Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Expanded Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for these awards for participating students attending qualifying institutions. Existing law requires a Cal Grant C award to be used only for occupational or technical training in a course of not less than 4 months. Existing law requires the commission to consult with appropriate state and federal agencies to identify areas of occupational and technical training for which students may use Cal Grant C awards and to regularly review and update those areas at least every 5 years, as provided.

Existing law requires the Department of Motor Vehicles, no later than June 5, 2020, to adopt regulations related to entry-level driver training requirements for drivers of commercial motor vehicles, including specified minimum hours of behind-the-wheel training and in compliance with the requirements of certain federal regulations.

This bill would additionally authorize a Cal Grant C award to be used for entry-level driver training programs of less than 4 months that comply with those driver training regulations and are offered at qualifying institutions. The bill would require the Student Aid Commission to classify an institution as a qualifying institution if its driver training program has a graduation rate of at least 30%, is listed on the Federal Motor Carrier Safety Administration training provider registry, and has been approved by the Bureau for Private Postsecondary Education. The bill would repeal these provisions on January 1, 2028.

The Cal Grant Reform Act revises and recasts the provisions establishing and governing the existing Cal Grant Program into a new Cal Grant Program. Existing law specifies that the act becomes operative only if General Fund moneys over the multiyear forecasts beginning in the 202425 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the act. Under existing law, if the act becomes operative, an otherwise eligible student enrolled in a qualifying occupational and technical training program who would have been eligible for aid under the Cal Grant C Program would be eligible to receive a prorated Cal Grant award as specified in the Budget Act.

If the Cal Grant Reform Act becomes operative, this bill would additionally authorize, until January 1, 2028, an otherwise eligible student enrolled in an entry-level driver training program of less than 4 months that complies with those driver training regulations and is offered at a qualifying institution to receive a prorated Cal Grant award as specified in the Budget Act.

This bill would require the Student Aid Commission, in consultation with the Bureau for Private Postsecondary Education, to submit a report to the Legislature, on or before April 1, 2027, on the above-described authorizations to use a Cal Grant award for an entry-level driver training program, as provided.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Expanded Entitlement Awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for these awards for participating students attending qualifying institutions. Existing law requires a Cal Grant C award to be used only for occupational or technical training in a course of not less than 4 months. Existing law requires the commission to consult with appropriate state and federal agencies to identify areas of occupational and technical training for which students may use Cal Grant C awards and to regularly review and update those areas at least every 5 years, as provided.

Existing law requires the Department of Motor Vehicles, no later than June 5, 2020, to adopt regulations related to entry-level driver training requirements for drivers of commercial motor vehicles, including specified minimum hours of behind-the-wheel training and in compliance with the requirements of certain federal regulations.

This bill would additionally authorize a Cal Grant C award to be used for entry-level driver training programs of less than 4 months that comply with those driver training regulations and are offered at qualifying institutions. The bill would require the Student Aid Commission to classify an institution as a qualifying institution if its driver training program has a graduation rate of at least 30%, is listed on the Federal Motor Carrier Safety Administration training provider registry, and has been approved by the Bureau for Private Postsecondary Education. The bill would repeal these provisions on January 1, 2028.

The Cal Grant Reform Act revises and recasts the provisions establishing and governing the existing Cal Grant Program into a new Cal Grant Program. Existing law specifies that the act becomes operative only if General Fund moneys over the multiyear forecasts beginning in the 202425 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the act. Under existing law, if the act becomes operative, an otherwise eligible student enrolled in a qualifying occupational and technical training program who would have been eligible for aid under the Cal Grant C Program would be eligible to receive a prorated Cal Grant award as specified in the Budget Act.

If the Cal Grant Reform Act becomes operative, this bill would additionally authorize, until January 1, 2028, an otherwise eligible student enrolled in an entry-level driver training program of less than 4 months that complies with those driver training regulations and is offered at a qualifying institution to receive a prorated Cal Grant award as specified in the Budget Act.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Expanded Entitlement Awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for these awards for participating students attending qualifying institutions. Existing law requires a Cal Grant C award to be used only for occupational or technical training in a course of not less than 4 months. Existing law requires the commission to consult with appropriate state and federal agencies to identify areas of occupational and technical training for which students may use Cal Grant C awards and to regularly review and update those areas at least every 5 years, as provided.

Existing law requires the Department of Motor Vehicles, no later than June 5, 2020, to adopt regulations related to entry-level driver training requirements for drivers of commercial motor vehicles, including specified minimum hours of behind-the-wheel training and in compliance with the requirements of certain federal regulations.

This bill would additionally authorize a Cal Grant C award to be used for entry-level driver training programs of less than 4 months that comply with those driver training regulations and are offered at qualifying institutions. The bill would require the Student Aid Commission to classify an institution as a qualifying institution if its driver training program has a graduation rate of at least 30% 30%, is listed on the Federal Motor Carrier Safety Administration training provider registry, and has been approved by the Bureau for Private Postsecondary Education. The bill would repeal these provisions on January 1, 2028.

The Cal Grant Reform Act revises and recasts the provisions establishing and governing the existing Cal Grant Program into a new Cal Grant Program. Existing law specifies that the act becomes operative only if General Fund moneys over the multiyear forecasts beginning in the 202425 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the act. Under existing law, if the act becomes operative, an otherwise eligible student enrolled in a qualifying occupational and technical training program who would have been eligible for aid under the Cal Grant C Program would be eligible to receive a prorated Cal Grant award as specified in the Budget Act.

If the Cal Grant Reform Act becomes operative, this bill would additionally authorize, until January 1, 2028, an otherwise eligible student enrolled in an entry-level driver training program of less than 4 months that complies with those driver training regulations and is offered at a qualifying institution to receive a prorated Cal Grant award as specified in the Budget Act.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, establishes the Cal Grant A and B Entitlement awards, the California Community College Expanded Entitlement Awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for these awards for participating students attending qualifying institutions. Existing law requires a Cal Grant C award to be used only for occupational or technical training in a course of not less than 4 months. Existing law requires the commission to consult with appropriate state and federal agencies to identify areas of occupational and technical training for which students may use Cal Grant C awards and to regularly review and update those areas at least every 5 years, as provided.

Existing law requires the Department of Motor Vehicles, no later than June 5, 2020, to adopt regulations related to entry-level driver training requirements for drivers of commercial motor vehicles, including specified minimum hours of behind-the-wheel training and in compliance with the requirements of certain federal regulations.

This bill would additionally authorize a Cal Grant C award to be used for entry-level driver training programs of less than 4 months that comply with those driver training regulations and are offered at qualifying institutions. The bill would require the Student Aid Commission to classify an institution as a qualifying institution if its driver training program has a graduation rate of at least 30% and has been approved by the Bureau for Private Postsecondary Education. The bill would repeal these provisions on January 1, 2028.

The Cal Grant Reform Act revises and recasts the provisions establishing and governing the existing Cal Grant Program into a new Cal Grant Program. Existing law specifies that the act becomes operative only if General Fund moneys over the multiyear forecasts beginning in the 202425 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the act. Under existing law, if the act becomes operative, an otherwise eligible student enrolled in a qualifying occupational and technical training program who would have been eligible for aid under the Cal Grant C Program would be eligible to receive a prorated Cal Grant award as specified in the Budget Act.

If the Cal Grant Reform Act becomes operative, this bill would additionally authorize, until January 1, 2028, an otherwise eligible student enrolled in an entry-level driver training program of less than 4 months that complies with those driver training regulations and is offered at a qualifying institution to receive a prorated Cal Grant award as specified in the Budget Act.

GOVERNOR'S VETO

GV Bill Id:AB 376

Author:(Villapudua)

As Enrolled Ver:September 14, 2023

2/3 vote

SUMMARY

Establishes a pilot program available until January 1, 2028 for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements.

Senate Amendments

Adds a requirement for the California Student Aid Commission in consultation with the Bureau for Private Postsecondary Education to provide a report, with specified information, to the legislature by April 1, 2027 on the pilot program as established by the bill and makes technical and conforming changes.

Governor's Veto Message

This bill would establish a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements. This bill also requires the California Student Aid Commission, in consultation with the Bureau for Private Postsecondary Education, to submit a report to the Legislature, by April l, 2027, about the pilot program.

I thank the author for his commitment to address the driver shortage in the trucking industry. However, this bill results in significant General Fund cost pressures and staff workload that are not currently part of the state's fiscal plan and are more appropriately addressed in the annual budget process.

