Bill Text

Bill Information

Add To My Favorites | print page

SB-1644 Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.(1999-2000)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
SB1644:v94#DOCUMENT

Senate Bill No. 1644
CHAPTER 403

An act to amend Section 66021.2 of, to add Sections 69514.5, 69547.5, and 69547.9 to, to add Chapter 1.7 (commencing with Section 69430) to Part 42 of, and to repeal Article 3 (commencing with Section 69530) of Chapter 2 of Part 42 of, the Education Code, relating to student financial aid, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Filed with Secretary of State  September 12, 2000. Approved by Governor  September 11, 2000. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1644, Ortiz. Student financial aid: Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.
(1) Existing law establishes the Cal Grant Program as a state educational opportunity grant program for postsecondary study. Existing law, known as the Donahoe Higher Education Act, sets forth, among other things, the missions and functions of California’s public and independent segments of higher education and their respective institutions of higher education. The provisions of that act apply to the University of California only to the extent that the Regents of the University of California, by appropriate resolution, act to make a provision applicable. Among other things, the act sets forth the long-term policy with respect to the Cal Grant program. Under this policy, the number of first-year Cal Grant awards is equal to at least1/4 of the number of graduating high school seniors. The policy also requires that its implementation maintain a balance between the state’s policy goals of ensuring access to and selection of an institution of higher education for students with financial need.
This bill would enact the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, which would, among other things, set forth the long-term policy that first-year Cal Grant awards be granted to all applicants with demonstrated financial need and eligible grade point averages, and who meet other prescribed criteria.
Under the existing Cal Grant Program, Cal Grant A awards are used only for tuition and student fees in instructional programs of not less than 2 academic years, Cal Grant B awards are used only for tuition, student fees, and subsistence costs in an instructional program of not less than one academic year, Cal Grant C awards are used only for occupational or technical training, and Cal Grant T awards are used only for tuition and student fees for a maximum of one academic year for full-time attendance in an accredited teacher training program. Existing law requires that the maximum award in each category be determined in the annual Budget Act. Existing law requires Cal Grant B awards to be used for subsistence costs.
This bill would provide that, commencing on January 1, 2001, the existing Cal Grant Program is applicable only to students who have received an award under the program on or before December 31, 2000. The bill would repeal the existing Cal Grant Program as of January 1, 2010.
The bill would, commencing with the 2001–02 academic year, establish Cal Grant A Entitlement Awards, Cal Grant B Entitlement Awards, Competitive Cal Grant A and B Awards, California Community College Transfer Entitlement Awards, Cal Grant C Awards, and Cal Grant T Awards under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program. The bill would specify the eligibility criteria for each category of award. The bill would guarantee funding under the entitlement awards to all students achieving and maintaining eligibility for those awards.
The bill would require the Student Aid Commission to annually report to the Legislature and the Governor on prescribed aspects of the program.
(3) Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill would establish the Community College Student Financial Aid Outreach Program, which would be developed and administered by the commission, in consultation with the office of Chancellor of the California Community Colleges, for the purpose of providing financial aid training to high school and community college counselors and advisors who work with students planning to attend or who are attending a community college, as prescribed.
(4) Existing law establishes in the State Treasury the Special Fund for Economic Uncertainties, a continuously appropriated fund. Existing law authorizes the Controller to transfer amounts as needed to meet the cash needs of the General Fund, and requires the Controller to return moneys so transferred as soon as there are sufficient moneys in the General Fund. Existing law authorizes the Director of Finance to allocate funds from the Special Fund for Economic Uncertainties for disaster relief by notifying the Joint Legislative Budget Committee.
This bill would authorize the Director of Finance to authorize the augmentation, from the Special Fund for Economic Uncertainties, of the amount appropriated annually for the purposes of making grants under the Cal Grant Program. By authorizing the expenditure of money in a continuously appropriated fund for a new purpose, the bill would make an appropriation.
(5) This bill would appropriate $1,500,000 from the General Fund to the commission for expenditure, without regard to fiscal year, for support costs related to the administration of the bill, as prescribed.
(6) This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: YES  

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


SECTION 1.

 This act shall be known, and may be cited, as the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act.

SEC. 2.

