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AB-1456 Student financial aid: Cal Grant Reform Act.(2021-2022)

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Date Published: 07/15/2021 09:00 PM
AB1456:v97#DOCUMENT

Amended  IN  Senate  July 15, 2021
Amended  IN  Assembly  April 12, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1456


Introduced by Assembly Members Medina and McCarty
(Principal coauthor: Senator Leyva)
(Coauthors: Assembly Members Berman, Low, and Lorena Gonzalez Lorena Gonzalez, Robert Rivas, and Valladares)
(Coauthor: Senator Limón)(Coauthors: Senators Limón, Min, and Ochoa Bogh)

February 19, 2021


An act to amend Sections 66021.2, 69438.3, 69438.5, and 69465 of, to amend the heading of Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3 of, to add Section 70023.5 to, and to add Article 10 (commencing with Section 69470) to Chapter 1.7 of, and to add Chapter 5 (commencing with Section 70200) to, Part 42 of Division 5 of Title 3 of, the Education Code, relating to student financial aid.


LEGISLATIVE COUNSEL'S DIGEST


AB 1456, as amended, Medina. Student financial aid: Cal Grant Reform Act.
(1) Existing law establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, the Cal Grant T awards, and the Middle Class Scholarship Program under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.
This bill would enact the Cal Grant Reform Act, which would revise and recast the provisions establishing and governing the existing Cal Grant programs and the Middle Class Scholarship Program into a new Cal Grant Program. The bill would authorize the commission to adopt emergency regulations to implement the Cal Grant Reform Act. The new Cal Grant Program would also include a Cal Grant 2 Program and a Cal Grant 4 Program, with eligibility requirements as specified.
The provisions rendering the existing Cal Grant and Middle Class Scholarship Programs inoperative would take effect on an unspecified date, or on a date that regulations adopted by the commission implementing this bill may determine, whichever date is later. The Cal Grant Reform Act would become operative for students to apply for aid beginning October 1, 2022, and to receive aid for the 2023–24 academic year.
The bill would require the Trustees of the California State University, and request the Regents of the University of California, to adopt a statement of policy by an unspecified date on how their institutional aid programs address student basic needs and how these institutional funds are prioritized for disbursement.
The bill would require the University of California, the California State University, private nonprofit and for-profit institutions of higher education, and community college districts whose students receive Cal Grant aid to report specified data to the Department of Finance, the Legislative Analyst’s Office, and the higher education policy and fiscal committees of the Legislature for each academic year, starting with the 2021–22 academic year, by March 31 of the subsequent academic year. To the extent that this provision would impose new duties on community college districts, it would constitute a state-mandated local program.
(2) 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 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 the applicant 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 the applicant is applying.
(b) (1) (A) 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 the segment attended by the student, plus the access award specified in Article 9 (commencing with Section 69465) of Chapter 1.7 of Part 42 if the student meets qualifying criteria pursuant to subdivision (b) of Section 69465.
(B) The maximum Cal Grant B award for a student who is attending the University of California, the California State University, or the California Community Colleges when not enrolled in upper division coursework as described in paragraph (2), 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) or, if the student meets the qualifying criteria pursuant to subdivision (b) of Section 69465, Article 9 (commencing with Section 69465), 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.
(2) (A) The maximum Cal Grant A award for a community college student enrolled in upper division coursework of a baccalaureate degree program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, shall equal the per unit fees charged for the upper division coursework for the academic term, plus the access award specified in Article 9 (commencing with Section 69465) of Chapter 1.7 of Part 42 if the student meets the qualifying criteria pursuant to subdivision (b) of Section 69465.
(B) The maximum Cal Grant B award for a community college student enrolled in upper division coursework of a baccalaureate degree program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, shall equal the per unit fees charged for the upper division coursework for the academic term, plus the access award calculated as specified in Article 3 (commencing with Section 69435) or, if the student meets the qualifying criteria pursuant to subdivision (b) of Section 69465, Article 9 (commencing with Section 69465) of Chapter 1.7 of Part 42.
(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 used 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.
(j) This section shall become inoperative on____, or on the date that the regulations adopted by the commission pursuant to Section 70202 may determine, whichever is later.

SEC. 2.