In partnership with the Legislature, we enacted a budget that closed a shortfall of more than $30 billion through balanced solutions that avoided deep program cuts and protected education, health care, climate, public safety, and social service programs that are relied on by millions of Californians. This year, however, the Legislature sent me bills outside of this budget process that, if all enacted, would add nearly $19 billion of unaccounted costs in the budget, of which $11 billion would be ongoing.

With our state facing continuing economic risk and revenue uncertainty, it is important to remain disciplined when considering bills with significant fiscal implications, such as this measure.

COMMENTS

Cal Grant C and Cal Grant reform. In 2000, the State of California established the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program in an effort to remove any financial barrier in accessing higher education for all students. The California Student Aid Commission (CSAC) oversees state-funded financial aid programs in California and therefore, oversees the Cal Grant Program. Cal Grant A and Cal Grant B provide tuition waivers for students attending community colleges and/or four-year universities in pursuit of associate or bachelor's degrees. Cal Grant C was created to assist vocational students with tuition and training costs. Cal Grant C provides up to $1,094 in tuition for a student at a community college, or $2,462 in tuition for students at a for-profit or non-profit institution. Additionally, Cal Grant C provides students with $547 for books, tools, and equipment at an eligible higher education institution. At its establishment, Cal Grant C offered 7,761 awards to qualifying students. To qualify for Cal Grant C a student must:

1. Meet the income qualifications which are the same income qualification for Cal Grant A [for a family of four: $125,000 per year and for a family of three: $115,000 a year]; and
2. Enroll in an Occupational or Technical Training program of at least four months in length but not more than 24 months in length at an eligible postsecondary institution.

For a higher education institution to be eligible for Cal Grant, the institution must be an accredited institution to operate in the State of California, keep its federal student loan cohort default rate below 15.5% and keep its graduation rate above 30%.

In the last decade, efforts have been made to reform Cal Grant to expand and refine the financial aid program to provide maximum benefits to students. SB 1028 (Jackson), Chapter 692, Statute of 2014, refined the Cal Grant C program to give priority to students who meet certain criteria, including length of time a student had been unemployed, and priority to certain occupational programs with high employment needs as determined by CSAC in collaboration with workforce development agencies. After four years of discussions and a culmination of efforts by various Assemblymembers and Senators, AB 183 (Committee on Budget), Chapter 54, Statute of 2022, established the Cal Grant Reform Act to streamline the Cal Grant system to maximize fiscal allocations to students to provide for tuition and non-tuition costs associated with attending a postsecondary education institution. The reform efforts removed the maze of Cal Grant options, which often confused students and parents as to which award they qualified for, and instead provided a simplistic two-tier award system. Cal Grant 2 will be for students who are attending a community college or a short-term vocational program. Cal Grant 4 will be for students attending a four-year university. Cal Grant C will be absorbed by Cal Grant 2 and the requirements for qualifying for a Cal Grant C will remain but students will receive a pro-rated award.

In 2019, the Legislative Analyst Office (LAO) published a report evaluating the Cal Grant C Program. The report found that in 2018-2019, all eligible applicants are approved for Cal Grant C awards and about 1/3 of applicants intend to pursue priority occupations as listed by CSAC. LAO found that about half of CCC students who receive the Cal Grant C award graduate from their intended program. The LAO determined that since 2010, some Cal Grant C awards go unused.

In their annual report on Cal Grant awards CSAC reported in 2022-2023, the number of new Cal Grant C awards was 1,109 and renewed Cal Grant C awards was 2,157. Of those provided, 1,842 were awarded to community college students, 92 to students attending independent institutions (non-profits), and 1,324 were attending for-profit institutions. The new award number is significantly less than the 7,761 Cal Grant C granted by the Legislature each year.

The original intention of Cal Grant C was to provide financial aid to students who required financial assistance to complete their educational program but did not wish to pursue traditional degree programs. Specifically, Cal Grant C is for students pursuing a vocational or career technical certificate in a program that lasts between four and 24 months. Since Cal Grant C is under awarding and has funds available each year, expanding the program to include entry-level truck driving would be a logical step in establishing a vocational pipeline for qualified commercial truck drivers. The measure seeks to capitalize on the available funds by temporarily expanding Cal Grant C eligibility to entry-level truck driving programs in order to further reform efforts to provide additional financial aid to students.

Entry-level commercial driver training. Requirements for becoming a commercial truck driver (CDL) are established by both the State and the Federal Government. Those seeking to obtain a CDL in California, after February 2022, are required to complete a federally approved entry-level training program and a minimum of 15 hours of behind-the-wheel training. The entry-level driver training must be completed by a registered training provider as listed on the federal Training Provider Registry.

In California, there are 12 community colleges that offer entry-level driver training programs as listed on the federal training provider registry, the other 4,807 in-person programs are offered by either for-profits or non-profits in the state.

Commercial truck workforce. In October 2021, the American Trucking Associations Chief Economist, Bob Costello issued a statement noting that the national shortage of commercial drivers had risen to 80,000, and the shortage could surpass 160,000 by 2030. Mr. Castello also noted in his statement that, "before the pandemic, we were adding drivers to the industry even though we had a shortage, more people were entering the industry but the issue is that new entrants into the industry didn't keep up with the demand for goods." The demand outweighing the supply for commercial drivers was one of the contributing factors to the supply chain breakdown during the COVID-19 lockdowns. As the country and state move towards recovering from the pandemic, increasing the number of trained commercial drivers is key to ensuring the timely supply of necessary goods to produce and maintain a bustling economy. In California, according to the Employment Development Department, by 2028 there will be 388,620 positions available for truck drivers. California has sought to provide workforce pipelines for occupations that would offer high wages to students and by expanding Cal Grant C to include entry-level truck drivers, this measure would accomplish a workforce pipeline for truck drivers by providing financial aid for entry-level vocational training

The cost associated with obtaining a commercial driver's license on average is $3,000. Federal financial aid is not available for vocational programs, which last less than 10 weeks; therefore, trucking programs, that last roughly four weeks, are not eligible for federal financial aid or federal student loans. Additionally, under current law, programs lasting less than 4 months are not eligible for state financial aid programs. Since federal and state financial aid and federal loans are not available to students wishing to complete entry-level commercial driver training programs, students must take out personal loans or use personal credit cards which have costly interest rates for students. This measure seeks to rectify this by providing Cal Grant C to potential truck drivers to avoid the costly debt associated with the training requirements.

According to the Author

The author contends, "according to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022, and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 (Villapudua) seeks to address the truck driver shortage that is impacting the nation’s supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program."

Arguments in Support

As expressed by the California Trucking Association, a sponsor of AB 376 (Villapudua), "our coalition applauds Assemblymember Villapudua for his proactive response to address the driver shortage that has plagued the State's supply chain for decades. AB 376 seeks to address the truck driver shortage impacting the movement of goods within California and throughout the country by extending financial aid in the form of Cal Grant C to eligible low- and middle-income students enrolled in an entry-level driver training program. AB 376 extends Cal Grant C eligibility to include and prioritize students pursuing an entry-level driver training program of less than four months at a qualifying post-secondary institution."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee, the California Student Aid Commission estimates ongoing General Fund costs of between $192,000 and $526,000 each year to provide Cal Grant C awards to students for the life of the pilot. This estimate assumes that 1,400 students would receive the grant each year which is based on the number of commercial licenses issued by the Department of Motor Vehicles in 2022. This estimate also assumes a prorated Cal Grant C award for a one-month course of $376 for a private institution and a prorated amount of $137 for a one-month course at a community college. A precise amount would depend on the actual number of students receiving the grants at those specific award levels.

The Commission also estimates ongoing General Fund costs of about $556,000 each year for the duration of the pilot for 5.0 staff to implement the program. There would be additional, unknown IT related costs for business requirements to change the awarding process.

VOTES

ASM HIGHER EDUCATION: 12-0-0

YES: Mike Fong, Ta, Addis, Arambula, Gabriel, Irwin, Low, Ortega, Sanchez, Santiago, Wallis, Weber

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

ASSEMBLY FLOOR: 80-0-0

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero

ASSEMBLY FLOOR: 80-0-0

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

UPDATED

VERSION: September 14, 2023

CONSULTANT: Ellen Cesaretti-Monroy / HIGHER ED. / (916) 319-3960 FN: 0002482

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 376

Author:(Villapudua)

As Amended Ver:July 14, 2023

Majority vote

SUMMARY

Establishes a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements.

Senate Amendments

Adds a requirement for the California Student Aid Commission in consultation with the Bureau for Private Postsecondary Education to provide a report, with specified information, to the legislature by April 1, 2027 on the pilot program as established by the bill and makes technical and conforming changes.

