BILL NUMBER: SB 1383	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 2, 2006

INTRODUCED BY   Senator Ortiz
    (   Coauthor:   Senator   Romero
  ) 

                        FEBRUARY 21, 2006

   An act to amend Sections 69433.9, 69434, 69435.3,  and
69436   69436, and 69514  of the Education Code,
relating to student financial aid.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1383, as amended, Ortiz  Student financial aid:
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.
    (1)    Existing law, the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, establishes the
Cal Grant A and B Entitlement awards, the California Community
College Transfer Cal Grant 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 awards under these programs
for participating students attending qualifying institutions. Among
the existing eligibility requirements established under the act for
the Cal Grant A and B Entitlement awards is a requirement that a
student must have graduated from high school or its equivalent during
or after the 2000-01 academic year  and that the student has
submitted   a completed financial aid application no later
than March 2 of the academic year, as defined to mean a year
commencing on July 1 and ending on June 30, of high school graduation
or its equivalent  . Among the existing eligibility
requirements established under the act for the California Community
College Transfer Cal Grant Entitlement awards is a requirement that a
student must have graduated from a California high school or its
equivalent during or after the 2000-01 academic year.
   Existing law requires, commencing with the 2003-04 school year and
each school year thereafter, each pupil completing grade 12, other
than a pupil to whom an exception to this requirement is applicable,
to successfully pass the high school exit examination as a condition
of graduation from high school.
   This bill would specify that a student who has  completed
the coursework necessary to receive a high school diploma, but who
has not passed   either satisfied every requirement of
graduation from the last high school he or she attended except for
passage of  the high school exit examination  or who has met
the requirements for designation by the United States Department of
Education that the student has an ability to benefit from the
education or training to being pursued or contemplated by that
student  , satisfies the requirement of obtaining the equivalent
of high school graduation for the purposes of  these
requirements   the act  .  
   The bill would also provide that an applicant for the Cal Grant A
and B Entitlement awards may submit a completed financial aid
application no later than March 2 of the calendar year of high school
graduation or its equivalent.  
   (2) Existing law requires the Student Aid Commission to report, on
or before April 1 of each year, statistical data examining the
impact and effectiveness of state-funded student aid programs. 

   This bill would require this annual report to include the number
and the demographic characteristics of the students who qualify for a
Cal Grant award based on obtaining the equivalent of high school
graduation pursuant to the bill. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 69433.9 of the Education Code is amended to
read:
   69433.9.  To be eligible to receive a Cal Grant award under this
chapter, a student shall be all of the following:
   (a) A citizen of the United States, or an eligible noncitizen, as
defined for purposes of financial aid programs under Title IV of the
federal Higher Education Act of 1965 (20 U.S.C. Secs. 1070 et seq.,
as from time to time amended).
   (b) In compliance with all applicable Selective Service
registration requirements.
   (c) Not incarcerated.
   (d) Not in default on any student loan within the meaning of
Section 69507.5.
   (e)  (1)    For purposes of Article 2
(commencing with Section 69434), Article 3 (commencing with Section
69435), and Article 4 (commencing with Section 69436), at the time of
high school graduation or its equivalent, be a resident of
California.  A student who has completed the coursework
necessary to receive a high school diploma, as required by Chapter 2
(commencing with Section 51200) of Part 28, but who has not passed
the high school exit examination required pursuant to Chapter 9
(commencing with Section 60850) of Part 33, satisfies the requirement
of obtaining the equivalent of high school graduation for the
purposes of this section.  
   (2) A student who has accomplished either of the following
satisfies any requirement of obtaining the equivalent of high school
graduation for purposes of this chapter:  
   (A) Satisfied every requirement of graduation from the last high
school he or she attended except for passage of the high school exit
examination required pursuant to Chapter 9 (commencing with Section
60850) of Part 33.  
   (B) Met the requirements for designation by the United States
Department of Education that the student has an ability to benefit
from the education or training being pursued or contemplated by that
student. 
  SEC. 2.  Section 69434 of the Education Code is amended to read:
   69434.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, a Cal Grant A award shall be used only for
tuition or student fees, or both, in a for-credit instructional
program with a length of not less than two academic years. Each
student who meets the Cal Grant A qualifications as set forth in this
article shall be guaranteed an award. The amount of any individual
award is dependent on the cost of tuition or fees, or both, at the
qualifying institution at which the student is enrolled. For each
applicant, the award amount shall not exceed the amount of the
calculated financial need.
   (b) Pursuant to Section 66021.2, any California resident is
entitled to a Cal Grant A award, and the commission shall allocate
that award, if all of the following criteria are met:
   (1) The student has submitted, pursuant to Section 69432.9, a
complete financial aid application, submitted or postmarked no later
than March 2 of the  academic   calendar 
year of high school graduation or its equivalent for the award year
immediately following the academic year of high school graduation or
its equivalent, or no later than March 2 of the academic year
following high school graduation or its equivalent for the second
award year following the year of high school graduation or its
equivalent.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student attains a high school grade point average of at
least 3.0 on a four-point scale.
   (4) The student's household has an income and asset level that
does not exceed the level for Cal Grant A recipients set forth in
Section 69432.7.
   (5) The student is pursuing an undergraduate academic program of
not less than two academic years that is offered by a qualifying
institution.
   (6) The student is enrolled at least part time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).

