SECTIONS 69430-69433.9 - California Statutes

EDUCATION CODE

SECTION 69430-69433.9

69430. This chapter shall be known, and may be cited, as the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program.

69431. There is hereby established the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, which may
also be referred to as the Cal Grant Program.

69432. (a) Cal Grant Program awards shall be known as "Cal Grant A
Entitlement Awards," "Cal Grant B Entitlement Awards," "California
Community College Transfer Entitlement Awards," "Competitive Cal
Grant A and B Awards," "Cal Grant C Awards," and "Cal Grant T Awards."

(b) Maximum award amounts for students at independent institutions
and for Cal Grant C and T awards shall be identified in the annual
Budget Act. Maximum award amounts for Cal Grant A and B awards for
students attending public institutions shall be referenced in the
annual Budget Act.

69432.5. The Budget required by the California Constitution to be
submitted by the Governor at each Regular Session of the Legislature
shall take into consideration the amount of federal grant funds for
student financial aid.

69432.7. As used in this chapter, the following terms have the
following meanings:
(a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
(b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
(c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
(d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
(e) "Commission" means the Student Aid Commission.
(f) "Enrollment status" means part- or full-time status.
(1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
(2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
(g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
(h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
(i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
(j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
(k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants in the Cal Grant Program, as defined and adopted in
regulations by the commission for the 2001-02 academic year, which
shall be set pursuant to the following income and asset ceiling
amounts:

CAL GRANT PROGRAM INCOME CEILINGS

+--------------------+--------------+--------------+
| Cal Grant |
| A, |
| C, and T Cal Grant B |
+--------------------+--------------+--------------+
|Dependent and Independent students with |
|dependents* |
+--------------------+--------------+--------------+
|Family Size |
+--------------------+--------------+--------------+
|Six or more $74,100 $40,700|
+--------------------+--------------+--------------+
|Five $68,700 $37,700|
+--------------------+--------------+--------------+
|Four $64,100 $33,700|
+--------------------+--------------+--------------+
|Three $59,000 $30,300|
+--------------------+--------------+--------------+
|Two $57,600 $26,900|
+--------------------+--------------+--------------+
|Independent |
+--------------------+--------------+--------------+
|Single, no $23,500 $23,500|
|dependents |
+--------------------+--------------+--------------+
|Married $26,900 $26,900|
+--------------------+--------------+--------------+

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

CAL GRANT PROGRAM ASSET CEILINGS

+----------------------+-------------+-------------+
| Cal Grant |
| A, |
| C, and T Cal Grant B |
+----------------------+-------------+-------------+
|Dependent** $49,600 $49,600|
+----------------------+-------------+-------------+
|Independent $23,600 $23,600|
+----------------------+-------------+-------------+

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

The commission shall annually adjust the maximum household income
and asset levels based on the percentage change in the cost of living
within the meaning of paragraph (1) of subdivision (e) of Section 8
of Article XIII B of the California Constitution. An applicant who
qualifies to be considered under the simplified needs test
established by federal law for student assistance shall be presumed
to meet the asset level test under this section. Prior to disbursing
any Cal Grant funds, a qualifying institution shall be obligated,
under the terms of its institutional participation agreement with the
commission, to resolve any conflicts that may exist in the data the
institution possesses relating to that individual.
(l) (1) "Qualifying institution" means an institution that
complies with paragraph (2) and is any of the following:
(A) A California private or independent postsecondary educational
institution that participates in the Pell Grant Program and in at
least two of the following federal campus-based student aid programs:
(i) Federal Work-Study.
(ii) Perkins Loan Program.
(iii) Supplemental Educational Opportunity Grant Program.
(B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for the purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
(C) A California public postsecondary educational institution.
(2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
(m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards.

69432.8. The commission may determine that an advance payment is
essential to ensure that funds provided pursuant to this chapter to
assist students to enroll in postsecondary education are available at
the time students enroll. Upon making that determination, the
commission may, on the basis of institutional academic calendars,
advance, per term to authorized postsecondary educational
institutions, the funds for eligible students who have indicated they
will attend those institutions, less an amount based on historical
claim enrollment attrition information. Each institution shall
disburse the funds in accordance with the provisions set forth in the
institutional agreement between the commission and the institution.

