text: In the event that the amount of loans applied for under this article exceeds the amount of the loans that may be guaranteed pursuant to this article, the commission may establish a system of priorities for the approval of loans.

history: (History: Amended by Stats. 1989, Ch. 1113, Sec. 33.1. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


kind: section

code: EDC

text:
(a) The commission shall guarantee any student loan made pursuant to this article in the amount specified in federal statutes and regulations.

(b) The commission shall establish the ratio of reserve funds to loans outstanding.

history: (History: Amended by Stats. 1994, Ch. 485, Sec. 6. Effective January 1, 1995. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

division: 5. GENERAL PROVISIONS

part: 42. STUDENT FINANCIAL AID PROGRAM

title: 3. POSTSECONDARY EDUCATION

chapter: 2. Student Financial Aid Programs

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 13. Federal Family Education Loan Program


text:
(a) The Federal Student Loan Reserve Fund and the Student Loan Operating Fund are hereby created in the State Treasury. On January 1, 2000, the State Guaranteed Loan Reserve Fund shall cease to exist, and funds deposited, or required to be deposited, in that fund shall be transferred to the Federal Student Loan Reserve Fund or to the Student Loan Operating Fund and allocated to those funds in accordance with the requirements of federal law.

(b) All moneys received for the purposes of this article from federal, state, or local governments, including any moneys deposited in the State Guaranteed Loan Reserve Fund, or from other private or public sources, shall be deposited in the Federal Student Loan Reserve Fund or the Student Loan Operating Fund and allocated to those funds in accordance with the requirements of federal law. Funds deposited in the Federal Student Loan Reserve Fund or the Student Loan Operating Fund are not part of the General Fund, as defined in Section 16300 of the Government Code. No moneys from the General Fund shall be deposited in the Federal Student Loan Reserve Fund or the Student Loan Operating Fund.

(c) The contents of the Federal Student Loan Reserve Fund are federal funds, administered in accordance with federal laws and regulations. The contents of the Student Loan Operating Fund are state funds within the custody and control of the Student Aid Commission.

(d) Notwithstanding Section 13340 of the Government Code, all moneys deposited in the Federal Student Loan Reserve Fund and the Student Loan Operating Fund are hereby continuously appropriated, without regard to fiscal years, for purposes of this article. The continuous appropriation made by this section shall be available to assume the obligation under any outstanding budget act appropriation from the State Guaranteed Loan Reserve Fund as it existed prior to January 1, 2000. On or after the operative date of Article 2.4 (commencing with Section 69521), the expenditure of funds from the Student Loan Operating Fund is subject to the limitations set forth in Sections 69522 and 69526.

(e) Notwithstanding any other law, the Controller may use the moneys in the Student Loan Operating Fund for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. However, interest shall be paid on all moneys loaned to the General Fund from the Student Loan Operating Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Student Loan Operating Fund was created.

(f) The total amount of all outstanding debts, obligations, and liabilities that may be incurred or created under this article or under Article 2.5 (commencing with Section 69522), including any obligation to repay to the United States any funds provided under Title IV of the “Higher Education Act of 1965,” and extensions thereof or amendments thereto, or any similar act of Congress, is limited to the amount contained in the Federal Student Loan Reserve Fund or the Student Loan Operating Fund, and the state shall not be liable to the United States, or to any other person or entity, beyond the amount contained in the Federal Student Loan Reserve Fund or the Student Loan Operating Fund for any debts, obligations, and liabilities.

history: (History: Amended by Stats. 2009, 3rd Ex. Sess., Ch. 9, Sec. 1. Effective February 20, 2009. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION

article: 13. Federal Family Education Loan Program


text:
(a) Notwithstanding Section 13340 of the Government Code, in addition to the purposes for which funds are appropriated pursuant to Section 69766, there is hereby continuously appropriated from the Federal Student Loan Reserve Fund and the Student Loan Operating Fund to the commission, the amount of funds necessary to make payments for the purchase of defaulted loans.

(b) Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the Student Loan Operating Fund for transfer to the Federal Student Loan Reserve Fund, all federal reinsurance payments received on defaulted student loans and deposited in the Student Loan Operating Fund.

(c) The appropriation authorized by this section shall be operative only if the annual Budget Act for the fiscal year is not chaptered on or before July 15, and shall not exceed the amount deemed by the commission to be required by federal law or regulation. The commission shall notify the Joint Legislative Budget Committee of the amount of any payments issued pursuant to this section.

history: (History: Amended by Stats. 1999, Ch. 636, Sec. 6. Effective January 1, 2000. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The Treasurer shall invest, pursuant to statute, any surplus money in the Federal Student Loan Reserve Fund and the Student Loan Operating Fund. The interest or other accretions as a result of the investment of this money shall be deposited in the originating fund, and may be expended for those purposes authorized in this article or the Higher Education Act of 1965.

history: (History: Amended by Stats. 1999, Ch. 636, Sec. 7. Effective January 1, 2000. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The funds in the Federal Student Loan Reserve Fund and the Student Loan Operating Fund shall be paid out by the State Treasurer on warrants drawn by the Controller, or through a transfer between the Federal Student Loan Reserve Fund and the Student Loan Operating Fund, and requisitioned by the commission in carrying out the purposes of this article and the federal act.

(b) The commission is hereby authorized to make advance payments from the Student Loan Operating Fund to the auxiliary organization for services rendered to the commission under Article 2.5 (commencing with Section 69522). The commission is hereby authorized to make advance payments from the Student Loan Operating Fund to the auxiliary organization for the purpose of providing funding necessary for other permitted student financial aid activities approved by the commission pursuant to a business plan adopted by the auxiliary organization and approved by the commission, provided the commission first provides the Director of Finance and the Joint Legislative Budget Committee with at least 45 days advance notice in writing that includes the amount proposed to be transferred and a description of the approved student financial aid activities and related expenditures to be undertaken. If the Director of Finance or the Joint Legislative Budget Committee notifies the commission regarding issues of concern with the proposed transfer of funds, the commission shall convene a meeting of appropriate representatives of the commission, the Department of Finance, and the Legislature to resolve those issues. Notwithstanding any other law, advance payments to the auxiliary organization and any fees charged by the auxiliary organization for services rendered to the commission pursuant to an operating agreement may be deposited with a private financial institution.

history: (History: Amended by Stats. 2004, Ch. 216, Sec. 21. Effective August 11, 2004. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The commission shall establish a Loan Advisory Council. The Loan Advisory Council shall be composed of 17 members, appointed by the commission, composed of representatives of students, postsecondary educational institutions, eligible lenders, and participating secondary markets.

history: (History: Amended by Stats. 1998, Ch. 954, Sec. 3. Effective January 1, 1999. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Loan Advisory Council established pursuant to Section 69769 shall be composed of members appointed from the following groups:

(1) Four representatives of the lending community participating in the Federal Family Education Loan Program.

(2) One representative each from the University of California, the California State University, the California Community Colleges, a private nonprofit postsecondary education institution, and a private for-profit postsecondary education institution.

(3) One representative from the California Association of Student Financial Aid Administrators.

(4) Five student representatives from the same postsecondary segments listed in paragraph (2). In no event shall a student representative be appointed to serve simultaneously as the representative of more than one of these five postsecondary groups.

(5) One representative from a secondary market participating in the Federal Family Education Loan Program.

(6) One representative from the California Lenders for Education Association.

(b) The representatives appointed by the commission pursuant to subdivision (a) shall be selected by the commission from lists provided to its chair by each group described in that subdivision.

history: (History: Amended by Stats. 1998, Ch. 954, Sec. 4. Effective January 1, 1999. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: In addition to the members appointed to the Loan Advisory Council pursuant to Section 69769.3, the United States Department of Education may appoint one nonvoting representative to the council who shall serve as liaison between that department and the council.

history: (History: Amended by Stats. 1998, Ch. 954, Sec. 5. Effective January 1, 1999. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The Loan Advisory Council shall review the activities and policies of the Federal Family Education Loan Program and shall regularly advise the commission of its findings and recommendations. The Loan Advisory Council may request information and data that it deems appropriate from the Student Aid Commission with respect to the Federal Family Education Loan Program or any other loan program administered by the commission.

history: (History: Amended by Stats. 1998, Ch. 954, Sec. 6. Effective January 1, 1999. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Loan Advisory Council shall annually elect a chair and a vice chair from its membership. Representatives who serve on, or are employed or retained by, the commission, and the nonvoting representative appointed by the United States Department of Education, if any, are ineligible for election to these positions.

