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AB-2563 Student financial aid: Cal Grant B and Cal Grant C awards: financial aid book advance program. (2017-2018)

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Date Published: 03/23/2018 09:00 PM
AB2563:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2563


Introduced by Assembly Member Patterson

February 15, 2018


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


LEGISLATIVE COUNSEL'S DIGEST


AB 2563, as amended, Patterson. Student financial aid: Cal Grant B and Cal Grant C awards: financial aid book advance program.
Existing law, known as the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes, among other programs, the Cal Grant B program and the Cal Grant C Program under the administration of the Student Aid Commission and establishes eligibility requirements for awards under those programs.
This bill, beginning with the 2019–20 academic year, would require each Cal Grant participating institution, as a condition of its voluntary participation in the Cal Grant Program, to implement a financial aid book advance program that would provide a line of credit at the institution’s campus bookstore to students receiving Cal Grant B or B, Cal Grant C awards C, federal Pell Grant, or other financial aid dispersed to the student for educational expenses for the purchase of books and educational materials before the Cal Grant B or Cal Grant C funds are disbursed to the student. The bill would provide for a reduction in the amount of these grant funds disbursed to a student based on the amount of credit expended by the student at the institution’s campus bookstore and would provide for reimbursement to the institution’s campus bookstore for the amount of the credit expended by the student. The bill would exempt an institution that does not have a campus bookstore from these requirements.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

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

69432.2.
 Beginning in the 2019–20 academic year, as a condition of its voluntary participation in the Cal Grant Program, a Cal Grant participating institution shall implement a financial aid book advance program for students who are awarded Cal Grant B or B, Cal Grant C awards C, or federal Pell Grant awards, or other financial aid awards dispersed by the institution for education expenses, in accordance with all of the following:
(a) (1) At least one week before classes are scheduled to begin until one day before the institution’s financial aid census date, the institution shall provide a line of credit at the institution’s campus bookstore to a student receiving a Cal Grant B or B, Cal Grant C award an amount equal to the amount of the award or an amount equal to the maximum amount authorized to be expended for books and educational materials, as applicable, at the institution’s campus bookstore. C, or federal Pell Grant award, or other financial aid award dispersed by the institution for educational expenses.
(2) If a source of the line of credit is a Cal Grant B or Cal Grant C award, the amount of this line of credit shall equal the portion of the award not used for tuition and fees.
(3) If a source of the line of credit is a federal Pell Grant award or other financial aid award not described in paragraph (2) dispersed by the institution for educational expenses, the amount of this line of credit shall not exceed a maximum amount established by the institution for purposes of this section.
(b) The campus bookstore shall authorize the student to purchase books and educational materials during the period specified in subdivision (a) up to the amount credited of the line of credit established pursuant to subdivision (a).
(c) A student may purchase books and educational materials using the line of credit established pursuant to subdivision (a) up to the amount authorized pursuant to subdivision (a) and shall not exceed the amount of the credit. (a).
(d) The campus bookstore shall report the amount of the credit expended by the student pursuant to subdivision (c) to the institution’s financial aid office.
(e) The institution, in accordance with its own financial aid disbursement policy as set forth in the Institutional Participation Agreement with the Student Aid Commission, shall reduce do one of the following:
(1) Reduce the amount of the student’s Cal Grant B or Cal Grant C award balance by the amount of credit expended by the student pursuant to subdivision (c) from the student’s Cal Grant B or Cal Grant C award, and reported by the campus bookstore pursuant to subdivision (d).
(2) Reduce the amount of the student’s federal Pell Grant or other financial aid award not described in paragraph (2) dispersed by the institution for educational expenses by the amount expended by the student pursuant to subdivision (c) from these respective sources of funds, and reported by the campus bookstore pursuant to subdivision (d).
(f) The institution shall reimburse the campus bookstore in an amount equal to the amount of credit expended by the student at the campus bookstore as reported pursuant to subdivision (d). If, subsequent to the student purchasing educational materials, including, but not limited to, textbooks, pursuant to this section, the amount of a financial aid award described in this section is lower, due to changes in the student’s eligibility status, than the line of credit provided by the institution for the award, the institution may reimburse the campus bookstore for the difference in these amounts pursuant to an agreement between the institution and the bookstore.
(g) An institution that does not have a campus bookstore is exempt from the requirements of this section.