SB 15: Student financial aid: Cal Grant awards.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-07-13
(1)The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law requires that a Cal Grant C award be utilized only for occupational or technical training in a course of not less than 4 months. Existing law also requires that the maximum award amount and the total amount of funding for the Cal Grant C awards be determined each year in the annual Budget Act.
This bill would instead set the maximum amount for annual Cal Grant C awards at $2,462. The bill would also provide that, notwithstanding the maximum amount specified in the bill, the maximum amount of a Cal Grant C award could be adjusted in the annual Budget Act for that award year.
The bill would delete provisions specifying the duties of the Student Aid Commission in determining areas of occupational or technical training that meet the criteria of the Cal Grant C award program. The bill would instead require the Office of the Chancellor of the California Community Colleges to annually provide the Student Aid Commission with eligible occupational and technical training programs that meet specified conditions set forth in the bill. The bill would require private or independent postsecondary educational institutions that meet the definition of a qualifying institution set forth in a specified provision relating to the Cal Grant Program to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award. The bill would also require the Student Aid Commission to publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as specified.
(2)Existing law authorizes Cal Grant C awards to be used for purposes such as tuition, living expenses, local transportation, and books, among other things. Existing law authorizes Cal Grant B awards to be used only for tuition, student fees, and access costs, and, for purposes of the Cal Grant Program, defines access costs as living expenses, transportation expenses, supplies, and books.
This bill would authorize Cal Grant C awards to be used for technology. The bill would also authorize Cal Grant B awards to be used for technology by expanding the definition of access costs to include technology.
(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law requires that a Cal Grant C award be utilized only for occupational or technical training in a course of not less than 4 months. Existing law also requires that the maximum award amount and the total amount of funding for the Cal Grant C awards be determined each year in the annual Budget Act.
This bill would instead set the maximum amount for annual Cal Grant C awards at $2,462. The bill would also provide that, notwithstanding the maximum amount specified in the bill, the maximum amount of a Cal Grant C award could be adjusted in the annual Budget Act for that award year.
The bill would delete provisions specifying the duties of the Student Aid Commission in determining areas of occupational or technical training that meet the criteria of the Cal Grant C award program. The bill would instead require the Office of the Chancellor of the California Community Colleges to annually provide the Student Aid Commission with eligible occupational and technical training programs that meet specified conditions set forth in the bill. The bill would require private or independent postsecondary educational institutions that meet the definition of a qualifying institution set forth in a specified provision relating to the Cal Grant Program to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award. The bill would also require the Student Aid Commission to publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as specified.
(2)Existing law authorizes Cal Grant C awards to be used for purposes such as tuition, living expenses, local transportation, and books, among other things. Existing law authorizes Cal Grant B awards to be used only for tuition, student fees, and access costs, and, for purposes of the Cal Grant Program, defines access costs as living expenses, transportation expenses, supplies, and books.
This bill would authorize Cal Grant C awards to be used for technology. The bill would also authorize Cal Grant B awards to be used for technology by expanding the definition of access costs to include technology.
(2)(3)This bill would declare that it is to take effect immediately as an urgency statute.
(1)The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law requires that a Cal Grant C award be utilized only for occupational or technical training in a course of not less than 4 months. Existing law also requires that the maximum award amount and the total amount of funding for the Cal Grant C awards be determined each year in the annual Budget Act.
This bill would instead, commencing with the 201718 award year and each award year thereafter, set maximum amounts instead set the maximum amount for annual Cal Grant C awards for tuition and fees, and for access costs, respectively. at $2,462. The bill would also provide that, notwithstanding the maximum amounts amount specified in the bill, the maximum amount of a Cal Grant C award could be adjusted in the annual Budget Act for that award year.
The bill would delete provisions specifying the duties of the Student Aid Commission in determining areas of occupational or technical training that meet the criteria of the Cal Grant C award program. The bill would instead require the Office of the Chancellor of the California Community Colleges to annually provide the Student Aid Commission with eligible occupational and technical training programs that meet specified conditions set forth in the bill. The bill would require private or independent postsecondary educational institutions that meet the definition of a qualifying institution set forth in a specified provision relating to the Cal Grant Program to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award. The bill would also require the Student Aid Commission to publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as specified.
(2)This bill would declare that it is to take effect immediately as an urgency statute.
(1)The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law requires that a Cal Grant C award be utilized only for occupational or technical training in a course of not less than 4 months. Existing law also requires that the maximum award amount and the total amount of funding for the Cal Grant C awards be determined each year in the annual Budget Act.
This bill would instead, commencing with the 201718 award year and each award year thereafter, set maximum amounts for annual Cal Grant C awards for tuition and fees, and for access costs, respectively. The bill would also provide that, notwithstanding the maximum amounts specified in the bill, the maximum amount of a Cal Grant C award could be adjusted in the annual Budget Act for that award year.
The bill would delete provisions specifying the duties of the Student Aid Commission in determining areas or of occupational or technical training that meet the criteria of the Cal Grant C award program. The bill would instead require the Office of the Chancellor of the California Community Colleges to annually provide the Student Aid Commission with eligible occupational and technical training programs that meet specified conditions set forth in the bill. The bill would require private or independent postsecondary educational institutions that meet the definition of a qualifying institution set forth in a specified provision relating to the Cal Grant Program to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award. The bill would also require the Student Aid Commission to publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as specified.
(2)This bill would declare that it is to take effect immediately as an urgency statute.
(1)The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law requires that a Cal Grant C award be utilized only for occupational or technical training in a course of not less than 4 months. Existing law also requires that the maximum award amount and the total amount of funding for the Cal Grant C awards be determined each year in the annual Budget Act.
This bill would instead, commencing with the 201718 award year and each award year thereafter, set maximum amounts for annual Cal Grant C awards for tuition and fees, and for access costs, respectively. The bill would also provide that, notwithstanding the maximum amounts specified in the bill, the maximum amount of a Cal Grant C award could be adjusted in the annual Budget Act for that award year.
The bill would delete provisions specifying the duties of the Student Aid Commission in determining areas or occupational or technical training that meet the criteria of the Cal Grant C award program. The bill would instead require the Office of the Chancellor of the California Community Colleges to annually provide the Student Aid Commission with eligible occupational and technical training programs that meet specified conditions set forth in the bill. The bill would require private or independent postsecondary educational institutions that meet the definition of a qualifying institution set forth in a specified provision relating to the Cal Grant Program to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award. The bill would also require the Student Aid Commission to publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as specified.
(2)This bill would declare that it is to take effect immediately as an urgency statute.
(1)The Cal Grant Program establishes the Cal Grant A and Cal Grant B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C award, and the Cal Grant T award under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. Existing law requires that a Cal Grant C award be utilized only for occupational or technical training in a course of not less than 4 months. Existing law also requires that the maximum award amount and the total amount of funding for the Cal Grant C awards be determined each year in the annual Budget Act.
This bill would instead, commencing with the 201718 award year and each award year thereafter, set maximum amounts for annual Cal Grant C awards for tuition and fees, and for access costs, respectively. The bill would also provide that, notwithstanding the maximum amounts specified in the bill, the maximum amount of a Cal Grant C award could be adjusted in the annual Budget Act for that award year.
(2)This bill would declare that it is to take effect immediately as an urgency statute.