(b) The chair of the Loan Advisory Council shall have the authority, in consultation with the chair of the commission, to convene meetings of the council. The chair shall also direct each council meeting and shall regularly present oral and written reports to the commission regarding the advice of the council. The vice chair of the Loan Advisory Council shall assume these responsibilities in the absence of the chair.

history: (History: Amended by Stats. 1998, Ch. 954, Sec. 7. Effective January 1, 1999. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: This article shall be applicable to the extent that its provisions do not conflict with Title IV of the Higher Education Act of 1965, or any extensions thereof, or any similar act of Congress, and the rules and regulations adopted thereunder.

history: (History: Amended by Stats. 1989, Ch. 1113, Sec. 38.3. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The commission shall annually report on the numbers of students participating in the program, total loan volume, and the postsecondary educational institutions in which participating students are enrolled.

history: (History: Amended by Stats. 1994, Ch. 485, Sec. 9. Effective January 1, 1995. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The commission shall provide, with each application form for the Federal Family Education Loan Program a notice to the student informing him or her that, for purposes of collecting on a defaulted loan, the commission is entitled to seek employment, wage, and other information from the Employment Development Department on any person who defaults on a guaranteed student loan.

(b) A common application form may be utilized for student loans in compliance with the program eligibility and financial forms specified in Section 69534.1.

history: (History: Amended by Stats. 1994, Ch. 485, Sec. 10. Effective January 1, 1995. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The commission shall develop and distribute in cooperation with postsecondary educational institutions and private lenders, simple, common consumer information for prospective student borrowers.

history: (History: Amended by Stats. 1981, Ch. 847, Sec. 8. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The commission may contract for all or part of administrative support services.

history: (History: Added by Stats. 1977, Ch. 1201. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The commission may enter into contracts with a public agency or a private entity to improve the processing and distribution of guaranteed student loan applications through the use of electronic networks and unified data bases.

history: (History: Added by Stats. 1984, Ch. 501, Sec. 3. Repealed conditionally by Stats. 2007, Ch. 184, Secs. 2 and 4.)

title: 3. POSTSECONDARY EDUCATION


text: The commission shall encourage private lenders to increase participation in the guaranteed student loan program.

title: 3. POSTSECONDARY EDUCATION


text: The General Fund shall not be liable for any student loan made prior to the effective date of the chapter which enacts this section.

title: 3. POSTSECONDARY EDUCATION


text:
(a) The California Community Colleges and the California State University may, and the University of California is encouraged to, coordinate services for qualified students who are veterans or members of the military by clearly designating Military and Veterans Offices and individuals to provide services, including, but not limited to, all of the following:

(1) Financial aid counseling.

(2) Academic outreach, admission, and enrollment planning.

(3) Transition concerns.

(4) Postgraduate planning.

(5) Health and mental health services.

(6) Provide tutoring and other learning support services.

(7) Provide career counseling.

(b) The purpose of these Military and Veterans Offices shall be to encourage and facilitate the use of the services listed in paragraphs (1) to (7), inclusive, of subdivision (a) and to assist a qualified student in determining that student’s eligibility for state or federal educational financial aid.

(c) For purposes of this article, “qualified student” means a student who is any of the following:

(1) An active duty member of any of the following:

(A) The Armed Forces of the United States.

(B) The California National Guard.

(C) A reserve component of the Armed Forces of the United States.

(2) A veteran of the Armed Forces of the United States.

(3) A family member of a person described in paragraph (1) or (2). For the purposes of this paragraph, “family member” means an individual who is a legal dependent under 28 years of age of a person described in paragraph (1) or (2) living in the household of that person and eligible to be claimed as a dependent on federal or state tax returns.

history: (History: Added by Stats. 2008, Ch. 123, Sec. 1. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION

article: 14. Military and Veterans Offices

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 14. Military and Veterans Offices


text:
The California Community Colleges and the California State University may, and the University of California is encouraged to, report to the Department of Veterans Affairs, on an annual basis, all of the following information:

(a) The number of qualified students assisted by a Military and Veterans Office.

(b) The number of qualified students assisted who are active duty members of the Armed Forces of the United States, the California National Guard, or a reserve component of the Armed Forces of the United States, or are veterans of the Armed Forces of the United States.

(c) The total education benefits obtained by all qualified students assisted by an office.

title: 3. POSTSECONDARY EDUCATION

article: 14. Military and Veterans Offices


text:
A public, private, or independent postsecondary educational institution, except the California Community Colleges, shall do all of the following:

(a) (1) State both of the following in all printed and online financial aid materials issued or distributed by the institution to applicants for admission or matriculated students and with private loan applications provided or made available by the institution:

(A) Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness benefits, which other student loans are not required to provide.

(B) Federal direct loans are available to students regardless of income.

(2) The institution may continue to use financial aid materials that are printed before January 1, 2013, if the institution includes an insert with the printed material that provides the information required in paragraph (1). All financial aid materials printed on or after January 1, 2013, shall include the information required in paragraph (1).

(b) Clearly distinguish private loans from federal loans in individual financial aid awards by stating, for any private loans included by the institution as part of the institution’s award package, all of the following:

(1) Whether the rate is fixed or variable.

(2) An explanation that private student loan lenders can offer variable interest rates that can increase or decrease over time, depending on market conditions.

(3) An explanation that private student loans have a range of interest rates and fees and students should determine the interest rate of, and any fees associated with, the private student loan included in their financial aid award package before accepting the loan.

(4) An explanation that students should contact the lender of the private student loan or their postsecondary educational institution’s financial aid office if they have any questions about a private student loan.

(5) An explanation that the interest rate on a private loan may depend on the borrower’s credit rating.

(c) If the institution provides a private loan lender list, it also shall provide general information about the loans available through the lender and disclose the basis for each lender’s inclusion on the list. The institution shall also disclose with the list that the student has the ability to choose any lender.

(d) (1) Make available to the public upon request and in a prominent location on its Internet Web site within 12 months of a completed academic year the following information concerning graduates and student loan debt:

(A) The number of students who started as first-time postsecondary students at the institution and received a certificate, associate’s degree, or bachelor’s degree during that academic year. For purposes of this section, “academic year” means the most recently completed federal award year of July 1 to June 30.

(B) (i) For each type of credential specified in subparagraph (A), the number and percentage of the students identified pursuant to subparagraph (A) who borrowed at any time while enrolled at the institution through any student loan program, including, but not necessarily limited to, institutional loans, state loans, federal Perkins loans, federal Stafford subsidized and unsubsidized loans, and private loans that were certified by the institution, including both federal direct student loans and federal family education loans.

(ii) The total principal borrowed for each type of credential in those loans described in clause (i).

(C) (i) For each type of credential specified in subparagraph (A), the number and percentage of the students identified pursuant to subparagraph (A) who borrowed at any time while enrolled at the institution through a federal student loan program, including, but not necessarily limited to, federal Perkins loans, federal Stafford subsidized and unsubsidized loans, federal direct student loans, and federal family education loans, but excluding institutional loans, state loans, and private loans.

(ii) The total principal borrowed for each type of credential in those loans described in clause (i).

(D) The average cumulative principal borrowed by those students counted for purposes of the calculations required by subparagraphs (B) and (C) by credential type, calculated by dividing the sum identified in clause (ii) of each of those subparagraphs for each type of credential by the number of that type of credential issued for students receiving the loans described in the respective subparagraph.

(2) For purposes of this subdivision, “loans” shall include cosigned loans that financed a student’s own enrollment or attendance, but shall not include parental loans.

history: (History: Amended by Stats. 2015, Ch. 632, Sec. 1. (AB 721) Effective January 1, 2016.)

title: 3. POSTSECONDARY EDUCATION

article: 14.5. Private Student Loans

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 14.5. Private Student Loans


text:
(a) Before certifying a borrower’s eligibility for a private student loan, a public, private, or independent postsecondary educational institution shall provide to the student information concerning all unused state and federal financial assistance, including unused federal student loan moneys available to that student.

