Florida 2022 2022 Regular Session

Florida House Bill H0823 Analysis / Analysis

Filed 02/08/2022

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h0823c.HEA 
DATE: 2/8/2022 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS  
 
BILL #: CS/HB 823    Florida Postsecondary Student Assistance Grant Program 
SPONSOR(S): Post-Secondary Education & Lifelong Learning Subcommittee, Tuck and others 
TIED BILLS:  None IDEN./SIM. BILLS: SB 1284 
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
1) Post-Secondary Education & Lifelong Learning 
Subcommittee 
17 Y, 0 N, As CS Wolff Kiner 
2) Higher Education Appropriations Subcommittee 13 Y, 0 N Peters Smith 
3) Education & Employment Committee   
SUMMARY ANALYSIS 
The bill authorizes additional postsecondary institutions to participate in the Florida Postsecondary Student 
Assistance Grant Program (FSAG Postsecondary). Specifically, the bill adds institutions that are competency-
based nonprofit virtual postsecondary institutions accredited by a member of the Council of Regional 
Accrediting Commissions and created by the governors of several states, and which employ a Florida 
chancellor responsible for state and local workforce coordination and financial aid reporting to the Department 
of Education. 
 
The bill authorizes a full-time degree seeking student who is accepted at the competency-based nonprofit 
virtual postsecondary institution to be eligible to receive an FSAG Postsecondary grant.  
 
The bill does not have a fiscal impact. See Fiscal Comments. 
 
The bill provides an effective date of July 1, 2022. 
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FULL ANALYSIS 
I.  SUBSTANTIVE ANALYSIS 
 
A. EFFECT OF PROPOSED CHANGES: 
Present Situation 
 
Florida Student Assistance Grant Program 
 
The Florida Student Assistance Grant (FSAG) Program, created in 1972, is Florida’s largest need-
based grant program.
1
 The FSAG Program consists of four student financial aid programs: 
 
 FSAG Public;
2
 
 FSAG Public Postsecondary Career Education;
3
 
 FSAG Private;
4
 and 
 FSAG Postsecondary.
5
 
 
The FSAG Program provides state student assistance grants to degree- and certificate-seeking 
undergraduate Florida residents who demonstrate substantial financial need, meet general eligibility 
requirements
6
 and qualifications specific to each program, and are enrolled in participating 
postsecondary institutions.
7
  
 
A FSAG award, in combination with other financial aid, may not exceed a student’s demonstrated 
financial need.
8
 Financial need is determined by the institutional cost of attendance, less the Expected 
Family Contribution (EFC)
9
 as determined by the Free Application for Federal Student Aid (FAFSA), 
less aid from other sources such as federal grants, state grants and institutional aid (not including 
loans).
10
 The program is administered by participating institutions in accordance with state board rule.
11
  
 
Florida Postsecondary Student Assistance Grant Program  
 
The Florida Postsecondary Student Assistance Grant Program (FSAG Postsecondary) is available to 
students who attend the following eligible independent institutions
12
: 
 
                                                
1
 Florida Department of Education, Office of Student Financial Assistance, Annual Report to the Commissioner 2019-20, at 11, 
available at https://www.floridastudentfinancialaidsg.org/pdf/annualreportcurrent.pdf.; see also Florida Department of Education, 
Office of Student Financial Assistance, Florida Student Assistance Grant Fact Sheet (2021-22) available at,  
https://www.floridastudentfinancialaidsg.org/PDF/factsheets/FSAG.pdf.  
2
 Section 1009.50, F.S. 
3
 Section 1009.505, F.S. 
4
 Section 1009.51, F.S. 
5
 Section 1009.52, F.S. 
6
 Section 1009.40, F.S. 
7
 Sections 1009.50, 1009.505, 1009.51, and 1009.52, F.S. 
8
 Florida Department of Education, Office of Student Financial Assistance, Annual Report to the Commissioner 2019-20, at 11, 
available at https://www.floridastudentfinancialaidsg.org/pdf/annualreportcurrent.pdf. 
9
 Expected Family Contribution (EFC) is calculated according to a formula established by law which considers a student’s family size, 
number of family members who will attend college or career school during the year, the family’s taxed and untaxed income, assets, 
and benefits, such as unemployment for Social Security. U.S. Department of Education, Federal Student Aid, How Aid is Calculated, 
https://studentaid.gov/complete-aid-process/how-calculated (last visited Jan. 11, 2022). 
10
 Id. 
11
 Sections 1009.50(5), 1009.505(5), 1009.51(5), and 1009.52(6), F.S.; Postsecondary educational administrative responsibilities for 
state student aid and tuition assistance programs are outlined in rule 6A-20.002, F.A.C. 
12
 Section 1009.52(2)(a) and (b), F.S.  STORAGE NAME: h0823c.HEA 	PAGE: 3 
DATE: 2/8/2022 
  
