Article 1 - General Provisions

California Education Code — §§ 69430-69433.9

Sections (16)

Added by Stats. 2000, Ch. 403, Sec. 4. Effective September 12, 2000. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

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

Amended by Stats. 2023, Ch. 50, Sec. 6. (SB 117) Effective July 10, 2023. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)(1) Cal Grant Program awards shall be known as “Cal Grant A Entitlement Awards,” “Cal Grant B Entitlement Awards,” “California Community College Expanded Entitlement Awards,” “California Community College Transfer Entitlement Awards,” “Competitive Cal Grant A and B Awards,” “Cal Grant C Awards,” and “Cal Grant T Awards.”

(2)For purposes of this section, “associate degree for transfer commitment” means a commitment by an independent institution of higher education that chooses to accept the California Community College associate degree for transfer pursuant to Section 66749.6.

(b)Maximum award amounts for students at independent institutions of higher education, private

for-profit postsecondary educational 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.

(c)(1) Notwithstanding subdivision (b), and subdivision (c) of Section 66021.2, commencing with the 2013–14 award year, the maximum tuition award amounts for Cal Grant A and B awards for students attending private for-profit postsecondary educational institutions shall be four thousand dollars ($4,000).

(2)Notwithstanding paragraph (1) of this subdivision, subdivision (b) of this section, and subdivision (c) of Section 66021.2, commencing with the 2018–19 award year, the maximum tuition award amounts for Cal Grant A and B awards for students attending private for-profit postsecondary

educational institutions accredited by the Western Association of Schools and Colleges shall be nine thousand eighty-four dollars ($9,084) for new recipients, unless otherwise specified in the Budget Act of 2018.

(d)Notwithstanding subdivision (b) of this section, and subdivision (c) of Section 66021.2, the maximum tuition award amounts for Cal Grant A and B awards for students attending independent institutions of higher education shall be as follows:

(1)For the 2015–16 to 2020–21 award years, inclusive, nine thousand eighty-four dollars ($9,084) for new recipients.

(2)For the 2021–22 award year, nine thousand two hundred twenty dollars ($9,220) for new recipients.

(3)For the 2022–23

and 2023–24 award years, nine thousand three hundred fifty-eight dollars ($9,358) for new recipients.

(4)For the 2024–25 award year and each year thereafter:

(A)If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year meets or exceeds the target specified in subdivision (h), nine thousand three hundred

fifty-eight dollars ($9,358) for new recipients.

(B)If the number of new unduplicated transfer students accepted by independent institutions of higher education who have been given associate degree for transfer commitments in the prior award year is less than the target specified in subdivision (h), eight thousand fifty-six dollars ($8,056) for new recipients.

(e)(1) The renewal award amount for a student whose initial award is subject to a maximum award amount specified in this section shall be calculated pursuant to paragraph (2) of subdivision (a) of Section 69433.

(2)Notwithstanding paragraph (1) of this subdivision, and paragraph (2) of subdivision (a) of Section 69433, the maximum tuition award amounts for Cal Grant A and B awards for students attending independent institutions of

higher education shall be nine thousand three hundred fifty-eight dollars ($9,358) for renewal recipients, if the student first received a new award before the 2022–23 award year.

(f)It is the intent of the Legislature that independent institutions of higher education make a good faith effort to make the process for transferring from the California Community Colleges easier for resident students and a decision determining the maximum award amounts made pursuant to this section for students attending an independent institution of higher education will be made with consideration of the effort of the institution to make that process easier.

(g)The association representing the largest number of independent institutions of higher education shall submit a report relative to the implementation of this section to the Department of Finance and the Legislature, in conformity with Section

9795 of the Government Code, on or before April 15 of each year.

(h)(1) For the

2024–25 award year and each award year thereafter, the target number of new unduplicated recipients accepted by independent institutions of higher education who have been given associate degree for transfer commitments shall be equal to the number of new transfer students attending independent institutions of higher education who were given associate degree for transfer commitments in the prior award year, adjusted by the percentage change in the total number of new transfer students from the year two years prior, compared to the prior year.