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, technology, 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:
CAL GRANT PROGRAM INCOME CEILINGS |
Cal Grant A, | Cal Grant B | |
Dependent and Independent students with dependents* | ||
Family Size | ||
Six or more | $74,100 | $40,700 |
Five | $68,700 | $37,700 |
Four | $64,100 | $33,700 |
Three | $59,000 | $30,300 |
Two | $57,600 | $26,900 |
| ||
Single, no dependents | $23,500 | $23,500 |
Married | $26,900 | $26,900 |
*Applies to independent students with dependents other
than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS |
Cal Grant A, | Cal Grant B | |
|
|
|
Independent | $23,600 | $23,600 |
**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.
SEC. 2.Section 69439 of the Education Code, as amended by Section 6 of Senate Bill 85 of the 2017-18 Regular Session, is amended to read:69439.(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)(1)A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months that meets the federal gainful employment standards. There shall be the same number of Cal Grant C awards each year as were made in the 200001 fiscal year. The total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.(2)The maximum amount of an annual Cal Grant C award shall not exceed two thousand four hundred sixty-two dollars ($2,462).(3)The commission shall establish an application deadline of September 2 for students to apply for this award effective commencing with the fall term or semester of the 201819 academic year.(4)Using information provided to the commission by the Office of the Chancellor of the California Community Colleges pursuant to subdivision (f), the commission shall ensure that students enrolled in a program that has high employer demand or high projected employment growth and high earning outcomes, or is part of a well-articulated career pathway to a job providing economic security, are prioritized for Cal Grant C awards.(5)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.(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, living expenses, training-related costs, such as special clothing, local transportation, required equipment and supplies, technology, and books. 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)The Office of the Chancellor of the California Community Colleges shall annually provide the commission with eligible occupational and technical training programs that meet the conditions set forth in paragraph (4) of subdivision (b). The office of the chancellor shall implement this subdivision with information from each economic and workforce development region.(g)A private or independent postsecondary educational institution that meets the definition of a qualifying institution set forth in Section 69423.7 shall provide, at a minimum, occupational or technical training programs that meet the conditions set forth in subdivision (b) in order for its Cal Grant C eligible students to receive an award under this section.(h)A postsecondary educational institution participating in the Cal Grant C program shall provide the commission with information pertaining to a students enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.(i)The commission shall publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the commission pursuant to subdivisions (f) and (h).(j)(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).(k)(1)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, 2019. 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, and to the degree that data are made available, the resulting student debt loads and wage earnings, by program and institution.(2)For the report submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2021, and on or before April 1 of each odd-numbered year thereafter, that includes the information specified in paragraph (1).(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.SEC. 2.Section 69439 of the Education Code is amended to read:69439.(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)(1)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 total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.
(2)The maximum amount of an annual Cal Grant C award shall not exceed two thousand four hundred sixty-two dollars ($2,462).
(3)The commission shall establish an application deadline of September 2 for students to apply for this award effective commencing with the fall term or semester of the 201819 academic year.
(4)Using information provided to the commission by the Office of the Chancellor of the California Community Colleges pursuant to subdivision (f), the commission shall ensure that students enrolled in a program that has high employer demand or high projected employment growth and high earning outcomes, or is part of a well-articulated career pathway to a job providing economic security, are prioritized for Cal Grant C awards.
(5)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.
(c)The commission may use criteria it deems appropriate in selecting students to receive grants for occupational or technical training 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 living expenses, training-related costs, such as special clothing, local transportation, required tools, equipment, supplies, books, and living expenses. equipment and supplies, technology, and books. 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 The Office of the Chancellor of the California Community Colleges and the California Workforce Investment Board, shall identify areas of shall annually provide the commission with eligible 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. programs that meet the conditions set forth in paragraph (4) of subdivision (b). The office of the chancellor shall implement this subdivision with information from each economic and workforce development region.
(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)A private or independent postsecondary educational institution that meets the definition of a qualifying institution set forth in Section 69432.7 shall provide, at a minimum, occupational or technical training programs that meet the conditions set forth in subdivision (b) in order for its Cal Grant C eligible students to receive an award under this section.
(h)A postsecondary educational institution participating in the Cal Grant C program shall provide the commission with information pertaining to a students enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
(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,(i)The commission shall publish, and maintain on its Internet Web site site, a current list of the areas of occupational or eligible and prioritized occupational and technical training that meet the criteria described in paragraph (3) of subdivision (f), and update this list as necessary. programs that are in demand in each economic and workforce development region, as determined according to the information provided to the commission pursuant to subdivisions (f) and (h).
(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)(j)(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)(k)(1)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, 2019. 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. needs, and to the degree that data are made available, the resulting student debt loads and wage earnings, by program and institution.
(2)For the report submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2021, and on or before April 1 of each odd-numbered year thereafter, that includes the information specified in paragraph (1).
(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to authorize the maximum annual Cal Grant C award amounts to be adjusted in accordance with this act, and authorize Cal Grant B and Cal Grant C awards to be used for technology, in time for the commencement of the 201718 award year, it is necessary that this act take effect immediately.
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, technology, 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:
CAL GRANT PROGRAM INCOME CEILINGS |
Cal Grant A, | Cal Grant B | |
Dependent and Independent students with dependents* | ||
Family Size | ||
Six or more | $74,100 | $40,700 |
Five | $68,700 | $37,700 |
Four | $64,100 | $33,700 |
Three | $59,000 | $30,300 |
Two | $57,600 | $26,900 |
| ||
Single, no dependents | $23,500 | $23,500 |
Married | $26,900 | $26,900 |
*Applies to independent students with dependents other than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS |
Cal Grant A, | Cal Grant B | |
|
|
|
Independent | $23,600 | $23,600 |
**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.
SEC. 2.Section 69439 of the Education Code, as amended by Section 6 of Senate Bill 85 of the 2017-18 Regular Session, is amended to read:69439.(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)(1)A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months. months that meets the federal gainful employment standards. 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 total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.
(2)The maximum amount of an annual Cal Grant C award shall not exceed two thousand four hundred sixty-two dollars ($2,462).
(3)The commission shall establish an application deadline of September 2 for students to apply for this award effective commencing with the fall term or semester of the 201819 academic year.
(4)Using information provided to the commission by the Office of the Chancellor of the California Community Colleges pursuant to subdivision (f), the commission shall ensure that students enrolled in a program that has high employer demand or high projected employment growth and high earning outcomes, or is part of a well-articulated career pathway to a job providing economic security, are prioritized for Cal Grant C awards.
(5)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.
(c)The commission may use criteria it deems appropriate in selecting students to receive grants for occupational or technical training 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 living expenses, training-related costs, such as special clothing, local transportation, required tools, equipment, supplies, books, and living expenses. equipment and supplies, technology, and books. 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 The Office of the Chancellor of the California Community Colleges and the California Workforce Investment Board, shall identify areas of shall annually provide the commission with eligible 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. programs that meet the conditions set forth in paragraph (4) of subdivision (b). The office of the chancellor shall implement this subdivision with information from each economic and workforce development region.
(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)A private or independent postsecondary educational institution that meets the definition of a qualifying institution set forth in Section 69423.7 shall provide, at a minimum, occupational or technical training programs that meet the conditions set forth in subdivision (b) in order for its Cal Grant C eligible students to receive an award under this section.
(h)A postsecondary educational institution participating in the Cal Grant C program shall provide the commission with information pertaining to a students enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
(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,(i)The commission shall publish, and maintain on its Internet Web site site, a current list of the areas of occupational or eligible and prioritized occupational and technical training that meet the criteria described in paragraph (3) of subdivision (f), and update this list as necessary. programs that are in demand in each economic and workforce development region, as determined according to the information provided to the commission pursuant to subdivisions (f) and (h).
(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)(j)(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)(k)(1)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, 2019. 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. needs, and to the degree that data are made available, the resulting student debt loads and wage earnings, by program and institution.
(2)For the report submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2021, and on or before April 1 of each odd-numbered year thereafter, that includes the information specified in paragraph (1).
(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 2.SEC. 3.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to authorize the maximum annual Cal Grant C award amounts to be adjusted in accordance with this act act, and authorize Cal Grant B and Cal Grant C awards to be used for technology, in time for the commencement of the 201718 award year, it is necessary that this act take effect immediately.
(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)(1)A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months that meets the federal gainful employment standards. There shall be the same number of Cal Grant C awards each year as were made in the 200001 fiscal year. The total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.
(2)Commencing with the 201718 award year, and each award year thereafter, the maximum award amount for an award year shall be set in accordance with the following:(A)(2)The maximum amount of an annual Cal Grant C award for tuition and fees shall not exceed two thousand four hundred sixty-two dollars ($2,462).
(B)The maximum amount of an annual Cal Grant C award for access costs shall not exceed five hundred forty-seven dollars ($547).(C)An additional award for access not to exceed an annual amount of two thousand four hundred fifty-three dollars ($2,453) shall be provided to community college students.(3)The commission shall establish an application deadline of September 2 for students to apply for this award effective with the fall term or semester of the 201819 academic year.
(4)Using information provided to the commission by the Office of the Chancellor of the California Community Colleges pursuant to subdivision (f), the commission shall ensure that students enrolled in a program that has high-employer demand or high-projected employment growth and high-earning outcomes, or is part of a well-articulated career pathway to a job providing economic security, are prioritized for Cal Grant C awards.