 A private nursing diploma school which is approved by the Florida Board of Nursing, is located 
in Florida, and administers the Pell Grant;
13
 
 An independent college or university located in Florida, which is licensed by the Commission for 
Independent Education (CIE), offers degrees, administers the Pell Grant and does not 
participate in the FSAG Private grant;
14
 or 
 An aviation maintenance school that is located in this state, certified by the Federal Aviation 
Administration, and licensed by the CIE.
15
 
 
An FSAG Postsecondary grant is only awarded to full-time degree and aviation maintenance-certificate 
seeking students (enrolled in a minimum of 12 credit hours per term, or the equivalent)
16
 who meet 
general requirements for student eligibility.
17
 A student applying for a FSAG Postsecondary grant must 
apply for the Pell Grant, and any federal aid provided is considered when assessing financial resources 
available to the student.
18
 
 
The total FSAG Postsecondary grant a student receives must be for the amount of demonstrated 
unmet need for tuition and fees and may not exceed the maximum annual award amount specified in 
the General Appropriations Act (GAA).
19
 For fiscal year (FY) 2021-2022, the GAA established a 
maximum award amount of $3,260 to any student from the FSAG Postsecondary.
20
 A student is not 
eligible for a FSAG Postsecondary grant if demonstrated unmet need is less than $200.
21
 Priority of 
grant money may be given to students who are within one semester of completing a degree or 
certificate program and an institution is prohibited from awarding a grant to a student whose EFC 
exceeds one and one-half times the maximum Pell Grant-eligible family contribution.
22
 
 
To maintain eligibility in the FSAG Postsecondary grant, a student must earn a minimum institutional 
cumulative grade point average (GPA) of 2.0 on a 4.0 scale for 12 credit hours for each term the award 
is received.
23
 A student is eligible to receive an FSAG Postsecondary grant for nine semesters or 14 
quarters of full-time enrollment.
24
 A student receiving an FSAG Postsecondary grant to attend an 
eligible aviation maintenance school is eligible for an award of up to 110 percent of the number of clock 
hours required to complete the program in which the student is enrolled.
25
 
 
 
 
 
 
 
                                                
13
 Section 1009.52(2)(a)1., F.S.; see also Florida Department of Education, Office of Student Financial Assistance, 2021-22 
Institutional Eligibility Program Requirements for Participation in State Scholarship & Grant Programs, at 2, available at 
https://www.floridastudentfinancialaidsg.org/pdf/Institution_Eligibility_Requirements.pdf.  
14
 Section 1009.52(2)(a)2., F.S. 
15
 Section 1009.52(2)(b), F.S. 
16
 Florida Department of Education, Office of Student Financial Assistance, Florida Student Assistance Grant Fact Sheet (2021-22), at 
2, available at, https://www.floridastudentfinancialaidsg.org/PDF/factsheets/FSAG.pdf. 
17
 Section 1009.40, F.S., see also 6A-20.033(1), F.A.C. 
18
 Section 1009.52(2)(d), F.S. 
19
 Section 1009.52(3), F.S. 
20
 Specific Appropriations 6 and 72, s. 2, ch. 2021-36, L.O.F. 
21
 Section 1009.52(2), F.S. 
22
 Section 1009.52(2)(e), F.S. An institution may not impose additional criteria to determine a student’s eligibility to receive a grant 
award. 
23
 Section 1009.40(1)(b)1., F.S. 
24
 Section 1009.52(2)(c), F.S.  
25
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DATE: 2/8/2022 
  
FSAG Postsecondary Reporting and Distribution Requirements 
 
Each participating institution determines an applicant’s eligibility and award amount,
26
 and reports to 
the Department of Education (DOE) the students who are eligible for the FSAG Postsecondary for each 
academic term, including necessary demographic and eligibility date for such students.
27
 