(2)Notwithstanding paragraph (1), it is the intent of the Legislature that the target number of new unduplicated recipients accepted by independent institutions of higher education who have been given associate degree for transfer commitments will increase each year.

(i)For purposes of this section,

“independent institution of higher education” has the same meaning as in Section 66010.

§ 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

Amended by Stats. 2025, Ch. 9, Sec. 4. (AB 123) Effective June 27, 2025. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

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, technology, 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 Officers’ 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)(1) “Maximum household income and asset levels” means the applicable household income and household asset levels for participants, including new applicants and renewing recipients, 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:

*Applies to independent students with dependents other than aspouse.

**Applies to independent students with dependents other than aspouse.

(2)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. The maximum household income and asset levels applicable to a renewing recipient shall be the greater of the adjusted maximum household income and asset levels or the maximum household income

and asset levels at the time of the renewing recipient’s initial Cal Grant award. For a recipient who was initially awarded a Cal Grant for an academic year before the 2011–12 academic year, the maximum household income and asset levels shall be the greater of the adjusted maximum household income and asset levels or the 2010–11 academic year maximum household income and asset levels. An applicant or renewal recipient 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. Before 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 paragraphs (2) to (4), inclusive, 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 student aid programs:

(i)Federal Work-Study Program.

(ii) Federal Stafford Loan Program.

(iii) Federal 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 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.

(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 website of a California licensing or regulatory agency. For purposes of this paragraph, “provide” may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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).

(3)(A) The commission shall certify by November 1 of each year the institution’s latest

official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, by the United States Department of Education.

(B)For purposes of the 2011–12 academic year, an otherwise qualifying institution with a three-year cohort default rate reported by the United States Department of Education that is equal to or greater than 24.6 percent shall be ineligible for initial and renewal Cal Grant awards at the institution.

(C)For purposes of the 2012–13 academic year, and every academic year thereafter, an

otherwise qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the commission on October 1, 2011, and every year thereafter, shall be ineligible for initial and renewal Cal Grant awards at the institution.

(D)(i) An otherwise qualifying institution that becomes ineligible under this paragraph for initial and renewal Cal Grant awards shall regain its eligibility for the academic year for which it satisfies the requirements established in subparagraph (B), (C), or (F), as applicable.

(ii) If the United States Department of Education corrects or revises an institution’s three-year cohort default rate or graduation rate that originally failed to satisfy the requirements established in subparagraph (B), (C), or (F), as applicable, and the correction or revision results in the institution’s

three-year cohort default rate or graduation rate satisfying those requirements, that institution shall immediately regain its eligibility for the academic year to which the corrected or revised three-year cohort default rate or graduation rate would have been applied.

(E)An otherwise qualifying institution for which no three-year cohort default rate or graduation rate has been reported by the United States Department of Education shall be provisionally eligible to participate in the Cal Grant Program until a three-year cohort default rate or graduation rate has been reported for the institution by the United States Department of Education.

(F)For purposes of the 2012–13 academic year, and every academic year thereafter, an otherwise qualifying institution with a graduation rate of 30 percent or less, as certified by the commission pursuant to subparagraph (A), shall be

ineligible for initial and renewal Cal Grant awards at the institution, except as provided for in subparagraph (H).

(G)Notwithstanding any other law, the requirements of this paragraph shall not apply to institutions with 40 percent or less of undergraduate students borrowing federal student loans, using information reported to the United States Department of Education for the academic year two years before the academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).

(H)Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 percent and a graduation rate above 20 percent for students taking 150 percent or less of the expected time to complete degree requirements, as certified by the commission pursuant to subparagraph

(A), shall be eligible for initial and renewal Cal Grant awards at the institution through the 2016–17 academic year.

