Existing law establishes the Student Aid Commission to administer state student financial aid programs, including, among other programs, the Cal Grant Program, the Assumption Program of Loans for Education, and the Middle Class Scholarship Program.

Existing law also requires that a person, other than a nonimmigrant alien, as defined, who has attended high school in California for 3 or more years, who has graduated from a California high school or attained the equivalent thereof, who has registered at or attends an accredited institution of higher education in California not earlier than the fall semester or quarter of the 200102 academic year, and who, if he or she is an alien without lawful immigration status, has filed a prescribed affidavit, is exempt from paying nonresident tuition at the California Community Colleges and the California State University.

Existing law, known as the California Dream Act of 2011, provides that a student attending the California State University, the California Community Colleges, or the University of California who is exempt from paying nonresident tuition under the provision described above is eligible to receive a scholarship derived from nonstate funds received, for the purpose of scholarships, by the public postsecondary educational segment at which he or she is a student.

This bill would establish, commencing with the 201819 academic year, the Cal Grant B Service Incentive Grant Program under the administration of the Student Aid Commission. The bill would require a participating student, in order to receive a grant award under the program, among other requirements, to be a recipient of a Cal Grant B award; to be enrolled as a student at a campus of the University of California, the California State University, or the California Community Colleges, or at an independent institution of higher education, as defined; and to perform a minimum of 300 hours of community service or volunteer work in each academic year for which a grant is provided, as specified. to perform at least 100 hours per quarter or 150 hours per semester of community or volunteer service, as appropriate.

The bill would specify the amount of the grants to be awarded under the program, and would require that the grants awarded under this program not offset or replace any other source of grant aid, as specified. The bill would limit to 2,500 the number of eligible students simultaneously receiving grants under the program, as specified. The bill would specify the eligibility requirements for students participating in the program, including the submission of a California Dream Act application to the commission and the meeting of all of the requirements for an exemption from paying nonresident tuition as described above. The bill would also specify the requirements for the community service or volunteer work or volunteer service performed by participating students to be applied toward the earning of grant awards under the program.

Existing law establishes the Student Aid Commission to administer state student financial aid programs, including, among other programs, the Cal Grant Program, the Assumption Program of Loans for Education, and the Middle Class Scholarship Program.

Existing law also requires that a person, other than a nonimmigrant alien, as defined, who has attended high school in California for 3 or more years, who has graduated from a California high school or attained the equivalent thereof, who has registered at or attends an accredited institution of higher education in California not earlier than the fall semester or quarter of the 200102 academic year, and who, if he or she is an alien without lawful immigration status, has filed a prescribed affidavit, is exempt from paying nonresident tuition at the California Community Colleges and the California State University.

Existing law, known as the California Dream Act of 2011, provides that a student attending the California State University, the California Community Colleges, or the University of California who is exempt from paying nonresident tuition under the provision described above is eligible to receive a scholarship derived from nonstate funds received, for the purpose of scholarships, by the public postsecondary educational segment at which he or she is a student.

This bill would establish, commencing with the 201819 academic year, the Cal Grant B Service Incentive Grant Program under the administration of the Student Aid Commission. The bill would require a participating student, in order to receive a grant award under the program, among other requirements, to be a recipient of a Cal Grant B award; to be enrolled as a student at a campus of the University of California, the California State University, or the California Community Colleges, or at an independent institution of higher education, as defined; and to perform a minimum of 300 hours of community service or volunteer work in each academic year for which a grant is provided, as specified.

The bill would specify the amount of the grants to be awarded under the program, and would require that the grants awarded under this program not offset or replace any other source of grant aid, as specified. The bill would limit to 2,500 the number of eligible students simultaneously receiving grants under the program, as specified. The bill would specify the eligibility requirements for students participating in the program, including the submission of a California Dream Act application to the commission and the meeting of all of the requirements for an exemption from paying nonresident tuition as described above. The bill would also specify the requirements for the community service or volunteer work performed by participating students to be applied toward the earning of grant awards under the program.

Existing law establishes the Student Aid Commission to administer state student financial aid programs, including, among other programs, the Cal Grant Program, the Assumption Program of Loans for Education, and the Middle Class Scholarship Program.

Existing law also requires that a person, other than a nonimmigrant alien, as defined, who has attended high school in California for 3 or more years, who has graduated from a California high school or attained the equivalent thereof, who has registered at or attends an accredited institution of higher education in California not earlier than the fall semester or quarter of the 200102 academic year, and who, if he or she is an alien without lawful immigration status, has filed a prescribed affidavit, is exempt from paying nonresident tuition at the California Community Colleges and the California State University.

Existing law, known as the California Dream Act of 2011, provides that a student attending the California State University, the California Community Colleges, or the University of California who is exempt from paying nonresident tuition under the provision described above is eligible to receive a scholarship derived from nonstate funds received, for the purpose of scholarships, by the public postsecondary educational segment at which he or she is a student.

This bill would establish, commencing with the 201819 academic year, the California Community Cal Grant B Service Incentive Grant Program under the administration of the Student Aid Commission. The bill would require a participating student, in order to receive a grant award under the program, among other requirements, to be a recipient of a Cal Grant B award; to be enrolled as a student at a campus of the University of California, the California State University, or the California Community Colleges, or at an independent institution of higher education, as defined; and to perform a minimum of 100 300 hours of community service or volunteer work in each semester academic year for which a grant is provided. provided, as specified.

