SECTIONS 69450-69460 - California Statutes

EDUCATION CODE

SECTION 69450-69460

69450. (a) It is the intent of the Legislature, in enacting this
article, to enhance the long-term policy of the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program and the state'
s historic commitment, as stated in Section 66021.2, of providing
educational opportunity by ensuring all students with financial need
with access to, and choice of, an institution of higher education.
(b) It is further the intent of the Legislature that, pursuant to
this article, the commission implement a pilot alternative delivery
system within the Cal Grant Program that would provide program
functions consistent with access to, and choice of, institutions for
students with financial need. The pilot alternative delivery system
should take advantage of, and not impair, the efficiencies of the
recent Internet-based improvements to the commission's Grant Delivery
System by allowing qualifying institutions to elect to award Cal
Grant awards pursuant to Article 2 (commencing with Section 69434),
Article 3 (commencing with Section 69435), and Article 4 (commencing
with Section 69436) for students admitted to those institutions, and
by ensuring that those qualifying institutions function as a one-stop
shop for financial aid information by providing assistance to
students, parents, and high school and community college counselors
seeking information about the Cal Grant Program and other student
financial aid.
(c) It is the intent of the Legislature that awards and services
to students not be disrupted in the implementation of this article.

69452. (a) The commission shall adopt emergency regulations by July
1, 2010, establishing the pilot alternative Cal Grant delivery
system to allow a qualifying institution to elect to administer Cal
Grant awards under the Cal Grant A Entitlement Program (Article 2
(commencing with Section 69434)), the Cal Grant B Entitlement Program
(Article 3 (commencing with Section 69435)), and the California
Community College Transfer Cal Grant Entitlement Program (Article 4
(commencing with Section 69436)). The regulations shall be consistent
with this article.
(b) The commission shall convene an advisory task force to assist
in understanding the technical and data requirements necessary for
implementation of the pilot program. The task force shall be convened
within 15 days of the effective date of this section. The task force
shall be composed of commission staff and representatives of
institutions interested in participating in the pilot program.
(c) To ensure unobstructed student access to Cal Grant awards, the
alternative delivery system shall not impair the commission's
ability to keep track of all students as long as they may be eligible
for any Cal Grant awards and other student financial aid
administered by the commission. The pilot alternative delivery system
shall not impair the commission's ability to communicate with, and
make awards to, students if they are eligible for Cal Grant awards.
(d) To ensure accountability for, and integrity of, state funds,
the alternative delivery system shall not impair the commission's
ability to do any of the following:
(1) Pay Cal Grant awards.
(2) Disburse funds to qualifying institutions.
(3) Confirm Cal Grants awarded by qualifying institutions.
(4) Require qualifying institutions to conform Cal Grants they
have awarded to the requirements of this chapter.
(5) Require qualifying institutions to provide student and Cal
Grant award information to the commission at times deemed necessary
by the commission.
(e) The commission may adopt any other requirements that are
necessary to ensure that the alternative delivery system provides
students with financial need with access to, and choice of, an
institution of higher education.

69453. The commission shall not implement the pilot alternative
delivery system established pursuant to Section 69452 until at least
30, but no more than 35, qualifying institutions have committed to
participating in the alternative delivery system and to paying the
costs associated with developing and implementing the alternative
delivery system. The commission shall not expend any resources on the
development and implementation of the pilot alternative delivery
system.