(I)Notwithstanding subparagraph (D), for the 2024–25 academic year, the commission shall use the three-year cohort default rate certified in 2020 to certify an otherwise qualifying institution pursuant to this paragraph.

(J)Notwithstanding subparagraph (D), for the 2025–26 and 2026–27 academic years, the commission shall use the three-year cohort default rate certified in 2020 to certify an otherwise qualifying institution pursuant to this paragraph.

(K)The commission shall do all of the following:

(i)Notify initial Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards under subparagraph (C) or (F) that the institution is ineligible for initial Cal Grant awards for the academic year for which the student received an initial Cal Grant award.

(ii) Notify renewal Cal Grant recipients attending an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) that the student’s Cal Grant award will be reduced by 20 percent, or eliminated, as appropriate, if the student attends the ineligible institution in an academic year in which

the institution is ineligible.

(iii) Provide initial and renewal Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) with a complete list of all California postsecondary educational institutions at which the student would be eligible to receive an unreduced Cal Grant award.

(iv) (I) Establish an appeal process for an otherwise qualifying institution that fails to satisfy the three-year cohort default rate and graduation rate requirements in subparagraphs (C) and (F), respectively.

(II) The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not

representative of the overall institutional performance.

(4)By the start of the 2024–25 academic year, the institution shall develop and implement policies defining “satisfactory academic progress” in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:

(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.

(B)Provide information to students about the institution’s “satisfactory academic progress” standards and financial aid appeals process during new student orientation and include student-friendly language on the institution’s internet website and

financial aid award letters regarding the standards and appeals process. The institution shall request its faculty to include student-friendly language on course syllabi regarding the standards and appeals process.

(C)Notify a student when the student has not achieved the “satisfactory academic progress” standards following every term of enrollment, regardless of the frequency at which “satisfactory academic progress” is formally evaluated. This subparagraph does not preclude an institution from conducting the formal evaluation annually.

(D)Evaluate whether a student satisfies the grade point average and pace of completion standards set forth in subparagraph (A) based on cumulative measures. An institution shall not require a student to satisfy the minimum grade point average and pace of completion standards for each individual term. This paragraph does not preclude an

institution from requiring a student on “financial aid probation” as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations to comply with the terms of the student’s academic plan in order to maintain financial aid eligibility.

(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.

(F)Allow a student who fulfills the terms and conditions of the student’s academic plan to remain on “financial aid probation” as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the student’s academic plan.

(G)In the case of a “satisfactory academic progress” determination for a transfer student, when calculating

maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the student’s current program of study.

(H)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet “satisfactory academic progress,” as defined by the institution where the student is enrolled, subject to all of the following:

(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the student’s enrollment. The institution may limit the number of appeals per term, but each appeal that is

denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.

(ii) A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.

(iii) The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request

a second review.

(iv) In reviewing a student’s appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:

(I) Death of a relative or other significant person.

(II) Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.

(III) Pregnancy or birth of a child.

(IV) Homelessness.

(V) Loss of childcare.

(VI) Loss or change

in employment.

(VII) Loss of access to personal or public transportation.

(VIII) Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.

(IX) Natural disaster.

(X) Change of major.

(v)The institution shall review a student’s appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the student’s appeal is pending.

(vi) The institution shall provide a second review process

for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.

(vii) The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.

(viii) This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.

(m)“Satisfactory academic progress” means those criteria required by applicable federal standards published in Title 34 of the Code of Federal

Regulations.

§ 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

Amended by Stats. 2024, Ch. 38, Sec. 91. (SB 153) Effective June 29, 2024. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)A Cal Grant applicant shall submit a complete official financial aid application pursuant to Section 69433 and applicable regulations adopted by the commission. Each pupil enrolled in grade 12 in a California public school, including a charter school, other than pupils who opt out as provided in subdivision (d), shall be deemed to be a Cal Grant applicant.

(b)Financial need shall be determined to establish an applicant’s initial eligibility for a Cal Grant award and a renewing recipient’s continued eligibility 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. Sec. 1070

et seq.).