The bill would specify the amount of the grants to be awarded under the program, and would require that the grants awarded under this program not offset or replace any other source of grant aid, as specified. The bill would specify the eligibility requirements for students participating in the program, including the submission of a California Dream Act application to the commission and eligibility the meeting of all of the requirements for an exemption from paying nonresident tuition as described above. The bill would also specify the requirements for the service community service or volunteer work performed by participating students to be applied toward the earning of grant awards under the program.

Existing law establishes the Student Aid Commission to administer state student financial aid programs, including, among other programs, the Cal Grant Program, the Assumption Program of Loans for Education, and the Middle Class Scholarship Program.

Existing law also requires that a person, other than a nonimmigrant alien, as defined, who has attended high school in California for 3 or more years, who has graduated from a California high school or attained the equivalent thereof, who has registered at or attends an accredited institution of higher education in California not earlier than the fall semester or quarter of the 200102 academic year, and who, if he or she is an alien without lawful immigration status, has filed a prescribed affidavit, is exempt from paying nonresident tuition at the California Community Colleges and the California State University.

Existing law, known as the California Dream Act of 2011, provides that a student attending the California State University, the California Community Colleges, or the University of California who is exempt from paying nonresident tuition under the provision described above is eligible to receive a scholarship derived from nonstate funds received, for the purpose of scholarships, by the public postsecondary educational segment at which he or she is a student.

This bill would express the intent of the Legislature to enact legislation regarding the California Dream Act of 2011. establish, commencing with the 201819 academic year, the California Community Service Incentive Grant Program under the administration of the Student Aid Commission. The bill would require a participating student, in order to receive a grant award under the program, to perform a minimum of 100 hours of community service or volunteer work in each semester a grant is provided.

Existing law requires that a person, other than a nonimmigrant alien, as defined, who has attended high school in California for 3 or more years, who has graduated from a California high school or attained the equivalent thereof, who has registered at or attends an accredited institution of higher education in California not earlier than the fall semester or quarter of the 200102 academic year, and who, if he or she is an alien without lawful immigration status, has filed a prescribed affidavit, is exempt from paying nonresident tuition at the California Community Colleges and the California State University.

Existing law, known as the California Dream Act of 2011, provides that a student attending the California State University, the California Community Colleges, or the University of California who is exempt from paying nonresident tuition under the provision described above is eligible to receive a scholarship derived from nonstate funds received, for the purpose of scholarships, by the public postsecondary educational segment at which he or she is a student.

This bill would express the intent of the Legislature to enact legislation regarding the California Dream Act of 2011.

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 1037 (Limón) - Postsecondary education: student financial aid: Cal Grant B Service Incentive Grant Program

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill establishes the Cal Grant B Service Incentive Grant Program, under the administration of the California Student Aid Commission (CSAC), for students that qualify for the exemption from nonresident tuition established by AB 540 (Firebaugh, Chapter 814, Statutes of 2001).

Fiscal Impact:

• This bill could result in approximately $7.5 million General Fund for the new grant program. This estimate assumes a grant amount of $3,000 for the maximum number of 2,500 participants.
• The CSAC indicates administrative costs of about $1.1 million General Fund which includes approximately $273,000 for three positions to process applications, authorize organizations to participate, certify hours, process awards, and provide program support. The remaining amount would be for IT related contracts to build a system to register organizations, track hours, and communicate all of the program information to their grant delivery system.

Background:

Existing law authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a college or university. The Cal Grant program provides both entitlement and competitive awards through the Cal Grant A, Cal Grant B, and Cal Grant C programs. Eligibility is based on financial need, GPA, California residency and other criteria.

Current law establishes the Cal Grant A and B awards as an entitlement for California students meeting certain eligibility criteria, meaning the state automatically funds those students that qualify. An application must be submitted when the student is a high school senior or has graduated from high school within the last year. Eligible applicants who miss the application deadline or enroll well after they have graduated from high school may apply for a Competitive Cal Grant award.

However, the program prohibits an applicant from receiving one or a combination of program awards in excess of the amount equivalent to the award level for a total of a 4-year period of full-time attendance in an undergraduate program. Existing law authorizes an additional year of eligibility for students enrolled in an institutionally prescribed 5-year undergraduate program or students enrolled in professional teacher preparation program, as specified.

Cal Grant A provides full-tuition coverage for students enrolled at California State University (CSU) and University of California (UC) and partial tuition at private colleges and universities. The Cal Grant B award comes with two payment components—access and tuition fees, in which the access portion covers non-tuition costs in the amount of $1,672. The Cal Grant B program provides full-tuition coverage except not in the first year of college for students enrolled at CSU and UC and partial tuition coverage for students enrolled at private colleges and universities.

California Community College (CCC) students primarily receive Cal Grant B access awards to cover non-tuition costs. These students also receive CCC fee waivers as the Cal Grant program does not cover community college fees. According to a related report by California College Pathways the majority of foster youth in postsecondary school in California attend community colleges and 80 percent of those students receive a California Community College fee waiver.

