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AB-2184 Student financial aid: Cal Grant C and Cal Grant 2.(2023-2024)

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Date Published: 02/07/2024 09:00 PM
AB2184:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2184


Introduced by Assembly Members Davies and Chen
(Principal coauthor: Assembly Member Alanis)

February 07, 2024


An act to amend Sections 69409, 69424, 69432, and 69439 of the Education Code, relating to student financial aid.


LEGISLATIVE COUNSEL'S DIGEST


AB 2184, as introduced, Davies. Student financial aid: Cal Grant C and Cal Grant 2.
(1) Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Expanded Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for these awards for participating students attending qualifying institutions. Existing law requires a Cal Grant C award to be used only for occupational or technical training in a course of not less than 4 months. Existing law requires the maximum per-student Cal Grant C award amount to be determined each year in the annual Budget Act.
This bill, upon appropriation in the annual Budget Act for this purpose, would set, commencing with the 2025–26 award year, the maximum per-student Cal Grant C award amount at no less than double the maximum per-student Cal Grant C award amount provided for the 2023–24 award year.
(2) Existing law, the Cal Grant Reform Act, revises and recasts the provisions establishing and governing the existing Cal Grant Program into a new Cal Grant Program. Existing law authorizes the commission to adopt emergency regulations to implement the Cal Grant Reform Act. Existing law requires the new Cal Grant Program to include a Cal Grant 2 Program with eligibility requirements, as specified. Existing law requires the Cal Grant 2 award to include an access award, covering nontuition expenses, of no less than the maximum per-student amount provided in the 2020–21 award year, as specified. Existing law requires, as a continuation of the Cal Grant C Program, an otherwise eligible student enrolled in a qualifying occupational and technical training program who would have been eligible for aid under the Cal Grant C Program, to be eligible to receive a prorated Cal Grant award as specified in the Budget Act. Existing law specifies that the act becomes operative only if General Fund moneys over the multiyear forecasts beginning in the 2024–25 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the act.
This bill would require the prorated Cal Grant award and the per-student Cal Grant 2 access award amounts to be no less than double the maximum award amounts provided for the 2023–24 award year.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 69409 of the Education Code is amended to read:

69409.
 Pursuant to the long-term policy of the Cal Grant Reform Act Program established pursuant to Section 69407, 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 the following:
(a) The commission shall determine the timelines and procedures for the application process for awards, and 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.
(b) (1) 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 December 31, 2022, an otherwise eligible student enrolled in a qualifying occupational and technical training program who would have been eligible for aid under the Cal Grant C Program, shall be eligible to receive a prorated Cal Grant award as specified in the Budget Act. The maximum award amount for this prorated Cal Grant award shall be no less than double the maximum award amount for a Cal Grant C award provided for the 2023–24 award year.
(2) A qualifying occupational and technical training program shall be defined and determined based on the criteria established under Article 6 (commencing with Section 69439) of Chapter 1.7, as it read on December 31, 2022.

SEC. 2.

 Section 69424 of the Education Code is amended to read:

69424.
 (a) The Cal Grant 2 Program is established for students enrolled at a campus of the California Community Colleges in a for-credit instructional program leading to a degree, certificate, or transfer.
(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) Meet all requirements for Cal Grant eligibility pursuant to Section 69411.
(3) 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.
(4) 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).
(5) Have a household income below the percentage of the federal poverty level, as adjusted annually by the federal government, 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 2 Program Qualification
A dependent student with married parents and an independent student without a dependent275 percent
A dependent student with a single parent325 percent
An independent, married student with a dependent350 percent
An independent, single student with a dependent400 percent
(c) (1) A Cal Grant 2 award shall include an access award, covering nontuition expenses, of no less than double the maximum per-student amount provided in the 2020–21 2023–24 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 would occur without budgetary actions for that succeeding award year.
(d) Any recipient of the Cal Grant 2 award is also eligible for an award pursuant to Sections 69465 and 69470, if they meet criteria described in those sections.

SEC. 3.

 Section 69432 of the Education Code is amended to read:

69432.
 (a) (1) Cal Grant Program awards shall be known as “Cal Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,” “California Community College Expanded Entitlement Awards,” “California Community College Transfer Entitlement Awards,” “Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,” and “Cal Grant T Awards.”
(2) For purposes of this section, “associate degree for transfer commitment” means a commitment by an independent institution of higher education that chooses to accept the California Community College associate degree for transfer pursuant to Section 66749.6.
(b) Maximum (1) Except as provided in paragraph (2), maximum award amounts for students at independent institutions of higher education, private for-profit postsecondary educational institutions, and for Cal Grant C and T awards shall be identified in the annual Budget Act. Maximum award amounts for Cal Grant A and B awards for students attending public institutions shall be referenced in the annual Budget Act.
(2) Notwithstanding paragraph (1), upon appropriation in the annual Budget Act for this purpose, commencing with the 2025–26 award year, the maximum award amount for a Cal Grant C award shall be no less than double the maximum award amount for a Cal Grant C award provided for the 2023–24 award year.
(c) (1) Notwithstanding subdivision (b), and subdivision (c) of Section 66021.2, commencing with the 2013–14 award year, the maximum tuition award amounts for Cal Grant A and B awards for students attending private for-profit postsecondary educational institutions shall be four thousand dollars ($4,000).
(2) Notwithstanding paragraph (1) of this subdivision, subdivision (b) of this section, and subdivision (c) of Section 66021.2, commencing with the 2018–19 award year, the maximum tuition award amounts for Cal Grant A and B awards for students attending private for-profit postsecondary educational institutions accredited by the Western Association of Schools and Colleges shall be nine thousand eighty-four dollars ($9,084) for new recipients, unless otherwise specified in the Budget Act of 2018.
(d) Notwithstanding subdivision (b) of this section, and subdivision (c) of Section 66021.2, the maximum tuition award amounts for Cal Grant A and B awards for students attending independent institutions of higher education shall be as follows:
(1) For the 2015–16 to 2020–21 award years, inclusive, nine thousand eighty-four dollars ($9,084) for new recipients.
(2) For the 2021–22 award year, nine thousand two hundred twenty dollars ($9,220) for new recipients.
(3) For the 2022–23 and 2023–24 award years, nine thousand three hundred fifty-eight dollars ($9,358) for new recipients.
(4) For the 2024–25 award year and each year thereafter:
(A) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year meets or exceeds the target specified in subdivision (h), nine thousand three hundred fifty-eight dollars ($9,358) for new recipients.
(B) If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year is less than the target specified in subdivision (h), eight thousand fifty-six dollars ($8,056) for new recipients.
(e) (1) The renewal award amount for a student whose initial award is subject to a maximum award amount specified in this section shall be calculated pursuant to paragraph (2) of subdivision (a) of Section 69433.
(2) Notwithstanding paragraph (1) of this subdivision, and paragraph (2) of subdivision (a) of Section 69433, the maximum tuition award amounts for Cal Grant A and B awards for students attending independent institutions of higher education shall be nine thousand three hundred fifty-eight dollars ($9,358) for renewal recipients, if the student first received a new award before the 2022–23 award year.
(f) It is the intent of the Legislature that independent institutions of higher education make a good faith effort to make the process for transferring from the California Community Colleges easier for resident students and a decision determining the maximum award amounts made pursuant to this section for students attending an independent institution of higher education will be made with consideration of the effort of the institution to make that process easier.
(g) The association representing the largest number of independent institutions of higher education shall submit a report relative to the implementation of this section to the Department of Finance and the Legislature, in conformity with Section 9795 of the Government Code, on or before April 15 of each year.
(h) (1) For the 2024–25 award year and each award year thereafter, the target number of new unduplicated recipients accepted by independent institutions of higher education who have been given associate degree for transfer commitments shall be equal to the number of new transfer students attending independent institutions of higher education who were given associate degree for transfer commitments in the prior award year, adjusted by the percentage change in the total number of new transfer students from the year two years prior, compared to the prior year.
(2) Notwithstanding paragraph (1), it is the intent of the Legislature that the target number of new unduplicated recipients accepted by independent institutions of higher education who have been given associate degree for transfer commitments will increase each year.
(i) For purposes of this section, “independent institution of higher education” has the same meaning as in Section 66010.

SEC. 4.

 Section 69439 of the Education Code is amended to read:

69439.
 (a) For the purposes of this section, the following terms have the following meanings:
(1) “Career pathway” has the same meaning as set forth in Section 88620.
(2) “Economic security” has the same meaning as set forth in Section 14005 of the Unemployment Insurance Code.
(3) “Industry cluster” has the same meaning as set forth in Section 88620.
(4) “Long-term unemployed” means, with respect to an award applicant, a person who has been unemployed for more than 26 weeks at the time of submission to the commission of his or her the person’s application.
(5) “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.
(b) (1) A Cal Grant C award shall be utilized used 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 Except as provided in paragraph (2), the maximum award amount and the total amount of funding shall be determined each year in the annual Budget Act.
(2) Notwithstanding paragraph (1), upon appropriation in the annual Budget Act for this purpose, commencing with the 2025–26 award year, the maximum award amount for a Cal Grant C award shall be no less than double the maximum award amount for a Cal Grant C award provided for the 2023–24 award year.
(c) The commission may use criteria it deems appropriate in selecting students to receive grants for occupational or technical training and 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 limited to, all of the following:
(1) Family income and household size.
(2) Student’s or the students’ parent’s household status, including whether the student is a single parent or child of a single parent.
(3) The employment status of the applicant and whether the applicant is unemployed, giving greater weight to the long-term unemployed.
(d) The Cal Grant C award 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. A determination by the commission for a subsequent award year that the program under which a Cal Grant C award was initially awarded is no longer deemed to receive priority shall not affect an award recipient’s renewal. In no case shall the grants exceed two calendar years.
(e) Cal Grant C awards may be used for institutional fees, charges, and other costs, including tuition, plus training-related costs, such as special clothing, local transportation, required tools, equipment, supplies, technology, books, and living expenses. In determining the individual award amounts, the commission shall take into account the financial means available to the student to fund his or her the student’s course of study and costs of attendance as well as and other state and federal programs available to the applicant.
(f) (1) To ensure alignment with the state’s dynamic economic needs, the commission, in consultation with appropriate state and federal agencies, including the Economic and Workforce Development Division of the Office of the Chancellor of the California Community Colleges and the California Workforce Investment Board, shall identify areas of occupational and technical training for which students may utilize use Cal Grant C awards. The commission, to the extent feasible, shall also consult with representatives of the state’s leading competitive and emerging industry clusters, workforce professionals, and career technical educators, to determine which the occupational training programs and industry clusters that should be prioritized.
(2) (A) Except as provided in subparagraph (B), the areas of occupational and technical training developed pursuant to paragraph (1) shall be regularly reviewed and updated at least every five years, beginning in 2012.
(B) By January 1, 2016, the commission shall update the priority areas of occupational and technical training.
(3) (A) The commission shall give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet two of the following criteria pertaining to job quality:
(i) High employer need or demand for the specific skills offered in the program.
(ii) High employment growth in the occupational field or industry cluster for which the student is being trained.
(iii) High employment salary and wage projections for workers employed in the occupations for which they are being trained.
(iv) The occupation or training program is part of a well-articulated career pathway to a job providing economic security.
(B) To receive priority pursuant to subparagraph (A), at least one of the criteria met shall be specified in clause (iii) or (iv) of that subparagraph.
(g) The commission shall determine areas of occupational or technical training that meet the criteria described in paragraph (3) of subdivision (f) in consultation with the Employment Development Department, the Economic and Workforce Development Division of the Office of the Chancellor of the California Community Colleges, and the California Workforce Investment Board using projections available through the Labor Market Information Data Library. The commission may supplement the analyses of the Employment Development Department’s Labor Market Information Data Library with the labor market analyses developed by the Economic and Workforce Development Division of the Office of the Chancellor of the California Community Colleges and the California Workforce Investment Board, as well as and the projections of occupational shortages and skills gap developed by industry leaders. The commission shall publish, and retain, on its Internet Web site internet website a current list of the areas of occupational or technical training that meet the criteria described in paragraph (3) of subdivision (f), and update this list as necessary.
(h) Using the best available data, the commission shall examine the graduation rates and job placement data, or salary data, of eligible programs. Commencing with the 2014–15 academic year, the commission shall give priority to Cal Grant C award applicants seeking to enroll in programs that rate high in graduation rates and job placement data, or salary data.
(i) (1) The commission shall consult with the Employment Development Department, the Office of the Chancellor of the California Community Colleges, the California Workforce Investment Board, and the local workforce investment boards to develop a plan to publicize the existence of the grant award program to California’s long-term unemployed to be used by those consulting agencies when they come in contact with members of the population who are likely to be experiencing long-term unemployment. The outreach plan shall use existing administrative and service delivery processes making use of existing points of contact with the long-term unemployed. The local workforce investment boards are required to participate only to the extent that the outreach efforts are a part of their existing responsibilities under the federal Workforce Investment Act of 1998 (Public Law 105-220).
(2) The commission shall consult with the Workforce Services Branch of the Employment Development Department, the Office of the Chancellor of the California Community Colleges, the California Workforce Investment Board, and the local workforce investment boards to develop a plan to make students receiving awards aware of job search and placement services available through the Employment Development Department and the local workforce investment boards. Outreach shall use existing administrative and service delivery processes making use of existing points of contact with the students. The local workforce investment boards are required to participate only to the extent that the outreach efforts are a part of their existing responsibilities under the federal Workforce Investment Act of 1998 (Public Law 105-220).
(j) (1) The Legislative Analyst’s Office shall submit a report to the Legislature on the outcomes of the Cal Grant C program on or before April 1, 2019. This report shall include, but not necessarily be limited to, information on all of the following:
(A) The age, gender, and segment of attendance for recipients in two prior award years.
(B) The occupational and technical training program categories prioritized.
(C) The number and percentage of students who received selection priority as defined in paragraph (3) of subdivision (f).
(D) The extent to which recipients in these award years were successfully placed in jobs that meet local, regional, or state workforce needs.
(2) For the report submitted pursuant to paragraph (1), the Legislative Analyst’s Office shall include data for two additional prior award years and shall compare the mix of occupational and technical training programs and institutions in which Cal Grant C award recipients enrolled before and after implementation of subdivision (f).
(3) Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2021, and on or before April 1 of each odd-numbered year thereafter, that includes the information specified in paragraph (1).
(4) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.