(5)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.
(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, living expenses, training-related costs, such as special clothing, local transportation, required equipment and supplies, and books. 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)The Office of the Chancellor of the California Community Colleges shall annually provide the commission with eligible occupational and technical training programs that meet the conditions set forth in paragraph (4) of subdivision (b). The office of the chancellor shall implement this subdivision with information from each economic and workforce development region.
(g)A private or independent postsecondary educational institution that meets the definition of a qualifying institution set forth in Section 69432.7 shall provide, at a minimum, occupational or technical training programs that meet the conditions set forth in subdivision (b) in order for its Cal Grant C eligible students to receive an award under this section.
(h)A postsecondary educational institution participating in the Cal Grant C program shall provide the commission with information pertaining to a students enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
(i)The commission shall publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the commission pursuant to subdivisions (f) and (h).
(j)(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).
(k)(1)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, 2018. 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, and to the degree that data are made available, the resulting student debt loads and wage earnings, by program and institution.
(2)For the report submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2020, and on or before April 1 of each even-numbered year thereafter, that includes the information specified in paragraph (1).
(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to authorize the maximum annual Cal Grant C award amounts to be adjusted in accordance with this act in time for the commencement of the 201718 award year, it is necessary that this act take effect immediately.
(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)(1)A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months that meets the federal gainful employment standards. There shall be the same number of Cal Grant C awards each year as were made in the 200001 fiscal year. The total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.
(2)Commencing with the 201718 award year, and each award year thereafter, the maximum award amount for an award year shall be set in accordance with the following:
(A)The maximum amount of an annual Cal Grant C award for tuition and fees shall not exceed two thousand four hundred sixty-two dollars ($2,462).
(B)The maximum amount of an annual Cal Grant C award for access costs shall not exceed five hundred forty-seven dollars ($547).
(C)An additional access award award for access not to exceed an annual amount of two thousand four hundred fifty-three dollars ($2,453) shall be provided to community college students.
(3)The commission shall establish an application deadline of September 2 for students to apply for this award effective with the fall term or semester of the 201819 academic year.
(4)Using information provided to the commission by the Office of the Chancellor of the California Community Colleges pursuant to subdivision (f), the commission shall ensure that students enrolled in a program that has high-employer demand or high-projected employment growth and high-earning outcomes, or is part of a well-articulated career pathway to a job providing economic security, are prioritized for Cal Grant C awards.
(5)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.
(c)The commission may use criteria it deems appropriate in selecting students to receive grants for occupational or technical training 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, living expenses, training-related costs, such as special clothing, local transportation, required equipment and supplies, and books. 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)The Office of the Chancellor of the California Community Colleges shall annually provide the commission with eligible occupational and technical training programs that meet the conditions set forth in paragraph (4) of subdivision (b). The office of the chancellor shall implement this subdivision with information from each economic and workforce development region.
(g)A private or independent postsecondary educational institution that meets the definition of a qualifying institution set forth in Section 69432.7 shall provide, at a minimum, occupational or technical training programs that meet the conditions set forth in subdivision (b) in order for its Cal Grant C eligible students to receive an award under this section.
(h)A postsecondary educational institution participating in the Cal Grant C program shall provide the commission with information pertaining to a students enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
(i)The commission shall publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the commission pursuant to subdivisions (f) and (h).
(j)(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).
(k)(1)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, 2018. 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, and to the degree that data are made available, the resulting student debt loads and wage earnings, by program and institution.
(2)For the report submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2020, and on or before April 1 of each even-numbered year thereafter, that includes the information specified in paragraph (1).
(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to authorize the maximum annual Cal Grant C award amounts to be adjusted in accordance with this act in time for the commencement of the 201718 award year, it is necessary that this act take effect immediately.
(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)(1)A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months. months that meets the federal gainful employment standards. There shall be the same number of Cal Grant C awards each year as were made in the 200001 fiscal year. The total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.
(2)Commencing with the 201718 award year, and each award year thereafter, the maximum award amount for an award year shall be set in accordance with the following:
(A)The maximum amount of an annual Cal Grant C award for tuition and fees shall not exceed two thousand four hundred sixty-two dollars ($2,462).
(B)The maximum amount of an annual Cal Grant C award for access costs shall not exceed three thousand dollars ($3,000). five hundred forty-seven dollars ($547).
(C)An additional access award not to exceed an annual amount of two thousand four hundred fifty-three dollars ($2,453) shall be provided to community college students.
(3)The commission shall establish an application deadline of September 2 for students to apply for this award effective with the fall term or semester of the 201819 academic year.
(4)Using information provided to the commission by the Office of the Chancellor of the California Community Colleges pursuant to subdivision (f), the commission shall ensure that students enrolled in a program that has high-employer demand or high-projected employment growth and high-earning outcomes, or is part of a well-articulated career pathway to a job providing economic security, are prioritized for Cal Grant C awards.
(3)(5)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.
(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 living expenses, training-related costs, such as special clothing, local transportation, required tools, equipment, supplies, books, and living expenses. equipment and supplies, and books. 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.(f)The Office of the Chancellor of the California Community Colleges shall annually provide the commission with eligible occupational and technical training programs that meet the conditions set forth in paragraph (4) of subdivision (b).
(g)A private or independent postsecondary educational institution that meets the definition of a qualifying institution set forth in Section 69432.7 shall provide, at a minimum, occupational or technical training programs that meet the conditions set forth in subdivision (b) in order for its Cal Grant C eligible students to receive an award under this section.
(h)A postsecondary educational institution participating in the Cal Grant C program shall provide the commission with information pertaining to a students enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
(i)The commission shall publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the commission pursuant to subdivisions (f) and (h).
(i)(j)(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)
(k)(1)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, 2018. 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. needs, and to the degree that data are made available, the resulting student debt loads and wage earnings, by program and institution.
(2)For the report submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2020, and on or before April 1 of each even-numbered year thereafter, that includes the information specified in paragraph (1).
(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to authorize the maximum annual Cal Grant C award amounts to be adjusted in accordance with this act in time for the commencement of the 201718 award year, it is necessary that this act take effect immediately.
(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)(1)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 for Cal Grant C awards shall be determined each year in the annual Budget Act.
(2)Commencing with the 201718 award year, and each award year thereafter, the maximum award amount for an award year shall be set in accordance with the following:
(A)The maximum amount of an annual Cal Grant C award for tuition and fees shall not exceed two thousand four hundred sixty-two dollars ($2,462).
(B)The maximum amount of an annual Cal Grant C award for access costs shall not exceed three thousand dollars ($3,000).
(3)Notwithstanding paragraph (2), the maximum amount of a Cal Grant award may be adjusted in the annual Budget Act for that award year.
(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. 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)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, 2018. 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 submitted pursuant to paragraph (1), 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)Notwithstanding Section 10231.5 of the Government Code, the commission shall submit a report to the Legislature on or before April 1, 2020, and on or before April 1 of each even-numbered year thereafter, that includes the information specified in paragraph (1).
(4)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to authorize the maximum annual Cal Grant C award amounts to be adjusted in accordance with this act in time for the commencement of the 201718 award year, it is necessary that this act take effect immediately.
