Student financial aid: Cal Grant Program.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program) , establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission (commission) , and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions, as defined. Existing law requires the Student Aid Commission to certify by October 1 of each year a qualifying institution's latest 3-year cohort default rate as most recently reported by the United States Department of Education. Existing law provides that, for purposes of the 2012–13 academic year, and every academic year thereafter, an otherwise qualifying institution with a 3-year cohort default rate that is equal to or greater than 15.5% is ineligible for initial and renewal Cal Grant awards at the institution. Existing law also requires that an otherwise qualifying institution is ineligible for an initial or renewal Cal Grant award at the institution if the institution has a graduation rate of 30% or less for students taking 150% or less of the expected time to complete degree requirements, as specified, with certain exceptions. If an otherwise qualifying institution has a student body composed of at least 23 students who are receiving federal Pell grants, and a default rate that exceeds the existing statutory maximum for eligibility or a graduation rate less than the existing statutory minimum for eligibility, as prescribed, this bill would deem the institution eligible if the commission certifies that the institution satisfies specified conditions. The bill would require the commission to adopt any rules or regulations necessary to implement these provisions by March 1, 2015, and to report to the Legislature, by January 1, 2016, on its review and recommendations regarding additional criteria that would be appropriately considered in determining eligibility.