(a)Cal Grant Program awards shall be known as Cal Grant A Entitlement Awards, Cal Grant B Entitlement Awards, Cal Grant C Entitlement Awards, California Community College Transfer Entitlement Awards, Competitive Cal Grant A and B Awards, Cal Competitive Cal Grant C Awards, and Cal Grant T Awards.

(b)Maximum award amounts for students at independent 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.

(c)(1)Notwithstanding subdivision (b), and subdivision (c) of Section 66021.2, commencing with the 201314 award year, the maximum tuition award amounts for Cal Grant A and B awards for students attending private for-profit and nonprofit postsecondary educational institutions shall be as follows:

(A)Four thousand dollars ($4,000) for new recipients attending private for-profit postsecondary educational institutions.

(B)For the 201516 and 201617 award years, nine thousand eighty-four dollars ($9,084) for new recipients attending private nonprofit postsecondary educational institutions. For the 201718 award year and each award year thereafter, eight thousand fifty-six dollars ($8,056) for new recipients attending private nonprofit postsecondary educational institutions.

(2)The renewal award amount for a student whose initial award is subject to a maximum award amount specified in this subdivision shall be calculated pursuant to paragraph (2) of subdivision (a) of Section 69433.

(3)Notwithstanding subparagraph (A) of paragraph (1), new recipients attending private for-profit postsecondary educational institutions that are accredited by the Western Association of Schools and Colleges as of July 1, 2012, shall have the same maximum tuition award amounts as are set forth in subparagraph (B) of paragraph (1).

As used in this chapter, the following terms have the following meanings:

(a)An academic year is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included.

(b)Access costs means living expenses and expenses for transportation, supplies, and books.

(c)Award year means one academic year, or the equivalent, of attendance at a qualifying institution.

(d)College grade point average and community college grade point average mean a grade point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree.

(e)Commission means the Student Aid Commission.

(f)Enrollment status means part- or full-time status.

(1)Part time, for purposes of Cal Grant eligibility, means 6 to 11 semester units, inclusive, or the equivalent.

(2)Full time, for purposes of Cal Grant eligibility, means 12 or more semester units or the equivalent.

(g)Expected family contribution, with respect to an applicant, shall be determined using the federal methodology pursuant to subdivision (a) of Section 69506 (as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.)) and applicable rules and regulations adopted by the commission.

(h)High school grade point average means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, Reserve Officers Training Corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, high school grade point average includes senior year coursework.

(i)Instructional program of not less than one academic year means a program of study that results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.

(j)Instructional program of not less than two academic years means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.

(k)(1)Maximum household income and asset levels means the applicable household income and household asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program, as defined and adopted in regulations by the commission for the 200102 academic year, which shall be set pursuant to the following income and asset ceiling amounts:

*Applies to independent students with dependents other than a
spouse.

**Applies to independent students with dependents other than a
spouse.

(2)The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIIIB of the California Constitution. The maximum household income and asset levels applicable to a renewing recipient shall be the greater of the adjusted maximum household income and asset levels or the maximum household income and asset levels at the time of the renewing recipients initial Cal Grant award. For a recipient who was initially awarded a Cal Grant for an academic year before the 201112 academic year, the maximum household income and asset levels shall be the greater of the adjusted maximum household income and asset levels or the 201011 academic year maximum household income and asset levels. An applicant or renewal recipient who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level test under this section. Before disbursing any Cal Grant funds, a qualifying institution shall be obligated, under the terms of its institutional participation agreement with the commission, to resolve any conflicts that may exist in the data the institution possesses relating to that individual.

(l)(1)Qualifying institution means an institution that complies with paragraphs (2) and (3) and is any of the following:

(A)A California private or independent postsecondary educational institution that participates in the Pell Grant Program and in at least two of the following federal student aid programs:

(i)Federal Work-Study Program.

(ii)Federal Stafford Loan Program.

(iii)Federal Supplemental Educational Opportunity Grant Program.