COMMENTS

Cal Grant C and Cal Grant reform. In 2000, the State of California established the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program in an effort to remove any financial barrier in accessing higher education for all students. The California Student Aid Commission (CSAC) oversees state-funded financial aid programs in California and therefore, oversees the Cal Grant Program. Cal Grant A and Cal Grant B provide tuition waivers for students attending community colleges and/or four-year universities in pursuit of associate or bachelors degrees. Cal Grant C was created to assist vocational students with tuition and training costs. Cal Grant C provides up to $1,094 in tuition for a student at a community college, or $2,462 in tuition for students at a for-profit or non-profit institution. Additionally, Cal Grant C provides students with $547 for books, tools, and equipment at an eligible higher education institution. At its establishment, Cal Grant C offered 7,761 awards to qualifying students. To qualify for Cal Grant C a student must:

1. Meet the income qualifications which are the same income qualification for Cal Grant A [for a family of four: $125,000 per year and for a family of three: $115,000 a year]; and
2. Enroll in an Occupational or Technical Training program of at least four months in length but not more than 24 months in length at an eligible postsecondary institution.

For a higher education institution to be eligible for Cal Grant, the institution must be an accredited institution to operate in the State of California, keep its federal student loan cohort default rate below 15.5% and keep its graduation rate above 30%.

In the last decade, efforts have been made to reform Cal Grant to expand and refine the financial aid program to provide maximum benefits to students. SB 1028 (Jackson), Chapter 692, Statute of 2014, refined the Cal Grant C program to give priority to students who meet certain criteria, including length of time a student had been unemployed, and priority to certain occupational programs with high employment needs as determined by CSAC in collaboration with workforce development agencies. After four years of discussions and a culmination of efforts by various Assemblymembers and Senators, AB 183 (Committee on Budget), Chapter 54, Statute of 2022, established the Cal Grant Reform Act to streamline the Cal Grant system to maximize fiscal allocations to students to provide for tuition and non-tuition costs associated with attending a postsecondary education institution. The reform efforts removed the maze of Cal Grant options, which often confused students and parents as to which award they qualified for, and instead provided a simplistic two-tier award system. Cal Grant 2 will be for students who are attending a community college or a short-term vocational program. Cal Grant 4 will be for students attending a four-year university. Cal Grant C will be absorbed by Cal Grant 2 and the requirements for qualifying for a Cal Grant C will remain but students will receive a pro-rated award.

In 2019, the Legislative Analyst Office (LAO) published a report evaluating the Cal Grant C Program. The report found that in 2018-2019, all eligible applicants are approved for Cal Grant C awards and about 1/3 of applicants intend to pursue priority occupations as listed by CSAC. LAO found that about half of CCC students who receive the Cal Grant C award graduate from their intended program. The LAO determined that since 2010, some Cal Grant C awards go unused.

In their annual report on Cal Grant awards CSAC reported in 2022-2023, the number of new Cal Grant C awards was 1,109 and renewed Cal Grant C awards was 2,157. Of those provided, 1,842 were awarded to community college students, 92 to students attending independent institutions (non-profits), and 1,324 were attending for-profit institutions. The new award number is significantly less than the 7,761 Cal Grant C granted by the Legislature each year.

The original intention of Cal Grant C was to provide financial aid to students who required financial assistance to complete their educational program but did not wish to pursue traditional degree programs. Specifically, Cal Grant C is for students pursuing a vocational or career technical certificate in a program that lasts between four and 24 months. Since Cal Grant C is under awarding and has funds available each year, expanding the program to include entry-level truck driving would be a logical step in establishing a vocational pipeline for qualified commercial truck drivers. The measure seeks to capitalize on the available funds by temporarily expanding Cal Grant C eligibility to entry-level truck driving programs in order to further reform efforts to provide additional financial aid to students.

Entry-level commercial driver training. Requirements for becoming a commercial truck driver (CDL) are established by both the State and the Federal Government. Those seeking to obtain a CDL in California, after February 2022, are required to complete a federally approved entry-level training program and a minimum of 15 hours of behind-the-wheel training. The entry-level driver training must be completed by a registered training provider as listed on the federal Training Provider Registry.

In California, there are 12 community colleges that offer entry-level driver training programs as listed on the federal training provider registry, the other 4,807 in-person programs are offered by either for-profits or non-profits in the state.

Commercial truck workforce. In October 2021, the American Trucking Associations Chief Economist, Bob Costello issued a statement noting that the national shortage of commercial drivers had risen to 80,000, and the shortage could surpass 160,000 by 2030. Mr. Castello also noted in his statement that, "before the pandemic, we were adding drivers to the industry even though we had a shortage, more people were entering the industry but the issue is that new entrants into the industry didn't keep up with the demand for goods." The demand outweighing the supply for commercial drivers was one of the contributing factors to the supply chain breakdown during the COVID-19 lockdowns. As the country and state move towards recovering from the pandemic, increasing the number of trained commercial drivers is key to ensuring the timely supply of necessary goods to produce and maintain a bustling economy. In California, according to the Employment Development Department, by 2028 there will be 388,620 positions available for truck drivers. California has sought to provide workforce pipelines for occupations that would offer high wages to students and by expanding Cal Grant C to include entry-level truck drivers, this measure would accomplish a workforce pipeline for truck drivers by providing financial aid for entry-level vocational training

The cost associated with obtaining a commercial driver's license on average is $3,000. Federal financial aid is not available for vocational programs, which last less than 10 weeks; therefore, trucking programs, that last roughly four weeks, are not eligible for federal financial aid or federal student loans. Additionally, under current law, programs lasting less than 4 months are not eligible for state financial aid programs. Since federal and state financial aid and federal loans are not available to students wishing to complete entry-level commercial driver training programs, students must take out personal loans or use personal credit cards which have costly interest rates for students. This measure seeks to rectify this by providing Cal Grant C to potential truck drivers to avoid the costly debt associated with the training requirements.

According to the Author

The author contends, "according to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022, and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 (Villapudua) seeks to address the truck driver shortage that is impacting the nation's supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program."

Arguments in Support

As expressed by the California Trucking Association, a sponsor of AB 376 (Villapudua), "our coalition applauds Assemblymember Villapudua for his proactive response to address the driver shortage that has plagued the State's supply chain for decades. AB 376 seeks to address the truck driver shortage impacting the movement of goods within California and throughout the country by extending financial aid in the form of Cal Grant C to eligible low- and middle-income students enrolled in an entry-level driver training program. AB 376 extends Cal Grant C eligibility to include and prioritize students pursuing an entry-level driver training program of less than four months at a qualifying post-secondary institution."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee:

The California Student Aid Commission estimates ongoing General Fund costs of between $192,000 and $526,000 each year to provide Cal Grant C awards to students for the life of the pilot. This estimate assumes that 1,400 students would receive the grant each year which is based on the number of commercial licenses issued by the Department of Motor Vehicles in 2022. This estimate also assumes a prorated Cal Grant C award for a one-month course of $376 for a private institution and a prorated amount of $137 for a one-month course at a community college. A precise amount would depend on the actual number of students receiving the grants at those specific award levels.

The Commission also estimates ongoing General Fund costs of about $556,000 each year for the duration of the pilot for 5.0 staff to implement the program. There would be additional, unknown IT related costs for business requirements to change the awarding process.

VOTES:

ASM HIGHER EDUCATION: 12-0-0

YES: Mike Fong, Ta, Addis, Arambula, Gabriel, Irwin, Low, Ortega, Sanchez, Santiago, Wallis, Weber

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

ASSEMBLY FLOOR: 80-0-0

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones‑Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero

UPDATED

VERSION: July 14, 2023

CONSULTANT: Ellen Cesaretti-Monroy / HIGHER ED. / (916) 319-3960 FN: 0002362

 THIRD READING  

Bill No: AB 376

Author: Villapudua (D)

Amended: 7/14/23 in Senate

Vote: 21

SENATE EDUCATION COMMITTEE: 6-0, 7/12/23

AYES: Newman, Ochoa Bogh, Cortese, Glazer, McGuire, Wilk

NO VOTE RECORDED: Smallwood-Cuevas

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 80-0, 5/31/23 - See last page for vote

SUBJECT: Student financial aid: Cal Grant C: driver training programs: commercial motor vehicles

SOURCE: California Trucking Association

DIGEST:

This bill establishes a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements. This bill further requires the Student Aid Commission (Commission), in consultation with the Bureau for Private Postsecondary Education (BPPE), to submit a report to the Legislature, by April 1, 2027, on the above-described authorization to use a Cal Grant award for an entry-level driver training program.