 The heading of Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3 of the Education Code is amended to read:
CHAPTER  1.7. California Dreamer Service Incentive Grant Program and Awards for Students with Dependent Children

SEC. 3.

 Section 69438.3 of the Education Code is amended to read:

69438.3.
 (a) In order to receive a grant under the program, a student shall be a recipient of a Cal Grant 4 award, and shall perform at least 100 hours per quarter or 150 hours per semester of community or volunteer service, as appropriate. The community or volunteer service shall be performed through organizations meeting the requirements of Section 69438.7. The organizations shall report the hours of service performed by participating students to the commission in a timely manner.
(b) A participating student is eligible to receive a grant under the program for a maximum of eight semesters or 12 quarters. Once a student has met the minimum service requirement, the student is eligible for an award of up to one thousand five hundred dollars ($1,500) per semester or one thousand dollars ($1,000) per quarter. The amount of a grant made to an individual participating student shall be calculated as follows:
(1) Fifty percent of the unmet need of up to one thousand five hundred dollars ($1,500) of a student enrolled in a semester-based system, or 33.33 percent of the unmet need of up to one thousand dollars ($1,000) of a student enrolled in a quarter-based system, as appropriate, shall be multiplied as follows:
(A) For half-time students, multiplied by five tenths (0.5).
(B) For three-fourths full-time students, multiplied by seventy-five hundredths (0.75).
(C) For full-time students, multiplied by one (1).
(2) If a student is eligible to receive a grant under the program, the minimum amount awarded in a semester or quarter shall be determined as follows:
(A) For half-time students, one hundred fifty dollars ($150).
(B) For three-fourths full-time students, two hundred twenty-five dollars ($225).
(C) For full-time students, three hundred dollars ($300).
(c) A grant awarded under the program shall not offset or replace any other source of grant aid, including, but not necessarily limited to, institutional aid and scholarships.
(d) No more than 2,500 students who are eligible through meeting all of the requirements of Section 69438.5 shall simultaneously participate in the program. When award slots are available, grants under the program shall be awarded to eligible students on a first-come-first-served basis, with priority established in order of the date and time of the student’s submission of a completed California Dream Act application pursuant to subdivision (a) of Section 69438.5.
(e) Of the funds appropriated in the Budget Act of 2019–20 2019 for the purposes of the program, up to one million five hundred thousand dollars ($1,500,000) shall be available on a one-time basis to the commission to support the costs to administer the program for the 2019–20 fiscal year.

SEC. 4.

 Section 69438.5 of the Education Code is amended to read:

69438.5.
 A student is eligible to participate in the program if the student meets all of the following requirements:
(a) The student has completed, and submitted to the commission, a California Dream Act application.
(b) The student meets all of the requirements for an exemption from paying nonresident tuition pursuant to Section 68130.5 or pursuant to a similar provision adopted by the Regents of the University of California.
(c) The student is a recipient of a Cal Grant 4 award.
(d) The student is determined by the commission to have unmet need.
(e) The student is enrolled at a campus of the University of California, the California State University, or the California Community Colleges, or at an independent institution of higher education, as defined in Section 66010, that is a qualifying institution as defined in Section 69432.7.
(f) The student agrees to perform the number of hours of community or volunteer service required, pursuant to Section 69438.3, for participation in the program.

SEC. 5.

 Section 69465 of the Education Code is amended to read:

69465.
 (a) For purposes of this article, “dependent child” or “dependent children” means a child or children, as applicable, under 18 years of age whose parent or legal guardian is the student, if the child or all the children collectively receive more than 50 percent of their support from the student.
(b) Commencing with the 2019–20 academic year and each academic year thereafter, the commission shall identify all individuals with a dependent child or dependent children who meet both of the following qualifying criteria for the award year:
(1) The student will receive either a new or renewal Cal Grant 2 or Cal Grant 4 award.
(2) The student will attend a University of California, California State University, or California Community College campus.
(c) Individuals identified by the commission as meeting qualifying criteria pursuant to subdivision (b) and who are receiving a Cal Grant 2 award or Cal Grant 4 award shall receive a total annual access award not to exceed six thousand dollars ($6,000) for nontuition expenses. In the case of a student receiving a Cal Grant 2 award, the student’s total combined award pursuant to this section and Section 70215 shall not exceed six thousand dollars ($6,000). This amount may be adjusted in the annual Budget Act.
(d) Individuals identified by the commission as meeting qualifying criteria pursuant to subdivision (b) and who are receiving a Cal Grant award for occupational and technical training programs, and who would have been eligible for aid under the Cal Grant C Program established under Article 6 (commencing with Section 69439) of Chapter 1.7, as it read on January 1, 2022, shall receive a total annual book and supply award not to exceed four thousand dollars ($4,000). This amount may be adjusted in the annual Budget Act. Consistent with subdivision (e) of Section 69439, awards issued pursuant to this subdivision may be used for living expenses, institutional fees, charges, and other costs, including tuition and training-related costs, such as special clothing, local transportation, and required tools, equipment, supplies, technology, and books.
(e) Notwithstanding any other law, expenses paid with access awards granted pursuant to subdivision (c), and book and supply awards granted pursuant to subdivision (d), shall be considered allowable educational expenses and shall not be considered for purposes of determining eligibility for state public assistance programs.
(f) Notwithstanding any other law, an award provided pursuant to this article shall be excluded from the calculation of the maximum annual award value for purposes of subparagraph (A) of paragraph (3) of subdivision (b) of Section 69432.9.
(g) The usage of awards provided pursuant to this article shall be consistent with existing statutes and regulations governing eligible expenditures.
(h) Notwithstanding subdivisions (c) and (d), both of the following shall apply for purposes of this article:
(1) The amount appropriated in the annual Budget Act, and any other appropriation for purposes of this article, shall not exceed one hundred twenty-five million dollars ($125,000,000).
(2) The commission shall annually determine if the amount appropriated for each fiscal year is sufficient to cover the cumulative cost of the funding projected to be awarded for the fiscal year pursuant to this article. If the commission determines that the amount appropriated is not sufficient to meet the funding projection for a fiscal year, the commission shall reduce awards proportionately by an equal percentage for all new recipients under this article for that fiscal year.

SEC. 6.

 Article 10 (commencing with Section 69470) is added to Chapter 1.7 of Part 42 of Division 5 of Title 3 of the Education Code, to read:
Article  10. Suspension of Chapter Operation

69470.
 This chapter, except for the heading of the chapter as amended by Section 2 of the act that added this article, Article 5.5 (commencing with Section 69438) as amended by Sections 3 and 4 of that act, and Article 9 (commencing with Section 69465) as amended by Section 5 of that act, shall become inoperative on ____, or on the date that the regulations adopted by the commission pursuant to Section 70202 may determine, whichever date is later.

SEC. 7.

 Section 70023.5 is added to the Education Code, immediately following Section 70023, to read:

70023.5.
 This article shall become inoperative on ____, or on the date that the regulations adopted by the commission pursuant to Section 70202 may determine, whichever date is later.

SEC. 8.

 Chapter 5 (commencing with Section 70200) is added to Part 42 of Division 5 of Title 3 of the Education Code, to read:
CHAPTER  5. Cal Grant Reform Act
Article  1. General Provisions

70200.
 (a) This chapter shall be known, and may be cited, as the Cal Grant Reform Act. This chapter continues, without interruption or diminution, the operation of the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established under Chapter 1.7 (commencing with Section 69430) as it read on January 1, 2022, until ____, or the date determined pursuant to regulations adopted by the commission pursuant to Section 70202.
(b) Unless context requires otherwise, the definitions in Section 69432.7, as it read on January 1, 2022, shall apply to this chapter, provided that regulations implementing Article 3 (commencing with Section 70215) and Article 4 (commencing with Section 70220) may adopt or replace those definitions consistent with the purposes and intent of Section 70201 and those articles.

