, Rodriguez, and Blanca Rubio)
(Coauthors: Senators Chang, Nielsen, Wieckowski, and Wilk)

February 13, 2019


An act to add Section 69432.2 to the Education Code, relating to student financial aid.


LEGISLATIVE COUNSEL'S DIGEST


AB 505, as amended, Patterson. Student financial aid: Cal Grant B, Cal Grant C, and federal Pell Grant awards: financial aid book advance program.
Existing federal law establishes the federal Pell Grant Program under Title IV of the federal Higher Education Act of 1965 to provide need-based grant awards to low-income students in order to promote access to postsecondary education.
Existing law, known as the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes, among other programs, the Cal Grant B program and the Cal Grant C program under the administration of the Student Aid Commission and establishes eligibility requirements for awards under those programs.
This bill, beginning with the 2020–21 academic year, would require an institution of higher education, as a condition of its participation in the Cal Grant Program, to implement a financial aid book advance program that would provide a line of credit for the purchase of books and educational materials at bookstores owned by or located on the campus of the institution to each student who is owed a credit balance for certain financial aid awards and who has not opted out of the program. The bill would provide for a reduction in the amount of the award moneys disbursed to the student based upon the amount of credit expended by the student at the institution’s bookstores and would provide for reimbursement to the institution’s bookstores for that amount. The bill would exempt from these requirements an institution that does not have a bookstore and an institution that provides its students with all of their financial aid award moneys that the institution disburses at least 7 days before the academic term begins. on or before the 7th day of the academic semester or term.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 69432.2 is added to the Education Code, to read:

69432.2.
 (a) For purposes of this section, the following definitions apply:
(1) “Bookstore” or “institution’s bookstore” means a university-owned or college-owned bookstore located on or off campus, or a privately owned bookstore located on campus.
(2) “Census date” is the date that marks the end of the add/drop period for course enrollment and is used to determine financial aid eligibility for an academic semester or term.
(3) “Financial aid award” means a Cal Grant B, Cal Grant C, or federal Pell Grant award.
(4) “Program” means a financial aid book advance program established pursuant to this section.
(b) Beginning in the 2020–21 academic year, as a condition of its participation in the Cal Grant Program, an institution shall implement a financial aid book advance program for students who are awarded a financial aid award, in accordance with all of the following:
(1) (A) At least one week before the academic term begins On or before the seventh day of the academic semester or term and until one day before the institution’s census date for that academic semester or term, if a student attending the institution is owed a credit balance for a financial aid award for the that academic semester or term, the institution shall provide a line of credit to the student at bookstores, student, if the student has not opted out of the program pursuant to subdivision (e). It is the intent of the Legislature that the line of credit be provided at the earliest practicable time.
(B) The amount of the line of credit shall be the lesser of the presumed financial aid award credit balance owed to the student for the academic term and the amount needed by the student for books, semester or term or an amount generally needed by a student for books and educational materials, as determined by the institution.
(C) If an institution has more than one bookstore, a student at the institution may use the line of credit at any of the institution’s bookstores. The amount of a student’s line of credit shall not be impacted in any way by the number of bookstores at an institution attended by the student.
(D) The institution shall align its implementation of this subdivision with Section 668.164(m) of Title 34 of the Code of Federal Regulations.
(2) A bookstore shall authorize the student to purchase books and educational materials The student may purchase books and educational materials, using the line of credit established pursuant to paragraph (1), during the period specified in subparagraph (A) of paragraph (1) in the any amount equal up to the line of credit established for the student pursuant to paragraph (1). credit.
(3) A bookstore shall report the amount expended by the student at the bookstore using the student’s line of credit for the academic semester or term to the institution’s financial aid office.
(4) After the time period specified in subparagraph (A) of paragraph (1) lapses, the institution, in accordance with its own financial aid disbursement policies, including as set forth in the institutional participation agreement with the Student Aid Commission, shall deduct from the student’s financial aid award, in addition to any other authorized tuition and fee deductions, the amount expended by the student at bookstores, as reported by the bookstores, and the remaining balance shall be provided to the student.
(5) (A) Except as provided in subparagraph (B), the institution shall reimburse its bookstores in the amount expended by the student, as reported by the bookstores, from the moneys deducted from the student’s financial aid award pursuant to paragraph (4).
(B) Subsequent to a student using a line of credit established pursuant to paragraph (1) to purchase books and educational materials, if all of the following conditions are satisfied, the institution may reimburse a bookstore at a lesser amount than the amount required under subparagraph (A) pursuant to an agreement between the institution and the bookstore:
(i) The amount of the student’s financial aid award is reduced due to changes in the student’s eligibility status.
(ii) The reduction described in clause (i) would have reduced the student’s line of credit.
(iii) The student’s total bookstore expenditures expenditures, as reported pursuant to paragraph (3), exceed what would have been the reduced line of credit.
(c) An institution that does not have a bookstore is exempt from the requirements of this section.
(d) If an institution provides its students with all of their financial aid award moneys that the institution disburses at least seven days before the on or before the seventh day of the academic term begins, semester or term, the institution shall be exempt from the requirements of this section.
(e) The institution shall provide a means for a student to voluntarily opt out of the program.
(f) This section shall not be construed to require a student to do either of the following:
(1) Use a line of credit established for the student under subdivision (b) to purchase books or educational materials from a bookstore.
(2) Purchase books or educational materials from a bookstore.