(B)A nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent of the institutions operating budget, as demonstrated in an audited financial statement, is expended for purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 200001 academic year shall retain its eligibility as long as it maintains its existing accreditation status.

(C)A California public postsecondary educational institution.

(2)(A)The institution shall provide information on where to access California license examination passage rates for the most recent available year from graduates of its undergraduate programs leading to employment for which passage of a California licensing examination is required, if that data is electronically available through the Internet Web site of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an Internet Web site address labeled as an access point for the data on the passage rates of recent program graduates on the Internet Web site where enrollment information is also located, on an Internet Web site that provides centralized admissions information for postsecondary educational systems with multiple campuses, or on applications for enrollment or other program information distributed to prospective students.

(B)The institution shall be responsible for certifying to the commission compliance with the requirements of subparagraph (A).

(3)(A)The commission shall certify by November 1 of each year the institutions latest official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, by the United States Department of Education.

(B)For purposes of the 201112 academic year, an otherwise qualifying institution with a three-year cohort default rate reported by the United States Department of Education that is equal to or greater than 24.6 percent shall be ineligible for initial and renewal Cal Grant awards at the institution.

(C)For purposes of the 201213 academic year, and every academic year thereafter, an otherwise qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the commission on October 1, 2011, and every year thereafter, shall be ineligible for initial and renewal Cal Grant awards at the institution.

(D)(i)An otherwise qualifying institution that becomes ineligible under this paragraph for initial and renewal Cal Grant awards shall regain its eligibility for the academic year for which it satisfies the requirements established in subparagraph (B), (C), or (F), as applicable.

(ii)If the United States Department of Education corrects or revises an institutions three-year cohort default rate or graduation rate that originally failed to satisfy the requirements established in subparagraph (B), (C), or (F), as applicable, and the correction or revision results in the institutions three-year cohort default rate or graduation rate satisfying those requirements, that institution shall immediately regain its eligibility for the academic year to which the corrected or revised three-year cohort default rate or graduation rate would have been applied.

(E)An otherwise qualifying institution for which no three-year cohort default rate or graduation rate has been reported by the United States Department of Education shall be provisionally eligible to participate in the Cal Grant Program until a three-year cohort default rate or graduation rate has been reported for the institution by the United States Department of Education.

(F)For purposes of the 201213 academic year, and every academic year thereafter, an otherwise qualifying institution with a graduation rate of 30 percent or less, as certified by the commission pursuant to subparagraph (A), shall be ineligible for initial and renewal Cal Grant awards at the institution, except as provided for in subparagraph (H).

(G)Notwithstanding any other law, the requirements of this paragraph shall not apply to institutions with 40 percent or less of undergraduate students borrowing federal student loans, using information reported to the United States Department of Education for the academic year two years before the academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).

(H)Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 percent and a graduation rate above 20 percent for students taking 150 percent or less of the expected time to complete degree requirements, as certified by the commission pursuant to subparagraph (A), shall be eligible for initial and renewal Cal Grant awards at the institution through the 201617 academic year.

(I)The commission shall do all of the following:

(i)Notify initial Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards under subparagraph (C) or (F) that the institution is ineligible for initial Cal Grant awards for the academic year for which the student received an initial Cal Grant award.

(ii)Notify renewal Cal Grant recipients attending an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) that the students Cal Grant award will be reduced by 20 percent, or eliminated, as appropriate, if the student attends the ineligible institution in an academic year in which the institution is ineligible.

(iii)Provide initial and renewal Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) with a complete list of all California postsecondary educational institutions at which the student would be eligible to receive an unreduced Cal Grant award.

(iv)(I) Establish an appeal process for an otherwise qualifying institution that fails to satisfy the three-year cohort default rate and graduation rate requirements in subparagraphs (C) and (F), respectively.

(II)The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.

(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. The commission may adopt regulations defining satisfactory academic progress in a manner that is consistent with those federal standards.