(b) An institution that does not participate in federal student loan programs shall inform students that the institution does not participate in federal loan programs and that students may be eligible for federal loans at a participating institution. The institution shall provide the student with information regarding the Cal Grants Web link on the California Student Aid Commission’s Internet Web site and the Federal Student Aid Web link on the United States Department of Education’s Internet Web site.

history: (History: Amended by Stats. 2016, Ch. 86, Sec. 70. (SB 1171) Effective January 1, 2017.)

title: 3. POSTSECONDARY EDUCATION

article: 14.5. Private Student Loans


text: The California Community Colleges may, and are requested to, comply with the provisions of Section 69800.

history: (History: Amended by Stats. 2015, Ch. 632, Sec. 3. (AB 721) Effective January 1, 2016.)

title: 3. POSTSECONDARY EDUCATION

article: 14.5. Private Student Loans


text: This article shall apply to the University of California only to the extent that the Regents of the University of California act, by resolution, to make it applicable.

history: (History: Added by Stats. 2012, Ch. 623, Sec. 1. (SB 1289) Effective January 1, 2013.)

title: 3. POSTSECONDARY EDUCATION

article: 14.5. Private Student Loans


text:
In accepting a scholarship, loan, fellowship, grant-in-aid, or any other financial aid given or guaranteed by the state for assistance, every recipient thereof who is a student at a public or private university, college, or other institution of higher education, shall be deemed to have agreed to observe the rules and regulations promulgated by the governing authority of the university, college, or other institution of higher education, for the government thereof.

Any recipient of this state financial aid who, on the campus of the university, college, or other institution of higher education, willfully and knowingly commits any act likely to disrupt the peaceful conduct of the activities of the campus, and is arrested and convicted of a public offense arising from the act, may be determined to be ineligible for any state financial aid for a period not to exceed the ensuing two academic years.

Any recipient of this state financial aid who, after a hearing, is found to have willfully and knowingly disrupted the orderly operation of the campus, but has not been arrested and convicted, may be determined to be ineligible for any state financial aid for the period as the hearing board may determine, not to exceed the ensuing two academic years.

Any recipient who is suspended from an institution of higher education for these acts shall be ineligible for state financial aid for a period not less than the time of the suspension.

The governing authority of the university, college, or other institution of higher education shall, for purposes of this section, cause to be reviewed the record of each recipient and shall, as soon as practicable, notify a hearing board established by it of the name of any recipient who committed any act likely to disrupt the peaceful conduct of the activities of the campus and was arrested and convicted of any public offense arising from that act, or is found to have willfully and knowingly disrupted the orderly operation of the campus, or has been suspended from an institution of higher education for these acts.

history: (History: Amended by Stats. 1987, Ch. 678, Sec. 1. Operative January 1, 1993, by Stats. 1987, Ch. 678, Sec. 4. Note: Pursuant to Sec. 4 of Ch. 678, this section, in its previous form, was inoperative from Jan. 1, 1988, until Jan. 1, 1993, when it resumed operation in this amended form.)

title: 3. POSTSECONDARY EDUCATION

article: 15. Forfeiture of State Aid to Students

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 15. Forfeiture of State Aid to Students


text:
Upon receipt of notice, as provided in Section 69810 that any recipient has committed any act likely to disrupt the peaceful conduct of the activities of the campus and was convicted of a public offense in connection therewith, or is found to have willfully and knowingly disrupted the orderly operation of the campus, or has been suspended from an institution of higher education for these acts, the hearing board shall immediately give the recipient written notice of the report. The notice shall inform the recipient of the pendency of the proceedings for the suspension of assistance. It shall inform the recipient that he may present evidence of mitigating circumstances to the hearing board within 14 calendar days of the date of the mailing of the notice, and shall specify the procedures and means by which such evidence is to be presented, including the date at which any hearing to be afforded him is to be held. The hearing board may prescribe any procedures and means for these purposes which it may deem appropriate, provided that any hearing which may be afforded the recipient shall not be held sooner than seven days after the date of the mailing of the notice.

If no response to the hearing board’s notice is made within the period specified in this section, the hearing board may suspend further assistance to the recipient and the suspension shall remain in effect not to exceed the ensuing two academic years.

After the conclusion of proceedings provided for in this section, the hearing board shall, by majority vote, determine whether further assistance to the recipient shall be suspended. If the recipient was arrested and convicted of a public offense arising from campus disruption, the suspension may remain in effect for a period not to exceed the ensuing two academic years. If the recipient is found by the hearing board to have willfully and knowingly disrupted the orderly operation of the campus, but has not been arrested and convicted, the hearing board may suspend further assistance to the recipient for the period as the hearing board may determine not to exceed the ensuing two academic years. If the recipient was suspended from an institution of higher education for these acts, the hearing board shall suspend further assistance to the recipient for a period not less than the time of the suspension. The findings of the hearing board shall be in writing.

The hearing board shall notify the appropriate state agencies of any suspension of state financial aid pursuant to this section, and no state financial aid shall be extended to the recipient during this period.

Any notice required to be made by this section shall be sufficient when it is deposited in the United States registered or certified mail, postage paid, addressed to the last known address of the addressee.

history: (History: Amended by Stats. 1987, Ch. 678, Sec. 2. Operative January 1, 1993, by Stats. 1987, Ch. 678, Sec. 4. Note: Pursuant to Sec. 4 of Ch. 678, this section, in its previous form, was inoperative from Jan. 1, 1988, until Jan. 1, 1993, when it resumed operation in this amended form.)

title: 3. POSTSECONDARY EDUCATION

article: 15. Forfeiture of State Aid to Students


text: Nothing in this article shall be construed to prohibit any public or private university, college, or other institution of higher education from suspending or refusing to grant scholarships, loans, fellowships, grants-in-aid, or any other financial aid given or guaranteed by the state for academic assistance to any individual because of any other misconduct that in its judgment bears adversely on his or her fitness for the assistance.

history: (History: Amended (as to be amended by Stats. 1987, Ch. 678) by Stats. 1989, Ch. 1113, Sec. 40.3. Amendments operative January 1, 1993, pursuant to Stats. 1987, Ch. 678, Sec. 4. Note: Sec. 4 of Ch. 678 made this section inoperative from January 1, 1988, until January 1, 1993.)

title: 3. POSTSECONDARY EDUCATION

article: 15. Forfeiture of State Aid to Students


text: For the purposes of this article, “state financial aid” means any assistance given or guaranteed by the state that is predicated on attendance at an institution of higher education.

history: (History: Amended by Stats. 1989, Ch. 1113, Sec. 40.5.)

title: 3. POSTSECONDARY EDUCATION

article: 15. Forfeiture of State Aid to Students


text:
(a) As used in this section, the following definitions apply:

(1) “Chancellor’s office” means the office of the Chancellor of the California Community Colleges.

(2) “Fund” means the College Access Tax Credit Fund established pursuant to Section 17053.87 of the Revenue and Taxation Code.

(3) “HBCUs” means the colleges and universities listed as “Historically Black Colleges and Universities” by the National Center for Education Statistics.

(4) “Participating students” means students who have completed the associate degree for transfer pathway, are enrolled at a partnered HBCU, and qualify to receive an award pursuant to this section.

(5) “Partnered HBCUs” means HBCUs that satisfy all of the following:

(A) Have associate degree for transfer memoranda of understanding on file with the chancellor’s office.

(B) Satisfy subparagraphs (C) and (F) of paragraph (3) of subdivision (l) of Section 69432.7.

(C) Are regionally accredited by an agency recognized by the United States Department of Education.

(6) “Postsecondary costs” means any costs of attendance of participating students at partnered HBCUs.

(b) The moneys allocated to the commission pursuant to Section 17053.87 of the Revenue and Taxation Code shall be available for the purpose of making awards for participating students pursuant to this section.

(c) (1) Commencing with the 2024–25 award year, the commission may make disbursements of awards from the moneys allocated to the commission directly to partnered HBCUs for postsecondary costs of their participating students.

(2) A participating student may only receive one award pursuant to this section in an amount that does not exceed five thousand dollars ($5,000), as determined by the commission based on the availability of moneys allocated to the commission and the financial need of the student.

(3) In making awards pursuant to this section, the commission shall give priority to students with the greatest unmet financial need, as defined in subdivision (b) of Section 69432.9, who do not exceed the maximum household income and asset level for an applicant for a Cal Grant B award, as set forth in Section 69432.7.