(1)“Expected family contribution,” with respect to an applicant or renewing recipient, 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.

(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. Sec. 1070 et seq.).

(3)(A) The minimum financial need required for receipt of an initial and renewal Cal Grant A or 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 and renewal Cal Grant B award shall be no less than seven hundred dollars ($700).

(4)Notwithstanding paragraphs (2) and (3), for the 2020–21 and 2021–22 award years, a student with an initial or renewal Cal Grant A award impacted by a change in the student’s living status, from living on-campus to living off-campus or from living on-campus to living at home, due to the COVID-19 pandemic, shall have the student’s eligibility for the initial or renewal Cal Grant A award calculated based on what it would have been had the change in the student’s living status due to the COVID-19 pandemic not occurred.

(c)(1) The commission shall require that a grade point average be submitted to it for all Cal Grant A and B applicants, except for those permitted to provide test scores in lieu of a grade point average or as provided in subclause (II) of clause (iii) of subparagraph (B) of paragraph (2).

(2)(A) Upon implementation of transcript-informed accounts for pupils in grades 9 to 12, inclusive, on the CaliforniaColleges.edu platform, the commission shall require that any grade point average data required for eligibility for student financial aid programs be submitted by local educational agencies through the California College Guidance Initiative established by Section 60900.5.

(B)(i) The commission shall require that a grade point average be submitted to it electronically on a standardized form for all

grade 12 pupils at public schools, including charter schools, no later than October 1 of each academic year, except for pupils who have opted out as provided in subdivision (d). Social security numbers shall not be included in the information submitted to the commission. However, if the commission determines that a social security number is required to complete the application for financial aid, the school, school district, or charter school may obtain permission from the parent or guardian of the pupil, or the pupil, if the pupil is 18 years of age, to submit the pupil’s social security number to the commission.

(ii) 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.

(iii) (I) 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.

(II) Notwithstanding subclause (I), for the 2021–22 award year, commission staff may waive the requirement to submit a test score in lieu of a qualifying grade point average for a student who does not have a grade point average and is unable to submit a test score due to unavailability of designated testing due to the COVID-19 pandemic. The commission shall require a student seeking a waiver under this subclause to submit a signed certification verifying they were prevented from taking and submitting a test score in lieu of

a qualifying grade point average due to the COVID-19 pandemic. For purposes of consideration for a Cal Grant A or B Entitlement award when applying with a waiver under this subclause for the 2021–22 award year, students shall have until May 16, 2021, to complete and submit their financial aid application and signed certification verifying they were prevented from taking and submitting a test score in lieu of a qualifying grade point average.

(iv) The requirements of this subparagraph shall become inoperative upon the submission by the commission of any required grade point average through the Cradle-to-Career Data System pursuant to subparagraph (A).

(3)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.

(4)(A) It is the intent of the Legislature that the commission make available to each high school and school district a report identifying all grade 12 pupils within the high school or school district, respectively, who have and have not completed the Free Application for Federal Student Aid or the California Dream Act application.

(B)The requirements of this paragraph shall become inoperative upon the submission by the local educational agency of any required grade point average through the Cradle-to-Career Data System pursuant to subparagraph (A) of paragraph (2).

(d)(1) The school district or charter school shall, no later than January 1 of a pupil’s grade 11 academic year, notify, in writing, each grade 11 pupil and, for a pupil under 18 years of age, the pupil’s parent

or guardian that, pursuant to subdivision (a), the pupil will be deemed a Cal Grant applicant unless the pupil opts out within a period of time specified in the notice, which shall not be less than 30 days. The required notice shall indicate when the school will first send grade point averages to the commission and the submission deadline of October 1. The school district or charter school shall provide an opportunity for the pupil to opt out of being automatically deemed a Cal Grant applicant.