 
The funds appropriated for the FSAG Postsecondary must be distributed to eligible institutions in 
accordance with a formula approved by the State Board of Education (SBE).
28
 The formula must 
consider at least the prior year’s distribution of funds and the number of eligible applicants who did not 
receive awards.
29
 The formula must account for changes in the number of eligible students across all 
student assistance grant programs.
30
 Institutions must comply with disbursement and remittance 
requirements specified in law.
31
 
 
Each institution that receives money through the FSAG Postsecondary must prepare a biennial report, 
which includes a financial audit of the institution’s administration of the program and a complete 
account of moneys for the program, submitted to the DOE by March 1 every other year.
32
 The DOE 
may conduct its own annual or biennial audit of an institution’s administration of the program and its 
allocated funds in lieu of the required biennial report and financial audit report.
33
 The DOE may 
suspend or revoke an institution’s eligibility to receive future moneys for the program or request a 
refund of any moneys overpaid to the institution for the program if the department finds 
noncompliance.
34
 
 
In 2020-2021, the FSAG Postsecondary grant disbursed $5.8 million dollars to 4,990 students.
35
 The 
average student award amount was $1,172.16.
36
 
 
Duties of Institutions Receiving State Funds for Tuition Assistance Programs 
 
In 2021, the Legislature established additional requirements for postsecondary educational institutions 
that receive state funds for state financial aid and tuition assistance programs.
37
 The new requirements 
include:
38
 
 Maintenance of complete, accurate, and auditable records documenting the institution’s 
administration of state financial aid and tuition assistance funds. 
 Verification of student eligibility with the DOE each academic term. 
 Timely completion of reporting requirements implemented by the DOE and the Legislature. 
 Retention of records for the later of 5 years or until the completion of an audit (including the 
resolution of any audit exceptions). 
 
The DOE is required to adopt rules implementing these requirements and are permitted to adopt higher 
standards.
39
 Institutions that fail to comply must be placed on probationary status and may be 
suspended or revoked if they fail to provide required audits, fail to resolve audit findings, or fail to timely 
provide required reports.
40
 
                                                
26
 Florida Department of Education, Office of Student Financial Assistance, Florida Student Assistance Grant Fact Sheet (2021-22), at 
4, available at, https://www.floridastudentfinancialaidsg.org/PDF/factsheets/FSAG.pdf. 
27
 Section 1009.52(2)(f), F.S. 
28
 Section 1009.52(4)(a), F.S. 
29
 Id. 
30
 Id. 
31
 Id. at (4)(d). 
32
 Id. at (4)(e). 
33
 Id.  
34
 Id. 
35
 Florida Department of Education, Office of Student Financial Assistance, End-of-Year Report 2020-21 Florida Student Assistance 
Grant Postsecondary, at 1, available at https://www.floridastudentfinancialaidsg.org/PDF/PSI/FSAGPO_2020_2021.pdf. 
36
 Id. 
37
 Chapter 2021-232, L.O.F. 
38
 Section 1009.46(1), F.S. 
39
 Section 1009.46(2), F.S. 
40
 Section 1009.46(3), F.S.  STORAGE NAME: h0823c.HEA 	PAGE: 5 
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Council of Regional Accrediting Commissions 
 
The Council of Regional Accrediting Commissions (C-RAC) represents the seven organizations 
responsible for the accreditation
41
 of approximately 3,000 of the nation’s colleges and universities: 
 
 Accrediting Commission for Community and Junior Colleges; 
 Higher Learning Commission; 
 Middle States Commission on Higher Education; 
 New England Commission of Higher Education; 
 Northwest Commission on Colleges and Universities; 
 Southern Association of Colleges and Schools Commission on Colleges (SACSCOC); and 
 Western Association of Schools and Colleges (WASC) Senior College and University 
Commission.
42
 
 
As of 2017, C-RAC members help assure quality at 2,866 Title IV institutions in 3,524 locations across 
the United States.
43
 
 
Florida Members 
 
SACSCOC accredits 74 Florida public and private colleges and universities,
44
 including 12 universities 
that make up the State University System of Florida, 28 institutions in the Florida College System, and 
34 private colleges and universities. 
 
Effect of Proposed Changes 
 
The bill authorizes additional institutions to participate in the FSAG Postsecondary. Specifically, the bill 
adds institutions that are a competency-based nonprofit virtual postsecondary institution that is 
accredited by a member of the Council of Regional Accrediting Commissions, was created by the 
governors of several states, and which employs a Florida chancellor responsible for state and local 
workforce coordination and financial aid reporting. 
 