|
Date
|
Status
|
|---|---|
| Sep 1, 2017 | September 1 hearing: Held in committee and under submission. |
| Aug 23, 2017 | August 23 set for first hearing. Placed on suspense file. |
| Jul 13, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 12, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (July 11). |
| Jun 27, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HIGHER ED. |
| Jun 12, 2017 | Referred to Com. on HIGHER ED. |
| Jun 1, 2017 | In Assembly. Read first time. Held at Desk. |
| May 31, 2017 | Read third time. Urgency clause adopted. Passed. (Ayes 39. Noes 0. Page 1318.) Ordered to the Assembly. |
| May 26, 2017 | Read second time and amended. Ordered to third reading. |
| May 25, 2017 | From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1176.) (May 25). |
| May 19, 2017 | Set for hearing May 25. |
| May 15, 2017 | May 15 hearing: Placed on APPR. suspense file. |
| May 4, 2017 | Set for hearing May 15. |
| May 3, 2017 | May 8 hearing postponed by committee. |
| May 1, 2017 | Set for hearing May 8. |
| Apr 26, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 25, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 781.) (April 19). |
| Apr 3, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED. |
| Mar 28, 2017 | Set for hearing April 19. |
| Mar 6, 2017 | March 15 set for first hearing canceled at the request of author. |
| Feb 23, 2017 | Set for hearing March 15. |
| Jan 12, 2017 | Referred to Com. on ED. |
| Dec 6, 2016 | From printer. May be acted upon on or after January 5. |
| Dec 5, 2016 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 11, 2017 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Higher Education |
Passed |
|
| May 31, 2017 | Senate 3rd Reading SB15 Leyva Urgency Clause | Senate Floor |
Passed |
|
| May 25, 2017 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| May 15, 2017 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 19, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Community College Association For Occupational Education | ** Support | May 27, 2017 |
| California Community Colleges Chancellor's Office | ** Support | Jul 10, 2017 |
| California EDGE Coalition | ** Support | Jul 10, 2017 |
| California Hospital Association | ** Support | May 27, 2017 |
| California Student Aid Commission | ** Support | Jul 10, 2017 |
| Community College League of California | ** Support | May 27, 2017 |
| Faculty Association Of California Community Colleges | ** Support | May 27, 2017 |
| Service Employees International Union | ** Support | Jul 10, 2017 |
| Western Association for College Admission Counseling | ** Support | Jul 10, 2017 |
| Young Invincibles | ** Support | May 27, 2017 |
Date of Hearing: August 23, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 15
Author:(Leyva) – As Amended Ver:July 13, 2017
Policy Committee: | Higher Education | Vote: | 13 - 0 |
Urgency: Yes State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill, an urgency measure, makes several changes to Cal Grant awards and statutorily establishes the maximum Cal Grant C award at $2,462 for tuition and fees. Specifically, this bill:
- Authorizes Cal Grant C awards to be used for technology by expanding the definition of access costs.
- Establishes the maximum annual amount of the Cal Grant C award at $2,462 and authorizes adjustment of this maximum amount in the annual Budget Act.
- Modifies eligibility requirements for Cal Grant C participating occupational or technical training programs by requiring that a Cal Grant C award be utilized only for occupational or technical training courses.
- Requires private and public postsecondary educational institutions participating in the Cal Grant C program to annually provide the California Student Aid Commission (CSAC) with eligible occupational and technical training program enrollment information.
- Requires CSAC to adequately use information provided by the California Community College Chancellor’s Office (CCCCO), to establish an application deadline of September 2, and publish a current list of the eligible and prioritized occupational and technical training programs.
- Deletes provisions that give priority in granting Cal Grant C awards to applicants seeking to enroll in programs with high graduation rates.
- Modifies the reporting requirement CSAC is statutorily required to submit to the Legislature.
- Makes other clarifying and technical changes.
FISCAL EFFECT:
- Approximately $3.4 million General Fund in additional costs for the 2017-18 Cal Grant C award year and unknown ongoing costs. The total number of Cal Grant C awards currently authorized is set at 7,761 and allows for the maximum award amount and total amount to be set annually in the state budget. The 2017-18 budget set the maximum annual award at $547 for training related non-tuition costs and up to $2,462 more for tuition and fees for attendance at an institution other than a California Community College (CCC). This bill language effectively creates a single award, which is defined as being an access award for $2,642. The bill’s changes increase the paid rate for the existing allocation of awards and future awards, resulting in additional costs to the state.
- General Fund costs to the CCCCO of approximately $20,000 to provide CSAC with the required information on eligible occupational and technical training programs.
COMMENTS:
- Purpose. According to the author, "The Cal Grant C program is currently undersubscribed." The author contends by streamlining the application process, an existing barrier to eligible Cal Grant C students will be removed, thus the state should see an increase in the take-up rate.”
- Background Existing law authorizes the Cal Grant C program, administered by CSAC, to assist with tuition and training costs at occupational or vocational programs. State law also establishes the total number of Cal Grant C awards as the number awarded in the 2000-01 fiscal year (7,761) with the maximum award amount and the total amount of funding being determined in the annual Budget Act ($2,462 for tuition and $547 for non-tuition access costs). To qualify, a student must enroll in an occupational, technical, or vocational program that is at least four months long at a CCC, an independent college, or a vocational/career school. CSAC is required to consult with the appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards, and give priority in granting Cal Grant C awards to students pursuing occupational or technical training. CSAC determines areas of occupational or technical training in consultation with the California Employment Development Department (EDD).
In 2015-16, Cal Grant C supplemental forms were sent to approximately 60,000 students potentially eligible for Cal Grant C awards. However, CSAC only saw a 15 percent response rate, which means that 43 percent of the Cal Grants C awards were left on the table. According to a recent report by the Legislative Analyst Office, the CCC system is the primary destination of Cal Grant C recipients, typically serving between 60 to 70 percent of all grantees. CCC students are only eligible to receive the smaller grant ($547) for access costs (i.e. books and supplies).
- Related Legislation. AB 370 (Rodriguez) would have required the CSAC to offer competitive Cal Grants under a new process that incorporates the average “take-rate” from the prior three award years in order to estimate the number of awards to be offered to achieve the current statutory limit of 25,750 annual awards. This bill was held in the Assembly Appropriations Committee.
SB 85 (Budget and Fiscal Review), Chapter 23, Statutes of 2017, extends reporting deadlines for the LAO to submit a report to the Legislature on the outcomes of the Cal Grant C program from April 1, 2018, to April 1, 2019.
Analysis Prepared by: Daisy Gonzales / APPR. / (916) 319-2081
Date of Hearing: July 11, 2017
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
SBPCA Bill Id:SB 15
Author:(Leyva) – As Amended Ver:June 27, 2017
SENATE VOTE: 39-0
SUBJECT: Student financial aid: Cal Grant awards.
SUMMARY: Makes changes to Cal Grant awards and streamlines the application process. Specifically, this bill:
- Establishes, statutorily the maximum annual amount of the Cal Grant C award at $2,462 and authorizes adjustment of this maximum amount in the annual Budget Act.
- Authorizes Cal Grant B and C awards to be used for technology by expanding the definition of "access costs" to include technology.
- Modifies eligibility requirements for Cal Grant C participating occupational or technical training programs by requiring that a Cal Grant C award be utilized only for occupational or technical training courses that meet federal gainful employment standards.
- Deletes provisions specifying the duties of California Student Aid Commission (CSAC) in determining areas of occupational or technical training that meet the criteria of the Cal Grant C award program.
- Requires the California Community Colleges (CCC) Chancellor's Office (CCCCO) to annually provide the CSAC with eligible occupational and technical training programs, as specified.
- Recasts provisions that require CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth.
- Requires CSAC to do all of the following:
- Using information provided by the CCCCO, ensure that priority is given to students enrolled in a program that meets the following criteria:
- High-employer demand or high-projected employment growth; and,
- High-earning outcomes, or is part of a well-articulated career pathway to a job providing economic security.
- Establish an application deadline of September 2 for students to apply for the Cal Grant C award effective with the fall term or semester of the 2018–19 academic year;
- Publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the CSAC as specified.
- Using information provided by the CCCCO, ensure that priority is given to students enrolled in a program that meets the following criteria:
- Deletes provisions that give priority in granting Cal Grant C awards to applicants seeking to enroll in programs that rate high in graduation rates.
- Requires private or independent postsecondary educational institutions that meet the definition of a “qualifying institution” as defined, to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award.
- Requires a postsecondary educational institution participating in the Cal Grant C program to provide CSAC with the specified information in (9) above in a timely manner, in order to facilitate the processing of awards.
- Modifies the reporting requirement CSAC is statutorily required to submit to the Legislature on outcomes of the Cal Grant C program.
- Makes clarifying and technical changes.
EXISTING LAW:
- Authorizes the Cal Grant C program, administered by CSAC, to assist with tuition and training costs at occupational or vocational programs of four months to two years in length. Existing law establishes the total number of Cal Grant C awards as the number awarded in the 2000-01 fiscal year (7,761) with the maximum award amount and the total amount of funding being determined in the annual Budget Act ($2,462 for tuition and $547 for non-tuition access costs) (Education Code (EC) Section 69439);
- Requires CSAC to use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. The CSAC is directed to give additional consideration to disadvantaged, low income, and long-term unemployed applicants (EC Section 69439 (c));
- Requires CSAC to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards. These areas of occupational and technical training are required to be regularly received and updated at least every five years, beginning in 2012 (EC Section 69439 (f)(1) and (2));
- Requires CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth. CSAC is required to determine areas of occupational or technical training that meet these criteria in consultation with the California Employment Development Department (EDD) using projections available through the Market Information Data Library (EC Section 69439 (f)(3)); and,
- Requires the Legislative Analyst’s Office (LAO) to submit a report to the Legislature on the outcomes of the Cal Grant C program on or before April 1, 2018, and transfers reporting responsibilities to CSAC thereafter, as specified (EC Section 69439 (j)(2)and(3)).