(2)Until a pupil turns 18 years of age, only a parent or guardian may opt the pupil out. Once a pupil turns 18 years of age, only the pupil may opt the pupil out and, if before the conclusion of the notice period, the pupil may opt in over the prior decision of a parent or guardian to opt out.

§ 69432.92

Amended by Stats. 2016, Ch. 351, Sec. 1. (AB 2056) Effective January 1, 2017. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)The commission may require verification of high school graduation or its equivalent to be electronically submitted for all former grade 12 pupils who graduated from public schools, including charter schools, in the prior academic year, except for pupils who have opted out as provided in subdivision (d) of Section 69432.9.

(b)If the commission requires verification of high school graduation or its equivalent pursuant to subdivision (a), the commission shall provide guidance to high schools or high school districts to ensure that high schools and high school districts verify the graduation of their pupils as soon as possible upon a pupil’s graduation and

no later than August 31 of the academic year following the pupils’ graduation. This subdivision also applies to pupils who graduate during the summer following the grade 12 academic year.

§ 69432.95

Added by Stats. 2018, Ch. 758, Sec. 1. (AB 2248) Effective January 1, 2019. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)For purposes of this section, “qualifying institution” has the same meaning as in Section 69432.7.

(b)For the purposes of subdivision (c) “Cal Grant” means all Cal Grant awards except the Cal Grant C award.

(c)Upon the initial award and renewal of a Cal Grant award, the commission shall notify the award recipient in writing, which may include electronic mail, of both of the following:

(1)A Cal Grant award is limited to four academic years, except as provided

in subdivision (c) of Section 69433.6.

(2)A student needs to take 15 units per semester or the equivalent quarter units, or 30 semester units or the equivalent quarter units per academic year, in order to graduate within four years.

(d)During the orientation of a new student, a qualifying institution shall notify the student in writing of the information described in paragraphs (1) and (2) of subdivision (c).

(e)Upon annual registration by a student receiving state financial aid, the financial aid office of a qualifying institution shall notify that student in writing of the information described in paragraphs (1) and (2) of subdivision (c).

(f)During

online registration by a student for fewer than 15 semester units or the equivalent quarter units, the information contained in paragraphs (1) and (2) of subdivision (c) must be provided to the student with a box for the student to check acknowledging receipt of the provided information.

§ 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.

§ 69433.2

Amended by Stats. 2025, Ch. 9, Sec. 5. (AB 123) Effective June 27, 2025. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)As a condition for its voluntary participation in the Cal Grant Program, each Cal Grant participating institution, or the systemwide central office of the public postsecondary educational institution acting on behalf of the participating institution, shall, on or before March 31, 2026, and on or before March 31 of each year thereafter, annually report to the commission, and as further specified in the institutional participation agreement, both of the following for its undergraduate

programs in order for the commission to meet the requirements of subdivision (b):

(1)(A) Enrollment, persistence, and graduation data for all students,

disaggregated by gender, ethnicity, Pell Grant status, first generation status, transfer status, student parent status, foster youth status, and eligibility used of state financial aid received, including Cal Grant A, Cal Grant B, Cal Grant C, Cal Grant Access Awards, and Middle Class Scholarship, to the extent data is available. Data shall be redacted when the number of students is insufficient to ensure student privacy under the federal Family Educational Rights and Privacy Act (Public Law 93-280, as amended).

(B)To the extent feasible, Cal Grant participating institutions or the systemwide central office of the public postsecondary educational institution acting on behalf of the participating institution, may satisfy the reporting requirements of subparagraph (A) by submitting that data to the Cradle-to-Career Data

System, and subsequently having the Cradle-to-Career Data System share the aggregated data with the commission, subject to privacy protection protocols that prevent redisclosure of individuals pursuant to clause (ii) of subparagraph (C) of paragraph (3) of subdivision (b) of Section 10867.

(2)The job placement rate and salary and wage information for each program that is either designed or advertised to lead to a particular type of job or advertised or promoted with a claim regarding job placement.