(4) An award under this section is payable only to the extent that moneys are available from the fund. The commission shall inform each recipient of an award under this section that the award is a one-time grant.

(5) A participating student shall file a statement of intent form stating that the student will enroll at a partnered HBCU and return to California after graduation from a partnered HBCU.

(d) The commission may make disbursements in any fiscal year in which it determines there are sufficient funds. If the commission determines it would be in the best interest of the program, the commission may roll over moneys allocated to the commission for disbursement in future fiscal years.

(e) If, after making awards pursuant to subdivision (c), moneys remain in the fund, those moneys shall remain in the fund for allocation in future fiscal years.

(f) The commission may adopt regulations for purposes of implementing and administering this section.

history: (History: Added by Stats. 2023, Ch. 278, Sec. 3. (AB 1400) Effective January 1, 2024.)

title: 3. POSTSECONDARY EDUCATION

article: 16. College Access Tax Credit Awards

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 16. College Access Tax Credit Awards


text:
For purposes of this article, the following definitions apply:

(a) “Commission” means the Student Aid Commission.

(b) “Participating institution” means a federal Workforce Pell Grant-eligible postsecondary educational institution that offers a short-term program and enrolls students living in the state in a short-term program.

(c) “Postsecondary educational institution” means a campus of the University of California, the California State University, or the California Community Colleges, a private postsecondary educational institution defined in Section 94858, or an independent institution of higher education defined in Section 66010.

(d) “Short-term program” means an educational program offered by a participating institution that includes 150 to 599, inclusive, hours of instruction, or an equivalent number of credit hours, over 8 to 14 weeks, inclusive.

(e) “Workforce Pell Grant program” means the federal program established pursuant to Public Law 119-21, under which federal Workforce Pell Grants may be awarded to students enrolled in a short-term program at a participating institution.

history: (History: Added by Stats. 2026, Ch. 79, Sec. 11. (SB 135) Effective July 13, 2026.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 17. Federal Workforce Pell Grant Program


text: The Employment Development Department shall provide a list of high-skill, high-wage, or in-demand industry sectors or occupations to the Labor and Workforce Development Agency every two years concurrent with the development and modification of the state plan required by the federal Workforce Innovation and Opportunity Act (Public Law 113-128). The first list shall be submitted on or before October 1, 2026. To fulfill this requirement, the Employment Development Department may use the list updated on or before July 1, 2026, as required by the federal Workforce Innovation and Opportunity Act. After providing the list to the California Workforce Development Board at a meeting of the board, the Labor and Workforce Development Agency shall promptly provide the list to the commission for its consideration in determining whether to approve a short-term program pursuant to this article. The commission shall also publicly post this list on its internet website.

title: 3. POSTSECONDARY EDUCATION

article: 17. Federal Workforce Pell Grant Program


text:
(a) The commission, on behalf of the Governor, shall determine whether a participating institution’s short-term program meets the requirements established pursuant to this article and shall consult with the California Workforce Development Board on the process that will be used to make those determinations.

(b) Before approving any short-term program pursuant to this article, the commission shall consult with the California Workforce Development Board and the Labor and Workforce Development Agency on the short-term programs that the commission is proposing to approve, which may include, but not be limited to, presenting at a meeting of the California Workforce Development Board a list of short-term programs that the commission is proposing to approve.

(c) (1) A participating institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall provide all of the following to the commission in a manner prescribed by the commission:

(A) Documentation that the short-term program meets all requirements set forth in Section 83002(b) of Public Law 119-21 and any applicable federal or state law or regulation.

(B) Documentation that demonstrates the methodology and implementation plan for maintaining ongoing compliance with all requirements set forth in Section 83002(b) of Public Law 119-21, including a description of how and what data will be collected to demonstrate ongoing compliance.

(C) A completed Workforce Pell Grant program application, as developed by the commission, and any associated documentation, data, and certifications that are required as part of its submission in accordance with regulations adopted by the commission pursuant to Section 69873.

(D) Documentation that the short-term program does all of the following:

(i) Provides an education aligned with the requirements needed for work in the sectors or occupations identified pursuant to Section 69871, including identifying the specific sector or occupation on the list the program aligns with.

(ii) Meets the hiring requirements of employers in the sectors or occupations identified pursuant to Section 69871.

(iii) Leads to a recognized postsecondary credential that is stackable and portable across more than one employer or prepares students enrolled in the short-term program for employment in an occupation for which there is only one recognized postsecondary credential and that awards students the credential upon completion of the short-term program.

(iv) Prepares students to pursue one or more certificates or degrees at a postsecondary educational institution by ensuring that, upon completion of the short-term program and enrollment in a related certificate or degree program, a student will receive academic credit that an institution will accept toward that certificate or degree and the academic credit will be accepted toward meeting the certificate or degree program requirements.

(2) The office of the Chancellor of the California State University and the office of the Chancellor of the California Community Colleges shall, and the office of the President of the University of California is requested to, coordinate the submission of applications seeking Workforce Pell Grant program eligibility for the institutions under their authority rather than the institutions separately submitting applications directly to the commission. This coordination is intended to improve efficiency in the submission and processing of applications and to eliminate duplicative submissions. All other submissions shall be made directly to the commission.

(d) (1) A participating institution seeking a determination that one or more of its short-term programs meets the requirements of the Workforce Pell Grant program shall collect all of the following data:

(A) Program-level data, including all of the following:

(i) The name of the short-term program.

(ii) The Classification of Instructional Programs code and title.

(iii) The total number of students that enrolled in the short-term program during the previously completed federal financial aid award year, the students’ state of residence for financial aid purposes, and the number of those students that completed the short-term program.

(iv) The total cost of attendance, including tuition and fees, and the average cost of the short-term program.

(v) The median earnings and percentage of graduates who are employed.

(vi) The number of students who completed the short-term program that are employed in a position related to the short-term program and a list of the positions and employers that are considered to be in the program’s field of study, if available. To the extent that the list would result in individual students becoming readily identifiable, that information shall be treated similarly to student-level data and confidential data pursuant to subparagraph (C).

(B) Student-level data necessary for participating institutions to perform calculations demonstrating a program meets federal and state Workforce Pell Grant program requirements, including, but not limited to, both of the following:

(i) Demographic information, including, but not limited to, student identifiers, names, and dates of birth.

(ii) Financial aid information, including, but not limited to, aid amounts, including federal, state, and institutional aid, Pell Grant recipient status, net cost, tuition, and fees.

(C) Program-level and student-level data shall be used by participating institutions seeking Workforce Pell Grant program eligibility to demonstrate that they meet all state and federal requirements. To protect student privacy, participating institutions seeking eligibility shall provide to the commission only program-level data and calculations performed using student-level data. Individual student-level data and any confidential data may only be shared with the commission if it is deidentified by the participating institution and critical to demonstrating Workforce Pell Grant program initial or continued eligibility.

(D) Participating institutions shall continue to collect program-level and student-level data necessary to demonstrate initial and continued eligibility to ensure the institutions are able to provide sufficient evidence, upon request of the federal government, that they meet federal program performance, outcome, and other requirements. To the extent that such data is needed by the commission to verify continued Workforce Pell Grant program eligibility, the data-sharing limitations described subparagraph (C) shall apply.

(2) (A) (i) Participating institutions shall use data available under the authority provided in Section 1095 of the Unemployment Insurance Code to demonstrate compliance with federal and state Workforce Pell Grant program requirements. To the extent necessary to carry out the activities described in this section, data agreements executed under the authority provided in Section 1095 of the Unemployment Insurance Code may be modified to include data necessary to determine Workforce Pell Grant program eligibility.

(ii) The office of the Chancellor of the California State University and the office of the Chancellor of the California Community Colleges shall, and the office of the President of the University of California is requested to, coordinate data sharing with the Employment Development Department on behalf of the participating institutions under their authority using data available pursuant to Section 1095 of the Unemployment Insurance Code.

(iii) The entities in clause (ii) may amend data-sharing agreements executed under the authority provided in Section 1095 of the Unemployment Insurance Code with the Employment Development Department to allow for the redisclosure of data to the participating institutions under their authority to enable them to demonstrate initial or continued eligibility by meeting all federal and state requirements.