 (a) The Legislature finds and declares all of the following:
(1) The California 1960 Master Plan for Higher Education established a structure for the organization of a world-class postsecondary system of education that utilizes the strength and capacity of the California community colleges in the training of lower division students in vocational programs and courses for transfer to higher institutions, undergraduate programs in the liberal arts, sciences, and teacher preparation at the California State University, partnerships with the independent colleges, and the undergraduate and professional schools, graduate training, and research at the University of California.
(2) A cornerstone of the Master Plan was a promise that the state would ensure all qualified students access to a quality higher education. The drafters of the Master Plan reaffirmed a long established principle that the state colleges and the University of California be tuition free to all residents of the state. Over the past four decades this policy evolved into a promise of affordability for all qualified students using a balance of fees and financial aid for low-income students.
(3) California reflects the ethnic and cultural diversity of today’s world. Evidence of this change is most pronounced within our public elementary and secondary education system. As California enters the 21st century, there is no single group that represents a majority of elementary and secondary enrollment. These changing demographics present great challenges and great opportunities. California must invest in higher education and in the future of its young people so they can acquire skills and knowledge to compete and lead the nation and the world.
(4) The Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act makes access and affordability a guarantee to every qualified student. It reaffirms the basic tenets of the 1960 Master Plan for Higher Education by guaranteeing a Cal Grant award to every student who is financially and academically eligible to receive one. Students with financial need and academic merit will no longer wonder whether they will be one of the relatively few students selected to receive a Cal Grant award each year.
(5) At a time when California is insisting on improved performance and accountability from all students in the public elementary and secondary school system, it is important to follow through on the state’s commitment to the capable graduates of high schools so they can pursue a quality higher education, especially when their families have limited financial means.
(6) The Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act removes poverty as a barrier to access to the opportunities of a higher education for all academically successful students and provides an opportunity to enroll and complete a higher education and take on the challenges presented by the Information Age and the ever-changing, technology-driven economy of the 21st century.
(7) The Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act takes an historic step in putting California at the forefront of the nation in providing access to all academically qualified students with financial need who are pursuing the dream of a higher education. With the enactment of this measure California will keep faith with its decades-long promise to make higher education available and affordable to every qualified student who deserves a chance to aim high and succeed.
(b) It is the intent of the Legislature, in enacting this act, to sunset the Cal Grant Program established pursuant to Article 3 (commencing with Section 69530) of Chapter 2 of Part 42 of the Education Code and to establish the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, commencing with the 2001–02 academic year.

SEC. 3.

 Section 66021.2 of the Education Code is amended to read:

66021.2.
 Consistent with the state’s historic commitment to provide educational opportunity by ensuring both student access to and selection of an institution of higher education for students with financial need, the long-term policy of the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 shall be as follows:
(a) Commencing with the 2001–02 academic year and every year thereafter, an applicant for a Cal Grant A or B award shall receive an award that is not in excess of the financial need amount determined by the Student Aid Commission pursuant to Section 69432.9 if he or she complies with all of the following requirements:
(1) Demonstrates financial need under the criteria adopted pursuant to Section 69432.9.
(2) Attains a grade point average, as defined in Section 69432.7, meeting the requirements of Chapter 1.7 (commencing with Section 69430) of Part 42.
(3) Complies with each of the eligibility criteria applicable to the type of Cal Grant award for which he or she is applying.
(b) (1) The maximum Cal Grant A award for a student attending the University of California or the California State University shall equal the mandatory systemwide fees in each of those segments.
(2) The maximum Cal Grant B award for a student to which this subdivision is applicable shall equal the mandatory systemwide fees in the segment attended by the student, except for community college students who receive waivers from the Board of Governors of the California Community Colleges, plus the access award calculated as specified in Article 3 (commencing with Section 69435) of Chapter 1.7 of Part 42, except that in the first year of enrollment in a qualifying institution, the maximum award shall be only for the amount of the access award.
(c) The maximum Cal Grant awards for students attending nonpublic institutions shall be as follows:
(1) The maximum Cal Grant A award shall equal the tuition award level established in the Budget Act of 2000, or the amount as adjusted in subsequent annual budget acts.
(2) The maximum Cal Grant B award shall equal the amount of the tuition award as established in the Budget Act of 2000, or the amount as adjusted in subsequent annual budget acts, plus the amount of the access costs specified in Section 69435, except that, in the first year of enrollment in a qualifying institution, the maximum award shall be only for the amount of the access award.
(d) Commencing with the 2000–01 academic year, and each academic year thereafter, the Cal Grant C award shall be utilized only for occupational or technical training.
(e) Commencing with the 2000–01 academic year, and each academic year thereafter, the Cal Grant T award shall be used only for one academic year of full-time attendance in a program of professional preparation that has been approved by the California Commission on Teacher Credentialing.
(f) An institution of higher education in this state that participates in the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program shall not reduce its level of per capita need-based institutional financial aid to undergraduate students, excluding loans, below the total level awarded in the 2000–01 academic year.
(g) The implementation of the policy set forth in this section shall maintain a balance between the state’s policy goals of ensuring student access to and selection of an institution of higher education for students with financial need and academic merit.
(h) It is the policy of the State of California that the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program supplement the federal Pell Grant program.
(i) An award under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program shall not guarantee admission to an institution of higher education or admission to a specific campus or program.