70201.
 (a) 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 Cal Grant Program established pursuant to this chapter shall be as follows:
(1) Commencing with the ____ academic year and every year thereafter, an applicant for a Cal Grant award shall receive an award for payment of tuition or student fees, nontuition costs, or both tuition or student fees and nontuition costs, that is not in excess of the financial need amount determined by the Student Aid Commission commission under regulations adopted pursuant to Section 70202 if the applicant complies with both of the following requirements:
(A) Demonstrates financial need.
(B) Complies with each of the applicable eligibility criteria.
(2) (A) For the public segments of postsecondary education, the maximum Cal Grant award for all institutions shall be no more than the total of mandatory systemwide fees and other costs of attendance for the institution, and for a private nonprofit institution, no more than a specified sum or a percentage of total costs of attendance, not to exceed that total cost of attendance, as determined and annually adjusted as specified by the commission.
(B) As further specified in Section 70205, eligibility for all Cal Grants shall be need based, shall not exceed the calculated financial need of any individual applicant, and shall be determined by the commission based on consideration of all of the following sets of relevant factors:
(i) Circumstances of the household of the student, including determinations regarding the student’s financial independence, and the household’s size, configuration, income and asset levels, and any other circumstances the commission may deem appropriate. The commission shall consider the program income and asset ceilings for Cal Grants A, B, C, and T under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, as determined pursuant to paragraph (1) of subdivision (k) of Section 69432.7, as it read on January 1, 2022, as presumptively appropriate for the initial regulations adopted regarding determinations of Cal Grant eligibility under this chapter.
(ii) The costs of attendance, which may differ for each segment, for the nature of the coursework, and for location, and which may reflect or be adjusted for other factors that the commission may deem appropriate for consideration. In particular, this amount may be adjusted for other sources of tuition assistance or cost subsidy, including waivers of fees granted by the Board of Governors of the California Community Colleges, and other bases considered under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program established under Chapter 1.7 (commencing with Section 69430), as it read on January 1, 2022.
(iii) Any other factor the commission shall deem relevant to determining an equitable award, including, but not necessarily limited to, a mechanism for fairly calculating an expected student contribution toward the costs of attendance.
(3) (A) Notwithstanding subparagraph (B) of paragraph (2), the commission’s regulations adopted pursuant to Section 70202 shall not reduce the amount of grants for which students who have received grants under Chapter 1.7 (commencing with Section 69430) or Article 22 (commencing with Section 70020) of Chapter 2 would have been eligible under those grant programs as they read on January 1, 2022, or as they read on the day before any later date that the commission determines to terminate the operation of those grant programs and provide grants instead pursuant to Article 3 (commencing with Section 70215) and Article 4 (commencing with Section 70220).
(B) An eligible student who satisfies the program income and asset ceilings for the Cal Grant A, B, C, and T Programs that existed under the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, as determined pursuant to paragraph (1) of subdivision (k) of Section 69432.7, as it read on January 1, 2022, shall receive an award for all tuition and student fees for a public postsecondary educational institution.
(C) In addition to the award described in subparagraph (B), an eligible student, including a student who would have been eligible for an award under the Middle Class Scholarship Program, as specified in Section 70022 as it read on January 1, 2022, may receive a supplemental award, pursuant to a formula determined by the commission based on consideration of factors described in subparagraph (B) of paragraph (2).
(b) An institution of higher education in this state that participates in the Cal Grant Program shall not reduce its level of need-based institutional financial aid to undergraduate students, excluding loans, below the total level awarded in the academic year before July 1, 2022, or any later date the commission may determine to commence operation of its regulations pursuant to Section 70202. This subdivision shall not apply to institutions of higher education in any academic year in which state funding for this chapter is less than the previous academic year.
(c) 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.
(d) It is the policy of the State of California that the Cal Grant Program supplement the federal Pell Grant program.
(e) An award under the Cal Grant Program shall not guarantee admission to an institution of higher education or admission to a specific campus or program.

70202.
 (a) The commission shall adopt regulations necessary to implement this chapter, and these regulations shall become operative no sooner than ____. 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. Those emergency regulations shall be deemed necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code.
(b) Regulations pursuant to subdivision (a) shall not affect the application of Chapter 1.7 (commencing with Section 69430) to students already receiving assistance pursuant to that chapter. These regulations shall provide guidance to institutions that assist in applying Chapter 1.7 (commencing with Section 69430) and this chapter during any period of overlap.