(B) (i) Participating institutions interested in seeking Workforce Pell Grant program eligibility without existing data-sharing agreements with the Employment Development Department pursuant to Section 1095 of the Unemployment Insurance Code to demonstrate compliance with federal and state Workforce Pell Grant program requirements shall submit a letter of interest to the commission and the Office of Cradle-to-Career Data on or before December 15, 2026, and on or before December 15 of each year thereafter, to the extent that legislation described in clause (iii) has not yet been enacted, expressing their interest in seeking Workforce Pell Grant program eligibility. The letter of intent shall indicate the number and name of the programs seeking eligibility, the specific sector or occupation on the list prepared pursuant to Section 69871 each program aligns with, and the average class size for each program.

(ii) To the extent letters of interest are submitted, the commission and the Office of Cradle-to-Career Data shall jointly submit a report to the Department of Finance and the Legislature summarizing those letters. The report may also include a recommended plan for how data equivalent to the data described under Section 1095 of the Unemployment Insurance Code may be provided to participating institutions seeking data to demonstrate initial or continued Workforce Pell Grant program eligibility by meeting all federal and state requirements. The commission and the Office of Cradle-to-Career Data may consult with the Employment Development Department if a recommended plan is developed. This report shall be submitted to the Department of Finance and the Legislature pursuant to Government Code Section 9795.

(iii) Applications seeking Workforce Pell Grant program eligibility from participating institutions without existing data-sharing agreements with the Employment Development Department pursuant to Section 1095 of the Unemployment Insurance Code may not be accepted before the adoption of legislation specifying the process by which data equivalent to the data described under Section 1095 of the Unemployment Insurance Code shall be provided to participating institutions seeking Workforce Pell Grant program eligibility.

(e) The commission shall not authorize a participating institution to receive Workforce Pell Grant program funds for a short-term program unless all of the following conditions have been met:

(1) The commission determines that the short-term program meets the requirements set forth in Section 83002(b) of Public Law 119-21, and as implemented through any applicable federal or state law or regulation.

(2) The participating institution has met the requirements of subdivisions (c) and (d).

(3) The participating institution is accredited by an agency that is recognized and approved by the United States Department of Education and that reviews and provides accreditation for short-term programs.

(4) The short-term program has been offered by the participating institution for at least one year before the date that the participating institution submitted its request for an eligibility determination pursuant to this article.

(f) (1) The commission shall make a determination on the approval of a participating institution’s eligibility for the Workforce Pell Grant program and provide written notice of its decision, including any reasons for disapproval, within 90 days of receiving the participating institution’s application for an eligibility determination and completed participation agreement.

(2) (A) (i) The commission shall establish an appeal process for an otherwise qualifying institution that fails to satisfy the requirements of subdivision (c) or (d), or both, for participation in the Workforce Pell Grant program.

(ii) The commission shall only consider an appeal on the basis of a technical error in the reporting of data required for an eligibility determination for participation in the Workforce Pell Grant program pursuant to subdivision (c).

(B) The commission shall respond to an appellant within 60 days of receiving the appeal and all associated documentation, including any updated data, that is relevant to the appeal. The commission may request additional information from the institution as necessary to complete its review of the appeal. The 60-day deadline may be extended upon agreement of the commission and the appellant, or upon a demonstration of good cause by the commission.

(g) The commission shall revoke the approval of a short-term program related to the Workforce Pell Grant program if any of the following occurs:

(1) The participating institution fails to meet the requirements of subdivision (c) or (d) in any award year.

(2) The participating institution is determined by a court or the California State Auditor to have engaged in unlawful, unfair, or fraudulent business acts or practices, including unfair, deceptive, untrue, or misleading statements related to the short-term program.

(3) The participating institution fails to provide data to the Office of Cradle-to-Career data pursuant to Section 69875.

(h) The commission shall publicly notify students enrolled in qualifying short-term programs of their rights as recipients of a Workforce Pell Grant.

title: 3. POSTSECONDARY EDUCATION


text:
(a) The commission shall adopt regulations, including any amendments to regulations, necessary to implement the Workforce Pell Grant program.

(b) The commission may adopt emergency regulations it deems necessary to implement the Workforce Pell Grant program, in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). For purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of those regulations or amendments to those regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code.

(c) Notwithstanding any other law and without further compliance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), any emergency regulations and amendments to the emergency regulations adopted pursuant to subdivision (b) shall remain in force and effect until December 1, 2027, or until the commission adopts permanent regulations pursuant to subdivision (a).

title: 3. POSTSECONDARY EDUCATION


text:
(a) (1) The commission shall submit a report to the Department of Finance, the Assembly Committee on Budget, and the Senate Committee on Budget and Fiscal Review on or before October 1, 2027, and on or before October 1 of each year thereafter, that lists all institutions seeking an eligibility determination pursuant to this article, the specific short-term programs assessed for eligibility, and the final eligibility determination for each program assessed.

(2) The commission shall distinguish between short-term programs that have received commission approval before review by the United States Department of Education and short-term programs that have received final eligibility decisions from the United States Department of Education in the reports submitted pursuant to paragraph (1).

(b) (1) The commission shall present an interim report on or before August 30, 2028, and a final report on or before August 30, 2030, at a meeting of the commission that evaluates the Workforce Pell Grant program and includes the following information:

(A) A list of institutions and programs that the commission has determined as meeting federal and state eligibility requirements for participation in the Workforce Pell Grant program.

(B) An assessment of the amount of Workforce Pell Grant program moneys benefitting California, program completion rates, and job placement rates reported by institution, program type, and year.

(2) The commission shall submit the reports described in paragraph (1) to the Department of Finance, the Assembly Committee on Budget, and the Senate Committee on Budget and Fiscal Review no later than one week after each report is presented at a meeting of the commission.

(3) The commission may enter into an agreement with the Office of the Cradle-to-Career Data to assist with the preparation of the interim and final reports described in paragraph (1). The Office of Cradle-to-Career shall not provide individual student-level data or confidential data to the commission for the completion of these reports. Any other data shared shall be consistent with applicable federal and state laws regarding access to and confidentiality of student record information, including, but not limited to, the federal Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g) and 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).

title: 3. POSTSECONDARY EDUCATION


text:
(a) (1) A participating institution seeking or obtaining Workforce Pell Grant program eligibility shall provide program-level and student-level data required pursuant to Section 69872, and any data or outcome metrics used to justify initial or continued eligibility, to the Office of the Cradle-to-Career Data.

(2) The office of the Chancellor of the California State University and the office of the Chancellor of the California Community Colleges shall, and the office of the President of the University of California is requested to, coordinate with the Office of Cradle-to-Career Data on behalf of their respective participating institutions to submit the required data to the California Cradle-to-Career Data System using existing legal and data-sharing agreements.

(3) A participating institution, excluding an institution covered under paragraph (2), shall provide data in a manner and procedure established by the Office of Cradle-to-Career Data. The manner and procedure, and any related guidance or manuals, outlined by the Office of Cradle-to-Career Data to implement this section shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

(b) (1) A participating institution shall ensure that any confidential student information or student-level data collected for purposes of this article is disclosed to the Office of Cradle-to-Career Data, consistent with applicable federal and state laws regarding access to, and confidentiality of, student record information, including, but not limited to, the federal Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g) and 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).

(2) Pursuant to Section 10872, information disclosed to the Office of Cradle-to-Career Data is not subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(c) The Office of Cradle-to-Career Data may publicly disclose any information submitted by a participating institution subject to, and in compliance with, all applicable state and federal privacy law.

title: 3. POSTSECONDARY EDUCATION


text:
(a) In addition to its authority under existing state law, the Office of Cradle-to-Career Data may carry out its duties under the Workforce Pell Grant program.

(b) The Office of Cradle-to-Career Data shall provide the data necessary to carry out its duties under this article to either the participating institutions or the commission, consistent with applicable federal and state laws concerning access to and confidentiality of student record information, to implement the Workforce Pell Grant program. Student level data shall be deidentified to protect student privacy.

title: 3. POSTSECONDARY EDUCATION


text:
(a) As used in this article, unless the context requires otherwise, the following definitions apply:

(b) “Program” means the Learning-Aligned Employment Program created pursuant to this article.