SEC. 4.

 Chapter 1.7 (commencing with Section 69430) is added to Part 42 of the Education Code, to read:
CHAPTER  1.7. Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
Article  1. General Provisions

69430.
 This chapter shall be known, and may be cited, as the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.

69431.
 There is hereby established the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, which may also be referred to as the Cal Grant Program.

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.

69432.5.
 The Budget required by the California Constitution to be submitted by the Governor at each Regular Session of the Legislature shall take into consideration the amount of federal grant funds for student financial aid.

69432.7.
 As used in this chapter, the following terms have the following meanings:
(a) An “academic year” is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included.
(b) “Access costs” means living expenses and expenses for transportation, supplies, and books.
(c) “Award year” means one academic year, or the equivalent, of attendance at a qualifying institution.
(d) “College grade point average” and “community college grade point average” mean a grade point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree.
(e) “Commission” means the Student Aid Commission.
(f) “Enrollment status” means part-time status or full-time status.
(1) Part-time, for purposes of Cal Grant eligibility, is defined as 6 to 11 semester units, inclusive, or the equivalent.
(2) Full-time, for purposes of Cal Grant eligibility, is defined as 12 or more semester units or the equivalent.
(g) “Expected family contribution,” with respect to an applicant shall be determined using 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. Secs. 1070 et seq.)) and applicable rules and regulations adopted by the commission.
(h) “High school grade point average” means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, reserve officer training corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, “high school grade point average” includes senior year coursework.
(i) “Instructional program of not less than one academic year” means a program of study that results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
(j) “Instructional program of not less than two academic years” means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
(k) “Maximum household income and asset levels” means the applicable household income and household asset levels for participants in the Cal Grant Program, as defined and adopted in regulations by the commission for the 2001–02 academic year, which shall be set pursuant to the following income and asset ceiling amounts:
CAL GRANT PROGRAM INCOME CEILINGS
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 
*Applies to independent students with dependents other than a spouse.
CAL GRANT PROGRAM ASSET CEILINGS
Cal Grant A,
C, and T
Cal Grant B

Dependent** _____ _____

$49,600 

$49,600 
Independent _____ _____
$23,600 
$23,600 
**Applies to independent students with dependents other than a spouse.
The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution.
(l) “Qualifying institution” means any of the following:
(1) Any California private or independent postsecondary educational institution that participates in the Pell Grant program and in at least two of the following federal campus-based student aid programs:
(A) Federal Work-Study.
(B) Perkins Loan Program.
(C) Supplemental Educational Opportunity Grant Program.
(2) Any nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent of the institution’s operating budget, as demonstrated in an audited financial statement, is expended for the purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation, by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 2000–01 academic year shall retain its eligibility as long as it maintains its existing accreditation status.
(3) Any California public postsecondary educational institution.
(m) “Satisfactory academic progress” means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. The commission may adopt regulations defining “satisfactory academic progress” in a manner that is consistent with those federal standards.

69432.8.
 The commission may determine that an advance payment is essential to ensure that funds provided pursuant to this chapter to assist students to enroll in postsecondary education are available at the time students enroll. Upon making that determination, the commission may, on the basis of institutional academic calendars, advance, per term to authorized postsecondary educational institutions, the funds for eligible students who have indicated they will attend those institutions, less an amount based on historical claim enrollment attrition information. Each institution shall disburse the funds in accordance with the provisions set forth in the institutional agreement between the commission and the institution.

69432.9.
 (a) A Cal Grant applicant shall submit a complete official financial aid application pursuant to Section 69433 and applicable regulations adopted by the commission.
(b) Financial need shall be determined using the federal financial need methodology pursuant to subdivision (a) of Section 69506 and applicable regulations adopted by the commission, and as established by Title IV of the Federal Higher Education Act of 1965 (20 U.S.C. Secs. 1070 et seq., as amended). The calculation of financial need shall be consistent with the commission’s methodology for financial need for the 2000–01 academic year.
(1) “Expected family contribution,” with respect to an applicant shall be determined using 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. Secs. 1070 et seq.)) and applicable rules and regulations adopted by the commission.
(2) Financial need is defined as the difference between the student’s cost of attendance as determined by the commission and the expected family contribution. The calculation of financial need shall be consistent with the commission’s methodology for determining financial need for the 2000–01 academic year as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Secs. 1070 et seq.).
(3) (A) The minimum financial need required for receipt of an initial Cal Grant A or Cal Grant C award shall be not less than the maximum annual award value for the applicable institution, plus an additional one thousand five hundred dollars ($1,500) of financial need.
(B) The minimum financial need required for receipt of an initial Cal Grant B award shall be no less than seven hundred dollars ($700).
(c) The commission shall require that a grade point average be submitted for all Cal Grant A and B applicants, except for those permitted to provide test scores in lieu of a grade point average. The commission shall require that each report of a grade point average include a certification, executed under penalty of perjury, by a school official, that the grade point average reported is accurately reported. The certification shall include a statement that it is subject to review by the commission or its designee. The commission shall adopt regulations that establish a grace period for receipt of the grade point average and any appropriate corrections, and that set forth the circumstances under which a student may submit a specified test score designated by the commission, by regulation, in lieu of submitting a qualifying grade point average. It is the intent of the Legislature that high schools and institutions of higher education certify the grade point averages of their students in time to meet the application deadlines imposed by this chapter.