69432.9. (a) A Cal Grant applicant shall submit a complete official
financial aid application pursuant to Section 69433 and applicable
regulations adopted by the commission.
(b) Financial need shall be determined using the federal financial
need methodology pursuant to subdivision (a) of Section 69506 and
applicable regulations adopted by the commission, and as established
by Title IV of the federal Higher Education Act of 1965, as amended
(20 U.S.C. Secs. 1070 et seq.).
(1) "Expected family contribution," with respect to an applicant
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Secs.
1070 et seq.)) and applicable rules and regulations adopted by the
commission.
(2) "Financial need" means the difference between the student's
cost of attendance as determined by the commission and the expected
family contribution. The calculation of financial need shall be
consistent with Title IV of the federal Higher Education Act of 1965,
as amended (20 U.S.C. Secs. 1070 et seq.).
(3) (A) The minimum financial need required for receipt of an
initial Cal Grant A or Cal Grant C award shall be no less than the
maximum annual award value for the applicable institution, plus an
additional one thousand five hundred dollars ($1,500) of financial
need.
(B) The minimum financial need required for receipt of an initial
Cal Grant B award shall be no less than seven hundred dollars ($700).
(c) The commission shall require that a grade point average be
submitted for all Cal Grant A and B applicants, except for those
permitted to provide test scores in lieu of a grade point average.
The commission shall require that each report of a grade point
average include a certification, executed under penalty of perjury,
by a school official, that the grade point average reported is
accurately reported. The certification shall include a statement that
it is subject to review by the commission or its designee. The
commission shall adopt regulations that establish a grace period for
receipt of the grade point average and any appropriate corrections,
and that set forth the circumstances under which a student may submit
a specified test score designated by the commission, by regulation,
in lieu of submitting a qualifying grade point average. It is the
intent of the Legislature that high schools and institutions of
higher education certify the grade point averages of their students
in time to meet the application deadlines imposed by this chapter.

69433. (a) (1) A Cal Grant Program award shall be based upon the
financial need of the applicant, and shall not exceed the calculated
financial need for any individual applicant. The minimum level of
financial need of each applicant shall be determined by the
commission pursuant to Section 69432.9. The commission may provide
renewal awards.
(2) A student attending a nonpublic institution shall receive a
renewal award for tuition or fees, or both, in an amount not to
exceed the maximum allowable award amount that was in effect in the
year in which the student first received a new award.
(b) A Cal Grant award authorized pursuant to this chapter shall be
defined as a full-time equivalent grant. An award to a part-time
student shall be a fraction of a full-time grant, as determined by
the commission.
(c) (1) The commission shall prescribe the use of standardized
student financial aid applications for California. These applications
shall be simple in nature, and collect common data elements required
by the federal government and those elements needed to meet the
objectives of state-funded and institutional financial aid programs.
(2) The applications prescribed in paragraph (1) shall be utilized
for the Cal Grant Program, all other programs funded by the state or
a public institution of postsecondary education (except for the
Financial Assistance Program of the Board of Governors of the
California Community Colleges authorized by Chapter 1118 of the
Statutes of 1987, for which a simplified application designed for
that sole purpose may be used), and all federal programs administered
by a public postsecondary education institution.
(3) Supplemental application information may be utilized if the
information is essential to accomplishing the objectives of
individual programs. All supplemental application information used
for the purposes of commission-administered programs shall be subject
to approval by the commission, and applications shall be identical
for programs with similar objectives, as determined by the
commission.
(4) Public postsecondary institutions are encouraged to use, but
may decide whether to use, the standard applications for funds
provided by private donors.
(5) The Legislature finds and declares that it is in the best
interest of students that all postsecondary education institutions in
California participating in federal and state-funded financial aid
programs accept the standard applications prescribed by the
commission.
(d) Nothing in this chapter shall prevent an individual public
postsecondary institution from processing, with its own staff and
fiscal resources, the standard financial aid applications specified
in subdivision (c) for student aid programs for which it has legal
responsibility.
(e) The commission may enter into contracts with a public agency
or a private entity to improve the processing and distribution of
grants, fellowships, and loans through the use of electronic networks
and unified data bases.

69433.4. (a) Notwithstanding any other provision of law, a
recipient of a Cal Grant award who is a member of the National Guard,
the State Military Reserve, or the Naval Militia on active duty
within the meaning of Section 66025.6, who is obliged to withdraw
from his or her studies because of that active duty, and who later
resumes those studies no later than one year after completing that
active duty, does not forfeit either any of the monetary value of the
Cal Grant award or any of his or her period of eligibility for that
award.
(b) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2012, deletes or extends that
date.