Article  2. Cal Grant Reform Act Program Provisions

70205.
 Pursuant to the long-term policy of the Cal Grant Program established pursuant to Section 70201, the commission shall make awards under the Cal Grant Program for payment of tuition or student fees, nontuition costs, or both tuition or student fees and nontuition costs, in accordance with all of the following:
(a) The commission shall determine the maximum household income and asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program. The commission shall set these levels pursuant to income and asset ceiling amounts as defined and adopted in regulations by the commission for each academic year in view of the current costs of attendance at qualifying institutions and the availability of funding for purposes of this chapter for that academic year. The commission shall determine a reasonable student contribution based on appropriate factors, including, but not necessarily limited to, the student’s household income. In making determinations under this subdivision, the commission shall take into consideration the Cal Grant Program Income and Asset Ceilings for Cal Grant A, B, C, and T as specified in paragraph (1) of subdivision (k) of Section 69432.7, as it read on January 1, 2022.
(b) With the funds made available for purposes of this chapter, and in accordance with the long-term policy established under Section 70201, the commission shall determine the amounts of the Cal Grant Program awards to be made for that academic year.
(c) The commission shall determine the timelines and procedures for the application process for awards, as well as the timelines and procedures for the distribution of those awards, under this chapter. In determining those timelines and procedures, the commission shall take into consideration the relevant academic calendars of high schools and postsecondary educational institutions and shall ensure that students and their families have sufficient time to complete the application process and, once the results of that process are known, to make informed decisions about achieving the students’ educational goals with any available Cal Grant award.
(d) As a continuation of the Cal Grant C Program established under Article 6 (commencing with Section 69439) of Chapter 1.7, as it read on January 1, 2022, the commission shall develop and adopt criteria it deems appropriate in selecting students to receive Cal Grants for occupational or technical training programs. The criteria may enable the commission to award a prorated award amount, based on program duration, for a Cal Grant 2 award or Cal Grant 4 award to students enrolled in occupational and technical training programs who would have been eligible for aid under the Cal Grant C Program. The commission shall give special consideration to the social and economic situations of the students applying for these grants, giving additional weight to disadvantaged applicants, applicants who face economic hardship, and applicants who face particular barriers to employment. Criteria to be considered for these purposes shall include, but are not necessarily limited to, both of the following:
(1) The factors considered pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 70201, including family income and household size and other relevant features of the applicant’s or the applicant’s parent’s household status, including whether the applicant is a single parent or child of a single parent.
(2) The employment status of the applicant and whether the applicant is unemployed, giving greater weight to the long-term unemployed.

70206.
 (a) As a condition for its voluntary participation in the Cal Grant Program, each Cal Grant participating institution shall annually report to the commission, and as further specified in an institutional participation agreement, both of the following for its undergraduate programs:
(1) Enrollment, persistence, and graduation data for all students, disaggregated by race and financial aid recipient status.
(2) The job placement rate and salary and wage information for each program that is either designed or advertised to lead to a particular type of job or advertised or promoted with a claim regarding job placement.
(b)  As a condition for participation in the Cal Grant program, Program, a participating institution shall submit an annual report to the Department of Finance and the Legislature on the uses of its institutional aid, and how the average financial aid award packages compare to the total cost of attendance at that institution. A participating institution shall include in the report submitted pursuant to this subdivision the enrollment, persistence, and graduation data reported to the commission under paragraph (1) of subdivision (a).
(c) The commission shall provide both of the following on its internet website:
(1) The information submitted by a Cal Grant participating institution pursuant to subdivision (a), which shall be made available in a searchable database.
(2) Other information and links that are useful to students and parents who are in the process of selecting a college or university. This information may include, but not necessarily be limited to, local occupational profiles available through the Employment Development Department’s Labor Market Information Data Library.

70207.
 To be eligible for a Cal Grant Program 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, as amended from time to time (20 U.S.C. Sec. 1070 et seq.).
(b) A resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000). The recipient shall remain eligible for award renewal only if the recipient is a California resident, and is attending, and making satisfactory academic progress at, a qualifying institution, as determined by the commission.
(c) In compliance with all applicable Selective Service registration requirements.
(d) Not incarcerated.
(e) Not in default on any student loan within the meaning of Section 69507.5.