ANALYSIS:

Existing law:

1. Establishes the training requirements for entry-level drivers including minimum content for theory and behind-the-wheel training curricula. Defines entry-level driver training as training for those who apply for a commercial driver’s license. (Code of Federal Regulations Title 49, Subtitle B, Chapter III, Subpart B, Part 380, Subpart F)
2. Establishes the Federal Motor Carrier Safety Administration training provider registry. Requires institutions, who operate entry-level training programs for a commercial driver’s license, to comply with the requirements for the registry and to register to be listed within the Trainer Provider Registry. (Code of Federal Regulations Title 49, Subtitle B, Chapter III, Subpart B, Part 380, Subpart G)
3. Authorizes the Cal Grant C program, administered by the Commission 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) § 69439)
4. Requires that the Commission use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. Directs the Commission to give additional consideration to disadvantaged, low income, and long-term unemployed applicants. ( EC § 69439 (c))
5. Requires the Commission 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. Requires these areas of occupational and technical training to be regularly received and updated at least every five years. (EC § 69439 (f) (1) and (2)
6. Requires the Commission 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 the Commission 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))
7. Requires the Department of Motor Vehicles by June 5, 2020, to adopt regulations for entry-level driver training requirements for drivers of commercial motor vehicles that are in compliance with federal regulations for commercial motor vehicles. Requires the Department of Motor Vehicles to require the course of instruction for entry-level drivers, who seek a Class A or Class B commercial driver’s license to complete a minimum of 15 hours of behind-the-wheel training, with at least 10 of those 15 hours being on a public road. (Vehicle Code § 15250.1)

This bill establishes a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements. Specifically, it:

1. Expands eligibility for a Cal Grant C to a student enrolled in an entry-level driver training program of less than four months offered at a qualifying institution.
2. Clarifies, if funds are allocated and the Cal Grant Reform Act is enacted, students who otherwise would have qualified for Cal C after January 1, 2024, will receive a prorated Cal Grant award.
3. Requires the Commission to classify a qualifying institution as one with a graduate rate of at least 30% that is listed on the Federal Motor Carrier Safety Administration training provider registry, and that is approved by the BPPE.
4. Requires the Commission, in consultation with the California Bureau for Private Postsecondary Institutions, to submit a report to the Legislature on April 1, 2027. The report shall include, but not necessarily be limited to, all of the following information:
   1. The total number of award payments made under the pilot program for each award year throughout the duration of the pilot program.
   2. The total amount of funds expended for the purposes of award payments made under the pilot program for each award year throughout the duration of the pilot program.
   3. A list of qualifying institutions that participate in the pilot program.
   4. Graduation data for students, including aggregate information on Cal Grant C recipients for each qualifying institution that participates in the pilot program, to the extent practicable.
   5. Job placement and licensure rates of graduates employed in the field for each qualifying institution participating in the pilot program, to the extent practicable.
   6. Recommendations for improving the pilot program, including, but not necessarily limited to, other factors or measures that should be considered for classifying an institution as a qualifying institution under the pilot program and whether the Cal Grant program is the appropriate place for administering a program intended to cover training costs of shorter (less than four months) programs for purposes of meeting a strategic workforce need.
5. Sunsets the bill’s provisions on January 1, 2028.

Comments

1. Need for the bill. According to the author, “According to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022 and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 seeks to address the truck driver shortage impacting the nation’s supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program.”
2. Cal Grant Program. The Cal Grant program, the state’s largest financial aid program, is intended to help students with financial need cover college costs. The program offers multiple types of Cal Grant awards. Grants can be used at institutions meeting the definition of a qualifying institution. This bill establishes different criteria from all other qualifying institutions. Under the pilot program, a qualifying institution will need to a minimum graduation rate of at least 30%, BPPE approval, and be listed as an approved training facility by the Federal Motor Carrier Safety Administration. Concerns have been raised that removing traditional quality control measures without replacing them with tested or comparable alternatives may make the program more accessible to predatory or low-quality institutions or programs. This bill requires the Commission submit a report on information on the qualifying institutions and recommendations for program improvements prior to the programs expiration date.
3. Cal Grant C. 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.

Cal Grant C awards assist with tuition and training costs for occupational, technical, and vocational programs. Funding is available for up to two years, depending on the length of the program. To qualify, a student must enroll in a program that is at least four months long at a California Community College, an independent college, or a vocational/career school. The number of new annual awards is capped in statue at 7,761.

In order to determine an applicant’s eligibility for a Cal Grant C, additional information must be provided to the Commission. That information is scored based on the applicant’s work experience, educational history, vocational aptitude, and occupational goal. Students who select a priority occupation receive additional points in the scoring criteria.

1. Who receives Cal Grant C? According to the 2022–23 report on Cal Grant recipients prepared by the Commission, Cal Grant C awardees had an average income of $45,682, an average family size of 3.2, and an average age of 28. The program is undersubscribed and of the 7,761 new awards available, only 1,810 received one. The 2022–23 new Cal Grant C awards were available to low- and middle-income applicants receiving occupational or technical training in a course that was at least four months long.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

The California Student Aid Commission estimates ongoing General Fund costs of between $192,000 and $526,000 each year to provide Cal Grant C awards to students for the life of the pilot. This estimate assumes that 1,400 students would receive the grant each year which is based on the number of commercial licenses issued by the Department of Motor Vehicles in 2022. This estimate also assumes a prorated Cal Grant C award for a one-month course of $376 for a private institution and a prorated amount of $137 for a one-month course at a community college. A precise amount would depend on the actual number of students receiving the grants at those specific award levels.

The Commission also estimates ongoing General Fund costs of about $556,000 each year for the duration of the pilot for 5.0 staff to implement the program. There would be additional, unknown IT related costs for business requirements to change the awarding process.

SUPPORT: (Verified 9/1/23)

California Trucking Association (source)

Agricultural Council of California

Agriculture Transportation Coalition

Auto Care Association

BizFed - Los Angeles County

California Automotive Wholesalers' Association

California Beer and Beverage Distributors

California Business Properties Association

California Business Roundtable

California Chamber of Commerce

California Farm Bureau

California Manufacturers & Technology Association

California Retailers Association

Foreign Trade Association

Gemini Shippers Association

Harbor Trucking Association

Los Angeles County Business Federation

Next Generation in Trucking Association

Pet Food Institute

San Gabriel Valley Economic Partnership

Western States Trucking Association

OPPOSITION: (Verified 9/1/23)

None received

ASSEMBLY FLOOR: 80-0, 5/31/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105

9/5/23 9:25:13

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 376 (Villapudua) - Student financial aid: Cal Grant C: driver training programs: commercial motor vehicles

Bill Summary:

This bill expands Cal Grant C eligibility to students participating in entry-level truck driving programs.

Fiscal Impact:

The California Student Aid Commission estimates ongoing General Fund costs of between $192,000 and $526,000 each year to provide Cal Grant C awards to students for the life of the pilot. This estimate assumes that 1,400 students would receive the grant each year which is based on the number of commercial licenses issued by the Department of Motor Vehicles in 2022. This estimate also assumes a prorated Cal Grant C award for a one-month course of $376 for a private institution and a prorated amount of $137 for a one-month course at a community college. A precise amount would depend on the actual number of students receiving the grants at those specific award levels.

The Commission also estimates ongoing General Fund costs of about $556,000 each year for the duration of the pilot for 5.0 staff to implement the program. There would be additional, unknown IT related costs for business requirements to change the awarding process.

Background:

Existing law authorizes the Cal Grant C program, administered by Commission 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).

Existing law requires that the Commission use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. The Commission is directed to give additional consideration to disadvantaged, low income, and long-term unemployed applicants.

Existing law requires the Commission 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. The law also requires the Commission 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. The Commission 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 expands eligibility for a Cal Grant C to a student enrolled in an entry-level driver training program of less than four months offered at a qualifying institution. The bil clarifies, if funds are allocated and the Cal Grant Reform Act is enacted, students who otherwise would have qualified for Cal C after January 1, 2024, will receive a prorated Cal Grant award.

This bill requires the Commission to classify a qualifying institution as one with a graduate rate of at least 30% that is listed on the Federal Motor Carrier Safety Administration training provider registry, and that is approved by the Bureau for Private Postsecondary Education.