69433.
 (a) (1) A Cal Grant Program award shall be based upon the financial need of the applicant, and shall not exceed the calculated financial need for any individual applicant. The minimum level of financial need of each applicant shall be determined by the commission pursuant to Section 69432.9. The commission may provide renewal awards.
(2) A student attending a nonpublic institution shall receive a renewal award for tuition or fees, or both, in an amount not to exceed the maximum allowable award amount that was in effect in the year in which the student first received a new award.
(b) A Cal Grant award authorized pursuant to this chapter shall be defined as a full-time equivalent grant. An award to a part-time student shall be a fraction of a full-time grant, as determined by the commission.
(c) (1) The commission shall prescribe the use of standardized student financial aid applications for California. These applications shall be simple in nature, and collect common data elements required by the federal government and those elements needed to meet the objectives of state-funded and institutional financial aid programs.
(2) The applications prescribed in paragraph (1) shall be utilized for the Cal Grant Program, all other programs funded by the state or a public institution of postsecondary education (except for the Financial Assistance Program of the Board of Governors of the California Community Colleges authorized by Chapter 1118 of the Statutes of 1987, for which a simplified application designed for that sole purpose may be used), and all federal programs administered by a public postsecondary education institution.
(3) Supplemental application information may be utilized if the information is essential to accomplishing the objectives of individual programs. All supplemental application information used for the purposes of commission-administered programs shall be subject to approval by the commission, and applications shall be identical for programs with similar objectives, as determined by the commission.
(4) Public postsecondary institutions are encouraged to use, but may decide whether to use, the standard applications for funds provided by private donors.
(5) The Legislature finds and declares that it is in the best interest of students that all postsecondary education institutions in California participating in federal and state-funded financial aid programs accept the standard applications prescribed by the commission.
(d) Nothing in this chapter shall prevent an individual public postsecondary institution from processing, with its own staff and fiscal resources, the standard financial aid applications specified in subdivision (c) for student aid programs for which it has legal responsibility.
(e) The commission may enter into contracts with a public agency or a private entity to improve the processing and distribution of grants, fellowships, and loans through the use of electronic networks and unified data bases.

69433.5.
 (a) Only a resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000), is eligible for an initial Cal Grant award. The recipient shall remain eligible for award renewal only if he or she is a California resident, in attendance, and making satisfactory academic progress at a qualifying institution, as determined by the commission.
(b) A part-time student shall not be discriminated against in the selection of Cal Grant Program award recipients, and an award to a part-time student shall be approximately proportional to the time the student spends in the instructional program, as determined by the commission. A first-time Cal Grant Program award recipient who is a part-time student shall be eligible for a full-time renewal award if he or she becomes a full-time student.
(c) Cal Grant Program awards shall be awarded without regard to race, religion, creed, sex, or age.
(d) No applicant shall receive more than one type of Cal Grant Program award concurrently. Except as provided in Section 69440, no applicant shall:
(1) Receive one or a combination of Cal Grant Program awards in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, except as provided in Section 69433.6.
(2) Have obtained a baccalaureate degree prior to receiving a Cal Grant Program award, except as provided in Section 69440.
(e) A Cal Grant Program award, except as provided in Section 69440, may only be used for educational expenses of a program of study leading directly to an undergraduate degree or certificate, or for expenses of undergraduate coursework in a program of study leading directly to a first professional degree, but for which no baccalaureate degree is awarded.
(f) Commencing in 1999, the commission shall, for students who accelerate college attendance, increase the amount of award proportional to the period of additional attendance resulting from attendance in classes that fulfill requirements or electives for graduation during summer terms, sessions, or quarters. In the aggregate, the total amount a student may receive in a four-year period may not be increased as a result of accelerating his or her progress to a degree by attending summer terms, sessions, or quarters.
(g) The commission shall notify Cal Grant award recipients of the availability of funding for the summer term, session, or quarter through prominent notice in financial aid award letters, materials, guides, electronic information, and other means that may include, but not necessarily be limited to, surveys, newspaper articles, or attachments to communications from the commission and any other published documents.
(h) The commission may require, by the adoption of rules and regulations, the production of reports, accounting, documents, or other necessary statements from the award recipient and the college or university of attendance pertaining to the use or application of the award.
(i) A Cal Grant Program award may be utilized only at a qualifying institution.

