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 (a) The trustees shall develop and implement a California Promise program that complies with this part.

(b) Commencing with the 2017–18 academic year, a minimum of eight campuses shall have established a California Promise program by which the campus enters into a pledge with a qualifying student who is enrolled at the campus and who is not a transfer student to support the student in earning a baccalaureate degree within four academic years of the academic year of the student’s first year of enrollment.

(c) Commencing with the 2017–18 academic year, a minimum of 15 campuses shall have established a California Promise program by which the campus enters into a pledge with a qualifying transfer student to support the student in earning a baccalaureate degree within two academic years of the student’s first year of enrollment to the campus, as applicable.

(d) Commencing with the 2018–19 academic year, a minimum of 20 campuses shall have established a California Promise program by which the campus enters into a pledge with a qualifying transfer student to support the student in earning a baccalaureate degree within two academic years of the student’s first year of enrollment to the campus, as applicable.

(e) To be a qualifying entering student or transfer student at the California State University, a student shall comply with both all of the following:

(1) Be a California resident for purposes of in-state tuition eligibility.

(2) Commit to completing at least 30 semester units or the quarter equivalent per academic year. Units completed by the student during a summer term may count towards the previous or following academic year as determined by the trustees.

(f) Each California Promise program shall be reviewed by a graduation initiative advisory committee of the campus or a committee with similar functions designated by the president of the campus.

(g) (1) A campus shall guarantee participation in the program to, at a minimum, any student who is any of the following:

(A) A low-income student. For purposes of this section, “low-income student” shall have the same meaning as specified in Section 89295.

(B) A student who has graduated from a high school located in a community that is underrepresented in college attendance.

(C) A student who is a first-generation college student.

(D) A transfer student.

(2) It is the intent of the Legislature that the California Promise program at each campus accommodate as many students into the program as feasible and in consideration of available funding.

(h) Support provided by a California State University campus to a student who participates in the California Promise program shall include, but not necessarily be limited to, both of the following:

(1) (A) Priority registration in coursework.

(B) For purposes of this paragraph, a student shall not receive priority registration in coursework under the program if the student qualifies for priority registration under another policy or program, as determined by the campus or the Office of the Chancellor of the California State University.

(C) A graduation initiative advisory committee of the campus, or a committee with similar functions designated by the president of the campus, shall consider pre-existing preexisting priority registration policies when implementing this section.

(2) Academic advisement that includes monitoring the student’s academic progress.

(i) (1) The trustees shall develop application criteria, administrative guidelines, and additional requirements, including how campuses will measure student success, for purposes of implementing and administering the California Promise program.

(2) As a condition of continued participation in a California Promise program, a student may be required to demonstrate both of the following:

(A) Completion of at least 30 semester units, or the quarter equivalent, in each prior academic year.

(B) Attainment of a grade point average in excess of a standard established by the campus.

(3) In implementing this part, the trustees shall take into consideration the report on graduation rates required pursuant to Item 6610-001-0001 of Section 2.00 of the Budget Act of 2016.

(j) (1) The Student Success and On-time Completion Fund is established in the State Treasury.

(2) (A) Moneys in the fund may be used by the trustees, upon appropriation by the Legislature, to incentivize participation in a campus’ California Promise program by providing one or both of the following types of grants:

(i) A Summer Term Grant, which may be awarded to a qualified student who participates in the California Promise program to cover the cost to take up to six units or two courses, whichever is greater, during a summer term during the student’s academic career. A student may use the grant to cover the cost of taking one course in two summer terms, or two courses in one summer term.

(ii) An On-Track Progress Grant, of up to two thousand dollars ($2,000), which may be awarded at the beginning of each academic year to a qualified student who participates in the California Promise program at the completion of each academic year. program. The purpose of the grant award shall be to provide those students with additional financial aid to offset the total cost of education, including the costs of housing, textbooks, and transportation.

(B) For purposes of this paragraph, “qualified student” means a student who is eligible for a Cal Grant award or federal Pell Grant award after filing a Free Application for Federal Student Aid or a California Dream Act Application.

(3) The trustees may select any combination of the two financial incentives as identified in subparagraph (A) of paragraph (2) for each campus with a California Promise program, at their discretion.

(k) Commencing July 1, 2020, a California Promise student who cannot complete a baccalaureate degree program within four academic years of the academic year of the student’s first year of enrollment, or a participating transfer student who cannot complete a baccalaureate degree program within two academic years of the student’s first year of enrollment to the campus, as applicable, because a required course for the degree program is not offered or is full at the campus, shall not be charged systemwide tuition or fees, as applicable, otherwise required to register and enroll in the course, once the course becomes available, or in a substitute course that fulfills the graduation requirement.

(l) (1) The trustees shall submit a report to the appropriate policy and fiscal committees of the Legislature by July 1, 2021, that includes all of the following:

(A) The number of students participating in the program in total, by campus, and disaggregated based on the following:

(i) Whether the student entered as a first-time freshman or a transfer student.

(ii) Whether the student is a first-generation college student.

(iii) Whether the student is a recipient of financial aid under the Federal Pell Grant Program (20 U.S.C. Sec. 1070a) or the Cal Grant Program established in Chapter 1.7 (commencing with Section 69430) of Part 42.

(iv) According to the student’s ethnicity.

(B) The total number of students who graduated in four academic years for students who entered as first-time freshmen, and two academic years, for students who entered as transfer students, in total, by campus, and disaggregated based on the characteristics identified in clauses (i) to (iv), inclusive, of subparagraph (A).

(2) The report required by paragraph (1) shall include a summary description of significant differences in the implementation of the California Promise program at each campus.

(m) The trustees shall submit recommendations to the appropriate policy and fiscal committees of the Legislature by March 15, 2017, regarding potential financial incentives that could benefit students who participate in the California Promise program.

(n) A student who successfully completes an associate degree for transfer at a community college shall be guaranteed participation in the California Promise program at the California State University transfer campus, if established.

(o) The trustees shall make every effort to close the achievement gap and encourage broad participation in a California Promise program that reflects the demographic populations served by the campus.