   (8) The student graduated from high school or its equivalent
during or after the 2000-01 academic year.  A student who has
completed the coursework necessary to receive a high school diploma,
as required by Chapter 2 (commencing with Section 51200) of Part 28,
but who has not passed the exit examination required pursuant to
Chapter 9 (commencing with Section 60850) of Part 33, satisfies the
requirement of obtaining the equivalent of high school graduation for
the purposes of this section. 
   (c) A student who meets the Cal Grant A Entitlement Program
criteria specified in this article shall receive a Cal Grant A award
for tuition or fees, or both, pursuant to Section 66021.2.
  SEC. 3.  Section 69435.3 of the Education Code is amended to read:

   69435.3.  (a) Any California resident is entitled to receive a Cal
Grant B award, and the commission shall allocate that award pursuant
to Section 66021.2, if all of the following criteria are met:
   (1) The student has submitted, pursuant to Section 69432.9, a
complete financial aid application, submitted or postmarked no later
than March 2 of the  academic   calendar 
year of high school graduation or its equivalent for the award year
immediately following the academic year of high school graduation or
its equivalent, or no later than March 2 of the academic year
following high school graduation or its equivalent for the second
award year following the year of high school graduation or its
equivalent.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student attains a high school grade point average of at
least 2.0 on a four-point scale.
   (4) The student's household has an income and asset level that
does not exceed the level for Cal Grant B recipients as set forth in
Section 69432.7.
   (5) The student is pursuing an undergraduate academic program of
not less than one academic year that is offered by a qualifying
institution.
   (6) The student is enrolled at least part-time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).