- Establishes CSAC for the purpose of administering specified student financial aid programs (EC Section 69510, et seq.).
- Establishes the CCC Economic and Workforce Development (EWD) Program to be implemented and administered by the CCCCO in those fiscal years for which funds are appropriated for this purpose. And, requires the CCC Chancellor to implement performance accountability outcome measures to annually provide the Governor, Legislature, and the public with information that quantifies employer and student outcomes for program participants (EC Sections 88600 and 88650).
FISCAL EFFECT: According to the Senate Appropriations Committee:
- The total number of Cal Grant C awards currently authorized is set at 7,761. The bill’s changes to the application process for students is expected to increase the paid rate for the existing allocation of awards and not result in additional costs to the state.
- General Fund costs to the CCCCO of approximately $80,000 to provide CSAC with the required information on eligible occupational and technical training programs.
COMMENTS: Urgency clause. To ensure that the authorized award amounts as specified in this measure are able to be adjusted in time for the commencement of the 2017-18 award year, this measure contains an urgency clause.
Cal Grant C. The existing Cal Grant C program provides financial aid to support California students pursuing occupational and technical training. Statute limits the number of new annual awards to 7,761, which has not changed since award year 2000-01. In 2015-16, the maximum annual award was $547 for training related non-tuition costs and up to $2,462 more for tuition and fees for attendance at an institution other than a CCC. Funding is available for up to two years, depending on the length of the program. To qualify, a student must enroll in an occupational, technical, or vocational program that is at least four months long at a CCC, an independent college, or a vocational/career school.
According to the 2013-14 report on Cal Grant awardees prepared by CSAC, almost 82 percent of Cal Grant C awardees are independent students. About 68 percent earned less than $18,000 annually, and more than 85 percent earned less than $30,000 annually. To note, almost half are over the age of 30.
Additionally, according to a recent LAO report, the CCC system is the primary destination of Cal Grant C recipients, typically serving between 60 to 70 percent of all grantees. The report also confirms that because of the CCC Board of Governor’s fee waiver program, students attending community colleges are only eligible to receive the smaller grant ($547) for access costs (i.e. books and supplies). Although the vast majority of students who receive the Cal Grant C are enrolled in community college programs, in 2014-15 almost 40 percent of the total funds awarded were paid to students enrolled in vocational for-profit programs.
Cal Grant C take-up rate. Qualifying applicants who completed and returned a Cal Grant C Supplemental form compete for 7,761 Cal Grant C awards. According to CSAC, in 2015-16 Cal Grant C supplemental forms were sent to approximately 60,000 students potentially eligible for Cal Grant C awards. However, CSAC received only a 15 percent response rate with only 9,007 Cal Grant C supplemental forms returned. Additionally, in 2015-16, 8,515 awards were offered, of which 4,427 (57 percent) were ultimately paid. This means that 43 percent of the Cal Grants C awards were left on the table.
Concerns have been raised that the resulting low participation rates can be attributed to low award amounts, fewer college choices as a result of school closures or the supplemental application which can prolong the award process. SB 1028 (Jackson), Chapter 627, Statutes of 2014, authorized the CSAC to prioritize applicant’s pursuing training in occupations that meet strategic workforce needs, those from economically disadvantage backgrounds and long-term unemployed. To note, in order to determine an applicant’s eligibility for a Cal Grant C, additional information must be provided on the Cal Grant C Supplement form.
This measure will eliminate the need for a supplemental form by requiring postsecondary institutions to report information pertaining to a student’s enrollment in an eligible or prioritized program directly to CSAC.
Need for this measure. According to the author, "The Cal Grant C program is currently undersubscribed." The author contends by streamlining the application process, an existing barrier to eligible Cal Grant C students will be removed, thus the state should see an increase in the take-up rate.
Existing data exchange process. The current process requires CSAC to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards; said agencies include the EDD, CCCCO, and the California Workforce Investment Board.
This measure streamlines the administrative process by requiring data to be exchanged between CSAC and the CCCCO, by requiring the CCCCO to annually provide CSAC with a list of eligible programs.
According to the CCCCO, it collects criteria pertaining to regional workforce needs and high growth sectors under its EWD division. Committee Staff understands that enactment of this measure will reduce duplicative data collection by two state entities associated with workforce development programs and should ease the overall administrative burden for CSAC that may have otherwise prolonged processing of awards.
Gainful employment regulation. The gainful employment regulation was meant to hold career-preparation programs accountable for the outcomes of their graduates. To qualify for federal student aid, federal law requires that most for-profit programs and certificate programs at private non-profit and public institutions prepare students for gainful employment in a recognized occupation.
The regulations distinguish programs that provide affordable training that lead to well-paying jobs from programs that leave students with poor earnings prospects and high amounts of debt. The regulations support greater accountability for colleges by requiring institutions to provide key information on program costs, whether students graduate, how much they earn, and how much debt they may accumulate. These required standard disclosures are intended to empower students to compare across career college programs when searching for and selecting a program.
To note, at the end of June 2017, a federal judge ruled that the existing gainful employment rules are illegal. Additionally, the U. S. Department of Education (USDE) recently announced that it will roll back the gainful employment rules and begin to revise them in November or December of 2017. That means that a revised rule could not take place until July 2019.
Committee comments and amendments. As presently drafted, this measure requires all Cal Grant C participating occupational or technical training programs to meet federal gainful employment standards.
According to the CCCCO, each occupational and vocational program offered by its colleges meet these standards. Presumably, other institutions that qualify for federal aid programs are also in compliance and are less likely to be impacted by the change. However, it is unclear whether any institution would be disqualified as a result of the proposed requirement.
Additionally, as mentioned in the "gainful employment regulation" section of this analysis, the gainful employment regulation has been deemed illegal, and the USDE has also opined that it will delay implementing the existing regulations and begin to work on revising said regulations.
Is it premature for California to link Cal Grant eligibility to the federal gainful employment rules?
Committee Staff recommends, and the author has agreed to accept, the following amendment:
(b) (1) A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months that meets the federal gainful employment standards. There shall be the same number of Cal Grant C awards each year as were made in the 2000–01 fiscal year. The total amount of funding for Cal Grant C awards shall be determined each year in the annual Budget Act.
REGISTERED SUPPORT / OPPOSITION:
Support
California Community Colleges Chancellor's Office
California EDGE Coalition
California Student Aid Commission
Service Employees International Union
Western Association for College Admission Counseling
Opposition
None on file
Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 15
:
SENATE EDUCATION COMMITTEE: 7-0, 4/19/17
AYES: Allen, Wilk, Galgiani, Leyva, Mendoza, Pan, Vidak
SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/25/17
AYES: Lara, Bates, Beall, Bradford, Hill, Wiener
NO VOTE RECORDED: Nielsen
DIGEST:
This bill, an urgency measure, modifies the Cal Grant C program by statutorily establishing the maximum award at $2,462 and makes other changes to streamline the application process.
Existing law:
- Authorizes the Cal Grant C program, administered by California Student Aid Commission (CSAC) to assist with tuition and training costs at occupational or vocational programs of four months to two years in length. Existing law establishes the total number of Cal Grant C awards as the number awarded in the 2000-01 fiscal year (7,761) with the maximum award amount and the total amount of funding being determined in the annual Budget Act ($2,462 for tuition and $547 for non-tuition access costs), (Education Code § 69439)
- Requires CSAC to use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. The CSAC is directed to give additional consideration to disadvantaged, low income, and long-term unemployed applicants. ( EC § 69439 (c))
- Requires CSAC to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards. These areas of occupational and technical training are required to be regularly received and updated at least every five years, beginning in 2012. (EC § 69439 (f) (1) and (2))
- Requires CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth. CSAC is required to determine areas of occupational or technical training that meet these criteria in consultation with the Employment Development Department (EDD) using projections available through the Market Information Data Library. (EC § 69439 (f) (3))
- Requires the Legislative Analyst’s Office to submit a report to the Legislature on the outcomes of the Cal Grant C program on or before April 1, 2018, and transfers reporting responsibilities to CSAC thereafter, as specified. (EC § 69439 (j)(2)and(3))
- Establishes the California Community Colleges (CCC) Economic and Workforce Development (EWD) Program to be implemented and administered by the Chancellor’s Office of the CCC (CCCCO) in those fiscal years for which funds are appropriated for this purpose.