Existing law also establishes the Cal Grant Competitive Award program which provides 25,750 Cal Grant A and B awards to applicants who meet financial, academic and general program eligibility requirements. Half of these awards are reserved for students enrolled at a community college and who met the September 2 application deadline. According to the Commission’s website, eligibility for this program is geared toward nontraditional students, such as those who did not go to college right after high school, and takes into account not only GPA, but also time out of high school, family income, parents’ education levels, high school performance standards and other factors, such as whether the student comes from a single-parent household or was a foster youth. Currently, there are only 25,750 Competitive Cal Grant awards that are statutorily authorized each year. According to the CSAC, this program is oversubscribed with applicants that have failed to meet the entitlement programs. In any given year, there may be 300,000 to 350,000 applicants that compete for the 25,750 awards.

Established by AB 540, (Firebaugh, Chapter 814, Statutes of 2001), existing law exempts specified California nonresidents from paying nonresident tuition at the UC, CSU, and the community colleges if they meet certain requirements of which include graduation from a California high school (or the equivalent) or attainment an associate degree from a community college. Students who meet the requirements to qualify for the exemption from nonresident tuition are commonly referred to as “AB 540 students.”

Existing law establishes the California Dream Act, and provides that, beginning January 1, 2013, AB 540 students are eligible to apply for, and participate in, any student financial aid program administered by the State of California to the full extent permitted by federal law. The Commission is required to establish procedures and forms (Dream act application) that enable AB 540 students to apply for, and participate in, all student financial aid programs administered by the State of California to the full extent permitted by federal law. Current law prohibits AB 540 students from being eligible for Competitive Cal Grant A and B Awards unless specified conditions are met. (EC § 69508.5)

Proposed Law:

This bill establishes, commencing with the 2018-19 academic year, the Cal Grant B Service Incentive Grant Program, under the administration of the California Student Aid Commission.

This bill provides that a participating student is eligible to receive a grant under the program for a maximum of eight semesters or 12 quarters and upon meeting the minimum service requirement, is eligible for an award of up to $1,500 per semester or $1,000 per quarter, based on the specified calculation.

This bill limits to 2,500 the number of eligible students simultaneously receiving grants under the program and when award slots are available requires that grants be awarded to eligible students on a first-come-first-served basis depending on the submission date of a completed California Dream Act application, as specified.

This bill deems a student is eligible to participate in the program if he or she meets all of the following requirements:

1. Has completed, and submitted to the Commission, a California Dream Act application.
2. Meets all of the requirements for an exemption from paying nonresident tuition pursuant to current EC§ 68130.5 or a similar provision adopted by the Regents of the UC.
3. Is a recipient of a Cal Grant B award.
4. Have an unmet need, as determined by the Commission.
5. Is enrolled at a campus of the UC, the CSU or the community colleges, or at an independent institution of higher education that is a qualifying institution, as specified.
6. Agrees to perform and does perform the number of hours of community service or volunteer work required for participation in the program.

This bill requires, in order to be a recipient of a grant under the program, a student: be a recipient of a Cal Grant B award; perform a minimum of 300 hours of community service or volunteer work, as specified, in each academic year that the grant is provided; and perform community service or volunteer work through organizations meeting requirements, as specified.

This bill prohibits a grant awarded under the program from being offset or replaced by any other source of grant aid, including but not necessarily limited to, institutional aid and scholarships.

This bill also requires, in order for the community service or volunteer work performed by a participating student to be applied toward the earning of a grant award under the program, the organization and service meet the certain requirements, as specified.

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SENATE COMMITTEE ON EDUCATION

Senator Benjamin Allen, Chair

2017 - 2018 Regular

Bill No: Hearing Date: June 6, 2018

Subject: .

SUMMARY

This bill establishes, commencing with the 2018-19 academic year, the Cal Grant B Service Incentive Grant Program, under the administration of the California Student Aid Commission who meet the requirements to qualify for the exemption from nonresident tuition established by AB 540 (Firebaugh, Chapter 814, Statutes of 2001).

BACKGROUND

Existing law:

1. Authorizes the Cal Grant program, administered by the California Student Aid Commission (Commission), to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs and eligibility is based upon financial need, GPA, California residency and other criteria. (Education Code (EC) § 69430 - 69433)
2. Established by AB 540, (Firebaugh, Chapter 814, Statutes of 2001) exempts specified California nonresidents from paying nonresident tuition at the University of California, California State University, and the California Community Colleges (CCC) if they meet certain requirements of which include graduation from a California high school (or the equivalent) or attainment an associate degree from a CCC. Students who meet the requirements to qualify for the exemption from nonresident tuition are commonly referred to as “AB 540 students.” (EC § 68130.5)
3. Establishes the California Dream Act, and provides that, beginning January 1, 2013, AB 540 students are eligible to apply for, and participate in, any student financial aid program administered by the State of California to the full extent permitted by federal law. The Commission is required to establish procedures and forms (Dream act application) that enable AB 540 students to apply for, and participate in, all student financial aid programs administered by the State of California to the full extent permitted by federal law. Current law prohibits AB 540 students from being eligible for Competitive Cal Grant A and B Awards unless specified conditions are met. (EC § 69508.5)
4. Provides that a student attending the California State University (CSU), the California Community Colleges (CCC), or the University of California (UC) who is exempt from paying nonresident tuition under the provisions established by AB 540 is eligible to receive a scholarship derived from non-state funds received, for the purpose of scholarships, by the segment at which he or she is a student. (EC § 66021.7)
5. Requires the Trustees of the CSU and the Board of Governors of the CCC and the Regents of the UC are requested to, establish procedures and forms that enable persons who are exempt from paying nonresident tuition under the provisions established by AB 540 or who meet equivalent requirements adopted by the regents, to apply for, and participate in, all student aid programs administered by these segments to the full extent permitted by federal law. (EC § 66021.6)
6. Establishes the California DREAM Loan Program for purposes of extending loans to students who meet the requirements established by AB 540 and have financial need, and authorizes any campus of the UC and the CSU to participate. The law requires the state and UC and CSU to split the costs of launching the program. (EC § 70030-70039)
7. Requires the Trustees of the CSU and the Board of Governors of the CCC, and request the UC Regents, to establish procedures and forms that enable AB 540 students to apply for, and participate in, all student aid programs administered by these segments to the full extent permitted by federal law. (EC § 66021.6)
8. Establishes a California State Work Study Program to provide financially needy students with the opportunity to earn money to help defray educational costs while gaining experience in educationally beneficial or career-related employment. The program was administered by the California Student Aid Commission and was funded as a pilot program beginning in 1987. In 1998, the program was expanded to include the Teaching Intern Program, to make work-study funding available to offer tutoring in various outreach activities for pupils. The program has not been funded in recent years. (EC § 69950 – 69969.5)
9. Under Federal law, establishes the Federal Work Study (FWS) Program which provides funds for part-time employment to help needy students finance higher education. Students can receive FWS funds at 3,400 participating postsecondary institutions at hourly wages of at least the federal minimum wage. Participating institutions must apply annually to the US Department of Education (USDE) to participate. Using a statutory formula, USDE allocates funds based on prior year funding levels and the aggregate need of prior year eligible students. Generally, the school or employer pays up to 50 percent share of the student's wages. Institutions must use at least 7 percent of their FWS allocation to support students working in community service jobs. Students apply for FWS assistance through the Free Application for Federal Student Aid. (Higher Education Act of 1965, Title IV, Part C; 42 U. S. C. 2751-2756b)

ANALYSIS

This bill:

1. Establishes, commencing with the 2018-19 academic year, the Cal Grant B Service Incentive Grant Program, under the administration of the California Student Aid Commission (Commission).
2. Provides that a participating student is eligible to receive a grant under the program for a maximum of eight semesters or 12 quarters and upon meeting the minimum service requirement, is eligible for an award of up to $1,500 per semester or $1,000 per quarter, based on the specified calculation.
3. Limits to 2,500 the number of eligible students simultaneously receiving grants under the program and when award slots are available requires that grants be awarded to eligible students on a first-come-first-served basis depending on the submission date of a completed California Dream Act application, as specified.
4. Deems a student is eligible to participate in the program if he or she meets all of the following requirements:
   1. Has completed, and submitted to the Commission, a California

Dream Act application.

• 1. Meets all of the requirements for an exemption from paying

nonresident tuition pursuant to current EC§ 68130.5 or a similar provision adopted by the Regents of the University of California (UC).

• 1. Is a recipient of a Cal Grant B award.
  2. Have an unmet need, as determined by the Commission.
  3. Is enrolled at a campus of the UC, the California State

University or the California Community Colleges, or at an independent institution of higher education that is a qualifying institution, as specified.

• 1. Agrees to perform and does perform the number of hours of community

service or volunteer work required for participation in the program.

1. Requires, in order to be a recipient of a grant under the program, a student:
   1. Be a recipient of a Cal Grant B award.
   2. Perform a minimum of 300 hours of community service or volunteer work,

as specified, in each academic year that the grant is provided.

• 1. Perform community service or volunteer work through organizations

meeting requirements in 7) below.

1. Prohibits a grant awarded under the program from being offset or replaced by any other source of grant aid, including but not necessarily limited to, institutional aid and scholarships.
2. Requires, in order for the community service or volunteer work performed by a participating student to be applied toward the earning of a grant award under the program, the organization and service meet the following requirements:
   1. Register with the Commission, and report the service hours of the

participating students in a timely manner.

• 1. Be one of the following:
     1. A federal, state, or local governmental entity.
     2. A qualifying institution as defined.
     3. An organization exempt from federal income tax pursuant to § 501

(c)(3) of the Internal Revenue Code.

• 1. The service is related to the participating student’s field of study, or is in

furtherance of community services or a community need.

• 1. The service performed by the participating student is not advocacy of a

political, social, or religious nature.