This bill requires the Commission, in consultation with the California Bureau for Private Postsecondary Institutions, to submit a report to the Legislature on April 1, 2027. The report shall include, but not necessarily be limited to, all of the following information:

1. The total number of award payments made under the pilot program for each award year throughout the duration of the pilot program.
2. The total amount of funds expended for the purposes of award payments made under the pilot program for each award year throughout the duration of the pilot program.
3. A list of qualifying institutions that participate in the pilot program.
4. Graduation data for students, including aggregate information on Cal Grant C recipients for each qualifying institution that participates in the pilot program, to the extent practicable.
5. Job placement and licensure rates of graduates employed in the field for each qualifying institution participating in the pilot program, to the extent practicable.
6. Recommendations for improving the pilot program, including, but not necessarily limited to, other factors or measures that should be considered for classifying an institution as a qualifying institution under the pilot program and whether the Cal Grant program is the appropriate place for administering a program intended to cover training costs of shorter (less than four months) programs for purposes of meeting a strategic workforce need.

The bill’s provisions would sunsets on January 1, 2028.

Related Legislation:

AB 183 (Committee on Budget, Chapter 54, Statute of 2022) among other things establishes the Cal Grant Reform Act, to eliminate barriers to Cal Grant awards that would allow about 150,000 more California students to become eligible, aligned Cal Grant eligibility with the new federal Student Aid Index. Created the Cal Grant 2 program for community college students, which provides non-tuition support that grows annually with inflation, and the Cal Grant 4 program for students at University of California (UC), California State University (CSU) and other institutions. The act also states legislative intent that UC and CSU use institutional aid to cover non-tuition costs for its students

Staff Comments:

According to the 2022–23 report on Cal Grant recipients prepared by the Commission, Cal Grant C awardees had an average income of $45,682, an average family size of 3.2, and an average age of 28. The program is undersubscribed—of the 7,761 new awards available, only 1,810 received one. The 2022–23 new Cal Grant C awards were available to low- and middle-income applicants receiving occupational or technical training in a course that was at least four months long.

This bill establishes a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Josh Newman, Chair

2023 - 2024 Regular

Bill No: AB 376 Hearing Date: July 12, 2023

Subject: Student financial aid: Cal Grant C: driver training programs: commercial motor vehicles.

SUMMARY

This bill establishes a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements.

BACKGROUND

Existing law:

Federal law

1) Establishes the training requirements for entry-level drivers including minimum content for theory and behind-the-wheel training curricula. Entry-level driver training is defined as training for those who apply for a commercial driver’s license. (Code of Federal Regulations Title 49, Subtitle B, Chapter III, Subpart B, Part 380, Subpart F)

2) Establishes the Federal Motor Carrier Safety Administration training provider registry. Requires institutions, who operate entry-level training programs, for a commercial driver’s license to comply with the requirements for the registry and to register to be listed within the Trainer Provider Registry. (Code of Federal Regulations Title 49, Subtitle B, Chapter III, Subpart B, Part 380, Subpart G)

State Law

1. Authorizes the Cal Grant C program, administered by Commission 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) § 69439)
2. Requires that the Commission use appropriate criteria in selecting award recipients, including family income, household size, household status, and employment status of the applicant. The Commission is directed to give additional consideration to disadvantaged, low income, and long-term unemployed applicants. ( EC § 69439 (c))
3. Requires the Commission 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. (EC § 69439 (f) (1) and (2)
4. Requires the Commission 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. The Commission 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))

5) Requires the Department of Motor Vehicles by June 5, 2020, to adopt regulations for entry-level driver training requirements for drivers of commercial motor vehicles that are in compliance with federal regulations for commercial motor vehicles. Requires the Department of Motor Vehicles to require the course of instruction for entry-level drivers, who seek a Class A or Class B commercial driver’s license to complete a minimum of 15 hours of behind-the-wheel training, with at least 10 of those 15 hours being on a public road. (Vehicle Code § 15250.1)

ANALYSIS

This bill establishes a pilot program available until January 1, 2028, for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements. Specifically, it:

1. Expands eligibility for a Cal Grant C to a student enrolled in an entry-level driver training program of less than four months offered at a qualifying institution.
2. Clarifies, if funds are allocated and the Cal Grant Reform Act is enacted, students who otherwise would have qualified for Cal C after January 1, 2024, will receive a prorated Cal Grant award.
3. Requires the Commission to classify a qualifying institution as one with a graduate rate of at least 30% that is listed on the Federal Motor Carrier Safety Administration training provider registry, and that is approved by the Bureau for Private Postsecondary Education.
4. Sunsets the bill’s provisions on January 1, 2028.

STAFF COMMENTS

1. Need for the bill. According to the author, “According to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022 and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 seeks to address the truck driver shortage impacting the nation’s supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program.”
2. Driver shortage. According to the American Trucking Association 2022 update, shortage estimates are calculated by determine the difference between the number of drivers currently in the market and the optimal number of drivers based on freight demands. It reported that the nearly 78,000 driver deficit (noted in the author’s statement above) is the second highest level on recorded after 81, 258 in 2021. The driver shortage is most acute in the longer-haul for-hire truckload market. This is no single cause of the driver shortage, but some of the primary factors include:

• High average age of current drivers, which leads to a high number of retirements.
• Women make up just 8 percent of all drivers, well below their representation in the total workforce of 47 percent.
• Inability of some would-be and current drivers to pass a drug test.
• Other barriers to entry such as minimum driving age, driving history and criminal background.
• Lifestyle disadvantages, especially in the longer haul market with greater time away from home.
• Infrastructure and other issues like a lack of truck parking spots and congestion.

Training program costs were not mentioned or identified as primary cause of the driver shortage in the report. As noted in the Assembly Committee Analysis, the cost associated with obtaining a commercial driver’s license on average is $3,000. Federal financial aid is not available for vocational programs, which last less than 10 weeks; therefore, trucking programs, that last roughly four weeks, are not eligible for federal financial aid or federal student loans. Additionally, under current law, programs lasting less than 4 months are not eligible for state financial aid programs. Since federal and state financial aid and federal loans are not available to students wishing to complete entry-level commercial driver training programs, students must take out personal loans or use personal credit cards which have costly interest rates for students.

1. Entry-level commercial driver training. As noted in the Assembly Committee analysis, requirements for becoming a commercial truck driver (CDL) are established by both the State and the Federal Government. Those seeking to obtain a CDL in California, after February 2022, are required to complete a federally approved entry-level training program and a minimum of 15 hours of behind-the-wheel training. The entry-level driver training must be completed by a registered training provider as listed on the Federal Motor Carrier Safety Administration training provider registry.

In California, there are 12 community colleges that offer entry-level driver training programs as listed on the federal training provider registry, the other 4,807 in-person programs are offered by either for-profits or non-profits in the state. Entry-level commercial driver training is required for a Commercial Class A or Class B license, but each requires different trainings as listed below:

Source: California Department of Motorized Vehicles

1. Cal Grant Program. The Cal Grant program, the state’s largest financial aid program, is intended to help students with financial need cover college costs. The program offers multiple types of Cal Grant awards. The amount of aid students receive depends on their award type and the segment of higher education they attend. Cal Grant A covers full systemwide tuition and fees at public universities and a fixed amount of tuition at private universities. Cal Grant B provides the same amount of tuition coverage as Cal Grant A in most cases while also providing an “access award” for nontuition expenses such as food and housing. Cal Grant C, which is only available to students enrolled in career technical education programs, provides lower award amounts for tuition and nontuition expenses. Grants can be used at institutions meeting the definition of a qualifying institution. This bill establishes different criteria from all other qualifying institutions. Under the pilot program, a qualifying institution will need to a minimum graduation rate of at least 30%, BPPE approval, and be listed as an approved training facility by the Federal Motor Carrier Safety Administration. Concerns have been raised that removing traditional quality control measures without replacing them with tested or comparable alternatives may make the program more accessible to predatory or low-quality institutions or programs. Staff notes that the proposed program is a four-year pilot program.
2. Cal Grant C. 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.

Cal Grant C awards assist with tuition and training costs for occupational, technical, and vocational programs. The award includes up to $547 for books, tools and equipment — and up to $2,462 more for tuition and up to $1, 094 fees for attendance at other than a California Community College. Funding is available for up to two years, depending on the length of the program. To qualify, a student must enroll in a program that is at least four months long at a California Community College, an independent college, or a vocational/career school. The number of new annual awards is capped in statue at 7,761.

In order to determine an applicant’s eligibility for a Cal Grant C, additional information must be provided to the Commission. That information is scored based on the applicant’s work experience, educational history, vocational aptitude, and occupational goal. Students who select a priority occupation receive additional points in the scoring criteria.