69433.6.
 (a) Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of four years of full-time attendance in an undergraduate program provided that financial need continues to exist. Commencing with the 2001–02 academic year, the total number of years of eligibility for grants pursuant to this section shall be based on the student’s educational level in his or her course of study as designated by the institution of attendance when the recipient initially receives payment for a grant.
(b) For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant A awards and Cal Grant B awards may be renewed for a total of five years of full-time attendance, provided that financial need continues to exist.
(c) (1) A Cal Grant Program award recipient who has completed a baccalaureate degree, and who has been admitted to and is enrolled in a program of professional teacher preparation at an institution approved by the California Commission on Teacher Credentialing is eligible for, but not entitled to, renewal of a Cal Grant Program award for an additional year of full-time attendance, if financial need continues to exist.
(2) Payment for an additional year is limited to only those courses required for an initial teaching authorization. An award made under this subdivision may not be used for other courses.
(d) A student’s Cal Grant renewal eligibility shall not have lapsed more than 15 months prior to the payment of an award for purposes of this section.

69433.7.
 The commission shall adopt regulations necessary to implement this chapter. Notwithstanding any other provision of law, the commission may adopt emergency regulations pursuant to Section 11346.1 of the Government Code in order to ensure that the program enacted by this chapter may function in its first academic year.

69433.8.
 An award under this chapter does not guarantee admission to an institution of higher education or admission to a specific campus or program.

69433.9.
 To be eligible to receive a Cal Grant award under this chapter, a student shall be all of the following:
(a) A citizen of the United States, or an eligible noncitizen, as defined for purposes of financial aid programs under Title IV of the federal Higher Education Act of 1965 (20 U.S.C. Secs. 1070 et seq., as from time to time amended).
(b) In compliance with all applicable Selective Service registration requirements.
(c) Not incarcerated.
(d) Not in default on any student loan within the meaning of Section 69507.5.
(e) For purposes of Article 2 (commencing with Section 69434), Article 3 (commencing with Section 69435), and Article 4 (commencing with Section 69436), at the time of high school graduation or its equivalent, be a resident of California.

Article  2. Cal Grant A Entitlement Program

69434.
 (a) Commencing with the 2001–02 academic year, and each academic year thereafter, a Cal Grant A award shall be used only for tuition or student fees, or both, in a for-credit instructional program with a length of not less than two academic years. Each student who meets the Cal Grant A qualifications as set forth in this article shall be guaranteed an award. The amount of any individual award is dependent on the cost of tuition or fees, or both, at the qualifying institution at which the student is enrolled. For each applicant, the award amount shall not exceed the calculated financial need.
(b) Pursuant to Section 66021.2, any California resident is entitled to a Cal Grant A award, and the commission shall allocate that award, if all of the following criteria are met:
(1) The student has submitted, pursuant to Section 69432.9, a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the second award year following the year of high school graduation or its equivalent.
(2) The student demonstrates financial need pursuant to Section 69433.
(3) The student attains a high school grade point average of at least 3.0 on a four-point scale.
(4) The student’s household has an income and asset level that does not exceed the level for Cal Grant A recipients set forth in Section 69432.7.
(5) The student is pursuing an undergraduate academic program of not less than two academic years that is offered by a qualifying institution.
(6) The student is enrolled at least part-time.
(7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430).
(c) A student who meets the Cal Grant A Entitlement Program criteria specified in this article shall receive a Cal Grant A award for tuition or fees, or both, pursuant to Section 66021.2.

69434.5.
 An individual selected for a Cal Grant A award who enrolls in a California community college may elect to have the award held in reserve for him or her for a period not to exceed two academic years, except that the commission may extend the period in which his or her award may be held in reserve for up to three academic years if, in the commission’s judgment, the rate of academic progress has been as rapid as could be expected for the personal and financial conditions that the student has encountered. The commission shall, in this case, hold the award in reserve for the additional year. Upon receipt of a request to transfer the award to a tuition or fee charging qualifying institution, the individual will be eligible to receive the Cal Grant A award previously held in reserve if, at the time of the request, he or she meets all of the requirements of this article. Upon receipt of the request, the commission shall reassess the financial need of the award recipient. The commission may prescribe the forms and procedures to be utilized for the purposes of this section. A recipient’s years of eligibility for payment of benefits shall be based upon his or her grade level at the time the award is transferred to the tuition or fee charging qualifying institution.