STAFF COMMENTS

1. Need for the bill. According to the California Student Aid Commission, the sponsors of the bill, “many California students notably Dream Act recipients, are ineligible for federal financial aid programs. One key program is the Federal Work Study program which enables students to perform work in exchange for additional financial aid. Dream Act recipients are especially vulnerable because even a state based work study program would require work authorization, and with the future of the Deferred Action for Childhood Arrivals program in question, it is unclear that they would be able to participate.” This bill seeks to provide Dream act recipients with an opportunity to earn additional student aid to cover educational expenses through volunteer service.
2. AB 540 and California Dream Act. State law, established by AB 540 and expanded upon by other legislation, allows non-resident students who meet certain qualifications to pay in-state tuition. These students may include undocumented students, students who are US citizens but who are not CA residents, and dependent students whose parents are not CA residents. The California Dream Act, established by SB 131 (Cedillo, chapter 604, statutes of 2010) allows AB 540 students to apply for and receive private scholarships funded through public universities, state-administered financial aid, University grants, community college fee waivers, and Cal Grants. Students apply for these awards using the California Dream application.
3. Who is eligible? This bill outlines various eligibility criteria for the Cal Grant B Service Incentive Grant Program, including receipt of an award under the Cal Grant B program, completion of the California Dream application and be an AB 540 student. Eligibility for the Cal Grant B program is based upon financial need, GPA, California residency and other criteria. This bill also requires a program participant to perform a minimum number of service hours at a non-profit, governmental entity or a qualifying institution registered with the Commission.
4. How it works? Awards in the proposed program are limited to 2,500 recipients and disbursed on a first-come-first served basis. An eligible participant may receive an amount of up to $1,500 per semester. The amount of the award is dependent upon a student’s unmet need, enrollment status (i.e. full-time or part-time) and completion of the minimum service requirement. Service hours are reported by the organization directly to the Commission. The duration of the award is restricted to eight semesters (4 academic years) of eligibility. It is unclear whether a program participant seeking to renew their award could do so without having to get back in line.
5. Clarification of Deferred Action for Child Hood Arrivals (DACA) program. DACA is a federal process that defers removal action of an individual for a specified number of years. It allows those who are eligible to have work authorization. Staff notes that some students with DACA status participate in state work-study programs. A person can be eligible for both the exemption established by AB 540 and DACA status or just either one. The state and federal programs are independent of each other. An undocumented student without DACA status is not authorized to work and there is growing concern that those with work authorization under the DACA program will soon lose their authorization as the Trump administration attempts to phase-out the program. Only those students who meet the AB 540 exemption requirements could benefit from the program proposed by the provisions in this bill.
6. Technical and Clarifying Amendments.

• To ensure that awards are disbursed to eligible students per semester or quarter rather than annually, consistent with the request from the Commission, staff recommends that the bill be amended as follows:

69438.3. (a) In order to receive a grant under the program, a student shall be a recipient of a Cal Grant B award, and shall perform a minimum of 300 hours of community service or volunteer work in each academic year a grant is provided. The student shall perform at least 100 hours of community service or volunteer work per quarter or at least 150 hours of community service or volunteer work per semester, as appropriate.

• Staff recommends amendments to replace references to “volunteer work” with “volunteer service,” throughout the bill.
• This bill limits to 2,500 the number of eligible students simultaneously receiving grants under the program. Arguably, a student could be a participant in the program while in the process of earning service hours. To ensure that the number of available slots coincides with the number of participants rather than grant recipients staff recommends that the bill be amended as follows:

69438.3 (d) No more than 2,500 students who are eligible through meeting all of the requirements of Section 69438.5 shall simultaneously participate in the program as grant recipients.

• This bill deems a student is eligible to participate in the program if he or she agrees to perform, and does perform, the number of hours of community service or volunteer work required, pursuant to Section 69438.3, for participation in the program. In a separate section it also outlines similar conditions for receipt of an award. For purposes of streamlining the bill, staff recommends amendments to strike the following:

69438.5 (f) He or she agrees to perform, and does perform, the number of hours of community service or volunteer work required, pursuant to Section 69438.3, for participation in the program

SUPPORT

Association of Independent California Colleges and University

California Community Colleges Chancellor’s Office

California Faculty Association

California Immigrant Policy Center

California Student Aid Commission

Coalition for Humane Immigrant Rights

Community College League of California

Community College League of California

Education Trust-West

Faculty Association of California Community Colleges

Foothill-De Anza Community College District

KID CITY HOPE PLACE

Los Angeles Area Chamber of Commerce

Los Rios Community College District

MALDEF

Peralta Community College District

Real Coalition

San Diego Community College District

South Orange County Community College District

Southern California College Access Network

Students making a change

The Campaign for College Opportunity

The Civil Rights Project

The Institute for College Access and Success

University of Southern California

OPPOSITION

None received

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ASSEMBLY THIRD READING

ATR Bill Id:AB 1037

Author:(Limón)

As Amended Ver:January 3, 2018

Majority vote

SUMMARY: Establishes the Cal Grant B Service Incentive Grant Program as a new program administered by the California Student Aid Commission (CSAC).

EXISTING LAW:

Federal law.

On June 15, 2012, the Secretary of Homeland Security, under the direction of President Obama, announced the Deferred Action for Childhood Arrivals (DACA) policy, authorizing certain people who came to the United States as children and meet several guidelines to request consideration of deferred action for a period of two years, subject to renewal. They are also eligible for work authorization. Deferred action is a use of prosecutorial discretion to defer removal action against an individual for a certain period of time. Deferred action does not provide lawful status.

Individuals may request consideration of DACA if they meet all of the following requirements:

1. Were under the age of 31 as of June 15, 2012;
2. Came to the United States before their 16th birthday;
3. Have continuously resided in the United States since June 15, 2007, up to the present time;
4. Were physically present in the United States on June 15, 2012, and at the time of making the request for consideration of deferred action;
5. Had no lawful status on June 15, 2012, meaning never had a lawful immigration status on or before June 15, 2012, or any lawful immigration status or parole obtained prior to June 15, 2012, that had expired as of June 15, 2012;
6. Currently in school, have graduated or obtained a certificate of completion from high school, have obtained a General Educational Development certificate, or are an honorably discharged veteran of the Coast Guard or Armed Forces of the United States; and,
7. Have not been convicted of a felony, a significant misdemeanor, three or more other misdemeanors, and do not otherwise pose a threat to national security or public safety.