- Requires the Chancellor to implement performance accountability outcome measures to annually provide the Governor, Legislature, and the public with information that quantifies employer and student outcomes for program participants. (EC § 88600, § 88650)
This bill:
- Modifies eligibility requirements for Cal Grant C participating occupational or technical training programs by requiring that a Cal Grant C award be utilized only for occupational or technical training courses that meet federal gainful employment standards.
- Establishes, statutorily the maximum annual amount of the Cal Grant C at $2,462 and authorizes adjustment of this maximum amount in the annual Budget Act.
- Deletes provisions specifying the duties of the CSAC in determining areas or occupational or technical training that meets the criteria of the Cal Grant C award program.
- Requires the CCCCO to annually provide the CSAC with eligible occupational and technical training programs, as specified.
- Recasts provisions that require CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth.
- Requires CSAC to do all of the following:
- Using information provided by the CCCCO, ensure that priority is given to students enrolled in a program that meets the following criteria:
- High-employer demand or high-projected employment growth; and
- High-earning outcomes, or is part of a well-articulated career pathway to a job providing economic security.
- Establish an application deadline of September 2 for students to apply for the Cal Grant C award effective with the fall term or semester of the 2018–19 academic year.
- Publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the CSAC as specified.
- Using information provided by the CCCCO, ensure that priority is given to students enrolled in a program that meets the following criteria:
- Deletes provisions that give priority in grant Cal Grant C awards to applicants seeking to enroll in programs that rate high in graduation rates.
- Requires private or independent postsecondary educational institutions that meet the definition of a “qualifying institution” as defined, to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award.
- Requires a postsecondary educational institution participating in the Cal Grant C program to provide CSAC with the specified information in a timely manner, in order to facilitate the processing of awards.
- Modifies the reporting requirement CSAC is statutorily required to submit to the Legislature on outcomes of the Cal Grant C program.
- Makes this bill an urgency measure in order to authorize the award amounts to be adjusted in time for the commencement of the 2017-18 award year.
- Makes other technical and conforming changes
Comments
- Need for the bill. According to the author, the take rate for the Cal Grant C program is very low and as a consequence, money which the state has budgeted for this purpose remains unused. Additionally, the author asserts that Cal Grant C awards have significantly less value for CCC students who also qualify a Board of Governor’s fee waiver. These students are only eligible for an award designated for non-tuition costs ($547) and not the amount allotted for fees and tuition ($2,462). As such, community college students receive less Cal Grant C assistance than their peers who enroll in programs offered by private colleges.
This bill also aims to improve Cal Grant C participation rates by streamlining the application process for these students and statutorily establishing the maximum annual amount of the Cal Grant C at $2,462.
- Cal Grant C background. Students meeting the general eligibility for the Cal Grant award may be considered for the Cal Grant C. There is no high school graduation requirement, minimum grade point average or maximum age for recipients. However, students must be California residents, have United States or eligible noncitizen status, complete U.S. selective service requirements, enroll at least half-time at an eligible California institution, maintain satisfactory academic progress (defined by the institution) once enrolled, meet family income and asset ceilings, and not be in default on any student loan or owe any federal or state grant refund.
In 2015-16, the maximum annual award was $547 for training related non-tuition costs and up to $2,462 more for tuition and fees for attendance at an institution other than a CCC. Funding is available for up to two years, depending on the length of the program. To qualify, a student must enroll in an occupational, technical, or vocational program that is at least four months long at a CCC, an independent college, or a vocational/career school.
According to the 2013-14 report on Cal Grant awardees prepared by the CSAC, almost 82 percent of Cal Grant C awardees are independent students. About 68 percent earned less than $18,000 annually, and more than 85 percent earned less than $30,000 annually. Almost half are over age 30.
- Who receives a Cal Grant C? According to a recent Legislative Analyst’s Office report, the CCC system is the primary destination of Cal Grant C recipients, typically serving between 60 percent and 70 percent of all grantees. The report also confirms that because of the Board of Governor’s fee waiver program, students attending community colleges are only eligible to receive the smaller grant ($547) for access costs (i.e. books and supplies). Although the vast majority of students who receive the Cal Grant C are enrolled in community college programs, in 2014-15 almost 40 percent of the total funds awarded are paid to students enrolled in vocational for-profit programs.
- Low participation rates. Qualifying applicants who complete and returned a Cal Grant C Supplement form compete for 7,761 Cal Grant C awards. According to CSAC, in 2015-16 Cal Grant C supplements were sent to approximately 60,000 students potentially eligible for Cal Grant C awards. However, CSAC received only a 15 percent response rate with only 9,007 Cal Grant C supplements returned. Additionally, in 2015-16, 8,515 awards were offered, of which 4,427 (57 percent) were ultimately paid. As such, nearly half 43 percent of the Cal Grants C awarded were left on the table.
Concerns have been raised that the resulting low participation rates can be attributed to low award amounts, fewer college choices as a result of school closures or the supplemental application which can prolong the award process. SB 1028 (Jackson, Chapter 627, Statutes of 2014) authorized the CSAC to prioritize applicant’s pursuing training in occupations that meet strategic workforce needs, those from economically disadvantage backgrounds and long-term unemployed. In order to determine an applicant’s eligibility for a Cal Grant C, additional information must be provided on the Cal Grant C Supplement form.
This bill seeks to eliminate the need for a supplemental form by requiring postsecondary institutions to report information pertaining to a student’s enrollment in an eligible or prioritized program directly to CSAC.
- Data exchange. This bill simplifies the administrative process by requiring data to be exchanged between CSAC and the CCCCO. The current process requires CSAC to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards. These agencies include the EDD, CCCCO, and the California Workforce Investment Board. This bill instead requires the CCCCO to annually provide CSAC with a list of eligible programs. According to the CCCCO, it collects criteria pertaining to regional workforce needs and high growth sectors under its EWD division. Enactment of these provisions reduces duplicative data collection by two state entities associated with workforce development programs and eases the overall administrative burden for CSAC that may have otherwise prolonged processing of awards.
- Gainful employment regulation background. To qualify for federal student aid, federal law requires that most for-profit programs and certificate programs at private non-profit and public institutions prepare students for "gainful employment in a recognized occupation." The regulations distinguish programs that provide affordable training that lead to well-paying jobs from programs that leave students with poor earnings prospects and high amounts of debt. The regulations support greater accountability for colleges by requiring institutions to provide key information on program costs, whether students graduate, how much they earn, and how much debt they may accumulate. These required standard disclosures are intended to empower students to compare across career college programs when searching for and selecting a program.
This bill requires all Cal Grant C participating occupational or technical training programs to meet these federal gainful employment standards. According to the CCCCO, each occupational and vocational program offered by its colleges meet these standards. Presumably, other institutions that qualify for federal aid programs are also in compliance and are less likely to be impacted by the change. It’s unclear whether any institution would be disqualified as a result of the proposed requirement.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- The total number of Cal Grant C awards currently authorized is set at 7,761. This bill’s changes to the application process for students is expected to increase the paid rate for the existing allocation of awards and not result in additional costs to the state.
- General Fund costs to the CCCCO of approximately $80,000 to provide CSAC with the required information on eligible occupational and technical training programs.
California Community College Association for Occupational Education
California Edge Coalition
California Hospital Association
Community College League of California
Faculty Association of California Community Colleges
Young Invincibles
OPPOSITION: (Verified 5/26/17)
5/27/17 17:40:33
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 15 (Leyva) - Student financial aid: Cal Grant C awards
Version: April 26, 2017 | Policy Vote: ED. 7 - 0 |
Urgency: Yes | Mandate: No |
Hearing Date: May 25, 2017 | Consultant: Lenin Del Castillo |
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 25, 2017
Bill Summary:
This bill, an urgency measure, modifies the Cal Grant C program by statutorily establishing the maximum award at $2,462 for tuition and fees and $547 for access and costs and makes other changes to streamline the application process.
