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California Association of Private Postsecondary Schools

A.B. 1976 - State Financial Aid

05/01/2014

Sponsor: Assemblymember Sharon Quirk-Silva (D)

Summary: Increases to 50,000 the number of Competitive Cal Grant A and B awards that may be granted in an academic year, commencing with the 2015–16 academic year. Authorizes the Student Aid Commission to use data from the three award years immediately preceding an award year in order to estimate the maximum number of award offers that the commission may make without the number of acceptances exceeding 50,000.

Authorizes the commission to exceed the 50,000 award limit in an academic year when the number of acceptances exceeds 50,000, but would further require, immediately subsequent to an academic year when the number of awards exceeds 50,000, that the commission reduce the number of awards made by the number by which the awards made in the previous academic year exceeded 50,000.

Requires, in granting awards for the 2015–2016 award year, the commission do all of the following:
(1) Establish a target of 50,000 awards to be paid.
(2) Estimate the take-rate for awards by dividing the total number of awards paid by the total number of offers made during the three award years immediately preceding the 2015–2016 award year.
(3) Estimate the number of award offers that the commission may make to achieve the target for awards paid by dividing 50,000 by the take-rate estimated. 

Requires, in granting awards under this article for the 2016–2017 award year and subsequent award years, the commission do all of the following:
(1) Calculate a target for awards to be paid by subtracting the number of awards paid in the previous award year from the target for awards paid in the previous award year and adding the result to 50,000.
(2) Estimate the take-rate for awards by dividing the total number of awards paid by the total number of offers made during the three award years immediately preceding that award year.
(3) Estimate the number of award offers that the commission may make to achieve the target for awards paid calculated by dividing the target by the take-rate estimated

Amendment #1 (4/3/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1951-2000/ab_1976_bill_20140403_amended_asm_v98.pdf

Introduced: http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1951-2000/ab_1976_bill_20140219_introduced.pdf

Status: Introduced 2/19/2014. Referred to Assembly Committee on Higher Education 3/3/2014. Hearing held, reported 4/1/2014. Amended 4/3/2014. Re-referred to Committee on Appropriations 4/7/2014. Hearing held 4/30/2014.

Outlook: The bill was determined to have a significant fiscal impact by the Assembly Committee on Appropriations and placed in its suspense file for further consideration at a later date. The suspense file is a function of the fiscal committee in both chambers. Per Joint Rule 61(b)(8), the committee has by May 23 to act on this measure.

This measure was re-referred to the Assembly Committee on Appropriations for consideration. As this measure contains fiscal provisions it must be approved by the Appropriations Committee before it may be considered by the full chamber. Per Joint Rule 61(b)(6), the committee has by May 9 to act on this measure.

This measure was withdrawn by the sponsor and amended. The author's amendment spells out requirements of the Student Aid Commission when awarding aid.

During the April 1 Assembly Committee on Higher Education hearing, the committee reported favorably on this measure by a 10-0 vote. The sponsor introduced the measure as an effort to address the awarding of Cal Grants at a lower level than the grant fund is capable. The sponsor expressed her want for the Cal Grant program to aid as many students as the funds allocated to the Grant program makes possible. A representative of the Institute for College Access and Success testified in favor.

The sponsor is a member of the majority party but has not garnered the support of any cosponsors. The Democratic Party controls both legislative chambers as well as the Office of Governor.

*Information provided by www.stateside.com