(c) “Public postsecondary educational institution” or “institution” means a campus of the University of California, the California State University, or the California Community Colleges.

history: (History: Repealed and added by Stats. 2021, Ch. 144, Sec. 33. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 18. Learning-Aligned Employment Program


text: The Leaning-Aligned Employment Program is hereby created to provide eligible college and university students with the opportunity to earn money to help defray their educational costs, while gaining education-aligned, career-related experience. The program shall be administered by the commission, in consultation with the office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges. The Legislature finds that the program furthers the interests of the state, and specifically lessens the burdens of government by ensuring eligible college and university students can pursue higher education in the state.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 34. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
(a) A postsecondary educational institution currently eligible to participate in state-funded student financial aid programs pursuant to this chapter or in federal financial aid programs is eligible and strongly encouraged to participate in the program.

(b) Before participating in the program, each institution shall sign an institutional agreement with commission acknowledging its willingness to administer the program pursuant to this article and guidance developed by the commission, in consultation with the office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges. The agreement shall include the procedures that the institution shall use to ensure that each learning-aligned employment position is related to the student’s area of study or career interests.

(c) Each participating public postsecondary educational institution shall be required, as a condition of participation in the program, to comply with such auditing or other fiscal reporting requirements as the commission, in consultation with the office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges, may establish. These requirements shall be applied by the commission, in consultation with the office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges, so as to ensure that no payments received pursuant to this article are applied to the general aid or support of the institution.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 35. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
All of the following entities shall be eligible to employ students participating in the program:

(a) Research centers and institutions operated by public postsecondary educational institutions, if their learning-aligned employment opportunities provide participating students with direct opportunities to participate in the research that is undertaken by the respective research centers and institutions.

(b) Public schools operated by school districts, county superintendents of schools, the Department of the Youth Authority, or the department.

(c) Nonsectarian, nonpolitical organizations or corporations, whether nonprofit or for-profit enterprises licensed to conduct business in the state, if they are capable of providing participating students with full-time employment opportunities, or opportunities to connect with other employers capable of providing participating students with full-time employment opportunities, within their areas of study after graduation.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 36. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
(a) A student from an underrepresented background satisfying all of the following criteria shall be eligible to participate in the program:

(1) Enrollment on at least a half-time basis at a participating public postsecondary educational institution.

(2) Resident classification pursuant to Part 41 (commencing with Section 68000).

(3) Demonstrated maintenance of satisfactory academic progress in a program leading to a degree or a certificate, as determined by the public postsecondary educational institution in which the student is enrolled, applying standards of eligibility for federal financial aid. For purposes of this determination, homelessness, as defined as a “homeless individual” within the meaning of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11302(a)), or as defined as a “homeless child or youth,” as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)), is an extenuating circumstance for students who are unable to meet the requirements deemed to constitute “satisfactory academic progress” at that institution that may be considered by the institution to alter or excuse compliance with the progress requirements.

(4) Demonstrated financial need, as determined by the financial aid office of the institution in which the student is enrolled pursuant to the methodologies approved by the United States Department of Education for use in awarding funds provided under Title IV of the federal Higher Education Act of 1965, as amended. If individual circumstances affect the ability of the student or the student’s family to contribute to the student’s total financial resources, the financial aid administrator may make reasonable individualized adjustments to the computed total applicant resources.

(b) Each participating public postsecondary educational institution shall prioritize for available learning-aligned employment opportunities under the program an eligible student who is a first generation college student, a current or former foster youth, homeless, or at risk of being homeless. Each participating institution shall further prioritize for available learning-aligned employment opportunities an eligible student meeting this priority criteria who is also majoring in a science, technology, engineering, or mathematics discipline.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 37. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
(a) Each participating public postsecondary educational institution shall collaborate with local employers to identify learning-aligned employment opportunities that are located near the institution, aligned with the areas of study offered by the institution, and aligned with an eligible student’s area of study. Each learning-aligned employment position identified by an institution shall be reviewed by the appropriate institution’s staff to determine whether it satisfies all of the conditions specified in Section 69960.

(b) Once the public postsecondary educational institution has identified a learning-aligned employment position, the employer and the institution shall execute a written agreement that confirms the employer’s eligibility to participate in the program and its willingness to comply with all program requirements, and specifies the responsibilities of each of the parties. The agreement shall be subject to annual renewal by mutual agreement of the institution and the employer.

(c) Following execution of the agreement pursuant to subdivision (b), the employer may interview prospective students. The institution shall provide the employer and each applicant for the learning-aligned employment position with adequate information to facilitate a student’s potential employment. If the priorities specified in Section 69959 have been met, the employer may indicate the employer’s hiring preferences. An employer shall not discriminate between applicants on any basis listed in subdivision (a) of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code, except as otherwise provided in Section 12940 of the Government Code, or subject any applicant to any other discriminatory practices prohibited by state or federal law.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 38. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
Both of the following priorities shall be followed at the time of job referral and placement:

(a) A student shall only be placed in an educationally beneficial position that relates to the student’s area of study, career objective, or the exploration of career objectives.

(b) The program shall include and emphasize placements for students with employers that are capable of providing them with full-time employment opportunities, or opportunities to connect with other employers that are capable of providing them with full-time employment opportunities, within their areas of study after graduation.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 39. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
The institution shall assure that each learning-aligned employment position meets all of the following conditions:

(a) The position shall be educationally beneficial or related to a particular career interest or the exploration of career options.

(b) The work performed by the student shall not be related to the activities of any sectarian organization or to any partisan or nonpartisan political activities.

(c) The employment of a learning-aligned employment student shall not displace workers currently employed by the participating employer, or impair existing contracts for services.

(d) The learning-aligned employment position shall not violate any applicable collective bargaining agreements, or fill any vacancies due to a labor dispute.

(e) The student shall be paid at a comparable rate to that paid for comparable positions within the employing organization. If the employing organization has no comparable position, the student shall be paid at a rate comparable to that paid by other organizations in the field for work involving comparable duties and responsibilities. The positions shall be compared on the basis of the nature of the work performed and the background and skills required for the position, and not upon the employee’s part-time or student status.

(f) The number of hours of learning-aligned employment the student is allowed to work shall be determined by each public postsecondary educational institution in accordance with its standards and practices, taking into consideration the extent of the student’s financial need and the potential harm of the combination of work and study hours on a student’s satisfactory academic progress. The employer shall provide the institution with an accurate accounting of hours worked and wages earned.

(g) The total compensation received by the student shall not exceed the total amount authorized by the institution.

(h) The employer shall provide the student with reasonable supervision.

(i) Funds appropriated under this article shall not supplant any state, federal, or institutional funds used to support existing paid positions for students in profit or nonprofit organizations.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 40. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
A participating institution shall do both of the following:

(a) Develop partnerships with employers willing to contribute resources toward a percentage share of student compensation to be paid by the employer and by the program, respectively.

(1) (A) For learning-aligned employment positions with public educational institutions or nonprofit corporations, the program shall provide no more than 90 percent of the student’s compensation.

(B) Notwithstanding subparagraph (A), if the direct employer is the University of California, the California State University, the California Community Colleges, or one of its respective campuses, the program may provide 100 percent of the student’s compensation.

(2) For learning-aligned employment positions with for-profit employers, the program shall provide no more than 50 percent of the student’s compensation.

(b) For each learning-aligned employment position, maintain all necessary records, including, but not limited to, need analysis documents, employer agreements, financial aid award documents, time sheets, and records of payments provided to the student.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 41. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text: A participating public postsecondary educational institution is strongly encouraged to develop competency-based educational opportunities in order to grant academic credit for work performed in a learning-aligned employment position.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 42. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
(a) The program may include summer learning-aligned employment opportunities in order to provide learning-aligned employment positions for eligible students who may find it difficult to locate meaningful employment because of a rigorous academic program that does not allow them to work during the academic year or because they are required to participate in an intensive work experience that satisfies academic requirements.

(b) In addition to meeting the criteria specified in Section 69956, to be eligible to participate in a summer learning-aligned employment program opportunity, a student shall be enrolled at least half-time in summer courses required for completion of a degree or certificate, or accepted for enrollment on at least a half-time basis for the following normal academic term.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 43. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
(a) The commission, in consultation with the office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges, shall do all of the following:

(1) Develop and post on its internet website any necessary programmatic policies and guidelines to assist participating employers and public postsecondary educational institutions to operate the program.