To note, undocumented students cannot legally receive any federally funded student financial aid, including loans, grants, scholarships or work-study money.

State law.

1. Qualifies for lower resident fee/tuition payments at the California Community Colleges (CCC), California State University (CSU), and University of California (UC), a student who attended high school in California for three or more years, graduated (or equivalency) from a California high school, enrolled at an accredited institution of higher education in California not earlier than the fall semester or quarter of 2001–02, and files an affidavit with the institution of higher education stating that the student has filed an application to legalize his or her immigration status or will file an application as soon as he or she is eligible. These students are often referred to as "AB 540 students" (Education Code (EC) Section 68130.5).
2. Authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend college. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs; eligibility is based upon financial need, grade point average, California residency, and other eligibility criteria, as specified (EC Sections 69430 – 69439).
3. Establishes the California Development, Relief, and Education for Alien Minors (DREAM) Act to provide state, including the Cal Grant Program and the CCC Board of Governors Fee Waiver, and institutional financial aid to students who qualify for the aforementioned exemption from non-resident tuition (as listed in number one above), students must apply by March 2 prior to the academic year; Dream Act recipients receive Cal Grant Entitlement awards, but are not eligible for Competitive Cal Grant awards unless funding remains available after eligible California students have received awards (EC Section 69508.5).
4. Establishes the California DREAM Loan Program intended to provide low-interest loans to Dream Act students who are accessing the Cal Grant program and attending UC and CSU. These students are not eligible for federal student loans, making it difficult for some to cover the total costs of college. The law requires the state, UC and CSU to split the costs of launching the program. The state would need to provide about $4.7 million General Fund to begin the program (EC Sections 70030-70039).

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Approximately $7.5 million General Fund (GF) in 2018-19 for grant costs and $1.1 million GF in administrative costs for CSAC. This estimate includes an average grant of $3,000 for 2,500 (maximum number) grant recipients.
2. Additional costs include, $1.1 million GF on-going in administrative costs to CSAC, $74,000 in facilities for year one and one-time costs of $100,000 to perform outreach and print materials. On-going costs include salaries and wages for at least two new CSAC personnel, who would need to verify qualifications, process grants, and verify service hours submitted by volunteer organizations.

COMMENTS: Background. With no Social Security number, undocumented students cannot complete the Free Application for Federal Student Aid (FAFSA); therefore, undocumented students are not eligible for any federally funded financial aid, including loans, grants, scholarships or work-study money.

According to information provided by the author, in academic year 2014-15, seven UC campuses offered institutionally funded work-study awards, typically $2,000 per year, to AB 540 students with DACA status. Some of these programs were established with one-time funding and the on-going availability of the programs is presently uncertain.

To date, work-study programs for AB 540 students are not available on any CSU campuses.

Need for the measure. According to the author, California has embraced undocumented students and has enacted legislation that allows undocumented students access to benefits that assist them in paying for their higher education expenses.

The author states that, "AB 1037 will further these efforts via a statewide expansion of Dreamer work-study programs and will provide students an opportunity to explore and gain experience in their selected career path."

This measure provides an opportunity for AB 540 students to access incentive grants, regardless of eligibility to work, in order to assist in filling their unmet financial aid gaps by establishing the Cal Grant B Service Incentive Grant Program, available to California's AB 540 students who are ineligible for federal work-study programs.

Cal Grant B. The Cal Grant B award provides grant funds for access costs for low-income students in an amount not to exceed $1,656 for up to four years. This grant is to be used for living expenses and expenses related to transportation, supplies and books. Beginning with the second year of Cal Grant B benefits, Cal Grant B also helps pay for tuition/fees for California residents attending qualifying institutions offering undergraduate academic programs of not less than one academic year.

To note, awards are guaranteed for those who meet the program eligibility criteria.

Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0002536

Date of Hearing: May 10, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1037

Author:(Limón) – As Amended Ver:April 17, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill establishes the Cal Grant B Service Incentive Grant Program as a new program administered by the California Student Aid Commission (CSAC). Specifically, this bill:

1. Establishes, commencing with the 2018-19 academic year, the Cal Grant B Service Incentive Grant Program and specifies that in order to receive a grant under the program, a student must be a recipient of a Cal Grant B award, completed a California Dream Act application, has an unmet need determined by CSAC, and agrees to perform a minimum of 300 hours of community service or volunteer work in each academic year a grant is provided.
2. The community service or volunteer work must be performed through organizations specified by the bill. The organizations must then report the hours of service performed by participating students to CSAC in a timely manner.
3. A student is eligible to receive a grant under the program for a maximum of eight semesters or 12 quarters. Once a student has met the minimum service requirement, he or she is eligible for an award of up to $1,500 per semester or $1,000 per quarter.

FISCAL EFFECT:

Approximately $13.2 million General Fund (GF) in 2018-19 for grant costs. This estimate includes an average grant of $3,000 and 5,007 new grant recipients. On-going grant cost in the millions can be expected, but are currently unknown as this is a new program.