1. Who receives Cal Grant C? According to the 2022–23 report on Cal Grant recipients prepared by the Commission, Cal Grant C awardees had an average income of $45,682, an average family size of 3.2, and an average age of 28. The program is undersubscribed of the 7,761 new awards available, only 1,810 received one. The 2022–23 new Cal Grant C awards were available to low- and middle-income applicants receiving occupational or technical training in a course that was at least four months long.
2. Report back amendments. This bill expands the types of institutions that can qualify for Cal Grant C to include entry-level driver training programs lasting less than four months. The bill’s provisions will sunset on January 1, 2028. In order for the Legislature to be informed on the effectiveness of and potential lessons learned by the pilot program proposed in the bill, committee staff recommends that the bill be amended to require the California Student Aid Commission, in consultation with the California Bureau for Private Postsecondary Institutions, to submit a report to the Legislature on April 1, 2027. The report shall include, but not necessarily be limited to, all of the following information:

• The total number of award payments made under the pilot program for each award year throughout the duration of the pilot program.
• The total amount of funds expended for the purposes of award payments made under the pilot program for each award year throughout the duration of the pilot program.
• A list of qualifying institutions that participate in the pilot program.
• Graduation data for students, including aggregate information on Cal Grant C recipients for each qualifying institution that participates in the pilot program, to the extent practicable.
• Job placement and licensure rates of graduates employed in the field for each qualifying institution participating in the pilot program, to the extent practicable.
• Recommendations for improving the pilot program, including, but not necessarily limited to, other factors or measures that should be considered for classifying an institution as a qualifying institution under the pilot program and whether the Cal Grant program is the appropriate place for administering a program intended to cover training costs of shorter (less than four months) programs for purposes of meeting a strategic workforce need.

1. Previous legislation

AB 183 (Committee on Budget, Chapter 54, Statute of 2022) among other things establishes the Cal Grant Reform Act, to eliminate barriers to Cal Grant awards that would allow about 150,000 more California students to become eligible, aligned Cal Grant eligibility with the new federal Student Aid Index. Created the Cal Grant 2 program for community college students, which provides non-tuition support that grows annually with inflation, and the Cal Grant 4 program for students at University of California (UC), California State University (CSU) and other institutions. The act also states legislative intent that UC and CSU use institutional aid to cover non-tuition costs for its students

SB 1236 (Monning, Chapter 984, Statute of 2018) required the Department of Motor Vehicle to require an applicant for a Class A or Class B commercial driver’s license to complete a minimum of 15 hours behind-the-wheel training, as defined and required the department to adopt regulations related to entry-level driver training that mirrored the requirements from the Federal Government.

SUPPORT

California Trucking Association (Sponsor)

Agricultural Council of California

Agriculture Transportation Coalition

Auto Care Association

BizFed - Los Angeles County

California Automotive Wholesalers' Association

California Beer and Beverage Distributors

California Business Properties Association

California Business Roundtable

California Chamber of Commerce

California Farm Bureau

California Manufacturers & Technology Association

Foreign Trade Association

Gemini Shippers Association

Harbor Trucking Association

Next Generation in Trucking Association

Pet Food Institute

Western States Trucking Association

OPPOSITION

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 376

Author:(Villapudua)

As Amended Ver:March 28, 2023

Majority vote

SUMMARY

Establishes a pilot program available until January 1, 2028 for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements.

Major Provisions

1. Clarifies if funds are allocated and the Cal Grant Reform Act is enacted, students who otherwise would have qualified for Cal Grant C after January 1, 2024, will receive a prorated Cal Grant award.
   1. Expands the qualifying occupational and technical training programs that would qualify a student for a Cal Grant C to include entry-level driver training programs that are offered at a qualifying institution until January 1, 2028.
2. Expands eligibility for Cal Grant C to include entry-level driver training programs, of less than four months, that are compliant with regulations adopted as enumerated in Section 15250.1 of the Vehicle Code and are offered at a qualifying institution.
3. Defines a "qualifying institution" as: an institution that has a graduation rate of at least 30 percent, has a driver training program that is approved by the Bureau of Private Postsecondary Education, and is listed as an approved training facility by the Federal Motor Carrier Safety Administration (FMCSA).

COMMENTS

Cal Grant C and Cal Grant reform. In 2000, the State of California established the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program in an effort to remove any financial barrier in accessing higher education for all students. The California Student Aid Commission (CSAC) oversees state-funded financial aid programs in California and therefore, oversees the Cal Grant Program. Cal Grant A and Cal Grant B provide tuition waivers for students attending community colleges and/or four-year universities in pursuit of associate or bachelors degrees. Cal Grant C was created to assist vocational students with tuition and training costs. Cal Grant C provides up to $1,094 in tuition for a student at a community college, or $2,462 in tuition for students at a for-profit or non-profit institution. Additionally, Cal Grant C provides students with $547 for books, tools, and equipment at an eligible higher education institution. At its establishment, Cal Grant C offered 7,761 awards to qualifying students. To qualify for Cal Grant C a student must:

1. Meet the income qualifications which are the same income qualification for Cal Grant A [for a family of four: $125,000 per year and for a family of three: $115,000 a year]; and
2. Enroll in an Occupational or Technical Training program of at least four months in length but not more than 24 months in length at an eligible postsecondary institution.

For a higher education institution to be eligible for Cal Grant, the institution must be an accredited institution to operate in the State of California, keep its federal student loan cohort default rate below 15.5% and keep its graduation rate above 30%.

In the last decade, efforts have been made to reform Cal Grant to expand and refine the financial aid program to provide maximum benefits to students. SB 1028 (Jackson), Chapter 692, Statute of 2014, refined the Cal Grant C program to give priority to students who meet certain criteria, including length of time a student had been unemployed, and priority to certain occupational programs with high employment needs as determined by CSAC in collaboration with workforce development agencies. After four years of discussions and a culmination of efforts by various Assemblymembers and Senators, AB 183 (Committee on Budget), Chapter 54, Statute of 2022, established the Cal Grant Reform Act to streamline the Cal Grant system to maximize fiscal allocations to students to provide for tuition and non-tuition costs associated with attending a postsecondary education institution. The reform efforts removed the maze of Cal Grant options, which often confused students and parents as to which award they qualified for, and instead provided a simplistic two-tier award system. Cal Grant 2 will be for students who are attending a community college or a short-term vocational program. Cal Grant 4 will be for students attending a four-year university. Cal Grant C will be absorbed by Cal Grant 2 and the requirements for qualifying for a Cal Grant C will remain but students will receive a pro-rated award.

In 2019, the Legislative Analyst Office (LAO) published a report evaluating the Cal Grant C Program. The report found that in 2018-2019, all eligible applicants are approved for Cal Grant C awards and about 1/3 of applicants intend to pursue priority occupations as listed by CSAC. LAO found that about half of CCC students who receive the Cal Grant C award graduate from their intended program. The LAO determined that since 2010, some Cal Grant C awards go unused.

In their annual report on Cal Grant awards CSAC reported in 2022-2023, the number of new Cal Grant C awards was 1,109 and renewed Cal Grant C awards was 2,157. Of those provided, 1,842 were awarded to community college students, 92 to students attending independent institutions (non-profits), and 1,324 were attending for-profit institutions. The new award number is significantly less than the 7,761 Cal Grant C granted by the Legislature each year.

The original intention of Cal Grant C was to provide financial aid to students who required financial assistance to complete their educational program but did not wish to pursue traditional degree programs. Specifically, Cal Grant C is for students pursuing a vocational or career technical certificate in a program that lasts between four and 24 months. Since Cal Grant C is under awarding and has funds available each year, expanding the program to include entry-level truck driving would be a logical step in establishing a vocational pipeline for qualified commercial truck drivers. The measure seeks to capitalize on the available funds by temporarily expanding Cal Grant C eligibility to entry-level truck driving programs in order to further reform efforts to provide additional financial aid to students.

Entry-level commercial driver training. Requirements for becoming a commercial truck driver (CDL) are established by both the State and the Federal Government. Those seeking to obtain a CDL in California, after February 2022, are required to complete a federally approved entry-level training program and a minimum of 15 hours of behind-the-wheel training. The entry-level driver training must be completed by a registered training provider as listed on the federal Training Provider Registry.

In California, there are 12 community colleges that offer entry-level driver training programs as listed on the federal training provider registry, the other 4,807 in-person programs are offered by either for-profits or non-profits in the state.