(2) Develop processes to facilitate public postsecondary educational institution compliance with the priorities stated in Section 69959.

(3) Develop processes to facilitate the monitoring of institutional expenditures to ensure proper allocation and use of program funds.

(b) At the close of each fiscal year, in a manner to be determined by the commission, the office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges shall compile data regarding the population served by the program by their respective campuses during that fiscal year and provide the data to the commission.

(c) The office of the President of the University of California, the office of the Chancellor of the California State University, and the office of the Chancellor of the California Community Colleges shall review the administrative practices of each of their respective participating campuses to ensure compliance with program requirements. The office of the President of the University of California, the office of the Chancellor of the California State University, and office of the Chancellor of the California Community Colleges are encouraged to use existing institutional compliance and auditing processes to verify program compliance.

history: (History: Amended by Stats. 2021, Ch. 144, Sec. 46. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
(a) Funds appropriated in the annual Budget Act or another statute for purposes of the program shall be provided to the commission for allocation to participating public postsecondary educational institutions based on their share of students receiving a federal Pell Grant in the most recent prior fiscal year for which data is available for all program participants.

(b) A participating public postsecondary educational institution may use no more than 5 percent of the funds it receives under the program on its administrative costs of participating in the program.

(c) The commission may use up to one-half of 1 percent of the funds appropriated for purposes of this article on the costs of administering the program.

(d) (1) Funds appropriated in the annual Budget Act or another statute for purposes of the program shall be available for encumbrance and expenditure until June 30, 2031.

(2) (A) For the 2021–22 fiscal year, participating campuses of a participating public postsecondary educational institution are expected to collaborate with local employers to identify learning-aligned employment positions pursuant to section 69958.

(B) Commencing no later than the 2022–23 fiscal year, participating campuses of a participating public postsecondary educational institution are expected to enable participating eligible students to access available learning-aligned employment opportunities identified pursuant to the requirements of this article.

history: (History: Amended by Stats. 2022, Ch. 54, Sec. 19. (AB 183) Effective June 30, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 18. Learning-Aligned Employment Program


text:
As used in this article, the following terms have the following meanings, unless the context requires otherwise:

(a) “Administrative fund” means the funds used to administer this article.

(b) “Beneficiary” has the same meaning as “designated beneficiary,” as provided in paragraph (1) of subsection (e) of Section 529 of the Internal Revenue Code of 1986, as it is amended from time to time, if, as determined by the board, the amendment is consistent with the purposes of this article.

(c) “Benefits” means the payment of higher education expenses on behalf of a beneficiary by the Scholarshare trust during the beneficiary’s attendance at an institution of higher education.

(d) “Board” means the Scholarshare Investment Board established pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 69984.

(e) “Golden State Scholarshare College Savings Trust” or “Scholarshare trust” means the trust created pursuant to this article.

(f) “Executive director” means the administrator of the Scholarshare trust appointed by the board to administer and manage the Scholarshare trust.

(g) “Institution of higher education” has the same meaning as “eligible educational institution,” as provided in paragraph (5) of subsection (e) of Section 529 of the Internal Revenue Code of 1986, as it is amended from time to time, if, as determined by the board, the amendment is consistent with the purposes of this article.

(h) “Investment manager” means a manager contracted to perform functions delegated by the board. “Investment management” means the functions performed by a manager contracted to perform functions delegated by the board.

(i) “Participant” means an individual, trust, estate, partnership, association, company or corporation, a custodian under the California Uniform Transfers to Minors Act (Part 9 (commencing with Section 3900) of Division 4 of the Probate Code) or similar provisions adopted by another state, a state or local government agency, or a legal representative of a participant who has entered into a participation agreement pursuant to this article. “Participant” also means an account owner.

(j) “Participation agreement” means an agreement between a participant and the Scholarshare trust, pursuant to this article.

(k) “Program fund” means the program fund established by this article, which shall be held as a separate fund within the Scholarshare trust.

(l) “Qualified higher education expenses” means the expenses of attendance at an institution of higher education as provided in paragraph (3) of subsection (e), expenses associated with participation in a registered apprenticeship program as provided in paragraph (8) of subsection (c), and payment on the principal or interest of a qualified education loan as provided in paragraph (9) of subsection (c), of Section 529 of the Internal Revenue Code of 1986, as it is amended from time to time, if, as determined by the board, the amendment is consistent with the purposes of this article, and as determined and certified by the institution of higher education in the same manner as prescribed in Title IV of the Higher Education Act of 1965 (20 U.S.C. Sec. 1087l l, as amended).

(m) “Tuition and fees” means the quarterly or semester charges imposed to attend an institution of higher education and required as a condition of enrollment.

history: (History: Amended by Stats. 2021, Ch. 557, Sec. 1. (AB 340) Effective January 1, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 19. Golden State Scholarshare Trust Act


text:
(a) There is hereby created an instrumentality of the State of California to be known as the Golden State Scholarshare College Savings Trust.

(b) The purposes, powers, and duties of the Scholarshare trust are vested in, and shall be exercised by, the board.

(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:

(1) Sue and be sued.

(2) Make and enter into contracts necessary for the administration of the Scholarshare trust.

(3) Adopt a corporate seal and change and amend it from time to time.

(4) Cause moneys in the program fund to be held and invested and reinvested.

(5) Enter into agreements with any institution of higher education or any federal or other state agency or other entity as required for the effectuation of its rights and duties.

(6) Accept any grants, gifts, appropriation, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund. Except as otherwise provided in Section 69982, the board may not accept any contribution by any nonpublic entity, person, firm, partnership, or corporation that is not designated for a specified beneficiary, unless the contribution is deposited in the CalSAVE account pursuant to subdivision (d).

(7) Enter into participation agreements with participants, as set forth in Section 69983.

(8) Make payments to institutions of higher education or other third parties pursuant to participation agreements on behalf of beneficiaries.

(9) Make refunds to participants upon the cancellation of participation agreements pursuant to the provisions, limitations, and restrictions set forth in this article.

(10) Appoint an executive director, who shall serve at the pleasure of the board, and determine the duties of the executive director and other staff as necessary and set their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.

(11) Make provisions for the payment of costs of administration and operation of the Scholarshare trust.

(12) Carry out the duties and obligations of the Scholarshare trust pursuant to this article and have any and all other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this article.

(d) (1) There is established within the Scholarshare trust the California Scholarshare Advancement Vehicle for Education (CalSAVE) program to fund scholarships for beneficiaries to be determined by the board that may include, but are not limited to, foster youth, youth in at-promise categories, individuals with demonstrated economic need, former and active members of the California National Guard, individuals seeking undergraduate or postbaccalaureate courses in disciplines in which the state faces shortages, including nursing and teaching, and other categories to be determined by the board.

(2) The CalSAVE account is created within the program fund and is continuously appropriated, without regard to fiscal years, to the board for the purposes of the CalSAVE program. The board shall create subaccounts within the CalSAVE account for each category of beneficiary determined pursuant to paragraph (1). The CalSAVE account shall be funded by contributions from federal or local governments, or any other person, firm, partnership, or corporation, and from the administrative fund established pursuant to Section 69984. A person contributing to the CalSAVE account may designate that the person’s contribution be deposited into any subaccount within the CalSAVE account, or may contribute without any designation. The board shall apportion any undesignated funds among the subaccounts, taking into consideration factors, including, but not limited to, the number of eligible applications received seeking funding from a particular subaccount.

(e) The board shall adopt regulations as it deems necessary to implement this article consistent with the federal Internal Revenue Code and regulations issued pursuant to that code to ensure that this program meets all criteria for federal tax-deferral or tax-exempt benefits, or both.

history: (History: Amended by Stats. 2019, Ch. 800, Sec. 15. (AB 413) Effective January 1, 2020.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text:
In addition to the powers and authority granted pursuant to Section 69981, the board shall have the powers and authority to do all of the following:

(a) Carry out studies and projections in order to advise participants regarding present and estimated future higher education expenses and the levels of financial participation in the Scholarshare trust required in order to enable participants to achieve their education funding objectives.

(b) Contract for goods and services and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.

(c) Participate in any other way in any federal, state, or local governmental program for the benefit of the Scholarshare trust.