Fiscal Impact:
- The total number of Cal Grant C awards currently authorized is set at 7,761. The bill’s changes to the application process for students is expected to increase the paid rate for the existing allocation of awards and not result in additional costs to the state.
- General Fund costs to the Chancellor’s Office of the California Community Colleges of approximately $80,000 to provide CSAC with the required information on eligible occupational and technical training programs.
Author Amendments:
Remove the additional award of $2,453 for access costs to community college students.
-- END --
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 15 (Leyva) - Student financial aid: Cal Grant C awards
Version: April 26, 2017 | Policy Vote: ED. 7 - 0 |
Urgency: Yes | Mandate: No |
Hearing Date: May 15, 2017 | Consultant: Lenin Del Castillo |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
This bill, an urgency measure, modifies the Cal Grant C program by statutorily establishing the maximum award at $2,462 for tuition and fees and $547 for access and costs, and providing an additional award of $2,453 for access costs to community college students.
Fiscal Impact:
While the total number of Cal Grant C awards that are authorized each year is set at 7,761, the California Student Aid Commission (CSAC) estimates cost pressure of $15.5 million in the first year of implementation and $17.5 million annually thereafter to appropriate additional General Fund as a result of the changes proposed by this bill, particularly the establishment of the additional award for community college student access costs.
General Fund costs to the Chancellor’s Office of the California Community Colleges of approximately $80,000 to provide CSAC with the required information on eligible occupational and technical training programs.
Background:
Existing law authorizes the Cal Grant C program, administered by the CSAC, to provide grants to financially needy students with tuition and training costs at occupational or vocational programs of four months to two years in length. Existing law establishes the total number of Cal Grant C awards as the number awarded in the 2000-01 fiscal year (7,761) with the maximum award amount and the total amount of funding being determined in the annual Budget Act ($2,462 for tuition and $547 for non-tuition access costs)
The CSAC is required to use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. The CSAC is directed to give additional consideration to disadvantaged, low income, and long-term unemployed applicants. The CSAC is also required to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards. These areas of occupational and technical training are required to be regularly received and updated at least every five years, beginning in 2012.
Existing law requires CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth. CSAC is required to determine areas of occupational or technical training that meet these criteria in consultation with the Employment Development Department using projections available through the Market Information Data Library.
Proposed Law:
This bill, an urgency measure, modifies the eligibility requirements for Cal Grant C occupational or technical training programs by requiring that the awards be utilized only for courses that meet federal gainful employment standards.
The bill statutorily establishes the maximum annual amount of the Cal Grant C for tuition and fees as $2,462; statutorily establishes the maximum annual amount of the Cal Grant C award for access costs as $547; and establishes, for community college students, an additional award for access costs not to exceed an annual amount of $2,453 (these students do not receive the aforementioned tuition and fee award). The bill also authorizes the adjustment of these amounts in the annual Budget Act.
Further, the bill deletes provisions specifying the duties of the CSAC in determining areas of occupational or technical training that meets the criteria of the Cal Grant C award program, and requires that the Office of the Chancellor of the California Community Colleges annually provide the CSAC with eligible occupational and technical training programs.
The bill requires CSAC to ensure that priority is given to students enrolled in a program that has high-employer demand or high-projected employment growth and high-earning outcomes, or is part of a well-articulated career pathway to a job providing economic security. It also establishes an application deadline of September 2 for students to apply for the Cal Grant C award effective with the fall term or semester of the 2018–19 academic year.
The bill requires the CSAC to publish, and maintain on its Internet Web site, a current list of the eligible and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as specified, and deletes provisions that give priority in grant Cal Grant C awards to applicants seeking to enroll in programs that rate high in graduation rates.
The bill requires private or independent postsecondary educational institutions that meet the definition of a “qualifying institution” as defined, to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award. The bill also requires a postsecondary educational institution participating in the Cal Grant C program to provide CSAC with information pertaining to a student’s enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
Finally, the bill modifies the reporting requirement CSAC is statutorily required to submit to the Legislature on the outcomes of the Cal Grant C program
Related Legislation:
AB 370 (Rodriguez) would require the CSAC to offer competitive Cal Grants under a new process that incorporates the average “take-rate” from the prior three award years in order to estimate the number of awards to be offered to achieve the current statutory limit of 25,750 annual awards. This bill is pending in the Assembly Appropriations Committee.
Staff Comments:
The CSAC is authorized in statute to award a total of 7,761 Cal Grant C awards each year. As the program has experienced low participation rates in recent years (e.g., 55.32 percent in 2015-16), the bill’s proposed changes are expected to enable CSAC to utilize more of its existing allocation of awards. The CSAC indicates the total additional General Fund costs to be $15.5 million in the first year of implementation and $17.5 million annually thereafter. These estimates reflect the bill’s proposal to establish, for community college students, an additional award of $2,453 for access costs.
The Chancellor’s Office of the California Community Colleges estimates annual General Fund costs of $80,000 regarding the bill’s requirement to provide CSAC with eligible occupational and technical training programs. These costs will be associated with additional workload for each of the seven regional directors and the statewide director to review reports, analyze data, gather information from all of the centers for the central office, and prepare findings for transfer to CSAC.
-- END --
SENATE COMMITTEE ON EDUCATION
Senator Benjamin Allen, Chair
2017 - 2018 Regular
Bill No: Hearing Date: April 19, 2017
Author: | Leyva | ||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject:
SUMMARY
This bill, an urgency measure, modifies the Cal Grant C program, statutorily establishes the maximum Cal Grant C award at $2,462 for tuition and fees and $547 for access costs, and provides for an additional $2,453 award for access costs to community college students. This bill also authorizes adjustment of theses maximum amounts in the annual Budget Act.
BACKGROUND
Existing law:
- Authorizes the Cal Grant C program, administered by California Student Aide Commission (CSAC) to assist with tuition and training costs at occupational or vocational programs of four months to two years in length. Existing law establishes the total number of Cal Grant C awards as the number awarded in the 2000-01 fiscal year (7,761) with the maximum award amount and the total amount of funding being determined in the annual Budget Act ($2,462 for tuition and $547 for non-tuition access costs), (Education Code § 69439)
- Requires CSAC to use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. The CSAC is directed to give additional consideration to disadvantaged, low income, and long-term unemployed applicants. ( EC § 69439 (c))
- Requires CSAC to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards. These areas of occupational and technical training are required to be regularly received and updated at least every five years, beginning in 2012. (EC § 69439 (f) (1) and (2).
- Requires CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth. CSAC is required to determine areas of occupational or technical training that meet these criteria in consultation with the Employment Development Department using projections available through the Market Information Data Library. (EC § 69439 (f) (3))
- Requires the Legislative Analyst’s Office to submit a report to the Legislature on the outcomes of the Cal Grant C program on or before April 1, 2018, and transfers reporting responsibilities to California Student Aide Commission (CSAC) thereafter, as specified. (EC § 69439 (j)(2)and(3))
- Establishes the California Community Colleges Economic and Workforce Development (EWD) Program to be implemented and administered by the Chancellor’s Office of the CCC in those fiscal years for which funds are appropriated for this purpose.
- Requires the Chancellor to implement performance accountability outcome measures to annually provide the Governor, Legislature, and the public with information that quantifies employer and student outcomes for program participants. (EC § 88600, § 88650)
ANALYSIS
This bill:
- Modifies eligibility requirements for Cal Grant C participating occupational or technical training programs by requiring that a Cal Grant C award be utilized only for occupational or technical training courses that meet federal gainful employment standards.
- Establishes the maximum annual amount of the Cal Grant C award. Specifically, it:
- Statutorily establishes the maximum annual amount of the Cal Grant C for
tuition and fees as $2,462.
- Statutorily establishes the maximum annual amount of the Cal Grant C
award for access costs as $ 547.
- Establishes, for Community College students, an additional award for
access costs not to exceed an annual amount of $2,453. (These
students do not receive the aforementioned tuition and fee award.)
- Authorizes adjustment of theses maximum amounts in the annual Budget Act.
- Deletes provisions specifying the duties of the CSAC in determining areas or occupational or technical training that meets the criteria of the Cal Grant C award program.
- Requires the Office of the Chancellor of the California Community Colleges (CCCCO) to annually provide the CSAC with eligible occupational and technical training programs.