Commercial truck workforce. In October 2021, the American Trucking Associations Chief Economist, Bob Costello issued a statement noting that the national shortage of commercial drivers had risen to 80,000, and the shortage could surpass 160,000 by 2030. Mr. Castello also noted in his statement that, "before the pandemic, we were adding drivers to the industry even though we had a shortage, more people were entering the industry but the issue is that new entrants into the industry didn't keep up with the demand for goods." The demand outweighing the supply for commercial drivers was one of the contributing factors to the supply chain breakdown during the COVID-19 lockdowns. As the country and state move towards recovering from the pandemic, increasing the number of trained commercial drivers is key to ensuring the timely supply of necessary goods to produce and maintain a bustling economy. In California, according to the Employment Development Department, by 2028 there will be 388,620 positions available for truck drivers. California has sought to provide workforce pipelines for occupations that would offer high wages to students and by expanding Cal Grant C to include entry-level truck drivers, this measure would accomplish a workforce pipeline for truck drivers by providing financial aid for entry-level vocational training

The cost associated with obtaining a commercial driver's license on average is $3,000. Federal financial aid is not available for vocational programs, which last less than 10 weeks; therefore, trucking programs, that last roughly four weeks, are not eligible for federal financial aid or federal student loans. Additionally, under current law, programs lasting less than 4 months are not eligible for state financial aid programs. Since federal and state financial aid and federal loans are not available to students wishing to complete entry-level commercial driver training programs, students must take out personal loans or use personal credit cards which have costly interest rates for students. This measure seeks to rectify this by providing Cal Grant C to potential truck drivers to avoid the costly debt associated with the training requirements.

According to the Author

The author contends, "according to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022, and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 (Villapudua) seeks to address the truck driver shortage that is impacting the nation's supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program."

Arguments in Support

As expressed by the California Trucking Association, a sponsor of AB 376 (Villapudua), "our coalition applauds Assemblymember Villapudua for his proactive response to address the driver shortage that has plagued the State's supply chain for decades. AB 376 seeks to address the truck driver shortage impacting the movement of goods within California and throughout the country by extending financial aid in the form of Cal Grant C to eligible low- and middle-income students enrolled in an entry-level driver training program. AB 376 extends Cal Grant C eligibility to include and prioritize students pursuing an entry-level driver training program of less than four months at a qualifying post-secondary institution."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

1. Ongoing General Fund costs of about $550,000 annually to the California Students Aid Commission (CSAC) for five staff to implement the program for the life of the pilot.
2. Ongoing General Fund costs of between about $190,000 and $535,000 annually for Cal Grant C grants to students for the life of the pilot.

This estimate assumes 1,400 students receive the grant annually. (The Department of Motor Vehicles issued about 1,400 commercial driver licenses in 2022.) Costs would be higher if students attended a private institution program and lower if students attended a California Community College (CCC) program, because a Cal Grant C is $376 per semester for a private institution and is $137 per semester at a CCC. Costs would ultimately depend on the number of students receiving the grant and award amounts.

VOTES

ASM HIGHER EDUCATION: 12-0-0

YES: Mike Fong, Ta, Addis, Arambula, Gabriel, Irwin, Low, Ortega, Sanchez, Santiago, Wallis, Weber

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: March 28, 2023

CONSULTANT: Ellen Cesaretti-Monroy / HIGHER ED. / (916) 319-3960 FN: 0000787

Date of Hearing: May 3, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 376

Author:(Villapudua) – As Amended Ver:March 28, 2023

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

SUMMARY:

This bill establishes, until January 1, 2028, a pilot program for students participating in certain entry-level truck driving programs to be eligible for state financial aid.

Specifically, this bill:

1. Expands eligibility for a Cal Grant C to a student enrolled in an entry-level driver training program of less than four months offered at a qualifying institution.
2. Clarifies, if funds are allocated and the Cal Grant Reform Act is enacted, students who otherwise would have qualified for Cal Grant C after January 1, 2024, will receive a prorated Cal Grant award.
3. Defines a “qualifying institution” as one with a graduation rate of at least 30% that is listed on the Federal Motor Carrier Safety Administration training provider registry, and that is approved by the Bureau for Private Postsecondary Education.

FISCAL EFFECT:

1. Ongoing General Fund costs of about $550,000 annually to the California Students Aid Commission (CSAC) for five staff to implement the program for the life of the pilot.
2. Ongoing General Fund costs of between about $190,000 and $535,000 annually for Cal Grant C grants to students for the life of the pilot.

This estimate assumes 1,400 students receive the grant annually. (The Department of Motor Vehicles issued about 1,400 commercial driver licenses in 2022.) Costs would be higher if students attended a private institution program and lower if students attended a California Community College (CCC) program, because a Cal Grant C is $376 per semester for a private institution and is $137 per semester at a CCC. Costs would ultimately depend on the number of students receiving the grant and award amounts.

COMMENTS:

1. Purpose. According to the author:

According to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022, and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 (Villapudua) seeks to address the truck driver shortage that is impacting the nation’s supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program.

1. Background. CSAC oversees the Cal Grant state financial aid programs. Cal Grant A and Cal Grant B provide tuition waivers for students attending community colleges or four-year universities in pursuit of associate or bachelor’s degrees. Cal Grant C assists vocational students with tuition and training costs. Cal Grant C provides up to $1,094 in tuition for a student at a community college, or $2,462 in tuition for a student at a for-profit or non-profit institution. Additionally, Cal Grant C provides students with $547 for books, tools, and equipment. To qualify for Cal Grant C, a student must meet certain income qualifications and enroll in a vocational training program of at least four months in length but not more than 24 months in length at an eligible postsecondary institution.

This bill expands eligibility for Cal Grant C to include entry-level driver training programs of less than four months that are offered at a qualifying institution.

1. Previous Legislation. AB 183 (Committee on Budget), Chapter 54, Statute of 2022, establishes the Cal Grant Reform Act, which makes various changes to Cal Grant programs, subject to appropriation. The act has not yet been fully implemented.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: April 11, 2023

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Mike Fong, Chair

ABPCA Bill Id:AB 376 (

Author:Villapudua) – As Amended Ver:March 28, 2023

SUBJECT: Student financial aid: Cal Grant C: driver training programs: commercial motor vehicles

SUMMARY: Establishes a pilot program available until January 1, 2028 for the purpose of expanding Cal Grant C eligibility to students participating in entry-level truck driving programs that meet specific requirements. Specifically, this bill:

1. Clarifies if funds are allocated and the Cal Grant Reform Act is enacted, students who otherwise would have qualified for Cal Grant C after January 1, 2024, will receive a prorated Cal Grant award.
   1. Expands the qualifying occupational and technical training programs that would qualify a student for a Cal Grant C to include entry-level driver training programs that are offered at a qualifying institution until January 1, 2028.
2. Expands eligibility for Cal Grant C to include entry-level driver training programs, of less than four months, that are compliant with regulations adopted as enumerated in Section 15250.1 of the Vehicle Code and are offered at a qualifying institution.
3. Defines a “qualifying institution” as: an institution that has a graduation rate of at least 30 percent, has a driver training program that is approved by the Bureau of Private Postsecondary Education, and is listed as an approved training facility by the Federal Motor Carrier Safety Administration (FMCSA).

EXISTING LAW: Federal Law.

1. Establishes the training requirements for entry-level drivers including minimum content for theory and behind-the-wheel training curricula. Entry-level driver training is defined as training for those who apply for a commercial driver’s license (Code of Federal Regulations Title 49, Subtitle B, Chapter III, Subpart B, Part 380, Subpart F).
2. Establishes the FMCSA’s Trainer Provider registry. Requires institutions, who operate entry-level training programs, for a commercial driver’s license to comply with the requirements for the registry and to register to be listed within the Trainer Provider Registry (Code of Federal Regulations Title 49, Subtitle B, Chapter III, Subpart B, Part 380, Subpart G).

State Law.

1. Creates the Cal Grant C program for the purpose of providing financial resources to qualifying students, as defined, who seek to enroll in occupational and technical training programs that are aligned with the state’s dynamic economic needs as determined by CSAC in consultation with various state and federal agencies associated with workforce development. Cal Grant C will be authorized for training that is not less than four months and the amount of the grant and number of recipients shall be determined in the annual Budget Act (Education Code (EDC) Section 69439).
2. Requires the Department of Motor Vehicles by June 5, 2020, to adopt regulations for entry-level driver training requirements for drivers of commercial motor vehicles that are in compliance with federal regulations for commercial motor vehicles. Requires the Department of Motor Vehicles to require the course of instruction for entry-level drivers, who seek a Class A or Class B commercial driver’s license to complete a minimum of 15 hours of behind-the-wheel training, with at least 10 of those 15 hours being on a public road (Vehicle Code 15250.1).