(d) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the Scholarshare trust, and provide for reasonable service charges, including penalties for cancellations.

(e) Procure insurance against any loss in connection with the property, assets, or activities of the Scholarshare trust.

(f) Administer the funds of the Scholarshare trust.

(g) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a member’s action or inaction as a member of the board.

(h) Adopt reasonable regulations for the administration of the Scholarshare trust.

(i) Set minimum and maximum investment levels.

(j) (1) Except as otherwise provided in this section, the overall maximum investment level for a designated beneficiary shall not exceed the amount equivalent to the maximum estimated qualified higher education expenses, as defined by subdivision (l) of Section 69980 and established by the board, that can be incurred by a beneficiary. The maximum investment level shall be published by the board as a monetary amount, in order to state contribution limits clearly and to encourage participation on behalf of beneficiaries who will attend all types of higher education institutions, both public and independent.

(2) Contributions by entities exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code and state and local government agencies operating bona fide scholarship programs for the benefit of beneficiaries to be named when the scholarships are awarded are not subject to maximum contribution limits.

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 3. Effective January 1, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text:
The Scholarshare trust may enter into participation agreements with participants on behalf of beneficiaries pursuant to the following terms and agreements:

(a) The board may specify a required minimum length of time before distributions for higher education expenses may be made, and may impose a penalty on the early distribution of funds if deemed by the board to be necessary.

(b) Beneficiaries designated in participation agreements may be designated from date of birth.

(c) Participants shall be informed that the execution of a participation agreement by the Scholarshare trust shall not guarantee in any way that higher education expenses will be equal to projections and estimates provided by the Scholarshare trust or that the beneficiary named in any participation agreement will do any of the following:

(1) Be admitted to an institution of higher education.

(2) If admitted, be determined a resident for tuition purposes by the institution of higher education.

(3) Be allowed to continue attendance at the institution of higher education following admission.

(4) Graduate from the institution of higher education.

(5) Have sufficient savings to cover fully all qualified education expenses of attending an institution of higher education.

(d) Beneficiaries may be changed as permitted by the regulations of the board upon request of the participant, provided that the substitute beneficiary is eligible.

(e) Participation agreements shall be freely amended throughout their terms in order to enable participants to change the designation of beneficiaries and carry out similar matters.

(f) Each participation agreement shall provide that the participation agreement may be canceled upon the terms and conditions set forth and contained in the regulations adopted by the board.

(g) All contributions to Scholarshare accounts shall be in cash.

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 4. Effective January 1, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text:
(a) (1) The board shall segregate moneys received by the Scholarshare trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340 of the Government Code, the program fund is hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this article. Funds in the administrative fund shall be available for expenditure, upon appropriation, for the purposes specified in this article.

(2) (A) The board shall separately account for any moneys received by an entity exempt from taxation under Section 501(c)(3) of the Internal Revenue Code or a state or local government agency, depositing the money for the benefit of a beneficiary to be named later pursuant to the operation of a bona fide scholarship program.

(B) There is hereby created the Scholarshare Investment Board, that consists of the Treasurer, the Director of Finance, the executive director of the State Board of Education, a member of the Student Aid Commission appointed by the Governor, a member of the public appointed by the Governor, a representative from a California public institution of higher education appointed by the Senate Committee on Rules, and a representative from a California independent college or university or a state-approved college, university, or vocational/technical school appointed by the Speaker of the Assembly. The Treasurer shall serve as chair of the board. The board shall annually prepare and adopt a written statement of investment policy. The board shall consider the statement of investment policy and any changes in the investment policy at a public hearing. The board shall approve the investment management entity or entities consistent with subparagraph (D).

(C) Not later than 30 days after the close of each month, the investment manager shall place on file for public inspection during business hours a report with respect to investment performance. The investment manager shall report the following information, to the extent applicable, to the board within 30 days following the end of each month:

(i) The type of investment, name of the issuer, date of maturity, par and dollar amount invested in each security, investment, and money within the program fund.

(ii) The weighted average maturity of the investments within the program fund.

(iii) Any amounts in the program fund that are under the management of an investment manager.

(iv) The market value as of the date of the report and the source of this valuation for any security within the program fund.

(v) A description of the compliance with the statement of investment policy.

(D) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with an investment manager, as determined by the board.

(b) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the Scholarshare trust and as required by this article. On an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the Scholarshare trust shall be paid out of the administrative fund.

(c) All moneys paid by participants in connection with participation agreements shall be deposited as received into the program fund, and shall be promptly invested and accounted for separately. Deposits and interest thereon accumulated on behalf of participants in the program fund of the Scholarshare trust may be used for payments to any institution of higher education.

history: (History: Amended by Stats. 2011, Ch. 349, Sec. 8. (SB 940) Effective January 1, 2012.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text:
(a) Any participant may cancel a participation agreement at will. A participant shall be entitled to a refund upon cancellation thereof of an amount equal to the then current market value of the amount of all contributions made to his or her account.

(b) Upon the occurrence of any of the following circumstances, no penalty shall be levied by the Scholarshare trust in the event of cancellation of a participation agreement:

(1) Death or disability of the beneficiary.

(2) The beneficiary’s receipt of a scholarship or allowance or payment described in Section 25A(g)(2) of the Internal Revenue Code received by the designated beneficiary, to the extent that the amount refunded does not exceed the amount of the scholarship, allowance, or payment.

(c) In the event of cancellation of a participation agreement for any of the causes listed in subdivision (b), the participant shall be entitled to a refund equal to the then current market value of the amount of all contributions made by the participant under the participation agreement.

(d) Any cancellation of a participation agreement shall be deemed to be made as of the close of business for the calendar month during which notice of the cancellation is received by the board, and the current market value of contributions as of that date shall be determined by utilizing the monthly report for that month pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 69984.

history: (History: Amended by Stats. 2002, Ch. 406, Sec. 4. Effective September 9, 2002.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text:
For all purposes of California law, all of the following apply:

(a) The participant shall retain ownership of all contributions made under any participation agreement up to the date of utilization for payment of higher education costs for the beneficiary, and all interest derived from the investment of the payments made by the participant shall be deemed to be held in Scholarshare trust for the benefit of the beneficiary. Neither the contributions, nor any interest derived therefrom, may be pledged as collateral for any loan.

(b) If the participation agreement is canceled prior to payment of higher education expenses for the beneficiary, the participant shall retain ownership of all contributions made under the participation agreement and reversionary right to receive interest on all the contributions at the rate of interest at which the contributions were invested.

(c) Notwithstanding subdivision (b), if there has been a decrease in the value of the funds in a participant’s account at the time of cancellation of the participation agreement, the participant shall not have ownership rights to any amount above the market value of the funds in the account at the time of cancellation.

(d) The board shall develop adequate measures to prevent contributions on behalf of a designated beneficiary in excess of the maximum contribution limits provided for in this article.

(e) If the beneficiary graduates from an institution of higher education and has no intention of further attendance at an institution of higher education, and a balance remains in the participant’s account, then the Scholarshare trust shall pay the balance to the participant.

(f) The board shall develop a method to make payment of qualified higher education expenses directly to higher education institutions or to other third parties for the benefit of designated beneficiaries and to control for fraud under any direct reimbursement method of payment that it may adopt. The institution of higher education or another third party shall obtain ownership of the payments made for the higher education expenses paid to the institution or to that third party at the time each payment is made to the institution or to that third party.

(g) The board may also develop a method to make payment of qualified higher education expenses directly to beneficiaries in a manner that is consistent with applicable federal requirements and restrictions.

(h) Any amounts paid pursuant to the Scholarshare trust that are not listed in this section shall be owned by the Scholarshare trust.

(i) A participant may transfer ownership rights to another eligible participant, including, but not necessarily limited to, a gift of the ownership rights to an eligible minor beneficiary pursuant to this article. The transfer shall be effected and the property distributed in accordance with administrative regulations adopted by the board or the terms of the participation agreement.

(j) Custodians for a minor under the California Uniform Transfers to Minors Act (Part 9 (commencing with Section 3900) of Division 4 of the Probate Code) or similar provisions adopted by another state may enter into participation agreements in accordance with regulations adopted by the board.

history: (History: Amended by Stats. 2019, Ch. 17, Sec. 2. (AB 853) Effective January 1, 2020.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act