69433.5. (a) Only a resident of California, as determined by the
commission pursuant to Part 41 (commencing with Section 68000), is
eligible for an initial Cal Grant award. The recipient shall remain
eligible for award renewal only if he or she is a California
resident, in attendance, and making satisfactory academic progress at
a qualifying institution, as determined by the commission.
(b) A part-time student shall not be discriminated against in the
selection of Cal Grant Program award recipients, and an award to a
part-time student shall be approximately proportional to the time the
student spends in the instructional program, as determined by the
commission. A first-time Cal Grant Program award recipient who is a
part-time student shall be eligible for a full-time renewal award if
he or she becomes a full-time student.
(c) Cal Grant Program awards shall be awarded without regard to
race, religion, creed, sex, or age.
(d) No applicant shall receive more than one type of Cal Grant
Program award concurrently. Except as provided in Section 69440, no
applicant shall:
(1) Receive one or a combination of Cal Grant Program awards in
excess of the amount equivalent to the award level for a total of
four years of full-time attendance in an undergraduate program,
except as provided in Section 69433.6.
(2) Have obtained a baccalaureate degree prior to receiving a Cal
Grant Program award, except as provided in Section 69440.
(e) A Cal Grant Program award, except as provided in Section
69440, may only be used for educational expenses of a program of
study leading directly to an undergraduate degree or certificate, or
for expenses of undergraduate coursework in a program of study
leading directly to a first professional degree, but for which no
baccalaureate degree is awarded.
(f) Commencing in 1999, the commission shall, for students who
accelerate college attendance, increase the amount of award
proportional to the period of additional attendance resulting from
attendance in classes that fulfill requirements or electives for
graduation during summer terms, sessions, or quarters. In the
aggregate, the total amount a student may receive in a four-year
period may not be increased as a result of accelerating his or her
progress to a degree by attending summer terms, sessions, or
quarters.
(g) The commission shall notify Cal Grant award recipients of the
availability of funding for the summer term, session, or quarter
through prominent notice in financial aid award letters, materials,
guides, electronic information, and other means that may include, but
not necessarily be limited to, surveys, newspaper articles, or
attachments to communications from the commission and any other
published documents.
(h) The commission may require, by the adoption of rules and
regulations, the production of reports, accounting, documents, or
other necessary statements from the award recipient and the college
or university of attendance pertaining to the use or application of
the award.
(i) A Cal Grant Program award may be utilized only at a qualifying
institution.

69433.6. (a) Cal Grant A awards and Cal Grant B awards may be
renewed for a total of the equivalent of four years of full-time
attendance in an undergraduate program provided that financial need
continues to exist. Commencing with the 2001-02 academic year, the
total number of years of eligibility for grants pursuant to this
section shall be based on the student's educational level in his or
her course of study as designated by the institution of attendance
when the recipient initially receives payment for a grant.
(b) For a student enrolled in an institutionally prescribed
five-year undergraduate program, Cal Grant A awards and Cal Grant B
awards may be renewed for a total of five years of full-time
attendance, provided that financial need continues to exist.
(c) (1) A Cal Grant Program award recipient who has completed a
baccalaureate degree, and who has been admitted to and is enrolled in
a program of professional teacher preparation at an institution
approved by the California Commission on Teacher Credentialing is
eligible for, but not entitled to, renewal of a Cal Grant Program
award for an additional year of full-time attendance, if financial
need continues to exist.
(2) Payment for an additional year is limited to only those
courses required for an initial teaching authorization. An award made
under this subdivision may not be used for other courses.
(d) A student's Cal Grant renewal eligibility shall not have
lapsed more than 15 months prior to the payment of an award for
purposes of this section.

69433.7. The commission shall adopt regulations necessary to
implement this chapter. Notwithstanding any other provision of law,
the commission may adopt emergency regulations pursuant to Section
11346.1 of the Government Code in order to ensure that the program
enacted by this chapter may function in its first academic year.

69433.8. An award under this chapter does not guarantee admission
to an institution of higher education or admission to a specific
campus or program.

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), except as provided in subdivision (d) of
Section 69436, at the time of high school graduation or its
equivalent, be a resident of California.
(2) A student who does not meet the requirements for a high school
diploma or its equivalent in the academic year immediately preceding
the award year, but who meets the requirements for a high school
diploma or its equivalent by December 31 of the academic year
immediately following the date of application, satisfies any
requirement for obtaining high school graduation or its equivalent
for the purposes of this chapter as of the first day of the academic
term immediately following the term in which the requirements for the
high school diploma or its equivalent are met.
(3) No student shall receive an award for a term that begins prior
to satisfying any requirement for obtaining high school graduation
or its equivalent.