FISCAL EFFECT: Unknown

COMMENTS: Need for the bill. The author contends, “according to the American Trucking Associations, the trucking industry was short roughly 78,000 drivers in 2022, and must hire nearly 1.2 million drivers over the next decade to address increased demands. During the height of the pandemic, California experienced the effect of the truck driver shortage on sectors such as agriculture, construction, and retail/manufacturing. AB 376 (Villapudua) seeks to address the truck driver shortage that is impacting the nation’s supply chain by extending financial aid in the form of Cal Grant C to eligible students enrolled in an entry-level driver training program.”

Cal Grant C and Cal Grant reform. In 2000, the State of California established the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program in an effort to remove any financial barrier in accessing higher education for all students. The California Student Aid Commission (CSAC) oversees state-funded financial aid programs in California and therefore, oversees the Cal Grant Program. Cal Grant A and Cal Grant B provide tuition waivers for students attending community colleges and/or four-year universities in pursuit of associate or bachelors degrees. Cal Grant C was created to assist vocational students with tuition and training costs. Cal Grant C provides up to $1,094 in tuition for a student at a community college, or $2,462 in tuition for students at a for-profit or non-profit institution. Additionally, Cal Grant C provides students with $547 for books, tools, and equipment at an eligible higher education institution. At its establishment, Cal Grant C offered 7,761 awards to qualifying students. To qualify for Cal Grant C a student must:

• Meet the income qualifications which are the same income qualification for Cal Grant A [for a family of four: $125,000 per year and for a family of three: $115,000 a year]; and
• Enroll in an Occupational or Technical Training program of at least four months in length but not more than 24 months in length at an eligible postsecondary institution.

For a higher education institution to be eligible for Cal Grant, the institution must be an accredited institution to operate in the State of California, keep its federal student loan cohort default rate below 15.5% and keep its graduation rate above 30%.

In the last decade, efforts have been made to reform Cal Grant to expand and refine the financial aid program to provide maximum benefits to students. SB 1028 (Jackson), Chapter 692, Statute of 2014, refined the Cal Grant C program to give priority to students who meet certain criteria, including length of time a student had been unemployed, and priority to certain occupational programs with high employment needs as determined by CSAC in collaboration with workforce development agencies. After four years of discussions and a culmination of efforts by various Assemblymembers and Senators, AB 183 (Committee on Budget), Chapter 54, Statute of 2022, established the Cal Grant Reform Act to streamline the Cal Grant system to maximize fiscal allocations to students to provide for tuition and non-tuition costs associated with attending a postsecondary education institution. The reform efforts removed the maze of Cal Grant options, which often confused students and parents as to which award they qualified for, and instead provided a simplistic two-tier award system. Cal Grant 2 will be for students who are attending a community college or a short-term vocational program. Cal Grant 4 will be for students attending a four-year university. Cal Grant C will be absorbed by Cal Grant 2 and the requirements for qualifying for a Cal Grant C will remain but students will receive a pro-rated award.

In 2019, the Legislative Analyst Office (LAO) published a report evaluating the Cal Grant C Program. The report found that in 2018-2019, all eligible applicants are approved for Cal Grant C awards and about 1/3 of applicants intend to pursue priority occupations as listed by CSAC. LAO found that about half of CCC students who receive the Cal Grant C award graduate from their intended program. The LAO determined that since 2010, some Cal Grant C awards go unused.

In their annual report on Cal Grant awards CSAC reported in 2022-2023, the number of new Cal Grant C awards was 1,109 and renewed Cal Grant C awards was 2,157. Of those provided, 1,842 were awarded to community college students, 92 to students attending independent institutions (non-profits), and 1,324 were attending for-profit institutions. The new award number is significantly less than the 7,761 Cal Grant C granted by the Legislature each year.

The original intention of Cal Grant C was to provide financial aid to students who required financial assistance to complete their educational program but did not wish to pursue traditional degree programs. Specifically, Cal Grant C is for students pursuing a vocational or career technical certificate in a program that lasts between four and 24 months. Since Cal Grant C is under awarding and has funds available each year, expanding the program to include entry-level truck driving would be a logical step in establishing a vocational pipeline for qualified commercial truck drivers. AB 376 (Villapudua) seeks to capitalize on the available funds by temporarily expanding Cal Grant C eligibility to entry-level truck driving programs in order to further reform efforts to provide additional financial aid to students.

Entry-level commercial driver training. Requirements for becoming a commercial truck driver (CDL) are established by both the State and the Federal Government. Those seeking to obtain a CDL in California, after February 2022, are required to complete a federally approved entry-level training program and a minimum of 15 hours of behind-the-wheel training. The entry-level driver training must be completed by a registered training provider as listed on the federal Training Provider Registry.

In California, there are 12 community colleges that offer entry-level driver training programs as listed on the federal training provider registry, the other 4,807 in-person programs are offered by either for-profits or non-profits in the state. Entry-level commercial driver training is required for a Commercial Class A or Class B license, but each requires different trainings as listed below:

Source: California Department of Motorized Vehicles

Commercial truck workforce. In October 2021, the American Trucking Associations Chief Economist, Bob Costello issued a statement noting that the national shortage of commercial drivers had risen to 80,000, and the shortage could surpass 160,000 by 2030. Mr. Castello also noted in his statement that, “before the pandemic, we were adding drivers to the industry even though we had a shortage, more people were entering the industry but the issue is that new entrants into the industry didn’t keep up with the demand for goods.” The demand outweighing the supply for commercial drivers was one of the contributing factors to the supply chain breakdown during the COVID-19 lockdowns. As the country and state move towards recovering from the pandemic, increasing the number of trained commercial drivers is key to ensuring the timely supply of necessary goods to produce and maintain a bustling economy. In California, according to the Employment Development Department, by 2028 there will be 388,620 positions available for truck drivers. California has sought to provide workforce pipelines for occupations that would offer high wages to students and by expanding Cal Grant C to include entry-level truck drivers, AB 376 (Villapudua), California would establish a financial incentive for students to enter the transportation workforce.

The cost associated with obtaining a commercial driver’s license on average is $3,000. Federal financial aid is not available for vocational programs, which last less than 10 weeks; therefore, trucking programs, that last roughly four weeks, are not eligible for federal financial aid or federal student loans. Additionally, under current law, programs lasting less than 4 months are not eligible for state financial aid programs. Since federal and state financial aid and federal loans are not available to students wishing to complete entry-level commercial driver training programs, students must take out personal loans or use personal credit cards which have costly interest rates for students. AB 376 (Villapudua) seeks to rectify this by providing Cal Grant C to potential truck drivers to avoid the costly debt associated with the training requirements.

Arguments in support. As expressed by the California Trucking Association, a sponsor of AB 376 (Villapudua), “our coalition applauds Assemblymember Villapudua for his proactive response to address the driver shortage that has plagued the State’s supply chain for decades. AB 376 seeks to address the truck driver shortage impacting the movement of goods within California and throughout the country by extending financial aid in the form of Cal Grant C to eligible low- and middle-income students enrolled in an entry-level driver training program. AB 376 extends Cal Grant C eligibility to include and prioritize students pursuing an entry-level driver training program of less than four months at a qualifying post-secondary institution.”

Previous legislation. AB 183 (Committee on Budget), Chapter 54, Statute of 2022, among other things establishes the Cal Grant Reform Act, to eliminate barriers to Cal Grant awards that would allow about 150,000 more California students to become eligible, aligned Cal Grant eligibility with the new federal Student Aid Index. Created the Cal Grant 2 program for community college students, which provides non-tuition support that grows annually with inflation, and the Cal Grant 4 program for students at University of California (UC), California State University (CSU) and other institutions. The act also states legislative intent that UC and CSU use institutional aid to cover non-tuition costs for its students

SB 1236 (Monning), Chapter 984, Statute of 2018, required the Department of Motor Vehicle to require an applicant for a Class A or Class B commercial driver’s license to complete a minimum of 15 hours behind-the-wheel training, as defined and required the department to adopt regulations related to entry-level driver training that mirrored the requirements from the Federal Government.

REGISTERED SUPPORT / OPPOSITION:

Support

Agricultural Council of California

Agriculture Transportation Coalition – Agtc

Associated Builders and Contractors of California

Bizfed - Los Angeles County

California Beer and Beverage Distributors

California Business Properties Association

California Business Roundtable

California Chamber of Commerce

California Farm Bureau

California Manufacturers & Technology Association

California Retailers Association

California Trucking Association

Gemini Shippers Association

Harbor Trucking Association

Next Generation in Trucking Association

Pet Food Institute

Western States Trucking Association

Opposition

None on file.

Analysis Prepared by: Ellen Cesaretti-Monroy / HIGHER ED. / (916) 319-3960