70208.
 (a) Except as otherwise provided in this section, Cal Grant awards may be renewed for a total of the equivalent of four years of full-time attendance in an undergraduate program, provided that minimum financial need continues to exist. Notwithstanding any other law, age limits applicable to Cal Grant Program award recipients under Chapter 1.7 (commencing with Section 69430) shall not apply to Cal Grant Reform Act award recipients under this chapter.
(b) Cal Grant awards for summer terms shall not be subject to, or count against, the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant award renewals, as described in subdivision (a).
(c) For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant awards may be renewed for a total of five years of full-time attendance, provided that minimum financial need continues to exist.
(d) (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 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 minimum 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.
(3) A student’s Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an award for purposes of this subdivision.
(e) (1) For a current or former foster youth, Cal Grant awards may be renewed for a total of the equivalent of eight years of full-time attendance in an undergraduate program, provided that financial need continues to exist and other eligibility criteria are satisfied.
(2) For purposes of this subdivision, “current or former foster youth” means a person whose dependency was established or continued by the court on or after the date on which the person reached 13 years of age.

70209.
 (a) 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 Commission on Teacher Credentialing. 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 high-priority school, as defined in paragraph (3) of subdivision (c) of Section 44510, for each two thousand dollar 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 the recipient’s 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 those used under Chapter 1.7 (commencing with Section 69430) as it read on January 1, 2022.

Article  3. Cal Grant 2 Program

70215.
 (a) The Cal Grant 2 Program is established for students enrolled in a degree, certificate, or transfer program at a campus of the California Community Colleges.
(b) To be eligible for an award under the Cal Grant 2 Program, a community college student shall comply with all of the following conditions:
(1) Qualify as a California resident or qualify for a waiver of nonresident tuition under Section 68130.5.
(2) Submit a Free Application for Federal Student Aid or a California Dream Act application on or before September 2 of the year immediately preceding the award year.
(3) Enroll at a campus, or a combination of campuses, of the California Community Colleges as at least a half-time student, and maintain satisfactory academic progress within the meaning of the federal Higher Education Act of 1965 (Public Law 89-329, as amended).
(4) Establish eligibility based on a student’s household income or other circumstances that would qualify the student for a maximum federal Pell Grant award under Section 401 of the federal Higher Education Act of 1965.
(c) (1) A Cal Grant 2 award shall include an access award, covering nontuition expenses, of no less than the per-student amount provided in the 2020–21 award year in the first award year. Except as provided in paragraph (2), that amount shall be adjusted in subsequent award years in proportion to the growth, if any, of the California Consumer Price Index as calculated by the Department of Industrial Relations.
(2) The Director of Finance may suspend the adjustment of the Cal Grant 2 access award for the succeeding award year if, in the determination of the director, the May Revision projects a state budget deficit for that succeeding award year.

Article  4. Cal Grant 4 Program

70220.
 (a) The Cal Grant 4 Program is established for students enrolled in any institution, other than a community college, meeting the definition of “qualifying institution” in subdivision (l) of Section 69432.7 as it read on January 1, 2022.
(b) To be eligible for an award under the Cal Grant 4 Program, a student shall comply with all of the following:
(1) Qualify as a California resident or qualify for a waiver of nonresident tuition under Section 68130.5.
(2) Submit a Free Application for Federal Student Aid or a California Dream Act application on or before March 2 of the year immediately preceding the award year.
(3) Verify, from a high school or community college transcript, that the student has a grade point average of 2.0 or greater on a 4.0 point scale.
(4) Enroll at a qualifying institution, as defined in subdivision (l) of Section 69432.7 as it read on January 1, 2022, as at least a half-time student, and maintain satisfactory academic progress within the meaning of the federal Higher Education Act of 1965 (Public Law 89-329, as amended).
(5) Have a household income below the percentage of the federal poverty level applicable to the student, as specified in the following table, based on the status and size of the student’s household:
Student Household Status and SizePercentage of federal poverty level for Cal Grant 4 Program Qualification
A dependent student with married parents and an independent, married student without a dependent225 percent
A dependent student with a single parent and an independent, single student without a dependent275 percent
An independent, married student with a dependent300 percent
An independent, single student with a dependent350 percent
(c) The amount of the annual Cal Grant 4 award shall be based on the institution at which the recipient student is enrolled, in accordance with the following:
(1) For a student enrolled at a campus of the University of California, the cost of tuition and mandatory systemwide fees.
(2) For a student enrolled at a campus of the California State University, the cost of tuition and mandatory systemwide fees.
(3) For a student enrolled at a private nonprofit institution, nine thousand eighty-four dollars ($9,084).
(4) For a student enrolled at a for-profit institution accredited by the Western Association of Schools and Colleges (WASC), eight thousand fifty-six dollars ($8,056).
(5) For a student enrolled at a for-profit institution that is not accredited by WASC, four thousand dollars ($4,000).