The bill requires FSAG Postsecondary grants awarded by such eligible institutions to be made only to 
full-time degree seeking students accepted at the competency-based, nonprofit virtual institution. 
 
Allowing students who have been accepted at a competency-based nonprofit virtual postsecondary 
institution to receive a FSAG Postsecondary grant may allow additional students to receive the grant. 
However, an institution meeting the expanded eligibility criteria to administer such grants may be 
required to translate student competency attainment and student clock hour program enrollment to 
meet student eligibility requirements for a renewal award under the FSAG Postsecondary program, 
                                                
41
 Defined as “a process of external review used by the higher education community to assure quality and spur ongoing improvement.” 
Council of Regional Accrediting Commissions, Accreditation 101, https://www.c-rac.org/accreditation-101 (last visited Jan. 11, 
2022). Accrediting commissions are private, nonprofit organizations comprised of college and university members, with commissions 
and visiting teams made up of volunteers. Id. The U.S. Department of Education lists four primary functions of accreditation:  
1. Assess the quality of academic programs at institutions of higher education.  
2. Create a culture of continuous improvement of academic quality at colleges and universities and stimulate a general raising 
of standards among educational institutions.  
3. Involve faculty and staff comprehensively in institutional evaluation and planning.  
4. Establish criteria for professional certification and licensure and for upgrading courses offering such preparation.  
U.S. Department of Education, Accreditation in the United States (Feb. 4, 2021), available at 
https://www2.ed.gov/admins/finaid/accred/accreditation_pg2.html#U.S.    
42
 Council of Regional Accrediting Commissions, Who We Are, https://www.c-rac.org/copy-of-about-us (last visited Jan. 11, 2022).   
43
 Council of Regional Accrediting Commissions, Quick Facts, https://www.c-rac.org/quick-facts (last visited Jan. 11, 2022).   
44
 Southern Association of Colleges and Schools Commission on Colleges, SACSCOC Accredited and Candidate List (July 2021), 
available at https://sacscoc.org/app/uploads/2019/11/Institutionswebmemlist.pdf.     STORAGE NAME: h0823c.HEA 	PAGE: 6 
DATE: 2/8/2022 
  
including a minimum 2.0 cumulative grade point average (GPA) and completion of 12 credits per 
term.
45
  
 
B. SECTION DIRECTORY: 
Section 1. Amends s. 1009.52, F.S.; revising the eligibility requirements for Florida postsecondary 
student assistance grants. 
 
Section 2. Provides an effective date of July 1, 2022. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
None. 
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
None. 
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 
The bill may provide a cost savings to eligible students enrolled in postsecondary education institutions 
now authorized to participate in the FSAG Postsecondary Grant Program. 
 
D. FISCAL COMMENTS: 
Expanding eligibility for the FSAG Grant Program may affect how funds are allocated across the 
several Florida student assistance grants,
46
 including decreased availability of funds for institutions and 
students already eligible for grants. 
 
III.  COMMENTS 
 
A. CONSTITUTIONAL ISSUES: 
 
 1. Applicability of Municipality/County Mandates Provision: 
None. This bill does not appear to affect county or municipal governments. 
 
 2. Other: 
None. 
 
B. RULE-MAKING AUTHORITY: 
                                                
45
 Florida Department of Education, Office of Student Financial Assistance, Florida Student Assistance Grant Fact Sheet (2021-22), 
at 2, available at, https://www.floridastudentfinancialaidsg.org/PDF/factsheets/FSAG.pdf  
46
 Section 1009.52(4)(a) and (b), F.S.  STORAGE NAME: h0823c.HEA 	PAGE: 7 
DATE: 2/8/2022 
  
None. 
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES 
On January 18, 2022, the Post-Secondary Education & Lifelong Learning Subcommittee adopted one 
amendment and reported the bill favorably as a committee substitute. The amendment provides that the 
competency-based nonprofit virtual postsecondary institution that is accredited by a member of the Council 
of Regional Accrediting Commissions and is created by the governors of several states referenced in the 
bill must have a Florida chancellor responsible for state and local workforce coordination and meet 
Florida’s postsecondary education institution financial aid reporting requirements. 
 
The bill analysis is drafted to the committee substitute adopted by the Post-Secondary Education & 
Lifelong Learning Subcommittee.