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AB-2016 Student financial aid: Student Aid Commission: total cost of attendance calculator.(2019-2020)

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Date Published: 05/04/2020 09:00 PM
AB2016:v98#DOCUMENT

Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2016


Introduced by Assembly Member Calderon

January 29, 2020


An act to add Section 18511 to the Revenue and Taxation Code, relating to taxation. An act to add Section 69433.3 to the Education Code, relating to student financial aid.


LEGISLATIVE COUNSEL'S DIGEST


AB 2016, as amended, Calderon. Personal income tax: returns: financial aid. Student financial aid: Student Aid Commission: total cost of attendance calculator.
Existing law establishes the University of California, the California State University, the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions as the segments of postsecondary education in this state. Existing law establishes the Student Aid Commission to administer student financial aid programs and to disseminate information about all institutional, state, and federal student aid programs to potential applicants. Existing law establishes eligibility requirements for awards under the Cal Grant Program for participating students attending qualifying postsecondary educational institutions.
This bill would require the Student Aid Commission to develop and post on its internet website a centralized, total cost of attendance calculator for the purpose of generating estimates of the net price for prospective students attending Cal Grant participating institutions, as provided. The bill would require each Cal Grant participating institution, as a condition for its voluntary participation in the Cal Grant Program, to biennially report to the commission cost of attendance information for purposes of the total cost of attendance calculator. By adding to the duties of community college districts, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law, the Personal Income Tax Law, imposes taxes on taxable income, as provided. Existing law requires every individual taxable under that law to make a return to the Franchise Tax Board, stating specifically the items of the individual’s gross income from all sources and the deductions and credits allowable, as specified.

Existing law establishes the Student Aid Commission as the state agency responsible for the administration of state-authorized student financial aid programs available to postsecondary education students.

This bill would require, for taxable years beginning on or after January 1, 2022, the Franchise Tax Board to revise the returns required to be filed pursuant to the Personal Income Tax Law to allow a taxpayer to authorize the Franchise Tax Board to share the information contained in the returns with the Student Aid Commission for purposes of providing the taxpayer with Cal Grant financial aid estimates, as defined, for the financing of postsecondary education, as specified. The bill would require the Franchise Tax Board to consult and develop an information sharing agreement with the Student Aid Commission to facilitate the provision of those Cal Grant financial aid estimates. The bill would require the information sharing agreement to address the sharing of specified information. The bill would require the Student Aid Commission to provide the taxpayer with Cal Grant financial aid estimates for the financing of postsecondary education at the nearest qualifying institution, as defined, in a manner determined by the commission.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

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


SECTION 1.

 Section 69433.3 is added to the Education Code, to read:

69433.3.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Total cost of attendance” means the annual cost of tuition and fees, room and board, books and supplies, and transportation for a student enrolled in an institution.
(2) “Net price” means the annual estimated price to be charged for enrollment in a participating institution, which shall be determined as the difference between the total cost of attendance for the participating institution and the total amount of estimated grant aid from federal, state, and institutional sources, calculated for an individual student.
(3) “Participating institution” means a postsecondary educational institution that participates in the state’s Cal Grant Program pursuant to Section 69432.7.
(b) (1) The Student Aid Commission shall develop and post on its internet website a centralized, total cost of attendance calculator for the purpose of generating estimates of the net price for prospective students attending participating institutions. The commission shall ensure, in addition to institutional data, the calculator uses, for the net price calculation, the following data elements provided by a prospective student:
(A) The salary of the prospective student or the parent or parents of the prospective student.
(B) The household family size of the prospective student.
(C) The dependency status of the prospective student.
(2) The commission shall ensure that the total cost of attendance calculator allows a prospective student to obtain a net price estimate for any participating institution and to compare and contrast net prices for various participating institutions in one location on the commission’s internet website.
(c) Notwithstanding subdivision (l) of Section 69432.7, as a condition for its voluntary participation in the Cal Grant Program, each Cal Grant participating institution shall biennially report cost of attendance data to the commission.

SEC. 2.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 18511 is added to the Revenue and Taxation Code, to read:
18511.

(a)For taxable years beginning on or after January 1, 2022, the Franchise Tax Board shall revise the returns required to be filed pursuant to this article as follows:

(1)The Franchise Tax Board shall revise the returns to allow a taxpayer to authorize the Franchise Tax Board to share the information contained in the returns with the Student Aid Commission for purposes of providing the taxpayer with Cal Grant financial aid estimates for the financing of postsecondary education.

(2)The Franchise Tax Board shall revise the returns to allow the taxpayer to specify whether they are requesting financial aid information for themselves, their spouse in the case of a joint return, or a dependent.

(b)(1)The Franchise Tax Board shall consult and develop an information sharing agreement with the Student Aid Commission to facilitate the provision of Cal Grant financial aid estimates to the taxpayer filing a return required to be filed pursuant to this article.

(2)The information sharing agreement shall address the sharing of all of the following information:

(A)Adjusted gross income from all sources.

(B)Family household size.

(C)Taxable assets.

(D)Street address.

(E)Any other financial information necessary to facilitate the provision of Cal Grant financial aid estimates to the taxpayer filing a return required to be filed pursuant to this article.

(c)The Student Aid Commission shall, upon receipt of the information specified in subdivision (a), provide the taxpayer with Cal Grant financial aid estimates for the financing of postsecondary education at the nearest qualifying institution in a manner determined by the commission.

(d)For purposes of this section, the following definitions apply:

(1)“Cal Grant financial aid estimate” means an estimate of moneys that may be awarded pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3 of the Education Code.

(2)“Qualifying institution” shall have the same meaning as defined in subdivision (l) of Section 69432.7.