69454. (a) (1) A qualifying institution electing to participate in
the pilot alternative delivery system shall submit an application to
the commission acknowledging that the qualifying institution
satisfies the requirements for the pilot alternative delivery system
and will maintain compliance with those requirements as long as it
continues to award Cal Grant awards.
(2) The commission shall review, and may approve, the application
if the commission determines that the institution complies with all
applicable requirements.
(3) A qualifying institution may not award Cal Grants until the
commission has approved its application.
(4) The Regents of the University of California, the Board of
Trustees of the California State University, and the Board of
Governors of the California Community Colleges shall select
qualifying campuses from within their respective segments to apply
for participation in the pilot program. For each segment, not more
than 25 percent of the total number of campuses within the respective
segment may participate in the pilot program.
(b) In addition to complying with the regulations adopted for
participation in the pilot program, a qualifying institution electing
to participate in the pilot alternative delivery system shall do all
of the following:
(1) Make eligibility determinations consistent with the
requirements of the Cal Grant Program and requirements adopted by the
commission.
(2) Inform the student of his or her Cal Grant award before the
student is required to make an enrollment decision for the following
academic year. The award shall be made as part of the qualifying
institution's complete financial aid award so that the student is
aware of all the student aid that the he or she is eligible to
receive.
(3) Provide notice to the student that he or she may be eligible
to use the Cal Grant award at another qualifying institution to which
he or she is admitted.
(c) A qualifying institution electing to participate in the pilot
alternative delivery system shall report all of the following to the
commission in a form, and within the time, determined by the
commission to maximize student access to Cal Grant awards:
(1) Information necessary to determine Cal Grant funding
projections for the State Budget.
(2) Aggregate information on applicants for Cal Grant awards and
students who have been awarded Cal Grant awards, by income level,
gender, age, and ethnicity.
(3) Aggregate information on students who have been awarded Cal
Grant awards, but have withdrawn from their qualifying institutions.
(4) Aggregate information on students who have been awarded Cal
Grant awards but for whom awards have not been disbursed.
(5) Information on the total amount of institutional aid available
for students at the qualifying institution, the total number of
recipients of institutional aid, the total amount of institutional
aid provided to recipients of Cal Grant awards at the qualifying
institution, and the amount of institutional aid awarded to each
student receiving a Cal Grant award.
(6) Information on the amount of other financial aid, including,
but not necessarily limited to, fee waivers, federal loans, private
loans, and work study awarded to each student receiving a Cal Grant
award.
(7) Any other information determined by the commission to be
necessary to fulfill its responsibilities under the Cal Grant
Program.
(d) (1) A qualifying institution electing to participate in the
pilot alternative delivery system shall function as a one-stop shop
for student financial aid by providing assistance to all students,
parents, and high school counselors inquiring or seeking information
about Cal Grant awards and other student financial aid, including
information about the availability of, requirements for, and the
amount of, Cal Grant awards that may be available at other qualifying
institutions in all segments of postsecondary education. The
qualifying institution may also provide comparable information on
federal and other student financial aid.
(2) A qualifying institution that does not comply with this
subdivision is not eligible to participate in the alternative
delivery system pilot program.

69456. All costs associated with developing, implementing,
maintaining, and improving the pilot alternative delivery system
shall be paid by the qualifying institutions that elect to
participate in the pilot alternative delivery system.

69458. (a) Participation in the pilot alternative delivery system
pursuant to this article is voluntary. Any local agency electing to
participate in the pilot alternative delivery system is deemed to
have acknowledged and agreed that its participation is voluntary and
does not constitute a cost that is reimbursable under Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.
(b) All costs associated with a qualifying institution's election
to participate in the pilot alternative delivery system shall be paid
by the qualifying institution and, if the qualifying institution is
a public institution, shall not require any additional state funds.

69460. (a) On or before January 10, 2012, the Legislative Analyst's
Office shall report to the Legislature and the Governor on the
implementation and outcomes of the first award cycle under the pilot
program. The report shall assess the extent to which the pilot
program resulted in improved Cal Grant delivery to students, parents,
and high school and financial aid counselors; administrative
efficiencies; and sufficient state oversight. The report shall also
identify any challenges or barriers to expansion of the alternative
Cal Grant delivery system, as well as any associated information
technology challenges that may need to be addressed or changes that
may be required.
(b) Consistent with the criteria in subdivision (a), the Student
Aid Commission may provide a report to the Legislature and the
Governor.