(b)The commission

shall post both of the following on its

internet website on or before August 1, 2026, and on or before August 1 of each year thereafter:

(1)The information submitted by a Cal Grant participating institution pursuant to subdivision (a), which shall be made available in a searchable database.

(2)Other information and links that are useful to students and parents who are in the process of selecting a college or university. This information may include, but not be limited to, local occupational profiles available through the Employment Development Department’s Labor Market Information Data Library.

(c)Data reported to the commission pursuant to subdivision (a) by postsecondary educational institutions shall be reported in a manner

that complies with applicable federal and state laws to protect individual privacy, as determined by the postsecondary educational institution. The applicable federal and state laws to protect individual privacy shall include, but are not limited to, all of the following:

(1)The federal Family Education Rights and Privacy Act of 1974 (Public Law 93-280, as amended).

(2)The federal Higher Education Act of 1965 (Public Law 89-329, as amended).

(3)The federal Privacy Act of 1974 (Public Law 93-579, as amended).

(4)The information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).

(d)Data reported to the commission

pursuant to subdivision (a) by the Cradle-to Career Data System shall be reported in a manner that complies with federal and state privacy laws applicable to the system, as described in Section 10860.

§ 69433.5

Amended by Stats. 2012, Ch. 38, Sec. 62. (SB 1016) Effective June 27, 2012. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(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, sexual orientation, gender identity, gender expression, or age.

(d)An applicant shall not receive more than one type of Cal Grant Program award concurrently. An applicant shall not:

(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

before receiving a Cal Grant Program award.

(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)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.

(j)A recipient who initially qualified for both a Cal Grant A award and a Cal Grant B award, and received a Cal Grant B award, may be awarded a renewal Cal Grant A award if that recipient subsequently became ineligible for a renewal Cal Grant B award and meets the applicable Cal Grant A financial need and income and asset criteria.

§ 69433.6

Amended by Stats. 2018, Ch. 33, Sec. 12. (AB 1809) Effective June 27, 2018. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)Except as otherwise provided in this section, 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 minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, 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)(1) Commencing with the 2014–15 academic year, a recipient who was determined to be ineligible for a renewal

award in the 2012–13 or 2013–14 academic year because he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a student’s remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.

(2)Commencing with the 2015–16 academic year, a recipient who is determined to be ineligible for a renewal award because, during the immediately preceding academic year, he or she exceeded the maximum household income or asset

level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a student’s remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.

(c)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 minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.

(d)(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 minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, 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.

(3)A student’s Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an

award for purposes of this subdivision.

(e)(1) For a current or former foster youth, Cal Grant B awards may be renewed for a total of the equivalent of eight years of full-time attendance in an undergraduate program, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.

(2)For purposes of this subdivision, “current or former foster youth” means a person whose dependency was established or continued by the court on or after the date on which the person reached 13 years of age.

§ 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

Amended by Stats. 2025, Ch. 648, Sec. 2. (SB 67) Effective January 1, 2026. Conditionally inoperative as prescribed in Section 69475 (if it becomes operative). Repealed conditionally pursuant to Section 69475 (if it becomes operative).

(a)To be eligible to receive a Cal Grant award pursuant to this chapter, a student shall be all of the following:

(1)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. Sec. 1070 et seq., as from time to time amended).

(2)Not incarcerated.

(3)Not in default on any student loan within the meaning of Section 69507.5.

(4)(A) 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.

(B)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.

(C)No student shall receive an award for a term that begins before satisfying any requirement for obtaining high school graduation or its equivalent.

(b)Notwithstanding subdivision (a), a student shall be eligible to receive a Cal Grant award pursuant to this chapter if the student satisfies the requirements of paragraphs (1) to (3), inclusive, of subdivision (a) and the student is a dependent natural or adopted child, stepchild, or spouse of a member of the Armed Forces of the United States stationed outside of California on active duty, if the member of the Armed Forces of the United States otherwise maintains California as their state of legal residence.