Additional administrative costs of approximately $ 1.1 million GF on-going, $74,000 in facilities for year one and one-time costs of $100,000 to perform outreach and print materials. New CSAC personnel would need to verify qualifications, process grants and verify service hours submitted by volunteer organizations.

COMMENTS:

1. Background. Existing law authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend college. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, grade point average, California residency, and other eligibility criteria. California also established the California DREAM Act to provide state financial aid, including the Cal Grant Program and the CCC Board of Governors Fee Waiver, and institutional financial aid. Dream Act recipients receive Cal Grant Entitlement awards, but are not eligible for Competitive Cal Grant awards unless funding remains available after eligible California students have received awards. State law also authorizes the California DREAM Loan Program. The DREAM Loan Program is intended to provide low-interest loans to Dream Act students who are accessing the Cal Grant program and attending UC and CSU. These students are not eligible for federal student loans, making it difficult for some to cover the total costs of college. The law requires the state, UC and CSU to split the costs of launching the program. To begin the program, the state would need to provide about $4.7 million General Fund.

The Cal Grant B provides grant funds for access costs for low-income students in an amount not to exceed $1,656 for up to four years. This grant is to be used for living expenses and expenses related to transportation, supplies and books. Beginning with the second year of Cal Grant B benefits, Cal Grant B also helps pay for tuition/fees for California residents attending qualifying institutions offering undergraduate academic programs of not less than one academic year. With no Social Security number, undocumented students cannot complete the Free Application for Federal Student Aid (FAFSA); therefore, undocumented students are not eligible for any federally funded financial aid, including loans, grants, scholarships or work-study money. This bill would provide an opportunity for AB 540 students (also known as DREAM students) to access incentive grants, regardless of eligibility to work, in order to assist in filling their unmet financial aid gaps.

1. Purpose. According to the author, California has embraced undocumented students and has enacted legislation that allows undocumented students access to benefits that assist them in paying for their higher education expenses. The author states that, "AB 1037 will further these efforts via a statewide expansion of Dreamer work-study programs and will provide students an opportunity to explore and gain experience in their selected career path."

Analysis Prepared by: Daisy Gonzales / APPR. / (916) 319-2081

Date of Hearing: April 25, 2017

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 1037 (

Author:Limón) – As Amended Ver:April 17, 2017

SUBJECT: Postsecondary education: student financial aid: Cal Grant B Service Incentive Grant Program.

SUMMARY: Establishes the Cal Grant B Service Incentive Grant Program. Specifically, this bill:

1. Establishes, commencing with the 2018-19 academic year, under the administration of the California Student Aid Commission (CSAC), the Cal Grant B Service Incentive Grant Program.
2. Defines "program" as the Cal Grant B Service Incentive Grant Program as established by this measure.
3. Specifies that in order to receive a grant under the program, a student shall be a recipient of a Cal Grant B award, and shall perform a minimum of 300 hours of community service or volunteer work in each academic year a grant is provided.
4. Specifies that the student shall perform at least 100 hours of community service or volunteer work per quarter or at least 150 hours of community service or volunteer work per semester, as appropriate. The community service or volunteer work shall be performed through organizations meeting the requirements of all of number (8) below. The organizations shall report the hours of service performed by participating students to CSAC in a timely manner.
5. Stipulates a participating student is eligible to receive a grant under the program for a maximum of eight semesters or 12 quarters. Once a student has met the minimum service requirement, he or she is eligible for an award of up to $1,500 per semester or $1,000 per quarter. The amount of a grant made to an individual participating student shall be calculated as follows:
   1. Fifty percent of the unmet need of up to $1,500 of a student enrolled in a semester-based system, or 33.33 percent of the unmet need of up to $1,000 of a student enrolled in a quarter-based system, as appropriate, shall be multiplied as follows:
      1. For half-time students, multiplied by 0.5;
      2. For three-fourths full-time students, multiplied by 0.75; and,
      3. For full-time students, multiplied by one.
   2. If a student is eligible to receive a grant under the program, the minimum amount awarded in a semester or quarter shall be determined as follows:
      1. For half-time students, $150;
      2. For three-fourths full-time students, $225; and,
      3. For full-time students, $300.
6. Stipulates that a grant awarded under the program shall not offset or replace any other source of grant aid, including, but not necessarily limited to, institutional aid and scholarships.
7. Deems a student eligible to participate in the program if he or she meets all of the following requirements:
   1. Has completed, and submitted to CSAC, a California Dream Act application;
   2. Meets all of the requirements for an exemption from paying nonresident tuition pursuant to current law in Education Code (EC) Section 68130.5 or pursuant to a similar provision adopted by the University of California (UC) Regents;
   3. Is a recipient of a Cal Grant B award;
   4. Is determined by CSAC to have unmet need;
   5. Is enrolled at a campus of the UC, the California State University (CSU), or the California Community Colleges (CCC), or at an independent institution of higher education; and,
   6. Agrees to perform, and does perform, the number of hours of community service or volunteer work required, as specified in (4) above, for participation in the program.
8. Stipulates that in order for the community service or volunteer work performed by a participating student to be applied to the minimum hours required for eligibility for this program, the organization and service shall meet all of the following requirements, as determined by CSAC:
   1. The organization shall register with CSAC, and report the service hours of the participating students;
   2. The organization shall be one of the following:
      1. A federal, state, or local governmental entity;
      2. A qualifying institution as defined in number (7)(e) above;
      3. An organization exempt from federal income tax pursuant to Section 501(c)(3) of the Internal Revenue Code;
      4. The community service or volunteer work performed by the participating student is not advocacy of a political, social, or religious nature; and,
      5. The community service or volunteer work is related to the participating student’s field of study, or is in furtherance of community service or a community need.