Article  5. Operative Date

70240.
 Article 2 (commencing with Section 70205), Article 3 (commencing with Section 70215), and Article 4 (commencing with Section 70220) of this chapter shall become operative for students to apply for aid beginning October 1, 2022, and to receive aid for the 2023–24 academic year.

SEC. 9.

 (a) The Trustees of the California State University shall, and the Regents of the University of California are requested to, adopt a statement of policy on or before ____, on how their institutional aid programs address student basic needs and how these institutional funds are prioritized for disbursement.
(b) It is the intent of the Legislature, in partnership with the University of California and California State University, that the University of California and the California State University continue to use system- and campus-based resources to support students’ nontuition costs, to lower student costs wherever possible, and to assist students in accessing other federal, state, and local programs that provide need-based supports.
(c) It is the intent of the Legislature that institutional aid programs address tuition and fee assistance for highest need students when other coverage is not available, prioritize addressing nontuition costs serving the highest need students first, and support students who are not as needy if funding permits.
(d) It is the intent of the Legislature that the University of California and the California State University do not supplant their undergraduate institutional need-based aid for students with the funds provided pursuant to this act and, to the extent possible, maintain institutional aid funding amounts at a level that is equal to the level maintained during the 2021–22 academic year.
(e) (1) The University of California, the California State University, private nonprofit and for-profit institutions of higher education, and community college districts whose students receive Cal Grant aid shall report all of the following to the Department of Finance, the Legislative Analyst’s Office, and the higher education policy and fiscal committees of the Legislature for each academic year, starting with the 2021–22 academic year, by March 31 of the subsequent academic year:
(A) The number and percentage of students who received Cal Grants.
(B) The average total of federal, state, and institutional aid provided to financial aid eligible students.
(C) The weighted average total cost of attendance at their respective institutions.
(D) The proportion of total cost of attendance covered by federal, state, and institutional aid for their students, for each of the following student household income ranges:
(i) Zero dollars ($0) to thirty thousand dollars ($30,000).
(ii) Thirty thousand and one dollars ($30,001) to forty-eight thousand dollars ($48,000).
(iii) Forty-eight thousand and one dollars ($48,001) to seventy-five thousand dollars ($75,000).
(iv) Seventy-five thousand and one dollars ($75,001) to one hundred thousand dollars ($100,000).
(v) One hundred thousand and one dollars ($100,001) and above.
(E) A description of efforts made by the systems and campuses to lower student costs and the number of students impacted, when possible.
(F) A description of efforts made by the systems and campuses to help students access federal, state, and local programs that provide need-based supports, and the number of students impacted, when possible.
(2) The University of California and the California State University may report the information required in subparagraphs (A) to (D), inclusive, of paragraph (1) as part of the annual reports on their respective institutional financial aid programs provided pursuant to Section 66021.1 of the Education Code.
(f) It is the intent of the Legislature to enact future legislation that would appropriate funds for purposes of the Cal Grant 2 Program, Program and Cal Grant 4 Program, established pursuant to Chapter 5 (commencing with Section 70200) of Part 42 of Division 5 of Title 3 of the Education Code, specifically including provisions that would do all of the following:
(1) Revise eligibility requirements for a Cal Grant 2 award or Cal Grant 4 award so that all students with household incomes qualifying for a federal Pell Grant award would be eligible for a Cal Grant 2 award or Cal Grant 4 award.
(2) Increase the base award amount for the Cal Grant 2 award to two thousand five hundred dollars ($2,500), and adjust the amount in subsequent award years in proportion to the growth, if any, of the California Consumer Price Index as calculated by the Department of Industrial Relations.
(3) Establish a statutory formula award for the Cal Grant 4 award available to students enrolled at private, nonprofit institutions of higher education, as well as and additional eligibility for students to receive a Cal Grant 2 award or a Cal Grant 4 award for two summer terms without impacting their lifetime eligibility for Cal Grant awards during the traditional academic year.

SEC. 10.

 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.