- Recasts provisions that require CSAC to give priority in granting Cal Grant C awards to students pursuing occupational or technical training in areas that meet at least two of the following criteria: high employment need, high employment salary or wage projections, and high employment growth.
- Requires California Student Aid Commission (CSAC) to do all of the following:
- Using information provided by the Office of the Chancellor
of the California Community Colleges, ensure that priority is given to students enrolled in a program that meets the following criteria:
- high-employer demand or high-projected employment growth; and
- high-earning outcomes, or is part of a well-articulated career
pathway to a job providing economic security.
- Establish an application deadline of September 2 for students to apply for
the Cal Grant C award effective with the fall term or semester of the 2018–19 academic year.
- Publish, and maintain on its Internet Web site, a current list of the eligible
and prioritized occupational and technical training programs that are in demand in each economic and workforce development region, as determined according to the information provided to the CSAC as specified.
- Deletes provisions that give priority in grant Cal Grant C awards to applicants seeking to enroll in programs that rate high in graduation rates.
- Requires private or independent postsecondary educational institutions that meet the definition of a “qualifying institution” as defined, to provide, at a minimum, occupational or technical training programs that meet specified conditions in order for their Cal Grant C eligible students to receive a Cal Grant C award.
- Requires a postsecondary educational institution participating in the Cal Grant C program to provide CSAC with information pertaining to a student’s enrollment in an eligible or prioritized program in a timely manner, in order to facilitate the processing of awards.
- Modifies the reporting requirement CSAC is statutorily required to submit to the Legislature on the outcomes of the Cal Grant C program.
- Makes the bill an urgency measure in order to authorize the award amounts to be adjusted in time for the commencement of the 2017-18 award year.
- Makes other technical and conforming changes.
STAFF COMMENTS
- Need for the bill. According to the author, the take rate for the Cal Grant C program is very low and as a consequence, money which the state has budgeted for this purpose remains unused. Additionally, the author asserts that Cal Grant C awards have significantly less value for California Community College (CCC) students who also qualify a Board of Governor’s fee waiver. These students are only eligible for an award designated for non-tuition costs ($547) and not the amount allotted for fees and tuition ($2,462). As such, community college students receive less Cal Grant C assistance than their peers who enroll in programs offered by private colleges.
This bill seeks to increase the value of Cal Grant C for California Community College (CCC) students who pursue occupational and technical training by making $2,453 available for non-tuition costs. This bill also aims to improve Cal Grant C participation rates by streamlining the application process for these students.
- Cal Grant C background. Students meeting the general eligibility for the Cal Grant award may be considered for the Cal Grant C. There is no high school graduation requirement, minimum grade point average or maximum age for recipients. However, students must be California residents, have United States or eligible noncitizen status, complete US selective service requirements, enroll at least half-time at an eligible California institution, maintain satisfactory academic progress (defined by the institution) once enrolled, meet family income and asset ceilings, and not be in default on any student loan or owe any federal or state grant refund.
In 2015-16, the maximum annual award was $547 for training related non-tuition costs and up to $2,462 more for tuition and fees for attendance at an institution other than a CCC. Funding is available for up to two years, depending on the length of the program. To qualify, a student must enroll in an occupational, technical, or vocational program that is at least four months long at a CCC, an independent college, or a vocational/career school.
According to the 2013-14 report on Cal Grant awardees prepared by the California Student Aid Commission (CSAC), almost 82 percent of Cal Grant C awardees are independent students. About 68 percent earned less than $18,000 annually, and more than 85 percent earned less than $30,000 annually. Almost half are over age 30.
- Who receives a Cal Grant C? According to a recent Legislative Analyst’s Office report, the CCC system is the primary destination of Cal Grant C recipients, typically serving between 60 percent and 70 percent of all grantees. The report also confirms that because of the Board of Governor’s fee waiver program, students attending community colleges are only eligible to receive the smaller grant ($547) for access costs (i.e. books and supplies). Although the vast majority of students who receive the Cal Grant C are enrolled in community college programs, in 2014-15 almost 40 percent of the total funds awarded are paid to students enrolled in vocational for-profit programs.
- Impact of Cal Grant C award changes? As noted, the typical Cal Grant C award for CCC students is $547 for costs other than tuition and fees. Although SB 1028 (Jackson, Chapter 692, Statutes of 2014) expanded the allowable use of the Cal Grant C to include living expenses, the CCC reports that the Department of Finance and the CSAC do not believe that the language expands the allowable grant amount to community college students. According to the California Student Aid Commission (CSAC), “non-tuition” costs exceed $18,000 annually for California Community College (CCC) students living independently. By maximizing the Cal Grant C aid available, this bill would provide much needed additional aid to help more community college students complete their Career Technical Education programs.
- Low participation rates. Qualifying applicants who complete and returned a Cal Grant C Supplement form compete for 7,761 Cal Grant C awards. According to CSAC, in 2015-16 Cal Grant C supplements were sent to approximately 60,000 students potentially eligible for Cal Grant C awards. However, CSAC received only a 15 percent response rate with only 9,007 Cal Grant C supplements returned. Additionally, in 2015-16, 8,515 awards were offered, of which 4,427 (57 percent) were ultimately paid. As such, nearly half 43 percent of the Cal Grants C awarded were left on the table.
Concerns have been raised that the resulting low participation rates can be attributed to low award amounts, fewer college choices as a result of school closures or the supplemental application which can prolong the award process. SB 1028 (Jackson, Chapter 627, Statutes of 2014) authorized the CSAC to prioritize applicant’s pursuing training in occupations that meet strategic workforce needs, those from economically disadvantage backgrounds and long-term unemployed. In order to determine an applicant’s eligibility for a Cal Grant C, additional information must be provided on the Cal Grant C Supplement form.
This bill seeks to eliminate the need for a supplemental form by requiring postsecondary institutions to report information pertaining to a student’s enrollment in an eligible or prioritized program directly to CSAC.
- Data exchange. This bill would simplify the administrative process by requiring data to be exchanged between CSAC and the California Community College Chancellor’s Office (CCCCO). The current process requires CSAC to consult with appropriate state and federal agencies to develop areas of occupational and technical training for which students may utilize Cal Grant C awards. These agencies include the Employment Development Department, CCCCO, and the California Workforce Investment Board. This bill would instead require the CCCCO to annually provide CSAC with a list of eligible programs. According to the CCCCO, it collects criteria pertaining to regional workforce needs and high growth sectors under its Economic and Workforce Development division. Enactment of these provisions reduces duplicative data collection by two state entities associated with workforce development programs and eases the overall administrative burden for CSAC that may have otherwise prolonged processing of awards.
- Gainful employment regulation background. To qualify for federal student aid, federal law requires that most for-profit programs and certificate programs at private non-profit and public institutions prepare students for "gainful employment in a recognized occupation." The regulations distinguish programs that provide affordable training that lead to well-paying jobs from programs that leave students with poor earnings prospects and high amounts of debt. The regulations support greater accountability for colleges by requiring institutions to provide key information on program costs, whether students graduate, how much they earn, and how much debt they may accumulate. These required standard disclosures are intended to empower students to compare across career college programs when searching for and selecting a program.
This bill would require all Cal Grant C participating occupational or technical training programs to meet these federal gainful employment standards. According to the Community College Chancellor’s Office each occupational and vocational program offered by its colleges meet these standards. Presumably, other institutions that qualify for federal aid programs are also in compliance and are less likely to be impacted by the change. It’s unclear whether any institution would be disqualified as a result of the proposed requirement.
- Amendments. Consistent with the author’s request, staff recommends the bill be amended to clarify that the criteria for identifying which occupational and technical training programs should be prioritized based on information for each economic and workforce development region provided by the California Community College Chancellor’s Office.
Additionally, for consistency purposes staff recommends the following technical amendment:
- 69439. (C) An additional
accessaward for access not to exceed an annual amount of two thousand four hundred fifty-three dollars ($2,453) shall be provided to community college students.
SUPPORT
California Community College Association for Occupational Education
California Edge Coalition
California Hospital Association
Community College League of California
Faculty Association of California Community Colleges
Young Invincibles
OPPOSITION
None received.
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Discussed in Hearing
Assembly Standing Committee on Higher Education
Senate Floor
Senate Standing Committee on Appropriations
Senate Standing Committee on Education
Bill Author
Bill Co-Author(s):