BILL NUMBER: SB 451CHAPTERED BILL TEXT CHAPTER 627 FILED WITH SECRETARY OF STATE OCTOBER 8, 2011 APPROVED BY GOVERNOR OCTOBER 8, 2011 PASSED THE SENATE SEPTEMBER 7, 2011 PASSED THE ASSEMBLY AUGUST 25, 2011 AMENDED IN ASSEMBLY JULY 14, 2011 AMENDED IN ASSEMBLY JUNE 30, 2011 INTRODUCED BY Senator Price FEBRUARY 16, 2011 An act to amend Section 69439 of the Education Code, relating to student financial aid. LEGISLATIVE COUNSEL'S DIGEST SB 451, Price. Student financial aid: Cal Grant C awards. Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Act, establishes the Cal Grant C Program under the administration of the Student Aid Commission and establishes eligibility requirements for awards under this program. The act requires that a Cal Grant C award be used only for occupational or technical training, as defined, in a course of not less than 4 months. The act requires the commission, after consultation with state and federal agencies, to determine the areas of occupational or technical training for which Cal Grant C awards shall be awarded. This bill would require the Student Aid Commission to develop, and regularly review and update at least every 5 years, the areas of occupational or technical training for which students may utilize Cal Grant C awards. The bill would require the commission to give priority in granting the awards to students pursuing occupational or technical training in areas that meet specified criteria. The bill would require a determination by the commission for a subsequent award year that the program under which a Cal Grant C was initially awarded is no longer deemed to receive priority to not affect an award recipient's renewal. The bill would require the commission to publish, and retain, on its Internet Web site, a current list of the areas of occupational or technical training meeting those specified criteria. The bill would require the commission to examine the graduation rates and job placement data of eligible programs and to give priority to students seeking to enroll in programs that rate high in those areas. The bill would require the Legislative Analyst's Office to submit a report to the Legislature, containing specified data on the outcomes of the Cal Grant C Program, on or before April 1, 2015, and on or before April 1 of each odd-numbered year thereafter. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69439 of the Education Code is amended to read: 69439. (a) A Cal Grant C award shall be utilized only for occupational or technical training in a course of not less than four months. There shall be the same number of Cal Grant C awards each year as were made in the 2000-01 fiscal year. The maximum award amount and the total amount of funding shall be determined each year in the annual Budget Act. (b) "Occupational or technical training" means that phase of education coming after the completion of a secondary school program and leading toward recognized occupational goals approved by the commission. (c) The commission may use criteria it deems appropriate in selecting students with occupational talents to receive grants for occupational or technical training. (d) The Cal Grant C award recipients shall be eligible for renewal of their grants until they have completed their occupational or technical training in conformance with terms prescribed by the commission. A determination by the commission for a subsequent award year that the program under which a Cal Grant C was initially awarded is no longer deemed to receive priority shall not affect an award recipient's renewal. In no case shall the grants exceed two calendar years. (e) Cal Grant C awards shall be for institutional fees, charges, and other costs, including tuition, plus training-related costs, such as special clothing, local transportation, required tools, equipment, supplies, and books. In determining the amount of grants and training-related costs, the commission shall take into account other state and federal programs available to the applicant. (f) (1) To ensure alignment with the state's dynamic economic needs, the commission, in consultation with appropriate state and federal agencies, shall develop areas of occupational and technical training for which students may utilize Cal Grant C awards. The commission, if necessary, may also consult with nongovernmental stakeholders that develop or provide workforce training or employ graduates of occupational and technical training programs for this purpose. (2) The areas of occupational and technical training developed pursuant to paragraph (1) shall be regularly reviewed and updated at least every five years, beginning in 2012. (3) The commission shall 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: (A) High employment need. (B) High employment salary or wage projections. (C) High employment growth. (g) The commission shall determine areas of occupational or technical training that meet the criteria described in paragraph (3) of subdivision (f) in consultation with the Employment Development Department using projections available through the Labor Market Information Data Library. The commission shall publish, and retain, on its Internet Web site a current list of the areas of occupational or technical training that meet the criteria described in paragraph (3) of subdivision (f), and update this list as necessary. (h) The commission shall examine the graduation rates and job placement data of eligible programs. Commencing with the 2014-15 academic year, the commission shall give priority to Cal Grant C applicants seeking to enroll in programs that rate high in graduation rates and job placement data. (i) (1) Notwithstanding Section 10231.5 of the Government Code, the Legislative Analyst's Office shall submit a report to the Legislature on the outcomes of the Cal Grant C Program on or before April 1, 2015, and on or before April 1 of each odd-numbered year thereafter. This report shall include, but not necessarily be limited to, information on all of the following: (A) The age, gender, and segment of attendance for recipients in two prior award years. (B) The occupational and technical training program categories prioritized. (C) The number and percentage of students who received selection priority as defined in paragraph (3) of subdivision (f). (D) The extent to which recipients in these award years were successfully placed in jobs that meet local, regional, or state workforce needs. (2) For the report due on or before April 1, 2015, the Legislative Analyst's Office shall include data for two additional prior award years and shall compare the mix of occupational and technical training programs and institutions in which Cal Grant C recipients enrolled before and after implementation of subdivision (f). (3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.