Article  3. Cal Grant B Entitlement Program

69435.
 (a) (1) Commencing with the 2001–02 academic year, and each academic year thereafter, a Cal Grant B award shall be used only for tuition, student fees, and access costs in a for-credit instructional program that is not less than one academic year in length.
(2) The commission shall award access grants in a student’s first academic year. In subsequent years, the award shall include an additional amount to pay tuition or fees, or both, to attend college at a public or private four-year college or university or other qualifying institution for all Cal Grant B awards pursuant to paragraph (2) of subdivision (b) of Section 66021.2. In no event shall the total award in any year exceed the applicant’s calculated financial need.
(3) Not more than 2 percent of new Cal Grant B recipients enrolling for the first time in an institution of postsecondary education shall be eligible for payments for tuition or fees, or both, in their first academic year of attendance. The commission shall adopt regulations specifying the criteria used to determine which applicants, if any, receive both tuition and fees plus the access grant in the first year of enrollment. Priority shall be given to students with the lowest expected family contribution pursuant to Section 69432.7 and the highest level of academic merit.
(b) An award for access costs under this article shall be in an annual amount not to exceed one thousand five hundred fifty-one dollars ($1,551). This amount may be adjusted in the annual Budget Act.

69435.3.
 (a) Any California resident is entitled to receive a Cal Grant B award, and the commission shall allocate that award pursuant to Section 66021.2, if all of the following criteria are met:
(1) The student has submitted, pursuant to Section 69432.9, a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the second award year following the year of high school graduation or its equivalent.
(2) The student demonstrates financial need pursuant to Section 69433.
(3) The student attains a high school grade point average of at least 2.0 on a four-point scale.
(4) The student’s household has an income and asset level that does not exceed the level for Cal Grant B recipients as set forth in Section 69432.7.
(5) The student is pursuing an undergraduate academic program of not less than one academic year that is offered by a qualifying institution.
(6) The student is enrolled at least part-time.
(7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430).
(b) A student whose household income does not exceed the maximum household income and asset levels, as set forth in Section 69432.7, for a Cal Grant B award shall receive access costs and tuition and fees pursuant to Section 66021.2.

Article  4. California Community College Transfer Cal Grant Entitlement Program

69436.
 (a) Commencing with the 2001–02 academic year, and each academic year thereafter, a student who was not awarded a Cal Grant A or B award pursuant to Article 2 (commencing with Section 69434) or Article 3 (commencing with Section 69435) at the time of his or her high school graduation but, at the time of transfer from a California community college to a qualifying baccalaureate program, meets all of the criteria set forth in subdivision (b), shall be entitled to a Cal Grant A or B award.
(b) Any California resident transferring from a California community college to a qualifying institution that offers a baccalaureate degree is entitled to receive, and the commission shall award, a Cal Grant A or B depending on the eligibility determined pursuant to subdivision (c), if all of the following criteria are met:
(1) A complete official financial aid application has been submitted or postmarked pursuant to Section 69432.9, no later than the March 2 of the year immediately preceding the award year.
(2) The student demonstrates financial need pursuant to Section 69433.
(3) The student has earned a community college grade point average of at least 2.4 on a 4.0 scale and is eligible to transfer to a qualifying institution that offers a baccalaureate degree.
(4) The student’s household has an income and asset level not exceeding the limits set forth in Section 69432.7.
(5) The student is pursuing a baccalaureate degree that is offered by a qualifying institution.
(6) He or she is enrolled at least part-time.
(7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430).
(8) The student meets the federal definition of a dependent student, as set forth in Section 152 of Title 26 of the United States Code, with the exception of:
(A) A student who is an orphan or a ward of the court and who will not be 24 years old or older by December 31 of the award year.
(B) A student who is a veteran of the United States Armed Forces and who will not be 24 years old or older by December 31 of the award year.
(C) A student who is a married person and who will not be 24 years old or older by December 31 of the award year.
(D) A student who will not be 24 years old or older by December 31 of the award year and who has dependents other than a spouse.
(E) A student who will not be 24 years old or older by December 31 of the award year and for whom a financial aid administrator makes documented determination of independence by reason of other unusual circumstances.
(9) A student who graduated from a California high school or its equivalent during or after the 2001–02 academic year.
(c) The amount and type of the award pursuant to this article shall be determined as follows:
(1) For applicants with income and assets at or under the Cal Grant A limits, the award amount shall be the amount established pursuant to Article 2 (commencing with Section 69434).
(2) For applicants with income and assets at or under the Cal Grant B limits, the award amount shall be the amount established pursuant to Article 3 (commencing with Section 69435).

