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AB-2027 Student financial aid: College Access Tax Credit Fund: community college student transfers: partnered Historically Black Colleges and Universities.(2023-2024)

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Date Published: 04/16/2024 09:00 PM
AB2027:v98#DOCUMENT

Amended  IN  Assembly  April 16, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2027

Introduced by Assembly Member Gipson

February 01, 2024

An act to amend Section 69840 of the Education Code, relating to student financial aid, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 2027, as amended, Gipson. Student financial aid: College Access Tax Credit Fund: community college student transfers: partnered Historically Black Graduate Professional Schools. Colleges and Universities.
Existing law governing the taxation of insurers, the Personal Income Tax Law and the Corporation Tax Law, allow various credits against the taxes imposed by those laws, including a credit, for taxable years beginning on or after January 1, 2017, and before January 1, 2028, equal to 50% of a contribution to the College Access Tax Credit Fund, as provided. Existing law provides that moneys in the College Access Tax Credit Fund shall be allocated first to the General Fund, then, upon appropriation, to specified agencies for administrative costs related to this credit, and lastly continuously appropriated to the commission for awarding postsecondary costs, as defined, of qualifying community college student transfers to regionally accredited certain Historically Black Colleges and Universities that Universities (HBCUs). Existing law requires those HBCUs to be “partnered” HBCUs, defined as regionally accredited HBCUs that satisfy certain cohort default rate and graduation rate requirements and that have associate degree for transfer memoranda of understanding on file with the office of the Chancellor of the California Community Colleges.
This bill would require additionally authorize the use of the College Access Tax Credit Fund moneys continuously appropriated to the commission to also be used for awards for qualifying community college student transfers to certain Historically Black Graduate Professional Schools that are physically located in California and offer undergraduate studies. partnered nonprofit colleges and universities in California that were listed as “Black-serving” in a specified report and that offer 4-year baccalaureate degree programs that are primarily focused on health sciences education. The bill would make an appropriation by expanding the purposes for which moneys are used in a continuously appropriated fund. The bill would limit “postsecondary costs” for purposes of these awards to undergraduate education costs.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 69840 of the Education Code is amended to read:

69840.
 (a) As used in this section, the following definitions apply:
(1) “Chancellor’s office” means the office of the Chancellor of the California Community Colleges.
(2) “Fund” means the College Access Tax Credit Fund established pursuant to Section 17053.87 of the Revenue and Taxation Code.
(3) “HBCUs” means the colleges and universities that are either of the following:
(A) Listed as “Historically Black Colleges and Universities” by the National Center for Education Statistics.

(B)Historically Black Graduate Professional Schools identified under the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1063b) that are physically located in California and offer undergraduate studies.

(B) Colleges and universities that were listed as “Black-serving” in the National Center for Education Statistics’ November 2007 Postsecondary Education Descriptive Analysis Report entitled “Characteristics of Minority-Serving Institutions and Minority Undergraduates Enrolled in These Institutions” (National Center for Education Statistics 2008-156), and satisfy all of the following:
(i) Are nonprofit institutions.
(ii) Offer four-year baccalaureate degree programs that are primarily focused on health sciences education.
(iii) Are physically located in California.
(4) “Participating students” means students who have completed the associate degree for transfer pathway, are enrolled at a partnered HBCU, and qualify to receive an award pursuant to this section.
(5) “Partnered HBCUs” means HBCUs that satisfy all of the following:
(A) Have associate degree for transfer memoranda of understanding on file with the chancellor’s office.
(B) Satisfy subparagraphs (C) and (F) of paragraph (3) of subdivision (l) of Section 69432.7.
(C) Are regionally accredited by an agency recognized by the United States Department of Education.
(6) “Postsecondary costs” means any undergraduate education costs of attendance of participating students at partnered HBCUs.
(b) The moneys allocated to the commission pursuant to Section 17053.87 of the Revenue and Taxation Code shall be available for the purpose of making awards for participating students pursuant to this section.
(c) (1) Commencing with the 2024–25 award year, the commission may make disbursements of awards from the moneys allocated to the commission directly to partnered HBCUs for postsecondary costs of their participating students.
(2) A participating student may only receive one award pursuant to this section in an amount that does not exceed five thousand dollars ($5,000), as determined by the commission based on the availability of moneys allocated to the commission and the financial need of the student.
(3) In making awards pursuant to this section, the commission shall give priority to students with the greatest unmet financial need, as defined in subdivision (b) of Section 69432.9, who do not exceed the maximum household income and asset level for an applicant for a Cal Grant B award, as set forth in Section 69432.7.
(4) An award under this section is payable only to the extent that moneys are available from the fund. The commission shall inform each recipient of an award under this section that the award is a one-time grant.
(5) A participating student shall file a statement of intent form stating that the student will enroll at a partnered HBCU and return to, or remain in, California after graduation from a partnered HBCU.
(d) The commission may make disbursements in any fiscal year in which it determines there are sufficient funds. If the commission determines it would be in the best interest of the program, the commission may roll over moneys allocated to the commission for disbursement in future fiscal years.
(e) If, after making awards pursuant to subdivision (c), moneys remain in the fund, those moneys shall remain in the fund for allocation in future fiscal years.
(f) The commission may adopt regulations for purposes of implementing and administering this section.