   (8) The student graduated from high school or its equivalent
during or after the 2000-01 academic year.  A student who has
completed the coursework necessary to receive a high school diploma,
as required by Chapter 2 (commencing with Section 51200) of Part 28,
but who has not passed the exit examination required pursuant to
Chapter 9 (commencing with Section 60850) of Part 33, satisfies the
requirement of obtaining the equivalent of high school graduation for
the purposes of this section. 
   (b) A student who meets the Cal Grant B Entitlement Program
criteria specified in this article shall receive a Cal Grant B award
for access costs and tuition and fees pursuant to Section 66021.2.
  SEC. 4.  Section 69436 of the Education Code is amended to read:
   69436.  (a) Commencing with the 2001-02 academic year, and each
academic year thereafter, a student who was not awarded a Cal Grant A
or B award pursuant to Article 2 (commencing with Section 69434) or
Article 3 (commencing with Section 69435) at the time of his or her
high school graduation or at the time he or she achieved the
equivalent of high school graduation but, at the time of transfer
from a California community college to a qualifying baccalaureate
program, meets all of the criteria set forth in subdivision (b),
shall be entitled to a Cal Grant A or B award.
   (b) Any California resident transferring from a California
community college to a qualifying institution that offers a
baccalaureate degree is entitled to receive, and the commission shall
award, a Cal Grant A or B award depending on the eligibility
determined pursuant to subdivision (c), if all of the following
criteria are met:
   (1) A complete official financial aid application has been
submitted or postmarked pursuant to Section 69432.9, no later than
the March 2 of the year immediately preceding the award year.
   (2) The student demonstrates financial need pursuant to Section
69433.
   (3) The student has earned a community college grade point average
of at least 2.4 on a 4.0 scale and is eligible to transfer to a
qualifying institution that offers a baccalaureate degree.
   (4) The student's household has an income and asset level not
exceeding the limits set forth in Section 69432.7.
   (5) The student is pursuing a baccalaureate degree that is offered
by a qualifying institution.
   (6) He or she is enrolled at least part-time.
   (7) The student meets the general Cal Grant eligibility
requirements set forth in Article 1 (commencing with Section 69430).

   (8) The student does not meet the federal definition of an
independent student, as set forth in subsection (d) of Section 1087vv
of Title 20 of the United States Code, with the exception of:
   (A) A student who is an orphan or a ward of the court and who will
not be 24 years old or older by December 31 of the award year.
   (B) A student who is a veteran of the United States Armed Forces
and who will not be 24 years old or older by December 31 of the award
year.
   (C) A student who is a married person and who will not be 24 years
old or older by December 31 of the award year.
   (D) A student who will not be 24 years old or older by December 31
of the award year and who has dependents other than a spouse.
   (E) A student who will not be 24 years old or older by December 31
of the award year and for whom a financial aid administrator makes
documented determination of independence by reason of other unusual
circumstances.
   (9) The student graduated from a California high school or its
equivalent during or after the 2000-01 academic year.  A
student who has completed, at a California high school, the
coursework necessary to receive a high school diploma, as required by
Chapter 2 (commencing with Section 51200) of Part 28, but who has
not passed the exit examination required pursuant to Chapter 9
(commencing with Section 60850) of Part 33, satisfies the requirement
of obtaining the equivalent of high school graduation for the
purposes of this section. 
   (c) The amount and type of the award pursuant to this article
shall be determined as follows:
   (1) For applicants with income and assets at or under the Cal
Grant A limits, the award amount shall be the amount established
pursuant to Article 2 (commencing with Section 69434).
   (2) For applicants with income and assets at or under the Cal
Grant B limits, the award amount shall be the amount established
pursuant to Article 3 (commencing with Section 69435).
   SEC. 5.    Section 69514 of the   Education
Code   is amended to read: 
   69514.  The commission shall do all of the following:
   (a) Report, on or before April 1 of each year, statistical data
examining the impact and effectiveness of state-funded programs. The
commission shall utilize common criteria in determining the impact of
these programs  ,  and shall have the authority to obtain
any data from postsecondary educational institutions necessary for
the reports.   This report shall specifically note the number and
the demographic characteristics of the students who qualify for a
Cal Grant award based on obtaining the equivalent of high school
  graduation pursuant to paragraph (2) of subdivision (e) of
Section 69433.9. 
   (b) Collect and disseminate data concerning the financial
resources and needs of students and potential students, and the scope
and impact of existing state, federal, and institutional student aid
programs.
   (c) Report, on or before April 1 of each year, the aggregate
financial need of individuals seeking access to postsecondary
education and the degree to which current student aid programs meet
this legitimate financial need.
   (d) Develop and report annually the distribution of funds and
awards among income groups, ethnic groups, grade point average
levels, and postsecondary education segments.
   (e) Prepare and disseminate information regarding the criteria
utilized in distributing available student aid funds.
   (f) Be authorized to expend funds for the purpose of disseminating
information about all institutional, state, and federal student aid
programs to potential applicants. This distribution of information
shall primarily focus on potential applicants with the greatest
financial need.