69436.5.
 A participating qualifying institution shall report to the commission annually as to the number of students determined to be independent pursuant to subparagraph (E) of paragraph (8) of subdivision (b) of Section 69436 and the reasons therefor.

Article  5. Competitive Cal Grant A and B Awards

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) A total of 22,500 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 22,500 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 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.
(B) Students pursuing Cal Grant B awards who reestablish their grade point averages.
(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.

69437.3.
 (a) The commission shall utilize the standardized student financial aid application described in Section 69432.9.
(b) An official financial aid application shall be submitted pursuant to Section 69432.9, submitted or postmarked no later than March 2, or September 2 for students enrolled at a community college.
(c) A student shall be enrolled at least part-time.

69437.5.
 Cal Grant A and B awards shall be used only for the purposes set forth in Article 2 (commencing with Section 69434) and Article 3 (commencing with Section 69435), respectively.

69437.6.
 (a) An applicant competing for an award under this article shall meet all the requirements of Article 1 (commencing with Section 69430).
(b) To compete for a competitive Cal Grant A Award, an applicant shall, at a minimum, meet all of the requirements of Article 2 (commencing with Section 69434), with the exception of paragraph (1) of subdivision (b) of Section 69434.
(c) To compete for a competitive Cal Grant B Award, an applicant shall, at a minimum, meet all of the requirements of Article 3 (commencing with Section 69435). However, in lieu of meeting the grade point average requirements of paragraph (3) of subdivision (a) of Section 69435.3, a student may reestablish his or her grade point average by completing at least 16 cumulative units of credit for academic coursework at an accredited California community college, as defined by the commission, by regulation, with at least a 2.0 community college grade point average.
(d) To compete for a competitive California Community College Transfer Cal Grant Award, an applicant shall, at a minimum, meet the requirements of Article 4 (commencing with Section 69436), with the exception of paragraph (8) of subdivision (b) of Section 69436.
(e) All other competitors shall, at a minimum, comply with all of the requirements of subdivision (b) of Section 69432.9.
(f) An individual selected for a Cal Grant A award who enrolls in a California community college may elect to have the award held in reserve for him or her for a period not to exceed two academic years, except that the commission may extend the period in which his or her award may be held in reserve for up to three academic years if, in the commission’s judgment, the rate of academic progress has been as rapid as could be expected for the personal and financial conditions that the student has encountered. The commission shall, in this case, hold the award in reserve for the additional year. Upon receipt of a request to transfer the award to a tuition or fee charging qualifying institution, the individual will be eligible to receive the Cal Grant A award previously held in reserve if, at the time of the request, he or she meets all of the requirements of this article. Upon receipt of the request the commission shall reassess the financial need of the award recipient. The commission may prescribe the forms and procedures to be utilized for the purposes of this section. A recipient’s years of eligibility for payment of benefits shall be based upon his or her grade level at the time the award is transferred to the tuition or fee charging qualifying institution. Any award so held in reserve shall only be counted once toward the 22,500 awards authorized by this article.

69437.7.
 After two award cycles, the commission shall review the competitive grant program and its priorities to gain a better understanding of early participation patterns and to determine the initial level of program effectiveness. The commission shall report these findings to the Legislature and the Governor by December 31, 2003, and each year thereafter.

Article  6. Cal Grant C Program

69439.
 (a) Commencing with the 2001–02 academic year, and each academic year thereafter, a Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months. There shall be the same number of Cal Grant C awards each year as were made in the 2000–01 fiscal year. The maximum award amount and the total amount of funding shall be determined each year in the annual Budget Act.
(b) “Occupational or technical training” means that phase of education coming after the completion of a secondary school program and leading toward recognized occupational goals approved by the commission.
(c) The commission may use criteria it deems appropriate in selecting students with occupational talents to receive grants for occupational or technical training.
(d) The Cal Grant C recipients shall be eligible for renewal of their grants until they have completed their occupational or technical training in conformance with terms prescribed by the commission. In no case shall the grants exceed two calendar years.
(e) Cal Grant C awards shall be for institutional fees, charges, and other costs including tuition, plus training-related costs, such as special clothing, local transportation, required tools, equipment, supplies, and books. In determining the amount of grants and training-related costs, the commission shall take into account other state and federal programs available to the applicant.
(f) Cal Grant C awards shall be awarded in areas of occupational or technical training as determined by the commission after consultation with appropriate state and federal agencies.