(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 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)A Competitive Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months. There shall be the same number of Competitive Cal Grant C awards each year as were made in the 200001 fiscal year. The maximum award amount and the total amount of funding shall be determined each year in the annual Budget Act.

(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)Students or the students parents 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 Competitive 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 Competitive Cal Grant C award was initially awarded is no longer deemed to receive priority shall not affect an award recipients renewal. In no case shall the grants exceed two calendar years.

(e)Except as provided in subdivision (f), Competitive Cal Grant C awards may be used for institutional fees, charges, and other costs, including tuition, plus shall be in an annual amount not to exceed two thousand four hundred and sixty-two dollars ($2,462) for tuition and fees and five hundred and forty-seven dollars ($547) to cover access costs and training-related costs, such as special clothing, local transportation, clothing and required tools, equipment, supplies, books, and living expenses. tools and equipment. In determining the individual award amounts in this subdivision and subdivision (f), the commission shall take into account the financial means available to the student to fund his or her course of study and costs of attendance as well as other state and federal programs available to the applicant.

(g)(1)The commission shall give priority in granting Competitive Cal Grant C awards to students pursuing occupational or technical training in areas that meet two of the following criteria pertaining to job quality:

(A)High employer need or demand for the specific skills offered in the program.

(B)High employment growth in the occupational field or industry cluster for which the student is being trained.

(C)High employment salary and wage projections for workers employed in the occupations for which they are being trained.

(D)The occupation or training program is part of a well-articulated career pathway to a job providing economic security.

(2)To receive priority pursuant to subparagraph (A), paragraph (1), at least one of the criteria met shall be specified in clause (iii) or (iv) of that subparagraph. subparagraph (C) or (D) of paragraph (1).

(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 201415 academic year, the commission shall give priority to Competitive Cal Grant C award applicants seeking to enroll in programs that rate high in graduation rates and job placement data, or salary data. data, including wage gain and initial earnings.

(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 Californias 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 an outreach plan to make students receiving that provides information to students about new opportunities for grant assistance in the Competitive Cal Grant C program and makes recipients of these awards aware of job search and placement services available through the Employment Development Department and the local workforce investment boards. Outreach shall use both existing administrative and service delivery processes making use of existing points of contact with the students. students, and new statewide and campus-based methods for expanding the scope of outreach to 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)Notwithstanding Section 10231.5 of the Government Code, the Legislative Analysts Office commission shall submit a report to the Legislature on the outcomes of the Competitive Cal Grant C program on or before April 1, 2015, 2017, and on or before April 1 of each odd-numbered year thereafter. 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). priority.

(D)The extent to which recipients in these award years were successfully placed in jobs that meet local, regional, or state workforce needs.

(2)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(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 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)A Cal Grant C award shall be utilized 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 200001 fiscal year. The maximum award amount and the total amount of funding shall be determined each year in the annual Budget Act. shall be three thousand dollars ($3,000).

(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)Students or the students parents 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 recipients 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, books, and living expenses. charges and access costs, as defined in subdivision (b) of Section 69432.7. In determining the individual award amounts, the commission shall take into account the financial means available to the student to fund his or her course of study and costs of attendance as well as other state and federal programs available to the applicant.

(f)(1)To ensure alignment with the states 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 Cal Grant C awards. The commission, to the extent feasible, shall also consult with representatives of the states leading competitive and emerging industry clusters, workforce professionals, and career technical educators, to determine which occupational training programs and industry clusters 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 Departments 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 the projections of occupational shortages and skills gap developed by industry leaders. The commission shall publish, and retain, on its Internet Web site 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 201415 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 Californias 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)Notwithstanding Section 10231.5 of the Government Code, the Legislative Analysts Office shall submit a report to the Legislature on the outcomes of the Cal Grant C program on or before April 1, 2015, and on or before April 1 of each odd-numbered year thereafter. 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 due on or before April 1, 2015, the Legislative Analysts 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)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.