EXISTING LAW:

Federal law.

On June 15, 2012, the Secretary of Homeland Security, under the direction of President Obama, announced the Deferred Action for Childhood Arrivals (DACA) policy, authorizing certain people who came to the United States as children and meet several guidelines to request consideration of deferred action for a period of two years, subject to renewal. They are also eligible for work authorization. Deferred action is a use of prosecutorial discretion to defer removal action against an individual for a certain period of time. Deferred action does not provide lawful status.

Individuals may request consideration of DACA if they meet all of the following requirements:

• Were under the age of 31 as of June 15, 2012;
• Came to the United States before their 16th birthday;
• Have continuously resided in the United States since June 15, 2007, up to the present time;
• Were physically present in the United States on June 15, 2012, and at the time of making the request for consideration of deferred action;
• Had no lawful status on June 15, 2012, meaning never had a lawful immigration status on or before June 15, 2012, or any lawful immigration status or parole obtained prior to June 15, 2012, that had expired as of June 15, 2012;
• Currently in school, have graduated or obtained a certificate of completion from high school, have obtained a General Educational Development certificate, or are an honorably discharged veteran of the Coast Guard or Armed Forces of the United States; and,
• Have not been convicted of a felony, a significant misdemeanor, three or more other misdemeanors, and do not otherwise pose a threat to national security or public safety.

To note, undocumented students cannot legally receive any federally funded student financial aid, including loans, grants, scholarships or work-study money.

State law.

1. Qualifies for lower resident fee/tuition payments at the CCC, CSU, and UC, a student who attended high school in California for three or more years, graduated (or equivalency) from a California high school, enrolled at an accredited institution of higher education in California not earlier than the fall semester or quarter of 2001–02, and files an affidavit with the institution of higher education stating that the student has filed an application to legalize his or her immigration status or will file an application as soon as he or she is eligible. These students are often referred to as "AB 540 students" (EC Section 68130.5).
2. Authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend college. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, grade point average, California residency, and other eligibility criteria, as specified (EC Sections 69430 – 69439).
3. Establishes the California DREAM Act to provide state, including the Cal Grant Program and the CCC Board of Governors Fee Waiver, and institutional financial aid to students who qualify for the aforementioned exemption from non-resident tuition (as listed in number one above), students must apply by March 2 prior to the academic year; Dream Act recipients receive Cal Grant Entitlement awards, but are not eligible for Competitive Cal Grant awards unless funding remains available after eligible California students have received awards (EC Section 69508.5).
4. Establishes the California DREAM Loan Program intended to provide low-interest loans to Dream Act students who are accessing the Cal Grant program and attending UC and CSU. These students are not eligible for federal student loans, making it difficult for some to cover the total costs of college. The law requires the state, UC and CSU to split the costs of launching the program. The state would need to provide about $4.7 million General Fund to begin the program (EC Sections 70030-70039).

FISCAL EFFECT: Unknown

COMMENTS: Background. With no Social Security number, undocumented students cannot complete the Free Application for Federal Student Aid (FAFSA); therefore, undocumented students are not eligible for any federally funded financial aid, including loans, grants, scholarships or work-study money.

According to information provided by the author, in academic year 2014-15, seven UC campuses offered institutionally funded work-study awards, typically $2,000 per year, to AB 540 students with DACA status. Some of these programs were established with one-time funding and the on-going availability of the programs is presently uncertain.

To date, work-study programs for AB 540 students are not available on any CSU campuses.

Need for the measure. According to the author, California has embraced undocumented students and has enacted legislation that allows undocumented students access to benefits that assist them in paying for their higher education expenses.

The author states that, "AB 1037 will further these efforts via a statewide expansion of Dreamer work-study programs and will provide students an opportunity to explore and gain experience in their selected career path."

This measure provides an opportunity for AB 540 students to access incentive grants, regardless of eligibility to work, in order to assist in filling their unmet financial aid gaps by establishing the Cal Grant B Service Incentive Grant Program, available to California's AB 540 students who are ineligible for federal work-study programs.

Cal Grant B. The Cal Grant B award provides grant funds for access costs for low-income students in an amount not to exceed $1,656 for up to four years. This grant is to be used for living expenses and expenses related to transportation, supplies and books. Beginning with the second year of Cal Grant B benefits, Cal Grant B also helps pay for tuition/fees for California residents attending qualifying institutions offering undergraduate academic programs of not less than one academic year.

To note, awards are guaranteed for those who meet the program eligibility criteria.

Policy consideration. This bill is silent as to how the Cal Grant B Service Incentive Grant Program will be funded.

Moving forward, the author may wish to work with CSAC, the Department of Finance and the Budget Committees in order to see what, if any, funding can be appropriated to CSAC for the establishment of this program.

REGISTERED SUPPORT / OPPOSITION:

Support

California Charter Schools Association

California Immigrant Policy Center

California Student Aid Commission (sponsor)

The Education Trust-West

Opposition

None on file.

Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960