Article  7. Cal Grant T Program

69440.
 (a) Commencing with the 2001–02 academic year, and each academic year thereafter, Cal Grant T awards shall be used only for tuition and student fees for a maximum of one academic year of full-time attendance in a program of professional preparation that has been approved by the California Commission on Teacher Credentialing. There shall be a minimum of 3,000 new Cal Grant T awards each year. The maximum award amount, and the total amount of funding, shall be determined each year in the annual Budget Act. As a condition of receiving a Cal Grant T award, a recipient shall teach for one year in a low-performing school, as defined in subdivision (c) of Section 44765, for each two thousand dollar ($2,000) incentive provided through the Cal Grant T Program, for a period not to exceed four years. Any recipient who fails to meet his or her teaching obligation shall repay the Cal Grant T award.
(b) The commission shall allocate Cal Grant T awards using academic criteria or criteria related to past performance similar to that used in awarding Cal Grant A awards for the 2000–01 academic year.

SEC. 5.

 Section 69514.5 is added to the Education Code, to read:

69514.5.
 (a) The Community College Student Financial Aid Outreach Program is hereby established. The commission shall, in consultation with the office of the Chancellor of the California Community Colleges, develop and administer this program for the purpose of providing financial aid training to high school and community college counselors and advisors who work with students planning to attend or attending a community college. This training shall also address the specific needs of all of the following:
(1) Community college students intending to transfer to a four-year institution of higher education.
(2) Foster youth.
(3) Students with disabilities.
(b) The program shall provide specialized information on financial aid opportunities available to community college students, with a particular focus on students who plan to transfer to a four-year college or university. The commission shall work in collaboration with the Chancellor of the California Community Colleges and other segments of higher education to develop and distribute this specialized information to assist community college students who are planning to transfer to a four-year college or university. Each year, the program shall offer financial aid workshops for high school and community college counselors, targeted for students planning to attend a community college or to transfer from a community college to a four-year institution of higher education. The program shall assist community college counselors in conducting student and family workshops that provide general information about financial aid and technical assistance in completing financial aid forms.
(c) The program shall concentrate its efforts on high schools and community colleges that are located in geographic areas that have a high percentage of low-income families.

SEC. 6.

 Section 69547.5 is added to the Education Code, to read:

69547.5.
 Commencing on January 1, 2001, this article shall be applicable only to students who have received an award pursuant to this article on or before December 31, 2000.

SEC. 7.

 Section 69547.9 is added to the Education Code, to read:

69547.9.
 This article shall remain in effect only until January 1, 2010, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2010, deletes or extends that date.

SEC. 8.

 The Student Aid Commission shall annually report to the Legislature and the Governor on the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program from its inception on both of the following:
(a) The number of Cal Grant applicants and new and continuing recipients each year. This data shall include at a minimum the following information about recipients: educational level, grade point average, segment of attendance, number of community college transfer students.
(b) A longitudinal component that measures student persistence and graduation rates over time.

SEC. 9.

 Notwithstanding any other provision of law, the Director of Finance may authorize the augmentation, from the Special Fund for Economic Uncertainties established pursuant to Section 16418 of the Government Code, of the annual amount appropriated for the purpose of making Cal Grant awards pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of the Education Code, as necessary to fully fund the number of awards required to be granted by that chapter. No augmentation may be authorized under this section sooner than 30 days after the Director of Finance provides written notice of the proposed augmentation to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house that consider appropriations, nor sooner than whatever lesser time those persons, or their designees, may in each instance determine.

SEC. 10.

 (a) The sum of one million five hundred thousand dollars ($1,500,000) is hereby appropriated from the General Fund to the Student Aid Commission for expenditure, without regard to fiscal year, for support costs related to the administration of this act.
(b) The expenditure of the funds appropriated in subdivision (a) is subject to approval of a work plan by the Department of Finance, once 30-day written notification has been given to the Chairperson of the Joint Legislative Budget Committee, or his or her designee.
(c) Notwithstanding any other provision of law, any deficiency request submitted by the Student Aid Commission and recommended by the Director of Finance, pursuant to Section 27.00 of the Budget Act of 2000, for the purposes of implementing this act, shall be considered to be for unanticipated expenses incurred in the operation of existing programs, and shall be subject to any other pertinent provisions of Section 27.00 of the Budget Act of 2000.
(d) In order to ensure proper planning for administration of this act, it is the intent of the Legislature that the Department of Finance consider a Spring Finance Letter from the Student Aid Commission for inclusion in the Budget Bill for the 2001–02 fiscal year for the purposes of requesting funds to comply with this act in the 2001–02 fiscal year.
(e) No funds provided pursuant to this section shall be expended for information technology projects prior to approval by the Department of Finance and the Department of Information Technology of a Feasibility Study Report or a Special Project Report, as applicable.

SEC. 11.

 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 for this act to take effect in time to apply to high school seniors who graduate in the 2000–01 academic year, it is necessary that it take effect immediately.